TIDMBRES
RNS Number : 3951B
Blencowe Resources PLC
02 June 2023
Date: 02 June 2023
Blencowe Resources Plc
("Blencowe" or the "Company")
Interim Consolidated Financial Statements
for the six month period ended 31 March 2023
The Company is pleased to announce its Interim Results for the
six-month period to 31 March 2023.
Electronic copies of the report will be available at the
Company's website www.blencoweresourcesplc.com
For further information please contact:
Blencowe Resources www.blencoweresourcesplc.com
Sam Quinn Tel: +44 (0) 1624 681 250
info@blencoweresourcesplc.com
Investor Enquiries Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com
Tavira Securities Limited Tel: +44 (0)203 192 1733
Jonathan Evans jonathan.evans@tavirasecurities.com
First Equity Limited Tel: +44 (0)20 7330 1883
Jason Robertson jasonrobertson@firstequitylimited.com
Interim Management Report
The period to 31 March 2023 (and subsequent events to 30 April
2023) have seen the Company continue to develop its Orom-Cross
graphite project.
A Definitive Feasibility Study ("DFS") commenced and is underway
on a number of fronts; this is expected to take around 12 months to
complete but the timing is dependent on pre-qualification test work
being completed as a means to ultimately deliver binding offtake
contracts for the full quantum of graphite concentrate being
considered for sale under the phase one operational model.
Experienced Australian engineering firm CPC Engineering have agreed
to manage and sign off on the DFS, and their experience and
involvement will assist greatly in achieving a high quality study
and result.
DFS work will concentrate on three key areas. Firstly, work
in-country to complete all work necessary to build and operate the
mine, including all remaining licenses and permits. The associated
infrastructure required to drive the operation will be scrutinised
and plans put in place to ensure that all necessary infrastructure
will be ready and in place for mining at Orom-Cross. Local studies
include management and personnel, mining, equipment, logistics and
other key areas. The DFS will take these studies to a far greater
extent than the PFS in 2022.
Secondly, pre-qualification testing is taking place in the
United States and China to advance the status of Orom-Cross
graphite to potential buyers. A bulk sample of 100 tonnes was mined
from Orom-Cross in January and (via a special export permit) was
approved for transport to China by sea, where it will be put
through an existing graphite pilot testing facility. This will save
Blencowe substantial time and money by not having to build its own
pilot facility on-site to get pre-qualified. The resultant tonnes
of 96% concentrate will be then processed to a series of 99.9%
products, both expendable's (large flakes) and SPG (spheronised,
purified graphite) (smaller flakes). Assuming successful these
samples will be given to end user OEMs to conduct their own testing
in their own facilities, to ensure Orom-Cross end product meets
their standards and expectations. Once this process is completed
then Orom-Cross becomes 'qualified' and offtake contract
discussions may be entered into.
A 150kg sample was sent to China by air as a preliminary raw
material product for the same pilot facility to run tests on how to
achieve the best results on the larger sample to follow, and the
Company expects feedback on this shortly. This full qualification
process is what sets graphite apart from most other metals and it
also creates barriers to entry for new participants in the
industry. Blencowe is confident that it has the right
process/procedures in place to achieve the results it requires to
pass this key hurdle. Without binding offtake agreements, it will
be difficult to deliver a decision to mine and/or project funding,
so this is a critical path item within the DFS. In the past this
process has taken other graphite companies several years, Blencowe
is hoping that the refinement of this process via its advisors will
ensure we ultimately complete this pre-qualification much
faster.
In parallel Blencowe is conducting further metallurgical test
work in USA to provide evidence (bench-scale testing) that the 96%
concentrate it will deliver at Orom-Cross will be suitable for
upgrading to the 99.9% end products sought after by the market, and
how this us best achieved. These results are expected soon and will
be important in ascertaining the end value within the project
portfolio.
Thirdly, Blencowe is working through a number of different
potential funding options to secure the right partnerships for
funding both the DFS and the project implementation. There are
different alternatives at both topco and project level and it is
important that the right relationships are built that can deliver
this project ahead, both now (DFS stage) and in building the full
project. Blencowe announced in April its successful passing through
a key screening hurdle/test with the Development Finance
Corporation (DFC) which is a tier one US Govt-owned financial
institution which provides funding solutions for the private sector
in areas the US Govt deems are critical. Graphite is considered
critical and hence the interaction. This is seen as a valuable
relationship for Orom-Cross and the Company is hoping to sign off
on a substantial technical assistance grant with the DFC in the
near term that will provide up to 50% of the DFS costs. Thereafter
this relationship has the potential to offer further funding
solutions for the full project finance required. The credibility
that association with an institution of this stature brings to both
our Company and our project cannot be easily measured; this would
be a big result for Blencowe.
These and other DFS activities are the focus and will remain so
for the Company ahead. Further capital will be introduced into the
Company as and when required, with the continued support of our
major shareholders, and once Blencowe delivers the DFC technical
assistance grant it is believed that many other funding
opportunities will emerge at all levels.
Elsewhere, the Company walked away from the previously announced
nickel exploration earn-in deal with SIPA Resources as it was
considered more advantageous to concentrate on delivering the
Orom-Cross graphite project into production ahead.
Mike Ralston
Chief Executive Officer
Responsibility Statement of the Directors in respect of the
Interim Report
The Directors are responsible for preparing the Interim
Financial Statements in accordance with applicable law and
regulations. In addition, the Directors have elected to prepare the
Interim Financial Statements in accordance with International
Financial Reporting Standards ("IFRSs"), as adopted by the United
Kingdom ("UK").
The Interim Financial Statements are required to give a true and
fair view of the state of affairs of the Group and of the profit or
loss of the Group for that period.
In preparing these Interim Financial Statements, the Directors
are required to:
-- select suitable accounting policies and then apply them consistently;
-- present information and make judgements that are reasonable,
prudent and provides relevant, comparable and understandable
information;
-- provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users to
understand the impact of particulars transactions, other events and
conditions on the entity's financial position and financial
performance; and
-- make an assessment of the Group's ability to continue as a going concern.
The Directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Group's
transactions and disclose with reasonable accuracy at any time its
financial position of the Group to enable them ensure that the
financial statements comply with the requirements of the Companies
Act 2006. They have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Group
and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and Interim Financial Statements. Legislation
governing the preparation and dissemination of Interim Financial
Statements may differ from one jurisdiction to another.
We confirm that to the best of our knowledge:
-- the Interim Financial Statements, prepared in accordance with
International Financial Reporting Standards as adopted by the UK,
give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group for the period;
-- the Director's report includes a fair review of the
development and performance of the business and the position of the
group, together with a description of the principal risks and
uncertainties that they face; and
-- the annual report and financial statements, taken as a whole,
are fair, balanced and understandable and provide the information
necessary for shareholders to assess the group's performance,
business model and strategy.
Consolidated Statement of Comprehensive Income for the six month
period ended 31 March 2023
6 months ended 6 months ended 12 months ended
31 Mar 2023 31 Mar 2022 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Exploration costs (16,642) (2,744) (4,853)
Impairment -Akelikongo project - - (404,533)
Administrative fees and other expenses 5 (446,424) (331,617) (681,488)
Adjustments to Liability to surface liability - - 51,316
--------------- --------------- ----------------
Operating loss (463,066) (334,361) (1,039,558)
Finance costs (23,010) (21,975) (45,916)
--------------- --------------- ----------------
Loss before tax (486,076) (356,336) (1,085,474)
Income tax - - -
Loss after tax (486,076) (356,336) (1,085,474)
--------------- --------------- ----------------
Other comprehensive income
Exchange differences on translation of foreign operation 7,807 (2,061) (4,205)
Other comprehensive income, net of tax 7,807 (2,061) (4,205)
Total comprehensive loss (478,269) (358,397) (1,089,679)
Basic and diluted loss per share (pence) 9 (0.28) (0.27) (0.68)
There was no other comprehensive income for the period ended on
31 March 2023.
Consolidated Statement of Financial Position as at 31 March
2023
As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Non-Current Assets 7,065,820 5,815,114 6,615,253
Current assets
Trade and other receivables 6 135,901 248,413 85,847
Cash and cash equivalents 130,740 968,693 346,994
Total current assets 266,641 1,217,106 432,841
Total assets 7,332,461 7,032,220 7,048,094
Current liabilities
Creditors: Amounts falling due within one year (429,843) (282,217) (326,375)
------------- ------------- --------------
Total current liabilities (429,843) (282,217) (326,375)
Non-current liabilities
Surface liabilities (785,520) (924,359) (825,852)
Total liabilities (1,215,363) (1,206,576) (1,152,227)
Net assets 6,117,098 5,825,644 5,897,867
------------- ------------- --------------
Equity
Share capital 1,931,316 1,101,316 1,181,316
Share premium 7,428,329 6,841,596 7,480,829
Warrants reserves 402,148 317,876 402,148
Translation reserve 7,264 1,601 (543)
Retained earnings (3,651,959) (2,436,745) (3,165,883)
------------- ------------- --------------
Total equity 6,117,098 5,825,644 5,897,867
------------- ------------- --------------
Consolidated Statement of Changes in Equity for the six month
period ended 31 March 2023
Share option Retained Translation
Share capital Share premium reserves earnings reserve Total equity
GBP GBP GBP GBP GBP GBP
Balance as at 30
Sep 2021 901,316 5,132,081 317,876 (2,080,409) 3,662 4,274,526
Total
comprehensive
loss for 6
months
Loss for the
period - - - (356,336) - (356,336)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss - - - (356,336) - (356,336)
Contributions
from equity
holders
New shares
issued 200,000 1,800,000 - - - 2,000,000
Share issue
costs - (90,485) - - - (90,485)
Exchange
differences on
translation - - - - (2,061) (2,061)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
contributions
from equity
holders 200,000 1,709,515 - - (2,061) 1,907,454
Balance as at 31
Mar 2022 1,101,316 6,841,596 317,876 (2,436,745) 1,601 5,825,644
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss for 6
months
Loss for the
period - - - (729,138) - (729,138)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss - - - (729,138) - (729,138)
Contributions
from equity
holders
New shares
issued 80,000 720,000 - - - 800,000
Share issue
costs - (80,767) - - - (80,767)
Warrants reserve 84,272 - - 84,272
Exchange
differences on
translation of
foreign
operations - - - - (2,144) (2,144)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
contributions
from equity
holders 80,000 639,233 84,272 (729,138) (2,144) 801,361
Balance as at 30
Sep 2022 1,181,316 7,480,829 402,148 (3,165,883) (543) 5,897,867
-------------- -------------- ---------------- ---------------- ---------------- -------------
Consolidated Statement of Changes in Equity for the six month
period ended 31 March 2023
Share option Retained Translation
Share capital Share premium reserves earnings reserve Total equity
GBP GBP GBP GBP GBP GBP
Balance as at 30
Sep 2022 1,181,316 7,480,829 402,148 (3,165,883) (543) 5,897,867
Total
comprehensive
loss for 6
months
Loss for the
period - - - (486,076) - (486,076)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss - - - (486,076) - (486,076)
Contributions
from equity
holders
New shares
issued 750,000 - - - - 750,000
Share issued
costs - (52,500) - - - (52,500)
Exchange
differences on
translation of
foreign
operations - - - - 7,807 7,807
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
contributions
from equity
holders 750,000 (52,500) - - 7,807 705,307
Balance as at 31
Mar 2023 1,931,316 7,428,329 402,148 (3,651,959) 7,264 6,117,098
-------------- -------------- ---------------- ---------------- ---------------- -------------
Consolidated Statement of Cash Flows for the six month period
ended 31 March 2023
As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Operating activities
Loss after tax (486,076) (356,336) (1,085,474)
Depreciation 104 - -
Finance costs 23,010 21,974 45,916
Adjustment to Surface Liability - - (51,316)
Share issue/warrant cost - - 84,272
Impairment - Akelikongo costs - - 404,533
Unrealised currency translation 261,566 (61,217) (208,371)
Changes in working capital
Decrease/(increase) in trade and other receivables (50,054) (195,833) (33,267)
Increase/(decrease) in trade and other payables (39,568) 38,945 76,483
------------- ------------- --------------
Net cash flows from operating activities (291,018) (552,467) (767,224)
Cash flows from financing activities
Purchase of fixed assets (748) - -
Investment in exploration assets (621,988) (481,643) (1,423,236)
------------- ------------- --------------
Net cash flows from investment activities (622,736) (481,643) (1,423,236)
Financing activities
Shares issued 750,000 2,000,000 -
Shares issued (cost) (52,500) (90,486) 2,444,166
------------- ------------- --------------
Net cash flows from financing activities 697,500 1,909,514 2,444,166
Increase in cash and short-term deposits (216,254) 875,404 253,706
Cash and short-term deposits brought forward 346,994 93,288 93,288
Cash and cash equivalents at end of period 130,740 968,692 346,994
------------- ------------- --------------
Notes to the Financial Statements for the six month period ended
31 March 2023
1. General
Blencowe Resources Plc (the "Company") is a public limited
company incorporated and registered in England and Wales on 18
September 2017 with registered company number 10966847 and its
registered office situated in England and Wales at 167-169 Great
Portland Street, Fifth Floor, London, England W1W 5PF.
The Group did not earn any trading income during the period
under review but incurred expenditure in developing its principal
assets.
The Consolidated Interim Financial Statements of the Company for
the six month period ended 31 March 2023 comprise the financial
statements of the Company and its subsidiaries (together referred
to as the "Group").
2. Accounting Policies
Basis of preparation
The Interim Financial Statements of the Group are unaudited
condensed financial statements for the six month period ended 31
March 2023.
The accounting policies applied by the Group in these Interim
Financial Statements, are the same as those applied by the Group in
its consolidated financial statements and have been prepared on the
basis of the accounting policies applied for the financial year to
30 September 2022 which have been prepared in accordance with IFRS
as adopted by UK for. The Group Financial Statements have been
prepared using the measurement bases specified by IFRS each type of
asset, liability, income and expense.
The Group Financial Statements are presented in GBP, which is
the Group's functional currency. All amounts have been rounded to
the nearest pound, unless otherwise stated.
Comparative figures
The comparative figures have been presented as the Group
Financial Statements cover the 6 month period ended 31 March 2022
and the 12 month period ended 30 September 2022.
3. Critical accounting estimates and judgments
In preparing the Group 's Interim Financial Statements, the
Directors have to make judgments on how to apply the Group's
accounting policies and make estimates about the future. The
Directors do not consider there to be any critical judgments that
have been made in arriving at the amounts recognised in the Group
Financial Statements.
4. Significant accounting policies
The accounting policies adopted are consistent with those
followed in the preparation of the annual financial statements of
Blencowe Resources Plc for the year ended 30 September 2022. A copy
of these financial statements is available on the Group website at
https://blencoweresourcesplc.com/
5. Administrative fee and other expenses
6 months
ended 6 months 12 Months
31 Mar ended ended
2023 31 Mar 2022 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Directors' remuneration 70,023 70,046 173,413
Professional fees 121,692 130,655 274,333
Salaries 75,000 60,000 142,500
Listing fees 18,218 19,783 26,910
Audit fees 21,644 4,375 29,000
Share issue/warrant cost - - 84,272
Administration fees 23,500 23,500 47,000
Broker fees 20,500 29,542 38,048
Travelling expenses 7,959 - 34,167
Miscellaneous fees 87,888 (6,284) (168,155)
------------
Total 446,424 331,617 681,488
------------ ------------- -------------
The Group had two employees who are key management personnel and
three Directors. The Directors and the key management personnel's
remuneration related solely to short term employee benefits.
6. Trade and other receivables
6 months
ended 6 months 12 Months
31 Mar ended ended
2023 31 Mar 2022 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Other receivables 21,526 37,997 24,765
Prepayments 114,375 210,416 61,082
------------ ------------- -------------
Total 135,901 248,413 85,847
7. Creditors: Amounts falling due within one year
6 months
ended 6 months 12 Months
31 Mar ended ended
2023 31 Mar 2022 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Payables 118,980 268,067 140,018
Land Owners Liability 143,036 - 154,403
Accruals and provision 167,827 14,150 31,954
------------ ------------- -------------
Total 429,843 282,217 326,375
8. Creditors: Amounts falling after one year
BRUL, the Company's subsidiary entered into an agreement for
surface rights over the land in the mineral area of the licence.
The land owners granted BRUL a 49 year lease over an area. The
liability to the land owners is to be paid in 8 instalments on at
defined dates with the final payment due in 2035.
6 months
ended 6 months 12 Months
31 Mar ended ended
2023 31 Mar 2022 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Total payable at the beginning
of the period 978,255 887,560 887,560
Change in estimate - - (51,316)
Interest charged during the period 23,010 21,975 45,916
Exchange loss on valuation (72,709) 14,824 96,095
------------ ------------- -------------
Total payable as at period end 928,556 924,359 978,255
Analysis between current and
non-current liability
Payable within 12 months 143,036 - 154,403
Payable after 12 months 785,520 924,359 823,852
------------ ------------- -------------
928,556 924,359 978,255
The value of the lease is measured at the present value of the
contractual payments due to the lessor
over the lease term, with the discount rate of 5%.
9. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
6 months ended 6 months ended 12 Months ended
31 Mar 2023 31 Mar 2022 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
------------------------------------------------------------------ --------------- --------------- ----------------
Earnings GBP GBP GBP
Loss from continuing operations for the period attributable to
the equity holders of the Group (478,269) (353,336) (1,085,474)
Number of shares
Weighted average number of Ordinary Shares for the purpose of
basic and diluted earnings per
share 168,803,923 133,655,997 160,790,224
------------------------------------------------------------------ --------------- --------------- ----------------
Basic and diluted loss per share (pence) (0.28) (0.27) (0.68)
------------------------------------------------------------------ --------------- --------------- ----------------
There are no potentially dilutive shares in issue.
10. Related party transactions
The are no related party transactions during the period except
for the Directors' remuneration, which have been disclosed in note
5.
Sam Quinn is a director and shareholder of the Company and a
Director of Lionshead Consultants Limited. During the period,
Lionshead Consultants Limited charged fees for consultancy fees of
GBP18,000 (31 March 2022: GBP12,000 and 30 Sep 2022:
GBP24,000).
11. Events after the reporting date
On 27 April 2023, the Company announced that it has managed to
secure a strategic funding partner for the Orom-cross graphite
project. The Development Finance Corporation engaged to fund 50% of
the definitive feasibility study costs by way of a technical
assistant grant. The DFC is the primary US Government finance
institution set up to provide financially sound solutions for
private sector initiatives pertaining to critical challenges facing
the world.
On 18 May 2023 Blencowe Resources Plc announced that it had
raised GBP635,000 at 5 pence per share through the issue of
12,700,000 new ordinary shares of 0.5p placing shares. The Company
will issue investors in the Placing with 1 warrant per 2 Placing
Shares (Investor Warrants") which are exercisable at 8p for a
period of 3 years from Admission of the Placing Shares.
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END
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