TIDMBEM
RNS Number : 2380V
Beowulf Mining PLC
02 December 2019
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
2 December 2019
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Interim Financial Results and Management Update for
the Period Ended 30 September 2019
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for
the nine months ended 30 September 2019 and provides a quarterly
management update.
Overview of Activities in the Quarter
-- On 8 July 2019 and further to the CEO's attendance at the
Almedalen Political Week ("Almedalen") in Sweden, the Company
outlined its immediate plans for Kallak in the event that the
Swedish Government awards the Exploitation Concession
("Concession").
-- On 19 September 2019, the Company provided an update on the
CEO's visit to Stockholm and a letter sent to Minister Baylan, the
Minister of Enterprise and Innovation of the Government of Sweden
(the "Government").
-- The Company announced, on the 24 September 2019, exploration
results for Vardar Minerals Limited's ("Vardar") Wolf Mountain
lead-zinc-silver target ("WM"), part of the Mitrovica Project
situated in northern Kosovo. Results demonstrated that Wolf
Mountain has potential for economic mineralisation and confirmed
extensive lead-zinc mineralisation over an area of 800 metres ("m")
in length and 400m in width in its northern part, with significant
potential for high-grade feeder structures.
-- On 30 September 2019, the Company announced soil sampling
results for the prospective southern half of Mitrovica and the
definition of three exploration targets: base, including copper,
and precious metals across Mitrovica South; gold at Madjan Peak;
and copper-zinc-gold on the lower slopes on Madjan Peak.
Post Period
-- On 8 October 2019, the Company announced exploration results
for Vardar's prospective Viti license in south eastern Kosovo,
following the completion of an orientation drill programme over a
target prospective for porphyry related mineralisation.
-- On 14 October, Beowulf exercised its option in Vardar,
investing a further GBP115,000 and taking the Company's ownership
of Vardar from 37.6 per cent. to 40.1 per cent.
-- On 24 October, the Company was awarded an Exploration Licence
for Parkijaure nr 6, covering almost 1,000 hectares immediately to
the south of the Kallak deposits, and similarly prospective for
magnetite iron ore.
-- The Company announced, on 24 October 2019, a subscription for
9,090,909 new ordinary shares of GBP0.01 each to raise
GBP500,000.
-- On 30 October 2019, the Company announced an upgraded Mineral
Resource Estimate ("MRE") for its Aitolampi graphite project in
Finland, which included an 81 per cent increase in contained
graphite (compared to the 2018 MRE) for the higher-grade western
zone with an Indicated and Inferred Mineral Resource of 17.2
million tonnes ("Mt") at 5.2 per cent Total Graphitic Carbon
("TGC") containing 887,000 tonnes ("t") of contained graphite.
-- On 6 November 2019, the Company announced that it invested a
further GBP100,000 in Vardar, increasing the Company's ownership of
Vardar from 40.1 per cent to 41.5 per cent.
-- The Company announced, on 8 November 2019, a subscription for
4,347,826 new ordinary shares of GBP0.01 each to raise
GBP250,000.
-- On 11 November 2019, the Company announced it had submitted a
concluding statement ("Statement") for Kallak to the Government,
prepared by law firms Mannheimer Swartling and Fröberg &
Lundholm. The Statement summarised the circumstances relevant to a
judicial review of whether the Company should be awarded the
Concession for Kallak.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"Since the end of the summer, Beowulf has made good progress
across its different business areas. While shareholder focus
remains on a Government decision on Kallak, we have upgraded the
Mineral Resource Estimate for the Aitolampi graphite project in
Finland, published several updates on Vardar's significant
exploration achievements in Kosovo and increased our ownership in
Vardar to 41.5 per cent.
"With Kallak, we complemented our legal team, engaging
Mannheimer Swartling to work with Fröberg & Lundholm on the
Statement sent to the Government on 8 November 2019. The
Statement's conclusion, that sufficient facts have been submitted
for awarding Beowulf the Concession, speaks for itself. As
demonstrated by the Mining Inspectorate's recent award of the
Parkijaure nr 6 Exploration Licence, immediately to the south of
Kallak, clearly, we are not in an exclusion zone for
exploration.
"It seems evident that the coalition Government in Sweden has
been struggling to reach consensus on Kallak and that politics is
standing in the way of a decision being taken. We have heard
before, from the Government, that Swedish law is sufficient for
assessing the Kallak application, and, that any assessment of
Kallak should be 'by the book'. We have now heard, in recent weeks,
from the Green Party that the Company's application should be
tested in accordance with the law.
"Whatever the politics, the facts speak for themselves. The
original Kallak exploration licence was granted in 2006, thirteen
years ago, and there were seven years' work before the application
for an Exploitation Concession was submitted in April 2013. The
Company addressed the County Administrative Board for the County of
Norrbotten's ("CAB") questions, undertaking further reindeer
husbandry analysis, which included providing revised and
supplementary information based on comments and information
received from local Sami villages, and using Luleå University of
Technology for socio-economic analysis. When, in October 2014, the
CAB expressed concern regarding transport routes under
consideration, the Company stated that it would not use routes
passing in a north/north-easterly direction through the
Jelka-Rimakåbbå Natura 2000 area, ensuring that future transport
routes would not lead to a significant impact on reindeer
husbandry.
"In July 2015, the CAB stated that mining is economically
relevant, and that the Kallak North project generates economic
benefits at local, regional and national levels, including direct
and indirect jobs, tax revenues, and more broadly across mining
equipment and services sectors in Sweden. At the time, the CAB
stated that there are no conflicts within the Concession area where
national interests are considered, as the Concession area is
designated as an Area of National Interest for minerals. No other
national interests were identified.
"When considering environmental matters, on 1 October 2014, the
CAB confirmed that the Company's Environmental Impact Assessment
was sufficient with respect to Chapters 3, 4 and 6 of the
Environmental Code and, on 7 July 2015, the CAB wrote to the
Government indicating that the Company's application could be
permissible with respect to Chapters 3 and 4 of the Environmental
Code. In October 2015, the Mining Inspectorate recommended to the
Government the Concession be awarded.
"The Company has invested over SEK 80 million in the Kallak
project, defined a potential 250 million tonne iron ore resource,
submitted a comprehensive application for an Exploitation
Concession, addressing all issues raised, voluntarily completed a
Heritage Impact Assessment, even though the Swedish National
Heritage Board (Riksantikvarieämbetet, "RAÄ") and the Swedish
Environmental Protection Agency (Naturvårdsverket, "NV") had
previously provided comments to the Mining Inspectorate
acknowledging that Kallak does not directly affect Laponia, and
most recently submitted the Statement prepared by Mannheimer
Swartling and Fröberg & Lundholm which demonstrates that a
judicial review would find legal tests have been met for an
Exploitation Concession to be granted.
"Last week I was in Sweden, attending SveMin's Höstmöte in
Stockholm and participated in a panel discussion on permitting
problems.
"Minister Baylan spoke in the morning about initiatives to
review mining legislation and the role of the CAB's. These
initiatives should be for improving the permitting system and not
further delaying current application decisions. Beowulf was one of
four companies on stage talking about permitting problems. The key
message was there is no transparency of process and timeline for
decisions, and no predictability of outcomes. This a significant
and real deterrent to any company considering exploring in
Sweden.
"After Stockholm, I travelled to Jokkmokk to meet with an OECD
delegation undertaking a study tour of Norrbotten, speaking to
interested parties in the mining sector, companies, regulators,
municipalities and the Sami, to understand how the benefits of
mining to cities and regions can be maximised through best practice
policies and procedures. I also met with Robert Bernhardsson the
Mayor of Jokkmokk, who, in common with Beowulf shareholders, is
anxiously waiting for a decision on Kallak. He is fighting for
Jokkmokk's future and looking to Kallak to provide the investment,
enterprise and jobs to help him win that fight.
"At the beginning of October, Mr Baylan wrote to me of a
'forthcoming Government decision' in our case. The Company has made
its case and now it is time for the Government to decide.
"I look forward to keeping shareholders updated with
developments on Kallak, Fennoscandian and Vardar."
Financials
-- As of 1 April 2019, following an increase in Investment from
14.1% to 31.3% the Company has met the definition of control as
outlined in the provisions of IFRS 10. The consolidated Vardar
Group has been consolidated into the Company effective of this date
with the resulting fair value gain of GBP51,682.
-- The consolidated loss fell in the year to date from
GBP849,525 to GBP765,810. The variance is attributable to the
impairment loss (GBP150,421) relating to the relinquishing of the
Viistola and a higher share-based payment charge (GBP153,540)
relating to employees and Directors options.
-- The administration expenses increased in the year to date
from GBP590,056 to GBP730,054. Vardar's administration expenses
from 1 April to 30 September of GBP170,000 are included.
-- Basic/diluted loss per share for the 9 months ended 30
September 2019 was 0.11 pence (2018: loss of 0.10 pence).
-- GBP907,527 in cash held at the period end (2018: GBP2,071,748).
-- The translation reserve losses attributable to the owners of
the parent increased from GBP520,257 at 31 December 2018 to
GBP1,028,270 at 30 September 2019. Much of the Company's
exploration costs are in Swedish Krona which has weakened further
against the pound since 31 December 2018.
-- As at 30 September 2019, there were 375,325,504 Swedish
Depository Receipts representing 63.76 per cent of the issued share
capital of the Company. The remaining issued share capital of the
Company is held in the UK.
Operational
Sweden
-- On 8 July 2019, the Company provided an update on the CEO's
attendance at Almedalen which takes place every year in Visby,
Sweden. Almedalen provides a unique arena for Swedish
decision-makers in politics, government agencies, business, and
NGOs to meet, build relationships, discuss, and debate.
During Almedalen the CEO discussed Jokkmokk's economic
situation, the SEK 28 million cuts announced by Jokkmokks Kommun to
balance its budget and the local and regional support for Kallak
from Jokkmokks Kommun, Jokkmokks Allmänning, local entrepreneurs,
the Mayor of Luleå and leaders in Region Norrbotten. The CEO
therefore explained the role that Kallak would play in transforming
Jokkmokk's economic future, to one that is 'thriving, diversified
and sustainable' and lives beyond mining.
-- Additionally, the CEO received several questions regarding
what Beowulf's plans would be should the Company be awarded a
Concession for Kallak. In response to these queries the CEO shared
the Company's immediate plans for Kallak, should the Concession be
awarded, and described the Company's ambition to build a modern,
sustainable and innovative mining operation.
The Company has an immediate three-step plan for advancing the
Kallak project, in the event the Swedish Government awards the
Concession:
1. Scoping Study ("Study") - completion within 12 months of the
Concession being awarded - and in parallel develop a roadmap for
environmental permitting.
2. Formation of a 'Development Taskforce' with Jokkmokks Kommun
and other key partners, intended to coordinate the activities of
interested parties in Kallak, such that project development of
Kallak and the development of Jokkmokk can be fully
coordinated.
3. To advance discussions with the Sami reindeer herding
communities, to listen to their concerns, find solutions together
to problems that might exist, working towards reaching mutually
beneficial agreements that ensure Sami reindeer herding,
livelihoods and culture are protected, and that the Sami community
benefits from the development of a mine at Kallak.
-- On 19 September 2019, Beowulf informed the market that the
Company's CEO, Kurt Budge, had written to Minister Baylan following
meetings with advisors, including legal advisors, and the new CEO
at SveMin (SveMin is the industry association of mines, mineral and
metal producers in Sweden and has circa 40 members. It covers
issues across key focus areas for the industry, including Work
Environment; Energy and Climate; Competence supply; Communication;
Exploration and ground issues; Environment; Infrastructure; and
Legal matters. It also monitors developments in the EU and how they
affect the industry in Sweden). In the letter, the CEO asked for
clarity on the process and timeline to a decision on the Concession
and reiterated the economic case for Kallak.
-- In September, the Company engaged Mannheimer Swartling to
work with Fröberg & Lundholm to review its Kallak application.
Specifically, to review statements by the CAB, including the CAB's
statement made in November 2017, and the Company's comments to the
Government criticising that statement. The findings of the legal
analysis were unequivocal, that the Company has robustly argued its
case for a Concession to be awarded.
-- On 24 October, the Company was awarded an Exploration Licence
for Parkijaure nr 6, covering almost 1,000 hectares immediately to
the south of the Kallak deposits, and similarly prospective for
magnetite iron ore.
The magnetic signature of mineralisation at Kallak extends
southwards from Kallak North to Kallak South and then beyond to
Parkijaure. The Company plans to investigate the potential for iron
ore mineralisation, which could add to the Kallak North and Kallak
South resource.
-- The Company is a consortium partner in the PACIFIC Project,
which aims to develop a new, low-cost and environmentally friendly
tool for exploring for sub-surface mineral deposits. The project
was launched in June 2018 and has received EUR3.2 million from the
EU's Horizon 2020 research and innovation programme. The PACIFIC
consortium is conducting fundamental and applied research to
develop two radically new and complementary mineral exploration
techniques, both based on passive seismic imagery.
Kallak, including Kallak North, Kallak South and the Parkijaure
licence, has been chosen as one of two PACIFIC test sites.
Phase one work was conducted in September 2019, testing of the
multi-array method, using an array of receivers at surface, which
was conducted at Kallak South. In early 2020, a similar survey will
be conducted at Kallak North, followed by interpretation of the
data and correlation with the existing geological model for Kallak
North and Kallak South.
Phase two work will consist of testing the multi-array method in
parallel with drilling which is planned for Autumn 2020. In
anticipation of the Concession being awarded for Kallak North, the
Company would then consider a follow-up programme of drilling at
Kallak South and Parkijaure.
-- On 11 November 2019, the Company submitted a concluding
statement for Kallak, prepared by law firms Mannheimer Swartling
and Fröberg & Lundholm, to the Government. The Statement
stressed that, as has previously been demonstrated by the Company,
and acknowledged by the CAB, the establishment of a mine at Kallak
would have significant positive effects on the local economy:
creating jobs, generating tax revenues for Jokkmokk municipality,
and stimulating and diversifying the business sector in Jokkmokk.
In so doing, Kallak would help solve the problems Jokkmokk is
facing, a lack of investment in new enterprise and job creation,
and a declining and ageing population, which is putting a burden on
Jokkmokks Kommun it cannot afford.
The Statement notes that neither the Reindeer Herding Impact
Assessment, nor the Environmental Impact Assessment have concluded
that mining operations at Kallak would threaten the existence and
livelihoods of local Sami reindeer herding communities.
Furthermore, the Statement highlights the similarities between
Kallak and available case law, which support the approval of the
Concession.
Finland
-- On 30 October 2019, the Company announced an upgraded MRE for
its Aitolampi graphite project in Finland.
o An 81 per cent increase in contained graphite (compared to the
2018 MRE) for the higher-grade western zone with an Indicated and
Inferred Mineral Resource of 17.2 Mt at 5.2 per cent TGC containing
887,000 t of contained graphite.
o An unchanged Indicated and Inferred Mineral Resource of 9.5 Mt
at 4.1 per cent TGC for 388,000 t of contained graphite for the
eastern lens.
o Updated global Indicated and Inferred Mineral Resource of 26.7
Mt at 4.8 per cent TGC for 1,275,000 t of contained graphite. All
material is contained within two graphite mineralised zones, the
eastern and western lenses, interpreted above a nominal three per
cent TGC cut-off grade.
o An augmented global Indicated and Inferred Mineral Resource of
11.1 Mt at 5.7 per cent TGC for 630,000 t of contained graphite,
reporting above a five per cent TGC cut-off, based on the
grade-tonnage curve for the resource.
Vardar Minerals, Kosovo
-- On 24 September 2019, Beowulf announced exploration results
for Vardar's Wolf Mountain ("WM"). Drilling and trenching results
have confirmed extensive lead-zinc-silver mineralisation over an
area of 800m in length and 400m in width in the northern part of
WM, with significant potential for high-grade feeder
structures.
-- Vardar is planning to conduct Direct Current - Induced
Polarisation ("DC-IP") surveys, the results of which, when combined
with detailed magnetic data, will be used for targeting high-grade
sulphide-dominant lead-zinc-silver mineralisation associated with
both mineralised breccia and feeder structures.
-- Trenching highlights include:
o Trench WM-T01 returned 1.43 per cent lead, 1.87 per cent zinc
and 11 grammes per tonne ("g/t") silver over 51.0m, including 2.01
per cent lead, 3.17 per cent zinc and 18 g/t silver over 12.5m;
and
o Trench WM-T02 returned 2.7 per cent lead, 0.55 per cent zinc
and 10 g/t silver over 18.0m and 3.6 per cent lead, 0.64 per cent
zinc and 14 g/t silver over 8m.
WM-T01, T02 and T03 all returned anomalously high
lead-zinc-silver concentrations for intersected zones.
-- Drilling highlights include:
o Hole WM001 returned 1.2 per cent lead, 0.36 per cent zinc and
10 g/t silver over 14.1m;
o Hole WM003 returned 1.4 per cent zinc over 4.15m;
o Hole WM004 returned 1.27 per cent lead, 0.91 per cent zinc and
8 g/t silver over 8.9m; and 1.4 per cent zinc over 20.9m;
o Hole WM006 returned 1.38 per cent zinc over 19.3m;
o Hole WM007 returned 2.69 per cent lead, 0.4 per cent zinc and
16 g/t silver, over 4.3m;
o Hole WM009 returned 1.29 per cent lead over 3.0m;
o Hole WM010 returned 2.45 per cent zinc over 2.0m; and
o Hole WM014 returned 2.14 per cent zinc over 1.0m.
-- The Company announced soil sampling results from the
perspective southern half of Mitrovica on 30 September 2019. Three
priority target areas have been identified:
o Mitrovica South exhibits potential for a large mineralised
system - soil sampling results have identified distinctive zinc,
copper, lead, silver and gold anomalies in the southern part of the
license, extending laterally from known mineralisation, suggesting
that the system may be larger than indicated by initial geological
mapping.
Mitrovica South is less than three kilometres from the Stan Terg
lead, zinc and silver mine, which dates to the 1930s and which is
estimated to have produced 34 Mt at 3.45 per cent lead, 2.3 per
cent zinc and 80 g/t silver.
o Madjan Peak Gold target - anomalous gold and silver assays
have been returned for the eastern margin of the license,
corresponding with previously mapped advanced argillic alteration,
identified historic gold workings/pits and anomalous rock chip
samples (up to 7.2 g/t gold).
o Madjan Peak Lower Slopes - displays elevated copper, zinc and
silver in soil results possibly correlating with structurally
controlled mineralisation.
o Vardar is planning to conduct DC-IP surveys, the results of
which, when combined with detailed magnetic data, will be used for
defining drill targets.
-- On 8 October 2019, Beowulf announced drilling at Viti had
intersected a copper gold porphyry system following the completion
of an orientation drill programme. Drill testing was designed to
test the extent and type of alteration associated with an extensive
three kilometre gossanous outcrop, which had previously returned
anomalous copper and gold concentrations in rock grab samples. In
addition, soil samples were collected to determine the extent of
possible anomalous metal concentrations over the target area.
Highlights include:
o Drilling has identified highly altered trachyte porphyry dykes
with associated copper and gold mineralisation.
o Soil sampling results have returned anomalous copper and gold
correlating with outcropping gossans.
o Results indicate that drilling has intersected the upper part
of a porphyry system.
Further work will focus on copper-gold target delineation using
a combination of detailed magnetic and DC-IP survey. Follow-on
drilling is planned for the next field season in 2020.
Corporate
-- On 24 October 2019 and 8 November 2019, the Company raised
GBP500,000 and GBP250,000, respectively, through subscriptions of
9,090,909 and 4,347,826 new ordinary shares of GBP0.01 each. The
funds will be used for general working capital purposes, as well as
legal advice in respect of the Kallak North application and to
support Vardar's plans for the Mitrovica and Viti Projects in
Kosovo.
-- On 14 October 2019, Beowulf exercised its option in Vardar,
investing a further GBP115,000 and taking the Company's ownership
of Vardar from 37.6 per cent. to 40.1 per cent . During the period
the Directors have reassessed the accounting judgement relating to
how Vardar is recorded within the Beowulf financial statements.
Based on the IFRS 10 criteria relating to the assessment of control
over relevant activities Vardar consolidated within the Beowulf
consolidated financial statements.
The Company informed the market, on 6 November 2019, that
following Vardar's exploration achievements at Mitrovica and Viti
and an excellent visit to Kosovo it had invested a further
GBP100,000 in Vardar, increasing Beowulf's ownership to 41.5 per
cent.
-- As at 31 October 2019, there were 383,195,504 Swedish
Depository Receipts representing 64.11 per cent of the issued share
capital of the Company. The remaining issued share capital of the
Company is held in the UK.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771
Officer 6993
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Soltan Tagiev Tel: +44 (0) 20 3470
0470
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
forecast.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS TO 30 SEPTEMBER 2019
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months Year
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2019 2018 2019 2018 2018
Notes GBP GBP GBP GBP GBP
Continuing operations
Administrative expenses (283,310) (211,029) (730,053) (560,056) (598,391)
Impairment of exploration
costs - (150,421) - (150,421) (571,456)
Share based payment
expense (26,566) (49,519) (93,154) (146,942) (196,460)
Share of loss of associates - - - - (19,880)
Gain on acquisition - - 51,682 - -
------------ ------------ ------------ ------------ --------------
Operating Loss (309,876) (410,969) (771,525) (857,419) (1,386,187)
Finance income 532 3,682 5,715 7,894 11,603
------------ ------------ ------------ ------------ --------------
Loss before and after
taxation (309,344) (407,287) (765,810) (849,525) (1,374,584)
============ ============ ============ ============ ==============
Loss attributable to:
Owners of the parent (256,163) (407,256) (658,696) (848,910) (1,373,936)
Non-controlling interests (53,181) (31) (107,114) (615) (648)
(309,344) (407,287) (765,810) (849,525) (1,374,584)
============ ============ ============ ============ ==============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.04) (0.07) (0.11) (0.15) (0.25)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS TO 30 SEPTEMBER 2019
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months Year
ended 30 ended 30 ended 30
September September September
2019 2018 2019
ended 30 ended 31
September December
2018
GBP GBP GBP 2018
GBP
GBP
Loss for the period (309,344) (407,287) (765,810) (849,525) (1,374,584)
Other comprehensive
income
Items that may be
reclassified subsequently
to profit or loss:
Exchange (losses)
arising on translation
of foreign operations (203,018) - (515,349) (458,994) (123,265)
------------ ------------ -------------- ------------ ------------
Total comprehensive
(loss) (512,362) (407,287) (1,281,159) (1,308,519) (1,497,849)
============ ============ ============== ============ ============
Total Comprehensive
(loss) attributable
to:
Owners of the parent (447,226) - (1,166,709) (900,498) (1,497,133)
Non-controlling interests (65,137) - (114,450) (734) (716)
(512,363) (407,287) (1,281,159) (901,232) (1,497,849)
============ ============ ============== ============ ============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS TO 30 SEPTEMBER 2019
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
9 months Year
ended 30
September
2018
3 months 3 months 9 months ended 31
ended 30 ended 30 ended 30 December
September September September 2018
2019 2018 2019
GBP
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (153,088) (94,478) (563,860) (408,842) (424,329)
Share based payment
expense (26,566) (49,519) (93,154) (146,942) (196,460)
Operating Loss (179,654) (143,997) (657,014) (555,784) (620,789)
Finance income 532 3,682 5,715 7,894 11,603
------------ ------------ ------------ ------------ -----------
Loss before and after
taxation and total comprehensive
loss (179,122) (140,315) (651,299) (547,890) (609,186)
============ ============ ============ ============ ===========
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.03) (0.05) (0.11) (0.10) (0.11)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2019
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 30 September 31 December
2019 2018 2018
GBP GBP GBP
ASSETS Notes
Non-current assets
Intangible assets 5 9,696,793 8,252,883 8,285,547
Property, plant and equipment 118,562 19,687 16,083
Investment in associate - - 230,120
Loans and other financial
assets 5,281 5,401 5,462
-------------- -------------- -------------
9,820,636 8,277,971 8,537,212
-------------- -------------- -------------
Current assets
Trade and other receivables 87,145 68,114 62,956
Cash and cash equivalents 907,527 2,071,748 1,533,232
-------------- -------------- -------------
994,672 2,139,862 1,596,188
-------------- -------------- -------------
TOTAL ASSETS 10,815,308 10,417,833 10,133,400
============== ============== =============
EQUITY
Shareholders' equity
Share capital 4 5,886,392 5,663,072 5,663,072
Share premium 20,230,006 19,266,271 19,266,271
Merger Reserve 137,700 137,700 137,700
Capital contribution reserve 46,451 46,451 46,451
Share option reserve 705,619 562,947 612,465
Translation reserve (1,028,270) (723,560) (520,257)
Accumulated losses (15,970,629) (14,786,759) (15,311,933)
-------------- -------------- -------------
Total Equity 10,007,269 10,166,122 9,893,769
-------------- -------------- -------------
Non-controlling interests 298,667 (160,602) (160,587)
-------------- -------------- -------------
TOTAL EQUITY 10,305,936 10,005,520 9,733,182
-------------- -------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 317,167 220,108 208,013
Grant income 192,205 192,205 192,205
-------------- -------------- -------------
TOTAL LIABILITIES 509,372 412,313 400,218
-------------- -------------- -------------
TOTAL EQUITY AND LIABILITIES 10,815,308 10,417,833 10,133,400
============== ============== =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2019
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 30 September 31 December
2019 2018 2018
GBP GBP GBP
ASSETS
Non-current assets
Investments 1,482,988 482,988 732,988
Loans and other financial
assets 8,776,137 8,104,431 8,222,217
-------------- -------------- -------------
10,259,125 8,587,419 8,955,205
-------------- -------------- -------------
Current assets
Trade and other receivables 24,755 37,295 24,401
Cash and cash equivalents 791,177 2,030,592 1,470,087
-------------- -------------- -------------
815,932 2,067,887 1,494,488
-------------- -------------- -------------
TOTAL ASSETS 11,075,057 10,655,306 10,449,693
============== ============== =============
EQUITY
Shareholders' equity
Share capital 5,886,392 5,663,072 5,663,072
Share premium 20,230,006 19,266,271 19,266,271
Merger Reserve 137,700 137,700 137,700
Capital contribution reserve 46,451 46,451 46,451
Share option reserve 705,619 562,947 612,465
Accumulated losses (16,186,728) (15,312,277) (15,535,429)
-------------- -------------- -------------
TOTAL EQUITY 10,819,440 10,364,164 10,190,530
-------------- -------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 63,412 98,937 66,958
Grant income 192,205 192,205 192,205
-------------- -------------- -------------
TOTAL LIABILITIES 255,617 291,142 259,163
-------------- -------------- -------------
TOTAL EQUITY AND LIABILITIES 11,075,057 10,655,306 10,449,693
============== ============== =============
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 9 months ended 30 September 2019
Share Share Capital Share-based Translation Merger Accumulated Total Non- Total
capital premium contribution payment reserve reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2018 5,342,072 18,141,271 46,451 575,078 (397,060) 137,700 (14,079,747) 9,765,765 (159,868) 9,605,897
Loss for the
period - - - - - - (848,762) (848,762) (584) (849,346)
Foreign
exchange
translation - - - - (326,500) - - (326,500) (150) (326,650)
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------
Total
comprehensive
loss - - - - (326,500) - (848,762) (1,175,262) (734) (1,175,996)
Transactions
with
owners
Issue of share
capital 300,000 1,200,000 - - - - - 1,500,000 - 1,500,000
Issue costs - (75,000) - - - - - (75,000) - (75,000)
Equity-settled
share-based
payment
transactions - - - 146,942 - - - 146,942 - 146,942
Acquisition of
subsidiary 21,000 - - (159,073) - - 141,750 3,677 - 3,677
At 30
September
2018
(unaudited) 5,663,072 19,266,271 46,451 562,947 (723,560) 137,700 (14,786,759) 10,166,122 (160,602) 10,005,520
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------
Loss for the
period - - - - - - (525,174) (525,174) (67) (525,241)
Foreign
exchange
translation - - - - 203,303 - - 203,303 82 203,385
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------
Total
comprehensive
income /
(loss) - - - - 203,303 - (525,174) (321,871) 15 (321,856)
Transaction
with
owners
Equity-settled
share-based
payment
transactions - - - 49,518 - - - 49,518 - 49,518
At 31 December
2018 (audited) 5,663,072 19,266,271 46,451 612,465 (520,257) 137,700 (15,311,933) 9,893,769 (160,587) 9,733,182
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------
Loss for the
period - - - - - - (658,696) (658,696) (107,114) (765,810)
Foreign
exchange
translation - - - - (508,013) - - (508,013) (7,336) (515,349)
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------
Total
comprehensive
income - - - - (508,013) - (658,696) (1,166,709) (114,450) (1,281,159)
Transactions
with
owners
Issue of share
capital 223,320 1,026,680 - - - - - 1,250,000 - 1,250,000
Issue Costs - (62,945) - - - - - (62,945) - (62,945)
Equity-settled
share-based
payment
transactions - - - 93,154 - - - 93,154 - 93,154
Step up of
interest
in Vardar - - - - - 573,704 573,704
At 30 September
2019
(unaudited) 5,886,392 20,230,006 46,451 705,619 (1,028,270) 137,700 (15,970,629) 10,007,269 298,667 10,305,936
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
For the 9 months ended 30 September 2019
Share Share Capital Share-based Merger Accumulated Total
capital premium contribution payment reserve losses
reserve reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2018 5,342,072 18,141,271 46,451 575,078 137,700 (14,906,137) 9,336,435
Loss for the
period - - - - - (547,890) (547,890)
Total
comprehensive
loss - - - - - (547,890) (547,890)
Transactions
with owners
Issue of share
capital 300,000 1,200,000 - - - - 1,500,000
Costs
associated
with the issue
of new shares - (75,000) - - - - (75,000)
Equity-settled
share-based
payment
transactions - - - 146,942 - - 146,942
Acquisition of
subsidiary 21,000 - - (159,073) - 141,750 3,677
At 30
September
2018
(unaudited) 5,663,072 19,266,271 46,451 562,947 137,700 (15,312,277) 10,364,164
---------- ------------- -------------- ------------ ------------- ------------- -----------
Loss for the
period - - - - - (223,152) (223,152)
Total
comprehensive
loss - - - - - (223,152) (223,152)
Transaction
with owners
Issue of share
capital - - - - - - -
Equity-settled
share-based
payment
transactions - - - 49,518 - - 49,518
At 31 December
2018 (audited) 5,663,072 19,266,271 46,451 612,465 137,700 (15,535,429) 10,190,530
---------- ------------- -------------- ------------ ------------- ------------- -----------
Loss for the
period - - - - - (651,299) (651,299)
Total
comprehensive
loss - - - - - (651,299) (651,299)
Transactions
with owners
Issue of share
capital 223,320 1,026,680 - - - - 1,250,000
Costs
associated
with the issue
of new shares - (62,945) - - - - (62,945)
Equity-settled
share-based
payment
transactions - - - 93,154 - - 93,154
At 30 September
2019
(unaudited) 5,886,392 20,230,006 46,451 705,619 137,700 (16,186,728) 10,819,440
---------- ------------- -------------- ------------ ------------- ------------- -----------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
For the 9 months ended 30 September 2019
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England and
Wales. 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 2018.
The impact of IFRS 16, adopted 1 January 2019, has no material
effect on the Group at this stage of the Group's operations.
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 quarter ended
and nine months ended 30 September 2019 is unaudited and has not
been reviewed by the auditors. The financial information for the
year ended 31 December 2018 has been derived from the Group's
audited financial statements for the year. The auditor's report on
the statutory financial statements for the year ended 31 December
2018 was unqualified and did not contain any statement under
sections 498 (2) or (3) of the Companies Act 2006. The audit report
did contain a material uncertainty with respect of going concern,
however following additional audit procedures and noting it as key
audit matter, it was concluded the going concern basis was
appropriate.
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. Group and Company 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 580,770,460 (30 September
2018: 550,734,727 and 31 December 2018: 554,716,045) for the 9
months ended 30 September 19 and 588,639,270 (30 September 2018:
566,307,254) for the 3 months ended 30 September 19. There is no
difference between the basic and diluted loss per share.
4. Called up share capital
(Unaudited) (Unaudited) (Audited)
30 September 30 September 31 December
2019 2018 2018
GBP GBP GBP
Allotted, issued and fully
paid
Ordinary shares of 1p each 5,886,392 5,663,072 5,663,072
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2018 534,207,254
Issued during the period 32,100,000
------------
Balance at 30 September 2018 566,307,254
Issued during the period -
------------
Balance at 31 December 2018 566,307,254
Issued during the period 8,695,652
------------
Balance at 30 September 2019 588,639,270
------------
5. Intangible Assets: Group
Exploration costs As at As at As at 31
30 September 30 September December
2019 2018 2018
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Cost
At 1 January 8,285,547 8,191,232 8,191,232
Additions for the period 528,992 546,207 782,437
Additions arising from the 1,389,553 - -
step-up in the interest in
Vardar
Foreign exchange movements (507,299) (334,135) (116,666)
Impairment - (150,421) (571,456)
9,696,793 8,252,883 8,285,547
============== ============== ==========
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at As at
30 September 30 September 31
2019 2018 December
2018
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Project Country
Kallak Sweden 6,724,645 6,785,174 7,079,806
Åtvidaberg Sweden 352,708 283,328 303,565
Ågåsjiegge Sweden 15,985 14,281 17,121
Sala Sweden 9,251 8,239 8,444
Haapamäki Finland - 237,600 -
Kolari1 Finland - 159,513 -
Viistola Finland - - -
Pitkäjärvi Finland 1,065,208 728,352 817,986
Joutsijärvi Finland 19,787 31,531 25,002
Rääpysjärvi Finland 34,042 3,410 19,938
Karhunmäki Finland 20,216 - 13,685
Merivaara Finland 15,992 - -
Polvela Finland 29,665 - -
Tammijärvi Finland 19,741 - -
Lapua Finland - 1,455
Mitrovica Kosovo 959,567 - -
Viti Kosovo 429,986 - -
9,696,793 8,252,883 8,285,547
============== ============== ==========
Total Group exploration costs of GBP9,696,793 are currently
carried at cost in the financial statements. During the period, no
impairment provision was recognised (30 September 2018:
GBP150,421).
Accounting estimates and judgements are continually evaluated
and are based on a number of factors, including expectations of
future events that are believed to be reasonable under the
circumstances. Management are required to consider whether there
are events or changes in circumstances that indicate that the
carrying value of this asset may not be recoverable.
The most significant risk currently facing the Group is that it
does not receive an Exploitation Concession for Kallak. The Company
originally applied for the Exploitation Concession in April 2013
and throughout 2017, and since the year-end, management have
actively sought to progress the application, engaging with the
various government bodies and other stakeholders. These activities
are summarised above.
Kallak is included in the condensed financial statements as at
30 September 2019 as an intangible exploration licence with a
carrying value of GBP6,724,645. Management have considered the
status of the application for the Exploitation Concession and in
their judgement, they believe it is appropriate to be optimistic
about the chances of being awarded the Exploitation Concession and
thus have not impaired the project.
6. 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.
** Ends **
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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