TIDMKRS
RNS Number : 1207W
Keras Resources PLC
20 December 2021
20 December 2021
Keras Resources plc ('Keras' or the 'Company')
Interim Results
Keras Resources plc (AIM: KRS) today announces its interim
results for the six months ended 30 September 2021.
Highlights
Utah - Diamond Creek Phosphate Mine ("Diamond Creek") - one of
the highest grade organic phosphate mines in the US, a fully
integrated mine to market asset
-- Diamond Creek milling plant successfully commissioned in June
2021 producing a range of premium organic phosphate products
-- Post commissioning, commercial production commenced at the end of June 2021
-- The 2021 mining season was conducted smoothly throughout July
to October - stockpiles of 3,000 tons of product are available for
on demand sales and a further 5,200 tons of run-of-mine (ROM) ore
is available for further processing
-- Operations at Diamond Creek are currently on hold as
announced on 5 November 2021 but marketing of inventory from that
facility continues and sales orders are being shipped to
customers
-- An 800 tonne (16% of annual target) of #10 mesh rock
phosphate order, toll processed by a third party is currently being
delivered to a key customer
-- Management recently visited the US and discussions to resolve the funding gap are ongoing.
Togo - Nay éga Manganese Project, production ready on receipt of
the exploitation permit
-- Mr Blaise Gozan appointed as Country Manager in May 2021 to
bolster Keras's in-country presence
-- Ongoing engagement with the Togolese authorities
Corporate
-- Mr Graham Stacey, Keras' Chief Operating Officer appointed to
the Board as Executive Director
-- Keras Directors purchased further shares in the company post
period, increasing management's combined holdings to 23.3%
-- Market fundamentals remain strong
Russell Lamming, Keras Resources CEO commented, "We have had our
challenges over the past few months as detailed in recent updates
but we remain fully committed to Keras and the business going
forward. As recently announced, we as a Board of Directors have
invested further in the Company so are very much aligned with our
shareholder base and are focused on unlocking and realising the
value that we see within our assets.
"It has been a challenge that, despite meeting all of our
funding obligations, we have thus far not been able to amicably
resolve our partner's funding shortfall and that operations at the
Spanish Fork processing facility have had to be put on hold as a
result. However, we are working diligently to resolve this issue,
marketing efforts are ongoing and the Diamond Creek high grade
material is still being sold into the North American organic
phosphate market. In Togo, we continue to pursue our discussions
with the Government , and we will provide further updates on the
progress of the Exploitation Permit approval process when we have
those details."
The information contained within this Announcement is deemed by
the Company to constitute inside information as stipulated under
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as
amended) as it forms part of the domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018 (as amended).
Upon the publication of this Announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
For further information please visit www.kerasplc.com , follow
us on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc annabel @kerasplc.com
Annabel Redford
Nominated Adviser & Joint SP Angel Corporate Finance
Broker LLP
Ewan Leggat / Charlie Bouverat +44 (0) 20 3470 0470
Joint Broker Shard Capital Partners
Damon Heath / Erik Woolgar LLP +44 (0) 207 186 9900
CHAIRMAN'S REVIEW
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
I am pleased to report on our activities over the past six
months. As previously announced, the financial period for Keras has
been extended to 15 months and will end on 31 December 2021,
enabling the accounts of Keras and all its subsidiaries to
terminate on the same date.
Diamond Creek Phosphate Mine (Diamond Creek) - Utah, US
Despite the headwinds we have faced since our last Interims
report, the Diamond Creek project, subject to a funding resolution,
is well placed to deliver into the robust North American fertiliser
market. The mining season, conducted from the end of July through
to October, went according to plan and there are now sufficient
stockpiles of quality material available to market through to the
end of this year's campaign and through the first half of next
year. Whilst processing at Spanish Fork is on hold, we are
continuing to market the 3,000 tons of product in inventory and are
selling on demand, and we also have an additional 5,200 tons of
run-of mine ore ready to be processed.
Building the mine, constructing and commissioning the milling
plant and completing the second annual mining campaign within a
year of investing in the project was a key achievement for the
Company. As we have previously noted, a further core component of
our organic fertilizer business is the construction of the
granulating plant which will offer additional value to our product
mix. This was expected to be commissioned in the last quarter of
2021, although this is now on hold until the funding gap is
resolved. Once the funds flow again though, this will be
implemented in short order as all the plant components are on
site.
Discussions on a funding solution by our partner are underway as
we look to find a way to move forward as quickly as possible for
the benefit of all stakeholders. As a part of this process, we are
looking at possible restructuring options to enable us to steer our
51% owned subsidiary company, Falcon Isle, the owner of Diamond
Creek, in a direction we believe will increase sales and associated
revenues. We will keep shareholders updated on our progress in
resolving this issue and look forward to reporting positive
progress in the near future.
Nay é ga Manganese Project - Togo
Management has also continued to engage with the Togolese
Authorities on the final permitting for the Nay é ga manganese
project in Togo. Blaise Gozan, our Country Manager, is continuing
to progress direct communications and discussions with Government
on our behalf. As reported previously, securing the final permit
continues to take time, but we remain confident in the process and
will provide updates as soon as we have additional information to
share.
Sustainability
We are aware of our responsibility as an employer and a mining
company, and we are committed to upholding best practice across our
business. We care about all our stakeholders and are focused on
looking to create value and benefits for all whilst seeking to
manage and mitigate the potential impacts that our operations may
have. Our assets are diverse in commodity and location but have
important similarities - mining essential resources that can
contribute to a more sustainable future, running simple operations
with minimal processing requirements and looking to maintain a low
carbon footprint. We are focused on meeting our commitments across
the ESG space and will continue to be proactive in this area as we
look to develop and sustain a positive legacy.
Financial Review
The results for the 6 months ended 30 September 2021 show a loss
of GBP345,000, a substantial reduction from the 6 months ended 31
March 2021 (loss: GBP560,000) and from the year ended 30 September
2020 (loss: GBP1,252,000). The reduction is primarily due to
improved performance at Falcon Isle. This bodes well for future
periods when Falcon Isle is able to operate at full capacity.
As noted above, the current financial period for Keras has been
extended to 15 months and will end on 31 December 2021, enabling
the accounts of all subsidiaries to terminate on the same date.
We were very pleased to appoint Graham Stacey, our Chief
Operating Officer, as Executive Director in November, his in-depth
knowledge of our assets and technical expertise being invaluable to
our business. He has also shown his alignment with the Company in
taking shares in lieu of past fees and we are delighted to have him
as a core member of our team.
Looking Forward
We remain fully committed to our business and our projects in
both Utah and Togo. The fundamentals of the phosphate and
fertilizer markets in the US and globally continue to be strong
from both a supply and demand perspective. The Diamond Creek mine
produces high quality organic rock phosphate that can be simply
mined, crushed and applied to enhance yields and enrich the soil in
an environmentally friendly way. Awareness of the sustainable
practices adopted in organic farming also continues to grow which
is driving growth in this market and further underpins the inherent
value of our asset.
The manganese market also remains strong looking forward, for
steel alloys but also importantly from the battery metals sector, a
smaller but vital segment, and we continue to look to capitalise on
these dynamics from the Nayega project in the future.
Finally, I would like to welcome Graham Stacey to the Board, to
take this opportunity to thank the rest of the Board and management
for their ongoing hard work and shareholders for their continuing
support.
Brian Moritz
Chairman
17 December 2021
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
Six months Six months
ended ended Year ended
30-Sep-21 31-Mar-21 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 311 31 -
Cost of
production (229) (74) -
Gross
profit/(loss) 82 (43) -
Administrative and exploration
expenses (426) (446) (1,235)
Loss from operating activities (344) (489) (1,235)
Finance income - - -
Finance
costs (1) - (3)
Net finance costs (1) - (3)
Share of net loss of associate
accounted for using the
equity method - (71) (4)
Loss before taxation (345) (560) (1,242)
Taxation - - -
------------- ------------- -------------
Loss for the period (345) (560) (1,242)
------------- ------------- -------------
Other comprehensive income - items that
may be subsequently reclassified to profit
or loss
Exchange translation on foreign operations 108 (47) (15)
Change in fair value of available for - - -
sale financial assets
Items that will not be reclassified to
profit or loss
Change in fair value of equity investments
at fair value through other comprehensive - - -
income
------------- ------------- -------------
Total comprehensive (loss) for
the period (237) (607) (1,257)
============= ============= =============
(Loss)/profit attributable
to:
Owners of the Company (382) (497) (1,181)
Non-controlling interests 37 (63) (61)
------------- ------------- -------------
(Loss)/profit for the period (345) (560) (1,242)
============= ============= =============
Total comprehensive income/(loss)
attributable to:
Owners of the Company (268) (556) (1,194)
Non-controlling interests 31 (51) (63)
------------- ------------- -------------
Total comprehensive loss
for the period (237) (607) (1,257)
============= ============= =============
Earnings per share - continuing operations
Basic and diluted (loss)/earnings
per share (pence) (0.006) (0.017) (0.040)
============= ============= =============
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
30-Sep-21 31-Mar-21 30-Sep-20
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 7 4,282 3,637 1,069
Property, plant and equipment 8 691 493 263
Investments accounted for
using the equity method 9 - - 1,622
4,973 4,130 2,954
------------- ------------- -----------
Current assets
Inventory 10 245 135 -
Other investments 11 - - -
Trade and other receivables 12 243 391 83
Cash and cash equivalents 299 886 438
------------- ------------- -----------
787 1,412 521
------------- ------------- -----------
Total assets 5,760 5,542 3,475
============= ============= ===========
Equity
Equity attributable to owners of
the Company
Share capital 13 629 629 487
Share premium 13 4,027 4,027 2,637
Other reserves 95 68 16
Retained deficit (878) (590) 8
------------- ------------- -----------
3,873 4,134 3,148
Non-controlling interests 965 934 (140)
------------- ------------- -----------
Total equity 4,838 5,068 3,008
------------- ------------- -----------
Liabilities
Current liabilities
Trade and other payables 14 922 474 467
922 474 467
------------- ------------- -----------
Total liabilities 922 474 467
------------- ------------- -----------
Total equity and liabilities 5,760 5,542 3,475
============= ============= ===========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 SEPTEMBER 2020
Total attributable to owners of the Company
Share
option/ Financial Retained Non-controlling
Share Share warrant Exchange assets earnings/ interests Total
capital premium reserve reserve at FVOCI (deficit) Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October 2019
(audited) 7,266 10,938 - (33) 3,459 (10,310) 11,320 (76) 11,244
Loss for the
period - - - - - (753) (753) (56) (809)
Other
comprehensive
income - - - 3 - (6) (3) - (3)
--------- --------- -------- ---------- ----------- ----------- ---------- ----------------- ---------
Total
comprehensive
income - - 3 - (759) (756) (56) (812)
Capital
reduction (7,023) (10,938) - - (3,459) 11,497 (9,923) - (9,923)
Issue of
ordinary
shares 36 429 - - - - 465 - 465
Issue costs - (10) - - - - (10) - (10)
Share based
payment
transactions - - 30 - - - 30 - 30
(6,987) (10,519) 30 - (3,459) 11,497 (9,438) - (9,438)
Balance at 31
March 2020
(unaudited) 279 419 30 (30) - 428 1,126 (132) 994
========= ========= ======== ========== =========== =========== ========== ================= =========
Loss for the
period - - - - - (428) (428) (5) (433)
Other
comprehensive
income - - - (19) - 10 (9) (3) (12)
--------- --------- -------- -------------- ----------- ----------- ---------- ----------------- -----------
Total
comprehensive
income - - - (19) - (418) (437) (8) (445)
Issue of
ordinary
shares 208 2,289 - - - - 2,497 - 2,497
Share based
payment
transactions - - 33 - - - 33 - 33
Issue costs - (71) - - - - (71) (71)
Transfer - - - 2 - (2) - - -
--------- --------- -------- -------------- ----------- ----------- ---------- ----------------- -----------
208 2,218 33 2 - (2) 2,459 - 2,459
Balance at 30
September
2020 (audited) 487 2,637 63 (47) - 8 3,148 (140) 3,008
========= ========= ======== ============== =========== =========== ========== ================= ===========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(CONTINUED)
FOR THE SIX MONTHSED 31 MARCH 2021
Total attributable to owners of the
Company
Share
option/ Financial Non-controlling
Share Share warrant Exchange assets Retained interests Total
capital premium reserve reserve at FVOCI earnings Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October
2020 (unaudited) 487 2,637 63 (47) - 8 3,148 (140) 3,008
Loss for the
period - - - - - (497) (497) (63) (560)
Other
comprehensive
income - - - 42 - (101) (59) 12 (47)
--------- --------- -------- ---------- ----------- ---------- ---------- ----------------- ---------
Total
comprehensive
income for the
period - - - 42 - (598) (556) (51) (607)
Issue of ordinary
shares 142 1,463 - - - - 1,605 - 1,605
Issue costs - (73) - - - - (73) - (73)
Non-controlling
interest
on acquisition
of subsidiary - - - - - - - 1,125 1,125
Share based
payment
transactions - - 10 - - - 10 10
142 1,390 10 - - - 1,542 1,125 2,667
Balance at 31
March
2021 (unaudited) 629 4,027 73 (5) - (590) 4,134 934 5,068
========= ========= ======== ========== =========== ========== ========== ================= =========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(CONTINUED)
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
Total attributable to owners of the
Company
Share
option/ Financial Non-
Share Share warrant Exchange assets Retained controlling Total
capital premium reserve reserve at FVOCI earnings Total interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April 2021
(unaudited) 629 4,027 73 (5) - (590) 4,134 934 5,068
Loss for the period - - - - - (382) (382) 37 (345)
Total other comprehensive
income - - - 20 - 94 114 (6) 108
--------- --------- -------- ---------- ----------- ------- ------ ------- ---------
Total comprehensive
loss for the period - - - 20 - (288) (268) 31 (237)
Issue of ordinary shares - - - - - - - - -
Issue costs - - - - - - - - -
Non-controlling interest
on acquisition of - - - - - - - - -
subsidiary
Share based payment
transactions - - 7 - - - 7 - 7
- - 7 - - - 7 - 7
Balance at 30 September
2021 629 4,027 80 15 - (878) 3,873 965 4,838
(unaudited)
========= ========= ======== ========== =========== ======= ====== ======= =========
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS FOR THE SIX MONTHSED 30 SEPTEMBER
2021
Six months Six months
ended ended Year ended
30-Sep-21 31-Mar-21 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss from operating activities (345) (560) (1,242)
Adjustments for:
Depreciation and amortisation 17 18 76
Share of loss of equity accounted
associate - 71 4
Loss on disposal of property, plant - - -
and equipment
Foreign exchange differences 124 117 (39)
Compensation on cancellation of
SARS scheme - - 120
Equity-settled share-based payment
transactions 7 10 63
----------------------- ------------- -------------
(197) (344) (1,018)
Changes in:
- inventories (110) 7 -
- trade and other receivables 148 (186) 2
- trade and other payables 448 45 278
----------------------- ------------- -------------
Cash used in operating activities 289 (478) (738)
Finance costs - - -
Net cash used in operating
activities 289 (478) (738)
----------------------- ------------- -------------
Cash flows from investing
activities
Acquisition of property, plant and
equipment (209) (93) -
Proceeds from sale of property, - - -
plant and equipment
Exploration and licence expenditure (667) (161) (1)
Investment in associate to date
of control - (455) (938)
Net cash used in investing
activities (876) (709) (939)
----------------------- ------------- -------------
Cash flows from financing
activities
Net proceeds from issue of
share capital - 1,477 1,931
Proceeds from short term - - -
borrowings
Net cash flows from financing
activities - 1,477 1,931
----------------------- ------------- -------------
Net (decrease)/increase in cash
and cash equivalents (587) 290 254
Cash and cash equivalents at
beginning
of period 886 438 184
Cash acquired with - 158 -
subsidiary
Effect of foreign exchange - - -
rate changes
----------------------- ------------- -------------
Cash and cash equivalents at end
of period 299 886 438
======================= ============= =============
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
1. Reporting entity
Keras Resources plc (the "Company") is a company domiciled in
England and Wales. The condensed consolidated interim financial
statements of the Company as at and for the six months ended 30
September 2021 comprise the Company and its subsidiaries (together
referred to as the "Group") and the Group's interests in associates
and jointly controlled entities. The Group currently operates as an
explorer and developer.
2. Basis of preparation
(a) Statement of compliance
This condensed consolidated interim financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting.
Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in financial performance and position of the Group since
the last annual consolidated financial statements as at and for the
year ended 30 September 2020. This condensed consolidated interim
financial report does not include all the information required for
full annual financial statements prepared in accordance with
International Financial Reporting Standards.
This condensed consolidated interim financial report was
approved by the Board of Directors on 17 December 2021.
Change of financial year end
In April 2021 the Company announced that it was changing its
accounting reference date and financial year end from 30 September
to 31 December with immediate effect. This unaudited financial
report therefore covers a second interim period from 1 April 2021
to 30 September 2021 as a part of the 15-month financial year
ending 31 December 2021.
(b) Judgements and estimates
Preparing the interim financial report requires Management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
In preparing this condensed consolidated interim financial
report, significant judgements made by Management in applying the
Group's accounting policies and key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 30 September
2020.
3. Significant accounting policies
The accounting policies applied by the Group in this condensed
consolidated interim financial report are the same as those applied
by the Group in its consolidated financial statements as at and for
the year ended 30 September 2020.
4. Financial instruments
Financial risk management
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 30 September 2020.
5. Segment information
The Group considers that it operates in two distinct business
areas, manganese mining in West Africa and phosphate mining in
Utah, USA. These business areas form the basis of the Group's
operating segments. For each segment, the Group's Managing Director
(the chief operating decision maker) reviews internal management
reports on at least a quarterly basis.
Other operations relate to the group's administrative functions
conducted at its head office and by its intermediate holding
company together with consolidation adjustments.
Information regarding the results of each reportable segment is
included below. Performance is measured based on segment profit
before tax, as included in the internal management reports that are
reviewed by the Group's Managing Director. Segment results are used
to measure performance as Management believes such information is
the most relevant in evaluating the performance of certain segments
relative to other entities that operate within the exploration
industry.
For the six months ended 30 September 2021 (unaudited)
Other
Manganese Phosphate operationsGBP'000 Total
GBP'000 GBP'000
External revenue - 311 - 311
============== ============ =================== ==========
(Loss)/profit before
tax (52) 20 (313) (345)
============== ============ =================== ==========
Segment assets 1,076 4,036 648 5,760
============== ============ =================== ==========
For the six months ended 31 March 2021 (unaudited)
Other
Manganese Phosphate operations Total
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - 31 - 31
============== ============ =================== ==========
(Loss)/profit before
tax (60) (110) (390) (560)
============== ============ =================== ==========
Segment assets 1,082 2,958 1,502 5,542
============== ============ =================== ==========
For the twelve months ended 30 September 2020 (audited)
Other
Manganese Phosphate operations Total
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - - - -
============== ============ =================== ==========
(Loss)/profit before
tax (405) (4) (833) (1,242)
============== ============ =================== ==========
Segment assets 1,011 1,622 842 3,475
============== ============ =================== ==========
Information about geographical segments:
For the six months ended 30 September 2021 (unaudited)
West US Other Total
Africa operationsGBP'000
GBP'000 GBP'000 GBP'000
External revenue - 311 - 311
========= ========= =================== =========
(Loss)/profit before
tax (52) 20 (313) (345)
========= ========= =================== =========
Segment assets 1,076 4,036 648 5,760
========= ========= =================== =========
For the six months ended 31 March 2021 (unaudited)
West US Other Total
Africa operations
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - 31 - 31
========= ========= =================== =========
(Loss)/profit before
tax (60) (110) (390) (560)
========= ========= =================== =========
Segment assets 1,082 2,958 1,502 5,542
========= ========= =================== =========
For the twelve months ended 30 September 2020 (audited)
West US Other Total
Africa operations
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - - - -
========= ========= =================== =========
(Loss)/profit before
tax (405) (4) (833) (1,242)
========= ========= =================== =========
Segment assets 1,011 1,622 842 3,475
========= ========= =================== =========
6. Seasonality of operations
The phosphate business is subject to seasonal factors affecting
both mining and sales. Mining can only take place in summer, as the
mine site is subject to substantial snow cover in winter. The main
season for sales of phosphate fertilizer coincide with the planting
season. The production plant is not subject to seasonal
variation.
7. Intangible assets
6 months 6 months 12 months
30 Sep 31 Mar 30 Sep
21 21 (unaudited) 20
(unaudited) GBP'000 (audited)
GBP'000 GBP'000
Cost
Balance at beginning of period 3,637 1,227 1,206
Additions 607 2,629 1
Disposals - (158) -
Effect of movement in exchange rates 38 (61) 20
------------- ---------------- -----------
Balance at end of period 4,282 3,637 1,227
============= ================ ===========
Impairment losses
Balance at beginning of period - 158 155
Impairment - - -
Amortisation - - -
Disposals - (158) -
Effect of movement in exchange rates - - 3
------------- ---------------- -----------
Balance at end of period - - 158
============= ================ ===========
Carrying amounts
Balance at end of period 4,282 3,637 1,069
====== ====== ======
Balance at beginning of period 3,637 1,069 1,051
====== ====== ======
Intangible assets comprise the fair value of prospecting and
exploration rights.
8. Property, plant and equipment
Acquisitions and disposals
During the six months ended 30 September 2021 the Group acquired
assets with a cost of GBP209,000 (six months ended 31 March 2021:
GBP263,000, twelve months ended 30 September 2020: GBPnil).
Assets with a carrying amount of GBPnil were disposed of during
the six months ended 30 September 2021 (six months ended 31 March
2021: GBPnil; twelve months ended 30 September 2020: GBPnil),
resulting in a loss on disposal of GBPnil (six months ended 31
March 2021: GBPnil; twelve months ended 30 September 2020: GBPnil),
which is included in 'administrative expenses' in the condensed
consolidated statement of comprehensive income.
9. Investments
The interest in Falcon Isle was acquired for nominal
consideration under a binding heads of terms dated 28 July 2020.
Under this agreement the Company agreed to provide US$2.5m in loans
to Falcon Isle payable in agreed tranches. Falcon Isle is the 100%
owner of the Diamond Creek phosphate mine located in in Utah (USA)
which is a fully permitted, high grade direct shipping ore organic
phosphate operating mine.
At 30 September 2020 the Company had advanced US$ 1.9m to Falcon
Isle, resulting in an equity interest of 40% and bringing the cost
of the investment in the associate to GBP1,626,000.
On 31 December 2020 the Company advanced the balance of $0.6m
and its equity interest has increased to 51%.
Since 31 December 2020 the Company has advanced a further $0.7m
to Falcon Isle.
The initial acquisitions were accounted for under the equity
method of accounting but upon achieving control on 31 December
2020, the acquisition method of accounting has been applied.
The details of the business combination are as follows:
Fair value
GBP'000
Intangibles 2,170
Fixed assets 172
Inventory 142
Receivables 122
Bank balances and cash 158
Trade and other payables (17)
Loans (3,164)
(417)
Adjust: Non-controlling
interest 204
Adjust: goodwill 298
Adjust: Equity accounted losses to date
of control 76
---------------
161
===============
GBP'000
Satisfied by:
Acquisition related costs 161
161
=============
10. Inventories
30-Sep-21 31-Mar-21 30-Sep-20
(unaudited)
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Phosphate ore and processed material 245 135 -
245 135 -
============ ============= ===========
11. Other investments
30 Sep-21 31-Mar-21 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Equity securities - available for sale
Brought forward - - 9,923
Disposal via demerger - - (9,923)
- - -
==================== ==================== ===========
Equity securities represented ordinary and performance shares in
Calidus Resources Limited ("Calidus"), a company listed on the
Australian Securities Exchange ("ASX").
These equity securities were demerged on 19 November 2019 by way
of a capital reduction scheme.
12. Trade and other receivables
30 Sep-21 31-Mar-21 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Other receivables 226 352 71
Prepayments 17 39 12
243 391 83
============= ============= ===========
Trade receivables and other receivables are stated at their
nominal values less allowances for non-recoverability.
13. Share capital and reserves
Issue of ordinary shares
No shares were issued in the six months ended 30 September
2021.
Dividends
No dividends were declared or paid in the six months ended 30
September 2021 (six months ended 31 March 2021: GBPnil, twelve
months ended 30 September 2020: GBPnil).
14. Trade and other payables
30-Sep-21 31-Mar-21 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Trade payables 567 146 104
Accruals 249 230 228
Other payables 106 98 135
------------- ------------- -----------
922 474 467
============= ============= ===========
There is no material difference between the fair value of trade
and other payables and their book value.
15. Related parties
The total amount due to D Reeves at the period end was GBP55,000
in respect of unpaid remuneration (six months ended 31 March 2021:
GBP43,000, twelve months ended 30 September 2020: GBP31,000).
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
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END
IR FFFSLFVLALIL
(END) Dow Jones Newswires
December 20, 2021 02:00 ET (07:00 GMT)
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