TIDMBEM
RNS Number : 8029T
Beowulf Mining PLC
29 November 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.
29 November 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 30 September
2021
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for
the nine months ended 30 September 2021.
Overview of Activities in the Quarter
-- 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 Kallak
North Mining Study contract to Carci Mining Consultant's ("Carci),
to develop an open pit design and mining schedule based on the
upgraded Mineral Resource Estimate ("MRE").
-- On 2 August 2021 the Company announced a further investment
of GBP100,000 in Vardar Minerals ("Vardar"), increasing the
Company's ownership of Vardar from 48.4 per cent to 49.4 per cent,
and funding advance procurement of necessary support equipment for
drilling.
-- On 31 August 2021, Beowulf submitted concluding comments to
Sweden's Ministry of Enterprise and Innovation on UNESCO's letter,
dated 2 June 2021, regarding the Kallak Iron Ore Project
("Kallak").
-- On 13 September 2021, the Company wrote a letter to Minister
Baylan, Sweden's Minister of Enterprise and Innovation at the time,
concerning the status of Beowulf's Kallak application.
Post Period
-- The Kallak North Mining Study was completed and shows that
the Kallak mine could produce approximately 2.7 million tonnes
("Mt") per annum of concentrate based on the existing resource for
Kallak North only and modelled over an initial 15 years. This
production rate is one scenario and given the forecast demand for
high quality iron ore being created by projects such as HYBRIT and
more specifically H2 Green Steel, there could well be a requirement
for a higher production rate.
-- In September 2021, the CEO visited Epsilon Carbon ("Epsilon")
in India, including its production facilities in Karnataka State.
During this visit, joint plans to develop an anode materials plant
in Finland were discussed.
-- The CEO visited Sweden between 3-9 October 2021 travelling to
Luleå, Boden, Jokkmokk, and Stockholm. Discussions with politicians
in Norrbotten and Stockholm indicate that permitting, sustainable
and secure supply chains, the transition to a Green Economy and the
need for more mines in Sweden are priorities for several political
parties right now, especially those parties contesting to be in
government after the next election in September 2022.
-- In mid-October, the CEO visited Finland and met with Business
Finland and the City of Vaasa to discuss Grafintec's business.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"I had a busy September and October travelling to India, Sweden
and Finland. Despite changed ways of working during the pandemic,
there is no effective substitute to the progress that can be made
when meeting in person and the Company is making good progress.
"With Grafintec, discussions are continuing with Epsilon Advance
Materials about the establishment of an anode materials plant in
Finland, for which the Company received project funding in the
summer from Business Finland, as part of BATCircle 2.0.
"In Kosovo, we are hopeful that Vardar's exploration permit
renewals will soon be forthcoming and the next drilling campaign
can get underway at Mitrovica. The team in-country has already
started to prepare access roads and drill pads having received the
necessary permits to do so.
"In Sweden, it is a challenge to stay up to date with the latest
political developments. Last week, I was in Stockholm on the day
when the new Prime Minister was decided, the Green Party left
Government and the Prime Minister resigned. This week we wait with
anticipation, the possibility that Magdalena Andersson will again
be given the opportunity to lead the Country and a single party
minority government. She said at the Social Democrat Party Congress
in early November that new mines will be built and permitting will
be reviewed, so we hope that action follows these words.
"Last Friday, I spoke with the Ministry of Enterprise and
Innovation about rumours being spread on social media of a
forthcoming decision in the Kallak case. I am assured that the
Company will be informed of any developments and be given time to
fully inform markets of any such developments. In the meantime,
investors should treat with caution any speculation on social media
on the timing of a decision on the Company's Kallak application or
the decision itself.
"It's a busy time for the Company, with many plans being worked
on, and I look forward to updating shareholders on developments in
due course."
Financials
-- The consolidated loss in the year to date before tax
increased from Q3 2020 at GBP706,374 to Q3 2021 of
GBP1,220,651.
-- The underlying consolidated administrative costs of
GBP1,187,904 for Q3 2021 increased by GBP532,231 compared to the
administrative cost of GBP655,673 for Q3 2020. This increase in
costs is attributable to several factors. These are largely based
within Plc and include foreign currency revaluations of GBP186,057
(2020: GBP5,991), this is primarily due to the retranslation of
cash balances held in SEK, a cost incurred on an options gain and
employer NI contributions arising of GBP194,573 (2020: GBPnil), an
increase in Director's salaries and associated NI of GBP41,960 and
GBP26,724 incurred for consultancy (2020: GBPnil) for review of
potential M&A and strategic advice. From the wider Group there
was a write down in the equipment held by UAV Geophysics Limited
("UAVG") resulting in a one-off impairment charge of GBP48,966 (Q3
2020: GBPNil).
-- Consolidated basic and diluted loss per share for the period
ended 30 September 2021 was 0.05 pence (Q3 2020: loss of 0.04
pence).
-- GBP3,883,749 in cash held at the period end (Q3 2020:
GBP1,207,384). The higher level of cash is attributable to
fundraising activities completed in the end of year ended 31
December 2020 which raised approximately GBP7.4million before
expenses.
-- The cumulative translation losses held in equity attributable
to the holders of the parent increased by GBP454,475 in the period
ended 30 September 2021 to GBP911,747 (30 September 2020: gain of
GBP654,404). Much of the Company's exploration costs are in Swedish
Krona and Euro which has weakened against the pound since 31
December 2020.
-- As at 30 September 2021, there are 611,151,171 Swedish
Depository Receipts issued representing 73.6 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
-- The Company has continued working on the Scoping Study for
the Aitolampi Graphite Project. Completion has been delayed to
enable further optimisation and to allow thinking to be developed
around the establishment of an anode materials plant in
Finland.
Sweden
-- On 31 August 2021, the Company submitted concluding comments
to the Ministry of Enterprise and Innovation on UNESCO's letter,
dated 2 June 2021.
The Company made the following points:
-- The Company's application is comprehensive for this stage of
permitting, and the assessment of it, by relevant authorities, is
complete;
-- There are no direct effects of Kallak on the Laponian Area ("Laponia");
-- The potential indirect effects are limited and will be dealt
with later in the permitting process, of which ICOMOS
(International Council on Monuments and Sites) is seemingly
unaware;
-- The fact that operating mines are situated closer to Laponia
than Kallak proves that mining does exist without harming Laponia's
Outstanding Universal Values;
-- The fact that UNESCO has not, at any time, indicated the
requirement for a 'buffer zone' around the boundary of Laponia
proves that a 'buffer zone' has not been deemed necessary;
-- The fact that the Company has already committed to take
precautionary measures that will minimize the impact on reindeer
husbandry and commits to fully compensate Saami villages; and
-- The possibility for the Government to ascertain that this
commitment becomes a precondition for the granting of the
Exploitation Concession.
-- On 13 September 2021, the Company wrote a letter to Minister
Baylan, Sweden's Minister of Enterprise and Innovation at the time,
concerning the status of Beowulf's Kallak application. The letter
is provided below:
"Previously, you have said that a decision on Kallak will be
made once UNESCO comments are received, and now that is the case,
it appears you have everything you need to decide.
With your announced retirement last week, you can surely
appreciate that the prospect of engaging with a third Minister over
6 years is of great concern to me.
In September 2017, your predecessor Mikael Damberg said that
Swedish law is enough for testing the Kallak application and that
the permitting process should be "by the book".
With the Concluding Statement, submitted to the Government by
the Company's lawyers in November 2019, we robustly demonstrated
that under judicial review the Company's application would satisfy
all requirements for being granted a Concession. Only for that
Statement to be met by silence and inaction on the part of the
Government.
It is almost 2 years since you wrote to me, in September 2019,
explaining that my request for a meeting at that time "concerns a
forthcoming Government decision - a dossier that is currently under
preparation" and for those reasons the Government was unable to
meet or comment with regard to its "ongoing review".
It is nearly 10 months since The Constitutional Committee
("KU"), in its review of the Government's handling of the Company's
application for an Exploitation Concession for Kallak, made the
following statement (translation):
"KU has examined the application for a processing concession for
Kallak. In the Government case, no visible administrative measures
were implemented for almost three years. This means a delay that is
not acceptable, according to KU.
It also appears that the applicant has on several occasions
asked the Ministry of Trade and Industry for a meeting. The
Ministry has then stated that this is not possible because the
issue concerns a forthcoming Government decision and is a matter
under consideration.
KU notes that the Ministry management's statement does not seem
to be in line with what the Prime Minister has stated. The
Government Offices thus seem to lack a common approach to the
possibility for parties in administrative matters to have a meeting
with the responsible ministry."
It is 18 months since we both attended the Mining Nordic Day in
Toronto in early March 2020, at which event you saved your biggest
welcome for investors. I reminded you that Beowulf has been
invested in Sweden and working on Kallak since 2006. You also said
that I was welcome to do business in Sweden.
It continues to be the case, that Beowulf is unable to do
business in Sweden, because we cannot get a decision on Kallak and
play our part in the Country's sustainable mining future.
Fossil-free steel making in Sweden is in the ascendency. Yet
when it comes to permitting, there is no visible understanding
exhibited by authorities or the Government that steel plants need
sustainably produced high quality iron ore, like Kallak's
market-leading 71.5 per cent magnetite iron concentrate.
Jokkmokk desperately needs investment and jobs. Kallak will
bring billions of SEK in investment and hundreds of jobs to the
municipality that will keep people employed and support families
for decades.
The application you have on your desk is for Kallak North. Yet
the Company has continued to invest, explore and assess the
potential in the Kallak area, and, in May 2021, with our licences
Kallak South and Parkijaure, we upgraded the global Mineral
Resource Estimate showing the potential for up to 389 million
tonnes of iron ore mineralisation that could support mining for
30-40 years. More than doubling the current estimated life of
Kallak North.
As with Kiruna or Aitik, the full potential of any mining
development is not presented with the first application. Mines last
longer than first envisaged, workers hold jobs for longer, taxes
get paid for longer, municipalities like Jokkmokk recover and
thrive, and minerals and metals get produced under the right
conditions.
Investors in capital projects across sectors need to see
transparency and predictability in permitting processes, which you
have spoken of and which define competitive jurisdictions. Yet it
appears you will leave office before the reviews you initiated have
concluded, or any action taken to resolve the issues that have
impeded business during the last 3 years.
In the case of Kallak, you now have the chance, before leaving
office, to make a final decision that will make it possible for the
Company to take the project forward in partnership with the
community in Jokkmokk. "Previously, you have said that a decision
on Kallak will be made once UNESCO comments are received, and now
that is the case, it appears you have everything you need to
decide."
-- Post Period, the Kallak North Mining Study was completed and
shows that the Kallak mine could produce approximately 2.7 million
tonnes ("Mt") per annum of concentrate based on the existing
resource for Kallak North only and modelled over an initial 15
years. This production rate is one scenario and given the forecast
demand for high quality iron ore being created by projects such as
HYBRIT and more specifically H2 Green Steel, there could well be a
requirement for a higher production rate.
The Study provides 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, such as H2 Green Steel, as the Company seeks to place
Kallak at the top of a fossil-free supply chain in Norrbotten.
Vardar Minerals, Kosovo
-- On 2 August 2021, the Company announced a further GBP100,000
investment in Vardar, increasing the Company's ownership of Vardar
from 48.4 per cent to 49.4 per cent, and funding advance
procurement of necessary support equipment for drilling.
To date, Vardar has been unable to commence drilling, as it
awaits final approval of its licence renewal applications. The
Independent Commission on Mines and Minerals ("ICMM") Board, the
body that administers mineral licence permitting in Kosovo, renews
licences and issues new licences, reached the end of its members'
elected terms in Summer 2020. The selection of a new board was
delayed, firstly by COVID related disruptions and secondly by
Kosovo's parliamentary elections, which took place in February
2021. The selection process is complete, and Vardar expects
Parliament to shortly vote on the new ICMM Board, so that the ICMM
Board can get back to work.
-- Vardar has submitted an application for a new exploration
licence area which has been approved by the pre-board process and
is ready for signature by the ICMM Board. The application covers an
area of 87 square kilometres, extends to the north and northeast of
the Mitrovica Project, and includes several areas with significant
alteration associated with Oligo-Miocene magmatics along with
associated gossans and evidence of historical artisanal workings.
The licence encompasses the extension of a distinct northwest
trending zone of lead-zinc-silver ("Pb-Zn-Ag") mineralisation from
the Stan Terg deposit through the Wolf Mountain target. Plans are
being drawn up for a comprehensive ground based and airborne drone
exploration programme in spring 2022.
Corporate
-- 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 and
Sustainability Statement.
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 from which testwork has produced a 'market
leading' concentrate of 71.5% iron content. Across the Company's
exploration licences, 389 million tonnes of iron ore mineralisation
has been estimated, which represents a potential source of supply
for fossil-free steel production in Norrbotten for decades to
come.
Grafintec (previously Fennoscandian Resources), a wholly-owned
subsidiary, through its Memorandum of Understanding ("MoU") with
Epsilon Advance Materials Limited ("EAMPL") is enhancing its
position within the Finnish battery ecosystem, collaborating with a
strong and innovative technology/processing partner, with plans to
develop an anode materials plant in Finland to supply the growing
lithium-ion battery sector.
In Kosovo, the Company owns approximately 49.4% of Vardar
Minerals ("Vardar"), which is focused 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 Grafintec, the Company has many opportunities to grow, each
business area displaying strong prospects.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS TO 30 SEPTEMBER 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2020
2021 2020 2021 2020
GBP
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (467,476) (252,520) (1,185,769) (655,673) (1,005,547)
Impairment of property,
plant and equipment (48,966) - (48,966) - -
Impairment of exploration
costs - (18,650) - (18,650) (98,799)
Operating loss (516,442) (271,170) (1,234,735) (674,323) (1,104,346)
Finance costs (91) (40,179) (179) (40,340) (203,576)
Finance income 12 8 59 591 594
Grant income/(expense) 10,741 (558) 14,204 7,699 12,637
------------ ------------ ------------ ------------ ------------
Loss before and after
taxation (505,780) (311,899) (1,220,651) (706,373) (1,294,691)
============ ============ ============ ============ ============
Loss attributable to:
Owners of the parent (453,456) (269,869) (1,121,304) (623,063) (1,128,512)
Non-controlling interests (52,324) (42,030) (99,347) (83,310) (166,179)
(505,780) (311,899) (1,220,651) (706,373) (1,294,691)
============ ============ ============ ============ ============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.05) (0.04) (0.14) (0.10) (0.19)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS TO 30 SEPTEMBER 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2020
2021 2020 2021 2020
GBP
GBP GBP GBP GBP
Loss for the period/year (505,780) (311,899) (1,220,651) (706,373) (1,294,691)
Other comprehensive
(loss)/ income
Items that may be reclassified
subsequently to profit
or loss:
Exchange gain/(losses)
arising on translation
of foreign operations 28,868 39,801 (474,604) 660,160 854,020
------------ ------------ ------------ ------------ ------------
Total comprehensive
loss (479,912) (272,099) (1,695,255) (46,213) (440,671)
============ ============ ============ ============ ============
Total comprehensive
loss attributable to:
Owners of the parent (426,232) (207,544) (1,644,575) 31,339 (294,716)
Non-controlling interests (50,680) (64,555) (50,680) (77,553) (145,955)
------------ ------------
(476,912) (272,099) (1,695,255) (46,214) (440,671)
============ ============ ============ ============ ============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS TO 30 SEPTEMBER 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2020
2021 2020 2021 2020
GBP
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (403,053) (211,188) (1,089,912) (514,800) (869,853)
Operating loss (403,053) (211,188) (1,089,912) (514,800) (869,853)
Finance income 12 8 59 591 594
Loss before and after
taxation and total
comprehensive loss (403,041) (211,180) (1,089,853) (514,209) (869,259)
============ ============ ============== ============ ============
Loss per share attributable
to the owners of
the parent:
Basic and diluted
(pence) 3 (0.05) (0.04) (0.13) (0.09) (0.14)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 30 September 31
2021 2020 December
GBP GBP 2020
GBP
ASSETS Notes
Non-current assets
Intangible assets 4 11,295,921 10,938,145 11,371,916
Property, plant and
equipment 66,116 135,887 145,094
Loans and other financial
assets 5,340 5,391 5,468
Right of use asset 8,986 3,438 1,937
-------------- -------------- -------------
11,376,363 11,082,861 11,524,415
-------------- -------------- -------------
Current assets
Trade and other receivables 183,640 98,459 1,566,848
Cash and cash equivalents 3,883,749 1,207,384 4,329,414
-------------- -------------- -------------
4,067,389 1,305,843 5,896,262
-------------- -------------- -------------
TOTAL ASSETS 15,443,752 12,388,704 17,420,677
============== ============== =============
EQUITY
Shareholders' equity
Share capital 3 8,317,105 6,022,446 8,281,751
Share premium 24,756,130 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 (911,747) (636,664) (457,272)
Accumulated losses (18,304,501) (16,577,737) (17,083,185)
-------------- -------------- -------------
Total Equity 14,773,323 10,548,390 16,342,367
-------------- -------------- -------------
Non-controlling interests 374,649 462,514 394,113
-------------- -------------- -------------
TOTAL EQUITY 15,147,972 11,010,904 16,736,480
-------------- -------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 216,867 256,484 538,772
Grant income 69,860 149,060 143,399
Lease Liability 9,053 3,573 2,026
Borrowings - 968,683 -
-------------- -------------- -------------
TOTAL LIABILITIES 295,780 1,377,800 684,197
-------------- -------------- -------------
TOTAL EQUITY AND LIABILITIES 15,443,752 12,388,704 17,420,677
============== ============== =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
(Unaudited) (Unaudited) (Audited)
As at As at As at 31
30 September 30 September December
2021 2020 2020
GBP GBP GBP
ASSETS
Non-current assets
Investments 2,377,988 2,077,988 2,077,988
Loans and other financial
assets 10,044,632 9,173,997 9,341,315
Property, plant and
equipment 1,205 - 1,483
12,423,825 11,251,985 11,420,786
-------------- -------------- -------------
Current assets
Trade and other receivables 22,776 22,819 1,476,755
Cash and cash equivalents 3,451,549 884,176 4,241,426
-------------- -------------
3,474,325 906,995 5,718,181
-------------- -------------- -------------
TOTAL ASSETS 15,898,150 12,158,980 17,138,967
============== ============== =============
EQUITY
Shareholders' equity
Share capital 8,317,105 6,022,446 8,281,751
Share premium 24,756,130 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 (18,257,971) (16,813,068) (17,168,118)
-------------- -------------- -------------
TOTAL EQUITY 15,731,600 10,949,723 16,714,706
-------------- -------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 96,690 91,514 280,862
Grant income 69,860 149,060 143,399
Borrowings - 968,683
-------------- -------------
TOTAL LIABILITIES 166,550 1,209,257 424,261
-------------- -------------- -------------
TOTAL EQUITY AND LIABILITIES 15,898,150 12,158,980 17,138,967
============== ============== =============
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS TO 30 SEPTEMBER 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 (623,064) (623,064) (83,310) (706,374)
Foreign
exchange
translation 654,404 654,404 5,756 660,160
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss
654,404 (623,064) 31,340 (77,554) (46,214)
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Transactions
with
owners
Step
acquisition
of Subsidiary - - - - - - (173,512) (173,512) 213,513 40,001
At 30
September
2020
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (636,664) (16,577,737) 10,548,390 462,514 11,010,904
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Loss for the
period - - - - - - (505,448) (505,448) (82,869) (588,317)
Foreign
exchange
translation - - - - - 179,392 - 179,392 14,468 193,860
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss - - - - - 179,392 (505,448) (326,056) (68,401) (394,457)
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 - - - - - - - - - -
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 - - - - - - (1,121,304) (1,121,304) (99,347) (1,220,651)
Foreign
exchange
translation - - - - - (454,475) (454,475) (20,129) (474,604)
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss - - - - - (454,475) (1,121,304) (1,575,779) (119,476) (1,695,254)
Transactions
with
owners
Issue of share
capital 35,354 90,153 - - - - - 125,507 - 125,507
Issue costs - (18,760) - - - - - (18,760) - (18,760)
Step
acquisition
of Subsidiary - - - - - - (100,012) (100,012) 100,012 -
At 30
September
2021
(Unaudited) 8,317,105 24,756,130 137,700 46,451 732,185 (911,747) (18,304,501) 14,773,323 374,649 15,147,972
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS TO 30 SEPTEMBER 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 - - - - - (514,209) (514,209)
Total
comprehensive
loss - - - - - (514,209) (514,209)
At 30
September
2020
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (16,813,068) 10,949,723
------------- ------------- ---------- ------------- ------------ --------------- -------------
Loss for the
period - - - - - (355,050) (355,050)
Total
comprehensive
loss - - - - - (355,050) (355,050)
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 - - - - - (1,089,853) (1,089,853)
Total
comprehensive
loss - - - - - (1,089,853) (1,089,853)
Transactions
with owners
Issue of share
capital 35,354 90,153 - - - - 125,507
Issue costs - (18,760) - - - - (18,760)
------------- ------------- ---------- ------------- ------------ --------------- -------------
At 30
September
2021
(Unaudited) 8,317,105 24,756,130 137,700 46,451 732,185 (18,257,971) 15,731,600
------------- ------------- ---------- ------------- ------------ --------------- -------------
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) (Audited)
30 September 30 September 31 December
2021 2020 2020
GBP GBP GBP
Allotted, issued and fully paid
Ordinary shares of 1p each 8,317,105 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
Balance at 30 September 2020 602,244,672
Issued during the period 225,930,552
------------
Balance at 31 December 2020 828,175,224
Issued during the period 3,535,412
------------
Balance at 30 September 2021 831,710,636
------------
4 . Intangible Assets: Group
Exploration costs As at 30 As at 31
September December
2021 2020
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January 11,371,916 10,011,494
Additions for the year 361,054 612,062
Foreign exchange movements (437,049) 847,159
Impairment - (98,799)
11,295,921 11,371,916
============ ===========
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at
30 31
September December
2021 2020
(Unaudited) (Audited)
GBP GBP
Project Country
Kallak Sweden 7,374,384 7,533,388
Ågåsjiegge Sweden 6,417 -
Åtvidaberg Sweden 377,384 393,303
Pitkäjärvi Finland 1,404,184 1,333,114
Rääpysjärvi Finland 64,166 47,053
Karhunmäki Finland 45,960 41,017
Merivaara Finland 36,848 36,965
Mitrovica Kosovo 1,360,033 1,387,030
Viti Kosovo 626,545 600,046
11,295,921 11,371,916
============ ===========
Total Group exploration costs of GBP 11,295,921 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 risks facing the Group are that it does not
receive an Exploitation Concession for Kallak and exploration
licences in Kosovo do not get renewed. With Kallak, in October
2015, the Mining Inspectorate recommended that the Concession be
awarded and more recently Sweden's developing fossil-free steel
making sector demands high quality iron feed of the kind which
Kallak could produce. Renewal applications for licences in Kosovo
were submitted on time and pre-approved. There is no reason to
believe that final approvals will not be granted once the new ICMM
Board is in position.
Kallak is included in the condensed financial statements as at
30 September 2021 as an intangible exploration licence with a
carrying value of GBP7,374,384. 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
There were no significant events to disclose.
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 **
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