TIDMAYM
Half yearly report for the six months to 30 September 2023
Chairman's Statement and Management Report
During the reporting period significant advances were made at the company's key
asset, Parys Mountain, with the following developments:
· Submission of the Pre-Application Inquiry to the North Wales Mineral
Planning Authority and hosting an on-site hearing for over 20 statutory
consultee groups.
· Further resource update work for the Morfa Dhu zone (White Rock and Engine
Zone) with 93% of the contained resources now being in the Measured and
Indicated categories.
· Commencement of confirmatory metallurgical test work and pre-concentration
trade-off with 340kg of Morfa Dhu material sent to Grinding Solutions Limited.
Preliminary results were received subsequent to the end of the period with
overall recoveries either in-line or better than those received from previous
test work.
· Detailing the planned drilling programme for the Northern Copper Zone, the
first drilling of this high potential area since 1972. Drilling recommenced in
October 2023 and the first hole was completed on 11 December at a depth of 635
metres. Visual logging of the core suggests two zones of sulphide mineralisation
were intersected with the Northern Copper Zone interpreted to be between 351 -
540 metres and a second zone, potentially the Garth Daniel Zone, between 560 -
586 metres (all downhole depths). As expected, the interpreted Northern Copper
Zone has varying levels of sulphide accumulation. The lower zone of sulphide
accumulation between 560 - 586 metres demonstrates areas with very high levels
of chalcopyrite. A first batch of samples will be dispatched to the assay
laboratory prior to Christmas with results expected in Q1 2024.
Progress at the 49.75% owned Grängesberg iron ore project in Sweden included
ongoing discussions with potential development partners and the commencement of
planning for the environmental baseline gap analysis with a locally based
consulting group, as was recommended in the Pre-Feasibility Study Update.
Board of Directors and Management
Following the resignation of Jo Battershill and the results of the annual
general meeting held in late October 2023 the company is actively engaged in the
search for a new Chief Executive Officer and Non-Executive Chairman. We are very
pleased that Jo Battershill has agreed to remain on the board as a non-executive
director.
Financial
The group had no revenue for the period. The loss for the six months to 30
September 2023 was £604,787 (2022 comparative period £468,656) and expenditure
on the mineral properties in the period was £174,748 compared to £320,887 in the
same period in 2022. This reduction was primarily due to a cessation in Parys
Mountain drilling activity.
Net current assets as at 30 September 2023 were £711,635 compared to £86,781 as
at 31 March 2023 with the increase being due to equity private placements in May
and July 2023, which raised a total of £1.5 million to fund current operations.
Summary
We continue to firmly believe that Anglesey Mining is in a good position to
advance its two key assets at Parys Mountain and Grängesberg over the next year.
At Parys Mountain, drilling of the Northern Copper Zone is expected to generate
strong results leading to the conversion of significant areas of the resource
from the Inferred category through into the higher confidence Indicated
category. From a development study perspective, it is important that the
Northern Copper Zone is upgraded to the Indicated resource category as this will
allow the incorporation of this zone into any potential mineral reserve.
Metallurgical test work will also be required on the Northern Copper Zone to
confirm the +93% recoveries demonstrated by the original test work completed in
1969 at the Lakefield Plant in Ontario, Canada. As suggested in the initial
review of the Northern Copper Zone in 2022, we believe that the system could be
significantly larger than currently modelled, although this will require
additional drilling to test prospective areas.
At Grängesberg, we continue to explore options to advance the project. This
initially requires finalising some of the recommendations from the preliminary
feasibility study update, including baseline studies for the environmental
impact assessment and updating the mining reserve to include some improvements
to the proposed mine plan. We are also exploring a number of options to optimise
the ownership structure of Grängesberg Iron AB following our acquisition of an
additional 29.8% stake in February 2023.
Outlook
Persistent global uncertainties and difficult financial markets have resulted in
challenging conditions in which to operate. However, we continue to be
encouraged by growing investor interest in Anglesey Mining which was
demonstrated by the successful raising of £1.5 million during the reporting
period. We believe that investors are finally recognising the progress made
over the last two years after a period of relative inactivity.
Over the course of the next year, we look forward to advancing the Parys
Mountain project and to optimising the ownership and potential of the
Grängesberg iron ore project.
In closing, on behalf of the board of directors, I would like to thank our
shareholders for their ongoing support, and to confirm that I remain very
confident that the assets held by Anglesey Mining will deliver significant value
as they continue to be progressed over the next year.
Andrew King
Interim Chairman
19 December 2023
Unaudited condensed consolidated income statement
Notes Unaudited six months ended Unaudited six months
ended
30 September 2023 30 September 2022
All
operations £ £
are
continuing
Revenue - -
Expenses (476,872) (388,972)
Equity-settled (24,572) -
employee
benefits
Investment 800 20
income
Finance costs (104,296) (79,789)
Foreign exchange 153 85
movement
Loss (604,787) (468,656)
before tax
Taxation 8 - -
Loss for 7 (604,787) (468,656)
the period
Loss per share
Basic - pence (0.2)p (0.2)p
per share
Diluted - pence . (0.2)p (0.2)p
per share
Unaudited condensed consolidated statement of comprehensive income
Loss for the period (604,787) (468,656)
Other comprehensive income
Items that may subsequently be reclassified to profit or loss:
Change in fair value of investment (155,557) (176,428)
Foreign currency translation reserve 8,021 4,967
Total comprehensive loss for the period (752,323) (640,117)
All attributable to equity holders of the company
Unaudited condensed consolidated statement of financial position
Notes 30 September 31 March 2023
2023
£
£
Assets
Non-current assets
Mineral property 9 16,346,569 16,171,821
exploration and
evaluation
Property, plant and 204,687 204,687
equipment
Investments 10 1,877,628 2,033,185
Deposit 124,586 124,586
18,553,470 18,534,279
Current assets
Other receivables 53,354 49,635
Cash and cash 941,208 247,134
equivalents
994,562 296,769
Total assets 19,548,032 18,831,048
Liabilities
Current liabilities
Trade and other (282,927) (209,988)
payables
(282,927) (209,988)
Net current assets 711,635 86,781
Non-current
liabilities
Loans (3,813,430) (4,194,721)
Long term provision (50,000) (50,000)
(3,863,430) (4,244,721)
Total (4,146,357) (4,454,709)
liabilities
Net assets 15,401,675 14,376,339
Equity
Share capital 11 9,711,764 8,463,039
Share premium 12,948,103 12,443,741
Currency translation (64,117) (72,138)
reserve
Retained losses (7,194,075) (6,458,303)
Total 15,401,675 14,376,339
shareholders'
funds
All attributable to equity holders of the company
Unaudited condensed consolidated statement of cash flows
Notes Unaudited six months ended Unaudited six months
ended
30 September 2023 30 September 2022
£ £
Operating
activities
Loss for the period (604,787) (468,656)
Adjustments for:
Investment income (800) (20)
Finance costs 104,296 79,789
Equity-settled 24,572 -
employee benefits
Shares issued in lieu 50,000 -
of salary
Foreign exchange (153) (85)
movement
(426,872) (388,972)
Movements in working
capital
(Increase) in (3,719) (18,375)
receivables
Increase/(decrease) 58,774 (131,982)
in payables
Net cash (371,817) (539,329)
used in
operating
activities
Investing
activities
Investment income 800 -
Mineral property (165,062) (355,542)
exploration and
evaluation
Net cash (164,262) (355,542)
used in
investing
activities
Financing
activities
Issue of share 1,380,000 797,951
capital
Loan repayment (150,000) (78,345)
Net cash 1,230,000 719,606
generated
from
financing
activities
Net 693,921 (175,265)
increase/(de
crease) in
cash and
cash
equivalents
Cash and 247,134 922,177
cash
equivalents
at start of
period
Foreign 153 85
exchange
movement
Cash and 941,208 746,997
cash
equivalents
at end of
period
All attributable to equity holders of the company
Unaudited condensed consolidated statement of changes in group equity
Share Share Currency Retained Total
capital premium translation losses £
£ £ reserve £
£
Equity at 1 April 8,463,039 12,443,741 (72,138) (6,458,303) 14,376,339
2023 - audited
Total
comprehensive
loss for
the period:
Loss for the - - - (604,787) (604,787)
period
Change in fair - - - (155,557) (155,557)
value of
investment
Exchange - - 8,021 - 8,021
difference on
translation
of foreign
holding
Total - - 8,021 (760,344) (752,323)
comprehensive
loss for
the period
Shares issued 1,248,725 624,362 - - 1,873,087
Share issue - (120,000) - - (120,000)
expenses
Equity at 9,711,764 12,948,103 (64,117) (7,194,075) 15,401,675
30 September 2023
- unaudited
Comparative
period
Equity at 1 April 7,991,541 11,453,789 (84,926) (5,040,074) 14,320,330
2022 - audited
Total
comprehensive
loss for
the period:
Loss for the - - - (468,656) (468,656)
period
Change in fair - - - (176,428) (176,428)
value of
investment
Exchange - - 4,967 - 4,967
difference on
translation
of foreign
holding
Total - - 4,967 (645,084) (640,117)
comprehensive
loss for
the period
Shares issued 326,050 780,020 - - 1,106,070
Share issue - (80,965) - - (80,965)
expenses
Equity at 8,317,591 12,152,844 (79,959) (5,685,158) 14,705,318
30 September 2022
- unaudited
All attributable to equity holders of the company
Notes to the accounts
1. Basis of preparation
This half-yearly financial report comprises the unaudited condensed consolidated
financial statements of the group for the six months ended 30 September 2023. It
has been prepared in accordance with the Disclosure and Transparency Rules of
the Financial Conduct Authority, the requirements of IAS 34 - Interim financial
reporting (as adopted by the UK) and using the going concern basis. The
directors are not aware of any events or circumstances which would make this
inappropriate. It does not constitute financial statements within the meaning of
section 434 of the Companies Act 2006 and does not include all of the
information and disclosures required for annual financial statements. It should
be read in conjunction with the annual report and financial statements for the
year ended 31 March 2023 which is available on request from the company or may
be viewed at www.angleseymining.co.uk/accounts.
The financial information contained in this report in respect of the year ended
31 March 2023 has been extracted from the report and financial statements for
that year which have been filed with the Registrar of Companies. The report of
the auditors on those accounts did not contain a statement under section 498(2)
or (3) of the Companies Act 2006 and was not qualified. The half-yearly results
for the current and comparative periods have not been audited or reviewed by the
company's auditor.
2. Significant accounting policies
The accounting policies applied in these unaudited condensed consolidated
financial statements are consistent with those set out in the annual report and
financial statements for the year ended 31 March 2023. There are no new
standards, amendments to standards or interpretations that are expected to have
a material impact on the group's results.
The group has not applied certain new standards, amendments and interpretations
to existing standards that have been issued but are not yet effective. They are
either not expected to have a material effect on the consolidated financial
statements or they are not currently relevant for the group.
3. Risks and uncertainties
The principal risks and uncertainties set out in the group's annual report and
financial statements for the year ended 31 March 2023 remain the same for this
half-yearly period. They can be summarised as: development risks in respect of
mineral properties, especially in respect of permitting and metal prices;
liquidity risks during development; and foreign exchange risks. More information
is to be found in the 2023 annual report - see note 1 above.
4. Statement of directors' responsibilities
The directors confirm to the best of their knowledge that:
(a) the unaudited condensed consolidated financial statements have been prepared
in accordance with the requirements of IAS 34 Interim financial reporting (as
adopted by the UK); and
(b) the interim management report includes a fair review of the information
required by the FCA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R).
This report and financial statements were approved by the board on 19 December
2023 and authorised for issue on behalf of the board by Andrew King, interim
chairman and Jo Battershill, chief executive officer.
5. Activities
The group is engaged in mineral property development and currently has no
turnover. There are no minority interests or exceptional items.
6. Earnings per share
The loss per share is computed by dividing the loss attributable to ordinary
shareholders of £0.6 million by 406 million - the weighted average number of
ordinary shares in issue during the period. The comparative figures were a loss
to 30 September 2022 of £0.47m divided by 282 million shares. However where
there are losses the effect of outstanding share options is not dilutive.
7. Business and geographical segments
There are no trading revenues. The cost of all activities charged in the income
statement relates to exploration and evaluation of mining properties. The
group's income statement and assets and liabilities are analysed as follows by
geographical segments, which is the basis on which information is reported to
the board.
Income statement analysis
Unaudited
six
months
ended 30
September
2023
UK Sweden - Canada - investment Total
investment
£ £
£ £
Expenses (476,872) - - (476,872)
Equity settled (24,572) - - (24,572)
employee
benefits
Investment 800 - - 800
income
Finance costs (99,231) (5,065) - (104,296)
Exchange rate - 153 - 153
movements
Loss for the (599,875) (4,912) - (604,787)
period
Unaudited
six
months
ended 30
September
2022
UK Sweden - Canada - investment Total
investment
£ £
£ £
Expenses (388,972) - - (388,972)
Equity settled - - - -
employee
benefits
Investment 20 - - 20
income
Finance costs (74,356) (5,433) - (79,789)
Exchange rate - 85 - 85
movements
Loss for the (463,308) (5,348) - (468,656)
period
Assets and liabilities
` Unaudited
30
September
2023
UK Sweden investment Canada investment Total
£ £ £
£
Non current 16,675,842 633,170 1,244,458 18,553,470
assets
Current 993,244 1,318 - 994,562
assets
Liabilities (3,821,291) (325,066) - (4,146,357)
Net 13,847,795 309,422 1,244,458 15,401,675
assets/(liabil
ities)
Audited 31
March 2023
UK Sweden investment Canada investment Total
£ £ £
£
Non current 16,501,094 633,170 1,400,015 18,534,279
assets
Current 295,560 1,209 - 296,769
assets
Liabilities (4,122,208) (332,501) - (4,454,709)
Net 12,674,446 301,878 1,400,015 14,376,339
assets/(liabil
ities)
8. Deferred tax
There is an unrecognised deferred tax asset of £1.6 million (31 March 2023 -
£1.6m) which, in view of the group's results, is not considered to be
recoverable in the short term. There are also capital allowances, including
mineral extraction allowances, exceeding £13.7 million (unchanged from 31 March
2023) unclaimed and available. No deferred tax asset is recognised in the
condensed financial statements.
9. Mineral property exploration and evaluation costs
Mineral property exploration and evaluation costs incurred by the group are
carried in the unaudited condensed consolidated financial statements at cost,
less an impairment provision if appropriate. The recovery of these costs is
dependent upon the successful development and operation of the Parys Mountain
project which is itself conditional on finance being available to fund such
development. During the period expenditure of £174,748 was incurred (six months
to 30 September 2022 - £320,887). There have been no indicators of impairment
during the period.
10. Investments
Labrador Grangesberg Total
£ £ £
At 1 April 2022 1,914,185 110,157 2,024,342
Net change during the period (514,170) 523,013 8,843
At 31 March 2023 1,400,015 633,170 2,033,185
Net change during the period (155,557) - (155,557)
At 30 September 2023 1,244,458 633,170 1,877,628
Labrador - Canada
The group has an investment in Labrador Iron Mines Holdings Limited, (LIM) a
Canadian company which is carried at fair value through other comprehensive
income. The group's holding of 19,289,100 shares in LIM (12% of LIM's total
issued shares) is valued at the closing price traded on the OTC Markets in the
United States. In the directors' assessment this market is sufficiently active
to give the best measure of fair value, which on 30 September 2023 was 10 US
cents per share. As at the 13 December 2023 the share price was 5.5 US cents per
share.
Grängesberg - Sweden
The group has, through its Swedish subsidiary Angmag AB, a 49.75% ownership
interest in Grängesberg Iron AB an unquoted Swedish company (GIAB) which holds
rights over the Grängesberg iron ore deposits.
Under a shareholders' agreement, Angmag has a reciprocal right of first refusal
over the remaining 50.25% of the equity of GIAB, together with management
direction of the activities of GIAB subject to certain restrictions. The
shareholders' agreement has an initial term of 10 years from 28 May 2014,
extendable on a year-to-year basis, unless terminated on one year's notice.
The directors assessed the fair value of the investment in Grängesberg under
IFRS 9 and consider the investment's value at 30 September 2023 to be £633,170.
11. Share capital
Deferred shares of 4p Total
Ordinary
shares of
1p
Issued and Nominal Number Nominal Number Nominal
fully paid value £ value £ value £
At 1 April 2,480,708 248,070,732 5,510,833 137,770,835 7,991,541
2022
Issued in 471,498 47,149,816 - - 471,498
the period
At 31 2,952,206 295,220,548 5,510,833 137,770,835 8,463,039
March 2023
Issued in 1,248,725 124,872,469 - - 1,248,725
the period
At 30 4,200,931 420,093,017 5,510,833 137,770,835 9,711,764
September
2023
The deferred shares are non-voting, have no entitlement to dividends and have
negligible rights to return of capital on a winding up.
On 16 May 2023 a placing of 66,666,659 new ordinary shares was made at 1.5 pence
per share to several institutions and two of the directors, to raise a total of
£1,000,000. At the same time Juno converted part of its loan, at the issue
price, into 14,589,149 new ordinary shares and a bonus payment of £50,000 was
made in shares, again at the same price.
On 31 July 2023 a placing of 33,333,329 new ordinary shares was made at 1.5
pence per share to several institutions, to raise a total of £500,000. At the
same time Juno converted part of its loan, at the issue price, into 6,950,000
new ordinary shares.
12. Financial instruments
Group Financial Financial
assets assets
classified at measured
fair value at
through other amortised
comprehensive cost
income
30 September 31 March 2023 30 31 March
2023 September 2023
2023
£ £ £ £
Financial
assets
Investments 1,877,628 2,033,185 - -
Deposit - - 124,586 124,586
Other - - 53,354 49,635
receivables
Cash and - - 941,208 247,134
cash
equivalents
1,877,628 2,033,185 1,119,148 421,355
Financial
liabilities
measured at
amortised
cost
30 September 31 March 2023
2023
£ £
Trade (141,485) (94,796)
payables
Other (141,442) (115,192)
payables
Loans (3,813,430) (4,194,721)
(4,096,357) (4,404,709)
13. Events after the reporting period
At the AGM held on 27 October 2023 the chairman, John Kearney, was not re
-elected to the board and consequently ceased to be chairman and a director from
that date. Non-executive director Andrew King was appointed Interim Chairman in
his place.
Danesh Varma resigned as financial director on 14 November 2023.
14. Related party transactions
Juno Limited
Juno Limited (Juno) which is registered in Bermuda held approximately 20% of the
company's issued ordinary share capital during the period. The group has an
Investor Agreement with Juno under which Juno agreed to participate in any
future equity financing, at the same price per share and on the same terms as
other arm's-length participants, to maintain its percentage, with the
subscription price to be satisfied by the conversion and consequent reduction of
debt and the company agreed to pay Juno in cash ten percent of the net proceeds
of such equity financing in further reduction of the debt. In addition, Juno has
certain nomination and reporting rights, including the right to nominate two
directors to the board, so long as Juno holds at least 20% of the company's
outstanding shares and one director so long as Juno holds at least 10% of the
company's outstanding shares. The family interests of Danesh Varma have a
significant shareholding in Juno.
Following the share issues of May and July 2023, 21,539,148 shares and
10,769,573 warrants over shares were issued to Juno and the consequently debt
due to Juno was reduced by £323,087. In addition, cash repayments of £150,000
were made in the period. All this was in conformity with the Investor Agreement.
Since the period end the company has been notified that Juno has sold 100% of
its shareholding in the company.
Grangesberg
John Kearney and Danesh Varma, as nominees of the company, are directors of
Grangesberg Iron AB. Danesh Varma has been associated with the Grängesberg
project since 2007 when he became a director of Mikula Mining Limited, a company
subsequently renamed Eurang Limited, previously involved in the Grängesberg
project. He did not take part in the decision to enter into the Grängesberg
project when this was approved by the board in 2014. The group has a liability
to Eurang Limited, amounting to £325,066 as at 30 September 2023.
There are no other contracts of significance in which any director has or had
during the year a material interest.
Anglesey Mining plc
Directors
Andrew KingInterim chairman
Jo BattershillChief executive
Namrata Verma Non executive
Registered office address - Parys Mountain, Amlwch, Anglesey, LL68 9RE
Phone 01407 831275 Email mail@angleseymining.co.uk
London office Suite S1, The Old Church, 89B Quicks Road, Wimbledon, London
SW19 1EX
RegistrarsLink Group, 29 Wellington Street, Leeds, LS1 4DL
Share dealing phone 0371 664 0445 Helpline phone 0371 664 0300
Company registered number 01849957
Web sitewww.angleseymining.co.uk
Shares listed AIM - AYM
For further information, please contact:
Anglesey Mining plc
Jo Battershill, Chief Executive - Tel: +44 (0)7540 366000
Davy
Nominated Adviser & Joint Corporate Broker
Brian Garrahy / Daragh O'Reilly - Tel: +353 1 679 6363
WH Ireland
Joint Corporate Broker
Katy Mitchell / Harry Ansell - Tel: +44 (0) 207 220 1666
LEI: 213800X8BO8EK2B4HQ71
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://mb.cision.com/Main/22377/3896177/2503553.pdf Anglesey Interim report 2023
(END) Dow Jones Newswires
December 19, 2023 07:02 ET (12:02 GMT)
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