Market Abuse Regulation (MAR)
Disclosure
Certain information contained in this
announcement would have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 until the
release of this announcement.
Strategic Minerals
plc
("Strategic Minerals", "SML",
the "Group" or the "Company")
Interim
Results
US$950,000 Pre-Tax
Profit
Strategic Minerals plc (AIM: SML;
USOTC: SMCDY), a producing mineral company actively developing
critical minerals focused projects, is pleased to announce its
unaudited interim results for the half year ended 30 June
2024.
Financial Highlights
· The return of Southern Minerals Group's major client has
positively impacted cash flow and helped sales for the six months
climb to US$2.136m, the highest six month revenue since 2017. This
provides an outlook for 2024 sales of more than US$4.5m.
· With increased sales has come increased operating
profitability, with the after-tax profit in this period rising to
31% from 5% last year. The pre-tax profit for the period was
US$950,000 (H1 2023: US$54,000).
· After tax profit for the interim six months was US$667,000 (H1
2022 US$38,000), consistent with the increase in sales.
· In the same period, US$325,000 was invested in the Company's
development projects (Redmoor Tungsten and Tin Mine - US$233,000
and Leigh Creek Copper Mine - US$25,000).
· US$258,000 of accrued creditors were repaid in the
period.
· Executive Directors' fees were temporarily reduced in 2024
reflecting undertakings associated with 2023.
· Unrestricted cash as of 30 June 2024 was US$280,000 (31 Dec
2023: US$112,000).
Corporate Highlights
Cash flow considerations restricted
much corporate activity during the first half of 2024. Despite
tight funding, the Company managed to keep the Redmoor team intact
and, after four years effort, secured mineral exploration rights to
a substantial portion of lands owned by the Duchy of Cornwall, as
well as other strategically important mineral rights. Accordingly,
the Company was able to expand its footprint in this mineral rich
area four-fold and looks forward to demonstrating the benefit such
access provides.
Shortly after the end of the interim
2024 period, the Company's then Chairman, Alan Broome AM, retired
and both Charles Manners and Mark Burnett were appointed to the
Board, resulting in the Company's top four shareholders being
represented on the Board. Subsequently, Charles Manners was elected
Chairman at the Board's first meeting following his
appointment.
Commenting, John Peters, Managing Director of
Strategic Minerals, said:
"The rapid recovery in Cobre sales, from January 2024, placed
serious cash flow pressure on the Company's working capital at a
time when depressed sales volumes had already left the Company in
an unhealthy cash position. To alleviate the cash flow pressure,
the Company, was able to raise short term funding in the form of
two loans. Subsequently, as the need for working capital abated,
cash flow has predominately been directed to the repayment of
external creditors and one of the short-term loans
raised.
"I
am pleased to report that creditor payments are now being met
within regular terms and that, after the interim period, payment of
accrued Directors and Management fees has begun.
"The Company continues to pursue investment in the Leigh Creek
Copper Mine by way of either joint venture or outright sale.
Similarly, the Company continues to seek funding for the Redmoor
Tungsten and Tin Mine through government-based grants or joint
venture.
"Subsequent to the end of the period, the retirement of Alan
Broome, provided the opportunity for Charles Manners, one of our
largest shareholders, and Mark Burnett, representing Philip
Richards, to both join the Board with Charles Manners subsequently
assuming the role of Chairman."
NOTES TO EDITORS
Strategic Minerals plc is an AIM-quoted,
profitable operating minerals company actively developing projects
tailored to materials expected to benefit from strong demand in the
future. It has an operation in the United States of America along
with development projects in the UK and Australia. The Company is
focused on utilising its operating cash flows, along with capital
raisings, to develop high quality projects aimed at supplying the
metals and minerals likely to be highly demanded in the
future.
In September 2011, Strategic Minerals acquired
the distribution rights to the Cobre magnetite tailings dam project
in New Mexico, USA, a cash-generating asset, which it brought into
production in 2012 and which continues to provide a revenue stream
for the Company. This operating revenue stream is utilised to cover
company overheads and invest in development projects aimed at
supplying the metals and minerals likely to be highly demanded in
the future.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of the
Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds
from the Company's investment were utilised to complete a drilling
programme that year. The drilling programme resulted in a
significant upgrade of the resource. This was followed in 2018 with
a 12-hole 2018 drilling programme has now been completed and the
resource update that resulted was announced in February 2019. In
March 2019, the Company entered into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26
September 2020.
In March 2018, the Company completed the acquisition of the Leigh
Creek Copper Mine situated in the copper rich belt of South
Australia and brought the project temporarily into production in
April 2019. In July 2021, the project was granted a conditional
approval by the South Australian Government for a Program for
Environmental Protection and Rehabilitation (PEPR) in relation to
mining of its Paltridge North deposit and processing at the
Mountain of Light installation. In late September 2022, an updated
PEPR, addressing the conditions associated with the July 2021
approval, was approved.
CHAIRMAN'S STATEMENT
The Company, along with many other
junior miners, weathered an extremely difficult 2023 but has come
through this challenging period with brighter prospects for the
remainder of 2024 and into 2025.
As the new Chairman, and largest
shareholder, I believe the Company is well placed to realise the
underlying value built up in its projects, in particular its
Redmoor Tungsten and Tin mine which has the potential to be of
strategic importance in global affairs.
Financial results
The rebound in the Company's
profitability in the first half of 2024 has been welcomed and
largely reflects the return of Cobre's major client after a
14-month hiatus. To survive the rigors of 2023, the Company
extended terms on its suppliers and paid only a small portion of
the remuneration due to the Board and Management in 2023 and the
beginning of 2024. Accordingly, after working capital stabilised,
the Company prioritised repayment of external creditors which are
now in line with market norms.
Early in 2023, as the largest
shareholder in Strategic Minerals, I pressed the Board on the lack
of progress at its projects and the effect this was having on the
Company's share price. The then Board acknowledged the difficulties
it was encountering in securing investors/buyers at the asset level
for the Leigh Creek Copper Mine ("LCCM") and the Redmoor Tungsten
and Tin mine ("Redmoor"). The Board then volunteered that, should
certain milestones around funding and share price not be met in
2023, the Board would forgo 50% of its remuneration. As one of the
key potential funding sources dragged onto Q1 2024, some leeway was
provided and the 2023 financial accounts reflected the full amount
of Directors remuneration, accruing unpaid amounts to which an 8%
per annum interest rate was applied. This rate was agreed by the
then Board.
As the proposed funding was not
forthcoming, the Board, after the AGM in July, agreed to a
temporary adjustment being made in the 2024 remuneration to
Executive Directors that ensures 50% of the total Board's base
remuneration in 2023 is recouped by the Company. These adjustments,
as they relate to the first six months of 2024, are reflected in
these interim results.
Repayment of short-term funding
facilities, raised for working capital purposes during the first
quarter of 2024, along with amounts and interest accrued to
Directors, are expected to be cleared in the second half of
2024.
With sales at Cobre exceeding our
previous expectations, we are confident on continued positive
momentum for the second half of 2024, and the Company is actively
working on securing similar arrangements for 2025.
Strategic Focus
Whilst the current improvement in
the Company's profitability is a welcome development, cash flow
from this profitability is not substantial enough to fund
significant progress at LCCM or Redmoor. With the recent additions
to the Board, the Company is hopeful that their extended investment
networks will result in greater potential for partnerships or
access to funding pools.
The current share price all but
rules out funding these projects through the issue of new equity
and the Board is focussed on how best to re-establish momentum in
the share price. We believe the strategic nature of tungsten, as a
critical mineral, in the current political climate will make
Redmoor the key focus of the Company moving forward.
Cobre Operations
The substantial increase in demand
at Cobre, associated with the return of its major client, has
resulted in the best six months of sales revenue since December
2017. At present, the Board believes that the second half Cobre
sales for 2024 may outperform H1 2024 sales.
Directors and Management are
currently progressing negotiations in relation to demand for the
remainder of this year and into next and are confident that sales
levels will remain high throughout 2025. It is not expected that
the result of the US presidential elections will have a major
impact on this demand.
The Company still awaits news from
the receiver for CV Investments LLC as to quantum and timing for
the first distribution in relation to the receivership, although it
now appears that any payment to the Company will be minor in
nature.
Leigh Creek Copper Mine ("Leigh Creek" or
"LCCM")
Over the first half of 2024, the
Company has worked with several parties who have expressed an
interest in acquiring/investing in LCCM. At the time of writing,
there are two parties in our data room actively reviewing the LCCM
project.
Whilst the LME copper price has been
the subject of fluctuations, the Australian dollar equivalent has
remained strong and, generally, above that employed in our
feasibility worksheets.
Redmoor Tin-Tungsten Project ("Redmoor")
Disappointingly, after a
considerable amount of excellent work had been completed in
relation to the provision of grant funding via the Shared
Prosperity Fund, and a conditional funding offer being received,
the Company was unable to provide sufficient evidence of its
ability to complete on its match funding co-investment during the
deconditioning period, and as such the opportunity lapsed.
Initially, following an extensive
consideration of an investment, including meetings, a site visit
and due diligence activities, the Company had received a strong
letter of support, submitted as part of the grant funding
application, from a party developing similar deposits as Redmoor,
confirming their interest in an investment into CRL to provide the
match funding. However, when the conditional funding offer, from
the Shared Prosperity Fund, was received, the matched funding was
not forthcoming due to external factors. While attempts were made
to substitute other parties for this co-investment role, these
efforts proved unsuccessful in part due to the short notice and
restricted project timelines.
During the first half of the year,
the team at Redmoor have directed much of their time to concluding
lengthy mineral rights agreements (including the historic milestone
agreement with the Duchy of Cornwall which quadrupled CRL's
minerals rights), seeking grant funding, both from the Shared
Prosperity Fund and other sources, and developing a strategy to
re-examine previous 2017 and 2018 drill core in a cost-efficient
manner expecting to significantly strengthen and add calibre to
Redmoor's existing JORC (2012) compliant mineral resource
estimate.
In the second half of 2024, the team
at Redmoor is undertaking the following activity:
· Further historic relogging and sampling on Redmoor's library
of 14,000m of drill core.
· Field sampling and identification of potential exploration
opportunities on the recently acquired Duchy of Cornwall
license.
· Continuing involvement in, and advancing new, collaborative
research funding opportunities with Camborne School of Mines and
the Cornish mining community.
· Gaining membership of the US Defense Industry Base Consortium
(DIBC) (Completed) and
attending the DIBC symposium, in San Diego (Completed), which outlined the format
and nature of current Defense Production Act Investment (DPAI)
funding opportunities made available via White Papers open
announcements from the Department of Defense for strategic and
critical minerals projects.
· Preparing and submitting a White Paper application to an open
announcement via the DIBC.
· Preparing for an application to the EU for Strategic Project
Status which could, ultimately, lead to greater project support and
increased prospects for funding.
· Continuing engagement with Government, the Critical Minerals
Association, and other parties on the upcoming Critical Minerals
List refresh.
· Attending Mines and Money conference in December 2024, as part
of a "Cornish Pavillion" of Southwest-based mining development
projects and representatives, to promote CRL and the growing
importance of critical minerals mining to the Cornish and U.K.
economy.
· Hosting site visits by investors, research analysts and
various other counterparties and stakeholders, including the two
new SML directors.
· Hosting local community and stakeholder updates.
Safety
The Company has a strong focus on
safety issues and continues to maintain a high level of performance
when it comes to safety. In the first half of 2024 there was no
safety issues reported.
I would like to take this
opportunity to thank my fellow Directors, our management and staff
in New Mexico, South Australia and Cornwall, along with our
advisers, for their support and hard work on our behalf during the
period. Additionally, I would like to thank our clients,
contractors, suppliers and partners for their continued
backing.
I look forward to progressing our
key strategic goals in 2024 and an even brighter 2025.
Charles Manners
Non-Executive Chairman
26
September 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
6 months
to
30
June
2024
(Unaudited)
|
6 months
to
30
June
2023
(Unaudited)
|
Year
to
31
December
2023
(Audited)
|
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
2,136
|
782
|
1,577
|
|
|
Raw materials and consumables used.
|
(393)
|
(137)
|
(262)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Gross
profit
|
1,743
|
645
|
1,315
|
|
|
|
|
|
|
|
|
Other income
|
-
|
1
|
4
|
|
|
Overhead expenses
|
(583)
|
(457)
|
(1,186)
|
|
|
Amortisation
|
(158)
|
(116)
|
(277)
|
|
|
Depreciation
|
(8)
|
(8)
|
(16)
|
|
|
Impairment
|
(25)
|
-
|
(8,898)
|
|
|
Share based payment
|
-
|
-
|
(5)
|
|
|
Foreign exchange gain/(loss)
|
(10)
|
(6)
|
(5)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Profit from
operations
|
959
|
59
|
(9,068)
|
|
|
|
|
|
|
|
|
Lease Interest
|
(9)
|
(5)
|
(14)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Profit/ (loss)
before taxation
|
950
|
54
|
(9,082)
|
|
|
|
|
|
|
|
|
Income tax (expense)/credit
|
(283)
|
(16)
|
(107)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
|
_________
|
_________
|
_________
|
|
|
Profit for the
period attributable to:
|
|
|
|
|
|
Owners of the parent
|
667
|
38
|
(9,189)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
|
Exchange gains/(losses) arising on
translation
of foreign operations
|
(205)
|
22
|
189
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Total
comprehensive (loss)/income attributable to:
|
|
|
|
|
|
Owners of the parent
|
462
|
60
|
(9,000)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/ (loss)
per share attributable to the ordinary equity holders of the
parent:
|
|
Continuing
activities - Basic
|
¢0.042
|
¢0.02
|
(¢0.58)
|
|
|
-
Diluted
|
¢0.042
|
¢0.02
|
(¢0.58)
|
|
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
6 months
to
30
June
2024
(Unaudited)
|
6 months
to
30
June
2023
(Unaudited)
|
Year
to
31
December
2023
(Audited)
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Intangible Asset
|
-
|
533
|
-
|
|
Deferred Exploration and evaluation
costs
|
5,592
|
5,367
|
5,568
|
|
Other Receivables
|
133
|
133
|
136
|
|
Property, plant and equipment
|
72
|
8,203
|
80
|
|
Right of Use Assets
|
594
|
469
|
453
|
|
|
_________
|
_________
|
_________
|
|
|
6,391
|
14,705
|
6,237
|
|
|
_________
|
_________
|
_________
|
|
Current
assets
|
|
|
|
|
Inventories
|
4
|
5
|
4
|
|
Trade and other receivables
|
519
|
391
|
219
|
|
Income Tax prepaid
|
-
|
13
|
31
|
|
Cash and cash equivalents
|
280
|
129
|
112
|
|
|
_________
|
_________
|
_________
|
|
|
803
|
538
|
366
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
Total
Assets
|
7,194
|
15,243
|
6,603
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
Equity and
liabilities
|
|
|
|
|
Share capital
|
2,916
|
2,916
|
2,916
|
|
Share premium reserve
|
49,387
|
49,387
|
49,387
|
|
Share options reserve
|
5
|
-
|
5
|
|
Merger reserve
|
21,300
|
21,300
|
21,300
|
|
Warrant Reserve
|
-
|
-
|
-
|
|
Foreign exchange reserve
|
(1,350)
|
(1,312)
|
(1,145)
|
|
Other reserves
|
(23,023)
|
(23,023)
|
(23,023)
|
|
Accumulated loss
|
(44,925)
|
(36,365)
|
(45,592)
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
Total
Equity
|
4,310
|
12,903
|
3,848
|
|
|
_________
|
_________
|
_________
|
|
Liabilities
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
Lease Liabilities
|
375
|
230
|
302
|
|
Provisions
|
1,171
|
1,166
|
1,192
|
|
|
_________
|
_________
|
_________
|
|
|
1,546
|
1,396
|
1,494
|
|
|
_________
|
_________
|
_________
|
|
Current
liabilities
|
|
|
|
|
Income Tax Payable
|
333
|
148
|
101
|
|
Trade and other payables
|
714
|
580
|
972
|
|
Loans and Borrowings
|
68
|
-
|
35
|
|
Lease Liabilities
|
223
|
216
|
153
|
|
|
_________
|
_________
|
_________
|
|
|
1,338
|
944
|
1,261
|
|
|
_________
|
_________
|
_________
|
|
Total
Liabilities
|
2,884
|
2,340
|
2,755
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
Total Equity
and Liabilities
|
7,194
|
15,243
|
6,603
|
|
|
_________
|
_________
|
_________
|
CONSOLIDATED STATEMENT OF CASH
FLOW
|
|
6 months
to
30
June
2024
(Unaudited)
|
6 months
to
30
June
2023
(Unaudited)
|
Year
to
31
December
2023
(Audited)
|
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities
|
|
|
|
|
|
Profit/ (loss) after tax
|
667
|
38
|
(9,189)
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant, and
equipment
|
8
|
8
|
16
|
|
|
Amortisation of Right of Use asset
|
158
|
116
|
277
|
|
|
Impairment charge
|
25
|
-
|
8,898
|
|
|
Income Tax expense
|
283
|
16
|
107
|
|
|
Lease Interest
|
9
|
-
|
14
|
|
|
(Increase) / decrease in inventory
|
-
|
-
|
1
|
|
|
(Increase) / decrease in trade and other
receivables
|
(300)
|
(149)
|
45
|
|
|
(Increase) / decrease in prepayments
|
-
|
25
|
25
|
|
|
Increase / (decrease) in trade and other
payables
|
(258)
|
213
|
610
|
|
|
Increase /(decrease) in prepaid income
tax
|
-
|
75
|
(57)
|
|
|
Income tax paid
|
(20)
|
(53)
|
(154)
|
|
|
Share based payment expense
|
-
|
-
|
5
|
|
|
|
_________
|
_________
|
_________
|
|
|
Net cash flows
from operating activities
|
572
|
289
|
598
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Increase in PPE Development Asset
|
(25)
|
(188)
|
(203)
|
|
|
Increase in PPE
|
-
|
-
|
-
|
|
|
Increase in deferred exploration and evaluation
asset
|
(233)
|
(159)
|
(366)
|
|
|
|
_________
|
_________
|
_________
|
|
|
Net cash used
in investing activities
|
(258)
|
(347)
|
(569)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from borrowings
|
67
|
-
|
34
|
|
|
Repayment of borrowings
|
(39)
|
-
|
-
|
|
|
Lease Payments
|
(174)
|
(146)
|
(296)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Net cash from
financing activities
|
(146)
|
(146)
|
(262)
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents
|
168
|
(204)
|
(233)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of
period
|
112
|
341
|
341
|
|
|
Exchange gains / (losses) on cash and cash
equivalents
|
-
|
(7)
|
4
|
|
|
|
_________
|
_________
|
_________
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
280
|
129
|
112
|
|
|
|
_________
|
_________
|
_________
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
|
|
Share capital
|
Share premium reserve
|
Merger Reserve
|
Warrant
Warrant Reserve
|
Share options reserve
|
Initial Re-structure
Reserve
|
Foreign Exch.
reserve
|
Retained earnings
|
Total equity
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
1 January
2023
|
2,916
|
49,387
|
21,300
|
-
|
-
|
(23,023)
|
(1,334)
|
(36,403)
|
12,843
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9,189)
|
(9,189)
|
|
Foreign exchange translation
|
-
|
-
|
-
|
-
|
-
|
-
|
189
|
-
|
189
|
|
|
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
Total comprehensive income/(loss) for the
year
|
-
|
-
|
-
|
-
|
-
|
-
|
189
|
(9,189)
|
(9,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based payments
|
-
|
-
|
-
|
5
|
-
|
-
|
-
|
-
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Balance
at
31 December
2023
|
2,916
|
49,387
|
21,300
|
5
|
-
|
(23,023)
|
(1,145)
|
(45,592)
|
3,848
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
667
|
667
|
|
Foreign exchange translation
|
-
|
-
|
-
|
-
|
-
|
-
|
(205)
|
-
|
(205)
|
|
|
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
Total comprehensive income for the
year
|
-
|
-
|
-
|
-
|
-
|
-
|
(205)
|
667
|
462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Balance
at
30 June
2024
|
2,916
|
49,387
|
21,300
|
5
|
-
|
(23,023)
|
(1,350)
|
(44,925)
|
4,310
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
All comprehensive income is attributable to the
owners of the parent Company.
NOTES FORMING PART OF THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
1. General Information
Strategic Minerals Plc ("the Company") is a
public company incorporated in England and Wales. The
consolidated interim financial statements of the Company for the
six months ended 30 June 2024 comprise the Company and its
subsidiaries (together referred to as the "Group").
2. Significant accounting policies
Basis of preparation
In preparing these financial statements the
presentational currency is US dollars. As the entire group's
revenues and majority of its costs, assets and liabilities are
denominated in US dollars it is considered appropriate to report in
this currency.
The principal accounting policies adopted in
the preparation of the financial statements are set out below.
The policies have been consistently applied to all the years
presented, unless otherwise stated.
These financial statements have been prepared
in accordance with International Financial Standards and UK adopted
international accounting standards in conformity with the
requirements of the Companies Act 2006.
The preparation of financial statements in
compliance with adopted IFRS requires the use of certain critical
accounting estimates. It also requires Group management to
exercise judgment in applying the Group's accounting policies.
The areas where significant judgments and estimates have been
made in preparing the financial statements and their effect are
disclosed in note 2.
The financial statements have been prepared on
a historical cost basis, except for the acquisition of LCCM and the
valuation of certain investments which have been measured at fair
value, not historical cost.
Going concern basis
The Directors have considered the Group and
Parent Company's (together "the Group") ability to continue as a
going concern through review of cash flow forecasts prepared by
management for the period to 31 December 2025 and a review of the
key assumptions on which these are based and sensitivity
analysis.
The Company forecasts that to have sufficient
funds to meet all operating costs until December 2025, the Group is
reliant on cash being generated from the Cobre asset in line with
forecast.
As outlined by the Board, it is intended that
any funds required to progress either the Leigh Creek Copper Mine
and/or Redmoor projects will be sourced at the asset level and
Management are actively pursuing such funding.
The Directors have reasonable expectation that
the Group will have access to sufficient resources by way of debt
or equity markets should the need arise. Consequently, the
consolidated financial statements have been prepared on a going
concern basis.
The financial report does not include
adjustments relating to the recoverability and classification of
recorded asset amounts or to the amounts and classification of
liabilities that might be necessary should the Group not continue
as a going concern.
New standards, interpretations, and amendments
effective 1 July 2024:
There are a number of standards, amendments to
standards, and interpretations which have been issued by the IASB
that are effective in future accounting periods and which have not
been adopted early.
Investment in joint arrangements
The Group is a party to a joint arrangement
when there is a contractual arrangement that confers joint control
over the relevant activities of the arrangement to the group and at
least one other party. Joint control is assessed under the same
principles as control over subsidiaries.
The group classifies its interests in joint
arrangements as either:
·
Joint ventures: where the group has rights to only the net
assets of the joint arrangement.
·
Joint operations: where the group has both the rights to
assets and obligations for the liabilities of the joint
arrangement.
In assessing the classification of interests in
joint arrangements, the Group considers:
·
The structure of the joint arrangement
·
The legal form of joint arrangements structured through a
separate vehicle
·
The contractual terms of the joint arrangement
agreement
·
Any other facts and circumstances (in any other contractual
arrangements).
The Group accounts for its interests in joint
ventures initially at cost in the consolidated statement of
financial position. Subsequently joint ventures are accounted for
using the equity method where the Group's share of post-acquisition
profits and losses and other comprehensive income is recognised in
the consolidated statement of profit and loss and other
comprehensive income (except for losses in excess of the Group's
investment in the associate unless there is an obligation to make
good those losses).
Profits and losses arising on transactions
between the Group and its joint ventures are recognised only to the
extent of unrelated investors' interests in the joint venture. The
investor's share in the joint ventures' profits and losses
resulting from these transactions is eliminated against the
carrying value of the joint venture.
Any premium paid for an investment in a joint
venture above the fair value of the Group's share of the
identifiable assets, liabilities and contingent liabilities
acquired is capitalised and included in the carrying amount of the
investment in joint venture. Where there is objective evidence that
the investment in a joint venture has been impaired the carrying
amount of the investment is tested for impairment in the same way
as other non-financial assets.
The Group accounts for its interests in joint
operations by recognising its share of assets, liabilities,
revenues, and expenses in accordance with its contractually
conferred rights and obligations. In accordance with IFRS 11 Joint
Arrangements, the Group is required to apply all of the principles
of IFRS 3 Business Combinations when it acquires an interest in a
joint operation that constitutes a business as defined by IFRS
3.Where there is an increase in the stake of the joint venture
entity from an associate to a subsidiary and the acquisition is
considered as an asset acquisition and not a business combination
in accordance with IFRS3, this step up transaction is accounted for
as the purchase of a single asset and the cost of the transaction
is allocated in its entirety to that asset with no gain or loss
recognised in the income statement. The step-up acquisition of CRL
in 2019 has been accounted for as a purchase of a single asset and
the cost of the transaction is allocated in its entirety to that
balance sheet.
3. Critical accounting estimates and
judgements
The Group makes certain estimates and
assumptions regarding the future. Estimates and judgements
are continually evaluated based on historical experience and other
factors, including expectations of future events that are believed
to be reasonable under the circumstances. In the future,
actual experience may differ from these estimates and assumptions.
The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed
below.
Estimates
(a) Carrying value of
intangible assets
Management assesses the carrying value of the
exploration and evaluation assets for indicators of impairment
based on the requirements of IFRS 6 which are inherently
judgemental. This includes ensuring the Group maintains legal
title, assessment regarding the commerciality of reserves and the
clear intention to move the asset forward to
development.
The Redmoor projects
are early-stage exploration projects and therefore Management have
applied judgement in the period as to whether the results from
exploration activity provide sufficient evidence to continue to
move the asset forward to development. There are no
indicators of impairment for the Redmoor project in the period to
30 June 2024.
(b) Share based
payments
The fair value of share-based payments
recognised in the statement of comprehensive income is measured by
use of the Black Scholes model after taking into account
market-based vesting conditions and conditions attached to the
vesting and exercise of the equity instruments. The expected life
used in the model is adjusted based on management's best estimate,
for the effects of non-transferability, exercise restrictions and
behavioural considerations. The share price volatility percentage
factor used in the calculation is based on management's best
estimate of future share price behaviour based on past
experience.
(c) Carrying value of
amounts owed by subsidiary undertakings.
IFRS9 requires the parent company to make
certain assumptions when implementing the forward- looking expected
credit loss model. This model is required to be used to assess the
intercompany loan receivables from its subsidiaries for impairment.
Arriving at an expected credit loss allowance involved considering
different scenarios for the recovery of the intercompany loan
receivables, the possible credit losses that could arise and
probabilities for these scenarios.
The following were considered: the
exploration project risk, the future sales potential of product,
value of potential reserves and the resulting expected economic
outcomes of the project.
(d) Carrying Value of
Development Assets
Management assesses the carrying value of
development assets for indicators of impairment based on the
requirements of IAS36 which are inherently judgemental.
The following are the key assumptions used in
this assessment of Carrying value.
i) Mineable reserves over life of
project
ii) Forecasted Copper pricing
iii) Capital and operating cost
assumptions to deliver the mining schedule
iv) Foreign exchange rates
v) Discount rate
vi) Estimated project commencement
date.
If the carrying amount of the Development asset
exceeds the recoverable amount, the asset is impaired. The Group
will reduce the carrying amount of the asset to its recoverable
amount and recognise an impairment loss. The assessment is carried
out twice per year - end of half year reporting period and end of
annual reporting period.
(e)
Determination of incremental borrowing rate for
leases
Under IFRS 16, where the interest rate implicit
in the lease cannot be readily determined the incremental borrowing
rate is used. The incremental borrowing rate is defined as the rate
of interest that a lessee would have to pay to borrow, over a
similar term and with a similar security, the funds necessary to
obtain an asset of a similar value to the cost of the right-of-use
asset in a similar economic environment.
Judgements
(a) Investments in
subsidiaries
Investment in subsidiaries comprises of the
cost of acquiring the shares in subsidiaries.
If an impairment trigger is identified and
investments in subsidiaries are tested for impairment, estimates
are used to determine the expected net return on investment. The
estimated return on investment takes into account the underlying
economic factors in the business of the Company's subsidiaries
including estimated recoverable reserves, resources prices, capital
investment requirements, and discount rates among other
things.
(b) Contingent
consideration as part of Asset acquisition
Judgement was required in determining the
accounting for the contingent consideration payable as per of the
CRL acquisition. The group has an obligation to pay A$1m on net
smelter sales arising from CRL production reaching A$50m and a
further A$1m on net smelter sales arising from CRL production
reaching A$100m.
Whilst a possible obligation exists in relation
to the consideration payable, given the early stage of the project
it was concluded that at reporting date it is not probable that an
outflow of resources embodying economic benefits will be required
to settle the obligation
4. Segment information
The Group has four main segments during the
period:
·
Southern Minerals Group LLC (SMG) - This segment is involved
in the sale of magnetite to both the US domestic market and
historically transported magnetite to port for onward export
sale.
·
Head Office - This segment incurs all the administrative
costs of central operations and finances the Group's operations.
A management fee is charged for completing this service and
other certain services and expenses.
·
Development Asset - This segment holds the Leigh Creek Copper
Mine Development Asset in Australia and incurs all related
operating costs.
·
United Kingdom - The investment in the Redmoor project in
Cornwall, United Kingdom is held by this segment.
Factors that management used to identify the
Group's reportable segments.
The Group's reportable segments are strategic
business units that carry out different functions and operations
and operate in different jurisdictions.
Operating segments are reported in a manner
consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision maker has
been identified as the board and management team which includes the
Board and the Chief Financial Officer.
Measurement of operating segment profit or loss,
assets, and liabilities
The Group evaluates segmental performance on
the basis of profit or loss from operations calculated in
accordance with International Accounting Standards.
Segment assets exclude tax assets and assets
used primarily for corporate purposes. Segment liabilities exclude
tax liabilities. Loans and borrowings are allocated to the segments
in which the borrowings are held. Details are provided in the
reconciliation from segment assets and liabilities to the Group's
statement of financial position.
|
6 Months to 30 June 2024
(Unaudited)
|
SMG
|
Head
Office
|
United
Kingdom
|
Development Asset
|
Intra
Segment
Elimination
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
|
Revenues
|
2,136
|
-
|
-
|
-
|
-
|
2,136
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Gross profit
|
2,136
|
-
|
-
|
-
|
-
|
2,136
|
|
|
|
|
|
|
|
|
|
Raw materials/consumables
|
(393)
|
-
|
-
|
-
|
-
|
(393)
|
|
Overhead expenses
|
(342)
|
(214)
|
(5)
|
-
|
-
|
(561)
|
|
Management fee income/(expense)
|
(200)
|
200
|
|
-
|
-
|
-
|
|
Interest
|
-
|
(13)
|
(8)
|
-
|
-
|
(21)
|
|
Share based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Amortisation
|
(158)
|
-
|
-
|
-
|
-
|
(158)
|
|
Impairment
|
-
|
-
|
|
(25)
|
-
|
(25)
|
|
Depreciation
|
(8)
|
-
|
-
|
-
|
-
|
(8)
|
|
Foreign exchange gain/(loss)
|
-
|
227
|
-
|
-
|
(238)
|
(11)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Segment profit /(loss) from
operations
|
1,035
|
200
|
-
|
(25)
|
(238)
|
959
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Lease Interest
|
(9)
|
|
-
|
|
|
(9)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Segment profit /(loss) before
taxation
|
1,026
|
200
|
(13)
|
(25)
|
(238)
|
950
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
6 Months to 30 June 2023
(Unaudited)
|
SMG
|
Head
Office
|
United
Kingdom
|
Development Asset
|
Intra
Segment
Elimination
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
|
Revenues
|
782
|
-
|
-
|
-
|
-
|
782
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Gross profit
|
782
|
-
|
-
|
-
|
-
|
782
|
|
|
|
|
|
|
|
|
|
Other Income
|
1
|
-
|
-
|
-
|
-
|
1
|
|
Raw materials/consumables
|
(137)
|
-
|
-
|
-
|
-
|
(137)
|
|
Overhead expenses
|
(242)
|
(215)
|
-
|
-
|
-
|
(457)
|
|
Management fee income/(expense)
|
(200)
|
197
|
|
-
|
3
|
-
|
|
Share based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Amortisation
|
(116)
|
-
|
-
|
-
|
-
|
(116)
|
|
Depreciation
|
(8)
|
-
|
-
|
-
|
-
|
(8)
|
|
Foreign exchange gain/(loss)
|
-
|
78
|
-
|
-
|
(84)
|
(6)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Segment profit /(loss) from
operations
|
80
|
60
|
-
|
-
|
(81)
|
59
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Lease Interest
|
(4)
|
|
(1)
|
|
|
(5)
|
|
Finance Expense
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Segment profit /(loss) before
taxation
|
76
|
60
|
(1)
|
-
|
(81)
|
54
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Year to 31 December 2023
(Audited)
|
SMG
|
Head
Office
|
United
Kingdom
|
Development Asset
|
Intra
Segment
Elimination
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
Revenues
|
1,577
|
-
|
-
|
-
|
-
|
1,577
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Total
Revenue
|
1,577
|
-
|
-
|
-
|
-
|
1,577
|
|
|
|
|
|
|
|
|
|
Othe Revenue
|
1
|
-
|
3
|
-
|
-
|
4
|
|
Raw Materials/Consumables
|
(262)
|
-
|
-
|
-
|
-
|
(262)
|
|
Overhead expenses
|
(478)
|
(627)
|
(56)
|
-
|
-
|
(1,161)
|
|
Management fee income/(expense)
|
(250)
|
250
|
|
-
|
-
|
-
|
|
Share based payments
|
-
|
(5)
|
-
|
-
|
-
|
(5)
|
|
Impairment
|
-
|
-
|
-
|
(8,898)
|
-
|
(8,898)
|
|
Amortisation- right of use asset
|
(277)
|
-
|
-
|
-
|
-
|
(277)
|
|
Interest
|
(6)
|
(18)
|
-
|
-
|
-
|
(24)
|
|
Depreciation
|
(16)
|
-
|
-
|
-
|
-
|
(16)
|
|
(Loss)/ gain on intercompany loans
|
-
|
(3,377)
|
-
|
-
|
3,377
|
-
|
|
Foreign exchange gain/(loss)
|
-
|
(227)
|
-
|
-
|
221
|
(6)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Segment profit
/(loss) from operations
|
289
|
(4,004)
|
(53)
|
(8,898)
|
3,598
|
(9,068)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Lease
Interest
|
(14)
|
-
|
-
|
-
|
-
|
(14)
|
|
Finance
Expense
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Segment profit
/(loss) before taxation
|
275
|
(4,004)
|
(53)
|
(8,898)
|
3,598
|
(9,082)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
As at 30 June 2024
(Unaudited)
|
SMG
|
Head
Office
|
United
Kingdom
|
Development Asset
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
Additions to non-current
assets
|
-
|
-
|
233
|
25
|
258
|
|
|
_______
|
_______
|
_______
|
______
|
_______
|
|
|
|
|
|
|
|
|
Reportable segment assets
|
1,358
|
56
|
5,640
|
140
|
7,194
|
|
|
_______
|
_______
|
_______
|
______
|
_______
|
|
|
|
|
|
|
|
|
Reportable segment
liabilities
|
1,065
|
495
|
116
|
1,208
|
2,884
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
As at 30 June 2023
(Unaudited)
|
SMG
|
Head
Office
|
United
Kingdom
|
Development Asset
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
Additions to non-current
assets
|
-
|
-
|
159
|
188
|
347
|
|
|
_______
|
_______
|
_______
|
______
|
_______
|
|
|
|
|
|
|
|
|
Reportable segment assets
|
901
|
42
|
5,517
|
8,783
|
15,243
|
|
|
_______
|
_______
|
_______
|
______
|
_______
|
|
|
|
|
|
|
|
|
Reportable segment
liabilities
|
690
|
359
|
86
|
1205
|
2340
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
As at 31 December 2023
(Audited)
|
SMG
|
Head
Office
|
United
Kingdom
|
Development Asset
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
Additions to non-current
assets
|
-
|
-
|
366
|
203
|
569
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
Reportable segment assets
|
837
|
30
|
5,599
|
137
|
6,603
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
Reportable segment
liabilities
|
656
|
730
|
127
|
1,242
|
2,755
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
External
revenue by
location
of customers
|
Non-current assets by
location of assets
|
|
|
30 June
2024
|
30 June
2023
|
30 June
2024
|
30 June
2023
|
|
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
United States
|
2,136
|
782
|
650
|
535
|
|
United Kingdom
|
-
|
-
|
5,608
|
5,387
|
|
Australia
|
-
|
-
|
133
|
8,783
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
2,136
|
782
|
6,391
|
14,705
|
|
|
_______
|
_______
|
_______
|
_______
|
Revenues from Customer A totalled $323,163
(2023: $273,114), which represented 15% (2023: 35%) of total
domestic sales in the United States, Customer B totalled $1,022,442
(2023: nil) which represented 48% (2023: 0%) Customer C totalled
$404,104 (2023: $ 417,642) which represented 19% (2023: 53%), and
Customer D totalled $334,977 (2023: nil) which represented 16%
(2023: 0%).
5. Operating Loss
|
|
6 months
to
30
June
2024
(Unaudited)
|
6 months
to
30
June
2023
(Unaudited)
|
Year
to
31
December
2023
(Audited)
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Operating
gain/loss is stated after charging/(crediting):
|
|
|
|
|
|
|
|
|
|
Other Income
|
-
|
(1)
|
(4)
|
|
|
|
|
|
|
Directors' fees and emoluments
|
39
|
86
|
257
|
|
Equipment rental
|
-
|
2
|
2
|
|
|
|
|
|
|
Equipment maintenance
|
31
|
13
|
30
|
|
Fees payable to the company's auditor for
the
|
-
|
-
|
81
|
|
audit of the parent company and consolidated
financial statements
|
|
|
|
|
Non- Audit Services
|
6
|
-
|
-
|
|
Salaries, wages, and other staff related
costs
|
336
|
203
|
405
|
|
Legal, professional and consultancy
fees
|
53
|
82
|
189
|
|
Other Expenses
|
76
|
71
|
198
|
|
|
_______
|
_______
|
_______
|
|
Overhead Expenses
|
541
|
457
|
1,158
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
Lease Interest
|
9
|
5
|
14
|
|
Interest
|
21
|
-
|
24
|
|
Foreign exchange
|
10
|
6
|
5
|
|
Amortisation of Right of use assets
|
158
|
116
|
277
|
|
Depreciation
|
8
|
8
|
16
|
|
Share based payments
|
-
|
-
|
5
|
|
Impairment
|
25
|
-
|
8,898
|
|
|
_______
|
_______
|
_______
|
|
Total
|
772
|
591
|
10,397
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
6. Intangible assets - exploration and evaluation
costs
|
|
6 months
to
30
June
2024
(Unaudited)
|
6 months
to
30
June
2023
(Unaudited)
|
Year
to
31
December
2023
(Audited)
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
Opening balance for the period
|
5,568
|
4,983
|
4,983
|
|
|
|
|
|
|
Additions for the period
|
234
|
236
|
486
|
|
Grant Reimbursement
|
-
|
(69)
|
(112)
|
|
Research and development incentive
|
-
|
(8)
|
(8)
|
|
Foreign exchange difference
|
(211)
|
225
|
219
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
Closing
balance for period
|
5,592
|
5,367
|
5,568
|
|
|
_______
|
_______
|
_______
|
7. Property, plant and equipment
|
|
Development Asset
|
Plant and
Machinery
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Group
|
|
|
|
|
Cost
|
|
|
|
|
At 1 January 2023 (audited)
|
7,807
|
723
|
8,530
|
|
Additions
|
188
|
-
|
188
|
|
Foreign exchange difference
|
(193)
|
(7)
|
(200)
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
At 30 June
2023 (unaudited)
|
7,802
|
716
|
8,518
|
|
|
|
|
|
|
|
|
|
|
|
Additions for period
|
15
|
-
|
237
|
|
Impairment
|
(8,033)
|
(328)
|
(8,531)
|
|
Foreign exchange difference
|
216
|
7
|
233
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
At 31 December
2023 (audited)
|
-
|
395
|
395
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Additions
|
25
|
-
|
25
|
|
Impairment
|
(25)
|
-
|
(25)
|
|
Foreign exchange difference
|
-
|
-
|
-
|
|
|
_______
|
________
|
_______-
|
|
|
|
|
|
|
At 30 June
2024(Unaudited)
|
-
|
395
|
395
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
At 1 January 2023 (audited)
|
-
|
(307)
|
(307)
|
|
Charge for the period
|
-
|
(8)
|
(8)
|
|
Foreign exchange difference
|
|
|
-
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
At 30 June
2023 (unaudited)
|
-
|
(315)
|
(315)
|
|
|
|
|
|
|
Charge for the period
|
-
|
-
|
-
|
|
Foreign exchange difference
|
-
|
-
|
-
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
At 31 December
2023 (audited)
|
-
|
(315)
|
(315)
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Charge for the period
|
-
|
(8)
|
(8)
|
|
Foreign exchange difference
|
-
|
-
|
-
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 30 June
2024(unaudited)
|
-
|
(323)
|
(323)
|
|
|
|
|
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Carrying
Value
|
|
|
|
|
|
|
|
|
|
As at 30 June
2024(unaudited)
|
-
|
72
|
72
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 31
December 2023(audited)
|
-
|
80
|
80
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 30 June
2023 (unaudited)
|
7,802
|
401
|
8,203
|
|
|
________
|
________
|
________
|
8. Leases
The Group has leases for an office, plant and
machinery and a vehicle. Each lease is reflected on the balance
sheet as a right-of-use asset and a lease liability. The Group
classifies its right-of-use assets in a consistent manner to its
property, plant and equipment.
|
|
Office
Lease
|
Plant,
Machinery and Vehicles
|
Total
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Right of Use
Assets
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 January 2023 (audited)
|
1
|
583
|
584
|
|
|
|
|
|
|
Additions
|
-
|
-
|
-
|
|
Amortisation(capitalised)
|
(1)
|
-
|
(1)
|
|
Amortization
|
-
|
(115)
|
(115)
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 30 June 2023 (unaudited)
|
-
|
469
|
469
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Additions
|
-
|
150
|
150
|
|
Amortisation(capitalised)
|
-
|
(3)
|
(3)
|
|
Amortization
|
-
|
(162)
|
(162)
|
|
|
________
|
________
|
________
|
|
As at 31 Dec 2023 (Audited)
|
-
|
453
|
453
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Additions
|
-
|
301
|
301
|
|
Amortisation(capitalised)
|
-
|
(2)
|
(2)
|
|
Amortization
|
-
|
(159)
|
(159)
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 30 June 2024 (unaudited)
|
-
|
594
|
594
|
|
|
________
|
________
|
________
|
|
|
Office
Lease
|
Plant, Machinery and
Vehicles
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Lease Liabilities
|
|
|
|
|
As at 1
January 2023 (audited)
|
4
|
583
|
587
|
|
|
|
|
|
|
Additions
|
-
|
-
|
-
|
|
Interest Payments
|
-
|
5
|
5
|
|
Lease Payments
|
(4)
|
(142)
|
(146)
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 30 June
2023 (unaudited)
|
-
|
446
|
446
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Additions
|
-
|
150
|
150
|
|
Interest Payments
|
-
|
9
|
9
|
|
Lease Payments
|
|
(150)
|
(150)
|
|
|
________
|
________
|
________
|
|
As at 31 Dec
2023 (Audited
|
-
|
455
|
455
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
Additions
|
-
|
301
|
301
|
|
Interest Payments
|
-
|
9
|
9
|
|
Lease Payment
|
-
|
(166)
|
(166)
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
As at 30 June
2024 (unaudited)
|
-
|
598
|
598
|
|
|
________
|
________
|
________
|
|
Lease
Liability
|
June
2024
|
June
2023
|
December
2023
|
|
|
|
|
|
|
Current
|
223
|
216
|
153
|
|
Non-Current
|
375
|
230
|
302
|
|
|
________
|
________
|
________
|
|
|
|
|
|
|
|
598
|
446
|
455
|
|
|
|
|
|
|
|
________
|
________
|
________
|
9. Dividends
No dividend is proposed for the
period.
10. Earnings per share
Earnings per ordinary share have been
calculated using the weighted average number of shares in issue
during the relevant financial year as provided below.
|
|
6 months
to
30
June
2024
(Unaudited)
|
6 months
to
30
June
2023
(Unaudited)
|
Year
to
31
December
2023
(Audited)
|
|
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
Weighted average number of shares -
Basic
|
1,593,558,030
|
1,593,558,030
|
1,593,558,030
|
|
Weighted average number of shares -
Diluted
|
1,593,558,030
|
1,593,558,030
|
1,593,558,030
|
|
|
|
|
|
|
Earnings (loss) for the period
|
$557,000
|
$38,000
|
($9,189,000)
|
|
|
|
|
|
|
Earnings per share in the period -
Basic
|
¢0.042
|
¢0.02
|
¢(0.58)
|
|
Earnings per share in the period -
Diluted
|
¢0.042
|
¢0.02
|
¢(0.58)
|
11. Share capital and premium
|
|
30
June
2024
|
30
June
2024
|
30
June
2023
|
30
June
2023
|
|
|
No
|
$'000
|
No
|
$'000
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
Ordinary shares
|
2,015,964,616
|
52,303
|
2,015,964,616
|
52,303
|
|
|
____________
|
____________
|
____________
|
____________
|
Share options and warrants
As at 30 June 2024 all share options and
warrants have expired.
12. Post balance date events
Post the balance sheet date, the then Company
chairman, Alan Broome AM, chose to retire and, subsequently,
Charles Manners and Mark Burnett were added to the Board.
Charles Manners was then elected Chairman,
Copies of this interim report will be made
available on the Company's website, www.strategicminerals.net.