TIDMGROC
RNS Number : 4767V
GreenRoc Mining PLC
10 August 2022
GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector:
Mining
10 August 2022
GreenRoc Mining Plc
INTERIM RESULTS FOR THE SIX MONTHS TO 31 MAY 2022
The Board of Directors of GreenRoc Mining Plc (the "Company" or
"GreenRoc") is pleased to report the Company's interim results for
the six months ended 31 May 2022. These incorporate the results of
its subsidiary companies Obsidian Mining Limited ("OML"), White
Eagle Resources Limited ("WERL"), and White Fox Resources Limited
("WFRL") (together, the "Subsidiary Companies", collectively with
GreenRoc, the "Group").
Highlights
-- Maiden JORC Resource announced in March 2022 at Amitsoq
Island of 8.3 million tonnes (Mt) at an average grade of 19.75%
Cg.
-- Exploration Target for Amitsoq Island deposit increased to
5-15 Mt at a grade range of 18-22% Cg, and for Kalaaq deposit
increased to 6-10 Mt at a grade range of 17-33% Cg.
-- Drilling programme underway at Amitsoq targeting significant increase in JORC Resource.
-- Following 2021 drill programme at Thule Black Sands (TBS),
revised resource assessment in respect of current JORC Resource of
19Mt at 8.9% in-situ ilmenite expected in coming weeks.
-- Environmental and Social Impact Assessment consultants
engaged to commence work on the EIA and SIA studies necessary for
future exploitation licence applications.
-- Bathymetric surveying being undertaken at TBS, to provide
data for planning of port facilities.
-- Stefan Bernstein, a senior geologist with considerable
experience in Greenland mining sector, appointed CEO in May
2022.
CEO Stefan Bernstein said: "In my first interim results as CEO,
I am pleased to be able to report on the strong progress made
during the period. GreenRoc was admitted to AIM just less than a
year ago with the objective of becoming a key supplier of critical,
high-demand, high-value minerals and I believe the Company has made
great strides towards this goal. Amitsoq has not only been
established as one of the highest-grade graphite deposits globally,
but also a project with extensive resource potential, as indicated
by the recently enlarged Exploration Targets. Based on the
encouraging results to date, drilling is now underway to further
upgrade and increase the current Maiden JORC Resource and we look
forward to keeping the market updated with the results of this as
they become available.
"We are also looking forward to receiving, and sharing with the
market, the long-awaited results from the 2021 drilling campaign at
TBS, which are expected in the coming weeks. We are hopeful that
these will lead to an upgraded mineral resource and provide the
foundation for feasibility studies. In support of this, we have
finalised a summer/autumn field work programme due to commence this
quarter, with the objective of fast-tracking TBS to mine
development status, a milestone we are also focussed on achieving
at Amitsoq.
"The remainder of the year is accordingly expected to be
extremely active, particularly as alongside the 2022 field season,
additional work programmes are being undertaken to support
exploitation permit applications."
Since its IPO in September 2021, the Company's focus has been on
analysing and interpreting the drill core and other samples
collected during the 2021 field season at GreenRoc's flagship
projects, Amitsoq and TBS and on the design and preparation for the
2022 field season.
The 2022 drilling programme at Amitsoq Island has commenced, as
has the field programme at TBS which is focused on environmental,
archaeological and bathymetric surveying. The archaeological study
is a required part of the exploitation permitting process and the
bathymetric survey provides water depth data for planning of port
facilities. GreenRoc management will also be visiting both sites in
September as part of the Company's evaluation of future
infrastructure and mineral processing locations.
Amitsoq Graphite Project
Following the completion of the 2021 drill programme, the
Company was able to announce a maiden JORC Resource at the Amitsoq
Island deposit of 8.3 million tonnes (Mt) at an average grade of
19.75% Graphitic Carbon (Cg), giving a total graphite content of
1.63 million tonnes.
In addition, the Exploration Target for the Amitsoq Island
deposit has increased to a tonnage range of 5-15 Mt at a grade
range of 18-22% Cg, with the deposit open along strike
(predominantly to the north) and down dip to the west.
At the Kalaaq mainland project area, a short distance to the
south of Amitsoq Island, the channel and field sampling work in
2021 led to an increase in the Exploration Target at that site to a
range of 6-10 Mt at a grade range of 17-33% Cg.
During July 2022, the Company announced that it was granted an
exploration licence over a new area, covering a potential southerly
extension to the Kalaaq deposit as well as several known graphite
showings which are separate from both the Amitsoq Island and Kalaaq
deposit. Exploration of these sites is being carried out by the
Company's geologists during the present field campaign.
Thule Black Sands (TBS) Ilmenite Project
During 2021, a 249-hole drilling campaign was completed at TBS,
with assay results and a revised Resource assessment expected in
the coming weeks.
EIA and SIA Work
During 2022, the Company has appointed consultants to progress
the work which will be necessary to move both Amitsoq and TBS into
the development stage and to the point where formal applications
for exploitation licences can be submitted to the Greenland
Government. BioApp Greenland, a Danish/Greenlandic-based contractor
and environmental expert with extensive operational experience in
Greenland, has been engaged to undertake the second year of
baseline studies at both Amitsoq and TBS and this will feed into
its work on the Environmental Impact Assessment ("EIA") for both
projects. Meanwhile, NIRAS A/S, a Danish/Greenlandic
multi-disciplinary engineering consultancy, also with extensive
Greenland experience, will lead a series of workshops with key
stakeholders and interest groups as part of its Social Impact
Assessment ("SIA") work at TBS.
In addition, the international mining consultancy SLR Consulting
has been engaged to undertake preliminary studies on mining methods
and processing plant options for both TBS and Amitsoq. The results
of these studies will also be fed into the Company's EIA and SIA
work.
Obtaining the approval of the Greenlandic authorities to an EIA
and an SIA is a fundamental condition to the Company being able to
obtain exploitation licences for both projects, and as such this
work is expected to be a key focus for the Company over the next 12
months or so.
Corporate
Stefan Bernstein was appointed CEO with effect from 1 July 2022.
Stefan is a Danish geologist with over 30 years' experience in
Greenland's mining sector, spanning both corporate and governmental
advisory roles, and as such he brings a very strong knowledge and
understanding of the country and its mineral wealth.
Financial Results
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP484k (Period ended Nov
2021: GBP306k). GreenRoc Mining Plc was incorporated in March 2021,
but activity only commenced on 28 September 2021, when the Company
acquired Alba's Greenland mining portfolio in conjunction with its
IPO and Admission to AIM. Since then, corporate overheads,
consisting primarily of salaries and professional and listing
costs, have been expensed as incurred, while exploration
expenditure has been capitalised as an intangible asset in line
with the Group's accounting policy.
At the end of the reporting period, the Group's cash was GBP1.8
million, a net cash outflow of GBP1.5 million, primarily consisting
of exploration expenditure of GBP0.8 million, cash administration
costs of GBP0.4 million, and movement in working capital of GBP0.3
million.
The basic and diluted loss per share was 0.43 pence (Nov 2021:
loss of 1.11 pence).
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the Company's ability to execute
and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information, please contact:
GreenRoc Mining Plc
Stefan Bernstein, CEO +44 20 3950 0725
Cairn Financial Advisers LLP (Nomad)
James Caithie/Sandy Jamieson/Louise O'Driscoll +44 20 7213 0880
OvalX (Broker)
Tom Curran / Thomas Smith +44 20 7392 1494
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2022
Unaudited Unaudited Audited Period from 17
Six months ended 31 May Period from 17 March to 31 March to 30 Nov 2021
2022 May 2021
GBP'000 GBP'000 GBP'000
Revenue - - -
Cost of sales - - -
--------------------------- --------------------------- ---------------------------
Gross profit - - -
Administrative expenses (483) - (305)
--------------------------- --------------------------- ---------------------------
Operating loss (483) - (305)
Finance expense (1) - (1)
--------------------------- --------------------------- ---------------------------
Loss for the period before
tax (484) - (306)
Taxation - - -
--------------------------- --------------------------- ---------------------------
Loss for the period from
continuing operations (484) - (306)
--------------------------- --------------------------- ---------------------------
Attributable to:
Equity holders of the parent (484) - (306)
--------------------------- --------------------------- ---------------------------
Earnings per ordinary share
attributable to the
ordinary equity holders of
the parent
--------------------------- --------------------------- ---------------------------
Basic and diluted (pence) (0.43) - (1.11)
--------------------------- --------------------------- ---------------------------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2022
Unaudited Unaudited Audited Year
31 May 2022 31 May 2021 30 Nov 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible fixed assets 9,036 - 8,259
------------- ------------- -------------
Total non-current assets 9,036 - 8,259
Non-current liabilities
Deferred tax (1,004) - (1,004)
------------- ------------- -------------
Total non-current liabilities (1,004) - (1,004)
Current assets
Trade and other receivables 101 - 64
Cash and cash equivalents 1,805 - 3,269
Receivable from parent entity - 50 -
------------- ------------- -------------
Total current assets 1,906 50 3,333
------------- ------------- -------------
Current liabilities
Trade and other payables (190) - (482)
Payable to parent entity (75) - (52)
------------- ------------- -------------
Total current liabilities (265) - (534)
------------- ------------- -------------
Net current assets 1,641 50 2,799
------------- ------------- -------------
Net assets 9,673 50 10,054
------------- ------------- -------------
Capital and reserves
Share capital 161 50 161
Share premium 10,033 - 10,033
Share-based payment reserve 214 - 166
Retained earnings (735) - (306)
Total equity 9,673 50 10,054
------------- ------------- -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2022
Unaudited Unaudited Audited Period
Six months Period from from 17 March
ended 31 17 March to 30 Nov
May 2022 to 31 May 2021
2021
Cash flows from operating activities
Operating loss (483) - (305)
Adjustments for:
Share-based payment charge 103 - 39
Bonuses settled in shares - - 45
(Decrease)/increase in creditors (292) - 202
Increase in debtors (37) (64)
------------ ------------- ---------------
Net cash used in operating activities (709) - (83)
------------ ------------- ---------------
Cash flows from investing activities
Capitalised exploration expenditure (777) - (475)
Net cash used in investing activities (777) - (475)
------------ ------------- ---------------
Cash flows from financing activities
Proceeds from issue of shares - - 5,076
Cost of issue - - (800)
Increase in/(repayment of) loan
from parent 23 - (448)
Finance expense (1) - (1)
Net cash generated from financing
activities 22 - 3,827
------------ ------------- ---------------
Net (decrease)/increase in cash
and cash equivalents (1,464) - 3,269
Cash and cash equivalents at 3,269 - -
beginning of period
------------ ------------- ---------------
Cash and cash equivalents at
end of period 1,805 - 3,269
------------ ------------- ---------------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with UK-adopted International
Accountant Standards ("UK-adopted IAS") as they apply to the Group
for the six months ended 31 May 2022.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP484k (May 2021: nil;
November 2021: loss of GBP306k) by the weighted average number of
shares of 111,200,001 (May 2021: 5,000,000; November 2021:
27,531,396) in issue during the period. The diluted loss per share
calculation is identical to that used for basic loss per share as
the exercise of warrants would have the effect of reducing the loss
per ordinary share and therefore is not dilutive under the terms of
Financial Reporting Standard 22 "Earnings Per Share".
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