TIDMKZG
RNS Number : 5396U
Kazera Global PLC
29 March 2023
29 March 2023
Kazera Global plc ('Kazera' or 'the Company')
Interim Results
Kazera Global plc, the AIM-quoted investment company, announce s
its unaudited Interim Results for the six months ended 31 December
2022.
Highlights
-- Receipt of mining permit for Walviskop Heavy Mineral Sands (HMS) Project
-- Commenced initial production of HMS in December 2022
-- Diamond mine pan plant installed and commissioned at Alexander Bay Diamond Project
-- Ongoing disposal of African Tantalum (Pty) Ltd ('Aftan') for cash consideration of US$13m
-- Cash at 27 March 2023 of GBP1,258k
Dennis Edmonds, CEO of Kazera Global, said: "We remain committed
to strengthening our position as a well-funded, commodity diverse,
mining investment company, and developing early-stage assets
towards meaningful cash flow and resource realisation.
"Accordingly, towards the end of the period under review, we
were delighted to announce the disposal of Aftan to Hebei Xinjian
Construction ('Xinjian') for US$13m cash payable in several
tranches to December 2023. Notably, Kazera is retaining the right
to receive a debenture payment equivalent to 2.5% of gross sales of
produced lithium and tantalum for the life of the Tantalite Valley
Mine, and 100% ownership remains with us until Kazera is paid in
full. In the interim, all costs are carried by Xinjian.
"This first realisation of returns from an investment is in line
with our strategy and allows us to invest in our other assets
without the need for additional capital raising, namely Whale Head
Minerals (Pty) Ltd, which operates the Walviskop Heavy Mineral
Sands Project ('Walviskop'), and Deep Blue Minerals (Pty) Ltd,
which operates the Alexander Bay Diamond Project.
"Walviskop is a five-hectare beach sand deposit with a minimum
1.5Mt at 49.9% purity, predominantly ilmenite and garnet, which
will be replenished by wave action; zircon and rutile are also
present but have not been included in the modelling. Having placed
an order for a screening plant to separate out the silica from the
HMS and to create a saleable HMS concentrate, we expect the project
to generate positive cashflow within the next six months and
produce circa 6Kt HMS per month, achieving an estimated gross
profit in excess of US$300,000 per month at current prices.
"Progress is also being made at the Alexander Bay Diamond
Project, which is located within the 80km long Alexkor diamond
fields and lying between two historic De Beers operations. With an
estimated circa 2 million carats left in the tenement, mining is
undertaken on a sub-contract basis from Alexkor, a government owned
entity, which has the rights to all the diamonds in the area.
During the period, Kazera undertook the development of a new
processing facility, which is now complete and capable of handling
70 tons per hour of raw material.
"Post period end, we were delighted to welcome a new strategic
investor to our register, AMS, which has extensive experience in
mining and infrastructure projects. Having agreed to acquire a
29.9% interest in the Company at a 53% premium to the price per
Ordinary Share immediately prior to the suspension of Kazera's
trading on AIM, AMS clearly recognises the value of your
company.
"Looking ahead, with cash in hand, a supportive strategic
investor in AMS, and clear path towards increasing scalable
production at Walviskop providing us with a highly cash generative
platform with which to grow the Company further, I remain highly
optimistic for 2023 and beyond.
"Finally, I would like to take this opportunity to thank the
Board and management team for their continued hard work and support
and look forward to providing regular updates on our progress as we
focus on realising the potential of our investments and generating
value for our shareholders."
Further payment from Xinjian
Since its announcement on 16 March 2023, the Company has
received a further proof of payment of US$500k from Xinjian towards
its purchase of Kazera's interest in Aftan, which is expected to be
received imminently; the sale remains on track to complete in
December 2023. This amount is not included in the calculation of
the group's cash balance as stated above, of GBP1,258k.
Update re new strategic shareholder
Further to the Company's announcement on 16 March 2023, in which
it was stated that, "The Company has been advised that the purchase
will take place in a series of tranches during 2023, with all
voting rights passing to the purchaser on payment of the first
tranche.", the Company has since been advised that voting rights
will pass to the purchaser on payment of the second tranche, not
the first tranche as previously stated. Any further updates
relating to the changes in shareholdings will be announced in
accordance with the AIM Rules upon receipt of any notification in
accordance with the Disclosure and Transparency Rules.
For further information on the Company, visit: www. kazeraglobal
.com .
Kazera Global plc kazera@stbridespartners.co.uk
Dennis Edmonds, CEO
finnCap (Nominated Adviser and Joint broker) Tel: +44 (0)207 220 0500
Christopher Raggett / Fergus Sullivan (Corporate Finance)
------------------------------
St Brides Partners (Financial PR) kazera@stbridespartners.co.uk
Paul Dulieu / Isabel de Salis / Will Turner
------------------------------
Condensed Consolidated Statement of Comprehensive Income
for the six-months ended 31 December 2022
Six months Six months
ended ended
31 December 31 December
2022 2021
Notes Unaudited Unaudited
Continuing operations GBP'000 GBP'000
----------------------------------------- ------ ------------- -------------
Revenue 50 100
Cost of sales - (100)
----------------------------------------- ------ ------------- -------------
Gross profit 50 -
Pre-production expenses - (72)
Administrative expenses (531) (529)
----------------------------------------- ------ ------------- -------------
Operating loss before taxation (481) (601)
Income tax - -
----------------------------------------- ------ ------------- -------------
Loss for the period (481) (601)
----------------------------------------- ------ ------------- -------------
Total comprehensive income
----------------------------------------- ------ ------------- -------------
Loss attributable to owners of
the Company (496) (589)
Non-controlling interests 15 (12)
(481) (601)
----------------------------------------- ------ ------------- -------------
Other comprehensive income
Exchange gains/(losses) on translation
of foreign operations 261 (210)
----------------------------------------- ------ ------------- -------------
Other comprehensive income for
the period, net of tax 261 (210)
Total comprehensive income attributable
to the owners of the Company (235) (799)
Earnings per share:
Basic and diluted loss per share
(pence) 3 (0.05)p (0.08)p
----------------------------------------- ------ ------------- -------------
Condensed Consolidated Statement of Financial Position
As at 31 December 2022
31 December
2022 30 June 2022
Notes Unaudited Audited
GBP'000 GBP'000
------------------------------- ------ ------------ -------------
Non-current assets
Mines under construction 2,912 2,961
Property, plant and equipment 741 796
Total non-current assets 3,653 3,757
------------------------------- ------ ------------ -------------
Current assets
Trade and other receivables 466 279
Cash and cash equivalents 595 637
------------------------------- ------ ------------ -------------
Current assets 1,061 916
------------------------------- ------ ------------ -------------
Total assets 4,714 4,673
------------------------------- ------ ------------ -------------
Current liabilities
Trade and other payables 4 1,718 652
Total current liabilities 1,718 652
------------------------------- ------ ------------ -------------
Non-current liabilities
Other payables - 826
Provisions 55 54
------------------------------- ------ ------------ -------------
Total non-current liabilities 55 880
------------------------------- ------ ------------ -------------
Total liabilities 1,771 1,532
------------------------------- ------ ------------ -------------
Net assets 2,942 3,141
------------------------------- ------ ------------ -------------
Equity attributable to owners
of the parent
Share Capital 3,516 3,516
Share Premium 17,556 17,556
Capital redemption reserve 2,077 2,077
Share-based payments reserve 463 443
Foreign exchange reserve (233) (494)
Retained Earnings (20,403) (19,908)
------------------------------- ------ ------------ -------------
Equity attributable to owners
of the Company 2,976 3,190
------------------------------- ------ ------------ -------------
Non-controlling interests (34) (49)
------------------------------- ------ ------------ -------------
Total equity 2,942 3,141
------------------------------- ------ ------------ -------------
Condensed Consolidated Statement of Changes in Equity
for the six-month period ended 31 December 2022
Capital Share-based Foreign Equity Non-controlling
Share Share redemption payment exchange Retained attributable interests
Capital Premium reserve reserve reserve earnings to owners GBP'000 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 equity
Unaudited GBP'000
--------------- --------- --------- ----------- ------------ --------- ---------- ------------- ---------------- ---------
1 July 2021 3,279 15,863 2,077 337 (477) (17,917) 3,162 (29) 3,133
Loss for the
period - - - - - (589) (589) (12) (601)
Other
comprehensive
income:
Exchange
movement
on
translation
of foreign
operations - - - - (210) - (210) - (210)
--------------- --------- --------- ----------- ------------ --------- ---------- ------------- ---------------- ---------
Total
comprehensive
income for
the
period - - - - (210) (589) (799) (12) (811)
Transactions
with owners:
Issue of share
capital 61 454 - - - - 515 - 515
Share-based
payment
charges - - - 55 - - 55 - 55
--------------- --------- --------- ----------- ------------ --------- ---------- ------------- ---------------- ---------
Total
transactions
with owners,
recognised
directly
in equity 61 454 - 55 - - 570 - 570
--------------- --------- --------- ----------- ------------ --------- ---------- ------------- ---------------- ---------
Balance at 31
December 2021 3,340 16,317 2,077 392 (687) (18,506) 2,933 (41) 2,892
--------------- --------- --------- ----------- ------------ --------- ---------- ------------- ---------------- ---------
Capital Share-based Foreign Equity Non-controlling
Share Share redemption payment exchange Retained attributable interests
Capital Premium reserve reserve reserve earnings to owners GBP'000 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 equity
Unaudited GBP'000
--------------- --------- --------- ----------- ------------ --------- ----------- ------------- ---------------- ---------
1 July 2022 3,516 17,556 2,077 443 (494) (19,908) 3,190 (49) 3,141
Loss for the
period - - - - - (496) (496) 15 (481)
Other
comprehensive
income:
Exchange
movement
on
translation
of foreign
operations - - - - 261 - 261 - 261
--------------- --------- --------- ----------- ------------ --------- ----------- ------------- ---------------- ---------
Total
comprehensive
income for
the
period - - - - 261 (496) (235) 15 (220)
Transactions
with owners:
Share-based
payment
charges - - - 20 - - 20 - 20
--------------- --------- --------- ----------- ------------ --------- ----------- ------------- ---------------- ---------
Total
transactions
with owners,
recognised
directly
in equity - - - 20 - - 20 - 20
--------------- --------- --------- ----------- ------------ --------- ----------- ------------- ---------------- ---------
Balance at 31
December 2022 3,516 17,556 2,077 463 (233) (20,403) 2,976 (34) 2,942
--------------- --------- --------- ----------- ------------ --------- ----------- ------------- ---------------- ---------
Condensed Consolidated Statement of Cash Flows
for the six-month period ended 31 December 2022
Six months Six months
to to
31 December 31 December
2022 2021
Unaudited Unaudited
GBP'000 GBP'000
------------------------------------------------------ ------------- -------------
Cash flows from operating activities
Loss before taxation (481) (601)
Depreciation 63 65
Net foreign exchange (378) (143)
Share-based payments charge and other non-cash
items 20 55
Net cashflow before changes in working capital (776) (624)
Increase in receivables (186) (24)
Increase in payables 243 427
Net cash used in operating activities (719) (220)
------------------------------------------------------- ------------- -------------
Cash flows from investing activities
Development costs (26) (259)
Proceeds from proposed sale of investment 828 -
Net cash generated from/(used) in investing
activities 802 (259)
------------------------------------------------------- ------------- -------------
Cash flows from financing activities
Issue of share capital - 515
Repayment of borrowings (125) -
Net cash (used in)/generated from financing
activities (125) 515
------------------------------------------------------- ------------- -------------
Net (decrease)/increase in cash and cash equivalents
during the period (42) 36
Cash at the beginning of period 637 47
Cash and cash equivalents at the end of the
period 595 83
------------------------------------------------------- ------------- -------------
Notes to the condensed consolidated interim financial
information
1 GENERAL INFORMATION
Kazera is public limited company incorporated and domiciled in
the United Kingdom; its Ordinary shares are quoted on AIM of the
London Stock Exchange.
2 BASIS OF PREPARATION
The accounting policies, methods of computation and presentation
used in the preparation of the condensed consolidated interim
financial information are the same as those used in the Group's
audited financial statements for the year ended 30 June 2022. There
have been no changes to the reported figures as a result of any new
reporting standards or interpretations.
Basis of preparation
The condensed interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As
permitted, the Company has chosen not to adopt IAS 34 "Interim
Financial Statements" in preparing this interim financial
information. The condensed interim financial statements should be
read in conjunction with the annual financial statements for the
year ended 30 June 2022, which have been prepared in accordance
with international accounting standards in conformity with the
Companies Act 2006.
The financial information set out in this interim report is
unaudited and does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. The Company's statutory
financial statements for the period ended 30 June 2022, prepared
under international accounting standards in conformity with the
Companies Act 2006, have been filed with the Registrar of
Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under section 498 (2)
or (3) of the Companies Act 2006.
Comparatives
The Group has presented comparatives for the statement of
comprehensive income, statement of cash flows and statement of
changes in equity for the six months ended 31 December 2021; and a
statement of financial position as at 30 June 2022 in accordance
with the requirements of the AIM Rules for Companies.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Company's
medium-term performance and the factors that mitigate those risks
have not substantially changed from those set out in the Company's
2022 Annual Report and Financial Statements, a copy of which is
available on the Company's website, www.kazeraminerals.com .
Critical accounting estimates and judgements
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in the Company's 2022 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed during the interim period.
Going Concern
The financial position of the Group and cash flows as at 31
December 2022 are set out above. The Group meets its day-to-day
working capital and other funding requirements with its current
cash, raised through equity placings, revenue from its cash
generating assets, and the disposal of African Tantalum (Pty) Ltd.
On the basis of current financial projections (at least 12 months)
the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence, and meet
its liabilities as they fall due, for the foreseeable future.
Accordingly, the Directors consider it appropriate to adopt the
going concern basis in preparing this financial information.
3 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period.
Six months
Six months to to
31 December 31 December
2022 2021
GBP'000s GBP'000s
Loss from continuing operations attributable
to equity holders of the Company (496) (589)
Weighted average number of ordinary shares
in issue 937,164,911 744,005,591
---------------------------------------------- ---------------- --------------
Basic and fully diluted loss per share
from continuing operations (0.05)p (0.08)p
---------------------------------------------- ---------------- --------------
4 TRADE AND OTHER PAYABLES
On 20 December 2022, the Company announced that it had entered
into an agreement to sell its interest in 100% of the shares in
African Tantalum (Pty) Ltd to Hebei Xinjian Construction
("Xinjian") for a cash sum of USD13 million (the "Transaction");
included in trade and other payables are amounts totalling GBP828k
with respect to initial proceeds of the Transaction.
5 SHARE OPTIONS AND WARRANTS
The total number of share options and share warrants in issue as
at 30 June 2022 and 31 December 2022 were as follows:
Share warrants
Exercise Expiry At 30 June At 31 December
Price (p) Date 2022 Issued Exercised Lapsed 2022
2.00 27/12/2022 10,000,000 - - 10,000,000 -
2.00 27/12/2022 2,500,000 - - 2,500,000 -
2.00 04/01/2023 5,000,000 - - - 5,000,000
2.00 12/01/2023 325,000 - - - 325,000
2.00 31/01/2023 10,000,000 - - - 10,000,000
2.00 01/02/2023 6,000,000 - - - 6,000,000
1.00 31/05/2023 157,331,500 - - - 157,331,500
1.00(1) 30/10/2023 39,397,643 - - - 39,722,643
189,354,143 - - 12,500,000 179,179,143
(1) As required under the terms of the warrant instruments dated
27 October 2021, the exercise price of the warrants was adjusted to
match the price at which equity issue announced on 5 May 2022.
Share options
Exercise Expiry At 30 June At 31 December
Price (p) Date 2022 Issued Exercised Lapsed 2022
1.75 20/12/2022 3,300,000 - - 3,300,000 -
2.00 12/01/2023 1,500,000 - - - 1,500,000
1.75 20/12/2023 3,300,000 - - - 3,300,000
1.75 20/12/2024 3,400,000 - - - 3,400,000
1.00 03/06/2025 26,500,000 - - - 26,500,000
1.00 08/07/2027 - 3,000,000 3,000,000
1.00 18/07/2027 - 4,000,000 4,000,000
1.00 03/11/2027 - 1,500,000 - - 1,500,000
1.00 03/11/2027 - 15,000,000 15,000,000
----------- ----------- ----------- ----------- ---------- ---------- ---------------
36,500,000 23,500,000 - 3,300,000 56,700,000
6 EVENTS AFTER THE REPORTING PERIOD
On 14 March 2023, Odilon Kasongo Ilunga, resigned as a director
of the Company.
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