TIDMCGO
RNS Number : 0585U
Contango Holdings PLC
30 November 2021
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
30 November 2021
Contango Holdings Plc
('Contango' or the 'Company')
Audited Results for the Year Ended 31 May 2021
Contango Holdings plc, the London listed natural resource
development company, is pleased to announce its audited results for
the year ended 31 May 2021.
A copy of the full report and accounts will be uploaded shortly
to the Company's website at www.contango-holdings-plc.co.uk.
Chairman's Report
The year under review has been a highly active period for
Contango Holdings Plc and saw the Group achieve various milestones
in our wider investment and growth strategy. After identifying and
reviewing a number of opportunities, Contango successfully acquired
two high value gold assets, whilst continuing to advance the Lubu
Coking Coal Project ("Lubu") in Zimbabwe. The addition to
Contango's portfolio of the Garalo Gold Project ("Garalo") in
October 2020 and the Ntiela Gold Project ("Ntiela") in March 2021,
located adjacent to each other in one of Africa's largest gold
producing regions in Mali, has significantly strengthened the
Company's portfolio as it looks to transition into a cash
generative mining group in 2022.
The work completed during the period at Garalo has returned
exceptional results; far exceeding the internal estimates and
expectations we had in place at the time of acquisition. A key
development for us was the publication of the independent technical
report in March 2021, which confirmed a new model for gold
formation and highlighted the potential for up to 2Moz at the mine,
with gold structures nearly identical to those at the nearby Kalana
gold deposit being developed by Endeavour Mining. Following this
report and the earlier December 2020 report, which returned a 460%
uplift from our previous estimated potential gold resource, we have
expanded both the near term production case and also begun work to
define an even larger development. An initial 20-30,000oz per annum
heap leach oxide operation, with margins in excess of US$1,000/oz
at current gold prices, is being evaluated to bring on production
in 2022, ahead of a subsequent larger development to capture the
full resource.
Ntiela, the most recent addition to our portfolio, was acquired
in March 2021 for a total consideration of approximately
GBP750,000. The acquisition of the project, which is contiguous to
our Garalo Project, further solidifies our mineralised footprint in
this world-class gold producing region in Mali. Sharing the western
boundary of Garalo, the existing data from Ntiela suggests a strong
correlation with Garalo's, which is highly encouraging for its
capacity for high-grade gold mineralisation. Exploration activities
commenced in Q2 2021 and the extension of at least two target zones
from Garalo to Ntiela have already been identified, providing even
more upside. Due to their proximity and the aforementioned target
zones, we have consolidated the assets to a single Garalo-Ntiela
Project Area as we focus on implementing a work programme to
realise their full potential simultaneously.
The progress made so far at Lubu has laid the foundations for a
very profitable cash generative operation with first revenues
expected towards the end of Q1 2022. As previously reported, we
provided bulk samples to a number of potential future customers,
which confirmed the strong demand for our high-quality coking coal
product. In addition, during the period negotiations with a
Zimbabwean subsidiary of a major Chinese industrial company and one
of the world's largest stainless-steel producers, developed
encouragingly. Post period we undertook further studies on the
composition of our coking coals, with excellent results that
highlighted the value of Lubu. Whilst this reaffirmed our
confidence in entering into the aforementioned offtake
arrangements, the Company is now looking to install coke batteries
at site in 2022, thus enabling the generation of a higher value
product that can be transported internationally. Post period
Contango raised sufficient funds to bring Lubu into production,
further strengthening the Company's position in offtake
discussions. The coking coal and coke markets saw significant price
increases both during the period and beyond. This has naturally
improved the economics and outlook for Lubu yet further.
Financial Review
Funding
During the period, the Parent Company raised GBP1,800,000
(before expenses) through an oversubscribed Placing of 36,000,000
New Ordinary Shares of GBP0.01 each at a price of 5 pence per
Placing Share, in conjunction with the acquisition of the Garalo
Project in October 2020.
Post period end, in June 2021, the Parent Company received
commitments for GBP1,000,000 in a Convertible Loan. The Convertible
Loan has a fixed conversion price of 6 pence per share and
conversion is mandatory on 4 January 2022. The Convertible Loan
carries zero interest and upon conversion into shares, each
subscriber will receive one warrant for every two ordinary shares
they receive, with an exercise price of 8p and a life of 2
years.
In November 2021 the Parent Company raised a further
GBP2,500,000 (before costs) from a placing of 41,666,666 ordinary
shares at a price of 6p each.
Revenue
The Group generated no revenue during the year as it was
focussing on assets that will ultimately generate revenue for the
Group.
Expenditure
The Group has low ongoing overheads and devoted its cash
resources to transaction costs and the development of Lubu and
Garalo-Ntiela towards commercial production.
Liquidity, cash and cash equivalents
As of 31 May 2021, the Group held GBP22,143 (in 2020 the Company held GBP10,430).
Outlook
The last 12 months have evidently been a landmark period for
Contango, for our existing projects and growing portfolio, and in
relation to our wider group strategy. As an emerging natural
resources investment vehicle, Contango has been able to benefit
from the unique advantage over larger developers to apply agile and
flexible development models to our assets to achieve cashflow in an
ambitious timeframe. I look forward to providing updates from
advancements in our portfolio in what is set to be another
breakthrough period for Contango.
Roy Pitchford
30 November 2021
Strategic Report
Contango's focus during the period was on the development of its
Lubu Coal Project in Zimbabwe, and the identification, acquisition
and development of the Garalo-Ntiela Gold Project in Mali.
Lubu Coal Project ('Lubu')
Contango has a 70% interest in Lubu, with the remaining 30% held
by a supportive local partner.
Previous owners have expended more than $20m on Lubu, which has
enabled a sizeable resource in excess of 1.3 billion tonnes to be
identified under NI 43-101 standard. Contango will initially focus
on producing coking coal from Block B2, where extensive work has
also been undertaken to define the specific properties of the coal,
which in turn has enabled offtake conversations to commence. The
coal seams within Block B2 are from surface down to a maximum depth
of 47m, ensuring operating costs are kept at very attractive
levels. Contango is initially focussed on the production of coking
coal, with sales expected to local and international consumers.
The Board has focussed on developing markets for its semi soft
coking coal and 28MJ/kg CV coal which is known to be in demand by
industrial users in the Southern Africa region. The Group may
develop a relatively material operation without recourse to the
full-scale mining given that the terms of the Special Grant area
does not stipulate a maximum threshold of production under the
trial mining licence and bulk licence.
A key development during the period was the advancement of
long-term offtake discussions for coking coal produced at Lubu with
a Zimbabwean subsidiary of a major Chinese industrial company and
one of the world's largest stainless-steel producers. As previously
reported the Potential Offtake Partner has a sizeable footprint in
Zimbabwe, with plans to construct a US$1bn carbon steel plant in
the country and is currently in the process of constructing several
coke batteries in the Hwange region of Zimbabwe
The Contango team undertook a productive site visit in H2 2021
with senior members from the major Chinese industrial company in
attendance. Since the site visit discussions have continued to make
good progress. However, following further positive results from
studies during H2 2021 the Company is now looking to optimise the
development of Lubu with a fully integrated operation enabling the
manufacture of coke.
Contango will focus on extracting bulk samples of the high value
coking and metallurgical coals found in the 1A Lower and MSU seams.
Although close to surface, this will be treated as an underground
operation, like those previously mined around Hwange Colliery,
enabling the Group to focus specifically on the high value product
of particular interest to the major Chinese industrial company for
its newly built coke batteries and for the expected Contango-owned
coke battery.
Following a capital raise post period, the Company is fully
funded to bring Lubu into production at the end of Q1 2022 and
development is underway.
Garalo-Ntiela Gold Project ('Garalo-Ntiela')
With the acquisition of Garalo in October 2020, and Ntiela in
March 2021, Contango has now amassed a very significant foothold in
one of Africa most productive regions for gold. The permit is
surrounded by a number of multi-million ounce gold deposits and the
region is home to some of the world's leading gold miners,
including IAMGOLD, Barrick, B2 Gold, Endeavour Mining and
Hummingbird Resources, which has helped to establish Mali as the
third largest gold producer in Africa.
When originally acquired, Garalo had a non-independent resource
of 320,000oz gold. Post acquisition Contango appointed Birima Gold
Resources Consulting ('BRG Consult'), an international mineral
exploration consulting company with significant experience in West
Africa, to prepare an Independent Technical Report to NI 43-101
standards and this was published in March 2021 (the 'Report').
The Report summarised historic and more recent technical
information on Garalo and concludes that the main structure that
controls the gold mineralisation at the Garalo G1 and G3 Targets is
a north-south-striking, shallowly-west-dipping shear zone system
forming pull-apart similar to the nearby 2.8Moz Kalana Gold
Deposit.
This new model for the gold formation at Garalo suggests that
the gold mineralisation is hosted in a system of parallel dilation
fracture networks within shear zones. These fracture networks are
under-explored and may contain a gold potential of up to 2Moz. The
Report found that Garalo has high potential to host economic gold
mineralisation, which can be delineated via Reverse Circulation
(RC), Diamond (DD) and Rotary Air Blast (RAB) drilling
programmes.
The Report also concluded that historic exploration works
completed between 2001 and 2008 were professionally managed and
procedures were consistent with generally accepted industry best
practices. Consequently, the exploration data from soil
geochemistry sampling, ground geophysical survey, trenches and
drilling were assessed to be sufficiently reliable to confidently
allow interpretation of the gold mineralisation in the Garalo
property, enabling the outline of an extensive drilling programme
over existing gold deposits and in areas with potential for new
discovery to be drawn. Exploration works performed in the Garalo
permit resulted in the discovery of the Garalo G1 and G3 gold
deposits and numerous other clusters of anomalous zones with
potential for gold discovery, some of which have offered additional
high-grade potential.
In March 2021, Contango acquired the neighbouring Ntiela
licence, which borders the western boundary of the Garalo permit.
The prospectivity of Ntiela has been established from work
programmes conducted by the previous operator which included soil
and termite mound sampling and geochemistry, regolith mapping and
extensive trenching. Existing data from soil geochemistry studies
on Ntiela also suggests a strong correlation with the data the
Group has been collecting at the G3 target on Garalo, pointing to
the potential for high-grade gold mineralisation on the Ntiela
licence. This work has been supplemented by drone surveys conducted
by Contango geologists, which supported the potential for the
extension of at least two target zones from Garalo to Ntiela.
The combined Garalo-Ntiela Project, which covers an area of
161.5km(2) , is now expected to host a large processing hub,
capable of supporting multiple open pit operations targeting
initial production of gold in the near term in conjunction with an
exploration programme including expansion drilling.
Recent work has focussed on aeromagnetics and airborne
geophysics campaign which has been completed with the data
currently being analysed, with ground-based IP studies set to
commence shortly. The objective of this work programme is to better
define the extents and characteristics of the orebody, considering
the significant increase in resource quantum that is now
contemplated at Garalo. Contango is advancing the development of a
30,000oz per annum heap leach operation from the shallow oxides
given the high margins and low capex for its development. Given the
dramatic increased resource potential highlighted in the NI 43-101
Independent Technical Report released in March 2021, the Company is
also likely to undertake a drilling programme in parallel to help
realise and optimise the asset's full potential, as Contango looks
to establish a large standalone gold mine with multiple open pit
operations across both permit areas.
Key performance indicators (KPIs)
At this stage in its development, the Group is focusing on
financing, operating, health and safety and
environmental issues of the Lubu and Garalo/Ntiela Projects.
Financial KPIs
Funding
During the year the Parent Company was funded through cash
raised from the placements at the relisting on 17 June 2020 and the
further placement on 22 October 2020.
Revenue
The Group generated no revenue during the year, however was
focussing on acquisition targets that will ultimately generate
revenue for the Group.
Expenditure
The Group has low ongoing overheads and devoted the majority of
its cash to acquisition and progressing the development of the Lubu
Coalfield site in Zimbabwe and the Garalo/Ntiela gold licences in
Mali.
Liquidity, cash and cash equivalents
At 31 May 2021, the Group held GBP22,143 (in 2020 the Company
held GBP 10,430). However, as discussed in Note 2 (e) the parent
company is planning to raise significant new funding during the
course of 2021/22 to fund its planned capital expenditure.
Non-financial KPIs
Environmental
Lubu and Garalo/Ntiela Projects are still at an early stage of
project development and further consideration will need to be given
to environmental and social issues affecting these sites.
Environmental and safety legislation may change in a manner that
may require stricter or additional standards than those now in
effect, a heightened degree of responsibility for companies and
their directors and employees and more stringent enforcement of
existing laws and regulations.
Employees
With the exception of the Directors, the Group has five
employees. Other people work on a consultancy basis at present to
keep overheads at a minimum during the early stages of development
of the projects. The Board of Directors' is comprised of three
males. For more information about the Group's employees see
directors' remuneration report on pages 18-22 and Note 5.
Financial risk management objectives and policies
The Group's principal financial instruments comprise cash and
trade and other payables. It is, and has been throughout the year
under review, the Group's policy that no trading in financial
instruments shall be undertaken. The main risks arising from the
Group's financial instruments are liquidity risk, price risk and
foreign exchange risk. The board reviews and agrees policies for
managing each of these risks and they are summarised below.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient
cash reserves to fund the Group's exploration and operating
activities. Management prepares and monitors forecasts of the
Group's cash flows and cash balances monthly and ensures that the
Group maintains sufficient liquid funds to meet its expected future
liabilities. The Group intends to raise funds in discrete tranches
to provide sufficient cash resources to manage the activities
through to profitability.
Price risk
The Group is exposed to fluctuating prices of commodities,
including coal and gold, and the existence and quality of these
commodities within the licence and project areas. The directors
will continue to review the prices of relevant commodities as
development of the projects continue and will consider how this
risk can be mitigated.
Foreign exchange risk
The Group operates in a number of overseas jurisdictions and
carries out transactions in a number of currencies including
British pound sterling (currency symbol: GBP or GBPGBP) and United
States dollar (currency symbol: USD or US$). The Group does not
have a policy of using hedging instruments but will continue to
keep this under review. The Group operates foreign currency bank
accounts to help mitigate the foreign currency risk.
COVID-19 risk
The Group regards the health and safety of its employees and
contractors as its highest priority. This is especially so during
the current global COVID-19 outbreak. All Contango employees and
contractors follow the Group's strict protocols to reduce the risk
of transmission of COVID-19 across the Group's operations.
The business and operations of the Group are subject to a number
of risk factors which may be sub-divided into the following
categories:
Exploration and development risks, including but not limited
to:
-- Mineral exploration is speculative and uncertain
-- Verification of historical washability analysis
-- Independent verification of internal resource estimation at Garalo
-- Mining is inherently dangerous and subject to conditions or
events beyond the Group's control, which could have a material
adverse effect on the Group's business
-- The volume and quality of coal recovered may not conform to current expectations
-- The extend and grade of gold mineralisation at Garalo may not
conform to current expectations
Permitting and title risks, including but not limited to:
-- Licence and permits
-- The Group will be subject to a variety of risks associated
with current and any potential future joint ventures, which could
result in a material adverse effect on its future growth, results
of operations and financial position
Political risks, including but not limited to:
-- Political stability
-- Enforcement of foreign judgements
-- Potential legal proceedings or disputes may have a material
adverse effect on the Group's financial performance, cash flow and
results of operations
Financial risks, including but not limited to:
-- Foreign exchange effects
-- Valuation of intangible assets
-- The Group may not be able to obtain additional external
financing on commercially acceptable terms, or at all, to fund the
development of its projects
-- The Group will be subject to taxation in several different
jurisdictions, and adverse changes to the taxation laws of such
jurisdictions could have a material adverse effect on its
profitability
-- The Group's insurance may not cover all potential losses,
liabilities and damage related to its business and certain risks
are uninsured and uninsurable
Commodity prices, including but not limited to:
-- The price of coal may affect the economic viability of ultimate production at Lubu
-- The revenues and financial performance are dependent on the price of coal
-- The price of gold may affect the economic viability of ultimate production at Garalo
Operational risks, including but not limited to:
-- Availability of local facilities
-- Adverse seasonal weather
-- The Group's operational performance will depend on key
management and qualified operating personnel which the Group may
not be able to attract and retain in the future
-- The Group's directors may have interests that conflict with its interests
-- Risk relating to Controlling Shareholders
The Group's comments and mitigating actions against the above
risk categories are as follows:
Exploration and development risks
There can be no assurance that the Group's development
activities will be successful however significant exploratory work
has been conducted to date at Lubu and Garalo which supports the
Board's confidence that a profitable mining operation can be
developed.
Additionally, the phased development route which will be
employed at Lubu seeks to mitigate risks along the development life
cycle of the project.
Permitting and title risks
The Group complies with existing laws and regulations and
ensures that regulatory reporting and compliance in respect of each
permit is achieved. Applications for the award of a permit may be
unsuccessful. Applications for the renewal or extension of any
permit may not result in the renewal or extension taking effect
prior to the expiry of the previous permit. There can be no
assurance as to the nature of the terms of any award, renewal or
extension of any permit.
The Group regularly monitors the good standing of its
permits.
Political risks
The Group maintains an active focus on all regulatory
developments applicable to the Group, in particular in relation to
the local mining codes.
In recent years the political and security situations in
Zimbabwe and Mali have been particularly volatile.
Financial risks
The board regularly reviews expenditures on projects. This
includes updating working capital models, reviewing actual costs
against budgeted costs, and assessing potential impacts on future
funding requirements and performance targets.
Commodity prices
As projects move towards commercial mining the Group will
increasingly review changes in commodity prices so as to ensure
projects remain both technically and economically viable.
Operational risks
Continual and careful planning, both long-term and short-term,
at all stages of activity is vital so as to ensure that work
programmes and costings remain both realistic and achievable.
COVID-19 outbreak
In addition to the foregoing comments and mitigating actions
against the above risk categories the Group has implemented various
protocols in relation to the current COVID-19 outbreak. Contango
places the health and safety of its employees and contractors as
its highest priority. Accordingly, a business continuity programme
has been put in place to protect employees whilst ensuring the safe
operation of the Group.
Having spoken with, amongst others, local government, staff and
contractors, strict protocols have been implemented to reduce the
risk of transmission of COVID-19 at all the Group's operations.
The situation in respect of COVID-19 is an evolving one and the
Board will continue to review its potential impact on its staff and
the business.
Consolidated Statements of Comprehensive Income
For the year ended 31 May 2021
Year ended Year ended
31 May 2021 31 May 2020
Notes GBP GBP
Administrative fees and other expenses 5 (3,304,899) (258,027)
-------------- -------------
Operating loss - (258,027)
Finance revenue - -
Finance expense - -
-------------- -------------
Loss before tax (3,304,899) (258,027)
Income tax - -
Loss for the year (3,304,899) (258,027)
-------------- -------------
Loss attributable to owners of Contango Holdings PLC (3,248,015) (258,027)
Loss attributable to non-controlling interests (56,884) -
-------------- -------------
Loss for the period (3,304,899) (258,027)
-------------- -------------
Basic and diluted loss per Ordinary Share (pence) 6 (1.49) (0.60)
Other comprehensive income (48,797) -
-------------- -------------
Total comprehensive loss for the period (3,353,696) -
-------------- -------------
Total comprehensive loss attributable to owners of Contango Holdings PLC (3,281,408) (258,027)
Total comprehensive loss attributable to non-controlling interests (72,288) -
-------------- -------------
Total comprehensive loss for the period (3,353,696) (258,027)
-------------- -------------
Consolidated Statement of Financial Position
For the year ended 31 May 2021
Notes 31 May 2021 31 May 2020
GBP GBP
Non-current assets
Investment 8 62,260 -
Intangible assets 9 10,118,098 -
Property plant and equipment 10 31,168 -
-------------- --------------
Total non-current assets 10,211,526 -
Current assets
Other receivables 11 135,699 403,163
Cash and cash equivalents 13 22,143 10,430
-------------- --------------
Total current assets 157,842 413,593
Total assets 10,369,368 413,593
Current liabilities
Trade and other payables 14 (281,664) (435,173)
-------------- --------------
Total current liabilities (281,664) (435,173)
Net (liabilities)/assets 10,087,704 (21,580)
-------------- --------------
Equity
Share capital 15 2,279,338 429,500
Share premium 15 8,294,643 368,978
Shares to be issued 400,000 -
Warrant reserve 160,074 84,874
Option reserve 1,700,505 -
Translation reserve (33,393) -
Retained earnings (4,152,947) (904,932)
-------------- --------------
Total equity attributable to owners of Contango Holdings 8,648,220 (21,580)
Non-controlling interests 1,439,484 -
-------------- --------------
Total Equity 10,087,704 (21,580)
-------------- --------------
Parent Statement of Financial Position
For the year ended 31 May 2021
Notes 31 May 2021 31 May 2020
GBP GBP
Non-current assets
Investments 8 1,477,327 -
Intangible assets 9 746,517
Total non-current assets 2,223,844 -
Current assets
Other receivables 11 6,780,820 403,163
Cash and cash equivalents 13 10,696 10,430
-------------- --------------
Total current assets 6,791,516 413,593
Total assets 9,015,360 413,593
Current liabilities
Trade and other payables 14 (228,820) (435,173)
-------------- --------------
Total current liabilities (228,820) (435,173)
Net assets/(liabilities) 8,786,540 (21,580)
-------------- --------------
Equity
Share capital 15 2,279,338 429,500
Share premium 15 8,294,643 368,978
Shares to be issued 400,000 -
Warrant reserve 160,074 84,874
Option reserve 1,700,505 -
Retained earnings (4,048,020) (904,932)
-------------- --------------
Total Equity 8,786,540 (21,580)
-------------- --------------
Consolidated Statement of Changes in Equity
For the year ended 31 May 2021
Shares Total
Share Share to be Warrant Option Translation Retained Equity Non-controlling
capital premium issued reserve reserve reserve earnings of Owners interests Total
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance
as at 31
May 2019 429,500 368,978 - 84,874 - - (646,905) 236,447 - 236,447
Loss for
the year - (258,027) (258,027) - (258,027)
---------- -------------- -------- --------- ---------- ------------ ------------ ------------ ---------------- ------------
Balance
as at 31
May 2020 429,500 368,978 - 84,874 - - (904,932) (21,580) - (21,580)
Loss for
the year - - - - - - (3,248,015) (3,248,015) (56,884) (3,304,899)
Other
comprehensive
income
Translation
differences - - - - - (33,393) - (33,393) (15,404) (48,797)
---------- -------------- -------- --------- ---------- ------------ ------------ ------------ ---------------- ------------
Total
comprehensive
income for
the year - - - - - (33,393) (3,248,015) (3,281,408) (72,288) (3,353,696)
Transactions
with owners
Share issues
- cash
received
net 1,819,838 7,815,665 - - - - - 9,635,503 - 9,635,503
Share issues
- warrants
exercised 30,000 110,000 - (10,600) - - - 129,400 - 129,400
Shares to
be issued - - 400,000 - - - - 400,000 - 400,000
Warrants
issued - - - 85,800 - - - 85,800 - 85,800
Options
issued - - - - 1,700,505 - - 1,700,505 - 1,700,505
Minority
interest
share of
intangible
asset
acquisitions - - - - - - - - 1,511,772 1,511,772
---------- -------------- -------- --------- ---------- ------------ ------------ ------------ ---------------- ------------
Total
transactions
with owners 1,849,838 7,925,665 400,000 75,200 1,700,505 - - 11,951,208 1,511,772 13,462,980
---------- -------------- -------- --------- ---------- ------------ ------------ ------------ ---------------- ------------
Balance
at 31 May
2021 2,279,338 8,294,643 400,000 160,074 1,700,505 (33,393) (4,152,947) 8,648,220 1,439,484 10,087,704
---------- -------------- -------- --------- ---------- ------------ ------------ ------------ ---------------- ------------
Parent Statement of Changes in Equity
For the year ended 31 May 2021
Shares to be Warrant Option Retained Total Equity
Share capital Share premium issued reserve reserve earnings of Owners
GBP GBP GBP GBP GBP GBP GBP
Balance as at
31 May 2019 429,500 368,978 84,874 (646,905) 236,447
Loss for the
year (258,027) (258,027)
-------------- -------------- ------------- --------- ------------- ------------- -------------
Balance as at
31 May 2020 429,500 368,978 84,874 (904,932) (21,580)
Loss for the
year - - - - (3,143,088) (3,143,088)
Other
comprehensive
income
Translation
differences - - - - - - -
-------------- -------------- ------------- --------- ------------- ------------- -------------
Total
comprehensive
income for
the year - - - (3,143,088) (3,143,088)
Transactions
with owners
Share issues
- cash
received net 1,819,838 7,815,665 - - 9,635,503
Share issues -
warrants
exercised 30,000 110,000 (10,600) - 129,400
Shares to be
issued 400,000 400,000
Warrants
issued - - 85,800 - 85,800
Options issued - - - 1,700,505 - 1,700,505
Total
transactions
with owners 1,849,838 7,925,665 400,000 75,200 1,700,505 - 11,951,208
-------------- -------------- ------------- --------- ------------- ------------- -------------
Balance at 31
May 2021 2,279,338 8,294,643 400,000 160,074 1,700,505 (4,048,020) 8,786,540
-------------- -------------- ------------- --------- ------------- ------------- -------------
Consolidated Cash Flow Statement
For the year ended 31 May 2021
Year Year
ended ended
Notes 31 May 2021 31 May 2020
GBP GBP
Operating activities
Loss after tax (3,304,899) (258,027)
Adjustments for:
Depreciation and amortisation 4,443 -
Share based transactions 1,775,705 -
Revaluation of intangible asset (54,986)
Changes in working capital
(Increase)/decrease in trade and other receivables 212,334 (371,852)
(Decrease)/Increase in trade and other payables (see reconciliation
below) (153,509) 359,425
------------- -------------
(Decrease) in Net cash from operating activities (1,520,912) (270,454)
Investing activities
Purchase of exploration licences (1,145,678) -
Spending on exploration licences (136,781)
Purchase of investments (62,260) -
Purchase of fixed assets (35,397) -
------------- -------------
Net cash outflow from investing activities (1,380,116) -
Financing activities
Ordinary Shares issued (net of issue costs) 15 2,940,674 -
------------- -------------
Net cash flows from financing activities 2,940,674 -
(Decrease)/Increase in cash and short-term deposits 39,646 (270,454)
Cash and short-term deposits as at the start of the period 10,430 280,884
Effect of foreign exchange rate changes (27,933)
Cash and short-term deposits at the end of the period 22,143 10,430
------------- -------------
Parent Cash Flow Statement
For the year ended 31 May 2021
Year Year
ended ended
Notes 31 May 2021 31 May 2020
GBP GBP
Operating activities
Loss after tax (3,143,088) (258,027)
Adjustments for: - -
Share based transactions 1,775,705 -
Changes in working capital
(Increase)/decrease in trade and other receivables 321,272 (371,852)
(Decrease)/Increase in trade and other payables (206,352) 359,425
(Decrease) in Net cash from operating activities (1,252,463) (270,454)
Investing activities
Purchase of investments (64,227) -
Purchase of exploration licences (346,517)
Loans to subsidiaries (1,274,024)
-------------
Net cash outflow from investing activities (1,684,768) -
Financing activities
Ordinary Shares issued (net of issue costs) 15 2,940,674 -
------------- -------------
Net cash flows from financing activities 2,940,674 -
(Decrease)/Increase in cash and short-term deposits 3,443 (270,454)
Cash and short-term deposits as at the start of the period 10,430 280,884
Effect of foreign exchange rate changes 8,270 -
Cash and short-term deposits at the end of the period 22,143 10,430
------------- -------------
Accompanying notes to the financial statements can be found in
the Annual Report on the Company's website at
www.contango-holdings-plc.co.uk.
**ENDS**
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: contango@stbridespartners.co.uk
Chief Executive Officer
Carl Esprey
Brandon Hill Capital Limited T: +44 (0)20 3463 5000
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd T: +44 (0)20 7236 1177
Financial PR & Investor Relations
Susie Geliher
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END
FR FDIFESEFSEDF
(END) Dow Jones Newswires
November 30, 2021 07:38 ET (12:38 GMT)
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