TIDMBEM
RNS Number : 5922E
Beowulf Mining PLC
02 March 2020
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 March 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Preliminary Financial Results for the year ended 31
December 2019
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited preliminary financial
results for the year ended 31 December 2019.
Overview of Activities
Kosovo
-- The Company provided, on 15 April 2019, a management update
on its investment in Vardar Minerals Limited ("Vardar"). Beowulf,
committed a total of GBP750,000 in Vardar, taking its ownership
from 31.3 per cent to approximately 37.6 per cent, fully funding
Vardar's 2019 Kosovan exploration programme at the Mitrovica and
Viti projects.
-- The Company announced, on the 24 September 2019, exploration
results for Vardar's Wolf Mountain lead-zinc-silver target, part of
the Mitrovica Project situated in northern Kosovo. Later in the
month, soil sampling results and the definition of three
exploration targets were announced for the southern part of
Mitrovica.
-- On 8 October 2019, the Company announced exploration results
for Vardar's prospective Viti license in south eastern Kosovo,
intersections showing copper and gold, following the completion of
an orientation drill programme over a target prospective for
porphyry related mineralisation.
-- On 14 October 2019, Beowulf exercised its option in Vardar,
investing a further GBP115,000 and taking the Company's ownership
of Vardar from approximately 37.6 per cent to 40.1 per cent. A
further investment of GBP100,000 in November took the Company's
ownership to 41.5 per cent.
Finland
-- On 7 March 2019, the Company announced that Beowulf's wholly
owned subsidiary, Oy Fennoscandian Resources AB ("Fennoscandian"),
received additional funding from Business Finland, a 50 per cent
contribution to a budget of Euros 224,900.
-- Beowulf announced, on 27 March 2019, that drilling, targeting
both higher-grade mineralisation and high-priority geophysical
anomalies, had started at its Aitolampi graphite project
("Aitolampi").
-- On 30 October 2019, the Company announced an upgraded Mineral
Resource Estimate ("MRE") for Aitolampi, 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.
Sweden
-- On 1 February 2019, Beowulf informed the market that it
attended the Future Mine and Mineral 2019 Conference, where Kurt
Budge, CEO, delivered a presentation titled 'Sustainability in the
heart - partnership, the lifecycle of mining projects, balancing
the interest of stakeholders'.
-- On several occasions throughout the period, the Company wrote
to Mr. Baylan, Minister for Business, Industry and Innovation for
The Government of Sweden (the "Swedish Government"), regarding the
Company's application for an Exploitation Concession for
Kallak.
-- The Company provided, on 19 June 2019, a management update on
Kallak, its continuing support for SME development in Jokkmokk and
the CEO's attendance at the third OECD Meeting for Mining Regions
and Cities held in Sweden.
-- 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 Concession.
-- 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.
-- On 11 November 2019, the Company announced it had submitted a
concluding statement for Kallak to the Swedish 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.
Corporate
-- The Company announced, on 14 January 2019, that options were
granted to Directors and a senior manager over a total of 8,000,000
ordinary shares of GBP0.01 each in the capital of the Company,
representing approximately 1.41 per cent of the issued share
capital of the Company.
-- On 1 April 2019, the Company announced a subscription for
13,636,364 new ordinary shares of GBP0.01 each to raise GBP750,000
before expenses.
-- On 16 April 2019, the Company announced a subscription for
8,695,652 new ordinary shares of GBP0.01 each to raise GBP500,000
before expenses.
-- The Company announced, on 24 October 2019, a subscription for
9,090,909 new ordinary shares of GBP0.01 each to raise
GBP500,000.
-- The Company announced, on 8 November 2019, a subscription for
4,347,826 new ordinary shares of GBP0.01 each to raise
GBP250,000.
Post Period Overview
-- The Company announced, on 3 February 2020, a management
update on Kallak and the Company's business areas, where the
Company reiterated its frustrations with the delays regarding the
Concession.
-- On 4 February 2020, the Company announced that in response to
the CEO's letter sent to Minister Baylan, the Swedish Government
stated that it was not able to comment on when a decision is
expected to be taken, in respect of the Concession for Kallak,
however, the Government had taken careful note of information
provided.
-- As of 5 February 2020, there were 392,995,504 Swedish
Depository Receipts representing 65.26 per cent of the issued share
capital of the Company. The remaining issued share capital of the
Company is held in the UK.
-- The Company provided, on 13 February 2020, a management
update on Kallak where the Company stated that contrary to media
reports, no legal action has yet been taken against the Swedish
Government, but that all options to take legal action remain under
active consideration.
-- On 17 February 2020, the Company announced that Vardar, has
identified a copper-zinc exploration target at Mitrovica. Beowulf
has also invested a further GBP50,000 in Vardar, increasing the
Company's ownership from 41.5 per cent to 42.2 per cent.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"During 2018, we made significant progress in Kosovo with
Vardar. Exploration success, developing our understanding of copper
and gold porphyry potential at both the Mitrovica and Viti
projects, has provided the basis for continued investment and
increased ownership, with Beowulf now owning 42.2 per cent of
Vardar.
"Porphyry deposits are very large, low grade, polymetallic
systems, that typically contain copper along with other metals,
such as gold, silver, zinc and lead.
"At Mitrovica, located near to the world class Stan Terg
lead-zinc-silver mine, potential not only exists for the discovery
of additional lead-zinc-silver deposits, but also for the discovery
of high-level epithermal gold deposits and for copper-zinc
deposits.
"It is simplistic to think of these targets, which occur along a
seven kilometre trend, in isolation. However, Vardar believes the
targets are all related to a potentially much larger porphyry style
mineralised system, based on meticulous geological mapping of
hydrothermal alteration and interpretation of trench, drill and
soil geochemical exploration data.
"At Viti, initial stratigraphic holes, drilled last year,
intersected the correct alteration type, returning gold and visible
copper mineralisation, that indicates potential for the discovery
of a mineralised copper-gold porphyry in a hitherto unexplored
area.
"Fennoscandian has had another strong year. Further drilling at
Aitolampi supported an upgraded Mineral Resource Estimate,
announced in October, with significant increases in contained
graphite, and the global Indicated and Inferred Mineral
Resource.
"Fennoscandian continues to develop a 'resource footprint' of
natural flake graphite to provide 'security of supply' to Finland's
emerging battery sector and to benefit from Business Finland
funding, as it seeks to establish its battery grade anode material
credentials.
"Kallak remains the foundation asset of the Company. I do not
need to repeat my comments from recent announcements, save to say
we have met the requirements of Swedish minerals and environmental
legislation to be granted the Concession.
"Beowulf is in the business of exploring for minerals and
developing mining projects, thereby creating shareholder value. We
are not interested in fighting legal battles, but if forced to do
so to get a fair outcome, we will pursue that course of action with
vigour. We have completed the groundwork with our legal advisors,
making our case for being awarded the Concession and assessing our
legal options should the Swedish Government continue to stall on a
decision.
"Vardar has been a clear highlight for the period and an
exciting addition to Beowulf. Fennoscandian is cementing its
position in Finland's emerging battery sector. When it comes to
Kallak, we have been steadfast in our commitment to the project
since we were first granted an exploration licence in 2006. We have
invested over SEK 80 million.
"Most importantly, there is significant local support for
Kallak, which we intend to honour by partnering with the community
in the development of a modern, sustainable and innovative mining
operation, thereby contributing to the resurgence of Jokkmokk; a
brighter economic future for the town, one that it deserves.
"We look forward to keeping the market updated on further
developments across our business areas."
Financial
-- 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. Further investments in Vardar have increased the holding in
Vardar to 41.5% with the resulting fair value gain to 31 December
19 of GBP563,431.
-- The consolidated loss fell in the year from GBP1,374,58 to
GBP419,334. This decrease is primarily attributable to a GBP563,431
fair value gain on further investment in Vardar and lower
impairment charge on Sala (GBP10,720) compared to the impairment
charge in the prior year on Happamäki, Kolari and Viistola
(GBP571,456). A further contribution to the decrease was a lower
share-based payment charge relating to employees and Directors
options of GBP119,719 for the year compared to GBP194,460 incurred
in the year to 31 December 18.
-- The administration expenses increased in the year to date
from GBP598,391 to GBP895,295, due largely to the inclusion of
Vardar's administration expenses from 1 April 2019 to 31 December
2019 of GBP247,493.
-- Consolidated basic and diluted loss per share for the 12
months ended 31 December 2019 was 0.04 pence (2018: loss of 0.25
pence).
-- GBP1,124,062 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
GBP1,272,804 at 31 December 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 31 December 2019, there were 391,420,504 Swedish
Depository Receipts representing 64.99 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 1 February 2019, Beowulf informed the market that it
attended the Future Mine and Mineral 2019 Conference, where the CEO
delivered a presentation titled 'Sustainability in the heart -
partnership, the lifecycle of mining projects, balancing the
interest of stakeholders'.
Future Mine and Mineral is one of the key events in the Nordic
mining sector's calendar, showcasing the achievements and ambitions
of mining companies in the region as well as providing a platform
for raising the profile of issues affecting the industry, such as
the lack of transparency and the uncertainty in the permitting of
new mines.
The CEO showed the impact that Kallak and other cases are having
on Sweden's reputation, highlighted the country's decline in the
Fraser Institute Rankings from 8th in 2016 to 16th in 2017,
compared to Finland's top rating that year, and drew attention to
the 40 per cent decrease in applications for exploration permits in
Sweden in 2018.
The presentation reminded the audience that the Swedish
Geological Unit ("SGU") discovered Kallak in the 1940s and
designated it an Area of National Interest ("ANI") for its valuable
minerals in February 2013, that the Company has invested over SEK
77 million and drilled circa 28,000 metres ("m"), defining a
significant iron ore resource, with an exploration target that
could add further tonnage.
The presentation also included Beowulf's approach to sustainable
mining and outlined how the Company can play its part in ensuring
Sweden continues to lead in this area, by developing a modern and
sustainable mining operation at Kallak in partnership with the
community in Jokkmokk.
Representatives from the Swedish Government both attended the
Conference to listen to presentations and panel debates and spoke
of the Swedish mining sector as a key sector in the Swedish
economy.
-- On 2 April 2019, Beowulf informed the market that the
Company's Chairman, Mr Göran Färm had written to Minister Baylan,
regarding the Company's application for an Exploitation Concession
for the Kallak.
The letter highlighted the fact that the Company first submitted
its application in 2013. Since then, the case has been sent back
and forth between Swedish authorities and the Government, finding
themselves unable to award an Exploitation Concession for Europe's
largest drill defined iron ore deposit, having issued exploration
permits and watched the Company invest SEK 77 million, drill circa
28,000 m, define a significant resource, and develop the Kallak
project to where it is today.
All this is against a backdrop of LKAB's warning, in October
2018, that the ore in the Kiruna mine will be depleted earlier than
expected. The media spotlight put on the future of LKAB's
operations, and with this the attention paid to the importance of
iron ore to Sweden, further highlighted the absurdity of the Kallak
situation.
-- The Company informed the market, on 15 April 2019, that it
was actively communicating with the Swedish Government with regards
to its Kallak North application. The Government confirmed that the
Kallak application was being prioritised and acknowledged that the
Company had been waiting an excessive period for a decision.
Further to the CEO's attendance at the seminar in Luleå in March
2019 launching the report on the OECD's Rural Policy Review
'Linking the Indigenous Sami People with Regional Development in
Sweden', the Company has been following up with politicians in
Norrbotten who have a vested interest in bringing investment to the
region. The Company has also contacted groups such as Invest in
Norrbotten, Luleå Näringsliv and Luleå Chamber of Commerce, with
whom the Company has maintained contact over recent years, and who
also seek to attract investment to the region.
-- On 19 June 2019, the Company announced it is in regular
contact with the Swedish Government but has received no definitive
timescale for a decision to be taken on its application.
-- Beowulf also announced that the Company is continuing to
support SME development in Jokkmokk and, in the event that the
Concession for Kallak is awarded, has pledged an additional SEK
300,000 to the Collaboration Agreement (the "Agreement") it has
with Jokkmokks Allmänning ("Allmänning"). Beowulf has previously
invested SEK 500,000 in the partnership Agreement with Allmänning
and is pleased to continue to support SME development in
Jokkmokk.
The main purpose of the existing Agreement is to invest funds
and support the development of SMEs in Jokkmokk. The funds will
match Allmänning's investment in Jokkmokks Log, a sustainable
construction company, which uses Allmänning timber production for
wooden building construction. Jokkmokks Log, which is adding value
to locally produced raw materials, could provide opportunities for
training local apprentices, and thereafter employment as its
business grows.
-- The CEO attended the third OECD Meeting for Mining Regions
and Cities, organised to enable knowledge sharing, with a focus on
developing policy recommendations and standards that can help
maximise the benefits that mining can bring to a region or city.
Since early 2018, the Company has also been involved in the OECD's
Rural Policy Review 'Linking the Indigenous Sami People with
Regional Development in Sweden'.
At the meeting, learnings from past situations and experiences,
what works and what doesn't work, and ongoing challenges, such as
gaining acceptance by communities when it comes to mining
development and the importance of engaging with indigenous
communities, were discussed. In addition, global trends were
presented, including the 'Circular Economy' and the adoption of
'Clean Energy', and the impacts that these could have on the future
demand for minerals and metals.
In the context of all these ideas, the Company's Kallak project
is an ideal candidate for bringing together the best of thinking
into the development of a modern and sustainable mining project,
that could transform a community and a region, while leveraging the
mining heritage and harnessing the innovation that Norrbotten and
Sweden possess.
-- 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, 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 - 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 Sami communities
benefit 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 2019, the Company engaged Mannheimer Swartling
to work with Fröberg & Lundholm to review its Kallak
application. Specifically, to review statements by the County
Administrative Board for the County of Norrbotten ("CAB"),
including the CAB's statement made in November 2017, and the
Company's comments to the Swedish 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 2019, 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 Euros 3.2 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, with two
phases of work planned, and funded by the PACIFIC Project.
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.
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 (the "Statement") for Kallak, prepared by law firms
Mannheimer Swartling and Fröberg & Lundholm, to the Swedish
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.
-- Beowulf provided a management update on 19 December 2019,
regarding the Company's application for the Concession at Kallak
and shared the details of the CEO's further letter to Minister
Baylan. The CEO requested that the Government provide Beowulf with
details on when the Company can expect the decision on Kallak to be
taken.
-- The Company announced, on 3 February 2020, that the Board
would be meeting in Stockholm to discuss the continuing and
unacceptable delays in getting a decision form the Swedish
Government for Kallak. The Board was already in receipt of a paper
detailing options, prepared by the Company's lawyers, and actively
considering ring-fencing funds for legal action.
-- On 4 February 2020, in response to the CEO's letter sent to
Minister Baylan, the Company announced a response from the Swedish
Government, where it stated that it was not able to comment on when
a decision is expected to be taken, however, the Government had
taken careful note of information provided.
-- The Company provided, on 13 February 2020, a management
update on Kallak where the Company stated that contrary to media
reports, no legal action has yet been taken against the Swedish
Government, but that all options to take legal action remain under
active consideration.
Finland
-- On 7 March 2019, the Company announced that Fennoscandian
received additional funding from Business Finland, a 50 per cent
contribution to a budget of Euros 224,900. The funds will be used
for graphite purification and spheroidization test work, and the
further assessment of Fennoscandian's graphite for battery
applications.
Business Finland has been granted Euros 10 million funding for a
project titled "BATCircle - the development of a Finland-based
Circular Ecosystem of Battery Metals". BATCircle is part of the
European Union ("EU") Strategic Energy Technology Programme, where
Finland, under the leadership of Aalto University and Outotec, will
coordinate research into battery recycling. The national BATCircle
consortium includes a total of 22 companies, four universities, two
research institutes and two cities.
-- Beowulf announced, on 27 March 2019, that drilling, targeting
both higher-grade mineralisation and high-priority geophysical
anomalies, had started at Aitolampi.
The drill plan included seven holes for an approximate total of
1,040 m. Four holes to test potential higher-grade mineralised
zones to the south-east of drill hole AITDD18018 (completed in 2018
and which intersected 92.5 m at 6.19 per cent TGC), and three
remaining holes to target high-priority geophysical anomalies
untested by previous drilling. The drilling contract was awarded to
the Finnish contractor, Northdrill Oy.
The drilling programme generated sample material to support
baseline environmental studies for Aitolampi, for graphite
purification and spheroidization test work, and the further
assessment of Aitolampi graphite for battery applications as part
of the Business Finland funded BATCircle Project.
-- On 3 June 2019, the Company announced that drilling at
Aitolampi had extended the higher-grade Western Zone.
-- On 30 October 2019, the Company announced an upgraded MRE for Aitolampi. Highlights:
-- 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.
-- 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. 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.
-- 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.
Kosovo
-- On 6 November 2018, Beowulf announced that it had acquired a
14.1 per cent interest in Vardar for the consideration of
GBP250,000, satisfied in cash. The Company's investment enabled
Vardar to complete its 2018 exploration programme.
-- On 15 April 2019, the Company announced that it had exercised
its option to increase its ownership in Vardar Minerals to
approximately 37.6 per cent for the consideration of GBP750,000,
satisfied in cash, fully funding Vardar's 2019 Kosovan exploration
programme at the Mitrovica and Viti projects.
-- The Company updated the market, on 19 June 2019, on Vardar's
work at its Mitrovica licence. The licence is prospective for a
range of porphyry-related mineralisation types, including the
Madjan Peak high-sulphidation epithermal gold target, the Wolf
Mountain low-sulphidation lead-zinc-silver target and primary
porphyry copper mineralisation in the southern part of the licence
area.
In the northern part of the Wolf Mountain target, Vardar had
completed 651 m of drilling and a total of 278.5 m of trenching,
carried out over outcropping stockwork and hydrothermal breccia
mineralisation. In the southern part of the licence, a soil
sampling programme was progressing.
-- On 24 September 2019, Beowulf announced exploration results
for Wolf Mountain. Drilling and trenching results confirmed
extensive lead-zinc-silver mineralisation over an area of 800 m in
length and 400 m in width in its northern part, 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:
-- Trench WM-T01 returned 1.43 per cent lead, 1.87 per cent zinc
and 11 grammes per tonne ("g/t") silver over 51.0 m, including 2.01
per cent lead, 3.17 per cent zinc and 18 g/t silver over 12.5 m;
and
-- Trench WM-T02 returned 2.7 per cent lead, 0.55 per cent zinc
and 10 g/t silver over 18.0 m and 3.6 per cent lead, 0.64 per cent
zinc and 14 g/t silver over 8 m.
-- WM-T01, T02 and T03 all returned anomalously high
lead-zinc-silver concentrations for intersected zones.
-- Drilling highlights include:
-- Hole WM001 returned 1.2 per cent lead, 0.36 per cent zinc and 10 g/t silver over 14.1 m;
-- Hole WM003 returned 1.4 per cent zinc over 4.15 m;
-- Hole WM004 returned 1.27 per cent lead, 0.91 per cent zinc
and 8 g/t silver over 8.9 m; and 1.4 per cent zinc over 20.9 m;
-- Hole WM006 returned 1.38 per cent zinc over 19.3 m;
-- Hole WM007 returned 2.69 per cent lead, 0.4 per cent zinc and 16 g/t silver, over 4.3 m;
-- Hole WM009 returned 1.29 per cent lead over 3.0 m;
-- Hole WM010 returned 2.45 per cent zinc over 2.0 m; and
-- Hole WM014 returned 2.14 per cent zinc over 1.0 m.
-- The Company announced soil sampling results from the
perspective southern half of Mitrovica on 30 September 2019. Three
priority target areas have been identified:
-- 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.
-- 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).
Madjan Peak Lower Slopes - displays elevated copper, zinc and
silver in soil results possibly correlating with structurally
controlled mineralisation.
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:
-- Drilling has identified highly altered trachyte porphyry
dykes with associated copper and gold mineralisation.
-- Soil sampling results have returned anomalous copper and gold
correlating with outcropping gossans.
-- 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.
-- On 14 October 2019, Beowulf exercised its option in Vardar,
investing a further GBP115,000 and taking the Company's ownership
of Vardar from approximately 37.6 per cent to 40.1 per cent. A
further investment of GBP100,000 in November 2019 took the
Company's ownership to 41.5 per cent.
-- On 17 February 2020, the Company announced that Vardar, has
identified a copper-zinc exploration target at Mitrovica.
Mineralised gossans, which appear to be the surface expression of
hydrothermal breccias and stockworks, identified through field
mapping and sampling to the north and east of drill tested
mineralisation at Vardar's Wolf Mountain prospect, part of the
Mitrovica licence. Several rock samples obtained from the Mitrovica
licence included more than one per cent copper and up to three per
cent lead.
Beowulf, has also invested a further GBP50,000 in Vardar,
increasing the Company's ownership to 42.2 per cent from 41.5 per
cent. The investment will be used for a drone survey for magnetic
and magnetic IP data to determine targets for drilling. Results
from the drone surveys will be combined with 3D Induced
Polarisation surveys to generate drill targets.
Corporate
-- The Company announced, on 14 January 2019, that options were
granted to Directors and a senior manager over a total of 8,000,000
ordinary shares of GBP0.01 each in the capital of the Company,
representing approximately 1.41 per cent of the issued share
capital of the Company.
The award of the Share Options recognises the contribution made
by the Directors and employees to the continued advancement of the
Company. Options were last awarded to Kurt Budge in July 2015, and
to Christopher Davies and Rasmus Blomqvist in January 2017.
The Share Options are exercisable at a price of 7.35 pence per
share, being a 30 per cent premium to the closing mid-price of 5.65
pence per share on 11 January 2019. The Share Options fully vest
one year from the date of grant or fully vest immediately if the
individual leaves the Company. The Share Options are valid for five
years from the date of grant.
Following the grant of Share Options, there were 23,250,000
ordinary shares of GBP0.01 each of the Company under option to
Directors and employees of the Company, representing 4.1 per cent
of the existing issued ordinary share capital of the Company.
-- On 1 April 2019, the Company announced a subscription for new
ordinary shares of GBP0.01 each to raise GBP750,000 before
expenses. Principally, the funds have been used for a follow-on
investment in Vardar.
-- On 16 April 2019, the Company announced a subscription for
new ordinary shares of GBP0.01 each to raise GBP500,000 before
expenses.
-- 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 is 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. On 17 February 2020, the Company announced that it had
invested a further GBP50,000 in Vardar, increasing the Company's
ownership from 41.5 per cent to 42.2 per cent.
-- As of 5 February 2020, there were 392,995,504 Swedish
Depository Receipts representing 65.26 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 forecasts.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS TO 31 DECEMBER 2019 AND THE THREE MONTHS
TO
31 DECEMBER 2019
(Unaudited) (Audited) (Unaudited) (Audited)
Year
3 months 3 months 12 months ended 31
ended 31 ended 31 ended 31 December
December December December 2018
2019 2018 2019
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (165,241) (38,335) (895,295) (598,391)
Impairment of exploration
costs (10,720) (421,035) (10,720) (571,456)
Share based payment
expense (26,566) (49,518) (119,719) (196,460)
Share of loss of associates - (19,880) - (19,880)
Gain on Acquisition 511,749 - 563,431 -
------------ ----------- ------------ --------------
Operating Profit/(Loss) 309,222 (528,768) (462,304) (1,386,187)
Finance costs (410) - (410) -
Finance income 583 3,709 6,298 11,603
Grant Income 37,080 - 37,080 -
------------ ----------- ------------ --------------
Profit/(Loss) before
and after taxation 346,476 (525,059) (419,334) (1,374,584)
============ =========== ============ ==============
Loss attributable to:
Owners of the parent 412,438 (525,026) (246,258) (1,373,936)
Non-controlling interests (65,962) (33) (173,076) (648)
346,476 (525,059) (419,334) (1,374,584)
============ =========== ============ ==============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 0.07 (0.09) (0.04) (0.25)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE TWELVE MONTHS TO 31 DECEMBER 2019 AND THREE MONTHS
TO
31 DECEMBER 2019
(Unaudited) (Audited) (Unaudited) (Audited)
3 months 3 months 12 months Year
ended 31 ended 31
December December
2019 2018
ended 31 ended 31
December December
2019
GBP GBP 2018
GBP
GBP
Profit/(Loss) for the
period 346,476 (525,059) (419,334) (1,374,584)
Other comprehensive income
Items that may be reclassified
subsequently to profit
or loss:
Exchange (gain/losses)
arising on translation
of foreign operations (264,076) 335,729 (779,425) (123,265)
------------ ------------ ------------ ------------
Total comprehensive profit(loss) 82,400 (189,331) (1,198,759) (1,497,849)
============ ============ ============ ============
Total comprehensive profit/(loss)
attributable to:
Owners of the parent 167,904 (189,349) (998,805) (1,497,133)
Non-controlling interests (85,504) 18 (199,954) (716)
82,400 (189,331) (1,198,759) (1,497,849)
============ ============ ============ ============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE TWELVE MONTHS TO 31 DECEMBER 2019 AND THREE MONTHS
TO
31 DECEMBER 2019
(Unaudited) (Audited) (Unaudited) (Audited)
3 months 3 months 12 months Year
ended 31 ended 31 ended 31
December December December
2019 2018 2019
ended 31
December
GBP GBP GBP 2018
Notes GBP
Continuing operations
Administrative expenses (131,354) (270,776) (651,434) (586,182)
Share based payment
expense (26,566) (49,518) (119,719) (196,460)
Operating Loss (157,920) (320,294) (771,153) (782,642)
Finance income 583 3,709 6,298 11,603
Grant Income 1,425 - 1,425 -
------------ ----------- ------------ -----------
Loss before and after
taxation and total comprehensive
loss (155,912) (316,585) (763,430) (771,039)
============ =========== ============ ===========
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.03) (0.03) (0.03) (0.14)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
(Unaudited) (Audited)
As at As at
31 December 31 December
2019 2018
GBP GBP
ASSETS Notes
Non-current assets
Intangible assets 5 10,213,722 8,285,547
Property, plant and equipment 101,872 16,083
Investments - 230,120
Loans and other financial
assets 5,212 5,462
Right of use asset 7,324 -
------------- -------------
10,328,130 8,537,212
------------- -------------
Current assets
Trade and other receivables 167,261 62,956
Cash and cash equivalents 1,124,062 1,533,232
------------- -------------
1,291,323 1,596,188
------------- -------------
TOTAL ASSETS 11,619,453 10,133,400
============= =============
EQUITY
Shareholders' equity
Share capital 4 6,022,446 5,663,072
Share premium 20,824,009 19,266,271
Merger Reserve 137,700 137,700
Capital contribution
reserve 46,451 46,451
Share based payment reserve 732,184 612,465
Translation reserve (1,272,804) (520,257)
Accumulated losses (15,558,191) (15,311,933)
------------- -------------
Total Equity 10,931,795 9,893,769
------------- -------------
Non-controlling interests 311,795 (160,587)
------------- -------------
TOTAL EQUITY 11,243,590 9,733,182
------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 233,514 208,013
Grant income 134,877 192,205
Lease Liability 7,472 -
------------- -------------
TOTAL LIABILITIES 375,863 400,218
------------- -------------
TOTAL EQUITY AND LIABILITIES 11,619,453 10,133,400
============= =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
(Unaudited) (Audited)
As at As at
31 December 31 December
2019 2018
GBP GBP
ASSETS
Non-current assets
Investments 1,697,988 732,988
Loans and other financial
assets 8,989,452 8,222,217
------------- -------------
10,687,439 8,955,205
------------- -------------
Current assets
Trade and other receivables 23,260 24,401
Cash and cash equivalents 978,514 1,470,087
------------- -------------
1,001,774 1,494,488
------------- -------------
TOTAL ASSETS 11,689,214 10,449,693
============= =============
EQUITY
Shareholders' equity
Share capital 6,022,446 5,663,072
Share premium 20,824,009 19,266,271
Merger Reserve 137,700 137,700
Capital contribution
reserve 46,451 46,451
Share option reserve 732,184 612,465
Accumulated losses (16,298,856) (15,535,429)
------------- -------------
TOTAL EQUITY 11,463,934 10,190,530
------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 90,403 66,958
Grant income 134,877 192,205
------------- -------------
TOTAL LIABILITIES 225,280 259,163
------------- -------------
TOTAL EQUITY AND LIABILITIES 11,689,214 10,449,693
============= =============
BEOWULF MINING PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 31 DECEMBER 2019
(Unaudited) (Audited)
31 December 31 December
2019 2018
Cash flows from operating activities GBP GBP
Loss before income tax (419,334) (1,374,584)
Depreciation charges 20,971 14,696
Equity-settled share-based transactions 119,719 196,460
Impairment of exploration costs 10,720 571,456
Finance income (6,298) (11,603)
Finance cost 410 -
Grant income (37,080) -
Fair value gain (563,431) -
Amortisation 4,615 -
Share of loss in associates - 19,880
_________ _________
(869,708) (583,695)
(Increase)/decrease in trade
and other receivables (106,009) 2,603
Decrease in trade and other
payables 20,941 (72,740)
_________ _________
Net cash used in operating activities (954,777) (653,832)
_________ _________
Cash flows from investing activities
Purchase of intangible assets (1,304,896) (778,495)
Purchase of property, plant
and equipment (92,998) (2,515)
Acquisition of associate - (250,000)
Cash acquired with subsidiary 30,031 -
Disposal of investments 7 13
Interest received 6,298 11,603
Grant receipt - 192,205
_________ _________
Net cash used in investing activities (1,361,558) (827,189)
_________ _________
Cash flows from financing activities
Proceeds from issue of shares 2,010,417 1,500,000
Payment of share issue costs (93,305) (75,000)
Lease principal paid (4,467) -
Lease interest paid (410) -
_________ _________
Net cash from financing activities 1,912,235 1,425,000
_________ _________
Increase/(decrease) in cash
and cash equivalents (404,099) (56,021)
Cash and cash equivalents at
beginning of year 1,533,232 1,589,897
Effect of foreign exchange rate
changes (5,070) (644)
_________ _________
Cash and cash equivalents at
end of year 1,124,062 1,533,232
_________ _________
BEOWULF MINING PLC
CONDENSED COMPANY CASH FLOW STATEMENT
AS AT 31 DECEMBER 2019
(Unaudited) (Audited)
31 December 31 December
2019
2018
GBP GBP
Cash flows from operating activities
Loss before income tax (763,430) (771,042)
Equity-settled share-based transactions 119,719 196,460
Expected credit loss 158,005 161,856
Finance income (6,298) (11,603)
Grant income (1,425) -
(493,429) (424,329)
Decrease/(increase) in trade and
other receivables 1,141 15,700
Decrease/(increase) in trade and
other payables 23,444 (56,322)
Net cash used in operating activities (468,844) (464,951)
------------- -------------
Cash flows from investing activities
Loans to subsidiaries (981,139) (952,091)
Acquisition of associate (965,000) (250,000)
Interest received 6,298 11,603
Grant Receipt - 192,205
Net cash used in investing activities (1,939,841) (998,283)
------------- -------------
Cash flows from financing activities
Proceeds from issue of shares 2,010,417 1,500,000
Payment of share issue costs (93,305) (75,000)
Net cash from financing activities 1,917,112 1,425,000
------------- -------------
Decrease in cash and cash equivalents (491,573) (38,234)
Cash and cash equivalents at beginning
of year 1,470,087 1,508,321
Cash and cash equivalents at end
of year 978,514 1,470,087
============= =============
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS TO 31 DECEMBER 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 (159,871) 9,605,894
Loss for the
period - - - - - - (1,373,936) (1,373,936) (648) (1,374,584)
Foreign
exchange
translation - - - - (123,197) - - (123,197) (68) (123,265)
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------------
Total
comprehensive
loss - - - - (123,197) - (1,373,936) (1,497,133) (716) (1,497,849)
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 - - - 196,460 - - - 196,460 - 196,460
Acquisition of
subsidiary 21,000 - - (159,073) - - 141,750 3,677 - 3,677
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 - - - - - - (246,258) (246,258) (173,076) (419,334)
Foreign
exchange
translation - - - - (752,547) - - (752,547) (26,879) (779,426)
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------------
Total
comprehensive
income - - - - (752,547) - (246,258) (998,805) (199,955) (1,198,760)
Transactions
with
owners
Issue of share
capital 359,374 1,651,043 - - - - - 2,010,417 - 2,010,417
Issue Costs - (93,305) - - - - - (93,305) - (93,305)
Equity-settled
share-based
payment
transactions - - - 119,719 - - - 119,719 - 119,719
Acquisition of
Subsidiary - - - - - - - - 672,337 672,337
At 31 December
2019
(unaudited) 6,022,446 20,824,009 46,451 732,184 (1,272,804) 137,700 (15,558,191) 10,931,795 311,795 11,243,590
---------- ----------- ------------- ------------ ------------ -------- ------------- ------------ ------------ ------------------
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS TO 31 DECEMBER 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
year - - - - - (771,039) (771,039)
Total
comprehensive
loss - - - - - (771,039) (771,039)
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 - - - 196,460 - - 196,460
Acquisition of
subsidiary 21,000 - - (159,073) - 141,750 3,677
At 31
December 2018
(audited) 5,663,072 19,266,271 46,451 612,465 137,700 (15,535,426) 10,190,533
---------- ------------- -------------- ------------ ------------- ------------- -----------
Loss for the
year - - - - - (763,430) (763,430)
Total
comprehensive
loss (763,430) (763,430)
Transactions
with owners
Issue of share
capital 359,374 1,651,043 - - - - 2,010,417
Costs
associated
with the issue
of new shares - (93,305) - - - - (93,305)
Equity-settled
share-based
payment
transactions - - - 119,719 - - 119,719
At 31 December
2019
(unaudited) 6,022,446 20,824,009 46,451 732,184 137,700 (16,298,856) 11,463,934
---------- ------------- -------------- ------------ ------------- ------------- -----------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE
TWELVE MONTHS TO 31 DECEMBER 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 that of 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 except as noted below.
The Group applied the provisions of IFRS 10 from 1 April 2019 to
its investment in Vardar following a further increase in ownership,
and consolidated Vardar effective of this date.
The impact of IFRS 16, adopted 1 January 2019, has had 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 twelve months ended 31 December 2019 or for the three months
ended 31 December 2019 is unaudited and has not been reviewed by
the auditors. The financial information for the three month period
ended 31 December 2018 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
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months Year
ended ended ended ended
Group 31 December 31 December 31 December 31 December
19 18 19 18
Profit for the year attributable
to shareholders of the Company
(GBP's) 412,437 (525,026) (246,258) (1,373,936)
Weighted average number
of ordinary shares 597,824,737 566,307,254 585,102,740 554,716,045
Diluted weighted average
number of ordinary shares 604,399,974 566,307,254 585,102,740 554,716,045
------------ ------------ ------------ ------------
Earnings / (loss) per share
(p) 0.07 (0.09) (0.04) (0.25)
------------ ------------ ------------ ------------
Diluted Earnings / (loss)
per share (p) 0.07 (0.09) (0.04) (0.25)
------------ ------------ ------------ ------------
Parent
Profit for the year attributable
to shareholders of the Company
(GBP's) (155,911) (166,164) (246,258) (771,039)
Weighted average number
of ordinary shares 597,824,737 566,307,254 585,102,740 554,716,045
Diluted weighted average
number of ordinary shares 597,824,737 566,307,254 585,102,740 554,716,045
------------ ------------ ------------ ------------
Earnings / (loss) per share
(p) (0.04) (0.03) (0.04) (0.14)
------------ ------------ ------------ ------------
Diluted Earnings / (loss)
per share (p) (0.04) (0.03) (0.04) (0.14)
------------ ------------ ------------ ------------
4 . Share capital
(Unaudited) (Audited)
31 December 31 December
2019 2018
GBP GBP
Allotted, issued and fully
paid
Ordinary shares of 1p each 6,022,446 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 year 32,100,000
------------
Balance at 31 December 2018 566,307,254
Issued during the year 35,937,418
------------
Balance at 31 December 2019 602,244,672
------------
5 . Intangible Assets: Group
Exploration costs As at 31 As at 31
December December
2019 2018
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January 8,285,547 8,191,232
Additions for the year 748,354 782,437
Additions arising from the 1,962,455 -
step-up in interest in Vardar
Foreign exchange movements (771,914) (116,666)
Impairment (10,720) (571,456)
10,213,722 8,285,547
============ ============
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at
31 December 31
2019 December
2018
(Unaudited) (Audited)
GBP GBP
Project Country
Kallak Sweden 6,675,124 7,079,806
Åtvidaberg Sweden 345,978 303,565
Ågåsjiegge Sweden 15,568 17,121
Sala Sweden - 8,444
Pitkäjärvi Finland 1,058,078 817,986
Joutsijärvi Finland 19,095 25,002
Rääpysjärvi Finland 39,905 19,938
Karhunmäki Finland 24,078 13,685
Merivaara Finland 17,846 -
Polvela Finland 31,316 -
Tammijärvi Finland 24,278 -
Mitrovica Kosovo 1,382,845 -
Viti Kosovo 579,612 -
10,213,722 8,285,547
============= ==========
Total Group exploration costs of GBP10,213,722 are currently
carried at cost in the financial statements. During the year, an
impairment provision of GBP10,720) was recognised for Sala licence
area (31 December 2018: GBP571,456).
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
31 December 2019 as an intangible exploration licence with a
carrying value of GBP6,675,124. 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
MSCZZGGFMMDGGZZ
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March 02, 2020 02:00 ET (07:00 GMT)
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