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30
September 2024
Marula Mining
PLC
("Marula'' or the "Company")
Interim
Results
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Marula (AQSE: MARU
A2X: MARU), an African
focused mining and development company, is pleased to provide its
unaudited interim results for the six months ended 30 June 2024
(the "Period").
Chairman's Statement
The first half of the 2024 financial
year has continued at great pace and follows the
transformative growth in the Company's
battery metals projects located in South
Africa and East Africa that was achieved in the
previous 12 months in 2023.
Significant developments were
achieved across all areas of the business at both the Company's
operations and exploration and development projects in South
Africa, Tanzania and Kenya, and also at the corporate level, with
increased funding commitments made by AUO Commercial Brokerage LLC
("AUO") from £3.75 million to up to £8.53
million under the investment and co-development partnership with Q Global
Commodities Group ("Q Global"), that was approved by shareholders
during the Period.
With this funding commitment from
AUO, the Company was able to significantly strengthen its executive
management team and further expand its portfolio of battery metals
projects, with new graphite licenses secured at the Nyorinyori and
NyoriGreen Graphite Projects in Tanzania ("Nyorinyori" and
"NyoriGreen"), an agreement to invest in the Larisoro Manganese
Mine in Kenya ("Larisoro"), and budgets approved for the next phase
of exploration and development work at the Kinusi Copper Mine in
Tanzania ("Kinusi").
Major progress was made in the
mining and processing operations at the Blesberg Lithium and
Tantalum Mine in South Africa ("Blesberg"), with offtake agreements
secured for the spodumene ore following a previous successful trial
shipment of high-grade spodumene ore to a Chinese based electric
battery manufacturer. In addition, the first of two XRF Ore
Sorters, a Rados SRF100-8 XRF Ore Sorter ("Rados Ore Sorter") was
successfully, installed, commissioned and operated at Blesberg.
With its artificial intelligence capabilities, the Rado Ore Sorter
demonstrated during the Period that it was able to continuously
improve and enhance the recovery, product mass split, sorting
aspects and optimisation of the processing technique.
With the growth in its mining
operations and exploration and development projects in South Africa
and throughout East Africa, the Company was able to secure several
highly experienced and capable mining and geological staff to
strengthen its management teams in these regions. These key
appointments and its strong partners in Tanzania and Kenya have
allowed the Company to accelerate its projects in these countries
and in such a way as to ensure all stakeholders are actively
involved and will benefit from our activities.
During the Period, the Company had
anticipated completing both a new primary listing of its shares in
London and also a number of secondary listings in South Africa and
Kenya to enhance accessibility to all our investors and
stakeholders. A secondary listing was successfully completed
on A2X Proprietary Limited, an independent
stock exchange in South Africa and a further planned
listing on the Johannesburg Stock Exchange is planned in Q4 2024
when the Company also anticipates completing a secondary listing on
the Nairobi Securities Exchange in Kenya.
Financial Overview
During the Period, the Company saw
its total assets increase by almost 20% from 31 December
2023.
The operating loss after taxation
for the 6-month period to 30 June 2024 was £947,000, an approximately 33% reduction of the £1,422,000
operating loss after taxation for the corresponding period in
2023.
The basic loss per share from
continuing operations was 0.789 pence, an
approximately 40% reduction of the 1.326
pence loss per share for the corresponding
period in 2023.
During the Period, the Company's
shareholders approved the investment and
co-development partnership with AUO, under which committed funding
of up to £8.53 million is to be made available to the
Company.
An amount of approximately £2.0
million of the £8.53 million has been advanced to the Company by
AUO up to the end of the Period and approximately £6.5 million
remains available for the Company to utilise across its battery
metals projects in South Africa and East Africa.
Outlook
We are pleased to present Marula
interim results for the first half of 2024, a period marked by
significant progress and milestones across our expanding portfolio.
The Company has made great strides in positioning itself as a key
player in the battery metals and mining sectors. This
transformational period has seen us strengthen our management team,
solidify community relations, and acquire new projects, all of
which have contributed to Marula's continued growth.
One of the most notable achievements
during this period was the progress at Blesberg with commissioning
of the Rados Ore Sorter and subsequent signing of a long-term
offtake agreement with Fujax UK Ltd for spodumene ore and
concentrate. This was followed by the granting of Blesberg's mining
permit, which will allow the Company to proceed with plans to
expand the current stockpile re-processing operations to include
the development of a large-scale, conventional open-pit mining
operation.
Our Tanzanian graphite projects,
including Nyorinyori, NyoriGreen and Bagamoyo, continue to
demonstrate exceptional potential. We are focused on advancing
these assets through further exploration and community engagement,
with a clear path towards resource definition and eventual
production. Assay results at both projects highlight high-grade
graphite mineralisation, crucial for our growth in the electric
vehicle and energy storage sectors.
Our operational capacity has been
significantly strengthened through key appointments, ensuring that
we are well-equipped to manage our expanding projects while
maintaining our focus on operational excellence.
Marula's investment in Kenya also
marks a significant milestone, positioning the Company as a key
player in the battery metals supply chain as we work towards
increasing manganese ore production at Larisoro mine and export to
international markets.
Our partnership with QGC and its
Dubai-based entity AUO, continues to yield positive results, with
the approvals received from shareholders for the increased £8.53
million investment and co-development agreement. Having secured
such substantial funding to accelerate the development of our
battery metals projects, ensures we have the necessary capital to
deliver on our growth ambitions.
As we look ahead to the remainder of
2024 and beyond, the Company is well-positioned to continue its
strong growth trajectory across all its operations. With the
significant progress made in the past six months, we expect further
advancements in both our existing projects and new acquisitions,
bolstering our portfolio of high-grade battery metals and critical
minerals.
Our focus remains on maintaining
this momentum, increasing production, and driving exploration
across all our key projects. The strategic initiatives and
partnerships we have implemented are already delivering results,
and we are confident that Marula is well-positioned to capitalise
on the growing global demand for battery metals.
On behalf of the Board, I would like
to extend my sincere thanks to our dedicated management team,
employees, partners, and shareholders for their continued support.
The future looks bright for Marula , and we are excited about the
opportunities that lie ahead.
Richard Lloyd
FIMMM FGS
Chairman
30 September 2024
For further information, please
visit www.marulamining.co.uk
or contact:
The Directors of Marula are
responsible for the contents of this announcement. This
announcement contains inside information for the purposes
of UK Market Abuse Regulation.
For enquiries contact:
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Marula Mining PLC
Jason Brewer,
Chief Executive Officer
Faith Kinyanjui
Mumbi
Investor Relations
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Email :
jason@marulamining.com
Email : info@marulamining.com
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AQSE Corporate Adviser
Cairn Financial Advisers LLP,
Liam Murray / Ludovico Lazzaretti
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+44 (0)20 7213 0880
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Broker
Peterhouse Capital
Limited
Charles Goodfellow / Duncan
Vasey
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+44 (0) 20 7469
0930
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Financial PR and IR
BlytheRay
Tim Blythe / Megan Ray / Said
Izagaren
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+44 (0)20 7138 3204
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A2X
Advisor
AcaciaCap Advisors Proprietary Limited
Michelle Krastanov
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+27 (11) 480 8500
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1.
GENERAL INFORMATION
Marula Mining Plc (the "Company") is
a company registered in England and Wales. The condensed
consolidated interim financial statements ("interim financial
statements") of the Company for the six months ended 30 June 2024
comprise the results of the Company and its subsidiaries (together
referred to as the "Group") and have been prepared in accordance
with the Aquis Stock Exchange Growth Market Rules for Issuers. As
permitted, the Company has chosen not to adopt IAS 34 "Interim
Financial Statement" in preparing these interim financial
statements.
The interim financial information
for the period 1 January 2024 to 30 June 2024 is unaudited. In the
opinion of the Directors the interim financial statements for the
period presents fairly the financial position, and results from
operations and cash flows for the period in conformity with the
generally accepted accounting principles consistently applied. The
interim financial statements incorporate unaudited comparative
figures for the interim period 1 January 2023 to 30 June 2023 and
extracts from the audited financial statements for the year to 31
December 2023.
The financial information contained
in this interim report does not constitute statutory accounts as
defined by section 435 of the Companies Act 2006.
The comparatives for the full year
ended 31 December 2023 are not the Company's full statutory
accounts for that year. A copy of the statutory accounts for that
year has been delivered to the Registrar of Companies. The
auditor's report on those financial statements was unqualified but
did include a reference to the uncertainties surrounding going
concern, to which the auditors drew attention by way of emphasis of
matter and did not contain a statement under s498 (2) - (3) of
Companies Act 2006. The interim report has not been audited or
reviewed by the Company's auditor. The key risks and uncertainties
and critical accountancy estimates remain unchanged from 31
December 2023 and the accountancy policies adopted are consistent
with those used in the preparation of its financial statements for
the year ended 31 December 2023.
2.
TAXATION
No current taxation has been
provided due to losses in the period.
3.
LOSS PER SHARE
The basic loss per share is derived
by dividing the loss for the period attributable to ordinary
shareholders by the weighted average number of shares in
issue.
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Unaudited
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Unaudited
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30 Jun 2024
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30 Jun 2023
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Loss for the period
(£'000)
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(1,366)
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(1,512)
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Weighted average number of
shares
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173,162,778
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114,064,127
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Basic and dilutive earnings per
share - pence
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(0.789)
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(1.326p)
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Diluted earnings per share amounts
are calculated by dividing the net result attributable to ordinary
equity holders after adjustments for instruments that dilute basic
earnings per share by the weighted average of ordinary shares
outstanding during the period (adjusted for the effects of dilutive
instruments). For the periods ended 30 June 2024 and 30 June 2023,
as the Group was loss making the effect of any share options is
anti-dilutive such that the diluted EPS figure is equivalent to the
basic EPS figure.
4.
EXPLORATION ASSET
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Unaudited
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Audited
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30 June
2024
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31
Dec
2023
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£'000
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£'000
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Opening balance
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3,670
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2,454
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Additions
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1,204
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1,331
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Foreign exchange
differences
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14
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(115)
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Closing balance
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4,888
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3,670
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Exploration and evaluation assets
relate specifically to mining licenses and commercial interests
held by Marula Mining PLC and its subsidiaries. The Group currently
operates in 5 areas of interest via its subsidiaries or commercial
interests. They are:
· Blesberg Lithium and Tantalum Mine (South Africa);
· Nkowomba hill Niobium and Tantalum project (
Zambia);
· Bagamoyo Graphite Mine ( Tanzania);
· Kinusi
Copper Mine ( Tanzania);
· Nyorinori Graphite Project ( Tanzania);
· NyoriGreen Graphite Project ( Tanzania);
· Larisoro Manganese project (Kenya)
The value of the Groups interest in
exploration expenditure is dependent upon:
· the continuance of the consolidated entity's rights to tenure
of the areas of interest;
· the results of future exploration; and
· the recoupment of costs through successful development and
exploitation of the areas of interest, or alternatively, by their
sale.
All costs relating to exploration
have been capitalized.
Access rights to Nkombwa Hill
In the 2022 financial year, the
Company secured a 23.75% interest in Xram Traws Limited
and the Nkombwa Hill Project which lies within the boundaries of
the licence. A Large Scale Exploration License, 27977-HQ-LEL,
was awarded to Xram Traws Mining Limited on 28 December 2020
and is valid and enforceable for a period of 4 years
from December 2021 and then renewed for a further 4 years and
2 years respectively.
In 2022 the Group did not commence
any exploration activities on the Nkombwa Hill Project, given the
acquisition of its interest in the project was only completed late
in the year and the Group's focus was on the development of the
Blesberg Lithium and Tantalum Project in South Africa.
In H1 2023, no exploration
activities were able to be undertaken as a result of a dispute with
the Ministry of Mines in respect to access and ownership of
the 27977-HQ-LEL license.
This follows a series
of favourable and uncontested appeal and rulings in
Zambia by the Courts in H1 2023 which the Board of Directors
believe will allow the Company to have full and unfettered
access to the Nkombwa Hill Project. As at 30 June 2024
the Group has not yet received a response from the Ministry of
Mines
5.
TRADE AND OTHER RECEIVABLES
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Unaudited
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Audited
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30 June
2024
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31
Dec
2023
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£'000
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£'000
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Current
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Prepayments
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-
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19
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Other receivables
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122
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55
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VAT
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362
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156
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Mining
deposit
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54
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44
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538
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276
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6.
TRADE AND OTHER PAYABLES
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Unaudited
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Audited
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30 June
2024
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31
Dec
2023
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£'000
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£'000
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Trade payables
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1,425
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914
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Accruals and other
creditors
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1,274
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685
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Shares to issue
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1,541
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1,421
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4,240
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3,020
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7.
POST REPORTING DATE EVENTS
On 9 January 2024 the Company
announced it had received notification for the exercise of warrants
over 375,000 new ordinary shares in the Company at an exercise
price of 4 pence per share providing the Company with proceeds of
£15,000.
On 10 January 2024 the Company
announced it had received notification for the exercise of warrants
over 50,000 new ordinary shares in the Company at an exercise price
of 4 pence per share.
On 15 January 2024 it was announced
that seven new Mining License Applications collectively made by
Takela Mining Tanzania Limited and NyoriGreen Mining Limited at the
Nyorinyori Graphite Project ("Nyorinyori") and the NyoriGreen
Graphite Project located in Tanzania have been granted.
Upfront consideration of
US$25,000 per license is being made to TMT and NML, which has been
satisfied through the issue, in aggregate, of 1,050,000 new
ordinary shares in the Company at a price of 13.5 pence per new
ordinary share ("Consideration Shares"). TMT have been issued
450,000 Consideration Shares for the 3 new mining licenses granted
at Nyorinyori. NML have been issued 600,000 Consideration
Shares for the 4 new mining licenses granted at
NyoriGreen.
On 23 January 2024 the Company
announced it had received notification for the exercise of warrants
over 162,500 new ordinary shares in the Company at an exercise
price of 4 pence per share providing the Company with proceeds of
£6,500.
On 29 January 2024 the Company
announced it had received notification for the exercise of warrants
over 50,000 new ordinary shares in the Company at an exercise price
of 4 pence per share providing the Company with proceeds of
£2,000.
On 8 February 2024 the Company
announced it had entered into an addendum to the £3,750,000
conditional subscription agreement with K2020273872 (South Africa)
Proprietary Limited (the "Subscription Agreement"). K2020273872 is
a wholly owned subsidiary of Q Global.
On 1 March 2024 the Company has
signed a binding terms sheet ("Term Sheet") with Kenyan manganese
mine operator Gems and Industrial Minerals Limited ("GIM") for a
commercial interest in the Larisoro Manganese Mine located in
Samburu County in Northern Kenya. On signing the Company has
agreed to pay GIM and its nominees a sum of £200,000 to be
satisfied in new ordinary shares or in cash. A further £300,000
will be payable to GIM on completion of the initial exploration
program and a final payment of £750,000 will become payable on
achieving 50,000 tonnes of commercial sales of manganese
ore.
On 12 March 2024 NyoriGreen Mining
Limited the Company's partner at the NyoriGreen Graphite Project
("in Tanzania, made eight new Mining License and one new
Prospecting License applications for a total consideration of
$25,000 USD per license.
On 19 March 2024 it was announced
that the Group signed a long term offtake agreement for its
Blesberg site. The agreement is based on the sale and
purchase of 100% of Blesberg's production of spodumene ore and
concentrate to Fujax through to 31 December 2026, with a minimum of
50,000 tonnes ("t") at a grade of 6.00% lithium ("Li2O") (minimum
5.50% Li2O) to be delivered during this period and with an option
to extend by a further three years thereafter.
On 21 March 2024 the
Company announced it had received
notification for the exercise of warrants
over 125,000 new ordinary shares in the Company at an exercise
price of 4 pence per share (the "Warrant Shares"), providing the
Company with proceeds of £5,000.
On 12 April 2024 as announced on 17
February 2023, upon the completion of the initial exploration
program, Marula is required to complete a share-based payment of
£100,000 to TMT through the issue of 799,361 new ordinary shares at
a price of 12.51p, which is based on the 30-day volume-weighted
average price ("VWAP") of the Company. The Company will also
complete a share-based payment of £250,000 to NML through the issue
of 1,998,401 new ordinary shares at the VWAP of 12.51p, as
announced on 28 September 2023. In aggregate 2,797,762 new ordinary
shares have been issued at a price of 12.51p per share.
On 16 April 2024, the Company
received notification for the exercise of warrants over 412,500 new
ordinary shares in the Company at an exercise price of 4 pence per
share, providing the Company with proceeds of £16,500.
On 23 April 2024 it was announced
that the Company was granted 8 additional graphite licenses.
Upfront consideration of US$25,000 per license is being made for
these New Licenses, which, consistent with the commercial terms as
announced on 15 January 2024, will be satisfied through the issue,
in aggregate, of 1,050,000 new ordinary shares in the Company at a
price of 13.5 pence per new ordinary shares.
On 24 April 2024 the Company
announced it had received notification for the exercise of warrants
over 300,000 new ordinary shares in the Company at an exercise
price of 4 pence per share (the "Warrant Shares"), providing the
Company with proceeds of £12,000.
On 10 June 2024 the Company
announced it had received notification for the exercise of warrants
over 500,000 new ordinary shares in the Company at an exercise
price of 4 pence per share providing the Company with
proceeds of £20,000.
On 10 July 2024 the Company
announced that its subsidiary, Muchai Mining South Africa, has
signed a binding term sheet with Mansena Cobalt to acquire a 51%
stake in Mansena Kruisrivier Cobalt. Under the agreement, Marula
will issue £100,000 worth of shares and make a £100,000 cash
payment upon completion of due diligence. Additionally, Marula will
cover the full cost of an updated bankable feasibility study and
pay a monthly management fee of ZAR100,000 to Mansena Cobalt.
Within 12 months or upon a decision to mine, Marula will issue
another £200,000 in shares and pay US$1.7 million in
cash.
On 11 July 2024 it was announced
that the Company had signed a binding term sheet to acquire
80% stake in Agarwal Metals and Ores Limited, owner of Kilifi
Manganese Processing Plant in Kenya. Initial consideration is
£100,000 cash and £500,000 shares upfront with a final
cash payment of £2,000,000 and issue a further £500,000 worth of
new ordinary shares at an issue price of 10 pence per
share.
On 19 July 2024 it was announced
that the Company has signed a formal Share Sale Agreement to
acquire 100% of the shareholding in South African mining and
exploration company Northern Cape Lithium and Tungsten (Pty)
Limited. Under the commercial terms of the Agreement, the Company
will now make a cash payment of approximately £125,000
(ZAR3,000,000) to the existing NCLT shareholders, and on or before
31 July 2024 and 30 September 2024 make two further payments each
of £625,000 (ZAR15,000,000) payable at the Company's election in
cash or through the issue of new ordinary shares in the
Company.
On 1 August 2024 the Company's
wholly owned subsidiary, Muchai Mining Kenya Limited ("MMK"), has
entered into a Manganese Ore Supply Agreement ("Ore Agreement")
with Kenyan incorporated, Kitmin Holdings Limited ("Kitmin"). The
Ore Agreement is for an initial period from 1 August 2024 to 31
December 2026 and may be extended by a further three years
thereafter. Kitmin will be responsible for the supply and delivery
of a minimum 10,000 tonnes per month ("tpm") of manganese ore at a
minimum grade of 20% manganese ("Mn"), to the Kilifi Manganese
Processing Plant (the "Kilifi Plant").
On 2 August 2024 the Company
announced it has acquired an Ore Sorter and will soon be
transported to Springbok in the Northern Cape for maintenance and
refurbishment before installation at Blesberg. The Company has also
secured ZAR 7 million (£300,000) through the AUO Commercial
Brokerage LLC Subscription Agreement to cover expenses related to
the Ore Sorter, issuing 8,007,664 new shares at 3.75 pence
each.
On 2 August 2024 the Group was
awarded a Mining Permit for its Blesberg site, which is valid for a
period of two years until 24 May 2026 and extends over five
hectares, allows for development and open pit mining of lithium,
tantalum and niobium ores and feldspar at Blesberg, and is in
addition to the already approved stockpile re-processing
operations.
On 5 August 2024 the Company
announced the signing of a share sale and purchase agreement for
the acquisition of an 80% stake in Agarwal Metals and Ores Limited
(AMO), a Kenyan mineral processing company. AMO owns the Kilifi
Manganese Processing Plant, located 60 kilometres from the Port of
Mombasa in Kilifi County, Kenya. The plant, on 1.31 hectares of
freehold land, is equipped with various processing equipment for
manganese ore. The agreement replaces a previous terms sheet from
July 2024, with Marula set to transfer a final cash payment of £2
million from AUO Commercial Brokerage LLC and the Company issued
5,000,000 new shares to AMO's major shareholder.
On 28 August 2024 it was announced
that the Group had secured two manganese ore supply agreements for
the Kilifi Manganese Processing Plant in Kenya. The first agreement
involves receiving 30,000 tonnes of manganese ore with a minimum
grade of 24% over six months, with the possibility of further
deliveries. The second agreement provides for monthly deliveries of
5,000 tonnes of ore, also with a minimum 24% manganese content, for
an initial period of one year, with the option to extend for an
additional two years. Marula will handle mining, screening, and
transportation of the ore.
There have been no further
subsequent events.
Caution regarding forward looking
statements
This announcement has been prepared for information purposes
only.
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as ''believe'',
''could'', "should" ''envisage'', ''estimate'', ''intend'',
''may'', ''plan'', ''potentially'', "expect", ''will'' or the
negative of those, variations or comparable expressions, including
references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current
expectations and assumptions regarding the Company's future growth,
results of operations, performance, future capital and other
expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on
information currently available to the Directors.