TIDMCHF
RNS Number : 6249M
Chesterfield Resources PLC
15 September 2023
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector:
Mining
15 September 2023
CHESTERFIELD RESOURCES PLC
("Chesterfield" or the "Company")
Interim Results
Chesterfield Resources PLC, the LSE listed mineral exploration
company with projects in Cyprus and Canada, is pleased to announce
its interim results for the six months ended 30 June 2023.
Chairman's review of year to date
During the first half of 2023 Chesterfield continued on its
policy set out late 2022 which is aimed at restructuring the
exploration licence portfolio in both Cyprus and Canada. This work
has been carried out with the aim of reducing the need for
continual equity dilution while preserving as much as possible
shareholder exposure to these licences and their potential value
accretion. The announcement in March of the optioning of the
Adeline Project in Canada to Sterling Metals in exchange for cash
and shares was an important milestone in this restructuring policy.
The agreement with Sterling had an immediate beneficial impact on
Chesterfield's finances, with the payment by Sterling of
CAD$400,000 (GBP244,000), which constitutes half of the cash
payment for the option, with the remainder payable in the event
that Sterling opt to acquire the Adeline licences prior to 30
November 2024. This cash was accompanied by 4.5m shares in Sterling
which were paid to Chesterfield, with a further 4.5m payable on the
same conditions by 30 November 2024. In April, Sterling raised
CAD$6.476m (GBP3.8m) in new equity to fund its exploration plans
for the summer and autumn of 2023, with a total of CAD$2.5m
(GBP1.476m) slated for expenditure on drilling and related work at
Adeline. Any success at Adeline will be reflected in the value of
Sterling shares that Chesterfield holds which in May constituted a
4% stake in the listed Canadian explorer.
Chesterfield rationalised its licence holdings in Cyprus in late
2022, reducing holdings from a total of 26 licences covering 110.42
km2 to 3 licences covering 13.39 km2. The Company has outlined
plans for further exploration work on the retained properties. The
Board would prefer to work with partners on these promising
properties and will update shareholders as and when any formal
arrangements are entered into.
During the first half of 2023, the Board has continued to carry
out extensive work to examine a number of possible options for the
Company to make an investment into new opportunities. The goal is
to find a new area of business activity that will generate
significant shareholder value in the near term and to announce a
new direction in Chesterfield's development by the end of 2023.
Shareholders should note that, subject to the terms that may be
agreed for these opportunities, additional capital raising or
additional shares being issued are possible outcomes of such a
change.
An important part of the current overall strategy is cost
savings, and the results of our efforts in this area should be
clear from the accounts for the period. In addition to the cuts in
exploration and related staffing and other overheads, management
have been able to significantly reduce outgoings both to service
providers and the Board, whose fees have been significantly cut
back to GBP2,500 monthly during the period. With no debts and very
low cash outlays, the Company is in a stable financial condition
for the foreseeable future, and notwithstanding any further
acquisitions or investments should preclude the need for a dilutive
capital raise.
Financials
As is to be expected with an exploration company, for the
six-month period ended 30 June 2023 the Group is reporting a
pre-tax loss of GBP110,963 (six months ended 30 June 2022: loss of
GBP491,607). The Group's net cash balance as at 30 June 2023 was
GBP348,243 (30 June 2022: GBP663,226).
Responsibility Statement
We confirm that to the best of our knowledge:
-- the interim financial statements have been prepared in
accordance with International Accounting Standards 34, Interim
Financial Reporting, as adopted by the UK;
-- give a true and fair view of the assets, liabilities,
financial position and loss of the Company;
-- the Interim report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
set of interim financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
-- The Interim report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules,
being the information required on related party transactions.
The interim report was approved by the Board of Directors and
the above responsibility statement was signed on its behalf by:
Paul Ensor
Executive Chairman
15 September 2023
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please visit
www.chesterfieldresourcesplc.com or contact:
Chesterfield Resources plc Paul Ensor, Executive Tel: +44 (0) 7595
Chairman 219 011
First Equity Limited (Broker) Jason Robertson Tel: +44 (0)207
330 1183
---------------------- ------------------
Panmure Gordon (UK) Limited John Prior & Hugh Tel: +44 (0) 207
(Broker) Rich 886 2500
---------------------- ------------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 12 months 6 months
to 30 June to 31 December to 30 June
2023 Unaudited 2022 Audited 2022 Unaudited
Notes GBP GBP GBP
------------------------------------ ------ ---------------- ---------------- ----------------
Continuing operations
Revenue - - 45,132
Administration expenses (148,386) (855,899) (536,739)
Other Gains 38,011 - -
Operating Profit/(Loss) (110,375) (855,899) (491,607)
------------------------------------ ------ ---------------- ---------------- ----------------
Impairment - (3,195,730) -
Finance cost (588) (35) -
Other income - 45,132 -
------------------------------------ ------ ---------------- ---------------- ----------------
Loss before taxation (110,963) (4,006,532) (491,607)
------------------------------------ ------ ---------------- ---------------- ----------------
Deferred tax credit - 347,145 -
------------------------------------ ------ ---------------- ---------------- ----------------
Loss for the period (110,963) (3,659,387) (491,607)
------------------------------------ ------ ---------------- ---------------- ----------------
Other comprehensive income
Items that may be reclassified
to profit or loss
Currency translation differences (39,161) 97,040 137,934
Total other comprehensive income
for the period (39,161) 97,040 137,934
------------------------------------ ------ ---------------- ---------------- ----------------
Total comprehensive income for
the period attributable to equity
holders (150,124) (3,562,347) (353,673)
Earnings per share from continuing
operations attributable to the
equity owners of the parent
------------------------------------ ------ ---------------- ---------------- ----------------
Basic and diluted 5 (0.085)p (2.831)p (0.384)p
------------------------------------ ------ ---------------- ---------------- ----------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 June 31 December 30 June
2023 Unaudited 2022 Audited 2022 Unaudited
Notes GBP GBP GBP
----------------------------------- -------- ---------------- -------------- ----------------
Non-Current Assets
Property, plant and equipment - 8,941 25,244
Intangible assets 6 894,336 880,837 5,395,923
Available for Sale Investment 7 494,798 - -
=================================== ======== ================ ============== ================
1,389,134 889,778 5,421,167
----------------------------------- -------- ---------------- -------------- ----------------
Current Assets
Trade and other receivables 143,921 162,435 375,008
Cash and cash equivalents 348,243 304,022 663,226
----------------------------------- -------- ---------------- -------------- ----------------
492,164 466,457 1,038,234
----------------------------------- -------- ---------------- -------------- ----------------
Asset held for sale 8 739,143 1,478,287 -
----------------------------------- -------- ---------------- -------------- ----------------
Total Assets 2,620,441 2,834,522 6,459,401
----------------------------------- -------- ---------------- -------------- ----------------
Non-Current Liabilities
Deferred tax liabilities (33,138) (33,138) (380,283)
----------------------------------- -------- ---------------- -------------- ----------------
Current Liabilities
Trade and other payables (39,576) (103,533) (174,693)
Total Liabilities (72,714) (136,671) (554,976)
----------------------------------- -------- ---------------- -------------- ----------------
Net Assets 2,547,727 2,697,851 5,904,425
----------------------------------- -------- ---------------- -------------- ----------------
Capital and Reserves Attributable
to
Equity Holders of the Company
Share capital 228,328 228,328 228,328
Share premium 8,919,654 8,919,654 8,919,654
Other reserves 186,780 257,838 298,732
Retained losses (6,787,035) (6,707,969) (3,542,289)
----------------------------------- -------- ---------------- -------------- ----------------
Total Equity 2,547,727 2,697,851 5,904,425
----------------------------------- -------- ---------------- -------------- ----------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Attributable to owners
of the Parent
---- --------- ----------------------------------------------
Share Share Other Retained Total
capital premium reserves losses equity
GBP GBP GBP GBP GBP
--------- ------------
Balance as at 1 January
2022 218,328 8,253,634 160,798 (3,050,682) 5,582,078
---------------------------------------- --------- ---------- ---------- ------------ ------------
Loss for the period - - - (491,607) (491,607)
---------------------------------------- --------- ---------- ---------- ------------ ------------
Other comprehensive income
for the year
Items that may be subsequently
reclassified to profit or
loss
---------------------------------- ---- --------- ---------- ---------- ------------ ------------
Currency translation differences - - 137,934 - 137,934
---------------------------------------- --------- ---------- ---------- ------------ ------------
Total comprehensive income
for the year - - 137,934 (491,607) (353,673)
---------------------------------------- --------- ---------- ---------- ------------ ------------
Share issue 10,000 690,000 - - 700,000
Cost of capital - (23,980) - - (23,980)
---------------------------------------- --------- ---------- ---------- ------------ ------------
Total transactions with
owners, recognised in equity 10,000 666,020 - - 676,020
---------------------------------------- --------- ---------- ---------- ------------ ------------
Balance as at 30 June 2022 228,328 8,919,654 298,732 (3,542,289) 5,904,425
---------------------------------------- --------- ---------- ---------- ------------ ------------
Balance as at 1 January
2023 228,328 8,919,654 257,838 (6,707,969) 2,697,851
---------------------------------------- --------- ---------- ---------- ------------ ------------
Loss for the period - - - (110,963) (110,963)
---------------------------------------- --------- ---------- ---------- ------------ ------------
Other comprehensive income
for the year
Items that may be subsequently
reclassified to profit or
loss
---------------------------------- ---- --------- ---------- ---------- ------------ ------------
Currency translation differences - - (39,161) - (39,161)
---------------------------------------- --------- ---------- ---------- ------------ ------------
Total comprehensive income
for the year - - (39,161) (110,963) (150,124)
======================================== ========= ========== ========== ============ ============
Options expired during the
year - - (31,897) 31,897 -
======================================== ========= ========== ========== ============ ============
Total transactions with
owners, recognised in equity - - (31,897) 31,897 -
---------------------------------------- --------- ---------- ---------- ------------ ------------
Balance as at 30 June 2023 228,328 8,919,654 186,780 (6,787,035) 2,547,727
---------------------------------------- --------- ---------- ---------- ------------ ------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months
to 30 June to 30 June
2023 2022 Unaudited
Notes Unaudited GBP
GBP
------------------------------------------- -------- ------------ ----------------
Cash flows from operating activities
Loss before taxation (110,963) (491,607)
Adjustments for:
Depreciation - 2,802
Increase/(decrease) in trade and other
receivables 18,516 (53,009)
Increase/(decrease) in trade and other
payables (63,962) 20,310
Foreign exchange (6,456) 24,022
Net cash used in operations (162,865) (497,482)
-------------------------------------------- -------- ------------ ----------------
Cash flows from investing activities
(Purchase)/Sale of property, plant
& equipment - (4,324)
Sale of exploration assets 244,344 -
Exploration and evaluation activities 6 (37,258) (273,959)
Net cash used in investing activities 207,086 (278,283)
-------------------------------------------- -------- ------------ ----------------
Cash flows from financing activities
Cost of share issue - (23,980)
Share issue - 700,000
-------------------------------------------- -------- ------------ ----------------
Net cash generated from financing
activities - 676,020
-------------------------------------------- -------- ------------ ----------------
Net decrease in cash and cash equivalents 44,221 (99,745)
Cash and cash equivalents at beginning
of period 304,022 762,971
Cash and cash equivalents at end
of period 348,243 663,226
-------------------------------------------- -------- ------------ ----------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
Chesterfield Resources plc is a minerals company exploring
primarily for copper and gold in Canada and Cyprus and listed on
the Standard segment of the Main Market of the London Stock
Exchange.
The Company is domiciled in the United Kingdom and incorporated
and registered in England and Wales, with registration number
10545738. The Company's registered office is 6 Heddon Street,
London W1B 4BT.
2. Basis of Preparation
These condensed interim financial statements are for the six
months ended 30 June 2023 and have been prepared in accordance with
the accounting policies adopted in the Group's most recent annual
financial statements for the year ended 31 December 2022.
The Group have chosen to adopt IAS 34 "Interim Financial
Reporting" in preparing this interim financial information as
adopted by the United Kingdom and the Disclosure and Transparency
Rules of the UK Financial Conduct Authority. They do not include
all the information required in annual financial statements, and
they should be read in conjunction with the consolidated financial
statements for the year ended 31 December 2022 and any public
announcements made by Chesterfield Resources Plc. during the
interim reporting period.
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies
Act 2006. It has been prepared on a going concern basis in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by
the United Kingdom.
Statutory financial statements for the period ended 31 December
2022 were approved by the Board of Directors on 27 April 2023 and
delivered to the Registrar of Companies. The report of the auditors
on those financial statements was unqualified. The condensed
interim financial statements are unaudited and have not been
reviewed by the Company's auditor.
Going concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Company to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
condensed interim financial statements for the period ended 30 June
2023.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Company's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Company's 2022
Annual Report and Financial Statements, a copy of which is
available on the Company's website: www.chesterfieldplc.com . The
key financial risks are liquidity risk, credit risk, interest rate
risk and fair value estimation.
Critical accounting estimates
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in Note 2 of the Company's 2022 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
A number of new standards, amendments and became effective on 1
January 2023 and have been adopted by the Group. None of these
standards have materially affected the Group.
The same accounting policies, presentation and methods of
computation are followed in the interim consolidated financial
information as were applied in the Group's latest annual audited
financial statements except for those that relate to new standards
and interpretations effective for the first time for periods
beginning on (or after) 1 January 2023, and will be adopted in the
2023 annual financial statements. In addition to these the
following new accounting policies have been adopted:
Assets held for sale
Asset are classified as assets held for sale when their carrying
amount is to be recovered principally through a sale transaction
and a sale is considered highly probable. They are stated at the
lower of carrying amount and fair value less costs to sell.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 June 2023 (six months ended 30 June 2022:
GBPnil).
5. Loss per Share
The calculation of loss per share is based on a retained loss of
GBP110,963 for the six months ended 30 June 2023 ( six months ended
30 June 2022: GBP491,607 ) and the weighted average number of
shares in issue in the period ended 30 June 2023 of 130,328,311 (
six months ended 30 June 2022: 128,173,615 ).
No diluted earnings per share is presented for the six months
ended 30 June 2023 or six months ended 30 June 2022 as the effect
on the exercise of share options would be to decrease the loss per
share.
6. Intangible assets
The movement in capitalised exploration and evaluation costs
during the period was as follows:
Exploration & Evaluation at Cost and Net Book Value GBP
----------------------------------------------------- ---------
Balance as at 1 January 2023 880,837
Additions 37,258
Foreign exchange (23,759)
As at 30 June 2023 894,336
----------------------------------------------------- ---------
7. Available for sale investment
The movement in available for sale investments during the period
was as follows:
Avaliable for sale investments GBP
------------------------------------- --------
Balance as at 1 January 2023 -
4,500,000 shares in Sterling Metals 494,798
As at 30 June 2023 494,798
------------------------------------- --------
8. Asset held for sale
On 6th March 2023, the Company announced that they had signed an
agreement with Sterling Metals, a TSX-V and OTCQB listed
exploration company, with regard to Chesterfield's Adeline project
in Labrador. Under the agreement Sterling Metals will purchase an
option to acquire full ownership and rights over the project in
exchange for a series of payments of cash and shares for a total
consideration of CAD$800,000 and 9,000,000 shares in Sterling
Metals. Therefore, the Directors have determined that the Adeline
licences be classified as an asset held for sale.
Sterling will pay the total cash consideration in three separate
tranches. As at 30 June 2023, CAD$400,000 (GBP244,000) and and
4,500,000 shares have been received by Chesterfield. A final
tranche of CAD$400,000 (GBP230,000) and 4,500,000 shares are to be
paid on or before 30 November 2024.
The movement in capitalised exploration and evaluation costs
during the period was as follows:
Asset held for sale GBP
------------------------------ ----------
Balance as at 1 January 2023 1,478,287
Partial sale of Adeline (739,142)
As at 30 June 2023 739,143
------------------------------ ----------
The balance of GBP739,143 is the remaining 50% of Adeline which
will be transferred when the final tranche is received by
Chesterfield.
9. Events after the balance sheet date
The Directors believe there to be no significant events after
the reporting date.
10. Approval of interim financial statements
The Condensed interim financial statements were approved by the
Board of Directors on 15 September 2023.
**ENDS**
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IR GCGDCLXBDGXU
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