TIDMORR
RNS Number : 0737O
Oriole Resources PLC
29 September 2023
Oriole Resources PLC
('Oriole Resources', 'the Company' or 'the 'Group')
Interim Results for the six-month period ended 30 June 2023
Oriole Resources (AIM:ORR), the AIM-quoted exploration company
focussed on West Africa, announces its unaudited Interim Results
for the six-month period ended 30 June 2023 (the 'Period').
Operational Highlights:
-- Bibemi gold project ('Bibemi'), Cameroon - following the
delivery of Cameroon's first JORC-compliant gold resource in
December 2022, a ground-based geophysics programme was completed
over all four prospects to aid further drill targeting with a view
to resource expansion. During the period, local-level technical
studies also continued to support the conversion of the exploration
licence to an exploitation licence in 2024. Discussions are ongoing
with potential development partners to enable expedited
resource-expansion activities and exploitation at Bibemi;
-- Central Licence Package ('CLP'), Cameroon - work has
continued to focus on the five eastern licences ('Eastern CLP'),
with follow-up exploration at the Mbe prospect ('Mbe') delivering
up to 134.10 grammes per tonne ('g/t') gold ('Au') from selective
rock-chip samples and best pilot trenching intervals of 2.20 metres
('m') grading 8.47 g/t Au and 5.00m grading 2.03 g/t Au. A
ground-based geophysics programme was completed during the period
to support a maiden drilling programme during the next field
season;
-- Wapouzé licence ('Wapouzé'), Cameroon - following the
identification of extensive limestone and marble outcrops, which
may provide suitable feed material for the GBP700 million
Cameroonian cement industry that is largely reliant on imported raw
materials, the Company applied for a change of commodity for the
Wapouzé licence. This has been approved by the Ministry of Mines
and the Company is currently awaiting confirmation of the renewal
of the licence. Once this is approved, the Group will look to
secure an industrial minerals partner to develop the Wapouzé
project through to exploitation on an expedited basis;
-- Senala gold project ('Senala'), Senegal - in April 2023,
Managem Group ('Managem') acquired IAMGOLD Corporation's
('IAMGOLD') controlling interest in Senala and has confirmed its
intention to continue the earn-in for up to a maximum 70% interest
in return for a total USD$8 million spend, to be completed on or
before 28 February 2024. A 2,000m diamond drilling programme is
expected to commence at the Faré prospect later in 2023;
Financial Highlights:
-- The Group's pre-tax loss for the six months to 30 June 2023
was GBP0.86 million (2022: loss of GBP0.39 million), the increase
being attributed to an adverse, non-cash foreign exchange loss on
overseas assets;
-- Administrative expenses decreased to GBP0.52 million (2022:
GBP0.58 million) mainly due to a reduction in Directors'
salaries;
-- Exploration expenditure of GBP0.22 million in Cameroon,
mainly related to geophysics programmes (at certain targets within
the Bibemi and the Eastern CLP project), mapping and rock-chip
sampling in the Eastern CLP licences and reconnaissance work on the
lithium targets at Ndom and Gamboukou licences;
-- During the period, the Directors have supported the Company's
cash position by way of a GBP0.20 million subscription for shares
by Eileen Carr and GBP0.05 million of gross salary sacrificed by
the Board as a whole;
-- The cash balance of the Group as at 30 June 2023 was GBP0.19 million.
Post period events
-- Subsequent to the period end, the Company completed a
simultaneous placing and sharing agreement with Lanstead Capital
Investors L.P ('Lanstead') in respect of 930 million 0.1p ordinary
shares in the Company ('the Lanstead Agreement'). This agreement
will see funds coming to the Company on a monthly basis over the
next two years, with the quantum of those funds dependent upon the
prevailing share price (announcement dated 1 August 2023). The
first payment, of GBP0.03 million, under the Lanstead Agreement has
been received during September;
-- As announced on 11 April 2023, the Company has engaged a
Canadian investment banking firm to secure US$1 million of
project-level exploration financing in return for a 10% non-carried
interest in the Company's 90% shareholding in the Eastern CLP. The
financing was initially scheduled for completion in Q2-2023 but the
Company has been advised that, whilst discussions on the funding
continue, this process will now extend into Q4-2023. The Company
continues to engage with several other groups regarding
project-level investment at the Eastern CLP and is conducting site
visits in October with interested parties.
Eileen Carr, Chair of Oriole, said: "The first half of 2023 has
seen a continuation of our exploration efforts in Cameroon, where
we were able to execute our H1-2023 exploration programme as
planned. The results from this work will allow us to optimise drill
targets for the forthcoming dry season.
"At Bibemi, our widest intersection to date of 14.80m grading
4.26 g/t Au, confirmed our geological model at the Bakassi Zone 1
prospect and enabled the delivery of a maiden resource there late
last year. In the anticipation of additional resources in the area,
work has begun on the application process to convert the current
exploration licence to an exploitation licence, and alongside this
the Board is advancing its discussions with interested development
partners.
"Meanwhile, at the Eastern CLP project, our successful soil
sampling, mapping and rock chipping programmes have attracted some
small-scale artisanal activity that has exposed orogenic gold
veins. Samples from these workings confirmed our expectation of
significant mineralisation within both the veins and the host
rocks. Discussions continue with a number of interested parties who
share our view of the potential of the licence package.
"We are also pleased to report that the application for the
change of commodity for our Wapouzé Licence, to the north of
Bibemi, to that of limestone has been approved. We are now awaiting
licence renewal and once we have received the formal notification
of that renewal, we will progress our search for an industry
partner on this asset. This change shows our ability to assess our
assets quickly and ensure that each project can generate value for
stakeholders by identifying alternative potential revenue
streams.
"In Senegal, we continue to be updated on the ongoing
exploration at the Senala licence by our new partners, Managem. We
anticipate the completion of a 2,000m diamond drill programme on
the Faré prospect later this year, which will see Managem near the
end of its six-year Option Period, being February 2024. By this
date, in order to attain a maximum 70% position in the licence,
Managem must spend or pay to Oriole the balance of the initial US$8
million earn-in amount.
"Life for the junior miner has continued to be difficult, and
since the period end, we have entered an agreement with Lanstead
whereby they have acquired a 26.23% interest in the Company in
exchange for a financing arrangement that will provide a monthly
income to the Company for the next two years. It is the Board's
belief that news-flow over the coming months, and progress with its
active strategy of securing project-level funding on our projects
in Cameroon, will be supportive of an increasing share price that
will see the Lanstead transaction increase in value."
Interim Management Report
The first six months of 2023 coincided with the second half of
the 2022/23 exploration field season in Cameroon, as the rainy
season covers the period July to September. The work so far in 2023
has been preparatory in nature, undertaking technical studies at
Bibemi to support the application for an exploitation licence in
2024, and working towards drill hole targeting at the Mbe prospect
within the earlier-stage Eastern CLP package. The rock and channel
chip sampling that has been completed at Mbe demonstrates the
potential for that licence to deliver a new gold project. Evidence
from the recent artisanal activity would also seem to support our
confidence in the prospectivity of the area. The Board believes
this potential will be replicated across the remainder of the
Eastern CLP as follow-up of regional exploration results continues
to test the gold corridor.
At Bibemi, the maiden JORC-Resource announced late last year
(announcement dated 12 December 2022) provides the foundation for
defining Cameroon's gold endowment and has just scratched the
surface in terms of the potential at Bibemi and indeed the rest of
Cameroon.
In Senegal, where the Company continues to be free-carried,
IAMGOLD Corporation completed the sale of its West African assets,
including its controlling interest in the Senala project, to
Morocco-based Managem Group ('Managem', announcement dated 16 May
2023). Managem is continuing with the earn-in, which is due to
conclude in February 2024, and has planned a 2,000m diamond
drilling programme at the resource-stage Faré prospect. The sale of
nearby Chesser Resources for A$89 million illustrates the potential
value of Oriole's remaining interest in Senala, notwithstanding the
fact that Managem could earn up to a maximum 70% ownership position
during the earn-in period by completion of US$8 million exploration
spend, or payment to Oriole in cash of any shortfall on this
amount.
Funding
The start of 2023 has been dominated by efforts to bring funding
into the Company without an equity raise, either by legacy asset
disposal or by project-level funding initiatives. Progress has been
frustratingly slow on both fronts. The initiative to bring funding
in for the Eastern CLP project, with a Canadian Investment Bank
looking to raise US$1 million for a 10% non-carried interest
(announcement dated 11 April 2023) is still live and confirmation
of this is awaited, which is now expected to be later this year.
The Company continues to engage with several groups regarding
project level investment at the Eastern CLP and is conducting site
visits in October with a number of interested parties.
The Board has been developing its plans to move Bibemi towards
the application for an exploitation licence, which is scheduled for
submission in H1 of 2024. The Board also continues to engage with
groups that have expressed an interest in the early-stage lithium
anomalism discovered within the Central Licence Package.
Efforts to realise value from the legacy assets continue but, in
all cases, progress is outside of the Company's control. The
Turkish courts continue to frustrate us, both in terms of enforcing
the Group's legal rights against errant debtors, and in moving the
Environmental Impact Assessment forward at Muratdere. The Board
also awaits confirmation on Elephant Oil Inc's long-awaited listing
on NASDAQ, which will make the Company's shareholding a realisable
asset. Whilst the listing is in progress, there can be no certainty
of the value of the resultant investment balance. However, the
Board's view is that the value upon listing will be circa US$0.20
million. This has been a long and frustrating process and is
illustrative of the funding issues facing the junior resource
sector currently.
With the project-level funding strategy active but taking longer
to secure than anticipated, and slow progress on asset realisation,
the Board has supported the Company's cash position through direct
investment, as well as ongoing salary sacrifice schemes. However,
as the delays mentioned above continued, it became clear that
equity funding would be required and, after consultation with the
Company's advisors, the Board elected to enter into a placing
agreement with Lanstead Capital Investors L.P. ('Lanstead') in July
of this year (the 'Lanstead Agreement', announcement dated 1 August
2023).
Unlike a standard placing, the Lanstead Agreement will provide
Oriole with funding over a two-year period, with the amount
received each month being subject to the prevailing share price
each month, without the total number of shares being affected.
Whilst currently the share price is below the reference point of
the deal, the Board anticipates that the progress which can be made
over the coming months will act as a driver for a sustained higher
share price, which will provide incrementally higher funds over the
full term of the Lanstead Agreement. The Board notes concerns that
Lanstead will periodically sell down shares; however, whilst
Lanstead is entitled to do so, this must be balanced against the
fact that continued worries about the 'next placing' has held the
share price back for a number of years. The Board's focus is to
deliver the news that will push the share price higher and more
accurately reflect the underlying value of the assets. Doing this
will drive the monthly proceeds higher, providing the Company with
funding for the Group's operational costs alongside any
project-level funding that can be secured. The first payment, of
GBP0.03 million, under the Lanstead Agreement has been received
during September.
Central Licence Package (CLP)
A key focus for the Company is to undertake a maiden drill
programme at the Mbe licence, one of five licences within the
Eastern CLP gold project, within the broader CLP district. Rock
chip samples of up to 134.10 g/t Au (announcement dated 30 January
2023) and best channel samples including 8.47 g/t Au over 2.20m
(announcement dated 21 June 2023) illustrate the potential for
significant success at Mbe and for further gold discoveries within
the Eastern CLP. A ground-based geophysics programme was completed
during the period to assist with drill targeting over the main
anomaly at Mbe and work is underway to secure the services of a
drill rig, subject to the availability of funding. The 12.5 km-long
anomaly at Mbe has been a high-priority target ever since it was
delineated, but there are multiple targets awaiting follow up
within the Eastern CLP throughout the extensive 'gold corridor'
identified by exploration work to date. The nature of exploration
is to gather data, assess results and then decide upon the next
course of action and so these will all be systematically explored
in due course. In the meantime, a successful drill programme at Mbe
will confirm the vertical extension of the systems mapped at
surface and potentially open opportunities for the Group to bring
in more project-level funding at an enhanced valuation.
Figure 1: Simplified summary of the prospective areas across the
CLP. Lithium anomalism identified to date is located in the
southeastern corner of Ndom, with the Gamboukou, and Maboum
licences also having been identified as having highly-prospective
geology.
The routine collection of multi-element data also identified
lithium anomalism in stream and soil samples taken over the Ndom
licence (part of the Eastern CLP), and prompted the Group to secure
the adjacent Gamboukou licence, which appears to cover the same
prospective host rocks. More work is needed to prove up the lithium
potential at both licences, and an investment partner is being
sought to help take this forward.
The three licences that comprise the Western CLP, immediately to
the west of the Eastern CLP, are so far unexplored, and have been
voluntarily suspended with the approval of the Cameroonian
Ministry, pending resolution of access issues related to an
over-lapping hunting concession. The Board believes that these
concerns can be resolved but welcomes the move by the Ministry of
Mines to freeze the positions, taxes and commitments pending that
resolution.
Bibemi
With the announcement of a maiden JORC resource (announcement
dated 20 December 2022), the Company is undertaking the necessary
steps, including local-level technical studies, to convert Bibemi's
exploration licence to an exploitation licence during 2024. The
Board believes that the maiden JORC inferred resource of 305,000
ounces ('oz') Au at 2.19g/t, can be added to significantly, through
a targeted resource-expansion drilling programme at Bakassi Zone 1.
In addition, drill-based resource delineation at the three other
prospects on the licence, including at Lawa East where the most
recent phase of drilling returned 3.00m grading 12.30 g/t Au from
58.00m down hole (announcement dated 15 September 2022), is
planned.
A ground-based geophysics programme was completed during the
period to assist with drill targeting over all four prospects.
An accelerated exploitation plan for Bibemi, whilst at the same
time maximising the potential for resource-expansion, is a key
focus for the Company and discussions continue with interested
development groups.
Wapouzé
Following a review of the historical data in 2022-2023, it was
determined that gold prospectivity at Wapouzé was lower than that
at the Group's nearby Bibemi project. However, it was highlighted
that there was the potential for cement-quality limestone within
the licence area.
The Company submitted a formal request for a change of substance
at the Wapouzé licence area from gold to industrial minerals. This
has been approved by the Ministry of Mines and the Company is
awaiting confirmation of the renewal of the licence. Once this
renewal is approved, the Company will look to secure an industrial
minerals partner to develop the Wapouzé project through to
exploitation on an expedited basis.
Senala
The acquisition of IAMGOLD's West African portfolio by Managem,
including its controlling interest in the Senala project in
Senegal, was completed during the period. Managem has confirmed its
intention to continue with the earn-in, which is in its sixth and
final year and gives Managem the right to earn up to a maximum 70%
interest in Senala by completing an US$8 million spend by the end
of February 2024, or payment to Oriole of the outstanding balance
in cash. The 2023 work programme is expected to commence later this
year, with 2,000m of drilling planned to further test the
resource-stage Faré prospect. Expenditure to date has been
approximately US$5.6 million.
Senegal remains a hot spot for merger and acquisition activity,
with the previously mentioned sale of Chesser Resources to Fortuna
Silver for A$89 million during the period being the latest in a
series of corporate transactions in this gold hot spot. As such,
the Senala licence remains of interest to several exploration and
mining companies with activities in the area and continues to be a
valuable asset to the Group.
Legacy Assets
At the Muratdere copper-gold porphyry project ('Muratdere') in
Turkey, the Company has a 1.2% royalty interest. As reported in the
2022 Annual Report the Muratdere Environmental Impact Assessment
('EIA') was approved in August 2022. However, further news on
potential mine development is pending the outcome of a local appeal
that is still ongoing. The project's initial mine plan covered 16
million tonnes (of a total 51 million tonne resource) and, once in
production, is expected to deliver 68,000 tonnes of copper, and a
significant multi-year royalty for the Group. The Company regularly
updates royalty groups that have expressed an interest in acquiring
the royalty, and as a resolution to the legal challenge to the EIA
moves ever closer, the Board is confident that there will be ready
buyers for this asset.
The wider portfolio of receivables in Turkey totals
approximately US$1.7 million and, whilst progress towards
realisation has been frustratingly slow, the Board remains
confident that substantial value will eventually be recovered.
In East Africa, the Company continues to monitor its investment
in Thani Stratex Djibouti ('TSD'). The drilling programmes at all
projects in Djibouti have been delayed due to ongoing licence
renewal discussions. The Company currently has an 8.03% interest in
TSD's assets.
Results
The Group has posted a loss before tax for the Period of GBP0.86
million (2022: loss of GBP0.39 million). A significant component of
this increased loss is the unrealised exchange movement on the
Senala asset, which is denominated in Euros. A loss of GBP0.20
million in 2023 compares to a gain of GBP0.17 million in the
comparative period, giving an adverse foreign exchange swing of
GBP0.37 million, which accounts for the majority of the increase in
operating loss.
At the administrative expenses level, costs decreased from
GBP0.58 million to GBP0.52 million, reflecting ongoing salary
sacrifice initiatives, whereby salary is converted to equity
interests in the Company, and other reductions. GBP0.05 million
(2022: GBP0.00) of the 2023 administrative expenses comprises a
non-cash share-based payment amount, reflecting the accounting
treatment for share options issued under salary sacrifice
arrangements.
The Company received another research and development tax credit
during the Period, this time for GBP0.16 million. The Board is
monitoring proposed changes to the research and development tax
credit scheme and believes that some support will continue for the
activities of the Group. As a result of this tax credit, the Group
reports a loss after tax of GBP0.71 million (2022: profit of
GBP0.01 million).
At 30 June, the Company had GBP0.19 million in cash and has,
since the period end, completed the Lanstead Agreement, which will
provide funds over the next two years, on a monthly basis
commencing in September. Prior to that, the Company's Chair, Eileen
Carr, had made an investment of GBP0.20 million into the equity of
the Company.
Additionally, over the period, and since the period-end, the
Directors have continued to invest and increase their own personal
stake in the Company via a salary sacrifice scheme, moving the
scheme from the issue of shares to share options, which is more tax
efficient for the Company.
Drivers for Growth
The early-stage results in the Eastern CLP have been excellent
and confirm the Board's faith that this region has the potential to
be a new gold district. Maiden drilling at the Eastern CLP project
is the Company's top priority and the Board continues to anticipate
funding coming in at project level to allow drilling at the Mbe
prospect. The Board believes that confirmation of funding will be a
significant driver of growth in the share price, and the management
team continues to review all potential routes for project
financing.
As previously mentioned, securing a joint-venture partner for
Bibemi is under active consideration and the Board believes that
the path to moving the project towards an exploitation licence, and
a potential 1 million ounce gold resource, is achievable within the
near-term, with the right partner.
We remain in discussions with several groups who have expressed
interest in the development opportunity at Bibemi, the opportunity
to participate in project level funding in the Eastern CLP package
and in the possibility of a future sale of the Senala asset.
Work will also commence shortly on securing an industry partner
for our Wapouzé Licence, located to the north of Bibemi, where
commercial-grade limestone has been identified.
At the Senala licence in Senegal, the Board looks forward to
Managem recommencing work on this highly-prospective asset,
following its recent acquisition of IAMGOLD's interest during a
wider West Africa-focussed transaction. Drilling scheduled for
Q4-2023 will further advance the Faré target and the Board looks
forward to receiving those results in due course. The earn-in by
Managem is scheduled to complete in February 2024, which will give
clarity on the Company's residual ownership position and may well
provide a significant liquidity event opportunity.
Another driver of value that the Board remains focussed on and
determined to realise value from are the Group's legacy assets.
However, uniformly these legacy assets are currently in
non-producing development projects and, as such, the list of
potential buyers is limited. As these projects progress, such as
Muratdere with its EIA process, that list will expand and the
potential for their sale will increase.
The Board's priority is to turn these numerous potential drivers
for positive news into share price growth, which will in turn
improve the level of funding yielded from the Lanstead
Agreement.
The Board continues to believe the asset base of the Company is
much stronger than the market capitalisation may suggest, and
therefore continues to invest into the business.
Tim Livesey
Chief Executive Officer
On behalf of the Board
28 September 2023
Condensed Consolidated Interim Financial
Statements
Statement of Consolidated Comprehensive
Income
Notes 6 months 6 months to
to 30 June 2022
30 June Unaudited
2023 GBP'000
Unaudited
GBP'000
Continuing operations
Revenue - -
-------------------------------------------------------------- ---- ------------- ----------------
Administration expenses (523) (583)
-------------------------------------------------------------- ---- ------------- ----------------
Other (losses)/gains (340) 191
-------------------------------------------------------------- ---- ------------- ----------------
Loss before income tax (863) (392)
-------------------------------------------------------------- ---- ------------- ----------------
Income tax credit 157 403
-------------------------------------------------------------- ---- ------------- ----------------
(Loss)/profit for the period (706) 11
-------------------------------------------------------------- ---- ------------- ----------------
Other comprehensive income:
-------------------------------------------------------------- ---- ------------- ----------------
Items that may be reclassified subsequently
to profit or loss:
-------------------------------------------------------------- ---- ------------- ----------------
Exchange differences on translation of
foreign operations 70 15
-------------------------------------------------------------- ---- ------------- ----------------
Items that will not be reclassified subsequently
to profit or loss
-------------------------------------------------------------- ---- ------------- ----------------
Change in fair value of other financial
assets - 48
-------------------------------------------------------------- ---- ------------- ----------------
Other comprehensive income net of tax 70 63
-------------------------------------------------------------- ---- ------------- ----------------
Total comprehensive (loss)/income for
the period (636) 74
============================================================== ==== ============= ================
(Loss)/profit for the period attributable
to:
-------------------------------------------------------------- ---- ------------- ----------------
Owners of the Parent Company (697) (4)
-------------------------------------------------------------- ---- ------------- ----------------
Non-controlling interest (9) 15
-------------------------------------------------------------- ---- ------------- ----------------
(Loss)/profit for the period (706) 11
============================================================== ==== ============= ================
Total comprehensive income attributable
to:
-------------------------------------------------------------- ---- ------------- ----------------
Owners of the Parent Company (593) 65
-------------------------------------------------------------- ---- ------------- ----------------
Non-controlling interest (43) 9
-------------------------------------------------------------- ---- ------------- ----------------
Total comprehensive (loss)/ income for
the period (636) 74
============================================================== ==== ============= ================
Loss per share - continuing operations:
-------------------------------------------------------------- ---- ------------- ----------------
Basic (pence) 8 (0.03) (0.00)
-------------------------------------------------------------- ---- ------------- ----------------
Diluted (pence) 8 (0.03) (0.00)
-------------------------------------------------------------- ---- ------------- ----------------
Statement of Consolidated Financial
Position
At 30 June 2023
Notes 30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
ASSETS
-------------------------------------------- ------ ----------- ----------- ------------
Non-current assets
-------------------------------------------- ------ ----------- ----------- ------------
Property, plant and equipment 20 38 33
-------------------------------------------- ------ ----------- ----------- ------------
Intangible assets 4 10,591 10,182 10,559
-------------------------------------------- ------ ----------- ----------- ------------
Investments in equity-accounted associates 5 - 1,449 -
-------------------------------------------- ------ ----------- ----------- ------------
Other financial assets 6 812 836 835
-------------------------------------------- ------ ----------- ----------- ------------
11,423 12,505 11,427
-------------------------------------------- ------ ----------- ----------- ------------
Current assets
-------------------------------------------- ------ ----------- ----------- ------------
Trade and other receivables 128 65 196
-------------------------------------------- ------ ----------- ----------- ------------
Cash and cash equivalents 190 432 507
-------------------------------------------- ------ ----------- ----------- ------------
318 497 703
============================================ ====== =========== =========== ------------
Total assets 11,741 13,002 12,130
============================================ ====== =========== =========== ------------
EQUITY
Capital and reserves attributable
to owners of the Company
-------------------------------------------- ------ ----------- ----------- ------------
Ordinary share capital 7,056 6,200 6,929
-------------------------------------------- ------ ----------- ----------- ------------
Share premium 25,069 24,758 24,980
-------------------------------------------- ------ ----------- ----------- ------------
Other reserves 1,636 1,673 1,513
-------------------------------------------- ------ ----------- ----------- ------------
Retained earnings (21,962) (19,681) (21,299)
-------------------------------------------- ------ ----------- ----------- ------------
Total equity attributable to owners
of the Company 11,799 12,950 12,123
-------------------------------------------- ------ ----------- ----------- ------------
Non-controlling interests (284) (279) (241)
-------------------------------------------- ------ ----------- ----------- ------------
Total equity 11,515 12,671 11,882
------------
LIABILITIES
Current liabilities
-------------------------------------------- ------ ----------- ----------- ------------
Trade and other payables 226 331 248
============================================ ====== =========== =========== ============
Total liabilities 226 331 248
-------------------------------------------- ------ ----------- -----------
Total equity and liabilities 11,741 13,002 12,130
============================================ ====== =========== ----------- ------------
Statement of Consolidated Changes in Equity
For the 6 months ended 30 June 2023
Share Share Other Retained Non-controlling Total
Capital Premium Reserves Earnings Total interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January 2023 6,929 24,980 1,513 (21,299) 12,123 (241) 11,882
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Comprehensive income for the
period:
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
* Loss for the period - - - (697) (697) (9) (706)
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
* Other comprehensive income - - 70 34 104 (34) 70
Total comprehensive income
for the period - - 70 (663) (593) (43) (636)
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Issue of share capital net
of expenses 127 89 - - 216 - 216
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Share based payments - - 53 - 53 - 53
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Total contributions by and
distributions to owners of
the parent recognised directly
in equity 127 89 53 - 269 - 269
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
As at 30 June 2023 7,056 25,069 1,636 (21,962) 11,799 (284) 11,515
============================================ ======= ======== ======== ======== ======= =============== ============
As at 1 January 2022 6,200 24,758 1,606 (19,838) 12,726 (133) 12,593
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Comprehensive income for the
period:
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
* Profit/(loss) for the period - - - (4) (4) 15 11
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
* Other comprehensive income - - 63 6 69 (6) 63
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
* Transfer between reserves - - - 155 155 (155) -
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Total comprehensive income
for the period - - 63 157 220 (146) 74
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Share based payments - - 4 - 4 - 4
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
Total contributions by and
distributions to owners of
the parent recognised directly
in equity - - 4 - 4 - 4
-------------------------------------------- ------- -------- -------- -------- ------- --------------- ------------
As at 30 June 2022 6,200 24,758 1,673 (19,681) 12,950 (279) 12,671
============================================ ======= ======== ======== ======== ======= =============== ============
Statement of Consolidated
Cash Flows
6 months 6 months to
to 30 June 2022
30 June Unaudited
2023 GBP'000
Unaudited
GBP'000
------------------------------- ------------ ---------------
Cash flow from operating
activities
------------------------------- ------------ ---------------
Loss before income tax (863) (392)
--------------------------------- ------------ ---------------
Share based payments 53 4
--------------------------------- ------------ ---------------
Depreciation 3 11
--------------------------------- ------------ ---------------
Foreign exchange movements
on operating activities 344 (129)
--------------------------------- ------------ ---------------
Changes in working capital:
------------------------------- ------------ ---------------
Trade and other receivables 39 72
--------------------------------- ------------ ---------------
Trade and other payables (22) (236)
--------------------------------- ------------ ---------------
Net cash flow from operating
activities (446) (670)
--------------------------------- ------------ ---------------
Cash flows from investing
activities
------------------------------- ------------ ---------------
Purchase of property, plant,
and equipment - (1)
--------------------------------- ------------ ---------------
Purchase of intangible assets
(note 4) (222) (661)
--------------------------------- ------------ ---------------
Tax received 157 403
Net cash flow from investing
activities (65) (259)
--------------------------------- ------------ ---------------
Cash flows from financing
activities
------------------------------- ------------ ---------------
Net funds received from issue
of shares 194 -
Net cash flow from financing 194 -
activities
------------------------------- ------------ ---------------
Net decrease in cash and
cash equivalents (317) (929)
--------------------------------- ------------ ---------------
Cash and cash equivalents
at beginning of the period 507 1,361
--------------------------------- ------------ ---------------
Cash and cash equivalents
at end of the period 190 432
================================= ============ ===============
Notes to the consolidated interim financial statements for the
six months ended 30 June 2023
1. General Information
The principal activity of Oriole Resources PLC ('the Company')
and its subsidiaries (together, 'the Group') is the exploration
for, and development of, precious and high-value base metals. The
Company's shares are quoted on the AIM Market of the London Stock
Exchange. The Company is incorporated and domiciled in the UK.
The address of its registered office is Wessex House, Upper
Market Street, Eastleigh, Hampshire SO50 9FD.
2. Basis of preparation
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
UK-adopted international financial standards. The accounting
policies applied in preparing the interim financial information are
consistent with those that have been adopted in the Group's 2022
audited financial statements and are expected to be applied in the
preparation of the 2023 financial statements. Statutory financial
statements for the year ended 31 December 2022 were approved by the
Board of Directors on 8 March 2023 and delivered to the Registrar
of Companies. The report of the auditors on those financial
statements was unqualified.
The Board of Directors approved this Interim Financial Report on
28 September 2023.
The condensed consolidated interim financial statements have
been prepared on a going concern basis. At the date of the
financial statements the Directors expect that the Group will
require further funding to cover corporate overheads and its
operational plans in Cameroon. Operational expenditure includes a
significant discretionary component which the Directors may adjust
depending upon circumstances. The Directors are confident that the
Group will be able to raise further funds as required to meet these
plans over the next 12 months, in cash, by asset disposals, debt
funding or share issues.
There can be no assurance that the asset sales or other means of
cash generation will be successful and this may affect the Group's
ability to carry out its work programmes as expected.
Should the Group be unable to continue trading as a going
concern, adjustments would have to be made to reduce the value of
the assets to their recoverable amounts, to provide for further
liabilities which might arise and to classify non-current assets as
current. The financial statements have been prepared on the going
concern basis and do not include the adjustments that would result
if the Group was unable to continue as a going concern.
Cyclicality
The interim results for the six months ended 30 June 2023 are
not necessarily indicative of the results to be expected for the
full year ending 31 December 2023. Due to the nature of the entity,
the operations are not affected by seasonal variations at this
stage.
Financial Risk Management
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2022 Annual
Report and Financial Statements, a copy of which is available on
the Company's website: www.orioleresources.com . The Group's key
financial risks are the availability of adequate funding and
foreign exchange movements.
Accounting Policies
The condensed consolidated interim financial statements have not
been audited, nor have they been reviewed by the Company's auditors
in accordance with the International Standard on Review Engagements
2410 issued by the Auditing Practices Board. The figures have been
prepared using applicable accounting policies and practices
consistent with those adopted in the audited annual financial
statements for the year ended 31 December 2022.
Critical accounting estimates and judgements
The preparation of condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in note 4 of the Group's 2022 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period. The Directors
believe that the overall value of these assets has been maintained
during the period.
The condensed consolidated interim financial statements have
been prepared under the historical cost convention as modified by
the measurement of certain investments at fair value.
No dividends have been paid in the period (2022: GBPnil).
3. Operating Segments
Operating segments are reported in a manner which is consistent
with internal reports provided to the Chief Operating Decision
Makers, identified as the Executive Directors who are responsible
for allocating resources and assessing performance of the operating
segments. The management structure reflects these segments. The
Group's exploration operations and investments are based in three
geographical areas, namely Turkey, East Africa and West Africa. The
Group's head office is located in the UK and provides corporate and
support services to the Group and researches new areas of
exploration opportunities.
The allocation of profits, losses, assets and liabilities by
operating segment is as follows:
Loss for the period:
Turkey East Africa West Africa UK Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months to 30 June
2023
----------------------- ----------- ------------ ------------ --------- -------------
Administrative costs (4) - (43) (474) (521)
----------------------- ----------- ------------ ------------ --------- -------------
Inter-segment charges - - (146) 146 -
----------------------- ----------- ------------ ------------ --------- -------------
Depreciation - - - (2) (2)
----------------------- ----------- ------------ ------------ --------- -------------
Exchange gains - - (344) - (344)
----------------------- ----------- ------------ ------------ --------- -------------
Other income/losses - - - 4 4
----------------------- ----------- ------------ ------------ --------- -------------
Loss before Income
Tax (4) - (533) (326) (863)
----------------------- ----------- ------------ ------------ --------- -------------
6 months to 30 June
2022
----------------------- ----------- ------------ ------------ --------- -------------
Administrative costs (18) - (58) (505) (581)
----------------------- ----------- ------------ ------------ --------- -------------
Inter-segment charges - - (148) 148 -
----------------------- ----------- ------------ ------------ --------- -------------
Depreciation - - - (2) (2)
----------------------- ----------- ------------ ------------ --------- -------------
Exchange gains - - 172 - 172
----------------------- ----------- ------------ ------------ --------- -------------
Other income/losses 17 - - 2 19
----------------------- ----------- ------------ ------------ --------- -------------
Loss before Income
Tax (1) - (34) (357) (392)
----------------------- ----------- ------------ ------------ --------- -------------
Assets and liabilities:
Turkey East Africa West Africa UK Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
30 June 2023
----------------------------- ----------- ------------ ------------ --------- -------------
Intangible assets - - 10,591 - 10,591
----------------------------- ----------- ------------ ------------ --------- -------------
Property, plant and
equipment - - 13 7 20
----------------------------- ----------- ------------ ------------ --------- -------------
Cash and other assets 22 812 85 211 1,130
----------------------------- ----------- ------------ ------------ --------- -------------
Liabilities (1) - (70) (155) (226)
----------------------------- ----------- ------------ ------------ --------- -------------
Inter-segment (2,247) - (3,374) 5,621 -
----------------------------- ----------- ------------ ------------ --------- -------------
Net Assets (2,226) 812 7,245 5,684 11,515
----------------------------- ----------- ------------ ------------ --------- -------------
30 June 2022
----------------------------- ----------- ------------ ------------ --------- -------------
Intangible assets - - 10,182 - 10,182
----------------------------- ----------- ------------ ------------ --------- -------------
Property, plant and
equipment - - 29 9 38
----------------------------- ----------- ------------ ------------ --------- -------------
Equity-accounted associates - 1,449 - - 1,449
----------------------------- ----------- ------------ ------------ --------- -------------
Cash and other assets 24 836 219 254 1,333
----------------------------- ----------- ------------ ------------ --------- -------------
Liabilities (2) - (58) (271) (331)
----------------------------- ----------- ------------ ------------ --------- -------------
Inter-segment (2,951) - (2,298) 5,249 -
----------------------------- ----------- ------------ ------------ --------- -------------
Net Assets (2,929) 2,285 8,074 5,241 12,671
----------------------------- ----------- ------------ ------------ --------- -------------
Cash and other assets include cash and cash equivalents
amounting to GBP190k at 30 June 2023 (2022: GBP432k).
4. Intangible assets
2023 2022
GBP'000 GBP'000
=================== ======== ========
At 1 January 10,559 9,376
-------------------- -------- --------
Exchange movements (190) 145
-------------------- -------- --------
Additions 222 661
At 30 June 10,591 10,182
-------------------- -------- --------
5. Investments in equity-accounted associates
2023 2022
GBP'000 GBP'000
=============================== ======== ========
At 1 January - 1,449
================================ ======== ========
Share of losses and impairment
provision - -
=============================== ======== ========
At 30 June - 1,449
-------------------------------- -------- --------
Oriole's shareholding interest in Thani Stratex Resources
Limited ('TSR') was written off in the second half of 2022.
6. Other financial assets
2023 2022
GBP'000 GBP'000
=============================== ======== ========
Financial assets at fair value
through other comprehensive
income 395 395
-------------------------------- -------- --------
Receivables at amortised cost 417 441
At 30 June 812 836
-------------------------------- -------- --------
The Group holds an 8.03% investment in Thani Stratex Djibouti
Limited ('TSD'), and an associated loan note payable by TSD, valued
at GBP417,000.
7. Related party transactions
Directors of the Company received total remuneration of GBP147k
for the six months ended 30 June 2023 (six months ended 30 June
2022 - GBP216k).
8. Earnings per share
The calculation of loss per share is based on the following:
2023 2022
---------------------------------- ---------------- --------- ---------------
Loss attributable to equity
holders (GBP'000) (697) (4)
---------------------------------- ---------------- --- ---------------------
Weighted average number of
shares basic 2,775,054,530 1,994,021,336
---------------------------------- ---------------- --- ---------------------
Earnings per share basic (pence) (0.03) (0.00)
---------------------------------- ---------------- --- ---------------------
Weighted average number of
shares diluted 2,775,054,530 1,994,021,336
---------------------------------- ---------------- --- ---------------------
Loss per share diluted (pence) (0.03) (0.00)
---------------------------------- ---------------- --- ---------------------
9. Post balance sheet event
On 1 August 2023, the Company announced that it had completed,
with Lanstead Capital Investors LLP ('Lanstead'), a conditional
subscription for 930,000,000 0.1 pence ordinary shares in the
Company to raise GBP1.767 million, with the proceeds pledged to a
sharing agreement with Lanstead. The sharing agreement provides for
the proceeds of the placing to be released to the Company on a
monthly basis over a period of two years, with each monthly payment
calculated with reference to a benchmark price of 0.2533 pence.
Immediately following completion of the placing, Lanstead held a
26.23% interest in the share capital of the Company.
Competent Persons Statement
The information in this release that relates to Exploration
Results has been compiled by Claire Bay (Executive Director,
Exploration & Business Development). Claire Bay (MGeol, CGeol)
is a Competent Person as defined in the JORC code and takes
responsibility for the release of this information. Claire has
reviewed the information in this announcement and confirms that she
is not aware of any new information or data that materially affects
the information reproduced here.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
**S **
Oriole Resources Plc Tel: +44 (0)23 8065 1649
Tim Livesey / Bob Smeeton / Claire
Bay
BlytheRay (IR/PR Contact) Tel: +44 (0)20 7138 3204
Tim Blythe / Megan Ray
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Samantha Harrison / Ciara Donnelly
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Ewan Leggat / Harry Davies-Ball
Notes to Editors:
Oriole Resources PLC is an AIM-listed gold exploration company,
operating in West Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has a maiden Resource of 305,000 oz
Au in the JORC Inferred category at the Bibemi project and has
identified multi-kilometre gold and lithium anomalism within the
district-scale Central Licence Package project. At the more
advanced Senala gold project in Senegal, Oriole was advised by
IAMGOLD on 26 April 2023 that AGEM Senegal Exploration Suarl
('AGEM') was now a wholly-owned subsidiary of Managem Group. As
previously announced, AGEM has earned an initial 51% beneficial
interest by spending US$4 million and has the option to spend up to
a further US$4 million by 28 February 2024 to earn a further 19%
interest. Reverse Circulation drilling is planned as part of AGEM's
Year 6 programme at Senala. The Company also has several interests
and royalties in companies operating in East Africa and Turkey that
could deliver future cash flow.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BRGDCXDDDGXI
(END) Dow Jones Newswires
September 29, 2023 02:00 ET (06:00 GMT)
Oriole Resources (LSE:ORR)
Historical Stock Chart
From Apr 2024 to May 2024
Oriole Resources (LSE:ORR)
Historical Stock Chart
From May 2023 to May 2024