31
October 2024
Europa Metals
Ltd
("Europa
Metals", the "Company" or the "Group") (AIM, AltX: EUZ)
Final Results for the Year
Ended 30 June 2024
Europa Metals, the European focused
lead, zinc and silver developer, is pleased to announce its
final results for the year ended 30 June 2024.
A pdf
copy of the full audited Annual Report and Accounts is available on
the Company's website
www.europametals.com and
at
the following link: http://www.rns-pdf.londonstockexchange.com/rns/3911K_1-2024-10-31.pdf,
and
will shortly be posted to shareholders who have requested
hardcopies. The Company will advise of the timing and location of
its 2024 Annual General Meeting in due course
For further information on the
Company, please visit www.europametals.com or
contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director
and Company Secretary (Australia)
T: +61 8 9486 4036
E:
dsmith@europametals.com
Myles Campion, Executive Chairman
and acting CEO (UK)
E:
mcampion@europametals.com
Beaumont Cornish (Nominated
Adviser/Broker)
James Biddle/Roland
Cornish
T: +44 (0) 20 7628 3396
Questco Corporate Advisory
Proprietary Limited (JSE
Sponsor)
Danielle Christodoulou
T: +27 (11) 011 9216
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014
as it forms part
of United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
Key Extracts from
the Company's audited Report and Accounts are set out
below:
Chairman and Interim
CEO's statement
During the financial year ended 30
June 2024 and subsequently, Europa Metals Ltd ("Europa Metals" or
the "Company") has been steadily advancing the Toral project via
the third party definitive agreement with Denarius Metals Corp
(Cboe:DMET, OTCQB:DNRSF).
Results were received from the 2023
drilling campaign, with assays from seven drill holes at Toral each
reporting significant mineralization:
· TOD-044 of 7.95m@4.46% ZnEq(PbAg), including:
o 4.25m@6.17% ZnEq(PbAg); and
o 1.55m@11.40% ZnEq(PbAg)
· TOD-045 of 4.95m@22.71% ZnEq(PbAg)
· TOD-046 of 1.50m@11.64% ZnEq(PbAg), including:
o 1.00m@15.84% ZnEq(PbAg)
· TOD-047 of 0.6m@18.34% ZnEq(PbAg) and 2.4m@3.72%
ZnEq(PbAg)
· TOD-048 of 4.7m@6.68% ZnEq(PbAg), including:
o 1.65m@14.41% ZnEq(PbAg)
· TOD-048 of 6.65m@8.12% ZnEq(PbAg) including:
o 3.80m@12.58% ZnEq(PbAg)
· TOD-049 of 5.00m@6.91% ZnEq(PbAg), including:
o 1.25m@20.93% ZnEq(PbAg)
· TOD-050 of 3.90m@10.30% ZnEq(PbAg), including:
o 1.45m@20.69% ZnEq(PbAg)
· TOD-050 of 2.4m@4.98% ZnEq(PbAg)
In October of 2023 a submission to
the Junta of Castilla and Leon for a mining licence was completed
with all necessary documentation covering the exploitation,
restoration and environmental impact study being
submitted.
In summary the submission envisages
a life of mine of 15 years, mining on average 700,000t of ore per
year from underground, based on the deposit whose technical,
economic and environmental feasibility is in accordance with the
laws and regulations of the region of Castilla y Leon. Including
pre-production and closure plans, Toral's 18 year operations will
create over 360 direct local employment opportunities and
approximately 1,400 indirect jobs in the region.
Europa and Denarius, as part of the
agreement, have also signaled the ambition to secure potential
further concessions in the surrounding Northern Spain region
therefore expanding the footprint around Toral with several
applications being made over exploration ground during the
period.
Subsequent to the reporting period,
Europa announced in September the proposed sale of the Toral
Project to Denarius for 7,000,000 shares in Denarius (Cboe:DMET) at
CAD$0.50, for a total value of CAD$3.5m. This proposal was
successfully passed by all shareholders at an extraordinary general
meeting on 25th October. This makes Europa a significant
shareholding in a fast-growing Canadian mining company in Denarius
and gives exposure to not only Toral, which we know very well, but
also Zancudo, a gold mine coming on stream in Colombia in the next
six months, restarting the AquaBlanca nickel-copper mine in
southern Spain, and Lomero Poyatos, a polymetallic Cu-Au-Zn-Pb_Ag
deposit in southern Spain.
Over the coming period, the Board
will continue with its endeavours to capitalise on the potential of
its shareholding in Denarius.
In last year's statement I signaled
that Europa would pursue our stated business development strategy
and identify promising complimentary opportunities for portfolio
expansion. In September we announced the intention to acquire
Viridian metals who own 100% of the Tynagh brownfield Pb/Zn/Cu/Ag
project in the Republic of Ireland (the "Proposed
Transaction").
The Tynagh minesite operated as an
oxide open pit and laterly as a small sulphide underground
operation between 1973 and 1980, where from the open pit they mined
secondary oxidised material containing 16-18% combined zinc and
lead. This oxidised material and limited processing technology at
the time led to poor recovery of the metals resulting in a high
grade tailings product.
Today there is a 6.7Mt surface waste
Mineral Resource declared in terms of the Candian Institute of
Mining, Metallurgy and Petroleum Definition Standards ("CIM
Definition Standards") and reported in an NI 43-101, at the site,
plus a possible 3.0mt of non compliant resources:
· 4.0mt@6.1% combined Zn+Pb, 1.4 Oz/t Ag (44g/t Ag), 18.95%
BaO
· 2.7mt@1.7% combined Zn+Pb, 0.4 Oz/t Ag (13g/t Ag), 9.5%
BaO
Viridian understands that the prior
operators had realised that much of the original metal content
would be in the tailings and that re-treatment may be possible and
carefully stored and segregated the material with this in mind. The
metal content in the tailings facility is an equivalent grade to
what is being mined underground elsewhere today.
It is envisaged that Europa will
undertake the necessary requirements to conclude a definitive
feasibility study and apply for an operating licence for the
re-cycle and reclamation project. In addition, we will conduct
exploratory drilling on the historical hard rock resources within
the lease, looking to upgrade the Zn/Pb/Ag resources to a
43-101/JORC standard and also define further the significant Cu
intersections previously drilled.
It is the intention that Julian
Vickers will become Chief Executive Officer of the Company on
completion of the transaction. Julian identified Tynagh over 10
years ago and has both funded and led the technical advancement of
the project since its inception. Julian graduated with a first
class honours degree in Mining Geology from the Royal School of
Mines, Imperial College, in 1987 and also holds an MBA from the
London Business School. He has wide experience of deal making and
financing in the natural resources sector and has spent 35 years in
technical, commercial and financial roles within the
industry.
The existing Europa management team
and board will remain with Myles Campion, Chairman, Dan Smith as
COSec and NED, and Evan Kirby, Non Executive Director, who was
until recently the Chief Metallurgist at Jubilee Metals. Further
appointments will be made as required.
In conclusion, the Europa Metals
board, with announcing the most recent proposed transactions, is
looking to put the company on a firm financial footing via its
access to equity in Denarius and on a pathway to exploration
success and production at Tynagh.
Myles Campion
Executive Chairman and Interim-CEO
30 October 2024
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For
the year ended 30 June 2024
|
|
|
2024
|
2023
|
|
|
Note
|
$
|
$
|
|
|
|
|
|
|
Other income
|
3(a)
|
277,071
|
177,279
|
|
Administration expenses
|
3(b)
|
(893,471)
|
(1,228,058)
|
|
Exploration expenditure
|
|
(15,935)
|
(990,477)
|
|
Foreign exchange
gain/(loss)
|
|
(445)
|
44,724
|
|
Share of net loss of
associate
|
|
-
|
(115,958)
|
|
Loss on deconsolidation
|
|
-
|
(1,267,907)
|
|
Loss
before taxation
|
|
(632,780)
|
(3,380,397)
|
|
Income tax benefit /
(expense)
|
5
|
-
|
-
|
|
Loss
after income tax for the year from continuing
operations
|
|
(632,780)
|
(3,380,397)
|
|
Net
loss for the year
|
|
(632,780)
|
(3,380,397)
|
|
Other comprehensive income
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
Net exchange (loss)/gain on
translation of foreign operation
|
|
-
|
-
|
|
Other comprehensive income for the year, net of
tax
|
|
-
|
-
|
|
Total comprehensive loss for the year
|
|
(632,780)
|
(3,380,397)
|
|
|
|
|
|
|
Net loss for the year attributable
to:
|
|
|
|
|
Equity holders of the
Parent
|
|
(632,780)
|
(3,380,397)
|
|
|
|
(632,780)
|
(3,380,397)
|
|
Total comprehensive loss for the year
attributable to:
|
|
|
|
|
Equity holders of the
Parent
|
|
(632,780)
|
(3,380,397)
|
|
|
|
(632,780)
|
(3,380,397)
|
|
Loss
per share
|
|
Cents per
share
|
Cents per
share
|
|
Basic loss for the year attributable
to ordinary equity holders of the Parent
|
7
|
(0.66)
|
(3.83)
|
|
Diluted loss for the year
attributable to ordinary equity holders of the Parent
|
7
|
(0.66)
|
(3.83)
|
The
above Consolidated Statement of Profit or Loss and Other
Comprehensive Income should be read in conjunction with the
accompanying notes
Consolidated Statement of Financial Position
As
at 30 June 2024
|
|
|
2024
|
2023
|
|
|
Note
|
$
|
$
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and short term
deposits
|
8
|
252,075
|
653,990
|
|
Trade and other
receivables
|
9
|
64,673
|
23,179
|
|
Total current assets
|
|
316,748
|
677,169
|
|
|
|
|
|
|
Total assets
|
|
316,748
|
677,169
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
12
|
310,773
|
118,902
|
|
Total current liabilities
|
|
310,773
|
118,902
|
|
|
|
|
|
|
Total liabilities
|
|
310,773
|
118,902
|
|
|
|
|
|
|
Net
assets
|
|
5,975
|
558,267
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Contributed equity
|
13
|
49,562,236
|
49,391,945
|
|
Accumulated losses
|
16
|
(52,856,850)
|
(52,224,070)
|
|
Reserves
|
15
|
3,300,589
|
3,390,392
|
|
Total equity
|
|
5,975
|
558,267
|
The above Consolidated Statement of Financial Position is to
be read in conjunction with the accompanying notes in the full
Annual Report and Accounts.
Consolidated Statement of Cash Flows
For
the year ended 30 June 2024
|
|
|
2024
|
2023
|
|
|
Note
|
$
|
$
|
|
Cash
flows used in operating activities
|
|
|
|
|
Receipts from associate
|
|
277,071
|
-
|
|
Exploration and evaluation
expenditure
|
|
(4,792)
|
(990,683)
|
|
Payments to suppliers and
employees
|
|
(672,095)
|
(748,481)
|
|
Net
cash flows used in operating activities
|
20
|
(399,816)
|
(1,739,164)
|
|
|
|
|
|
|
Cash
flows used in investing activities
|
|
|
|
|
Loan to associate
|
|
-
|
(212,330)
|
|
Cash on deconsolidation
|
|
-
|
(120,213)
|
|
Net
cash flows used in investing activities
|
|
-
|
(332,543)
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
Lease principal repayments
|
|
-
|
(16,601)
|
|
Proceeds from issue of
shares
|
|
-
|
1,033,155
|
|
Net
cash flows from financing activities
|
|
-
|
1,016,554
|
|
|
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents held
|
|
(399,816)
|
(1,055,153)
|
|
Net foreign exchange
difference
|
|
(2,099)
|
59,087
|
|
Cash and cash equivalents at 1
July
|
|
653,990
|
1,650,056
|
|
Cash
and cash equivalents at 30 June
|
8
|
252,075
|
653,990
|
|
|
|
|
|
The
above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes in the full Annual Report
and Accounts which can be accessed via the following
link: http://www.rns-pdf.londonstockexchange.com/rns/3911K_1-2024-10-31.pdf