TIDMBEM
RNS Number : 2803G
Beowulf Mining PLC
26 May 2017
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
26 May 2017
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Interim Statement and Management Update for the Period
Ended 31 March 2017
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration
and development company, focused on the Kallak magnetite iron ore
project and the Åtvidaberg polymetallic exploration licence in
Sweden, and its graphite portfolio in Finland, announces its
unaudited consolidated financial results for the three months ended
31 March 2017 and provides a management update.
The unaudited interim financial results for six months ending 30
June 2017 and the next management update will be released on or
before 31 August 2017.
Overview of Activities in the Quarter
-- The Company announced, on 25 January 2017, testwork results
for composite samples taken from its Haapamäki, Pitkäjärvi and
Aitolampi graphite prospects located in eastern Finland.
-- On 1 February 2017, the County Administrative Board ("CAB")
for the County of Norrbotten made an announcement, in which the CAB
referred the Company's application for an Exploitation Concession
for Kallak North ("Kallak") back to the Mining Inspectorate, with
respect to matters regarding the effects of a mining operation at
Kallak on Laponia.
-- Beowulf received a letter from the Mining Inspectorate, on 2
February 2017, asking the Company if it had any comments on the
CAB's announcement and, on 15 February 2017, the Company wrote to
the Mining Inspectorate and provided comments on the
announcement.
-- The Company met with the Mining Inspectorate on 20 February
2017, and discussed the next steps in the application review
process for Kallak. Following this meeting, Beowulf confirmed that
it had been invited to supplement its existing Environmental Impact
Assessment ("EIA") for Kallak even further, should it wish to do
so, before the Mining Inspectorate sent all information to the
Swedish National Heritage Board (Riksantikvarieämbetet, "RAÄ") and
the Swedish Environmental Protection Agency (Naturvårdsverket,
"NV") for their review and opinions on the sufficiency of
information provided, with respect to the interaction between
Kallak and Laponia. The Company declined to make any further
supplements and remains of the opinion that the EIA has met the
requirements of the Swedish Minerals Act and Environmental
Code.
-- On 22 February 2017, Beowulf started drilling at its Aitolampi graphite prospect in Finland.
-- Beowulf wrote to the Mining Inspectorate on 24 February 2017,
and stated that it did not agree with the Mining Inspectorate on
consulting with the RAÄ and NV, as both these agencies had already
reviewed the Company's application and provided comments.
-- On 13 March 2017, the Company provided an update on its
Aitolampi drilling, with four diamond drill holes completed as part
of an eight-hole programme. The Company provided a further update
on drilling at Aitolampi, on 27 March 2017, following the
completion of drilling of approximately 1,197 metres ("m"). The
first four drill holes, AITDD17001-004, extended 350m along strike
for the main conductive zone, and drill holes AITDD17005-008 tested
the extent of mineralisation down-dip of the main conductive
zone.
-- On 27 March 2017, the Company was notified that the Mining
Inspectorate had received comments and opinions from Swedish
agencies, RAÄ and NV. Following this, the Mining Inspectorate wrote
to the Company, and gave it the opportunity to submit its own
comments and supplementary information further to the RAÄ and NV's
comments.
-- On 29 March 2017, the Company met with the Mining
Inspectorate in Luleå to discuss the next steps in the application
process. During the meeting, the Company outlined its
interpretation of the RAÄ and NV's comments, specifically that: the
focus of the agencies' response is the effect of Kallak on Laponia;
it is acknowledged that Kallak does not directly affect Laponia;
and it is suggested that the Company should provide more details,
to describe the possible indirect effects of a mining operation at
Kallak on Laponia, the interaction of mining and reindeer herding,
and matters related to transport. The agencies failed to be
specific, as requested by the Mining Inspectorate, as to where the
Company's EIA is insufficient in the detail it provides.
-- Loss before and after taxation attributable to the owners of
the parent of GBP207,747 (2016: loss of GBP166,559).
-- Cash and cash equivalents at 31 March 2017 of GBP1,249,594,
are GBP243,430 below the corresponding period last year and
GBP359,625 below the level at 31 December 2016.
Post Period End
-- On 28 April 2017, the Company submitted a Heritage Impact
Assessment ("HIA") to the Mining Inspectorate in response to the
comments made by Swedish agencies, RAÄ and NV. The Company
presented an analysis of the indirect effects of a mining operation
at Kallak on Laponia with respect to reindeer herding, and the
effects of transport on Laponia. The analysis followed United
Nations Educational, Scientific and Cultural Organisation
("UNESCO") guidelines for conducting a HIA. Typically, a HIA is not
required with an application for an Exploitation Concession, but
the Company voluntarily produced one, with the support of its
expert Swedish technical team and Swedish Advisory Board.
-- The Company was notified, on 8 May 2017, that the Mining
Inspectorate had written to the CAB, asking the CAB to give an
opinion on the Company's application by 1 June 2017. Subsequently,
the CAB requested, and was granted, an extension to 16 June
2017.
-- The Company announced on 17 May 2017 a subscription for new
ordinary shares to raise GBP1.5 million before expenses, an issue
of 23,076,923 new ordinary shares at a price of 6.5 pence per new
ordinary share.
The Company stated that proceeds would be used for general
working capital purposes and to support activities across its three
main business areas, which are Kallak, graphite exploration, and
the Åtvidaberg exploration licence. More specifically: a Scoping
Study on Kallak, to be conducted after the award of the
Exploitation Concession; exploration and development activities
across the graphite portfolio, Haapamäki, Pitkäjärvi and Aitolampi,
Kolari, and Viistola, including geophysics, sampling, assays, and
metallurgical testwork; and the 2017 exploration programme at
Åtvidaberg, comprising re-interpretation of historical data, ground
geophysics, and geological mapping.
-- On 24 May 2017, the Company announced further results from
its recently completed eight-hole diamond drill programme at
Aitolampi.
Drilling confirms that EM anomalies identified at Aitolampi are
associated with wide zones of graphite mineralisation, with a
mineralised strike length of at least 350m along the main
conductive zone drill-tested, dipping between 40 and 50 degrees to
the southwest. The main EM zone extends for 700m.
Kurt Budge, CEO, commented:
"When reviewing the chronology of our Kallak North application,
who said what and when, it is impossible to comprehend that we are
still waiting for an Exploitation Concession. We have been waiting
to restart investing in Kallak, to initiate a Scoping Study, drill
the Kallak South exploration target, which we believe will
significantly boost the Kallak resource, and form the local
partnerships that will deliver a modern and sustainable mining
operation.
"I have been in Jokkmokk many times this year. The town is
looking for investors who want to build businesses. We have
invested over SEK72 million in Kallak to date, but despite
authorities stating our application meets the requirements, and
that our project could deliver significant economic benefits, we
continue to face delays in being awarded an Exploitation
Concession. However, we are not giving up, our determination is
unwavering. There is plenty of support from stakeholders that want
to see economic growth and a bright future for Jokkmokk, with
mining as part of that future, and that gives us real
encouragement.
"On 12 May, we completed an expedient fundraise of GBP1.5
million at a price of 6.5 pence per ordinary share, over 54 per
cent higher than the price of our December 2016 fundraise, and 100
per cent higher than the price of our February 2016 fundraise.
"When Bevan Metcalf and I joined the Company in September 2014,
we inherited a financially distressed business, and we have no
interest in letting the Company return to that state. We are active
on our graphite exploration, and have exciting plans for Åtvidaberg
and Kallak. Those programmes, plus corporate overheads, and the
Kallak process need funding.
"I look forward to updating shareholders on progress across our
three main business areas in due course."
An interview with Kurt Budge, CEO, discussing the management
update can be viewed at the following link:
https://www.brrmedia.co.uk/broadcasts-embed/5926d7f2f9cd13506f8e06a9/event/?livelink=true&popup=true
Operational
Kallak North Exploitation Concession
In 2017, movement with the Kallak application started on 1
February, when the CAB made a surprise announcement, in which it
referred the Company's application for an Exploitation Concession
for Kallak back to the Mining Inspectorate, with respect to matters
regarding the effects of a mining operation at Kallak on
Laponia.
The CAB announcement followed the Mining Inspectorate's request
to the CAB on 24 October 2016 to answer several questions:
-- Does the Kallak EIA contain the information required under
Chapter 6 of the Environmental Code?
-- Does the information contained within the EIA, for both
mining and ancillary activities applied for by the Company, meet
the requirements of Chapters 3 and 4 of the Environmental Code?
-- Does the CAB wish to put conditions, that could be attached
to an Exploitation Concession if one is granted by the Mining
Inspectorate, on the Company?
On 15 February 2017, the Company announced that it had written
to the Mining Inspectorate and provided comments on the CAB's
statement made on 1 February 2017. The Company's letter stated
that:
-- The Company's application for an Exploitation Concession for
Kallak includes a technical description, covering the Concession
Area, the actual deposit to be mined, and the operational
facilities necessary to support mining. It also includes a
comprehensive EIA, where all activities and their potential effects
have been described.
-- The EIA and other relevant documents have already been
reviewed by the CAB, and other stakeholders, during the period from
April 2013 to October 2014, and the Company has responded to all
comments made.
-- On 1 October 2014, the CAB confirmed that the Company's EIA
was sufficient with respect to Chapters 3, 4 and 6 of the
Environmental Code and, on 7 July 2015, the CAB wrote to the
Government of Sweden indicating that the Company's EIA application
could be permissible with respect to Chapters 3 and 4 of the
Environmental Code.
-- The CAB's statement on 1 February 2017 must be interpreted as
if the CAB has no objections to the granting of an Exploitation
Concession, given that the assessment of the application, under the
prescribed process, should only include the Concession Area, the
actual deposit to be mined.
-- The Company did not understand the legal basis for any
process involving UNESCO, when considering the Company's
application. The interaction between Kallak and Laponia, which is
33.8 kilometres away at its closest point, is something that should
be assessed under environmental permitting.
-- Within the Concession Area, there are no conflicts where
national interests are considered, a fact stated by the CAB in July
2015, and for the areas taken by operational facilities necessary
to support mining, there are also no conflicts where national
interests are considered. Since February 2013, Kallak has been
designated an Area of National Interest ("ANI") for its minerals
and metals, affording it protection against competing land use, and
measures that may hinder future potential mineral extraction.
The Company also stated that it is for the CAB to answer the
Mining Inspectorate's questions and to give an opinion on the
Company's application. The CAB has stated on more than one occasion
that the Company's EIA is sufficient for an assessment, and in July
2015, the CAB detailed a robust economic case for Kallak.
Further to the CAB statement on 1 February 2017, the Mining
Inspectorate decided to consult with the RAÄ and the NV for their
review and opinions on the sufficiency of information provided,
with respect to the interaction between Kallak and Laponia.
On 27 March 2017, RAÄ and NV provided comments to the Mining
Inspectorate. The Company met with the Mining Inspectorate on 29
March and outlined its interpretation of the RAÄ and NV's comments,
specifically that:
-- The focus of the agencies' response is the effect of Kallak on Laponia.
-- It is acknowledged that Kallak does not directly affect Laponia.
-- It is suggested that the Company should provide more details,
to describe the possible indirect effects of a mining operation at
Kallak on Laponia, the interaction of mining and reindeer herding,
and matters related to transport.
The agencies failed to be specific, as requested by the Mining
Inspectorate, as to where the Company's EIA is insufficient in the
detail it provides.
On 28 April 2017, the Company submitted a HIA to the Mining
Inspectorate in response to the comments made by RAÄ and NV. The
Company presented an analysis of the indirect effects of a mining
operation at Kallak on Laponia with respect to reindeer herding,
and the effects of transport on Laponia. The analysis followed
UNESCO guidelines for conducting a HIA. Typically, a HIA is not
required with an application for an Exploitation Concession, but
the Company voluntarily produced one, with the support of its
expert Swedish technical team and Swedish Advisory Board.
The Company maintains that its studies into reindeer herding
support the case that mining and reindeer herding can cooperate and
prosper side by side and, to the Company's knowledge, there is no
evidence to suggest that they cannot. Kallak's area of 13.6km(2)
compares to Jåhkågaska reindeer herding community's 2,640km(2) of
grazing land or 0.5 per cent, as a percentage.
With regards to transport, the Company stated that solutions
will be optimised, and sensibly controlled by the environmental
permitting process, such that there should be no material effect on
Laponia, and planning will involve other parties, including
Trafikverket and Inlandsbanan.
The Company has listened, and responded, to concerns raised
throughout the application process. This has been demonstrated by
the submission to the CAB in April 2013 of extensive supplementary
EIA studies, and, in November 2014, the Company eliminating the
Jelka-Rimakåbbå transport route from its plans, responding to the
CAB's concerns about the interaction of mining and reindeer
herding.
The CAB now has a deadline of 16 June 2016 to respond to the
Mining Inspectorate and provide an opinion on the Company's
application.
Swedish Exploration Portfolio
Åtvidaberg
At the end of April 2017, the Company held a three-day field
workshop at Åtvidaberg, which brought together the Company's
exploration team, and a handful of external experts with major
mining company exploration experience, relevant to Bergslagen,
volcanogenic massive sulphide mineralisation and modern exploration
technologies.
The output of the workshop was an exciting exploration programme
for this year, with work planned on brownfield and greenfield
targets at Bersbo (prospective for zinc and copper), Mormor
(prospective for copper), and Könserum (prospective for molybdenum,
tungsten, bismuth and rhenium). The programme will include further
interpretation of historical data, geophysics, and geological
mapping, to fill the knowledge gaps and answer key questions, with
a view to perfecting the exploration model and defining drill
targets.
Finnish Graphite
On 25 January 2017, the Company announced testwork results for
composite samples taken from its Haapamäki, Pitkäjärvi and
Aitolampi graphite prospects located in eastern Finland.
-- Testwork on composite samples for Pitkäjärvi and Aitolampi
produced concentrate grades of 94.5 per cent Total Carbon ("Ct")
and 94.7 per cent Ct, respectively.
-- A secondary cleaning circuit produced grades of at least 95.7
per cent Ct in all size fractions between 65 mesh and 200 mesh
(210-75 micron), with the highest grade of 97.4 per cent Ct
obtained from the -80/+100 mesh (180-150 micron) size fraction for
Pitkäjärvi (test MET-03-3). Most of the carbon in the samples was
associated with graphite, with only small amounts of organic carbon
and carbonate carbon.
-- Flake size analysis for Pitkäjärvi concentrate showed 83 per
cent fine (<150 micron), 5.6 per cent medium (150-180 micron)
and 11.4 per cent large/jumbo (+180 micron) flakes.
-- Flake size analysis for Aitolampi concentrate showed 78.3 per
cent fine, 8.8 per cent medium and 12.9 per cent large/jumbo
flakes.
-- Inductively Coupled Plasma Optical Emission Spectrometry
("ICP-OES") scans and whole-rock analysis showed no elevated
concentrations of typical deleterious elements.
-- All testwork was performed by SGS Mineral Services in Canada.
During February and March 2017, Beowulf has focused on drilling
at Aitolampi, providing several updates on drilling results and
interpretation, and most recently assays. On 27 March, the Company
announced the completion of drilling at Aitolampi, with all eight
holes drilled, approximately 1,197m in total.
-- The first four drill holes, AITDD17001-004, extended 350m
along strike for the main conductive zone, and drill holes
AITDD17005-008 tested the extent of mineralisation down-dip of the
main conductive zone.
-- The Company reported that substantial graphite mineralisation
had been intersected in all holes, including up to 113.5m down-hole
width for the longest drill hole AITDD17006, which corresponds with
identified EM conductors. It should be noted that the
mineralisation intercept is the down-hole width and may not be the
true width.
-- Drill holes AITDD17005-006 tested two parallel conductors to
the main conductive zone and intersected graphite mineralisation
for both conductors.
On 8 May 2017, the Company's exploration team was back in the
field, and began a two-month field programme at Haapamäki,
Pitkäjärvi and Aitolampi, which includes further Slingram
electromagnetic ("EM") surveys and geological mapping, with the
objective of defining new drill targets.
On 24 May 2017, the Company announced further results from its
recently completed eight-hole diamond drill programme.
-- Drilling confirms that EM anomalies identified at Aitolampi
are associated with wide zones of graphite mineralisation, with a
mineralised strike length of at least 350m along the main
conductive zone drill-tested, dipping between 40 and 50 degrees to
the southwest. The main EM zone extends for 700m.
-- Drill hole AITDD17006 intercepted 202.98m at 3.09 per cent
Total Graphite Carbon ("TGC") from 19.2m depth (this includes some
barren zones with no assays and calculated as zero per cent TGC),
and higher-grade zones of 18.95m at 6.33 per cent TGC, and 14m at
6.26 per cent TGC.
-- Drill hole AITDD17001 intercepted 141.86m at 3.72 per cent
TGC from 19.67m depth, including a higher-grade zone of 39.48m at
5.02 per cent TGC.
-- Drill hole AITDD17008 intercepted 60.29m at 4.01 per cent TGC
from 8.71m depth, including 12m at 5.79 per cent TGC.
-- Drill hole AITDD17005 intercepted 41.1m at 4.39 per cent TGC
from start of hole, including 28.4m at 5.1 per cent TGC and 4m at
7.71 per cent TGC.
It should be noted that the mineralisation intercepts are the
down-hole widths and are not the true width of mineralisation. All
samples were prepared and analysed by ALS Finland Oy's laboratory
in Outokumpu.
Composite samples for metallurgical testwork have been
dispatched to SGS Mineral Services in Canada, including an average
grade composite for the main conductive zone, a higher-grade
composite for the main conductive zone/near-surface mineralisation,
and a higher-grade composite for the parallel conductive zones.
Results are expected in the summer.
Financials
-- Condensed loss before and after taxation attributable to the
owners of the parent of GBP207,747 which is GBP41,188 higher than
last year (2016: loss of GBP166,559). The higher loss is
predominantly due to higher share based payment expense following
the grant of options on 26 January 2017. Director fees were also up
over last year as Chris Davies joined in April 2016 so there was no
charge for him in the first quarter of 2016.
-- Basic and diluted loss per share for the period of 0.041
pence was 11 per cent higher than last year (2016: loss of
0.037p).
-- Cash and cash equivalents held at the period end amounted to
GBP1,249,594. Post the end of the period under review, the Company
announced that 23,076,923 new ordinary shares were issued to raise
approximately GBP1.5 million (before expenses) at a price of 6.5
pence per new ordinary share.
Corporate
-- On 27 January 2017, the Company announced that options have
been granted over a total of 4,500,000 ordinary shares of one pence
each, representing approximately 0.9 per cent of the issued share
capital of the Company at the date of grant. 2,500,000 options were
granted to Chris Davies, Non-executive Director, and 2,000,000
options were granted to Rasmus Blomqvist, Exploration Manager. This
award of options recognised the excellent contribution made by
Rasmus and Chris to the success of the Company during 2016.
The exercise price of the options is 12 pence per share, which
is equal to the closing mid-market price of the shares on 25
January 2017, the date immediately preceding the date of grant. The
options vest over a two-year period with 50 per cent vesting on the
first anniversary of grant and 50 per cent on the second
anniversary of grant. The options are valid for five years from the
date of grant.
Kurt Budge, CEO, and Bevan Metcalf, Chairman, have decided to
take their annual award subject to the grant of the Exploitation
Concession for Kallak with the number of options and terms of the
award to be decided at that time.
-- The total number of ordinary shares in circulation at the
date of this announcement is 525,707,254 ordinary shares of GBP0.01
each, with each share carrying the right to one vote. The Company
does not hold any ordinary shares in treasury.
Competent Person Review
The information in this announcement has been reviewed by Mr.
Rasmus Blomqvist, a Competent Person who is a Member of the
Australasian Institute of Mining and Metallurgy. Mr. Rasmus
Blomqvist has sufficient experience, that is relevant to the style
of mineralisation and type of deposit taken into consideration, and
to the activity being undertaken, to qualify as a Competent Person
as defined in the 2012 Edition of the "Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
Mr. Rasmus Blomqvist is a full-time employee of Oy Fennoscandian
Resources AB, a 100 per cent owned subsidiary of Beowulf.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
David Porter / Craig Francis Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS TO MARCH 2017
(Unaudited) (Unaudited) (Audited)
3 months 3 months Year ended
ended ended
31 March 31 March 31 December
2017 2016
GBP 2016
GBP GBP
Continuing operations
Administrative
expenses (208,521) (167,535) (638,573)
--------------------- ------------ -------------
Operating loss (208,521) (167,535) (638,573)
Finance income 599 976 5,344
--------------------- ------------ -------------
Loss before and
after taxation (207,922) (166,559) (633,229)
===================== ============ =============
Loss attributable
to:
Owners of the parent (207,747) (166,559) (632,125)
Non-controlling
interests (175) - (1,104)
(207,922) (166,559) (633,229)
===================== ============ =============
Loss per share
attributable to
the ordinary equity
holder of the parent:
Basic and diluted
(pence) (0.041) (0.037) (0.130)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2017
(Unaudited) (Unaudited) (Audited)
As at As at As at
31 March 31 March 31 December
2017 2016 2016
GBP
GBP GBP
ASSETS
Non-current assets
Intangible assets 7,455,603 6,292,325 7,186,576
Property, plant
and equipment 40,542 16,155 23,511
Loans and other
financial assets 5,496 51,953 5,503
------------- ------------- -------------
7,501,641 6,360,433 7,215,590
------------- ------------- -------------
Current assets
Trade and other
receivables 71,975 84,927 51,766
Cash and cash equivalents 1,249,594 1,493,024 1,609,219
------------- ------------- -------------
1,321,569 1,577,951 1,660,985
------------- ------------- -------------
TOTAL ASSETS 8,823,210 7,938,384 8,876,575
============= ============= =============
EQUITY
Shareholders' equity
Share capital 5,026,302 4,792,969 5,026,302
Share premium 16,879,241 16,167,782 16,879,241
Revaluation reserve 25,664 (30,000) 25,664
Merger Reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share based payment
reserve 315,911 137,608 237,803
Translation reserve (529,970) (724,109) (464,882)
Accumulated losses (13,274,909) (12,632,687) (13,067,163)
------------- ------------- -------------
8,626,390 7,895,714 8,821,116
Non-controlling
interests (158,777) (157,918) (158,593)
------------- ------------- -------------
TOTAL EQUITY 8,467,613 7,737,796 8,662,523
------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other
payables 355,597 200,588 214,052
------------- ------------- -------------
TOTAL LIABILITIES 355,597 200,588 214,052
------------- ------------- -------------
TOTAL EQUITY AND
LIABILITIES 8,823,210 7,938,384 8,876,575
============= ============= =============
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
For the 3 months ended 31 March 2017
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England. The
Company's registered office is 201 Temple Chambers, 3-7 Temple
Avenue, London, EC4Y 0DT. This consolidated financial information
comprises the Company and its subsidiaries (collectively the
'Group' and individually 'Group companies'). The Group is engaged
in the acquisition, exploration and evaluation of natural resources
assets and has not yet generated revenues.
2. Basis of preparation
The condensed consolidated financial information has been
prepared on the basis of the recognition and measurement
requirements of International Financial Reporting Standards (IFRS)
as adopted by the European Union (EU) and implemented in the UK.
The accounting policies, methods of computation and presentation
used in the preparation of the interim financial information are
the same as those used in the Group's audited financial statements
for the year ended 31 December 2016.
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 three months
ended 31 March 2017 and 31 March 2016 is unaudited, and has not
been reviewed by the auditors. The financial information for the
year ended 31 December 2016 has been derived from the Group's
audited financial statements for the year. The auditor's report on
the statutory financial statements for the year ended 31 December
2016 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.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary owners of the parent by the weighted
average number of ordinary shares of 502,630,331 (31 March 2016:
449,289,778 and 31 December 2016: 472,525,290) outstanding during
the period. There is no difference between the basic and diluted
loss per share.
4. Called up share capital
(Unaudited) (Unaudited) (Audited)
31 March 31 March 31 December
2017 2016 2016
GBP GBP GBP
Allotted, issued and
fully paid
Ordinary shares of 1p
each 5,026,302 4,792,969 5,026,302
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
For the 3 months ended 31 March 2017
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2016 430,313,824
Issued during the period 48,983,174
-------------
Balance at 31 March 2016 479,296,998
Issued during the period 23,333,333
-------------
Balance at 31 December 2016 and 31 March
2017 502,630,331
-------------
5. Intangible Assets: Group
Exploration costs As at As at
31 March 31 December
2017 2016
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January 7,186,576 5,588,270
Additions for the year 287,525 968,460
Impairments recognised - -
Foreign exchange movements (18,499) 629,846
7,455,602 7,186,576
============ =============
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at 31
31 March December
2017 2016
(Unaudited) (Audited)
GBP GBP
Kallak 6,451,590 6,438,283
Nautijaur 24,848 24,912
Åtvidaberg 158,370 153,927
Ågåsjiegge 7,239 7,257
Sala 2,366 2,372
Haapamäki 151,433 141,944
Kolari1 108,264 99,554
Piippumäki 130,759 119,087
Viistola 115,679 107,369
Pitkäjärvi 305,054 91,871
7,455,602 7,186,576
============ ==========
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
For the 3 months ended 31 March 2017
Total Group exploration costs of GBP7,455,602 are currently
carried at cost in the financial statements. During the period, no
impairment provision was recognised (2016: GBPNil).
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.
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 2016, 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 condensed financial statements as at 31
March 2017 as an intangible exploration licence with a carrying
value of GBP6,451,590. 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. Management
have considered the status of the application for the Exploitation
Concession and in their judgement, they believe it is appropriate
to be optimistic about the chances of being awarded the
Exploitation Concession and thus have not impaired the project.
6. Events after the Reporting Date
On 17 May 2017, 23,076,923 new ordinary shares were issued to
raise approximately GBP1.5 million (before expenses) at a price of
6.5 pence per new ordinary share.
7. Availability of Annual Report and Financial Statements
Copies of the Company's Annual Report and Financial Statements
are expected to be posted to those shareholders who have requested
a copy on or around 5 June, 2017 and are also available to download
from the Company's website at www.beowulfmining.com.
The Annual Report and Financial Statements will also be made
available for inspection at the Company's registered office during
normal business hours on any weekday. Beowulf Mining plc is
registered in England and Wales with registered number
02330496.
** Ends **
This information is provided by RNS
The company news service from the London Stock Exchange
END
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