TIDMAXM
RNS Number : 0224O
Alexander Mining PLC
14 May 2018
14 May 2018
Alexander Mining plc
Audited Results for the Year Ended 31 December 2017
Alexander Mining plc ("Alexander" or the "Company"), the
AIM-listed mining and mineral processing technologies company,
announces its audited results for the year ended 31 December
2017.
Highlights
-- Successful placings to raise GBP750,000 and GBP600,000 to
fund business development and working capital requirements, leaving
the Company well financed to review complementary opportunities in
the mining sector.
-- Accudo Metals Pty Ltd. commitment after completing a positive
scoping study to proceed with a definitive feasibility study
("DFS") on the potential use of Alexander's leaching technology
under the existing licence agreement, subject to completion of its
funding arrangements.
-- Continued granting of important patents for leaching of
oxides using AmmLeach(R) and sulphides using HyperLeach(R) in key
mining jurisdictions, including Canada and USA respectively.
-- Continuing and increasingly broad mining industry interest in
using AmmLeach(R) for base metals recovery from amenable deposits
as the focus on limiting capital deployment and reduction in All in
Sustaining Costs ("AISC") for mines remains a priority for the
global mining industry.
-- Investigating exciting potential to use its leaching
technologies for the recovery of cobalt, the key and currently
irreplaceable component for delivery of thermal stability of most
electric vehicle lithium ion batteries.
-- New research and development ("R&D") initiatives for the
recovery of metals lithium and vanadium which have important use in
high technology energy storage equipment and solutions.
Chairman's Statement & Review of the Year
Dear Shareholders and Investors.
Herewith I take pleasure on behalf of your Board of Directors in
presenting for your consideration the Company's results for the
year ended 31 December 2017, along with commentary on the operating
environment and related outlook.
The year under review was filled with mixed sentiment in the
global mining sector and was compounded by resource nationalism in
some countries, in particular in Latin America and Africa.
Generally, though, the mining and natural resources investment
market remained positive. Within this volatile economic and
political environment, precious metals prices, including gold and
silver, increased the demand for risk hedging against government
and public debt levels, US dollar weakness and fear of Fiat
currency failure.
The price of base metals, Alexander's main area of activity, and
related base metals equities continued to rise on LME stock
depletion, stronger than expected economic demand and continued
significant capital inflows. This is despite the advent of
crypto-currencies which we believe have attracted significant
funding from the usual junior resource investment market. Increased
investment in exploration and development activity in the
infrastructure commodities and energy storage or battery metals has
continued during the year and underpinned these further potential
price rises.
Some key operating environment features for the Company that we
expect to impact in the year ahead and potentially beyond this
horizon are as follows:
-- Junior mining company valuations are currently perceived as
being generally positive and still trending upwards, in particular
in the precious metals, infrastructure commodities, energy fuels
and battery metals sectors.
-- AISC improvements, ongoing productivity initiatives and
capital investment in technologies is also a continuing global
trend in the mining sector.
-- Consolidation of companies' positions in highly prospective
brownfield mining districts through joint-ventures and mergers
& acquisitions, in search of critical mass and optionality for
investors, particularly in the junior sector where Alexander
operates.
-- Exploration programmes, project developments and old mines
are being restarted, in particular in the base & precious
metals commodities, but also in energy fuels (uranium & coal)
or related energy storage metals, i.e. cobalt, vanadium and
lithium.
Regardless of sentiment in general, at Alexander our management
and Board have remained focused on our core activity of seeking
and/or acquiring commercialisation opportunities for our
technologies to release the embedded value in your Company.
During the year, the Company continued to add granted patents in
key mining jurisdictions to its portfolio of intellectual property,
as well as continuing with its R&D activities under various
agreements and, where appropriate, make additional
applications.
The Company broadened its range of metals of interest with its
joint venture ("JV") project for the recovery of lithium from hard
rock sources. This has generated significant industry interest,
including the provision of samples, from several companies in the
mining industry. Pursuant to this interest, the JV agreement
between Alexander and Dr. Nicholas Welham was varied to include the
testing of the potential process on a wider range of lithium
bearing minerals, ores and concentrates.
With the receipt of suitable samples, the R&D laboratory
work has been initiated. Due to procedural issues beyond
Alexander's control, the test work suffered a delay and the Company
has been working with Dr. Welham to rectify the matter.
In February 2017, the Company's joint broker, Turner Pope
Investments, released a comprehensive research note on Alexander
for the general market which is to be found on the Company's
website. This was key as we seek to broaden and deepen the
understanding of investors to the potential embedded within the
Company's intellectual property and business in general.
The Company was granted in March 2017 an important patent for
the leaching of zinc in Canada, one of the world's foremost mining
sector jurisdictions. The patent, the Australia and USA equivalent
of which was granted on 30 August 2012 and 3 February 2015
respectively, describes a method for leaching zinc from
zinc-bearing carbonate ore. In November 2017, a further patent was
added for our HyperLeach(R) technology in the USA and which
describes a method for leaching one or more target metals from a
sulphide ore and/or concentrate.
Accudo's commitment in June 2017 to proceed with a DFS on the
potential use of our leaching technology under the existing licence
agreement between us is highly significant, albeit being delayed in
execution due to finalising of its own funding arrangements. We
continue to look forward to working together closely on this copper
project opportunity in Australia.
In August 2017, the Company signed an introducer's agreement
with Duard Capital Ltd. ("Duard") for the potential introduction of
commercial opportunities for its leaching technologies in Zambia.
Zambia, with its world renowned Copperbelt geology, is a noted
mining country with significant copper production growth potential.
It is highly prospective for the use of Alexander's technology for
the recovery of copper and cobalt.
In September 2017, Alexander announced that it had agreed a
significant new R&D JV project ("Project") to investigate the
potential recovery of vanadium from amenable ores ("Vanadium
Leaching Technology"). Applications for vanadium have expanded
dramatically over the last year as it found a new industrial use
and is the key component of large 'flow-through' energy storage
components known as Redox Batteries, which are already achieving
commercial adoption for municipal size grid storage applications in
the USA.
The Project is between Alexander, Australian company Multicom
Resources Pty Ltd ("Multicom"), and John Webster Innovations
Proprietary Limited. If the JV is successful, the potential use of
a new Vanadium Leaching Technology would initially be focused on
Multicom's Saint Elmo vanadium project in North Queensland,
Australia.
Financial
The Company has continued to be assiduous in keeping its
overheads to the minimum necessary, whilst maintaining required
expenditure on business development and intellectual property
protection. Expenses overall have once again been managed lower
year-on-year.
In February 2017 and in November 2017, the Company raised,
through equity placings of new ordinary shares to institutional and
other investors, gross amounts of GBP750,000 and GBP600,000
respectively. The net proceeds of the placings were for general
working capital purposes and also in part in the most recent
placing for a potential corporate opportunity. The Company's cash
position at 31 December was GBP995,000.
With the net proceeds from the placings and based on the current
budget, the Company should have adequate working capital through
until the end of June 2019.
Commercialisation activities
We remain optimistic that we may benefit from a change in the
ownership of the Sivas copper mineral property ("Sivas") in the
Republic of Turkey where we have maintained interest and
involvement in developing the optimum processing method using
Alexander technologies.
Separately, Alexander has investigated several other
commercialisation opportunities for its Leaching Technologies to
recover copper, cobalt and zinc in various countries. In
particular, we have had strong interest from companies active in
Africa and also signed a marketing agreement with Dr. Jadambaa
Temujin, currently Chief Research Scientist at the Institute of
Chemistry and Chemical Technology, part of the Mongolian Academy of
Sciences, for Mongolia.
Lithium recovery R&D
In March 2017, Alexander announced an exciting new R&D JV
for the recovery of lithium from hard rock sources. The JV is
between the Company and Dr. Nicholas Welham, Alexander's Principal
Technology Consultant for ammoniacal and hypochlorous acid
leaching.
Alexander will be entitled to be the initial sole funder of the
JV in return for an economic interest of up to 80 per cent. in a
worldwide exclusive licence ("Licence") to commercialise the new
technology(ies). The JV will be in stages, with stage 1, proof of
concept, budgeted to cost US$10,000 and expected to be completed in
a few months' time following some procedural delays. Thereafter, if
stage 1 is favourable, Alexander may agree to fund part or all of
the next stages, including a mini pilot plant, budgeted for an
additional US$240,000 and expected to take 12-18 months to
complete.
As an acknowledged expert in lithium and hydrometallurgy,
working with Dr. Welham on this project offers the exciting
potential to develop new lithium processing intellectual property
in a sector of major interest. The JV is complementary to our
existing cobalt recovery technology as cobalt is an essential
component in lithium ion batteries.
With this new initiative, the company is involved in innovative
processing technology for four of the so-called 'technology metals
of the future' - copper, cobalt, vanadium and lithium. All of them
have an essential use in energy storage units or batteries for
either electric vehicle ("EV") or Grid power storage unit
manufacture. There is evidence to suggest that Lithium-Ion
batteries also have significant growth potential for use in the
grid power electricity storage sector with first commercial
contracts now under adoption in the USA.
MetaLeach(R) registered patent summary
Method Country
AmmLeach(R) family patents
Ammoniacal Leaching Peru, South Africa, African Regional
Intellectual Property Organization ("ARIPO"), Australia,
Canada,
Mexico, USA, Democratic Republic of the Congo, China
Extracting Zinc from Aqueous Ammoniacal Solutions Mexico, USA
Leaching Cobalt from Oxidised Cobalt Ores ARIPO, South
Africa
Leaching of a Copper-containing Ore Australia
Leaching Zinc from a Zinc Ore Canada, USA
Leaching Zinc Silicate Ore Australia
Recovering Cobalt from Cobalt-Containing Ores Australia
Leaching of Copper and Molybdenum USA
HyperLeach(R) family patents
Oxidative Leaching of Molybdenum -
Rhenium Sulfide Ores and/or Concentrates Australia, Chile,
Mongolia, USA,
Oxidative Leaching of Sulfide Ores and/or Concentrates
Australia, Canada, Mongolia, USA
Note: ARIPO includes: Botswana, Namibia, Zambia and
Zimbabwe.
Intellectual property
Continued success in the granting of important patents occurred
during 2017, encompassing our AmmLeach(R) and HyperLeach(R)
inventions, with more patent applications in the pipeline. The
table above summarises those patents granted to date.
Directorate Change
During the latter part of the year the Board of Alexander
announced the resignation of Matt Sutcliffe from his position as
Executive Chairman and director of the Company due to health
reasons.
Matt founded Alexander and has been a valued member of the board
since the Company's admission to AIM in 2005. The board expresses
its sincere appreciation to him for his tremendous contribution
over the years, and wishes him all the very best. Matt remains a
supportive shareholder of the Company.
New opportunities
As well as actively working on the commercialisation of our
Leaching Technologies, given the mining industry background of the
Company's directors and senior employees, we have recently
investigated a range of potentially complementary corporate
investment opportunities in the mining sector.
Whilst we have not yet been able to advance an opportunity to
the stage for public disclosure we remain active in evaluating
several of interest.
Shareholder voting process
To further reduce the environmental impact, we will be removing
paper from the voting process for future meetings in favour of a
quicker and more secure method of voting online via our registrars'
website. You will however be able to request a paper proxy if you
wish from our registrars at the appropriate time.
Outlook
Alexander will, we believe, begin to benefit significantly from
its technological and market positioning during 2018 and beyond. In
our view, there is a clear investment trend in physical and
tradeable commodities. This includes infrastructure and energy
related commodities, i.e. copper and zinc, both of which are
already in or close to supply/demand deficit; battery metals for
the EV markets (nickel, cobalt and lithium) which, with targeted
technology adoption rates are driving major order of magnitude
deficits; and grid storage markets (vanadium) and/or the junior
mining equities that hold such assets or the technologies to
enhance them, like Alexander.
This therefore continues to offer shareholders and potential
investors strong fundamentals in the Alexander business and in the
progressive project developments we are engaged in.
Your Board has remained focused in executing its clearly defined
investment plans at all levels and given the background of the
Company's directors and senior employees, we are also actively
reviewing several complementary opportunities of interest in the
mining sector. However, we continue to remain cautious with regards
to the deployment of the Company's financial resources.
Finally, I would like to thank you, Alexander's valued
shareholders, for your continuing support and our employees,
directors, consultants and advisers for their commitment during
difficult times past and for the bright future we see ahead.
Alan M. Clegg
Non-Executive Chairman
14 May 2018
For further information, please contact:
Martin Rosser
Chief Executive
Mobile: +44 (0) 7770 865
341
Alexander Mining plc
Tel: +44 (0) 20 7078 9566
Email: mail@alexandermining.com
Website: www.alexandermining.com
Northland Capital Partners
Limited
Matthew Johnson / Dugald
J. Carlean
(Corporate Finance)
John Howes
(Corporate Broking)
+44 (0) 20 3861 6625
Turner Pope Investments
(TPI) Ltd
Andy Thacker
+44 (0) 20 3621 4120
Consolidated income statement for the year ended 31 December
2017
2017 2016
GBP'000 GBP'000
------------------------------------- -------- --------
Continuing operations
Revenue - -
Gross profit - -
Administrative expenses (329) (435)
Research and development
expenses (101) (144)
Operating loss (430) (579)
Finance income - -
Finance cost - (4)
Loss before taxation (430) (583)
Income tax expense - -
------------------------------------- -------- --------
Loss for the year from continuing
operations (430) (583)
Loss for the year (430) (583)
Basic and diluted loss per
share (pence):
from continuing operations (0.03)p (0.08)p
All components of profit or loss for the year
are attributable to equity holders of the parent.
Consolidated statement of comprehensive income for the year
ended 31 December 2017
2017 2016
GBP'000 GBP'000
----------------------------- -------- --------
Loss for the year (430) (583)
Other comprehensive income: - 4
Total comprehensive loss
for the year attributable
to equity holders of the
parent (430) (579)
------------------------------ -------- --------
Consolidated balance sheet as at 31 December 2017
2017 2016
GBP'000 GBP'000
------------------------------- --------- ---------
Assets
Trade and other receivables 37 39
Cash and cash equivalents 995 259
-------------------------------- --------- ---------
Total current assets 1,032 298
-------------------------------- --------- ---------
Total assets 1,032 298
-------------------------------- --------- ---------
Equity attributable to owners
of the parent
Issued share capital 15,352 14,404
Share premium 14,044 13,772
Accumulated losses (28,866) (28,501)
-------------------------------- --------- ---------
Total equity (530) (325)
-------------------------------- --------- ---------
Liabilities
Current liabilities
Trade and other payables 502 623
Total current liabilities 502 623
-------------------------------- --------- ---------
Total liabilities 502 623
-------------------------------- --------- ---------
Total equity and liabilities 1,032 298
-------------------------------- --------- ---------
Consolidated statement of cash flows for the year ended 31
December 2017
2017 2016
GBP'000 GBP'000
--------------------------------- -------- --------
Cash flows from operating
activities
Operating loss - continuing
operations (430) (579)
Decrease / (Increase) in
trade and other receivables 2 (14)
(Decrease) / Increase in
trade and other payables (121) 93
Increase in provisions - -
Share option & warrant
charge 21 49
Inter-company recharges - -
--------------------------------- -------- --------
Net cash outflow from operating
activities (528) (451)
----------------------------------- -------- --------
Cash flows from investing
activities
Amounts remitted to subsidiary
companies - -
Interest received - -
Net cash inflow/(outflow)
from investing activities - -
--------------------------------- -------- --------
Cash flows from financing
activities
Proceeds from the issue
of share capital, net of
issue costs 1,264 549
Net cash inflow from financing
activities 1,264 549
----------------------------------- -------- --------
Net increase in cash and
cash equivalents 736 98
Cash and cash equivalents
at beginning of year 259 165
Exchange differences - (4)
----------------------------------- -------- --------
Cash and cash equivalents
at end of year 995 259
----------------------------------- -------- --------
Consolidated statement of changes in equity for the year ended
31 December 2017
Share Share Accumulated Total
capital premium losses equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2016 13,825 13,822 (27,971) (324)
-------------------------- --------- --------- ------------ --------
Accumulated loss
for year - - (583) (583)
Translation differences - - 4 4
-------------------------- --------- --------- ------------ --------
Total comprehensive
loss for the year
attributable to
equity holders
of the parent - - (579) (579)
-------------------------- --------- --------- ------------ --------
Share option &
warrant costs - - 49 49
Costs of share
issue - (34) - (34)
Shares issued
including warrant
charge 579 (16) - 563
-------------------------- --------- --------- ------------ --------
At 31 December
2016 14,404 13,772 (28,501) (325)
-------------------------- --------- --------- ------------ --------
Accumulated loss
for year - - (430) (430)
Total comprehensive
loss for the year
attributable to
equity holders
of the parent - - (430) (430)
-------------------------- --------- --------- ------------ --------
Share option &
warrant costs - - 21 21
Costs of share
issue - (100) - (100)
Shares issued
including warrant
charge 948 372 44 1,364
-------------------------- --------- --------- ------------ --------
At 31 December
2017 15,352 14,044 (28,866) (530)
-------------------------- --------- --------- ------------ --------
Notes
1. Financial statements
The financial information set out in this announcement does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006 for the year ended 31 December 2017 or for
the year ended 31 December 2016, but is derived from those
accounts. The financial statements for 2017 will be delivered to
the Registrar of Companies following the Company's Annual General
Meeting. The auditor has issued an unqualified opinion in respect
of the financial statements which does not contain any statements
under the Companies Act 2006, Section 498(2) or Section 498(3). The
auditor has raised a point in relation to going concern as
follows:
"Material uncertainty related to going concern
We draw attention to Note 2(a) to the financial statements
concerning the group and company's ability to continue as a going
concern. The matters explained in Note 2(a) relating to the group's
current cash position and uncertainty surrounding the group's
ability to generate positive operating cash flows, indicate the
existence of a material uncertainty which may cast significant
doubt over the group and company's ability to continue as a going
concern. Our opinion is not modified in respect of this
matter."
2. Summary of significant accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRSs") in force at
the reporting date and their interpretations issued by the
International Accounting Standards Board ("IASB") as adopted for
use within the European Union.
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December each year.
Going Concern
In common with many mining, exploration and intellectual
property development companies, the Company has raised finance for
its activities in discrete tranches to finance its activities for
limited periods. It is not currently anticipated that further
funding will be required in the next twelve months due to the
relatively strong cash position of GBP995,000 at 31 December 2017.
The cash flow forecasts prepared by the directors indicate that the
Company should be able to cover its operating costs for a twelve
months period, however the minimal headroom in the forecast
together with the uncertainty surrounding the Group's ability to
generate positive operating cash flows indicates a significant risk
relating to going concern.
On this basis, the directors have concluded that it is
appropriate to draw up the financial statements on the going
concern basis. However, there can be no certainty that the Group
will generate positive operating cash flows. This indicates the
existence of a material uncertainty that may cast significant doubt
on the ability of the Company and the Group to continue as a going
concern and therefore, that it may be unable to realise its assets
and discharge its liabilities in the normal course of business. The
financial statements do not include the adjustments that would
result if the Company and Group were unable to continue as a going
concern.
b) Research and development expenditure
Research costs are recognised in the income statement as an
expense as incurred. Development costs are recognised in the income
statement as an expense as incurred unless the development project
meets specific criteria for deferral and amortisation. No
development costs have been deferred to date because there is
insufficient information at the balance sheet date to quantify the
expected future economic benefits from the proprietary leaching
technologies.
3. Dividends
The directors do not recommend the payment of a dividend (2016:
nil).
4. Post balance sheet events
On 29 January 2018 Alexander reported that it had received
notification that its MetaLeach Limited ("MetaLeach") subsidiary
has been granted a patent for a Method of Oxidative Leaching of
Sulfide Ores and/or Concentrates in Canada, patent number
2,763,371. The patent has a standard term of 20 years from the
effective date of 26 May 2010 (being the date of original filing -
'HyperLeach(R) ' Patent).
On 21 February 2018 Alexander reported a commercial and
technical partnership agreement with Proses Mühendislik, Danı
manlık, İn aat ve Tasarım AS ("Proses"), a mineral processing
specialist consultancy based in Turkey, Iran and the rest of the
Middle-East, to investigate the commercial use of Alexander's base
metals leaching technology. Subject to securing the necessary
funding, Proses proposes to design and construct a semi industrial
scale processing plant ("SISP") using Alexander's technology in
Turkey and/or Iran. Proses plans to investigate a potential SISP at
the world class Mehdiabad zinc project in Iran. There is the
potential for Alexander to agree a technology licence agreement
with suitable project owners introduced by Proses, with an agreed
success fee payable to Proses.
On 26 February 2018 Alexander reported that it has received
notification that its MetaLeach Limited ("MetaLeach") subsidiary
had been granted an African Regional I.P.O. ("ARIPO") Patent in
Zambia for a Method for leaching cobalt from oxidised cobalt ores,
patent number AP 4394. The patent has a standard term of 20 years
from the effective date of 6 August 2010 (being the date of
original filing of the PCT Application from which the ARIPO patent
is derived).
Annual Report
The Annual Report will be posted to all shareholders by 1 June
2018 and will be available on the Company's website at
www.alexandermining.com. Additional copies will be made available
to the public, free of charge, from the Company's registered office
at 2(nd) Floor, 85-87 Borough High Street, London, SE1 1NH.
Annual General Meeting
The Company's Annual General Meeting will be held at the offices
of Druces LLP, Salisbury House, London Wall, London, EC2M 5PS at
10:30am on Thursday 28 June 2018. The Notice of the AGM and the
associated explanatory notes relating to the resolutions to be
proposed at that meeting will accompany the Company's annual
report.
Disclaimers and forward looking statements
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This news release contains forward looking or future-oriented
financial information, being information which is not historical
fact, including, without limitation, statements regarding potential
results of metallurgical testwork, anticipated applications for the
Company's intellectual property and discussions of future plans and
objectives. Although the Company believes that the expectations
reflected by such information are reasonable, these statements are
based on assumptions and factors concerning future events that may
prove to be inaccurate. Such statements are necessarily based upon
a number of estimates and assumptions based on information
available to the Company about itself and the business in which it
operates. Information used in developing forward-looking
information has been acquired from various sources including third
party consultants, suppliers, regulators and other sources and is
subject to numerous risks and uncertainties that could cause actual
results and future events to differ materially from those
anticipated or projected. Important factors that could cause actual
results to differ materially from the Company's expectations are
the continuing availability of capital resources to fund the
commercialisation of Alexander's technologies; continued positive
results from trials and applications of Alexander's AmmLeach(R) and
HyperLeach(R) technologies and other factors as disclosed in
Company documents filed from time to time. Management uses
forward-looking statements because it believes they provide useful
information to the shareholders with respect to proposed
transactions involving Alexander, and cautions readers that the
information may not be appropriate for other purposes and should
not be read as guarantees of future performance or results.
The Company disclaims any intention or obligation to revise or
update such statements unless required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFWFILFASEFI
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May 14, 2018 11:19 ET (15:19 GMT)
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