TIDMZIOC
RNS Number : 0732O
Zanaga Iron Ore Company Ltd
29 September 2023
29 September 2023
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2023
Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM:
ZIOC) is pleased to announce its unaudited interim results for the
six months ended 30 June 2023 and an update on post reporting
period end events to 28 September 2023.
Highlights
Corporate strategy
-- Corporate strategy approved by the ZOIC Board of Directors,
focused on leveraging recent discussions with potential partners in
order to progress the Zanaga Project through positive defined
milestones
-- Key milestone objectives through to the end of Q1 2024 include:
o Feasibility Study update - End 2023
o Hydro power partnership - Q1 2024 (Memorandum of
Understanding)
o Port partnership - Q1 2024 (Memorandum of Understanding)
o Strategic partner initiative - Q1 2024 (Memorandum of
Understanding)
Zanaga Iron Ore Project (the "Project" or the "Zanaga
Project")
-- Partnership launched with Chinese iron ore technical expert
engineering firm ("Chinese EPC Partner") as part of a two stage
optimisation process of the Zanaga 30Mtpa staged development
project.
o Phase 1 - Feasibility Study update (the "FS Update")
-- 2014 Feasibility Study cost estimates to be updated to
current market pricing using Chinese contractor pricing for both
phases of 12Mtpa Stage One ("Stage One"), plus 18Mtpa Stage Two
expansion ("Stage Two") projects.
-- Chinese EPC Partner possesses specific, specialised, design
and construction expertise in slurry pipeline projects as well as
iron ore pellet feed concentrate projects similar to that proposed
at the Zanaga Project.
-- Initial guidance provided by the Chinese EPC Partner is that
potential capital and operating cost savings of more than 20% could
be achieved.
-- The results of this exercise are expected to be received in
Q4 2023.
o Phase 2 - Processing technology application study
-- Chinese EPC Partner possesses a proprietary new processing
technology for iron ore processing, with the potential to provide
further capital and operating cost savings beyond the results of
the FS Update.
-- The application of this processing technology to the iron ore
from the Zanaga Project is planned to undergo technical assessment
as initial results from the FS Update are received in the coming
months.
-- Port infrastructure discussions underway
o Discussions are in progress with a large port infrastructure
development firm, including consideration of:
-- Opportunity for expansion of the existing port of
Pointe-Noire.
-- Potential development solutions for a large bulk mineral port
capable of supporting the Zanaga 30Mtpa staged development
project.
-- Early Production Project ("EPP Project" or "EPP")
o Multiple production scenarios remain under investigation on
processing facilities and suitable logistics solutions, with a
particular focus on an export solution through the Republic of
Congo ("RoC").
Funding
-- Shard Merchant Capital Ltd ("SMC") equity subscription agreements ("Shard ESAs").
o Original SMC equity subscription agreement (ESA) fully
completed ("2020 ESA").
-- In 2022 SMC subscribed for 7 million shares of no par value
in ZIOC, as part of the final tranche of the 21 million ordinary
share facility signed in 2020.
-- Total proceeds of GBP1,318,126.12 were received from the
facility, following the placement of the final 7,000,000 tranche
shares by SMC in 2022.
o New ESA signed with SMC on 1 July 2023 ("2023 ESA").
-- Following the successful completion of the 2020 ESA, ZIOC has
entered into the 2023 ESA with SMC.
-- Under the terms of the 2023 ESA the Company will issue and
SMC will subscribe for up to 36 million ordinary shares of no par
value in the Company ("Subscription Shares") in up to three
tranches of up to 12 million shares each.
-- Pursuant to the 2023 ESA, SMC has undertaken to use its
reasonable endeavors' to place the relevant Subscription Shares
that it has subscribed for and to pay to ZIOC 95% of the gross
proceeds of any such sales.
o Proceeds of the Shard ESAs applied to general working capital,
including the provision of further contributions to the Zanaga
Project's operations.
-- Cash balance of US$0.6m as at 30 June 2023 and cash balance of US$0.5m as at 31 August 2023.
o Current available cash on hand is expected to cover ZIOC's
corporate overheads until end Q1 2024 assuming an extension of the
term of the current facility from Glencore which is currently due
to be repaid on 31 December 2023, with current SMC facility
placement expected to extend ZIOC working capital into Q3 2024
following that extension.
-- Annual General Meeting to be held in November 2023, with the
requisite notice to be sent to shareholders in due course.
Clifford Elphick, Non-Executive Chairman of ZIOC, commented:
"During the first half of 2023, ZIOC launched a process with its
Chinese EPC Partner to secure Chinese contractor pricing and to
update the cost estimates of the 30Mtpa Feasibility Study, while
also considering the application of new iron ore processing
technology to reduce estimated costs further. This is a completely
different exercise to the study work conducted by consulting firms
in the past, as the Chinese EPC Partner is a constructor and
developer of iron ore mining projects, with specific expertise in
slurry pipelines and pellet feed concentrate processing. We look
forward to concluding the process by year end.
Furthermore, port infrastructure discussions are underway with a
large port infrastructure development firm seeking to expand the
existing port of Pointe-Noire. Consideration is also being given to
potential development solutions for a large bulk mineral port
capable of supporting the 30Mtpa staged development project.
Following the acquisition of full ownership and control of the
Zanaga Project we are now engaging with strategic entities
interested in participating in the Zanaga Project, and intend on
securing a selected partner by the end of Q1 2024".
Copies of the unaudited interim results for the six months ended
30 June 2022 are available on the Company's website at
www.zanagairon.com
The Zanaga Iron Ore Company Limited LEI number is
21380085XNXEX6NL6L23.
For further information, please contact:
Zanaga Iron Ore
Corporate Development and Andrew Trahar
Investor Relations Manager +44 20 7399 1105
Liberum Capital Limited
Nominated Adviser, Financial Scott Mathieson, Kane Collings
Adviser and Corporate Broker +44 20 3100 2000
About us:
Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM
ticker: ZIOC) is the owner of the Zanaga Iron Ore Project based in
the Republic of Congo (Congo Brazzaville) through its subsidiary
Jumelles Limited. The Zanaga Iron Ore Project is one of the largest
iron ore deposits in Africa and has the potential to become a
world-class iron ore producer.
Business Review - Operations
Chinese EPC contractor engagement
ZIOC has entered into an engagement with a Chinese EPC partner
with substantial experience in the design, engineering and
construction management of large iron ore projects. The Chinese EPC
contractor possesses specific, specialised, design and construction
expertise in slurry pipeline projects as well as iron ore pellet
feed concentrate projects similar to the Zanaga Project.
The process involves a two stage project optimisation work
programme.
The initial FS Update will involve updating the 2014 Feasibility
Study cost estimates to current market pricing using Chinese
contractor pricing for both phases of the 30Mtpa staged development
project, including both 12Mtpa Stage One, plus 18Mtpa Stage Two
expansion.
The Chinese EPC has initially guided that cost savings of more
than 20% could be available through the utilisation of Chinese
construction contractor firms capable of building the Zanaga
Project utilising lower cost construction solutions than
traditional Western EPC firms would typically be able to
provide.
The results of this exercise are expected to be received in Q4
2023.
The second phase of work will involve investigating the
potential to apply proprietary iron ore processing technology that
the Chinese EPC Partner possesses, with the potential to provide
further capital and operating cost savings beyond the results of
the FS Update.
The application of this processing technology to the iron ore
from the Zanaga Project is planned to undergo technical assessment
as initial results from the FS Update are received in the coming
months.
Port infrastructure discussions underway
Discussions are in progress with a large port infrastructure
development firm to investigate opportunities to align the Zanaga
Project with their planned port infrastructure facilities in
Pointe-Noire. Consideration is being given to both of the following
port infrastructure initiatives:
-- Opportunity for expansion of the existing port of
Pointe-Noire, potentially enabling a larger solution for the EPP
Project.
-- Potential development solutions for a large bulk mineral port
terminal capable of supporting the Zanaga 30Mtpa staged development
project.
Corporate Strategy approved
The ZIOC Board of Directors and management have determined
specific milestones and objectives until the end of Q1 2024. This
strategy intends to leverage recent discussions with potential
partners in order to progress the Zanaga Project through specific
work programs to derisk the project and enable the financing and
ultimately the construction of the project in due course. These
items are outlined below:
-- Feasibility Study update - End 2023 (See section below for further information)
-- Hydro power partnership - Q1 2024 (Memorandum of Understanding)
o The Zanaga project team have been working with a number of
hydro power infrastructure development partners and construction
companies to evaluate potential sites for hydro-power projects
capable to providing power to the 30Mtpa Project as well as the
EPP. A number of these firms have expressed an interest in
developing such power solutions, and a memorandum of understanding
for the evaluation of potential hydro power solutions with a
selected power partner for the Zanaga Project is targeted for Q1
2024.
-- Port partnership - Q1 2024 (Memorandum of Understanding)
o Port infrastructure discussions are underway with a large port
infrastructure development firm seeking to expand the existing port
of Pointe-Noire. Consideration is also being given to potential
development solutions for a large bulk mineral port capable of
supporting the 30Mtpa staged development project.
o A memorandum of understanding with a large port infrastructure
development firm for the port infrastructure is targeted for Q1
2024.
-- Strategic partner initiative - Q1 2024 (Memorandum of Understanding)
o Following the completion of the acquisition of Glencore's
shareholding in the Zanaga Project, ZIOC Early stage strategic
partner discussions are underway and a memorandum of understanding
with a selected partner is targeted for Q1 2024.
Iron Ore Market
The iron ore market has been relatively stable in recent months,
providing a positive backdrop for sustained pricing at these
levels. China continues to consume significant quantities of iron
ore to feed its substantial steel industry. Furthermore, given the
current geopolitical environment, we believe that increased
resource independence will provide impetus to strategic investors
in China and outside of China to secure access to globally
significant assets, especially outside Australia and Brazil - for
Chinese investors. The Zanaga Project therefore has the potential
to deliver substantial iron ore production to strategic customers
looking to secure positions in the commodity.
Subscription Agreement with Shard Merchant Capital Ltd
The Company has been pleased with the success of the 2020 ESA
with SMC which has provided the Company with access to funding
through a relatively low cost structure that minimised dilution to
shareholders.
The proceeds received by the Company from SMC pursuant to the
Subscription Agreement have been applied to general working
capital, including the provision of further contributions to the
Zanaga Project's operations.
As a result, the Company has entered into a new 2023 ESA with
SMC on 1 July 2023, post period end. An overview of the two ESAs is
provided below:
1) 2020 ESA
a. As previously announced, on 26 June 2020 ZIOC announced that
the Company had entered into a Subscription Agreement with SMC, a
financial services provider.
b. Under the Subscription Agreement, and over the course of 2020
to 2022, the Company issued and SMC subscribed for 21 million
ordinary shares of no par value in the Company ("Subscription
Shares") in three tranches of 7 million shares each (First tranche
in 2020 and the subsequent tranches in 2021 and 2022).
c. During 2022, the final 7,000,000 ordinary shares in the
Company were placed by SMC. As a result of such transactions, as at
28 June 2023, all of the 21,000,000 ordinary shares in the Company
had been placed and the Company had received the aggregate net sum
of GBP1,318,126.12.
2) 2023 ESA
a. As announced by the Company, on 1 July 2023 the Company
entered into a new Subscription Agreement (the 2023 ESA) with
SMC.
b. Under the Subscription Agreement, the Company will issue and
SMC will subscribe for 36 million ordinary shares of no par value
in the Company ("Subscription Shares") in three tranches of 12
million shares each (the First tranche was issued immediately on 1
July 2023).
Cash Reserves and Project Funding
As at 29 June 2023, ZIOC has outlined a 2023 Project Work
Programme and Budget as outlined below.
At 30 June 2023 the Company had cash reserves of US$0.6m The
Company had cash reserves of US$0.5m as at 31st August 2023.
In order to raise additional funding the Company entered a
Subscription Agreement with SMC (as described above). The financing
structure with SMC enables the Company to access funding for the
costs that the Company is expected to meet in the near future. For
illustrative purposes only, if the average price at which SMC
places the 36,000,000 shares was 4.67 pence (being ZIOC's 90 day
value weighted average share price as at 28 September 2023), the
net proceeds received by ZIOC from such sales would be
approximately GBP1.60m. Based on the current cost base at the
Zanaga Project, the direct loan facility to Jumelles Ltd, the
current low corporate overheads of ZIOC, the agreed cash
preservation plan adopted by the Company (described below), the
Company's existing cash reserves and (on the basis of cautious
assumptions made by the Company in its funding model) the funds
expected to be obtained from the funding facility established by
the Subscription Agreement with SMC, the board of directors of ZIOC
(the "Board") believes that the Company will be adequately
positioned to support its operations going forward in the near
future. As the final cash amounts to be received for each tranche
of issued shares, and the timing of this receipt, are dependent on
SMC successfully selling the shares prior to transferring funds to
the Company, the Board is of the view that the going concern basis
of accounting is appropriate. However, the Board acknowledges that
there is a material uncertainty which could give rise to
significant doubt over the Company's ability to continue as a going
concern and, therefore, that the Company may be unable to realise
its assets and discharge its liabilities in the normal course of
business. Nevertheless, based on and taking into account the
foregoing factors, the Board are satisfied the Company will have
sufficient funds to meet its own working capital requirements up
to, and beyond, twelve months from the approval of these
accounts.
The Company continues to review the costs of its operational
activities with a view to conserving its cash resources. As part of
such review, and in order to preserve the cash position of the
Company, it has been agreed with the Directors (since January 2019)
and Management (since September 2019) that fees previously deferred
would be reviewed. As of today, discussions with management
continue and a resolution is expected to be reached imminently
through the issue of shares in consideration of part of this
deferred consideration.
Financial review
Results from operations
The financial statements contain the results for ZIOC for the
first half of 2023. ZIOC made a loss in the half-year of US$0.4m
compared to a gain of US$8.1m in the full year ended December 2022.
The loss for the 2023 half-year period comprised:
1 January to 1 January to 1 January to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
US$000 US$000 US$000
-------------------------------------------------------------------------- -------------- ------------ ------------
General expenses (350) (160) (516)
Net foreign exchange (loss)/gain - (32) -
Share of loss of associate - (334) (436)
Gain on revaluation of investment - - 9,050
------------
(Loss)/Gain before tax (350) (526) 8,098
Reclassification of share of other comprehensive (loss) / income of
associate - - (3,447)
Share of other comprehensive income of associate - foreign exchange - 37 61
-------------------------------------------------------------------------- -------------- ------------ ------------
Total Comprehensive income (350) (489) 4,712
-------------------------------------------------------------------------- -------------- ------------ ------------
General expenses of US$0.4m (2022: US$0.2m), consisting of:
Directors' fees of US$Nil (2022: US$Nil), professional fees of
US$Nil (2022: US$Nil), LTIP charge of US$Nil (2022 US$0.1m) and
US$0.4m (2022: US$0.1m) of other general operating expenses.
Financial position
ZIOC's net asset value ("NAV") of US$84.9m is comprised of a
US$85.3m exploration and evaluation assets, US$0.7m of PPE, US$0.6m
of cash balances and US$1,8m net current liabilities.
30 June 2023 30 June 2022 31 December 2022
Unaudited Unaudited Audited
US$ m US$ m US$m
--------------------------------------- ------------ ------------ ----------------
Investment in associate - 37.1 -
Exploration and Evaluation 85.3 - 85.3
PPE 0.7 - 0.7
Cash 0.6 0.3 0.3
Other net current assets/(liabilities) (1.7) 0.1 (1.1)
--------------------------------------- ------------ ------------ ----------------
Net assets 84.9 37.5 85.2
--------------------------------------- ------------ ------------ ----------------
Cash flow
Cash balances have increased by US$0.3m since 31 December 2022.
Operating activities were US$0.5m and the Glencore loan increased
by US$0.8m.
30 June 2023 30 June 2022 31 December 2022
Unaudited Unaudited Audited
US$000 US$000 US$000
------------------------------ ------------ ------------ ----------------
GBP Balances 0.1 0.2 0.2
USD value of GBP balances 0.2 0.3 0.2
USD value of other currencies 0.3 - 0.1
USD balances 0 .1 - -
------------------------------ ------------ ------------ ----------------
Cash Total 0.6 0.3 0.3
------------------------------ ------------ ------------ ----------------
Consolidated Statement of Comprehensive Income for the six
months ended 30 June 202 3
1 January 1 January 1 January
to to to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note US$000 US$000 US$000
Gain on revaluation of investment - - 9,050
Administrative expenses (350) (192) (516)
Share of (loss)/profit associate - (334) (436)
------------------------------------------------- ---- ---------- ---------- ------------
Operating loss (350) (526) 8,098
(Loss) before tax (350) (526) 8,098
Taxation 5 - -
------------------------------------------------- ---- ---------- ---------- ------------
(Loss) for the period (350) (526) -
Reclassification of share 0f other comprehensive
income / (loss of associate) -` - (3,447)
Share of other comprehensive (loss)/income
of associate - foreign exchange translation - 37 61
------------------------------------------------- ---- ---------- ---------- ------------
Other comprehensive (loss)/gain - 37 (3,386)
------------------------------------------------- ---- ---------- ---------- ------------
Total comprehensive (loss)/gain (350) (489) 4,712
------------------------------------------------- ---- ---------- ---------- ------------
(Loss)/Earnings per share (Cents)
Basic 7 (0.1) (0.2) 0.3
Diluted 7 (0.1) (0-2) 0.3
All other comprehensive income may be classified as profit and
loss in the future.
Consolidated Statement of changes in equity
for the six months ended 30 June 2023
Foreign
currency
Share Retained translation Total
capital earnings reserve Equity
US$000 US$000 US$000 US$000
-------------------------------------------------------- ------- ---------- ----------- -------
Balance at 1 January 2022 270,935 (236,516) 3,317 37,736
-------------------------------------------------------- ------- ---------- ----------- -------
Consideration for share-based payments - other services 82 - - 82
Issued Capital - - - -
Loss for the period - (525) - (525)
Other comprehensive (loss)/ income - - 37 37
-------------------------------------------------------- ------- ---------- ----------- -------
Total comprehensive (loss)/income - (525) 37 (406)
-------------------------------------------------------- ------- ---------- ----------- -------
Balance at 30 June 2022 271,017 (237,041) 3,354 37,730
-------------------------------------------------------- ------- ---------- ----------- -------
Consideration for share-based payments - other services 81 - - 81
Issued Capital 42,591 - - 42,591
P rofit for the period - 8,623 - 8,098
Other comprehensive (loss)/income - - (3,423) (3,423)
-------------------------------------------------------- ------- ---------- ----------- -------
Total comprehensive (loss)/income 8,623 (3,423) 5,200
-------------------------------------------------------- ------- ---------- ----------- -------
Balance at 31 December 2022 313,689 (228,418) (69) 85,202
-------------------------------------------------------- ------- ---------- ----------- -------
Consideration for share-based payments - other services - - - -
Issue of shares - - - -
Loss for the period - (350) - (350)
Other comprehensive (loss)/income - - - -
-------------------------------------------------------- ------- ---------- ----------- -------
Total comprehensive loss - (350) - (350)
-------------------------------------------------------- ------- ---------- ----------- -------
Balance at 30 June 2023 313,689 (228,768) (69) 84,852
-------------------------------------------------------- ------- ---------- ----------- -------
Consolidated Balance sheet
as at 30 June 2023
30 June 31 December
30 June 2022 2022
2023 Unaudited Unaudited Audited
Note US$000 US$000 US$000
----------------------------------------- ---- --------------- ---------- -----------
Non-current asset
Exploration and evaluation assets 85,300 - 85,300
Property, plant and equipment 696 - 703
Investment in associate 6 - 37,067 -
----------------------------------------- ---- --------------- ---------- -----------
85,996 37,067 86,003
----------------------------------------- ---- --------------- ---------- -----------
Current assets
Other receivables 44 157 113
Cash and cash equivalents 573 250 310
----------------------------------------- ---- --------------- ---------- -----------
617 407 423
----------------------------------------- ---- --------------- ---------- -----------
Total Assets 86,613 37,473 86,426
----------------------------------------- ---- --------------- ---------- -----------
Non -current liabilities
Lease liability 105 - 104
Current liabilities
Loans and borrowings 1,185 - 385
Trade and other payables 465 (144) 724
----------------------------------------- ---- --------------- ---------- -----------
Lease liability 5 11
----------------------------------------- ---- --------------- ---------- -----------
Net assets 84,853 37,330 85,202
----------------------------------------- ---- --------------- ---------- -----------
Equity attributable to equity holders of
the parent
Share capital 313,689 271,017 313,689
Retained earnings (228,767) (237,041) (228,418)
Foreign currency translation reserve (69) 3,354 (69)
----------------------------------------- ---- --------------- ---------- -----------
Total equity 84,853 37,330 85,202
----------------------------------------- ---- --------------- ---------- -----------
These financial statements were approved by the Board of
Directors on 30 September 2023.
Consolidated Cash flow statement
for the six months ended 30 June 2022
1 January 1 January 1 January
to to To
30 June 30 June 31 Dec
2022 2021 2021
Unaudited Unaudited Audited
US$000 US$000 US$000
------------------------------------------------- ---------- ---------- ---------
Cash flows from operating activities
Profit/(Loss) for the year (350) (526) 8,098
Adjustments for:
Share based payments - 82 163
Gain on revaluation of investment in associate - - (9,050)
Decrease in other receivables 69 76 130
Increase in trade and other payables 536 (9) 126
Net exchange (profit)/loss - 32 -
Share of Total Comprehensive income of associate - 334 436
Net cash from operating activities 255 (11) (97)
Cash flows from financing activities
Issue of shares - - -
Net cash from financing activities - - -
------------------------------------------------- ---------- ---------- ---------
Cash flows from investing activities
Interest received - - -
Acquisition of property, plant and equipment - -
Investment in associate - (95) (95)
Net cash from investing activities - (95) (95)
Net i ncrease in cash and cash equivalents 255 (106) (192)
Cash and cash equivalents at beginning of period 310 387 387
Acquired as acquisition of assets - - 115
-------------------------------------------------- ---------- ---------- ---------
Effect of exchange rate difference 8 (31) -
-------------------------------------------------- ---------- ---------- ---------
Cash and cash equivalents at end of period 573 250 310
-------------------------------------------------- ---------- ---------- ---------
Notes to the financial statements
1. Business information and going concern basis of
preparation
As at 29 June 2023, ZIOC has outlined a 2023 Project Work
Programme and Budget as outlined below.
At 30 June 2023 the Company had cash reserves of US$0.6m The
Company had cash reserves of US$0.5m as at 31st August 2023.
In order to raise additional funding the Company entered a
Subscription Agreement with SMC (as described above). The financing
structure with SMC enables the Company to access funding for the
costs that the Company is expected to meet in the near future. For
illustrative purposes only, if the average price at which SMC
places the 36,000,000 shares was 4.67 pence (being ZIOC's 90 day
value weighted average share price as at 28 September 2023), the
net proceeds received by ZIOC from such sales would be
approximately GBP1.60m. Based on the current cost base at the
Zanaga Project, the direct loan facility to Jumelles Ltd, the
current low corporate overheads of ZIOC, the agreed cash
preservation plan adopted by the Company (described below), the
Company's existing cash reserves and (on the basis of cautious
assumptions made by the Company in its funding model) the funds
expected to be obtained from the funding facility established by
the Subscription Agreement with SMC, the board of directors of ZIOC
(the "Board") believes that the Company will be adequately
positioned to support its operations going forward in the near
future. As the final cash amounts to be received for each tranche
of issued shares, and the timing of this receipt, are dependent on
SMC successfully selling the shares prior to transferring funds to
the Company, the Board is of the view that the going concern basis
of accounting is appropriate. However, the Board acknowledges that
there is a material uncertainty which could give rise to
significant doubt over the Company's ability to continue as a going
concern and, therefore, that the Company may be unable to realise
its assets and discharge its liabilities in the normal course of
business. Nevertheless, based on and taking into account the
foregoing factors, the Board are satisfied the Company will have
sufficient funds to meet its own working capital requirements up
to, and beyond, twelve months from the approval of these
accounts.
The Company continues to review the costs of its operational
activities with a view to conserving its cash resources. As part of
such review, and in order to preserve the cash position of the
Company, it has been agreed with the Directors (since January 2019)
and Management (since September 2019) that fees previously deferred
would be reviewed. As of today, discussions with management
continue and a resolution is expected to be reached imminently
through the issue of shares in consideration of part of this
deferred consideration.
2. Accounting policies
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all the periods presented, unless
otherwise stated.
3. Basis of preparation
The condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU.
In accordance with the AIM Rules for Companies, the condensed
set of financial statements has been prepared in applying the
accounting policies and presentation that were applied in the
preparation of the Company's published consolidated financial
statements for the year ended 31 December 2021. The comparative
figures for the financial year ended 31 December 2021 are not the
Company's statutory accounts for that financial year. The 2021
accounts have been reported on by the Company's auditors. The
report of the auditors was (i) unqualified and (ii) did not include
a reference to any matter to which the auditors drew attention by
way of emphasis without qualifying their report.
Up until 30 April 2014, the Company accounted for 100% of the
Jumelles group Comprehensive Income. From May 2014, as a result of
completion of the Feasibility Study (note 1 above) and thus
consideration to complete the Call Option, the Company has
accounted for 50% less one share shareholding portion of that
Comprehensive Income.
4. Segmental reporting
The Company has one operating segment, being its investment in
the Zanaga Project, held through Jumelles. Financial information
regarding this segment is provided in note 6.
5. Taxation
The Company is exempt from most forms of taxation in the British
Virgin Islands ("BVI"), provided the Company does not trade in the
BVI and does not have any employees working in the BVI. All
dividends, interest, rents, royalties and other expense amounts
paid by the Company, and capital gains realised with respect to any
shares, debt obligations or other securities of the Company, are
exempt from taxation in the BVI.
The effective tax rate for the Group is 0.00% (December 2022:
0.00%).
6. Investment in associate
US$000
---------------------------------------------------------- --------
Balance at 1 January 2022 37,269
Additions 95
Share of comprehensive loss (297)
---------------------------------------------------------- --------
Balance at 30 June 2022 37,067
---------------------------------------------------------- --------
Share of comprehensive loss (139)
Share of currency translation reserve 61
Disposal - on account of acquisition of controlling stake (36,998)
Balance at 31 December 2022 -
---------------------------------------------------------- --------
On 16 December 2022, the Company acquired the remaining stake in
Jumelles from Glencore, thereby gaining control, with 100% stake in
Jumelles. The consideration for this acquisition was made by
issuing ordinary shares of the Company.
30 June 30 June
2023 2022 31 December 2022
Unaudited Unaudited Audited
7. Loss per share US$000 US$000 US$000
----------------------------------------------------------- ---------- ---------- ----------------
Profit/(Loss) (Basic and diluted) (US$000) (350) (526) 8,098
Weighted average number of shares (thousands)
Basic and diluted
Issued shares at beginning of period 593,374 307,034 307,034
Shares issued during the year - - 286,340
Weighted average of new shares issued - - 11,767
Weighted average number of shares at end of period - basic 593,374 307,034 318,801
----------------------------------------------------------- ---------- ---------- ----------------
(Loss)/Earnings per share (Cents)
Basic (0.1) (0.2) 0.3
Diluted (0.1) (0.2) 0.3
----------------------------------------------------------- ---------- ---------- ----------------
8. Related parties
The following transactions occurred with related parties during
the period:
Transactions for the period Closing balance
---------- ----------------------------- ----------- -----------------------
30 June 30 June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
Unaudited Unaudited Audited Unaudited Unaudited Audited
US$000 US$000 US$000 US$000 US$000 US$000
----------------------------------- ---------- ------------- -------------- ----------- ---------- -----------
Funding:
Loan from Glencore to Jumelles Ltd
* 800 - 385 1,185 - 385
----------------------------------- ---------- ------------- -------------- ----------- ---------- -----------
* Repayable on 31 December 2023
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IR NKFBBOBKDKCB
(END) Dow Jones Newswires
September 29, 2023 02:00 ET (06:00 GMT)
Zanaga Iron Ore (LSE:ZIOC)
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