25 September 2024, 06:00 UTC
Arc Minerals
Ltd
('Arc Minerals' or the
'Company')
Interim
Results
Arc Minerals announces its unaudited financial
results for the six months ended 30 June 2024 (the "Interim
Results") which has been made available on the Company's website at
http://www.arcminerals.com/investors/document-library/default.aspx
.
Market Abuse Regulation (MAR)
Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of
MAR.
Forward-looking
Statements
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty
therein.
**ENDS**
Contacts
|
Arc Minerals
Ltd
Nick von Schirnding (Executive
Chairman)
|
c/o Benchmark
Communications
|
|
|
|
|
Zeus Capital
Limited (Nominated Adviser & Joint
Broker)
Katy Mitchell/Harry Ansell
|
Tel: +44 (0) 203 829
5000
|
|
|
|
|
Shard Capital
Partners LLP (Joint Broker)
Damon Heath
|
Tel: +44 (0) 20 7186
9952
|
|
|
|
|
Benchmark
Communications (Investor Relations)
Richard Kauffer
|
Tel: +44 (0) 7841 67
3210
|
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
for the period ended 30 June 2024
|
|
|
|
|
Six Months to
30 June
2024
|
|
Six Months to
30 June
2023
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Notes
|
|
£ 000's
|
|
£ 000's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
|
(514)
|
|
(2,201)
|
|
|
Operating loss
|
|
|
|
(514)
|
|
(2,201)
|
|
|
|
|
|
|
|
|
|
|
|
Share of loss from
associate
|
|
|
|
(24)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Loss
|
|
|
|
(24)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from continuing operations
|
|
|
|
(538)
|
|
(2,201)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
-
|
|
-
|
|
|
Loss
for the period
|
|
3
|
|
(538)
|
|
(2,201)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (loss)
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
|
|
|
|
|
Unrealised losses
|
|
|
|
-
|
|
(49)
|
|
|
Effect of currency
translation
|
|
|
|
4
|
|
53
|
|
|
Other comprehensive income for the period, net of
tax
|
|
|
|
4
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period
|
|
|
|
(534)
|
|
(2,197)
|
|
|
|
|
|
|
|
|
|
|
|
Income / (Loss) attributable to:
|
|
|
|
|
|
|
|
|
Equity holders of the
parent
|
|
|
|
(631)
|
|
(2,196)
|
|
|
Non-controlling interest
|
|
|
|
93
|
|
(5)
|
|
|
|
|
|
|
(538)
|
|
(2,201)
|
|
|
Total comprehensive income / (loss) attributable
to:
|
|
|
|
|
|
|
|
|
Equity holders of the
parent
|
|
|
|
(628)
|
|
(2,206)
|
|
|
Non-controlling interest
|
|
|
|
94
|
|
(9)
|
|
|
|
|
|
|
(534)
|
|
(2,197)
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share attributable to the owners of the parent during the
period
(expressed in pence per
share)
|
|
|
|
|
|
|
|
|
- Basic
|
|
3
|
|
(0.04)
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
The
notes are an integral part of these consolidated financial
statements.
|
|
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
For the period ended 30 June
2024
1. Basis of preparation
The condensed consolidated interim financial
statements have been prepared under the historical cost convention
and on a going concern basis and in accordance with International
Financial Reporting Standards and IFRIC interpretations adopted for
use in the European Union ("IFRS") and those parts of the BVI
Business Companies Act applicable to companies reporting under
IFRS.
The condensed consolidated interim financial
statements contained in this document do not constitute statutory
accounts. In the opinion of the directors, the condensed
consolidated interim financial statements for this period fairly
presents the financial position, result of operations and cash
flows for this period.
The Board of Directors approved this Interim
Financial Report on 24 September 2024.
Statement of
compliance
The condensed consolidated interim financial
statements have been prepared in accordance with the requirements
of the AIM Rules for Companies. As permitted, the Company has
chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing these interim condensed consolidated interim financial
statements. The condensed interim financial statements should be
read in conjunction with the annual financial statements for the
year ended 31 December 2023, which have been prepared in accordance
with IFRS as adopted by the European Union.
Accounting
policies
The condensed consolidated interim financial
statements for the period ended 30 June 2024 have not been audited
or reviewed in accordance with the International Standard on Review
Engagements 2410 issued by the Auditing Practices Board. The
figures were prepared using applicable accounting policies and
practices consistent with those adopted in the statutory annual
financial statements for the year ended 31 December
2023.
Going
concern
The Directors have reviewed a forecast prepared
by the executive and have a reasonable expectation that the Group
has sufficient funds to continue in operation and satisfy
liabilities for the foreseeable future. The Directors therefore
consider it appropriate for the Company to continue to adopt the
going concern basis in preparing the Annual Report and Financial
Statements.
Fair value
measurement
Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes
place either in the principal market for the asset or liability, or
in the absence of a principal market, in the most advantageous
market for the asset or liability.
The fair value of an asset or a
liability is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming that market participants act in their economic best
interest. A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset
in its highest and best use.
The Group uses valuation techniques
that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable
inputs. All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a
whole:
• Level 1 - Quoted (unadjusted)
market prices in active markets for identical assets or
liabilities.
• Level 2 - Valuation techniques for
which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
• Level 3 - Valuation techniques for
which the lowest level input that is significant to the fair value
measurement is unobservable.
2. Financial Risk Management
Risks and
uncertainties
The Board continually assesses and monitors the
key risks of the business. The key risks that could affect the
Group's medium-term performance and the factors that mitigate those
risks have not substantially changed from those set out in the
Group's December 2023 Annual Report and Financial Statements, a
copy of which is available from the Group's website:
www.arcminerals.com. The key financial risks are market risk,
currency risk, and liquidity.
3. Loss per share
|
|
|
|
|
Six Months to
30 June 2024
|
|
Six Months to
30 June 2023
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Notes
|
|
£ 000's
|
|
£ 000's
|
|
Loss for the period
|
|
|
|
(538)
|
|
(2,201)
|
|
Weighted average number of ordinary
shares used in calculating basic loss per share (000's)
|
|
|
|
1,348,712
|
|
1,225,745
|
|
Basic loss per share (expressed in
pence)
|
|
|
|
(0.04)
|
|
(0.18)
|
As the inclusion of outstanding warrants and
options would result in a decrease in the earnings per share, they
are considered to be anti-dilutive and, as such, a diluted loss per
share is not included.
4. Intangible Assets
|
|
|
|
|
|
|
Alvis-Crest
|
Foreland
|
Total
|
|
|
|
|
|
|
|
Prospecting & Exploration
rights
|
Deferred Exploration
Costs
|
|
|
|
|
|
|
|
|
£ 000's
|
£ 000's
|
£ 000's
|
|
|
|
|
|
|
|
|
|
|
|
As
at 1 January 2024
|
|
|
|
|
|
1,699
|
-
|
1,699
|
|
Additions
|
|
|
|
|
|
127
|
10
|
137
|
|
Foreign exchange
|
|
|
|
|
|
-
|
-
|
-
|
|
As
at 30 June 2024
|
|
|
|
|
|
1,826
|
10
|
1,836
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 December 2023
|
|
|
|
|
|
1,699
|
-
|
1,699
|
|
|
|
|
|
|
|
|
|
|
5. Long-term receivables
|
|
Group
|
Group
|
|
|
30 June
2024
|
31
Dec
2023
|
|
|
£ 000's
|
£
000's
|
|
Receivable - Anglo JV (USD
8.61M)
|
6,811
|
6,531
|
|
Total
|
6,811
|
6,531
|
6. Trade and other receivables
|
|
Group
|
Group
|
|
|
30 June
2024
|
31
Dec
2022
|
|
|
£ 000's
|
£
000's
|
|
Receivable - Anglo JV (USD
974k)
|
770
|
744
|
|
Receivable - Casa Sale (USD
1.25M)
|
988
|
982
|
|
Other Receivables
|
166
|
121
|
|
Prepayments
|
-
|
12
|
|
Total
|
1,924
|
1,859
|
7. Short-term Investments Held at Fair Value Through
Profit and Loss
The Group's investments held at fair value
through profit and loss consist of investments publicly traded on
the London Stock Exchange and the Over-The-Counter (OTC) market.
These investments are valued at the mid-price as at period
end.
|
|
|
Level
1(i)
|
Level
2(i)
|
Level
3(i)
|
Total
|
|
|
|
£ 000's
|
£ 000's
|
£ 000's
|
£ 000's
|
|
|
|
|
|
|
|
|
At 1
January 2024
|
|
68
|
-
|
-
|
68
|
|
Additions
|
|
-
|
-
|
-
|
-
|
|
Fair value and gain on
disposal
|
|
28
|
-
|
-
|
28
|
|
Disposals
|
|
(96)
|
-
|
-
|
68
|
|
Foreign exchange
|
|
-
|
-
|
-
|
-
|
|
At
30 June 2024
|
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
Level
1(i)
|
Level
2(i)
|
Level
3(i)
|
Total
|
|
|
|
£ 000's
|
£ 000's
|
£ 000's
|
£ 000's
|
|
Gains on short-term investments held at fair value through
profit and loss
|
|
Fair value gain and disposal on
investments
|
|
28
|
-
|
-
|
28
|
|
At
30 June 2024
|
|
28
|
-
|
-
|
28
|
(i) See note 1
(accounting policy).
|
|
|
Level
1(i)
|
Level
2(i)
|
Level
3(i)
|
Total
|
|
|
|
£ 000's
|
£ 000's
|
£ 000's
|
£ 000's
|
|
|
|
|
|
|
|
|
At 1
January 2023
|
|
1,738
|
-
|
-
|
1,738
|
|
Additions
|
|
-
|
-
|
-
|
-
|
|
Fair value loss
|
|
(1,509)
|
-
|
-
|
(1,509)
|
|
Impairment of TMNA shares
|
|
(164)
|
-
|
-
|
(164)
|
|
Foreign exchange
|
|
3
|
-
|
-
|
3
|
|
At
31 December 2023
|
|
68
|
-
|
-
|
68
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|
|
£ 000's
|
£ 000's
|
£ 000's
|
£ 000's
|
|
Losses on short-term investments held at fair value through
profit and loss
|
|
Fair value loss on
investments
|
|
(1,509)
|
-
|
-
|
(1,509)
|
|
Realised loss on impairment of
investments
|
|
(164)
|
-
|
-
|
(164)
|
|
At
31 December 2023
|
|
(1,673)
|
-
|
-
|
(1,673)
|
(i) See note 1
(accounting policy).
8. Trade and Other Payables
|
|
|
|
Group
|
|
Group
|
|
|
|
|
30 June
2024
|
|
31 December
2023
|
|
Trade and Other Payables
|
|
|
£ 000's
|
|
£ 000's
|
|
Surrendered share options
payable
|
|
|
1,181
|
|
1,181
|
|
Minority shareholder loans
|
|
|
-
|
|
47
|
|
Trade and other payables
|
|
|
524
|
|
1,016
|
|
|
|
|
1,705
|
|
2,244
|
|
|
|
|
|
|
|
|
Surrendered
Share Options Payable
The surrendered share options payable is in
relation to the surrendered share options as announced on 16 March
2021.
Minority
shareholder loans
The minority shareholder loans represent the
loan from the 33% minority shareholder to Unico Minerals Limited.
The Company has also provided a loan to this company on similar
terms which had a balance on the reporting date of c.£1.45
million.
9. Long Term Payables
|
|
|
|
Group
|
|
Group
|
|
|
|
|
30 June
2024
|
|
31 December
2023
|
|
Long
term payables
|
|
|
£ 000's
|
|
£ 000's
|
|
Minority shareholder loan
|
|
|
104
|
|
105
|
|
|
|
|
104
|
|
105
|
|
|
|
|
|
|
|
|
The minority shareholder loan consists of a
loan from the 25% minority shareholder of Alvis-Crest (Pty) Ltd.
The Company has also provided a loan to Alvis Crest on similar
terms which had a balance on the reporting date of
c.£964k.
10. Share Capital
The authorised share capital of the Company and
the called up and fully paid amounts at
30 June 2024 were as follows:
|
A)
Authorised
|
|
£ 000's
|
|
£ 000's
|
|
Unlimited ordinary shares of no par
value
|
|
-
|
|
-
|
|
|
|
|
|
|
|
B)
Called up, allotted, issued and fully paid
|
Number
of shares
|
Nominal
value
|
Price
per
share
(pence)
|
Gross
Consideration
value
GBP'000
|
|
As
at 1 January 2024
|
1,232,318,465
|
-
|
-
|
-
|
|
Additions:
|
|
|
|
|
|
23 Feb 2024 - issued to creditors in
lieu of payment
|
746,664
|
-
|
2.33
|
17
|
|
25 Mar 2024 - placing and
subscription
|
229,777,770
|
-
|
1.80
|
4,136
|
|
25 Mar 2024 - advisor shares in
relation to placing
|
5,711,110
|
-
|
1.80
|
103
|
|
8 Apr 2024 - cancellation of
repurchased shares as first announced on 26 Mar 2024
|
(22,539,746)
|
-
|
1.80
|
(406)
|
|
As
at 30 June 2024
|
1,446,014,263
|
-
|
|
-
|
11. Events after the reporting
date
There were no post balance sheet events in
addition to those disclosed in the 31 December 2023 Annual
Report.
12. Other Matters
The condensed consolidated interim financial
statements set out above do not constitute the Group's statutory
accounts for the period ended 30 June 2024 or for earlier periods
but are derived from those accounts where applicable.
A copy of this interim statement is available on
the Company's website: www.arcminerals.com.