26 February
2021
Conroy Gold and Natural Resources plc
(“Conroy” or “the Company”)
Half-yearly
results for the six months ended 30 November
2020
Conroy (AIM: CGNR), the Irish-based resource company exploring
and developing gold projects in Ireland and Finland, is pleased to announce its results
for the six months ended 30 November 2020. Details of these
can be found below and a full copy of the Statement can be viewed
on the Company’s website.
Highlights:
- Excellent results were reported from the Company’s
exploration programme including:
- New gold discoveries made in the Glenish Licence
area
- New geological structures outlined over the Cargalisgorran
area of the Clay Lake gold target
- £1,255,333 raised in the period
Post period end-highlights:
- Letter of Intent signed between Demir Export A.S. and
Conroy for Joint Venture
- Demir Export to expend in work commitments (except Demir
Export in-house costs, Operator fees and Minimum Regulatory Work
Commitments) of €4.5 million to earn-in 25% option in the project
in first phase of earn-in period
- Demir Export to expend in work commitments (except Demir
Export in-house costs, Operator fees and Minimum Regulatory Work
Commitments) of an additional €4.5 million to earn an additional
15% option in second phase of earn-in period, again in the
project
- Expenditure by Demir Export of additional funds to reach
construction-ready status to earn-in additional 17.5% Option in
Phase 3 of a given development thus increasing Demir Export’s
holding to a total of 57.5% in that development
- At construction-ready status at Clontibret and /or
other developments, Conroy Gold to
retain 42.5% interest with various options including a
“Carry Loan” on capital expenditure to commercial production whilst
still retaining 25% interest
- Under the terms of the letter of intent, Demir Export to
make cash payment of €1 million to Conroy
Gold on final approval of the definitive
agreement
- Discussions with Anglo Asian Mining plc were ended
immediately on signing of LOI
Professor Richard Conroy,
Chairman, commented:
“My colleagues and I look forward
very much to working with the Demir Export team on the joint
venture partnership-Project Inis, and building the foundations for
a long term, successful relationship. The comprehensive nature of
this Letter of Intent should facilitate us progressing through the
next stage of the transaction.
Demir Export has the mining expertise
and the financial resources not only to bring the Clontibret gold
deposit to construction ready status and into operation as a mine,
but also to advance the significant gold potential of the other
licences along the gold trend to the same status.”
For further information please contact:
Conroy Gold and
Natural Resources plc |
Tel: +353-1-479-6180 |
Professor Richard
Conroy, Chairman |
|
Allenby Capital
Limited (Nomad) |
Tel: +44-20-3328-5656 |
Nick Athanas/Nick
Harriss |
|
Brandon Hill
Capital Limited (Joint Broker) |
Tel: +44-20-3463-5000 |
Jonathan Evans |
|
First Equity
Limited (Joint Broker) |
Tel: +44-20-7330-1883 |
Jason Robertson |
|
Lothbury Financial
Services |
Tel: +44-20-3290-0707 |
Michael Padley |
|
Hall
Communications |
Tel: +353-1-660-9377 |
Don Hall |
|
Visit the website at: www.conroygold.com
Chairman’s
Statement
I have great pleasure in presenting the Company’s Half-Yearly
Report for the six-month period ended 30 November 2020. The
period has been one of very successful progress.
During the period an approach was received from Demir Export
A.S. (“Demir Export”) proposing a joint venture partnership with
the Company on an earn-in basis over the twelve licences which the
Company holds in the Longford-Down Massif. This approach lead to,
on 25 February 2021, a Letter of
Intent (“LOI”) being signed with Demir Export and Conroy
terminating the previous joint venture discussions with Anglo Asian
Mining plc (“AAZ”).
The terms of the joint venture proposal from Demir Export were
considered by the Board to be superior in many ways to the terms
which were being offered by AAZ, details of which were announced by
Conroy on 21 July 2020. As such, the
Board unanimously resolved to accept and sign the LOI from Demir
Export and to terminate discussions with AAZ. Immediately on
signing the LOI the Company informed AAZ that the discussions with
AAZ were terminated.
Demir Export is a long-established mining company with interests
in iron, coal, gold and base metals, including zinc and copper, in
Turkey (Demir is the Turkish for
iron), and has a strong in-house technical team with mining and
exploration expertise. It brings over 60 years of mine operating
experience to bear on the project and places a strong emphasis on
the adoption of international environmental, and health and safety
management standards.
Demir Export belongs to the Koç family who also own the largest
industrial conglomerate in Turkey,
a Fortune Global 500 Company and Turkey’s leading investment
holding company.
Joint Venture Project with Demir
Export
The primary focus of the Demir Export joint venture project,
named Project Inis, is the development of the gold deposit in the
Clontibret licence to construction-ready status and bringing it
into operation as a gold mine. The parties further aim is to have
the other licences given the same status one after the other, hence
providing a foundation for a long-term relationship between the
parties.
The parties will carry on discussions for the transaction on an
exclusive basis and it is acknowledged by both Conroy Gold and Demir Export that time shall be
of the essence in finalising a definitive agreement between the
parties.
Key Terms of the proposed Joint
Venture
The LOI sets out the key commercial terms and conditions that
Conroy Gold and Demir Export have
negotiated and agreed on in relation to Project Inis. The document
addresses in detail the key terms and proposed structure of the
earn-in together with setting out the respective responsibilities
of the parties in relation to operatorship and the functions of the
Joint Management Committee. Investment by Demir Export will be
directly into special purpose companies holding each licence or
group of licences.
Demir Export will make a cash payment of €1 million to the
Company upon final approval of the Definitive Agreement in
recognition of the prior work carried out in relation to the
project.
The Earn-in Period will be divided into three phases:
Phase 1: expenditure by Demir Export of €4.5 million (except
Demir Export in-house costs, Operator fees and Minimum Regulatory
Work Commitments) will earn a 25% interest in the project.
Phase 2: expenditure by Demir Export of an
additional €4.5 million (except Demir Export in-house
costs, Operator fees and Minimum Regulatory Work Commitments) will
earn an additional 15% in the project.
Phase 3: expenditure by Demir Export of the additional funds
required to reach declaration of construction-ready status (i.e. a
bankable feasibility study or equivalent) - for Clontibret and/or
other mine developments will earn an additional 17.5% interest thus
increasing Demir Export’s holding to a total of 57.5% in the
development(s).
Conroy Gold, after construction
ready status is achieved, may either retain its 42.5% interest in
Clontibret and /or other mine developments by participating pro
rata in the expenditures for mine construction, or avail itself of
a number of options including diluting its interest or being
carried for the expenditures through to commercial production with
a “Carry Loan” for a 25% interest with pay back on 50% or
greater portion of the net profits due to Conroy Gold within a maximum payback period of
six years.
It is envisaged that initially the Licences in Project Inis may
be divided into three Licence Groups, namely the Clontibret
Licence, the Northern Ireland Licences, and the remaining nine
licences in the Republic of
Ireland, with separate jointly owned companies, the Joint
Venture Companies, owning the Licences or Licence Groups.
A Joint Management Committee (“JMC”) will be set up to oversee,
plan and execute the various plans, in the work programme of
Project Inis. The JMC will be comprised of four members, two from
each party, but with a Demir Export representative having a casting
vote, with appropriate minority protection rights for Conroy Gold. It is anticipated that Conroy Gold will be appointed as Operator for an
initial two-year period after which the matter of operatorship will
be reviewed.
The proposed Demir Export joint venture remains subject to,
inter alia, the completion of due diligence and the entering
into of definitive documentation including the final joint venture
agreement. In addition, the proposed joint venture, should it
proceed on the basis anticipated under the LOI, will be subject to
the Company seeking shareholder approval as it would be classified
as a fundamental change of business pursuant to Rule 15 of the AIM
Rules for Companies. For the avoidance of doubt, Conroy Gold would, on completion, continue to be
classified as an operating company and not a cash shell pursuant to
AIM Rule 15. Furthermore, the proposed joint venture will be
subject to any other relevant Stock Exchange requirements, and to
government or any other regulatory approvals. As such there can be
no guarantee that the proposed joint venture will complete nor as
to the final terms or timing of the Demir Export JV however that it
is agreed between the parties that the terms of the LOI will form
the basis for the definitive agreement.
Exploration Results
Excellent results were reported from the Company’s exploration
programme during the period on its prospecting licences in the
Longford-Down Massif in Ireland.
New gold discoveries were made in the Company’s Glenish Licence
area and new geological structures outlined from a geophysical
survey over the Cargalisgorran area of the Company’s Clay Lake gold
target in Northern Ireland.
COVID-19
The onset of the COVID-19 pandemic impacted on Company
activities in the last quarter of the financial year. In
accordance with the Irish Governments COVID-19 related public
health measures and public health advice staff worked remotely.
Since the outbreak of the COVID-19 pandemic, the Company has
taken necessary measures in accordance with Government guidelines
to protect the health, safety and wellbeing of its employees,
contractors and partners in Ireland and Finland. COVID-19 continues to limit field and
laboratory work given the restrictions on operations and movement.
However other work continues in relation to the Company’s
exploration and development programme.
Directors and executives took a 50% reduction in fees and
salaries during the 6-month period under review while technical and
field staff took a 25% reduction in salaries for the period June to
October 2020.
New Director
Howard Bird, an internationally
experienced geoscientist with over thirty years’ experience in
mining exploration and development joined the Board of the Company
in July 2020. I would like to welcome
Howard to the Board. He has already made significant contributions
to many aspects of the Company’s activities.
Finance
The loss after taxation for the half year ended 30 November 2020 amounted to €703,294 (six-month
period ended 30 November 2019: loss
of €278,008). The increased loss was due mainly to a non-cash
charge of €395,097 in respect of the fair value of warrants issued
in both July and August 2020. The
majority of these warrants were issued alongside the fundraising
which the Company carried out in August 2020.
During the period under review the Company raised a total of
£1,255,333 of which £800,000 related to a fundraising in
August 2020 and a further £455,333
was raised following the exercise of warrants during the period
between July 2020 and November
2020. These funds were used to advance the Company’s gold
exploration licences and also for general working capital
purposes.
As of 30 November 2020, the
Company’s net assets amounted to €18,696,306 (30 November 2019: €17,595,318). Cash and cash
equivalents were €503,879 as of 30 November
2020.
Directors and Staff
I would like to thank my fellow directors, staff and consultants
for their support and dedication, which has enabled the continued
success of the Company.
Outlook
I look forward to the Company continuing the excellent progress
which it has made during the half-year and to a very positive and
active further six months.
Yours faithfully,
___________________________
Professor Richard Conroy
Chairman
26 February 2021
Condensed
consolidated income statement and condensed consolidated statement
of comprehensive income
for the six-month
period ended 30 November 2020
Condensed consolidated income
statement |
|
|
|
|
|
|
|
Note |
Six month period
ended 30 November 2020
(Unaudited) € |
|
Six
month period ended 30 November 2019
(Unaudited) € |
|
Year ended 31 May
2020
(Audited) € |
|
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
Operating expenses |
|
(703,298) |
|
(278,008) |
|
(677,380) |
Finance income – interest |
|
4 |
|
- |
|
- |
|
|
|
|
|
|
|
Loss before taxation |
|
(703,294) |
|
(278,008) |
|
(677,380) |
|
|
|
|
|
|
|
Income tax expense |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
Loss for the financial
period/year |
|
(703,294) |
|
(278,008) |
|
(677,380) |
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
Basic and diluted loss per ordinary
share |
2 |
(€0.0240) |
|
(€0.0117) |
|
(€0.0278) |
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of
comprehensive income
|
|
Six month period
ended 30 November 2020
(Unaudited) € |
|
Six month period
ended 30 November 2019
(Unaudited) € |
|
Year ended 31 May
2020 (Audited) € |
|
|
|
|
|
|
|
Loss for the financial
period/year |
|
(703,294) |
|
(278,008) |
|
(677,380) |
|
|
|
|
|
|
|
Income/expense recognised in other
comprehensive income |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
Total comprehensive expense for
the financial period/year |
|
(703,294) |
|
(278,008) |
|
(677,380) |
Condensed consolidated statement of financial
position as at 30 November
2020
|
Note |
30 November 2020
(Unaudited) |
|
30 November 2019
(Unaudited) |
|
Year ended 31 May
2020 (Audited) |
|
|
€ |
|
€ |
|
€ |
Assets |
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Intangible assets |
4 |
22,525,305 |
|
22,077,517 |
|
22,330,743 |
Property, plant and
equipment |
|
10,416 |
|
10,406 |
|
10,692 |
Total non-current
assets |
|
22,535,721 |
|
22,087,923 |
|
22,341,435 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash
equivalents |
|
503,879 |
|
95,361 |
|
117,270 |
Other receivables |
|
229,608 |
|
74,565 |
|
89,948 |
Total current
assets |
|
733,487 |
|
169,926 |
|
207,218 |
|
|
|
|
|
|
|
Total assets |
|
23,269,208 |
|
22,257,849 |
|
22,548,653 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Capital and
reserves |
|
|
|
|
|
|
Called up share
capital |
|
32,260 |
|
23,693 |
|
26,214 |
Called up deferred
share capital |
|
10,504,431 |
|
10,504,431 |
|
10,504,431 |
Share premium |
|
14,472,322 |
|
12,727,194 |
|
13,084,647 |
Capital conversion
reserve fund |
|
30,617 |
|
30,617 |
|
30,617 |
Share based payments
reserve |
|
919,893 |
|
477,393 |
|
574,875 |
Other reserve |
|
8,333 |
|
- |
|
8,333 |
Retained losses |
|
(7,271,550) |
|
(6,168,010) |
|
(6,583,802) |
Total equity |
|
18,696,306 |
|
17,595,318 |
|
17,645,315 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
Convertible loan |
5 |
367,941 |
|
350,000 |
|
357,802 |
Directors’ and former Directors’
loans |
6 |
- |
|
649,832 |
|
- |
Total non-current
liabilities |
|
367,941 |
|
999,832 |
|
357,802 |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Trade and other
payables: amounts falling due within one year |
|
3,627,554 |
|
3,662,669 |
|
3,885,704 |
Related party loans |
|
577,407 |
|
- |
|
659,832 |
Total current
liabilities |
|
4,204,961 |
|
3,662,669 |
|
4,545,536 |
|
|
|
|
|
|
|
Total liabilities |
|
4,572,902 |
|
4,662,531 |
|
4,903,338 |
|
|
|
|
|
|
|
Total equity and
liabilities |
|
23,269,208 |
|
22,257,849 |
|
22,548,653 |
Condensed consolidated statement of cash
flows
for the six-month
period ended 30 November 2020
|
|
|
|
|
|
|
Six month period
ended 30 November 2020
(Unaudited) € |
|
Six month period
ended 30 November 2019
(Unaudited) € |
|
Year ended 31 May
2020 (Audited) € |
Cash flows from operating
activities |
|
|
|
|
|
Loss for the financial
period/year |
(703,294) |
|
(278,008) |
|
(667,380) |
Adjustments for: |
|
|
|
|
|
Depreciation |
942 |
|
941 |
|
1,884 |
Share based payment |
395,097 |
|
- |
|
97,482 |
Interest expense |
10,139 |
|
- |
|
16,135 |
(Increase)/decrease in other
receivables |
(139,659) |
|
31,616 |
|
16,233 |
(Decrease)/increase in trade and
other payables |
(188,688) |
|
150,994 |
|
339,762 |
Net cash outflow from operating
activities |
(625,463) |
|
(94,457) |
|
(205,884) |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
Investment in exploration and
evaluation |
(194,562) |
|
(305,472) |
|
(558,698) |
Purchase of property plant and
equipment |
(667) |
|
- |
|
(1,229) |
Net cash used in investing
activities |
(195,229) |
|
(305,472) |
|
(559,927) |
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
Issue of share capital |
1,393,721 |
|
- |
|
359,974 |
Share issue cost |
(34,533) |
|
- |
|
(16,420) |
Advance from convertible loan |
- |
|
350,000 |
|
350,000 |
Advances from/(repayments to)
Directors and former Directors |
(82,425) |
|
98,000 |
|
(40,818) |
Advances from/(repayments to)
Karelian Diamond Resources P.L.C. |
(69,462) |
|
(30,009) |
|
45,046 |
Advances from related parties |
- |
|
- |
|
108,000 |
Net cash provided by financing
activities |
1,207,301 |
|
417,991 |
|
805,782 |
|
|
|
|
|
|
Increase/(decrease) in cash and
cash equivalents |
386,609 |
|
18,062 |
|
(39,971) |
Cash and cash equivalents at
beginning of financial period/year |
117,270 |
|
77,299 |
|
77,299 |
Cash and cash equivalents at end
of financial period/year |
503,879 |
|
95,361 |
|
117,270 |
Condensed
consolidated statement of changes in equity
for the six-month
period ended 30 November 2020
|
Share
capital |
Share
premium |
Capital conversion reserve fund |
Share-
based payment reserve |
Other
reserve |
Retained
deficit |
Total
equity |
|
€ |
€ |
€ |
€ |
€ |
€ |
€ |
Balance at 1 June 2020 |
10,530,645 |
13,084,647 |
30,617 |
574,875 |
8,333 |
(6,583,802) |
17,645,315 |
Share
issue |
6,046 |
1,387,675 |
- |
- |
- |
- |
1,393,721 |
Share issue
costs |
- |
- |
- |
- |
- |
(34,533) |
(34,533) |
Share based
payments |
- |
- |
- |
395,097 |
- |
- |
395,097 |
Transfer from
share-based payment reserve to retained deficit |
- |
- |
- |
(50,079) |
- |
50,079 |
- |
Loss for the
financial year |
- |
- |
- |
- |
- |
(703,294) |
(703,294) |
Balance at 30
November 2020 |
10,536,691 |
14,472,322 |
30,617 |
919,893 |
8,333 |
(7,271,550) |
18,696,306 |
Balance at 1 June 2019 |
10,528,124 |
12,727,194 |
30,617 |
751,293 |
- |
(6,163,902) |
17,873,326 |
Transfer from
share-based payment reserve to retained losses |
- |
- |
- |
(273,900) |
- |
273,900 |
- |
Loss for the financial
period |
- |
- |
- |
- |
- |
(278,008) |
(278,008) |
Balance at 30 November
2019 |
10,528,124 |
12,727,194 |
30,617 |
477,393 |
- |
(6,168,010) |
17,595,318 |
Share capital
The share capital comprises the nominal value share capital
issued for cash and non-cash consideration. The share capital also
comprises deferred share capital. The deferred share capital arose
through the restructuring of share capital which was approved at
General Meetings held on 26 February
2015 and 14 December 2015.
Authorised share capital:
The authorised share capital at 30
November 2020 comprised 11,995,569,058 ordinary shares of
€0.001 each, 306,779,844 deferred shares of €0.02 each, and
437,320,727 deferred shares of €0.00999 each (€22,500,000),
(30 November 2019: 11,995,569,058
ordinary shares of €0.001 each, 306,779,844 deferred shares of
€0.02 each, and 437,320,727 deferred shares of €0.00999 each
(€22,500,000)).
Share premium
The share premium reserve comprises the excess consideration
received in respect of share capital over the nominal value of the
shares issued.
Capital conversion reserve fund
The ordinary shares of the Company were re-nominalised from
€0.03174435 each to €0.03 each in 2001 and the amount by which the
issued share capital of the Company was reduced, was transferred to
the capital conversion reserve fund.
Share based payment reserve
The share based payment reserve represents the amount expensed
to the condensed consolidated income statement in addition to the
amount capitalised as part of intangible assets of share-based
payments granted which are not yet exercised and issued as shares.
During the six month period ended 30
November 2020 a number of unexercised warrants expired
resulting in a transfer of €50,079 from this reserve to retained
losses. During the six month period ended 30
November 2019 a number of unexercised warrants expired
resulting in a transfer of €273,900 from this reserve to retained
losses.
Retained losses
This reserve represents the accumulated losses absorbed by the
Company to the condensed consolidated statement of financial
position date.
The accompanying notes form an
integral part of these condensed consolidated financial
statements.
1. Accounting policies
Reporting entity
Conroy Gold and Natural Resources
plc (the “Company”) is a company domiciled in Ireland. The unaudited condensed consolidated
financial statements for the six month period ended 30 November 2020 comprise the condensed financial
statements of the Company and its subsidiaries (together referred
to as the “Group”).
Basis of preparation and statement of
compliance
Basis of preparation
The condensed consolidated financial statements have been
prepared in accordance with International Accounting Standard
(“IAS”) 34: Interim Financial Reporting.
The condensed consolidated financial statements do not include
all the information and disclosures required in the annual
consolidated financial statements, and should be read in
conjunction with the Group’s annual consolidated financial
statements as at 31 May 2020, which
are available on the Group’s website - www.conroygold.com . The
accounting policies adopted in the presentation of the condensed
consolidated financial statements are consistent with those
followed in the preparation of the Group’s annual consolidated
financial statements for the year ended 31
May 2020.
The condensed consolidated financial statements have been
prepared under the historical cost convention, except for
derivative financial instruments which are measured at fair value
at each reporting date.
The condensed consolidated financial statements are presented in
Euro (“€”). € is the functional currency of the Group.
The preparation of condensed consolidated financial statements
requires the Board of Directors and management to use judgements,
estimates and assumptions that affect the application of policies
and reported amounts of assets, liabilities, income and expenses.
Actual results may differ from those estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the financial period in
which the estimate is revised and in any future financial periods
affected. Details of critical judgements are disclosed in the
accounting policies detailed in the annual consolidated financial
statements.
The financial information presented herein does not amount to
statutory consolidated financial statements that are required by
Chapter 4 part 6 of the Companies Act 2014 to be annexed to the
annual return of the Company. The statutory consolidated financial
statements for the financial year ended 31
May 2020 were annexed to the annual return and filed with
the Registrar of Companies. The audit report on those consolidated
financial statements was unqualified.
These condensed consolidated financial statements were
authorised for issue by the Board of Directors on 26 February 2021.
Going concern
The Group incurred a loss of €703,294 for the six month period
ended 30 November 2020 (six month
period ended 30 November 2019:
€278,008). The Group had net current liabilities of €3,471,474 at
that date (30 November 2019:
€3,492,743).
The Board of Directors have considered carefully the financial
position of the Group and in that context, have prepared and
reviewed cash flow forecasts for the period to 31 January 2022.
In reviewing the proposed work programme for exploration and
evaluation assets and on the basis of the proceeds from the
fundraising and warrant exercises during the period and the
exercise of warrants subsequent to the period end date, the results
obtained from the exploration programme and the prospects for
raising additional funds as required, the Board of Directors are
satisfied that it is appropriate to prepare the condensed
consolidated financial statements on a going concern basis.
Recent accounting pronouncements
The following new standards, amendments to standards and
interpretations adopted and endorsed by the EU have been issued but
were not effective for the financial year ended 31 May 2020:
- Amendments to references to the Conceptual Framework in IFRS
Standards – Effective date 1 January
2020
- Amendments to IFRS 3 Business Combinations – Definition of a
Business – Effective date 1 January
2020
- Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate
Benchmark Reform – Effective date 1 January
2020
- Amendment to IFRS 16 about providing lessees with an exemption
from assessing whether a COVID-19-related rent concession is a
lease modification – Effective date 1 June 2020
The adoption of the above amendments to standards and
interpretations has been considered for the purposes of these
interim financial statements and is not considered material.
The following new standards and amendments to standards have
been issued by the International Accounting Standards Board but
have not yet been endorsed by the EU, accordingly none of these
standards have been applied in the current year. The Board of
Directors are currently assessing whether these standards once
endorsed by the EU will have any impact or a material impact on the
consolidated financial statements.
- Amendments to IFRS 10 and IAS 28: Sale or contribution of
assets between an investor and its associate or joint venture –
postponed indefinitely
- IFRS 1 amendments resulting from Annual Improvements to
IFRS Standards 2018–2020 (subsidiary as a first-time adopter)
– Effective date 1 January 2022
- IFRS 3 amendments updating a reference to the Conceptual
Framework – Effective date 1 January
2022
- IFRS 4 amendments regarding the expiry date of the deferral
approach – Effective date 1 January
2023
- Amendments to IFRS 4, IFRS 7, IFRS 9, IFRS 16, and IAS 39
regarding replacement issues in the context of the IBOR reform –
Effective date 1 January 2021
- IFRS 17: Insurance contracts – Effective date deferred to
1 January 2023
- IAS 1 amendments regarding the classification of liabilities -
Effective date 1 January 2023
- IAS 16 amendments prohibiting a company from deducting from the
cost of property, plant and equipment amounts received from selling
items produced while the company is preparing the asset for its
intended use – Effective date 1
January 2022
- IAS 37 amendments regarding the costs to include when assessing
whether a contract is onerous – Effective date 1 January 2022.
2. Loss per share
Basic earnings per
share |
|
|
Six
month period ended 30 November 2020
(Unaudited) € |
|
Six
month period ended 30 November 2019 (Unaudited) € |
|
Year
ended 31 May 2020
(Audited) € |
Loss for the financial
period/year attributable to equity holders of the Company |
|
|
(703,294) |
|
(278,008) |
|
(677,380) |
|
|
|
|
|
|
|
|
Number of ordinary shares at start
of financial period/year |
|
|
26,213,872 |
|
23,693,039 |
|
23,693,039 |
Number of ordinary shares issued
during the financial period/year |
|
|
6,045,833 |
|
- |
|
2,520,833 |
Number of ordinary shares at end of
financial period/year |
|
|
32,259,705 |
|
23,693,039 |
|
26,213,872 |
Weighted average number of ordinary
shares for the purposes of basic earnings per share |
|
|
29,249,769 |
|
23,693,039 |
|
24,404,398 |
Basic loss per ordinary
share |
|
|
(€0.0240) |
|
(€0.0117) |
|
(€0.0278) |
|
|
|
- |
|
|
|
|
Weighted average number of ordinary
shares for the purposes of diluted earnings per share |
|
|
29,249,769 |
|
23,693,039 |
|
24,404,398 |
Diluted loss per ordinary
share |
|
|
(€0.0240) |
|
(€0.0117) |
|
(€0.0278) |
3. Subsidiaries
Shares in subsidiary companies
(Unlisted shares) at cost: |
30 November 2020
(Unaudited) € |
|
30 November 2019
(Unaudited) € |
|
31 May 2020
(Audited) € |
Conroy Gold Limited – 100%
owned |
- |
|
- |
|
- |
Trans International Mineral
Exploration Limited – 100% owned |
2 |
|
2 |
|
2 |
|
2 |
|
2 |
|
2 |
The registered office of the above non-trading subsidiaries is
3300 Lake Drive, Citywest Business Campus, Dublin 24, D24 TD21, Ireland.
Basis of consolidation
The condensed consolidated financial statements include the
condensed financial statements of Conroy
Gold and Natural Resources plc and its subsidiaries.
Subsidiaries are entities controlled by the Company. Control exists
when the Group is exposed to or has the right to variable returns
from its involvement with the entity and has the ability to affect
those returns through its control over the entity. In assessing
control, potential voting rights that presently are exercisable are
taken into account. The condensed financial statements of
subsidiaries are included in the condensed consolidated financial
statements from the date that control commences until the date that
control ceases. Intra-Group balances, and any unrealised income and
expenses arising from intra-Group transactions are eliminated in
preparing the condensed consolidated financial statements.
4. Intangible assets
Exploration and evaluation
assets |
|
|
|
|
|
|
Cost |
30
November 2020 (Unaudited) € |
|
30
November 2019 (Unaudited) € |
|
31 May 2020
(Audited) € |
At 1 June |
22,330,743 |
|
21,772,045 |
|
21,772,045 |
Expenditure during the financial
period/year |
|
|
|
|
|
- License and appraisal costs
|
23,902 |
|
105,307 |
|
189,591 |
|
170,660 |
|
200,165 |
|
369,107 |
- Equity settled share based payments
|
- |
|
- |
|
- |
At 30 November/31 May |
22,525,305 |
|
22,077,517 |
|
22,330,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and evaluation assets relate to expenditure incurred
in the development of mineral exploration opportunities. These
assets are carried at historical cost and have been assessed for
impairment in particular with regard to the requirements of IFRS 6:
Exploration for and Evaluation of Mineral Resources relating
to remaining licence or claim terms, likelihood of renewal,
likelihood of further expenditure, possible discontinuation of
activities as a result of specific claims and available data which
may suggest that the recoverable value of an exploration and
evaluation asset is less than its carrying amount.
The Board of Directors have considered the proposed work
programmes for the underlying mineral resources. They are satisfied
that there are no indications of impairment.
The Board of Directors note that the realisation of the
intangible assets is dependent on further successful development
and ultimate production of the mineral resources and the
availability of sufficient finance to bring the resources to
economic maturity and profitability.
5. Convertible loan
On 15 July 2019, the Company
entered into an unsecured convertible loan agreement for €250,000
with Hard Metal Machine Tools Limited (the “Lender”). A further
unsecured convertible loan note for €100,000 was issued on
30 October 2019 to the Lender. The
convertible loan notes have a term of three years and attract
interest at a rate of 5% per annum which is payable on the
redemption or conversion of the convertible loan notes. The loan
notes (including interest accrued) are convertible into ordinary
shares in the capital of the Company at any time during the term of
the loan notes at a conversion price of 7
pence sterling per share in respect of the first loan note
and 6 pence sterling per share in
respect of the second loan note agreement.
As the convertible loans are made up of both equity and
liability components, they are considered to be compound financial
instruments. At initial recognition, the carrying amount of a
compound financial instrument is allocated to its equity and
liability components. The fair value of the conversion feature is
taken directly to equity. The fair value of the liability, which is
the difference between the transaction price and the fair value of
the conversion feature, is recognised as a liability in the
consolidated statement of financial position. The liability is
subsequently measured at amortised cost. The Company accounts for
the interest expense of the convertible loan notes at the effective
interest rate. The difference between the effective interest rate
and interest rate attached to the convertible loan increases the
carrying amount of the liability so that, on maturity, the carrying
amount is equal to the capital cash repayment that the Company may
be required to pay.
6. Related party transactions
(a) Directors’ and former
Directors’ loans |
30 November 2020
(Unaudited) € |
|
30 November 2019
(Unaudited) € |
|
31 May 2020
(Audited) € |
At 1 June |
659,832 |
|
551,832 |
|
551,832 |
Loan advance |
- |
|
98,000 |
|
108,000 |
Loan repayment |
(82,425) |
|
- |
|
- |
At 30 November/31
May |
577,407 |
|
649,832 |
|
659,832 |
The Directors’ and former Directors’ loan amounts relate to
monies owed to Professor Richard
Conroy (Chairman) amounting to €282,918 (31 May 2020: €315,918), Maureen T.A. Jones (Managing Director) amounting
to €Nil (31 May 2020: €49,425), Sorca
Conroy amounting to €225,000 (31 May
2020: €225,000) and Seamus
Fitzpatrick amounting to €69,489 (31
May 2020: €69,489).
Sorca Conroy and Seamus
Fitzpatrick are both former directors in the Company having
left the board in August 2017 (and
are shareholders of the Company owning less than 3% of the issued
share capital of the Company). Neither Sorca Conroy nor
Seamus Fitzpatrick are classified as
related parties under the AIM Rules for Companies. These loans are
unsecured advances with no interest payable and there are no
repayment or maturity terms.
- Apart from Directors’ remuneration, and loans from Directors,
there have been no contracts or arrangements entered into during
the six month period in which a Director of the Group had a
material interest.
- The Group shares accommodation with Karelian Diamond Resources
plc which have certain common Directors and shareholders. For the
six month period ended 30 November
2020, the Group incurred costs totalling €39,388
(30 November 2019: €54,034) on behalf
of Karelian Diamond Resources plc. These costs were recharged to
Karelian Diamond Resources plc by the Group. At 30 November 2020 the Group owed €50,381 to
Karelian Diamond Resources plc. At 30
November 2019, Karelian Diamond Resources plc owed the Group
€29,812.
7. Commitments and
contingencies
The Group has received prospecting licences under the Republic
of Ireland Mineral Development Acts 1940 to 1995 for areas in
Monaghan and Cavan. It has also received licences in Northern Ireland for areas in Armagh in
accordance with the Mineral Development Act (Northern Ireland) 1969.
At 30 November 2020, the Group had
work commitments of approximately €388,000 for the forthcoming
year, in respect of prospecting licences held (30 November 2019: €310,000).
8. Subsequent
events
On 25 February 2021, the Company
signed a Letter of Intent (“LOI”) with Demir Export A.S. for a
proposed joint venture on an earn-in basis over the twelve licences
held by the Company along its 65km district scale gold trend in the
Longford-Down Massif in Ireland.
Full details of the proposed joint venture are set out in the
Chairman’s Statement under the heading “Key Terms of the proposed
Joint Venture”.
Subsequent to 30 November 2020,
the Company received funds totalling £64,750 following the exercise
of warrants at a price of 35 pence
per warrant issued to places as part of the August 2020 fundraising.
COVID-19 continues to limit field and laboratory work given the
restrictions on operations and movement and other work also
continues in relation to the Company’s exploration and development
programme.
There were no other material events subsequent to the reporting
date which necessitate revision of the figures or disclosures
included in the financial statements.
9. Approval of the condensed
consolidated financial statements
These condensed consolidated financial statements were approved
by the Board of Directors on 26 February
2021. A copy of the condensed consolidated financial
statements will be available on the Group’s website
www.conroygold.com on 26 February
2021.