TIDMBRES
RNS Number : 6051O
Blencowe Resources PLC
02 June 2020
Date: 2 June 2020
Blencowe Resources Plc
("Blencowe" or the "Company")
Interim Financial Statements
for the six month period ended 31 March 2020
The Company is pleased to announce its Interim Results for the
six-month period to 31 March 2020.
Electronic copies of the report will be available at the
Company's website www.blencoweresourcesplc.com
For further information please contact:
Blencowe Resources Plc
Cameron Pearce /
Sam Quinn www.blencoweresourcesplc.com
Tel: +44 (0)1624 681 250
sam@blencoweresourcesplc.com
Brandon Hill Capital Limited
Jonathan Evans (Corporate Finance) Tel: +44 (0)20 3463 5000
jonathan.evans@brandonhillcapital.com
Interim Management Report
Dear shareholder,
I am pleased to present the interim report and accounts for the
six month period to 31 March 2020 for Blencowe Resources Plc.
As shareholders are aware, the past few months have seen the
Company pass significant milestones with the reverse takeover of
Consolidated African Resources (Uganda) Ltd, ("CARU"), the owner of
the Orom Graphite Project in northern Uganda, fundraise of GBP2m
and relisting on the LSE. The Company has thereby met its initial
objective in identifying and acquiring an early stage natural
resources project with tremendous growth potential.
However, the Transaction completed on 28 April after the
reporting date for these interim accounts, and therefore they do
not show the financial effect of the Transaction. There accounts,
therefore show the position prior to the transaction. For an
overview of how the accounts would appear on completion of the
Transaction, please refer to Part VIII "Pro Forma Financial
Information Of The Enlarged Group" of the prospectus issued by the
Company on 30 March 2020.
In the period covered by these financial statements, I and my
co-directors, with the support of our new management team and
professional advisers, were fully engaged in preparing for the
Transaction. The balance sheet at 31 March shows net liabilities of
GBP177,000 as a result of the expenditure incurred in connection
with the Transaction. The issue of shares for cash and to acquire
CARU restored the Company to a positive net asset position, and the
Company is now well funded to meet the next stage of its
development plans.
The Orom-Cross Graphite Project is a potential world class
graphite project both by size and end-product quality, with circa
75% of the resource expected to comprise of the most desirable and
high value jumbo, extra-large and large flake product. The deposit,
estimated to be in excess of 3 billion tonnes, presents as a large,
shallow open-pitable mine, with anticipated low strip ratio and
free dig operations, suggesting future OPEX and CAPEX within the
lowest quartile when compared to other producers. A 21-year Mining
Licence was awarded in 2019, significantly de-risking any
development. Whilst the travel restrictions imposed as a result of
COVID-19 have inhibited progress in recent weeks, this does not
detract from the long-term economic attractiveness of the project.
The Company has now mobilised drill teams to site to recommence the
test drilling program.
I would like to thank the team for their support in the launch
of this exciting journey, and I thank shareholders for investing in
the Company's future.
Responsibility Statement of the Directors in respect of the
Interim Report
The Directors are responsible for preparing the Interim
Financial Statements in accordance with applicable law and
regulations. In addition, the Directors have elected to prepare the
Interim Financial Statements in accordance with International
Financial Reporting Standards ("IFRSs"), as adopted by the European
Union ("EU").
The Interim Financial Statements are required to give a true and
fair view of the state of affairs of the Company and of the profit
or loss of the Company for that period.
In preparing these Interim Financial Statements, the Directors
are required to:
-- select suitable accounting policies and then apply them consistently;
-- present information and make judgements that are reasonable,
prudent and provides relevant, comparable and understandable
information.
-- provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users to
understand the impact of particulars transactions, other events and
conditions on the entity's financial position and financial
performance; and
-- make an assessment of the Company's ability to continue as a going concern.
The Directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time its
financial position of the Company to enable them ensure that the
financial statements comply with the requirements of the Companies
Act 2006. They have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Company
and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and Interim Financial Statements. Legislation
governing the preparation and dissemination of Interim Financial
Statements may differ from one jurisdiction to another.
We confirm that to the best of our knowledge:
-- the Interim Financial Statements , prepared in accordance
with International Financial Reporting Standards as adopted by the
EU, give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company for the period;
-- the Director's report includes a fair review of the
development and performance of the business and the position of the
company, together with a description of the principal risks and
uncertainties that they face; and
-- the annual report and financial statements, taken as a whole,
are fair, balanced and understandable and provide the information
necessary for shareholders to assess the company's performance,
business model and strategy.
Statement of Comprehensive Income
for the six month period ended 31 March 2020
6 months ended 6 months ended 12 months ended
31 Mar 2020 31 Mar 2019 30 Sep 2019
(Restated)
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Administrative fees and other expenses 5 (481,752) (82,973) (243,119)
--------------- --------------- ----------------
Operating loss (481,752) (82,973) (243,119)
Finance costs - -
--------------- --------------- ----------------
Loss before tax (481,752) (82,973) (243,119)
Income tax - - -
Loss for the period and total comprehensive loss for the
period (481,752) (82,973) (243,119)
--------------- --------------- ----------------
Basic and diluted loss per share (pence) 7 (1.52) (0.38) (0.93)
There was no other comprehensive income for the period ended on
31 March 2020.
Statement of Financial Position as at 31 March 2020
As at As at As at
31 Mar 2020 31 Mar 2019 30 Sept 2019
(Restated)
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Current assets
Trade and other receivables 6 252,693 - 256,854
Cash and cash equivalents 88,249 206,794 141,992
Total current assets 340,942 206,794 398,846
Current liabilities
Creditors: Amounts falling due within one year 518,643 33,645 111,724
------------- ---------------- --------------
Total current liabilities 518,643 33,645 111,724
Net (liabilities) / assets (177,701) 173,149 287,122
------------- ---------------- --------------
Equity
Share capital 450,000 400,000 450,000
Share premium 209,983 - 209,983
Warrants reserves 50,707 19,642 33,778
Retained earnings (888,391) (246,493) (406,639)
------------- ---------------- --------------
Total equity (177,701) 173,149 287,122
------------- ---------------- --------------
Statement of Changes in Equity for the six month period ended 31
March 2020
Share capital Share premium Warrant reserves Retained earnings Total equity
GBP GBP GBP GBP GBP
Balance as at 30 Sep 2018 400,000 - 5,506 (163,520) 241,986
Total comprehensive loss for 6
months
Loss for the period - - - (82,973) (82,973)
-------------- -------------- ----------------- ------------------ -------------
Total comprehensive loss - - - (82,973) (82,973)
Contributions from equity
holders
Issue of warrants - - 14,136 - 14,136
-------------- -------------- ----------------- ------------------ -------------
Total contributions from equity
holders - - 14,136 - 14,136
Balance as at 31 Mar 2019 400,000 - 19,642 (246,493) 173,149
-------------- -------------- ----------------- ------------------ -------------
Total comprehensive loss for 6
months
Loss for the period - - - (160,146) (160,146)
-------------- -------------- ----------------- ------------------ -------------
Total comprehensive loss - - - (160,146) (160,146)
Contributions from equity
holders
New shares issued 50,000 350,000 - - 400,000
Share issued costs - (140,017) - - (140,017)
Issue of warrants - - 14,136 - 14,136
-------------- -------------- ----------------- ------------------ -------------
Total contributions from equity
holders 50,000 209,983 14,136 - 274,119
Balance as at 30 Sep 2019 450,000 209,983 33,778 (406,639) 287,122
-------------- -------------- ----------------- ------------------ -------------
Total comprehensive loss for 6
months
Loss for the period - - - (481,752) (481,752)
-------------- -------------- ----------------- ------------------ -------------
Total comprehensive loss - - - (481,752) (481,752)
Contributions from equity
holders
Issue of warrants - - 16,929 - 16,929
-------------- -------------- ----------------- ------------------ -------------
Total contributions from equity
holders - - 16,929 - 16,929
Balance as at 31 Mar 2020 450,000 209,983 50,707 (888,391) (177,701)
-------------- -------------- ----------------- ------------------ -------------
Statement of Cash Flows for the six month period ended 31 March
2020
As at As at As at
31 Mar 2020 31 Mar 2019 30 Sept 2019
(Restated)
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Operating activities
Loss after tax 5 (481,752) (82,973) (243,119)
Share based payment 16,929 14,136 28,272
Changes in working capital
Decrease/(increase) in trade and other receivables 3,497 - (256,853)
Increase/(decrease) in trade and other payables 407,583 (2,458) 75,620
------------- ----------------- --------------
Net cash flows from operating activities (53,743) (71,295) (396,080)
Financing activities
Shares issued - - 400,000
Shares issued (cost) - - (140,017)
------------- ----------------- --------------
Net cash flows from financing activities - - 259,983
Increase in cash and short-term deposits (53,743) (71,295) (136,097)
Cash and short-term deposits brought forward 141,992 278,089 278,089
Cash and cash equivalents at end of period 88,249 206,794 141,992
------------- ----------------- --------------
Notes to the Financial Statements for the six month period ended
31 March 2020
1. General
Blencowe Resources Plc (the "Company") is a public limited
company incorporated and registered in England and Wales on 18
September 2017 with registered company number 10966847 and its
registered office situated in England and Wales at 25 Bilton Road,
Rugby, CV22 7AG.
The Company did not trade during the period under review.
2. Accounting Policies
Basis of preparation
The interim financial statements of Blencowe Resources Plc are
unaudited condensed financial statements for the 6 month period
ended 31 March 2020.
The accounting policies applied by the Company in these interim
financial statements, are the same as those applied by the Company
in its consolidated financial statements, and have been prepared on
the basis of the accounting policies expected to apply for the
financial year to 30 September 2019 which have been prepared in
accordance with IFRS as adopted by EU for. The Company Financial
Statements has been prepared using the measurement bases specified
by IFRS each type of asset, liability, income and expense.
The Company Financial Statements are presented in GBP, which is
the Company's functional currency. All amounts have been rounded to
the nearest pound, unless otherwise stated.
Comparative figures
The comparative figures have been presented as the Company
Financial Statements cover the 6 month period ended 31 March 2019
and the 12 month period ended 30 September 2019.
It was noted that in the 31 March 2019 period, warrant costs of
GBP14,136 were not accrued for. Therefore, the 31 March 2019
figures have been restated to show its correct allocation of costs
and a corresponding reduction of total equity. The basic and
diluted loss per share for the period ended in 31 March 2019 has
increased from 0.37p to 0.38p.
3. Critical accounting estimates and judgments
In preparing the Company's Interim Financial Statements, the
Directors have to make judgments on how to apply the Company's
accounting policies and make estimates about the future. The
Directors do not consider there to be any critical judgments that
have been made in arriving at the amounts recognised in the Company
Financial Statements.
4. Significant accounting policies
The accounting policies adopted are consistent with those
followed in the preparation of the annual financial statements of
Blencowe Resources Plc for the year ended 30 September 2019. A copy
of these financial statements is available on the Company website
at https://blencoweresourcesplc.com/
5. Administrative fee and other expenses
6 months
ended 6 months 12 Months
31 Mar ended ended
2020 31 Mar 2019 30 Sep 2019
(Restated)
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Directors' remuneration 45,052 29,881 75,077
Professional fees 220,701 31,279 54,203
Listing fees 77,830 - 19,552
Audit fees 75,000 3,000 19,200
Share issue/warrant cost 16,930 14,136 28,272
Project Costs 10,530 2,919 12,211
Provision 663 - 11,172
Administration fees 9,000 - 8,159
Broker fees 2,500 - 5,000
Printing expenses 12,857 - -
Travelling expenses 7,260 1,393 4.685
Miscellaneous fees 3,430 365 5,588
------------
Total 481,752 82,973 243,119
------------ ------------- -------------
The Company did not employ any staff during the period other
than Directors. The Directors are the only members of key
management and their remuneration related solely to short term
employee benefits.
6. Trade and other receivables
6 months
ended 6 months 12 Months
31 Mar ended ended
2020 31 Mar 2019 30 Sep 2019
(Restated)
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Loan to CARU 257,184 - 223,431
Other receivables 7,344 - 37,495
Prepayments - - 7,100
------------ ------------- -------------
264,528 - 268,026
Less: provision (11,835) - (11,172)
------------ ------------- -------------
Total 252,683 - 256,854
------------ ------------- -------------
7. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
6 months ended 6 months ended 12 Months ended
31 Mar 2020 31 Mar 2019 30 Sep 2019
(Unaudited) (Unaudited) (Audited)
------------------------------------------------------------------ --------------- --------------- ----------------
Earnings GBP GBP GBP
Loss from continuing operations for the period attributable to
the equity holders of the Company (481,852) (82,973) (243,119)
Number of shares
Weighted average number of Ordinary Shares for the purpose of
basic and diluted earnings per
share 31,666,664 21,666,664 26,187,212
------------------------------------------------------------------ --------------- --------------- ----------------
Basic and diluted loss per share (pence) (1.52) (0.38) (0.93)
------------------------------------------------------------------ --------------- --------------- ----------------
There are no potentially dilutive shares in issue.
8. Related party transactions
The are no related party transactions during the period except
for the Directors' remuneration, which has been disclosed in note
5.
9. Events after the reporting date
On 23 April 2020 the Company's Annual General Meeting took place
and shareholders approved the acquisition from Consolidated Africa
Limited ("CRA") and New Energy Minerals Africa Pty Ltd ("New
Energy") of 100% of the share capital of Consolidated African
Resources (Uganda) Ltd ("CARU") on issue of 25,000,000 Ordinary
Shares to CRA and the issue of 8,333,333 Ordinary Shares to New
Energy. CARU is a Ugandan registered company and is the owner of
the Orom Graphite Project in northern Uganda.
On 28 April, the Company completed the transaction to acquire
CARU and raised GBP2m of gross proceeds at 6p per share through a
placing of GBP1.5m and subscription by an African based strategic
investor for GBP500,000. On the same day, the Ordinary Shares were
readmitted to the Standard List of the London Stock Exchange.
Following issue of the above shares to placees and subscribers,
the Company has a total of 98,333,326 Ordinary Shares in issue.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FFFVIRIILIII
(END) Dow Jones Newswires
June 02, 2020 02:00 ET (06:00 GMT)
Blencowe Resources (LSE:BRES)
Historical Stock Chart
From Sep 2024 to Oct 2024
Blencowe Resources (LSE:BRES)
Historical Stock Chart
From Oct 2023 to Oct 2024