TIDMBEM

RNS Number : 9492J

Beowulf Mining PLC

27 August 2021

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

27 August 2021

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Financial Results for the Period Ended 30 June 2021

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces its unaudited financial results for the six months ended 30 June 2021.

Overview of Activities in the Quarter

-- On 20 April 2021, Beowulf published a letter that the Company's Chairman, Sven Otto Littorin, had sent to Minister Baylan, Sweden's Minister of Enterprise and Innovation, concerning the Company's Kallak Iron Ore Project ("Kallak" or the "Kallak Project") Exploitation Concession application. On 14 June 2021, the Company's CEO, Kurt Budge, sent a further letter regarding this matter.

-- On 19 May 2021, the Company co-sponsored, with Eurobattery Minerals AB, a webinar titled 'Hållbar Gruvnäring' (Sustainable Mining) in Stockholm aimed at educating stakeholders on the rapid increase in smart and green technologies and the demands this creates for new supply of innovation-critical metals and minerals.

The Swedish Government has set-up an inquiry aimed at ensuring a sustainable supply of innovation-critical metals and minerals from primary and secondary sources. It is recognised that sustainable and lasting access to innovation-critical metals and minerals is of great importance to Sweden, but at the same time, no new mine has been established in Sweden in over a decade.

-- On 25 May 2021, the Company announced the results of a Mineral Resource Estimate ("MRE") Upgrade for the Kallak Project in Sweden; an additional 19 million tonnes ("Mt") of iron mineralisation, a 12.5 per cent resource increase, giving a Measured and Indicated Resource of 132 Mt grading 27.8 per cent iron ("Fe") and an Inferred Mineral Resource of 39 Mt grading 27.1 per cent Fe.

-- On 8 June 2021, via the Swedish Government, the Company received a copy of a letter written by UNESCO, dated 2 June 2021, with its comments on Beowulf's application for an Exploitation Concession for Kallak. On 9 June 2021, the Company updated the market with its preliminary response to UNESCO's findings.

-- On 10 June 2021, Beowulf's wholly-owned Finnish Subsidiary Oy Fennoscandian Resources Ab ("Fennoscandian") was granted EUR791,000 by Business Finland, the equivalent of 50 per cent of a three-year EUR1.6 million budget for Fennoscandian's 'Spheronisation and Purification of Natural Graphite for the European Lithium-Ion Battery Market' project. Sufficient funding will be made available from Beowulf to enable Fennoscandian to fund the balance of the project budget.

Fennoscandian has with immediate effect changed its name to Grafintec Oy.

-- Beowulf announced that further to the UNESCO letter dated 2 June 2021 and the CEO's letter to Minister Baylan dated 14 June 2021, on 18 June 2021 the Ministry of Enterprise (the "Ministry") and Innovation invited the Company to submit any further comments regarding the UNESCO letter to the Ministry by 6 September 2021.

Post Period

-- On 5 July 2021, Beowulf announced there were 607,748,200 Swedish Depository Receipts representing 73.4 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

-- Beowulf announced, on 8 July 2021, the issue and allotment of 3,535,412 new ordinary shares of 1 pence each in the Company (the "Shares") to satisfy an exercise of share options held by Kurt Budge, CEO ("Share Options").

-- On 14 July 2021, Beowulf announced the award of a Mining Study contract to Carci Mining Consultants Limited ("Carci") for Kallak, to develop an open pit design and mining schedule based on the upgraded MRE.

-- Beowulf announced, on 2 August 2021, the Company had invested a further GBP100,000 in Vardar Minerals Ltd ("Vardar"). The investment increases the Company's ownership in Vardar from 48.4 per cent to approximately 49.4 per cent. Beowulf's investment is funding advance procurement of necessary support equipment for drilling planned for Autumn 2021.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"Beowulf has a busy back end of the year to look forward to.

"We will be submitting our comments to the Swedish Government regarding the UNESCO letter on Kallak. Given Minister Baylan's words in recent months about a decision once UNESCO had responded, the acceleration of fossil-free steel making in Sweden and the continued need for investment and new jobs in the north of Sweden, we remain optimistic that a decision will be 'forthcoming'.

"On the back of an upgraded resource at Kallak, we have invested again and now await the results of the Mining Study, which will support discussions with The Swedish Transport Agency (Trafikverket), the Inlandsbanan (the Inland Railway) and emerging fossil-free steel producers in Norrbotten, such as H2 Green Steel.

"In Finland, Fennoscandian's success with the grant of EUR791,000 by Business Finland is a tremendous boost and we look forward to applying these funds to our investment programmes especially the further development of our partnership with Epsilon Advanced Materials and the establishment of a Strategic Processing Hub in Finland. We will provide an update on developments in the next couple of months.

"Finally, we are looking forward to permits being renewed and the start of an intensive drilling campaign in Kosovo this Autumn."

Financials

   --           The consolidated loss increased from H1 2020 at GBP394,475 to H1 2021 of GBP714,871. 

-- The underlying consolidated administrative costs of GBP718,293 for H1 2021 increased by GBP315,139 compared to the administrative cost of GBP403,154 for H1 2020. The variance is largely attributable to the foreign currency loss of GBP200,765 (2020: GBP5,395), this is primarily due to the retranslation of cash balances held in SEK, combined with an increase in directors' remuneration and social security costs (GBP17,424), consultancy (GBP69,521), and research costs incurred in Fennoscandian relating to downstream processing of (GBP19,569).

-- Consolidated basic and diluted loss per share for the period ended 30 June 2021 was 0.08 pence (H1 2020: profit of 0.06 pence).

-- GBP4,408,639 in cash held at the period end (H1 2020: GBP620,940). The higher level of cash is attributable to fundraising activities completed in December 2020 which raised approximately GBP7.4 million before expenses.

-- The cumulative translation losses held in equity attributable to the holders of the parent increased by GBP481,698 in the period ended 30 June 2021 to GBP938,970 (31 December 2020: gain of GBP592,079). Much of the Company's exploration costs are in Swedish Krona and Euro which has weakened against the pound since 31 December 2020.

-- At 30 June 2021, there were 607,748,200 Swedish Depository Receipts issued representing 73.4 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK as AIM securities.

Operational

Finland

-- On 10 June 2021, Fennoscandian, was granted EUR791,000 by Business Finland, the equivalent of 50 per cent of a three-year EUR1.6 million budget for Fennoscandian's 'Spheronisation and Purification of Natural Graphite for the European Lithium-Ion Battery Market' project. Sufficient funding will be made available from Beowulf to enable Fennoscandian to fund the balance of the project budget.

This work is part of the BATCircle 2.0 (Finland-based Circular Ecosystem of Battery Metals) consortium which has been granted EUR10.8 million by Business Finland as part of a total funding budget of EUR19.3 million.

Finland has high-quality natural flake graphite resources, and the opportunity exists to create a sustainable value chain for anode material markets in Finland and Europe.

The overall objectives of the project are to develop a chemical free technological solution, utilising renewable energy, to spheronise and purify graphite within a Finnish industrial ecosystem, for use in manufacturing lithium-ion battery anodes.

Sweden

-- On 25 May 2021, the Company announced the results of a MRE Upgrade for the Kallak Project, which was prepared by Baker Geological Services Ltd.

An additional 19 Mt of iron ore mineralisation, a 12.5 per cent resource increase, was identified, with a Measured and Indicated Resource of 132 Mt grading 27.8 per cent Fe and an Inferred Mineral Resource of 39Mt grading 27.1 per cent Fe.

Three distinct areas of elevated copper and gold mineralisation have also been identified in drilling, running the length of the Kallak Project area, with elevated assay intersections predominantly lying on the boundaries of the iron mineralisation.

Copper grades reach up to 1.6 per cent, although this was the maximum possible value using the assay method employed at the time.

Gold grades reach up to 0.75 grammes per tonne from testwork completed in April 2021 on those pulp samples where the copper assay was more than 0.1 per cent.

In total, 30 samples were sent for gold assay with only five samples being below detection limit.

-- On 8 June 2021, via the Swedish Government, the Company received a copy of a letter written by UNESCO, dated 2 June 2021, with its comments on Beowulf's application for an Exploitation Concession for Kallak.

Comments from UNESCO suggested that:

-- the Swedish Government seek a revised and extended In-Depth Assessment in assessing the impact of the proposed development [of the Kallak Iron Ore Project] on a World Heritage Property [Laponia] prior to any decision being taken to approve the mining exploitation;

-- that the role of the Sami Parliament is relevant to the assessment of the impact of the proposed development on the World Heritage property; and

-- that the Swedish Government should also consider how the practice of reindeer husbandry outside the property and directly related to reindeer husbandry within the property will be protected.

-- On 9 June 2021, the Company's CEO, Kurt Budge, wrote to Minister Baylan regarding the UNESCO letter.

Selected extracts from the letter are provided below:

'On 8 June 2021, Beowulf Mining was notified by the Finansinspektionen, Sweden's financial supervisory authority, whose role is to promote stability and efficiency in Sweden's financial system as well as to ensure sustainability and an effective consumer protection, of UNESCO's letter regarding our Kallak Iron Ore Project ("Kallak") dated 2 June 2021.

Finansinspektionen wrote that UNESCO's letter had been in the hands of members of the Swedish public (including elected Sami officials) for several days, with associated posts on social media.

At the time, Beowulf had not received a copy of UNESCO's letter, but as the information was already in the public domain, with no explanation of its significance the market reacted strongly, left to draw its own conclusions. The Company's share price fell over 10 per cent last week.

During the last six years, there have been several occasions where 'market sensitive' information has been made public before Beowulf has been informed. Each time damage has been caused to the Company's share price, individual's investments, including Swedish shareholders who now own 72 per cent of the Company, and Sweden's reputation as a country in which to do business.

It is the Company's experience that often public agencies do not understand what constitutes 'market sensitive' information or recognise the obligations of a public company to its shareholders and the equity markets. Once again, the Company is left to deal with the aftermath.

It is inaccurate to say that the Kallak case is complex because of competing interests, as an excuse for delaying a decision. National interests are a distraction. The evidence shows that mining and reindeer herding coexist across Sweden, in the very few places you actually find an operating mine, as there are only 12 in the Country.

Beowulf has satisfied the procedural and legal requirements to be granted the Concession and has the right to progress with its investment, project development and environmental permitting. This has been the case since Bergsstaten recommended to the Government that the Concession be awarded over 5.5 years ago.

We could have been in production now. With benchmark iron ore prices at over $200/tonne, Jokkmokk should have already been on the road to realising its economic transformation. The opportunity cost to stakeholders in Jokkmokk and Beowulf shareholders is considerable.'

Beowulf also announced that further to the UNESCO letter dated 2 June 2021 and the CEO's letter to Minister Baylan dated 14 June 2021, on 18 June 2021 the Ministry of Enterprise and Innovation (the "Ministry") invited the Company to submit any comments regarding the UNESCO letter to the Ministry by 6 September 2021.

-- On 14 July 2021, Beowulf announced the award of a Mining Study contract to Carci Mining Consultants for Kallak, to develop an open pit design and mining schedule based on the upgraded MRE.

The Mining Study will provide better definition for mining equipment selection, and product types, production volumes and specifications, which will support project development, discussions with The Swedish Transport Agency (Trafikverket), the Inlandsbanan (the Inland Railway) and emerging fossil-free steel producers in Norrbotten.

Corporate

-- On 5 July 2021, Beowulf announced there were 607,748,200 Swedish Depository Receipts representing 73.4 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

-- Beowulf announced, on 8 July 2021, the issue and allotment of 3,535,412 new ordinary shares of 1 pence each in the Company (the "Shares") to satisfy an exercise of share options held by Kurt Budge, CEO ("Share Options").

Kurt Budge exercised Share Options in respect of 9,000,000 shares, originally granted on 17 July 2015. The Share Options, as originally granted, had an exercise price of 1.66 pence per share and were due to be exercised no later than 17 July 2020 but the Company was in a Close Period associated with last year's Capital Raising. The exercise period was extended, in July 2020, to 17 July 2021 in order to allow Mr Budge the opportunity to exercise the Share Options, which because of the time extension became non-tax advantaged. The Company opted, with Kurt Budge abstaining from this decision, to net settle the share option exercise with Kurt Budge paying the nominal value of the Shares being issued.

ESG

-- Beowulf is a strong supporter of the Sustainable Development Goals ("SDGs") and is currently reviewing how the Company can best proactively support their implementation in our areas of influence.

-- The Company has adopted the following Disclosure Topics listed by the Sustainability Accounting Standards Board for the Metals and Mining sector ( https://www.sasb.org/standards/ ) as material to the Company's stakeholders:

   --      Energy Management including Green House Gas Emissions; 
   --      Water Management; 
   --      Biodiversity Impacts; 
   --      Rights of Indigenous Peoples; 
   --      Community Relations; and 
   --      Business Ethics and Transparency. 

-- As at this time Beowulf has no active mining operations, these Disclosure Topics will be integrated into the Company's policies, corporate strategy, project development plans and management systems.

-- As the Company moves forward with its ESG agenda, it will be transparent in its communications, the progress it is making, and sustainability results.

   --           The Company is currently working on a Human Rights Policy. 

Enquiries:

 
 
   Beowulf Mining plc 
 Kurt Budge, Chief Executive     Tel: +44 (0) 20 7583 
  Officer                         8304 
 SP Angel 
  (Nominated Adviser & Broker) 
 Ewan Leggat / Stuart Gledhill   Tel: +44 (0) 20 3470 
  / Adam Cowl                     0470 
 Blytheweigh 
 Tim Blythe / Megan Ray          Tel: +44 (0) 20 7138 
                                  3204 
 

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecast .

About Beowulf Mining plc

Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and development company, listed on the AIM market of the London Stock Exchange and the Spotlight Exchange in Sweden.

Beowulf's purpose to be a responsible and innovative company that creates value for our shareholders, wider society and the environment, through sustainably producing critical raw materials, which includes iron ore, graphite and base metals, needed for the transition to a Green Economy and to address the Climate Emergency.

The Company's asset portfolio is diversified by commodity, geography and the development stage of its various projects.

The Company's most advanced project is the Kallak iron ore asset in northern Sweden. A potential 389 million tonne resource which can produce a 'market leading' concentrate of 71.5% iron content and is a potential source of supply for fossil-free steel production in Sweden for decades to come.

Fennoscandian Resources ("Fennoscandian"), a wholly-owned subsidiary, is pursuing a strategy to develop a resource and production base of graphite that can provide security of supply and contribute to Finland's ambitions of achieving battery manufacturing self-sufficiency, focusing on both natural flake graphite production and a Circular Economy/recycling strategy to produce high-value graphite products. The Company is also developing its knowledge in processing and manufacturing value-added graphite products, including anode material for lithium-ion batteries.

Since Fennoscandian was acquired by Beowulf in January 2016, the Company has invested approximately EUR2.2 million in graphite exploration, resource development, metallurgical testwork and the assessment of market applications for graphite supplied from its Aitolampi project, including lithium-ion battery applications.

Fennoscandian has recently signed a Memorandum of Understanding ("MoU") with Epsilon Advance Materials Limited ("EAMPL"). The MoU enables Fennoscandian to build its downstream capability, collaborating with a strong and innovative technology/processing partner, and for EAMPL to firmly establish itself in Finland, as a market-entry point for supplying pre-cursor anode material into Europe. The MoU addresses the development of a strategic processing hub for both natural flake and recycled graphite to be located in Finland.

In addition, a Scoping Study contract for the Aitolampi graphite project has been awarded to AFRY Finland Oy. The purpose of the Scoping Study is to verify the robustness of the work completed by Fennoscandian, and to provide a roadmap for the next project development stage, most likely a Pre-feasibility Study. The output of the Scoping Study will enable Fennoscandian to share information on the Aitolampi project and communicate with the local community and other important stakeholders.

In Kosovo, the Company owns approximately 4 9 . 4 % of Vardar Minerals ("Vardar"), which is focus on exploration in the Tethyan Belt, a major orogenic metallogenic province for gold and base metals. Vardar is delivering exciting results for its Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold. It also has the Viti licence which is showing potential for copper-gold porphyry mineralisation. With Beowulf's support, Vardar is focused on making a discovery.

Kallak is the foundation asset of the Company, but with Vardar and Fennoscandian, the Company has many opportunities to grow, each business area displaying strong prospects.

BEOWULF MINING PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                                        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)     (Audited) 
                                           3 months      3 months      6 months      6 months     12 months 
                                           ended 30      ended 30      ended 30      ended 30      ended 31 
                                               June          June          June          June      December 
                                                                                                       2020 
                                               2021          2020          2021          2020 
 
                                                                                                        GBP 
                                Notes           GBP           GBP           GBP           GBP 
 Continuing operations 
 
 Administrative expenses                  (190,460)     (185,503)     (718,293)     (403,154)   (1,005,547) 
 Impairment of exploration 
  costs                                           -             -             -             -      (98,799) 
 
 Operating (Loss)                         (190,460)     (185,503)     (718,293)     (403,154)   (1,104,346) 
 
 
 Finance costs                                 (70)          (73)          (88)         (161)     (203,576) 
 Finance income                                  21           188            47           583           594 
 Grant Income                                 2,216         8,257         3,463         8,257        12,637 
                                       ------------  ------------  ------------  ------------  ------------ 
 (Loss) before and after 
  taxation                                (188,293)     (177,131)     (714,871)     (394,475)   (1,294,691) 
                                       ============  ============  ============  ============  ============ 
 
 Loss attributable to: 
 Owners of the parent                     (170,213)     (161,650)     (667,848)     (353,195)   (1,128,512) 
 Non-controlling interests                 (18,080)      (15,481)      (47,023)      (41,280)     (166,179) 
 
                                          (188,293)     (177,131)     (714,871)     (394,475)   (1,294,691) 
                                       ============  ============  ============  ============  ============ 
 
 Loss per share attributable 
  to the owners of the 
  parent: 
 Basic and diluted (pence)        3          (0.02)        (0.03)        (0.08)        (0.06)        (0.19) 
 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                                         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)      (Audited) 
                                            3 months      3 months      6 months      6 months      12 months 
                                               ended         ended         ended         ended 
                                             30 June       30 June       30 June       30 June          ended 
                                                2021          2020          2021          2020    31 December 
                                                                                                         2020 
 
                                                 GBP           GBP           GBP           GBP            GBP 
 
  (Loss) for the period 
   / year                                  (188,293)     (177,131)     (714,871)     (394,475)    (1,294,691) 
 Other comprehensive 
  (loss) / income 
 Items that may be reclassified 
  subsequently to profit 
  or loss: 
 
 Exchange (losses)/gain 
  arising on translation 
  of foreign operations                      142,452       495,684     (503,471)       620,360        854,020 
                                        ------------  ------------  ------------  ------------  ------------- 
 Total comprehensive 
  (loss) / income                           (45,841)       318,553   (1,218,342)       225,885      (440,671) 
                                        ============  ============  ============  ============  ============= 
 
 Total comprehensive 
  (loss) / income attributable 
  to: 
 Owners of the parent                       (26,158)       309,608   (1,149,546)       238,883      (294,716) 
 Non-controlling interests                  (19,683)         8,943      (68,796)      (12,998)      (145,955) 
                                            (45,841)       318,553   (1,218,342)     (225,885)      (440,671) 
                                        ============  ============  ============  ============  ============= 
 
 
 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                                        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)      (Audited) 
                                           3 months      3 months      6 months      6 months      12 months 
                                              ended         ended         ended         ended          ended 
                                            30 June       30 June       30 June       30 June    31 December 
                                                                                                        2020 
                                               2021          2020          2021          2020 
                                                                                                         GBP 
                                Notes           GBP           GBP           GBP           GBP 
 Continuing operations 
 
 Administrative expenses                  (203,114)     (146,276)     (686,862)     (303,612)      (869,853) 
 
 Operating Loss                           (203,114)     (146,276)     (686,862)     (303,612)      (869,853) 
 
 
 Finance income                                  21           188            47           583            594 
 Loss before and after 
  taxation and total 
  comprehensive loss                      (203,093)     (146,088)     (686,815)     (303,029)      (869,259) 
                                       ============  ============  ============  ============  ============= 
 
 Loss per share attributable 
  to the owners of 
  the parent: 
 Basic and diluted 
  (pence)                         3          (0.02)        (0.02)        (0.08)        (0.05)         (0.14) 
 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

 
                                          (Unaudited)    (Unaudited)      (Audited) 
                                                As at          As at          As at 
                                              30 June        30 June    31 December 
                                                 2021           2020           2020 
                                                  GBP            GBP            GBP 
 ASSETS                          Notes 
 Non-current assets 
 Intangible assets                 5       11,189,370     10,868,864     11,371,916 
 Property, plant and 
  equipment                                   120,125        132,921        145,094 
 Loans and other financial 
  assets                                        5,334          5,394          5,468 
 Right of use asset                            10,395          4,915          1,937 
                                        -------------  -------------  ------------- 
 
                                           11,325,224     11,012,094     11,524,415 
                                        -------------  -------------  ------------- 
 
 Current assets 
 Trade and other receivables                  128,834         92,619      1,566,848 
 Cash and cash equivalents                  4,408,639        620,940      4,329,414 
                                        -------------  -------------  ------------- 
 
                                            4,537,473        713,559      5,896,262 
                                        -------------  -------------  ------------- 
 TOTAL ASSETS                              15,862,697     11,725,653     17,420,677 
                                        =============  =============  ============= 
 
 
 EQUITY 
 Shareholders' equity 
 Share capital                     4        8,281,751      6,022,446      8,281,751 
 Share premium                             24,665,977     20,824,009     24,684,737 
 Merger Reserve                               137,700        137,700        137,700 
 Capital contribution 
  reserve                                      46,451         46,451         46,451 
 Share-based payment 
  reserve                                     732,185        732,185        732,185 
 Translation reserve                        (938,970)      (698,989)      (457,272) 
 Accumulated losses                      (17,818,139)   (16,155,211)   (17,083,185) 
                                        -------------  -------------  ------------- 
 
 Total Equity                              15,106,955     10,908,591     16,342,367 
                                        -------------  -------------  ------------- 
 
 Non-controlling interests                    392,422        374,411        394,113 
                                        -------------  -------------  ------------- 
 TOTAL EQUITY                              15,499,377     11,283,002     16,736,480 
                                        -------------  -------------  ------------- 
 
   LIABILITIES 
 Current liabilities 
 Trade and other payables                     218,397        284,489        538,772 
 Grant income                                 134,497        153,086        143,399 
 Lease Liability                               10,426          5,076          2,026 
                                        -------------  -------------  ------------- 
 
 TOTAL LIABILITIES                            363,320        442,651        684,197 
                                        -------------  -------------  ------------- 
 
 TOTAL EQUITY AND LIABILITIES              15,862,697     11,725,653     17,420,677 
                                        =============  =============  ============= 
 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

 
                                   (Unaudited)   (Unaudited)      (Audited) 
                                         As at         As at          As at 
                                       30 June       30 June    31 December 
                                          2021          2020           2020 
                                           GBP           GBP            GBP 
 ASSETS 
 Non-current assets 
 Investments                         2,277,988     1,777,988      2,077,988 
 Loans and other financial 
  assets                             9,969,134     9,157,028      9,341,315 
 Property, plant and 
  equipment                              1,297             -          1,483 
 
                                    12,248,419    10,935,016     11,420,786 
                                 -------------  ------------  ------------- 
 
 Current assets 
 Trade and other receivables            40,507        23,455      1,476,755 
 Cash and cash equivalents           3,918,655       452,184      4,241,426 
                                                ------------  ------------- 
 
                                     3,959,162       475,639      5,718,181 
                                 -------------  ------------  ------------- 
 TOTAL ASSETS                       16,207,581    11,410,655     17,138,967 
                                 =============  ============  ============= 
 
 
 EQUITY 
 Shareholders' equity 
 Share capital                       8,281,751     6,022,446      8,281,751 
 Share premium                      24,665,977    20,824,009     24,684,737 
 Merger Reserve                        137,700       137,700        137,700 
 Capital contribution 
  reserve                               46,451        46,451         46,451 
 Share-based payment 
  reserve                              732,185       732,185        732,185 
 Accumulated losses               (17,854,933)   (16,601,88)   (17,168,118) 
                                 -------------  ------------  ------------- 
 
 TOTAL EQUITY                       16,009,131    11,160,903     16,714,706 
                                 -------------  ------------  ------------- 
 
   LIABILITIES 
 Current liabilities 
 Trade and other payables               63,953        96,666        280,862 
 Grant income                          134,497       153,086        143,399 
                                                ------------  ------------- 
 
 TOTAL LIABILITIES                     198,450       249,752        424,261 
                                 -------------  ------------  ------------- 
 
 TOTAL EQUITY AND LIABILITIES       16,207,581    11,410,655     17,138,967 
                                 =============  ============  ============= 
 

BEOWULF MINING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                      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 
   2020           6,022,446    20,824,009   137,700         46,451       732,185   (1,291,068)   (15,781,161)    10,690,562       326,555    11,017,117 
 
 Loss for the 
  period                                                                                            (353,195)     (353,195)      (41,280)     (394,475) 
 Foreign 
  exchange 
  translation                                                                          592,079                      592,079        28,281       620,360 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 Total 
 comprehensive 
 loss 
                                                                                       592,079      (353,195)       238,884      (12,999)       225,885 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 Transactions 
 with 
 owners 
 Step 
  acquisition 
  of Subsidiary           -             -         -              -             -             -       (20,855)      (20,855)        60,855        40,000 
 
 
 
   At 30 June 
   2020 
   (Unaudited)    6,022,446    20,824,009   137,700         46,451       732,185     (698,989)   (16,155,211)    10,908,591       374,411    11,283,002 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 
 Loss for the 
  period                  -             -         -              -             -             -      (775,317)     (775,317)     (124,899)     (900,216) 
 Foreign 
  exchange 
  translation             -             -         -              -             -       241,171              -       241,171       (8,057)       233,660 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 Total 
  comprehensive 
  loss                    -             -         -              -             -       241,171      (755,317)     (533,600)     (132,956)     (666,556) 
 
 Transactions 
 with 
 owners 
 Issue of share 
  capital         2,259,305     5,165,060         -              -             -             -              -     7,424,365             -     7,424,365 
 Issue costs              -   (1,304,332)         -              -             -             -              -   (1,304,332)             -   (1,304,332) 
 Issue of 
 shares                   -             -         -              -             -             -              -             -             -             - 
 Step 
  acquisition 
  of Subsidiary           -             -         -              -             -             -      (152,657)     (152,657)       152,658             1 
 
 At 31 December 
  2020 
  (Audited)       8,281,751    24,684,737   137,700         46,451       732,185     (457,272)   (17,083,185)    16,342,367       394,113    16,736,480 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 
 Loss for the 
  period                  -             -         -              -             -             -      (667,848)     (667,848)      (47,023)     (714,871) 
 Foreign 
  exchange 
  translation             -             -         -              -             -     (481,698)              -     (481,698)      (21,774)     (503,472) 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 Total 
  comprehensive 
  loss                    -             -         -              -             -     (481,698)      (667,848)   (1,149,546)      (68,797)   (1,218,343) 
 
 Transactions 
 with 
 owners 
 Issue costs              -      (18,760)         -              -             -             -              -      (18,760)             -      (18,760) 
 Issue of 
 shares                   -             -         -              -             -             -              -             -             -             - 
 Step 
  acquisition 
  of Subsidiary           -             -         -              -             -             -       (67,106)      (67,106)        67,106             - 
 At 30 June 
  2021 
  (Unaudited)     8,281,751    24,665,977   137,700         46,451       732,185     (938,970)   (17,818,139)    15,106,955       392,422    15,499,377 
                 ----------  ------------  --------  -------------  ------------  ------------  -------------  ------------  ------------  ------------ 
 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                         Share          Share      Merger        Capital   Share-based      Accumulated          Total 
                       capital        premium     reserve   contribution       payment           losses 
                                                                 reserve       reserve 
                           GBP            GBP         GBP            GBP           GBP              GBP            GBP 
 
   At 1 January 
   2020              6,022,446     20,824,009     137,700         46,451       732,185     (16,298,859)     11,463,932 
 
 Loss for the 
  period                     -              -           -              -             -        (303,029)      (303,029) 
 Total 
 comprehensive 
 loss 
                             -              -           -              -             -        (303,029)      (303,029) 
 
   At 30 June 
   2020 
   (Unaudited)       6,022,446     20,824,009     137,700         46,451       732,185     (16,601,888)     11,160,903 
                 -------------  -------------  ----------  -------------  ------------  ---------------  ------------- 
 
 
 Loss for the 
  period                     -              -           -              -             -        (566,230)      (566,320) 
 Total 
  comprehensive 
  loss                       -              -           -              -             -        (566,320)      (566,320) 
 
 Transactions 
 with owners 
 Issue of share 
  capital            2,259,305      5,165,060           -              -             -                -      7,424,365 
 Issue costs                 -    (1,304,332)           -              -             -                -    (1,304,332) 
 
 At 31 December 
  2020 
  (Audited) 
  (Unaudited)        8,281,751     24,684,737     137,700         46,451       732,185     (17,168,118)     16,714,706 
                 -------------  -------------  ----------  -------------  ------------  ---------------  ------------- 
 
 Loss for the 
  period                     -              -           -              -             -        (686,815)      (686,815) 
 Total 
  comprehensive 
  loss                       -              -           -              -             -        (686,815)      (686,815) 
 
 Transactions 
 with owners 
 Issue costs                 -       (18,760)           -              -             -                -       (18,760) 
                 -------------  -------------  ----------  -------------  ------------  ---------------  ------------- 
 At 30 June 
  2021 
  (Unaudited)        8,281,751     24,665,977     137,700         46,451       732,185     (17,854,933)     16,009,131 
                 -------------  -------------  ----------  -------------  ------------  ---------------  ------------- 
 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                                             (Unaudited)   (Unaudited)     (Audited) 
                                                              6 months 
                                             6 months to            to    Year ended 
                                                               30 June        31 Dec 
                                            30 June 2021          2020          2020 
                                                     GBP           GBP           GBP 
 
 Cash flows from operating activities 
 Loss before income tax                        (714,871)     (394,475)   (1,294,691) 
 Depreciation charges                             18,842        13,108        35,608 
 Impairment of exploration costs                       -             -        98,799 
 Finance income                                     (47)         (583)         (594) 
 Finance cost                                         88           161       203,576 
 Grant income                                    (3,463)       (8,257)      (12,637) 
 Gain on sale of fixed assets                   (17,518)             -             - 
 Shares in Lieu                                        -             -         2,806 
 Amortisation of right-of-use asset                2,819         2,840         5,777 
 Unrealised foreign exchange                     194,916             -      (12,590) 
 Decrease / (increase)in trade 
  and other receivables                           43,397        78,377       (2,203) 
 (Decrease) / increase in trade 
  and other payables                           (314,929)        31,771        97,623 
                                           -------------  ------------  ------------ 
 
 Net cash used in operating activities         (790,766)     (277,058)     (878,526) 
                                           -------------  ------------  ------------ 
 
 Cash flows from investing activities 
 Purchase of intangible fixed assets           (311,296)     (245,440)     (622,501) 
 Purchase of property, plant and 
  equipment                                      (1,638)      (58,446)      (89,436) 
 Additional investment in Vardar                       -        40,000        40,000 
 Grant receipt                                         -        34,925        25,796 
 Proceeds from sale of fixed assets               22,397             -             - 
 Interest received                                    47           583           594 
                                           -------------  ------------  ------------ 
 
 Net cash used in investing activities         (290,490)     (228,378)     (645,547) 
                                           -------------  ------------  ------------ 
 
 Cash flows from financing activities 
 Proceeds from issue of shares                 1,392,081             -     4,941,065 
 Payment of share issue costs                   (18,760)             -   (1,113,348) 
 Lease principal and interest paid               (2,869)       (2,827)       (5,840) 
 Lease interest paid                                (88)         (161)         (255) 
 Proceeds from borrowings                              -             -       932,309 
 Interest paid                                         -             -      (93,935) 
                                           -------------  ------------  ------------ 
 
 Net cash from / (used in) financing 
  activities                                   1,370,364       (2,988)     4,659,996 
                                           -------------  ------------  ------------ 
 
 Increase / (Decrease) in cash 
  and cash equivalents                           289,108     (508,424)     3,135,923 
 Cash and cash equivalents at beginning 
  of period/year                               4,329,414     1,124,062     1,124,062 
 Effect of foreign exchange rate 
  changes                                      (209,833)         5,302        69,429 
                                           -------------  ------------  ------------ 
 
 Cash and cash equivalents at end 
  of period/year                               4,408,639       620,940     4,329,414 
 
 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS TO 30 JUNE 2021

 
                                        (Unaudited)   (Unaudited)     (Audited) 
                                           6 months      6 months 
                                                 to            to    Year ended 
                                            30 June       30 June        31 Dec 
                                               2021          2020          2020 
                                                GBP           GBP           GBP 
 
 Cash flows from operating 
  activities 
 Loss before income tax                   (686,815)     (303,029)     (869,259) 
 Expected credit losses                     145,498        30,803        72,069 
 Depreciation                                   185             -             - 
 Shares in Lieu                                   -             -         2,806 
 Finance income                                (47)         (583)         (594) 
 Finance costs                                    -             -       203,321 
 Unrealised foreign exchange                195,788             -        16,865 
                                       ------------  ------------  ------------ 
                                          (345,391)     (272,809)     (574,792) 
 
 Decrease / (increase)in trade 
  and other receivables                      43,418         (196)      (61,415) 
 (Decrease) / increase in trade 
  and other payables                      (216,159)         6,264         (524) 
                                       ------------  ------------  ------------ 
 
 Net cash used in operating 
  activities                              (518,132)     (266,741)     (636,731) 
                                       ------------  ------------  ------------ 
 
 
 Cash flows from investing 
  activities 
 Loans to subsidiaries                    (776,544)     (215,097)     (448,151) 
 Grant receipt                                    -        34,925        25,796 
 Acquisition of subsidiary                (200,000)      (80,000)     (380,000) 
 Interest received                               47           583           594 
 Purchase of fixed assets                         -             -       (1,483) 
                                       ------------  ------------  ------------ 
 
 Net cash used in investing 
  activities                              (976,497)     (259,589)     (803,244) 
                                       ------------  ------------  ------------ 
 
 
 Cash flows from financing 
  activities 
 Proceeds from issue of shares            1,392,081             -     4,941,065 
 Payment of share issue costs              (18,760)             -   (1,113,348) 
 Proceeds from borrowing                          -             -       932,309 
 Interest paid                                    -             -      (93,935) 
                                       ------------  ------------  ------------ 
 
 Net cash from financing activities       1,373,321             -     4,666,091 
                                       ------------  ------------  ------------ 
 
 
 (Decrease) / increase in cash 
  and cash equivalents                    (121,308)     (526,330)     3,226,116 
 Cash and cash equivalents 
  at beginning of period/year             4,241,426       978,514       978,514 
 Effect of foreign exchange 
  rate changes                            (201,463)             -        70,526 
 Cash and cash equivalents 
  at end of period/year                   3,918,655       452,184     4,275,156 
                                       ------------  ------------  ------------ 
 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE SIX MONTHS TO 30 JUNE 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 in accordance with the provisions of the Companies Act 2006. 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 2020.

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 period ended 30 June 2020 is unaudited and has not been reviewed by the auditors. The financial information for the twelve months ended 31 December 2020 is an extract from the audited financial statements of the Group and Company. The auditor's report on the statutory financial statements for the year ended 31 December 2020 was unqualified and did not contain any statement under sections 498 (2) or (3) of the Companies Act 2006.

The financial statements are presented in GB Pounds Sterling. They are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets and liabilities has been applied.

Management have prepared cash flow forecasts confident that they are taking all necessary steps to ensure that the Group has the required cash to pursue it strategic objectives, an assertion supported by the significant cash available at the period end. They have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

3. Share Capital

 
                                   (Unaudited)   (Unaudited)     (Unaudited) 
                                  30 June 2021  30 June 2020     31 Dec 2020 
                                           GBP           GBP             GBP 
Allotted, issued and fully paid 
Ordinary shares of 1p each           8,281,751     6,022,446       8,281,751 
                                  ------------  ------------  -------------- 
 

The number of shares in issue was as follows:

 
                                     Number 
                                  of shares 
 Balance at 1 January 2020      602,244,672 
 Issued during the period                 - 
                               ------------ 
 Balance at 30 June 2020        602,244,672 
 Issued during the period       225,930,552 
                               ------------ 
 Balance at 31 December 2020    828,175,224 
 Issued during the period                 - 
                               ------------ 
 Balance at 30 June 2021        828,175,224 
                               ------------ 
 

4 . Intangible Assets: Group

 
 Exploration costs                 As at 30     As at 31 
                                       June     December 
                                       2021         2020 
                                (Unaudited)    (Audited) 
                                        GBP          GBP 
 Cost 
 At 1 January                    11,371,148   10,011,494 
 Additions for the year             311,296      612,062 
 Foreign exchange movements       (493,074)      847,159 
 Impairment                               -     (98,799) 
 
                                 11,189,370   11,371,916 
                               ============  =========== 
 

The net book value of exploration costs is comprised of expenditure on the following projects:

 
                                                       As at        As at 
                                                          30           31 
                                                        June     December 
                                                        2021         2020 
                                                 (Unaudited)    (Audited) 
                                                         GBP          GBP 
 Project                          Country 
 Kallak                            Sweden          7,293,021    7,533,388 
 Ågåsjiegge              Sweden                479            - 
 Åtvidaberg                   Sweden            376,551      393,303 
 Pitkäjärvi              Finland         1,410,645    1,333,114 
 Rääpysjärvi          Finland          47,667       47,053 
 Karhunmäki                     Finland          43,628       41,017 
 Merivaara                           Finland          36,746       36,965 
 Mitrovica                           Kosovo        1,343,738    1,387,030 
 Viti                                Kosovo          636,895      600,046 
                                                  11,189,370   11,371,916 
                                                ============  =========== 
 

Total Group exploration costs of GBP 11,189,370 are currently carried at cost in the financial statements. No impairment has been recognised during the period, (2020: Ågåsjiegge, Joutsijärvi, Polvela and Tammijärvi GBP 98,799 ).

Accounting estimates and judgements are continually evaluated and are based on a number of factors, including expectations of future events that are believed to be reasonable under the circumstances. Management are required to consider whether there are events or changes in circumstances that indicate that the carrying value of this asset may not be recoverable.

The most significant risk currently facing the Group is that it does not receive an Exploitation Concession for Kallak. The Company originally applied for the Exploitation Concession in April 2013 and throughout 2017, and since the year-end, management have actively sought to progress the application, engaging with the various government bodies and other stakeholders. These activities are summarised above.

Kallak is included in the condensed financial statements as at 30 June 2021 as an intangible exploration licence with a carrying value of GBP7,293,021. 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. Post balance sheet events

Beowulf announced, on 8 July 2021, the issue and allotment of 3,535,412 new ordinary shares of 1 pence each in the Company to satisfy an exercise of share options held by Kurt Budge, CEO.

Beowulf announced, on 2 August 2021, the Company had invested a further GBP100,000 in Vardar Minerals Ltd. The investment increases the Company's ownership in Vardar from 48.4 per cent to approximately 49.4 per cent. Beowulf's investment is funding advance procurement of necessary support equipment for drilling planned for Autumn 2021.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR VQLFLFVLBBBX

(END) Dow Jones Newswires

August 27, 2021 02:00 ET (06:00 GMT)

Beowulf Mining (LSE:BEM)
Historical Stock Chart
From Sep 2021 to Oct 2021 Click Here for more Beowulf Mining Charts.
Beowulf Mining (LSE:BEM)
Historical Stock Chart
From Oct 2020 to Oct 2021 Click Here for more Beowulf Mining Charts.