TIDMBEM
RNS Number : 2829O
Beowulf Mining PLC
29 May 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.
29 May 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 31 March
2020
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for
the three months ended 31 March 2020.
Overview of Activities in the Quarter
-- The Company announced, on 3 February 2020, a management
update on its application for an Exploitation Concession (the
"Concession") for the Kallak Iron Ore Project ("Kallak") and the
Company's other business areas, Vardar Minerals ("Vardar") and
Fennoscandian Resources ("Fennoscandian").
-- On 4 February 2020, the Company announced that in response to
the CEO's letter sent to Minister Ibrahim Baylan in December 2019,
the Government stated it was not able to comment on when a
decision, in respect of the Concession for Kallak, is expected to
be taken, however, the Government had taken careful note of the
information provided by the Company.
-- The Company stated, on 13 February 2020, that contrary to
media reports, no legal action had been taken against the
Government, but that all options with regard to taking legal action
remain under active consideration.
-- On 17 February 2020, the Company announced that Vardar had
identified a copper-zinc exploration target at Mitrovica and that
the Company had invested a further GBP50,000 in Vardar, increasing
the Company's ownership from 41.5 per cent to 42.2 per cent.
-- On 25 March 2020, the Company invested a further GBP30,000 in
Vardar, alongside founders and existing shareholders in Vardar, to
fund a soil sampling programme across the Madjan Peak gold target,
part of the Mitrovica licence. The resulting investment maintained
the Company's ownership interest in Vardar at 42.2 per cent.
Post Period
-- On 18 May 2020, the Company provided an update on
Fennoscandian's activities in Finland. 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 the Company seeks to move
downstream and develop its knowledge in processing and
manufacturing battery grade and value-added graphite products.
-- On 26 May 2020, the Company announced that a Parliamentary
Question regarding Kallak had been put to Mr Ibrahim Baylan,
Minister for Business, Industry and Innovation, which the Minister
is scheduled to answer on 3 June 2020. The question was posed by
Lars Hjälmered, a Moderate Party Member in the Swedish
Parliament.
-- On 27 May 2020, the Company announced that it had a awarded a
drilling contract for Kallak to Kati Oy. The work programme,
scheduled for Autumn 2020, will determine if a 3D seismic model can
be constructed, using the established seismic characteristics of
the Kallak deposit, and whether the 3D model can be used to
identify additional iron ore mineralisation for the Exploration
Target of 90-100 million tonnes ("Mt") at 22-30 per cent iron
("Fe") at Kallak.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"Over the quarter, we continued to see progress being made by
Vardar in Kosovo, with the addition of a copper-zinc exploration
target at Mitrovica and a soils sampling programme being carried
out over the prospective Madjan Peak gold target, the results of
which should be announced shortly.
"Post period, we updated the market on developments in Finland,
with positive early signs for a new graphite prospect, Karhunmäki,
and Fennoscandian playing an important role in studies into the
Lithium Ion Battery supply chain in Finland and improving the
traceability of battery raw material supply. In recent months,
Fennoscandian has completed spheroidization testwork and battery
tests on Aitolampi graphite, the results of which will be announced
in the coming weeks.
"Since my attendance at the Nordic Mining Day in Toronto in
early March, the Company has acted to face the ongoing threat posed
by COVID-19, as best we can, including 30 percent salary cuts for
the CEO and Board, and sought to maintain a 'business as usual'
attitude.
"This week, the Company updated the market on a Parliamentary
Question to Minister Baylan, which he is due to answer on 3 June
2020. Minister Baylan has responded to questions in the past
highlighting the complexity of the Kallak case.
"The Kallak case is not complex. During my time as CEO, no
authority has presented me with a long list of problems that needed
fixing. This is why the Board has consistently stated that the
Kallak application is comprehensive and satisfies the requirements
of the prescribed process for being granted an Exploitation
Concession in accordance with Swedish law.
"Last year, the Company went further, engaging lawyers to
prepare a Concluding Statement, submitted to the Government in
November 2019, which demonstrated that, under judicial review,
Beowulf's application has satisfied all requirements.
"Bergsstaten (the "Mining Inspectorate"), part of the Geological
Survey of Sweden ("SGU"), a Government Office, has granted
Exploration Permits for Kallak, the first in 2006, and seen the
Company drill almost 28,000 metres, 131 holes, to define a
significant iron ore resource.
"The SGU first discovered Kallak in the 1940s, designated it an
Area of National Interest ("ANI") in 2013 and produced its latest
study, headlined 'New light on iron ore at Kallak', this month.
Kallak has been on the SGU's radar for 80 years!
"Bergsstaten recommended to the Government in October 2015, that
the Concession for Kallak should be awarded, and last October
awarded an Exploration Permit for Parkijaure nr 6, which covers
approximately 1,000 hectares and lies immediately to the south of
the Kallak deposits. On the evidence, the authorities are happy for
companies to spend on exploration, in the case of Kallak over SEK
80 million to date, but it is another story when it is time to
consider granting an Exploitation Concession.
"In Toronto, Minister Baylan saved his biggest welcome for
investors. Beowulf has been invested in Sweden and working on
Kallak for 14 years. Minister Baylan said that I was welcome to do
business in Sweden. The fact of the matter is, Beowulf is unable to
do business, because we cannot get a decision from the Swedish
Government and take Kallak forward in partnership with the
community in Jokkmokk.
"In May 2019, the State Secretary said, to the Chairman and me,
in a face to face meeting, that the Government understood the
importance of Kallak to Jokkmokk. Now more than ever, with
COVID-19, it would be logical to assume that a project such as
Kallak, which has the potential to bring billions of SEK in
investment and hundreds of jobs to northern Sweden, should finally
gain approval.
"Beowulf has several thousand Swedish shareholders, who own
nearly 68 per cent of the Company. They, and the Company's
non-Swedish shareholders, have a right to know now what is
happening with the Kallak application and when a Government
decision will be forthcoming. At this time, the Government needs to
be transparent and remove the uncertainty as to when a decision
will be taken.
"We look forward to keeping the market updated on further
developments."
Financials
-- The consolidated loss remaining largely unchanged in quarter
ended at GBP217,342 (Q1 2019: GBP223,096). This decrease is partly
attributable to no share-based payment charge relating to employees
and Directors options for the quarter compared to GBP40,022
incurred in the previous quarter. This decrease is offset by the
consolidation of administration costs of GBP44,034 associated with
Vardar Minerals which became a subsidiary on 1 April 2019.
-- Consolidated basic and diluted loss per share for the quarter
ended 31 March 2020 was 0.03 pence (Q1 2019: loss of 0.04
pence).
-- GBP789,310 in cash held at the period end (Q1 2019: GBP1,229,606).
-- The cumulative translation losses held in equity decreased by
GBP120,819 in the quarter ended 31 March 2020 to GBP1,166,859 (31
December 2019: loss of GBP1,291,068). Much of the Company's
exploration costs are in Swedish Krona and Euro which has
strengthened against the pound since 31 December 2019.
-- At 30 April 2020 there were 402,150,037 Swedish Depository
Receipts representing 66.78 per cent of the issued share capital of
the Company. The remaining issued share capital of the Company is
held in the UK.
Operational
Vardar Minerals, Kosovo
-- On 17 February 2020, the Company announced that Vardar, has
identified an additional copper-zinc exploration target at
Mitrovica. Mineralised gossans have been identified through field
mapping and sampling to the north and east of drill tested
mineralisation at Wolf Mountain. The mineralised gossans identified
appear to be the surface expression of hydrothermal breccias and
stockworks.
Significant anomalies have been returned from rock grab sampling
and soil sampling grids over the area, with several rock samples
showing greater than 1 per cent copper and up to 3 per cent lead
and soil samples routinely over 500ppm copper and up to 1 per cent
lead and zinc.
-- At the same time, Beowulf announced that it had invested
GBP50,000 in Vardar, increasing the Company's ownership from 41.5
per cent to 42.2 per cent. Funds to be used for testing of an
automated terrain-following drone which will be used to collect
magnetic IP ("MIP") and magnetometric resistivity ("MMR") data over
priority areas at Viti and Mitrovica. Results from the drone
surveys will be combined with 3D Induced Polarisation surveys to
generate drill targets.
-- On 25 March 2020, Beowulf invested a further GBP30,000 in
Vardar, alongside founders and existing shareholders in Vardar who
themselves invested GBP40,000, to fund an infill soil sampling
programme over approximately one square kilometre across the Madjan
Peak gold target at Mitrovica. The total proceeds from the
fundraising amounted to GBP70,000. The Company's ownership interest
remained at 42.2 per cent.
Madjan Peak has returned anomalous gold and silver assays along
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 grammes
per tonne gold). Gold values correlate well with arsenic, which
provides a useful (more sensitive) corresponding dataset to define
anomaly positions. Previous soil sampling was completed on a 200
metre x 50 metre grid. Spacing will be reduced to 50 metre x 50
metre in order to provide better definition for drill targets.
-- Vardar is also planning to fly an ultra-detailed drone
magnetic survey over its entire licence package, Mitrovica and
Viti. Vardar has acquired the drone, sensors and support equipment
and has developed flight automation software over the winter
period. This software is now in testing and when completed will
assist in flying accurate low-level survey lines across mountainous
terrain.
Finland
-- On 18 May 2020, the Company provided an update on the
activities of its 100 per cent owned subsidiary Fennoscandian.
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 the Company seeks to move downstream and develop its
knowledge in processing and manufacturing battery grade and
value-added graphite products.
Since Fennoscandian was acquired in January 2016, Beowulf has
invested approximately Euros 1.56 million in graphite exploration,
resource development, metallurgical testwork and the assessment of
market applications for graphite from its Aitolampi project,
including Lithium Ion Battery ("LIB") applications.
-- Testwork on a composite sample for Karhunmäki, a new graphite
prospect, produced a concentrate grade of 96.4 per cent Total
Graphitic Carbon ("TGC"), with 51.3 per cent large/jumbo flakes
(+180 micron). An Exploration Permit application has been
submitted.
-- After upgrading the Mineral Resource Estimate ("MRE") for
Aitolampi in 2019, now with an Indicated and Inferred Mineral
Resource of 26.7 million tonnes at 4.8 per cent TGC for 1,275,000
tonnes of contained graphite, Fennoscandian will report, in the
coming weeks, on the results of spheroidization testwork and
battery tests on Aitolampi graphite.
-- Fennoscandian is supporting a study into the supply chain for
LIBs in Finland and collaborating with Åbo Akademi in Turku,
Finland.
-- Fennoscandian has joined, as a consortium member, the
Business Finland funded BATTrace project, which aims to improve
traceability along the battery raw materials value chain using
mineralogical/geochemical fingerprinting, to validate responsible
and sustainable sourcing of cobalt, nickel, lithium and
graphite.
Sweden
-- 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 from the Swedish
Government for the Kallak Concession. 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, the Company announced that in response to
the CEO's letter sent to Minister Ibrahim Baylan in December 2019,
the Government stated it was not able to comment on when a
decision, in respect of the Concession for Kallak, is expected to
be taken, however, the Government had taken careful note of the
information provided by the Company.
-- 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 Government,
but that all options to take legal action remain under active
consideration.
-- The Board stated that it was satisfied that the Company's
application for the Concession for Kallak fully meets the
requirements of Swedish mining and environmental legislation.
-- On 26 May 2020, the Company announced that a Parliamentary
Question regarding Kallak had been put to Mr Ibrahim Baylan,
Minister for Business, Industry and Innovation, which the Minister
is scheduled to answer on 3 June 2020. The question was posed by
Lars Hjälmered, a Moderate Party Member in the Swedish
Parliament.
Summary translation of Mr Hjälmered's question:
"The Kallak iron ore project has had to wait for a decision on
permits for over six years. The matter has been ready to make a
decision on the Minister's table for three years without him and
the Government making any decision. Another project received [by
the Government and] waiting unreasonably long for a decision is
Laver [Boliden AB].
In the [mining] industry, the question is now asked why the
Government is not coming to terms with it. Despite repeated
questions about when a decision may be made, and great irritation
from the industry, [the Government] has not yet returned to the
issue.
This management [of the issue by the Government] is under all
criticism, and the Government must recognize the importance of it
to Swedish mining industry. The industry is responsible for large
export revenues and employment [of] many people in Sweden. When the
Government cannot give any message, investments are not completed,
jobs are [not created] and [wider] benefits are not realized. In
addition, long processing times and uncertain processes mean Sweden
becomes less relevant to foreign investment.
In view of the above, I would like to ask Minister of Business
Ibrahim Baylan: When does the Minister and the Government intend to
make a decision on any mining activity in Kallak and Laver?"
-- On 27 May 2020, the Company announced that it had a awarded a
drilling contract for Kallak to Kati Oy. The work programme,
scheduled for Autumn 2020, will determine if a 3D seismic model can
be constructed, using the established seismic characteristics of
the Kallak deposit, and whether the 3D model can be used to
identify additional iron ore mineralisation for the Exploration
Target of 90-100 Mt at 22-30 per cent iron Fe at Kallak.
The work is being undertaken as part of the European Union
("EU") funded PACIFIC Project ("PACIFIC"). The aim of PACIFIC is to
develop a new low-cost and environmentally friendly tool for
exploring for sub-surface mineral deposits. The programme will test
a multi-array method in parallel with drilling at Kallak South,
with noise from drilling providing a passive seismic source.
The magnetic signature of mineralisation at Kallak, extends
southwards from Kallak North to Kallak South, and then beyond to
Parkijaure. Interpretation of geophysical data suggests the
potential for additional iron ore mineralisation, which could add
to the Kallak North and Kallak South resource.
If successful, the set-up could then be applied to the
Parkijaure nr 6 Exploration Licence, awarded by the Mining
Inspectorate in October 2019, which covers approximately 1,000
hectares and lies immediately to the south of the Kallak
deposits.
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 THREE MONTHS TO 31 MARCH 2020
(Unaudited) (Unaudited) (Unaudited)
3 months 3 months 12 months
ended 31 ended 31 ended 31
March March December
2019
2020 2019
GBP
Notes GBP GBP
Continuing operations
Administrative expenses (217,651) (183,650) (904,666)
Impairment of exploration
costs - - (10,720)
Share based payment
expense - (40,022) (119,720)
Share of loss of associates - (2,246) -
Gain on step acquisition - - 563,431
------------ ------------ ------------
Operating (Loss) (217,651) (225,918) (471,675)
Finance costs (88) - (410)
Finance income 397 2,822 6,298
Grant Income - - 37,080
------------ ------------ ------------
(Loss) before and after
taxation (217,342) (223,096) (428,707)
============ ============ ============
Loss attributable to:
Owners of the parent (191,543) (223,055) (249,192)
Non-controlling interests (25,799) (41) (179,515)
(217,342) (223,096) (428,707)
============ ============ ============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.03) (0.04) (0.04)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS TO 31 MARCH 2020
(Unaudited) (Unaudited) (Unaudited)
3 months 3 months 12 months
ended 31 ended 31
March March
2020 2019 ended 31
December
2019
GBP GBP GBP
(Loss) for the period
/ year (217,342) (223,096) (428,707)
Other comprehensive income
Items that may be reclassified
subsequently to profit
or loss:
Exchange gain/ (losses)
arising on translation
of foreign operations 124,676 (529,814) (794,299)
------------ ------------ ------------
Total comprehensive (loss) (92,666) (752,910) (1,223,006)
============ ============ ============
Total comprehensive (loss)
attributable to:
Owners of the parent (70,725) (752,748) (1,037,811)
Non-controlling interests (21,941) (162) (185,195)
(92,666) (752,910) (1,223,006)
============ ============ ============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS TO 31 MARCH 2020
(Unaudited) (Unaudited) (Unaudited)
3 months 3 months 12 months
ended 31 ended 31 ended 31
March March December
2019
2020 2019
GBP
Notes GBP GBP
Continuing operations
Administrative expenses (157,336) (163,032) (651,433)
Share based payment
expense - (40,022) (119,720)
Operating Loss (157,336) (203,054) (771,153)
Finance income 396 2,822 6,298
Grant Income - - 1,425
------------ ------------ ------------
Loss before and after
taxation and total comprehensive
loss (156,940) (200,232) (763,430)
============ ============ ============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.03) (0.04) (0.03)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
(Unaudited) (Unaudited) (Unaudited)
As at As at As at
31 31 31
March March December 2019
2020 2019 GBP
GBP GBP
ASSETS Notes
Non-current assets
Intangible assets 5 10,427,186 7,856,750 10,213,722
Property, plant and
equipment 126,637 28,129 86,998
Investments - 227,874 -
Loans and other financial
assets 5,234 5,284 5,212
Right of use asset 6,018 - 7,324
------------- ------------- ---------------
10,565,075 8,118,037 10,313,256
------------- ------------- ---------------
Current assets
Trade and other receivables 201,572 56,995 167,261
Cash and cash equivalents 789,310 1,229,606 1,124,062
------------- ------------- ---------------
990,882 1,286,601 1,291,323
------------- ------------- ---------------
TOTAL ASSETS 11,555,957 9,404,638 11,604,579
============= ============= ===============
EQUITY
Shareholders' equity
Share capital 4 6,022,446 5,663,072 6,022,446
Share premium 20,824,009 19,266,271 20,824,009
Merger Reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share based payment
reserve 732,185 652,487 732,185
Translation reserve (1,170,250) (1,049,950) (1,291,068)
Accumulated losses (15,770,476) (15,534,988) (15,578,933)
------------- ------------- ---------------
Total Equity 10,822,065 9,181,043 10,892,790
------------- ------------- ---------------
Non-controlling interests 365,469 (160,749) 326,555
------------- ------------- ---------------
TOTAL EQUITY 11,187,534 9,020,294 11,219,345
------------- ------------- ---------------
LIABILITIES
Current liabilities
Trade and other payables 229,412 192,139 242,885
Grant income 132,833 192,205 134,877
Lease Liability 6,178 - 7,472
------------- ------------- ---------------
TOTAL LIABILITIES 368,423 384,344 385,234
------------- ------------- ---------------
TOTAL EQUITY AND LIABILITIES 11,555,957 9,404,638 11,604,579
============= ============= ===============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
(Unaudited) (Unaudited) (Unaudited)
As at As at As at
31 March 31 March 31 December
2020 2019 2019
GBP GBP GBP
ASSETS
Non-current assets
Investments 1,777,988 732,988 1,697,988
Loans and other financial
assets 9,078,455 8,396,593 8,989,451
10,856,443 9,129,581 10,687,439
------------- ------------- -------------
Current assets
Trade and other receivables 32,278 24,046 23,260
Cash and cash equivalents 679,445 1,155,768 978,514
------------- -------------
711,723 1,179,814 1,001,774
------------- ------------- -------------
TOTAL ASSETS 11,568,166 10,309,395 11,689,213
============= ============= =============
EQUITY
Shareholders' equity
Share capital 6,022,446 5,663,072 6,022,446
Share premium 20,824,009 19,266,271 20,824,009
Merger Reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share option reserve 732,185 652,487 732,185
Accumulated losses (16,455,799) (15,735,661) (16,298,859)
------------- ------------- -------------
TOTAL EQUITY 11,306,992 10,030,320 11,463,932
------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 128,341 279,075 90,404
Grant income 132,833 - 134,877
------------- -------------
TOTAL LIABILITIES 261,174 279,075 225,281
------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 11,568,166 10,309,395 11,689,213
============= ============= =============
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS TO 31 MARCH 2020
Share Share Merger Capital Share-based Translation Accumulated Total Non- Total
capital premium reserve contribution payment reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 5,663,072 19,266,271 137,700 46,451 612,465 (520,257) (15,311,933) 9,893,769 (160,587) 9,733,182
Loss for the
period - - - - - - (223,055) (223,055) (41) (223,096)
Foreign
exchange
translation - - - - - (529,693) - (529,693) (121) (529,814)
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
Total
comprehensive
loss - - - - - (529,693) (223,055) (752,748) (162) (752,910)
Transactions
with
owners
Equity-settled
share-based
payment
transactions - - - - 40,022 - - 40,022 - 40,022
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
At 31 March
2019
(Unaudited) 5,663,072 19,266,271 137,700 46,451 652,487 (1,049,950) (15,534,988) 9,181,043 (160,749) 9,020,294
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
Loss for the
period - - - - - - (43,945) (43,945) (161,666) (205,611)
Foreign
exchange
translation - - - - - (241,118) - (241,118) (23,367) (264,485)
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
Total
comprehensive
loss - - - - - (241,118) (43,945) (285,063) (185,033) (470,096)
Transactions
with
owners
Issue of share
capital 359,374 1,651,043 - - - - - - - 2,010,417
Issue costs - (93,305) - - - - - - - (93,305)
Equity-settled
share-based
payment
transactions - - - - 79,698 - - 79,698 - 79,698
Acquisition of
subsidiary - - - - - - - - 672,337 672,337
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
At 31 December
2019
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (1,291,068) (15,578,933) 10,892,790 326,555 11,219,345
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
Loss for the
period - - - - - - (191,543) (191,543) (25,799) (217,342)
Foreign
exchange
translation - - - - - 120,818 - 120,818 3,858 124,676
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
Total
comprehensive
loss - 120,818 (191,543) (70,724) (21,941) (92,666)
Transactions
with
owners
Investments by
Minority
interest - - - - - - - - 60,855 60,855
At 31 March
2020
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (1,170,250) (15,770,476) 10,822,065 365,469 11,187,534
---------- ----------- -------- ------------- ------------ ------------ ------------- ----------- ------------ -----------
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS TO 31 MARCH 2020
Share capital Share Merger Capital Share-based Accumulated Total
premium reserve contribution payment losses
reserve reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 January 2019 5,663,072 19,266,271 137,700 46,451 612,465 (15,535,429) 10,190,530
Loss for the period - - - - - (200,232) (200,232)
Total comprehensive
loss - - - - - (200,232) (200,232)
Transactions with
owners
Equity-settled
share-based
payment
transactions - - - - 40,022 - 40,022
-------------- ----------- --------- -------------- ------------ ------------- -----------
At 31 March 2019
(Unaudited) 5,663,072 19,266,271 137,700 46,451 652,487 (15,735,661) 10,030,320
-------------- ----------- --------- -------------- ------------ ------------- -----------
Loss for the period - - (563,198) (563,198)
Total comprehensive
loss - - (563,198) (563,198)
Transactions with
owners
Issue of share
capital 359,374 1,651,043 - - - - 2,010,417
Issue costs - (93,305) - - - - (93,305)
Equity-settled
share-based
payment
transactions - - - - 79,698 - 79,698
At 31 December 2019
(Unaudited)
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (16,298,859) 11,463,932
-------------- ----------- --------- -------------- ------------ ------------- -----------
Loss for the period - - - - - (156,940) (156,940)
Total comprehensive
loss - - - - - (156,940) (156,940)
At 31 March 2020
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (16,455,799) 11,306,992
-------------- ----------- --------- -------------- ------------ ------------- -----------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE
THREE MONTHS TO 31 MARCH 2020
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 unaudited financial
statements for the year ended 31 December 2019 except as noted
below.
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
31 March 2019 and twelve 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 March 2020 is
unaudited and has not been reviewed by the auditors. The audit of
the financial information for the year ended 31 December 2019 has
not yet been completed and therefore the financial information is
considered unaudited until the approval of the audited financial
statements. 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. Share Capital
(Unaudited) (Unaudited) (Unaudited)
31 March 31 March
2020 2019 31 Dec 2019
GBP GBP GBP
Allotted, issued and fully paid
Ordinary shares of 1p each
6,022,446 5,663,072 6,022,446
----------- ----------- --------------
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2019 566,307,254
Issued during the period -
------------
Balance at 31 March 2019 566,307,254
Issued during the period 35,937,418
------------
Balance at 31 December 2019 602,244,672
Issued during the period -
------------
Balance at 31 March 2020 602,244,672
------------
4 . Intangible Assets: Group
Exploration costs As at 31 As at 31
March December
2020 2019
(Unaudited) (Unaudited)
GBP GBP
Cost
At 1 January 10,213,722 8,285,547
Additions for the year 64,201 748,354
Additions arising from the
step-up in interest in Vardar 20,854 1,962,455
Foreign exchange movements 128,409 (771,914)
Impairment - (10,720)
10,427,186 10,213,722
============ ============
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at
31 31
March December
2020 2019
(Unaudited) (Unaudited)
GBP GBP
Project Country
Kallak Sweden 6,719,487 6,675,124
Åtvidaberg Sweden 349,986 345,978
Ågåsjiegge Sweden 16,739 15,568
Pitkäjärvi Finland 1,165,449 1,058,078
Joutsijärvi Finland 20,933 19,095
Rääpysjärvi Finland 41,934 39,905
Karhunmäki Finland 33,568 24,078
Merivaara Finland 22,817 17,846
Polvela Finland 33,201 31,316
Tammijärvi Finland 25,822 24,278
Mitrovica Kosovo 1,407,933 1,382,845
Viti Kosovo 589,318 579,612
10,427,186 10,213,722
============ ============
Total Group exploration costs of GBP10,427,186 are currently
carried at cost in the financial statements. No impairment has been
recognised during the year, (2019: Sala GBP10,720).
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 March 2020 as an intangible exploration licence with a carrying
value of GBP6,719,487. 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.
5. 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
QRFQVLFLBELXBBB
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