80 Mile
Plc / Ticker: 80M / Market: AIM / Sector: Mining
30 September 2024
80 Mile Plc ('80 Mile' or the
'Company')
Interim
Results
80 Mile Plc, the AIM, FSE listed,
and Pink-market traded, exploration company with projects in
Greenland and Finland, is pleased to announce its Interim Results
for the six months ended 30 June 2024 (the 'Period').
Highlights in H1 2024
· New
board installed in late 2023 following the resignation of Robert
Edwards (Chairman), Bo Moller Stensgaard (Executive Director) &
Peter Waugh (Non-executive).
· Appointment of experienced and well regarded executives Eric
Sondergaard, Troy Whittaker and Roderick McIllree with a mandate to
revitalise the Company's strategy.
· Company-wide review and restructure, resulting in a decrease
in full time employees from 14 to 3.
· Expansion of Corporate Strategy to include Industrial Gases
and Hydrocarbon.
· Raising of £1.2m through the issuance of new Ordinary Shares
to new and existing shareholders to support an expanded Corporate
Strategy.
· 2019
Dundas Mineral Resource Estimate reinstated as the control MRE for
the Project.
· Acquisition of Thule Copper, a historic sedimentary hosted
copper project via an approved application to expand the Dundas
licence area.
· Disko
ownership scheduled to increase to 51%, with both JV parties
re-iterating ongoing support for the project under the new
leadership.
· Initiated companywide review of projects with a focus on
previously unreleased and/or undiscovered historical
information.
· Proposed acquisition of White Flame Energy Ltd and the highly
prospective Jameson Land Basin Project, which was subsequently
approved by shareholders post-period end.
Post
Period
· Indications of naturally occurring helium and hydrogen and a
high concentrate Lithium brine at Outokumpu, Finland.
· Name
change to 80 Mile Plc approved by shareholders.
· Significant source rock discovery at Dundas Ilmenite
Project.
· Expanded engagement on Company projects with interested
parties.
· Raising gross proceeds of £1.75m through the issuance of
Ordinary Shares to new and existing shareholders.
Chairman's Statement
The first half of the year marked a
significant turning point for the Company as it emerged from a
challenging period of extended eroded shareholder value.
Significant exploration activities had largely halted, and the
Company faced considerable financial difficulties. Excessive
general and administrative costs had been maintained despite a near
total absence of meaningful fieldwork. The appointment of the new
board in December 2023 has injected fresh energy into the
organisation, refocusing efforts on revitalising the Company's
high-quality mineral assets. Notably the Outokumpu project was
identified as having significant naturally occurring industrial gas
potential (helium, hydrogen and argon), with work continuing
throughout the period.
A considerable amount of effort has
been placed on rebuilding and strengthening existing relationships
with our exploration and funding partners, and I am confident that
we are now well-positioned to leverage positive changes deployed by
the new management team.
After an in-depth assessment of the
2022 work programmes undertaken at Dundas, and consultations with
independent consultants, the Company announced the reinstatement of
the 2019 Mineral Resource Estimate at the Dundas Ilmenite Project.
The reinstatement was provided after serious issues regarding the
2022 drill programme were uncovered in an overall review of the
project, which were not distributed to the board at the
time.
The Company announced an expansion
of its Corporate Strategy to include the exploration and
development of helium, hydrogen, industrial gases and hydrocarbons,
reflecting a commitment to innovation and growth in the natural
resources sector, while maximising shareholder value. This shift
also acknowledges the rising global demand for helium and
industrial gases in crucial industries such as healthcare,
aerospace, and energy.
80 Mile Plc announced an update on
the Disko-Nuussuaq Ni-Cu-Co-PGE project in West Greenland, which
re-affirmed the results of the 2022 work programme, and the
appropriate path forward for the project. This update was supported
by the Company's joint venture partner KoBold Metals, who also
endorsed the change of management to unlock the potential of the
partnership.
The Company announced the
acquisition, via expansion of an existing licence, of the Thule
Copper Project. The licence expansion comes at no cost, leveraging
existing exploration credits for Dundas and is a result of an
extensive data review and analysis beginning in 2019. The expansion
covers historic and newly discovered copper showings, including the
Cominco Gossan which returned 1% Copper over 34m from outcropping
rock chip samples.
Post-period, the desktop studies on
Outokumpu concluded, and a market update was made having identified
what appear to be significant occurrences of industrial gas within
the license areas. The Company intends to deepen its understanding
of this potential in the coming months, with field activities
planned for imminent commencement. We have also received
considerable interest from peers, and discussions are ongoing to
explore potential value-creating opportunities, although no
definitive agreements have been reached at this stage.
In the post-period, the conditional
acquisition of White Flame Energy has further solidified the
Company's strategic shift towards industrial gases and liquid
hydrocarbons, with optimism about the potential value this
acquisition should unlock for shareholders.
Post-period, 80 Mile Plc made a
significant discovery of hard rock titanium mineralisation at the
Dundas Ilmenite Project. This represents the first systematic
assessment of the rock potential within the project's license area
and further underscores Dundas' potential as a world-class source
of high-grade titanium dioxide feedstock. Notably, 74 bedrock
samples returned an average of 11.12% ilmenite (5.2% TiO2), with
values consistently almost double those of the existing
JORC-compliant resource.
Looking ahead into the remainder of
2024, 80 Mile will continue to execute its new strategy, focussing
on the exploration and development of its projects, with the goal
of enhancing their value and, in turn, maximising returns for our
shareholders.
Financial
In January, we successfully raised
£1.2 million in new equity, primarily from existing shareholders,
to support our ongoing restructuring efforts. This funding has been
critical in enabling us to streamline operations, including the
necessary redundancies of non-essential staff accumulated over the
past two years. The raised capital was swiftly allocated to
securing the Company's asset register, reinstating the Mineral
Resource Estimate (MRE) for Dundas, and revitalising our existing
joint venture at Disko with KoBold Metals. Work on these
initiatives is progressing rapidly, and we anticipate providing
shareholders with updates in due course.
Currently, the Company is developing
a global exploration target for the Dundas area, which the current
management continues to view as a highly mineralised region with
significant potential for both copper and titanium.
Regarding the previous management
and board's decision to curtail activities at Dundas, we are
actively exploring legal avenues to address the decisions made,
particularly concerning the significant write-off of Dundas.
Additionally, we identified potential improprieties involving a
former senior exploration employee regarding Company assets during
the period, which we immediately took steps to remediate and
removed that employee from the Company.
Outlook
As we progress through 2024, 80 Mile
Plc is poised for a period of significant growth and strategic
development. Our immediate focus will be on advancing the Outokumpu
project in Finland, where we see substantial potential in
industrial gases, including helium, and naturally occurring
hydrogen. The recent conditional acquisition of White Flame Energy
further solidifies our commitment to this sector, and we are
optimistic about the value this will bring to our
shareholders.
In parallel, we will continue to
make progress at our Disko joint venture, where revitalisation
efforts are already yielding positive results. The Disko project
remains a cornerstone of our portfolio, and we anticipate further
advancements that will enhance its value proposition.
The Dundas Ilmenite Project in
Greenland remains an important asset and works at Dundas will
continue with a measured focus as we prioritise the significant
opportunities at Outokumpu, Disko, and Jameson Land
The successful restructuring efforts
and recent equity raise have provided the financial stability
needed to pursue these priorities. Our broadened corporate
strategy, now encompassing helium, industrial gases, and
hydrocarbons, aligns with our vision to diversify and strengthen
our portfolio, positioning us to meet the growing global demand in
these critical sectors.
We are confident that the steps we
are taking will lead to meaningful progress across our projects,
and we look forward to delivering value to our shareholders
throughout 2024 and beyond.
Michael Hutchinson
Non-Executive Chairman
Market Abuse Regulation (MAR) Disclosure
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.
For further information please visit
www.80mile.com or contact:
Eric Sondergaard
|
80 Mile Plc
|
enquiry@80mile.com
|
Ewan Leggat / Adam Cowl
|
SP Angel Corporate Finance LLP
(Nominated Adviser and Joint Broker)
|
+44 (0) 20 3470 0470
|
Harry Ansell / Katy Mitchell /
Andrew de Andrade
|
Zeus Capital Limited
(Joint Broker)
|
+44 (0) 20 3829 5000
|
Lewis Jones
|
Axis Capital Markets
Limited
(Joint Broker)
|
+44 (0) 203 026 0320
|
Tim Blythe / Megan Ray / Said
Izagaren
|
BlytheRay
(PR & IR Adviser)
|
+44 (0) 20 7138 3205
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
Notes
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
Continuing operations
|
|
|
|
Revenue
|
|
-
|
-
|
Cost of sales
|
|
(15,849)
|
(32,033)
|
Gross (loss)
|
|
(15,849)
|
(32,033)
|
Administration expenses
|
|
(942,465)
|
(932,792)
|
Other gains/(losses)
|
9
|
(1,004,439)
|
34,467
|
Foreign exchange
|
|
1,040
|
(70,355)
|
Operating loss
|
|
(1,961,713)
|
(1,000,713)
|
Other income
|
10
|
75,710
|
165,851
|
Net finance
income/(expense)
|
|
(1,404)
|
7,372
|
(Decrease)/increase in share of net
assets on joint venture
|
8
|
(115,657)
|
177,810
|
Share of losses from joint
venture
|
8
|
(9,160)
|
(9,455)
|
Loss before income tax
|
|
(2,012,224)
|
(659,135)
|
Income tax expense
|
|
-
|
-
|
Loss for the period
|
|
(2,012,224)
|
(659,135)
|
Other comprehensive income
|
|
|
|
Items that may be reclassified to profit or
loss
|
|
|
|
Currency translation
differences
|
|
(702,740)
|
(906,600)
|
Other comprehensive loss for the period
|
|
(2,714,964)
|
(1,565,735)
|
Total comprehensive loss for the period
|
|
(2,714,964)
|
(1,565,735)
|
Earnings per share from continuing operations attributable to
the equity owners of the parent
|
|
|
|
Basic and diluted (pence per
share)
|
11
|
(0.14)p
|
(0.06)p
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
Notes
|
30 June 2024
Unaudited
£
|
31 December 2023
Audited
£
|
30 June 2023
Unaudited
£
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
5
|
1,237,189
|
1,425,326
|
1,582,916
|
Intangible assets
|
6
|
30,996,161
|
31,237,336
|
33,740,931
|
Fair value through profit and loss
Equity Investments
|
7
|
593,750
|
1,656,250
|
-
|
Investments in Joint
Venture
|
8
|
4,615,888
|
4,740,705
|
4,609,875
|
|
|
37,442,988
|
39,059,617
|
39,933,722
|
Current assets
|
|
|
|
|
Trade and other
receivables
|
|
1,210,656
|
1,260,237
|
1,561,964
|
Cash and cash equivalents
|
|
224,980
|
200,700
|
80,964
|
|
|
1,435,636
|
1,460,937
|
1,642,928
|
Total assets
|
|
38,878,624
|
40,520,554
|
41,576,650
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Deferred tax liabilities
|
|
496,045
|
496,045
|
496,045
|
|
|
496,045
|
496,045
|
496,045
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
431,354
|
647,882
|
1,144,753
|
|
|
431,354
|
647,882
|
1,144,753
|
Total liabilities
|
|
927,399
|
1,143,927
|
1,640,798
|
Net
assets
|
|
37,951,225
|
39,376,627
|
39,935,852
|
Capital and reserves attributable to
equity holders of the Company
|
|
|
|
|
Share capital
|
|
7,537,676
|
7,506,658
|
7,493,002
|
Share premium
|
|
64,082,836
|
62,915,685
|
61,083,615
|
Shares to be issued
|
|
-
|
-
|
1,310,000
|
Other reserves
|
|
(7,140,185)
|
(6,528,838)
|
(6,541,770)
|
Retained losses
|
|
(26,529,102)
|
(24,516,878)
|
(23,408,995)
|
Total equity
|
|
37,951,225
|
39,376,627
|
39,935,852
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
|
Share
capital
£
|
Share
premium
£
|
Shares to be
issued
£
|
Other
reserves
£
|
Retained
losses
£
|
Total
£
|
Balance as at 1 January 2023
|
7,492,041
|
60,903,995
|
-
|
(5,635,169)
|
(22,749,860)
|
40,011,007
|
Loss for the period
|
-
|
-
|
-
|
-
|
(659,135)
|
(659,135)
|
Other comprehensive income for the year
|
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or
loss
|
|
|
|
|
|
|
Currency translation
differences
|
-
|
-
|
-
|
(906,600)
|
-
|
(906,600)
|
Total comprehensive income for the year
|
-
|
-
|
-
|
(906,600)
|
(659,135)
|
(1,565,735)
|
Proceeds from share
issues
|
580
|
-
|
-
|
-
|
-
|
580
|
Share based payment
|
380
|
179,620
|
10,000
|
-
|
-
|
190,000
|
Shares to be issued
|
-
|
-
|
1,300,000
|
-
|
-
|
1,300,000
|
Total transactions with owners, recognised in
equity
|
960
|
179,620
|
1,310,000
|
-
|
-
|
1,490,580
|
Balance as at 30 June 2023
|
7,493,002
|
61,083,615
|
1,310,000
|
(6,541,770)
|
(23,408,995)
|
39,935,852
|
|
|
|
|
|
|
|
Balance as at 1 January 2024
|
7,506,658
|
62,915,685
|
-
|
(6,528,838)
|
(24,516,878)
|
39,376,627
|
Loss for the period
|
-
|
-
|
-
|
-
|
(2,012,224)
|
(2,012,224)
|
Other comprehensive income for the year
|
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or
loss
|
|
|
|
|
|
|
Currency translation
differences
|
-
|
-
|
-
|
(702,740)
|
-
|
(702,740)
|
Total comprehensive income for the year
|
-
|
-
|
-
|
(702,740)
|
(2,012,224)
|
(2,714,964)
|
Proceeds from share
issues
|
30,000
|
1,096,500
|
-
|
-
|
-
|
1,126,500
|
Share based payment
|
1,018
|
70,651
|
-
|
-
|
-
|
71,669
|
Options issued
|
-
|
-
|
-
|
91,393
|
-
|
91,393
|
Total transactions with owners, recognised in
equity
|
31,018
|
1,167,151
|
-
|
91,393
|
-
|
1,289,562
|
Balance as at 30 June 2024
|
7,537,676
|
64,082,836
|
-
|
(7,140,185)
|
(26,529,102)
|
37,951,225
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
|
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
Cash flows from operating activities
|
|
|
|
Loss before taxation
|
|
(2,012,224)
|
(659,135)
|
Adjustments for:
|
|
|
|
Depreciation
|
|
162,586
|
178,286
|
Share based payments
|
|
71,669
|
180,000
|
Share options expense
|
|
91,393
|
-
|
Gain/(loss) on sale of property,
plant and equipment
|
|
(8,551)
|
4,706
|
Net finance
(costs)/income
|
|
1,404
|
(7,372)
|
Fair value through profit and loss
Equity Investments
|
7
|
1,062,500
|
-
|
Foreign exchange
loss/(gain)
|
|
-
|
(40,642)
|
Share of loss from JV
|
8
|
9,160
|
9,455
|
Decrease/(increase) in share of net
asset on joint venture
|
8
|
115,657
|
(148,543)
|
Decrease in trade and other
receivables
|
|
49,582
|
738,165
|
(Decrease)/Increase in trade and
other payables
|
|
(216,530)
|
621,438
|
Net
cash generated/(used in) from operations
|
|
(673,354)
|
876,358
|
Cash flows from investing activities
|
|
|
|
Purchase of property, plant and
equipment
|
|
-
|
(90,228)
|
Proceeds from sale of property,
plant and equipment
|
|
8,551
|
(49)
|
Interest received
|
|
1,002
|
6,378
|
Purchase of intangible
assets
|
|
(435,770)
|
(2,759,158)
|
Net
cash (used in) investing activities
|
|
(426,217)
|
(2,843,057)
|
Cash flows from financing activities
|
|
|
|
Proceeds from share
issues
|
|
1,200,000
|
580
|
Cost of share issues
|
|
(73,500)
|
-
|
Interest paid
|
|
(2,410)
|
(10)
|
Proceeds from borrowings
|
12
|
-
|
1,647,616
|
Repayment of borrowings
|
12
|
-
|
(1,601,973)
|
Net
cash used in financing activities
|
|
1,124,090
|
46,213
|
Net
increase/(decrease) in cash and cash
equivalents
|
|
24,519
|
(1,920,486)
|
Cash and cash equivalents at beginning of
period
|
|
200,700
|
1,996,957
|
Exchange gains on cash and cash
equivalents
|
|
(239)
|
4,493
|
Cash and cash equivalents at end of period
|
|
224,980
|
80,964
|
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1.
General Information
The principal activity of 80 Mile
Plc (the 'Company') and its subsidiaries (together the 'Group') is
the exploration and development of precious and base metals. The
Company's shares are listed on the AIM Market of the London Stock
Exchange ('AIM'), the Frankfurt Stock Exchange and the Pink-Market
exchange. The Company is incorporated and domiciled in the
UK.
The address of its registered office
is 6 Heddon Street, London, W1B 4BT.
2.
Basis of Preparation
The condensed consolidated 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 consolidated interim financial statements should be read
in conjunction with the annual financial statements for the year
ended 31 December 2023. The interim financial statements have been
prepared in accordance with UK adopted International Accounting
Standards.
The interim financial information
set out above does not constitute statutory accounts within the
meaning of the Companies Act 2006. It has been prepared on a going
concern basis in accordance with the recognition and measurement
criteria of UK adopted International Accounting
Standards.
Statutory financial statements for
the year ended 31 December 2023 were approved by the Board of
Directors on 28 June 2024 and delivered to the Registrar of
Companies. The report of the auditors on those financial statements
was unqualified with a material uncertainty related to going
concern.
Going concern
The Consolidated Financial
Statements have been prepared on a going concern basis. The Group's
business activities, together with the factors likely to affect its
future development, performance and position are set out in the
Chairman's Statement and the Strategic Report.
As at 30 June 2024, the Group had
cash and cash equivalents of £224,980, which did not include the
£1.75 million (gross) from the placing announced on 23 August 2024
and received post-period end. The Directors have prepared
cash flow forecasts to 30 September 2025, which take account of the
cost and operational structure of the Group and parent company,
planned exploration and evaluation expenditure, licence commitments
and working capital requirements. These forecasts indicate that the
Group and parent company's cash resources are not sufficient to
cover the projected expenditure for the period for a period of 12
months from the date of approval of these financial
statements. These forecasts indicate that the Group and
parent company, in order to meet their operational objectives, and
meets their expected liabilities as they fall due, will be required
to raise additional funds within the next 12 months.
In common with many exploration and
evaluation entities, the Company will need to raise further funds
within the next 12 months in order to meet its expected liabilities
as they fall due and progress the Group into definitive feasibility
and then into construction and eventual production of revenues. The
Directors are confident in the Company's ability to raise
additional funds as required, from existing and/or new investors,
within the next 12 months. The Company has demonstrated its access
to financial resources, as evidenced by the successful completion
of a Placing in January 2024 and August 2024 raising gross proceeds
of £1.2 million and £1.75 million, respectively.
Given the Group and parent company's
current cash position and its demonstrated ability to raise
capital, the Directors have a reasonable expectation that the Group
and parent company has adequate resources to continue in
operational existence for the foreseeable future.
Notwithstanding the above, these
circumstances indicate that a material uncertainty exists that may
cast significant doubt on the Group and parent company's ability to
continue as a going concern and, therefore, that the Group and
parent company may be unable to realise their assets or settle
their liabilities in the ordinary course of business. As a result
of their review, and despite the aforementioned material
uncertainty, the Directors have confidence in the Group and parent
company's forecasts and have a reasonable expectation that the
Group and parent company will continue in operational existence for
the going concern assessment period and have therefore used the
going concern basis in preparing these consolidated and parent
company financial statements.
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 2023 Annual Report and Financial Statements, a
copy of which is available on the Company's website:
www.80mile.com.
The key financial risks are liquidity risk, credit risk, interest
rate risk and fair value estimation.
Critical accounting estimates
The preparation of condensed
consolidated 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 Note 4 of the Group's 2023 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
Except as described below, the same
accounting policies, presentation and methods of computation have
been followed in these condensed consolidated interim financial
statements as were applied in the preparation of the Group's annual
financial statements for the year ended 31 December
2023.
3.1 Changes in accounting
policy and disclosures
(a) Accounting developments during 2024
The International Accounting
Standards Board (IASB) issued various amendments and revisions to
International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for
the period ended 30 June 2024 but did not result in any material
changes to the financial statements of the Group or
Company.
(b) New standards, amendments
and interpretations in issue but not yet effective or not yet
endorsed and not early adopted
Standards, amendments and
interpretations that are not yet effective and have not been early
adopted are as follows:
Standard
|
Impact on initial application
|
Effective date
|
IAS 21
|
Lack of Exchangeability - Amendments
to IAS 21 The Effects of Changes in Foreign Exchange
Rates
|
1 January 2025
|
The Group is evaluating the impact
of the new and amended standards above which are not expected to
have a material impact on the Group's results or shareholders'
funds.
4. Dividends
No dividend has been declared or
paid by the Company during the six months ended 30 June 2024 (2023:
£nil).
5. Property, plant and equipment
|
Software
£
|
Machinery &
equipment
£
|
Office
equipment
£
|
Total
£
|
Cost
|
|
|
|
|
As
at 1 January 2023
|
61,234
|
3,472,020
|
84,491
|
3,617,745
|
Additions
|
-
|
79,229
|
10,999
|
90,228
|
Disposals
|
(43,819)
|
(17,390)
|
(39,507)
|
(100,716)
|
Exchange Differences
|
-
|
(95,900)
|
(179)
|
(96,079)
|
As
at 30 June 2023
|
17,415
|
3,437,959
|
55,804
|
3,511,178
|
As
at 1 July 2023
|
17,415
|
3,437,959
|
55,804
|
3,511,178
|
Additions
|
-
|
8,586
|
2,426
|
11,012
|
Disposals
|
-
|
(87,341)
|
(6,032)
|
(93,373)
|
Exchange Differences
|
-
|
21,948
|
(2,487)
|
19,461
|
As
at 31 December 2023
|
17,415
|
3,381,152
|
49,711
|
3,448,278
|
As
at 1 January 2024
|
17,415
|
3,381,152
|
49,711
|
3,448,278
|
Additions
|
-
|
-
|
-
|
-
|
Disposals
|
-
|
(91,277)
|
-
|
(91,277)
|
Exchange Differences
|
-
|
(66,183)
|
(125)
|
(66,308)
|
As
at 30 June 2024
|
17,415
|
3,223,692
|
49,586
|
3,290,693
|
|
|
|
|
|
Depreciation
|
|
|
|
|
As
at 1 January 2023
|
53,816
|
1,780,426
|
65,166
|
1,899,408
|
Charge for the year
|
3,499
|
167,381
|
4,818
|
175,698
|
Disposals
|
(43,819)
|
(14,886)
|
(37,354)
|
(96,059)
|
Exchange differences
|
-
|
(50,785)
|
-
|
(50,785)
|
As
at 30 June 2023
|
13,496
|
1,882,136
|
32,630
|
1,928,262
|
As
at 1 July 2023
|
13,496
|
1,882,136
|
32,630
|
1,928,262
|
Charge for the year
|
1,938
|
165,938
|
2,686
|
170,562
|
Disposals
|
-
|
(81,481)
|
(6,032)
|
(87,513)
|
Exchange differences
|
-
|
11,641
|
-
|
11,641
|
As
at 31 December 2023
|
15,434
|
1,978,234
|
29,284
|
2,022,952
|
As
at 1 January 2024
|
15,434
|
1,978,234
|
29,284
|
2,022,952
|
Charge for the year
|
1,849
|
154,971
|
4,735
|
161,555
|
Disposals
|
-
|
(91,277)
|
-
|
(91,277)
|
Exchange differences
|
-
|
(39,726)
|
-
|
(39,726)
|
As
at 30 June 2024
|
17,283
|
2,002,202
|
34,019
|
2,053,504
|
|
|
|
|
|
Net
book value as at 30 June 2023
|
3,919
|
1,555,823
|
23,174
|
1,582,916
|
Net
book value as at 31 December 2023
|
1,981
|
1,402,918
|
20,427
|
1,425,326
|
Net
book value as at 30 June 2024
|
132
|
1,221,490
|
15,567
|
1,237,189
|
6.
Intangible Assets
Intangible assets comprise
exploration and evaluation costs and goodwill. Exploration and
evaluation costs comprise acquired and internally generated
assets.
Cost and Net Book Value
|
|
Exploration & evaluation
assets
£
|
Balance as at 1 January 2023
|
|
31,850,128
|
Additions
|
|
2,759,158
|
Exchange rate movements
|
|
(868,355)
|
As
at 30 June 2023
|
|
33,740,931
|
Balance as at 1 July 2023
|
|
33,740,931
|
Additions
|
|
823,798
|
Impairments
|
|
(3,535,254)
|
Exchange rate movements
|
|
207,861
|
As
at 31 December 2023
|
|
31,237,336
|
Balance as at 1 January 2023
|
|
31,237,336
|
Additions
|
|
435,770
|
Exchange rate movements
|
|
(676,945)
|
As
at 30 June 2024
|
|
30,996,161
|
7. Fair Value Through Profit And Loss Equity
Investments
During the year ended 31 December
2023, 80 Mile received shares 62,500,000 new Ordinary Shares in
Metals One Plc following its admission to AIM.
|
£
|
1
January 2023
|
-
|
30
June 2023
|
-
|
31
July 2023
|
-
|
Additions at cost
|
3,125,000
|
Change in fair value recognised in
profit and loss
|
(1,468,750)
|
31
December 2023
|
1,656,250
|
1
January 2024
|
1,656,250
|
Change in fair value recognised in
profit and loss (Note 9)
|
(1,062,500)
|
30
June 2024
|
593,750
|
Fair value through profit and loss equity investments include
the following:
|
30 June 2024
Unaudited
£
|
31 December 2023
Audited
£
|
30 June 2023
Unaudited
£
|
Quoted:
Equity securities - United
Kingdom
|
593,750
|
1,656,250
|
-
|
|
593,750
|
1,656,250
|
-
|
The fair value of quoted securities
is based on published market prices of £0.0095 as at 30 June 2024
(31 December 2023: £0.0265)
All assets and liabilities for which
fair value is measured are categorised within the fair value
hierarchy. The fair value hierarchy prioritises the inputs to
valuation techniques used to measure fair value. The Group uses
the
following hierarchy for determining
and disclosing the fair value of financial instruments and other
assets and liabilities for which the fair value was
used:
• level 1: quoted
prices in active markets for identical assets or
liabilities;
• level 2: inputs
other than quoted prices included in level 1 that are observable
for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
• level 3: inputs
for the asset or liability that are not based on observable market
data (unobservable inputs).
The
following tables set forth, by level, equity investments measured
at fair value on a recurring basis as 30 June and 31
December:
|
Quoted Prices in Active
Markets for Identical Assets and Liabilities
(Level 1)
|
Significant Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Description
Equity securities:
|
|
|
|
30
June 2023
|
-
|
-
|
-
|
31
December 2023
|
1,656,250
|
-
|
-
|
30
June 2024
|
593,750
|
-
|
-
|
8.
Investments in Joint Venture
During the 2021 financial year,
Disko Exploration Ltd entered into a joint venture agreement with
Kobold Metals to drill in Greenland for critical materials used in
electric vehicles. On 1 February 2022, the joint venture company,
Nikkeli Greenland AS ("Nikelli"), was incorporated and the specific
licences were transferred to Nikkeli.
|
|
Proportion of ownership
interest held
|
Name
|
Registered office address
|
Country of incorporation and place of
business
|
30 June
2024
|
30 June
2023
|
Nikkeli Greenland
A/S
|
c/o Nuna Advokater ApS, Qullilerfik
2, 6, Postboks 59, Nuuk 3900, Greenland
|
Greenland
|
49%
|
49%
|
|
£
|
As
at 1 January 2023
|
4,470,787
|
Share of loss in joint
venture
|
(9,455)
|
Foreign exchange
differences
|
(29,267)
|
Increase in share of net
asset
|
177,810
|
As
at 30 June 2023
|
4,609,875
|
As
at 1 July 2023
|
4,609,875
|
Share of loss in joint
venture
|
(4,324)
|
Increase in share of net
asset
|
135,154
|
As
at 31 December 2023
|
4,740,705
|
As
at 1 January 2024
|
4,740,705
|
Share of loss in joint
venture
|
(9,160)
|
Decrease in share of net
asset
|
(115,657)
|
As
at 30 June 2024
|
4,615,888
|
Summarised financial
information
Nikkeli Greenland A/S
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
Current assets
|
9,338
|
2,480
|
Non-current assets
|
9,541,870
|
9,513,942
|
Current liabilities
|
131,030
|
108,515
|
|
9,420,178
|
9,407,907
|
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
Revenues
|
-
|
-
|
(Loss) after tax from continuing
operations
|
(18,695)
|
(19,296)
|
|
(18,695)
|
(19,296)
|
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
Opening net assets
|
9,674,909
|
9,124,054
|
Additions/(disposal) in
PPE
|
(23,766)
|
353,037
|
Loss for the period
|
(9,160)
|
(9,455)
|
Other comprehensive
income
|
-
|
-
|
Foreign exchange
differences
|
(221,805)
|
(59,729)
|
Closing net assets
|
9,420,178
|
9,407,907
|
Interest in joint venture at
49%
|
4,615,888
|
4,609,875
|
Carrying value
|
4,615,888
|
4,609,875
|
The financial statements of the JV
are prepared for the same reporting period as the Group. When
necessary, adjustments are made to bring the accounting policies in
line with those of the Group. This adjustment is retrospective and
therefore an amendment was made to the prior year interim figures
to bring them in line with the equity method accounting policy
adopted in the Financial Statements for the year end 31 December
2022.
Increase in share of net assets is a
non-cash adjustment to increase/(decrease) the Group's ownership in
the Joint Venture to 49% from additional contributions by the JV
Partner.
Nikkeli Greenland A/S had no
contingent liabilities or commitments as at 30 June 2024 (30 June
2023: £nil).
9. Other (gains)/losses
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
(Gain)/loss on disposal of
property, plant and equipment
|
(8,551)
|
4,706
|
Valuation (losses) on fair value
through profit and loss equity investments (Note 7)
|
1,062,500
|
-
|
Other gains
|
(49,510)
|
(39,173)
|
|
1,004,439
|
(34,467)
|
10. Other income
|
6 months to 30 June 2024
Unaudited
£
|
6 months to 30 June 2023
Unaudited
£
|
Income from related
parties
|
75,710
|
165,851
|
|
75,710
|
165,851
|
11. Earnings per Share
The calculation of earnings per
share is based on a loss of £2,012,224 for the six months ended 30 June 2024 (loss
for six months
ended 30 June 2023: £659,135)
and the weighted average number of shares in issue
in the period ended 30 June 2024 of 1,450,484,674
(six months ended
30 June 2023: 1,058,677,266).
No diluted earnings per share is
presented for the six months ended 30 June 2024 or 30 June 2023 as the effect on the
exercise of share options would be anti-dilutive.
12. Borrowings
On 14 February 2023, the Company
received funding for US$2,000,000 as a convertible loan note. On
the same date, the Company issued 5,800,000 Initial Placement
shares at nominal value and 3,798,911 Commencement shares issued a
price of £0.047382 per share to the convertible loan note
holder.
On 25 April 2023, the Company
mutually agreed to repay the US$2,000,000 amount received for the
convertible loan note.
13. Events after the Reporting
Date
On 6 September 2024, the Company
issued 583,333,327 Ordinary Shares at a price of 0.3 pence per
share, raising gross proceeds of £1.75 million.
14. Approval of interim financial
statements
The Condensed interim financial
statements were approved by the Board of Directors on 27 September
2024.
** END **