30 September 2024
East Star Resources
Plc
("East Star" or the
"Company")
Half Year Report for the Six
Months Ended 30 June 2024
- Company
Update
East Star Resources Plc (LSE:EST),
which is exploring for copper in Kazakhstan, is pleased to present
its half year report for the six month period ended 30 June
2024.
Operational Highlights - 3 Geological Copper
Strategies
VMS Copper - Rudny Altai
Belt
·
Announced in April 2024 the publication of a
maiden JORC Inferred Mineral Resource for the Verkhuba Copper
Deposit of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead using a
whole deposit cutoff grade of 0.86% copper equivalent
·
Announced in April 2024 the initiation of a formal
process following third-party interest including opening a data
room for a potential joint venture, farm-out, or sale of
Verkhuba
o Further to the last update on 4 July 2024, while the Board
continues discussions with interested parties, including recent new
inbound interest, it has in addition determined that the Company
can add significantly more value to the asset and attract
additional partner and finance interest by advancing the resource,
metallurgical test work, mine planning, and approvals,
demonstrating its low cost development potential and so intends on
progressing the project
Copper Porphyry - Balkash-Ili
Volcanic Arc
·
Announced in January 2024 a grant of US$0.5
million under the 2024 BHP Xplor programme to initiate a copper
porphyry exploration strategy in Kazakhstan
o Awarded first copper porphyry exploration licence (Ayagoz) in
February 2024 - 79 km2 tenement with a 3km long silica
lithocap located ~80km north of the large Aktogay copper mine
(~2.5Bt @ 0.39% copper)
o Awarded second copper porphyry exploration licence (Snowy) in
March 2024 - 121 km2 tenement,
with a 6km long and 3km wide silica lithocap, located
~150km north of the large Kounrad copper mine and smelter (~800Mt @
0.62% copper and up to 0.76g/t gold)
§ Conducted
extensive soil sampling and spectral analysis of samples taken from
both licences - analysis ongoing
Sediment-hosted
Copper
·
Announced in February 2024 a joint venture
agreement with Getech Group Plc (AIM: GTC), a world-leading locator
of subsurface resources, to explore for sediment-hosted copper
deposits in Kazakhstan - analysis ongoing
Corporate Highlights
·
Chris van Wijk, a geologist who developed the
porphyry exploration strategy with East Star, joined the Board in
January 2024 and became Technical Director in February
2024
·
David Minchin stood down from his position as a
Non-Executive Director in May 2024 due to his other business
commitments
Sandy Barblett, Non-Executive Chairman,
commented:
"Kicking off the year with an endorsement and grant from BHP
Xplor was a major catalyst for the Company as we were one of only
six successful selectees from more than 500 applications. We've
grown bigger in terms of people and targets and undoubtably
the Company's prospects have improved dramatically as a result of
this programme. We're enormously grateful to BHP for the
opportunity, their wisdom and their support. The Company now has a
three-pronged copper strategy, pursuing infrastructure-led VMS
deposits, as well as Tier 1 porphyry and sediment-hosted copper
deposits. The Company has refined its focus to copper - a strategic
transition metal which is facing a medium and long term supply
deficit and is the subject of recent M&A actions by global
majors. New sources of supply are urgently needed, and Kazakhstan
is perfectly positioned to contribute. East Star has over the past
couple of years positioned itself as a go-to explorer, with boots
on the ground, for accessing this opportunity in
Kazakhstan.
Activity in the first half was dominated by executing the BHP
Xplor programme and its associated learnings, undertaking
significant initial fieldwork on the porphyry licences, delivering
a maiden JORC copper resource at Verkhuba and positioning the
Company to capture the maximum value from that Verkhuba asset in
due course.
Through the period, the Company continued regional exploration
on the Rudny Altai VMS licences and conducted additional desktop
work and geological field work on Verkhuba. We believe we can add
significantly to the value of Verkhuba by increasing confidence in,
and potentially growing, the resource, and understanding of the
economics by conducting scoping and pre-feasibility
studies.
Having been active in the field over the summer, our attention
is turning to forthcoming high-impact drilling on new VMS targets
in addition to further drilling at Verkhuba. Further success on
this prolific belt with its existing infrastructure and low
economic threshold would add more assets which are amenable to a
'quick-to-market' development at a time when copper is in high
demand. We look forward to a busy second half of the
year."
East Star
Resources Plc
Alex Walker, Chief Executive
Officer
Tel: +44 (0)20 7390 0234 (via Vigo
Consulting)
SI
Capital (Corporate Broker)
Nick Emerson
Tel: +44 (0)1483 413 500
Peterhouse Capital Limited (Corporate
Broker)
Peter Greensmith
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob
Tel: +44 (0)20 7390 0234
About East
Star Resources Plc
East Star Resources is focused on the discovery
and development of copper and other strategic minerals required for
the energy revolution. With eight licences covering >1,000 km²
in three mineral rich districts of Kazakhstan, East Star is
undertaking an intensive exploration programme, applying modern
geophysics to discover minerals in levels that were not previously
explored. East Star's most advanced project is a copper deposit on
the world-class Rudny Altai VMS Belt where the Company delivered a
JORC compliant inferred resource of 20.3Mt @ 1.16% copper, 1.54%
zinc and 0.27% lead close to infrastructure, within trucking
distance of third-party mills with excess capacity. East Star's
management are based permanently on the ground, supported by local
expertise, and a joint venture with the state mining company on
certain projects. In 2024, East Star was selected to receive grant
funding through the BHP Xplor programme for copper porphyry
exploration.
Visit our
website:
www.eaststarplc.com
Follow us on
social media:
LinkedIn: https://www.linkedin.com/company/east-star-resources/
X (formerly Twitter): https://twitter.com/EastStar_PLC
Subscribe to
our email alert service to be notified whenever East Star releases
news:
www.eaststarplc.com/newsalerts
The person who
arranged for the release of this announcement was Alex Walker, CEO
of the Company.
This announcement contains inside information
for the purposes of Article 7 of Regulation 2014/596/EU which is
part of domestic UK law pursuant to the Market Abuse (Amendment)
(EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement, this inside information (as
defined in UK MAR) is now considered to be in the public
domain.
CHAIRMAN'S
STATEMENT
Introduction
I am pleased to present the half year report
for the six months ended 30 June 2024 (the "Period").
During the Period, East Star continued to
develop its strategy to unlock the copper potential of Kazakhstan,
a metal which has soared in value due to looming supply shortages.
The Company now has three copper exploration strategies in
play:
·
Volcanogenic Massive
Sulphide ("VMS") copper including the discovery
of the Verkhuba Deposit with a maiden JORC Mineral Resource
Estimate ("MRE") of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27%
lead in an infrastructure-rich region, amenable to a low capex
development
·
Copper
porphyry exploration (supported in the Period
by BHP Xplor), targeting multiple opportunities to discover a tier
1 deposit
·
Sediment-hosted
copper through an initial targeting partnership
with Getech at no cost to East Star
In the Board's opinion, your Company could not
be targeting a better metal in a better country than copper in
Kazakhstan at this time. The anticipated global supply deficit has
slowed from recent investment bank predictions of a significant
shortfall in 2024; however, the outlook remains extremely robust
with demand vastly outstripping supply in the medium to long term.
Majors are hunting for, and building, more copper exposure, and
only new discoveries in viable jurisdictions can address this
imbalance at scale. We believe Kazakhstan will be a leader among
those emerging jurisdictions, with its vast mineral endowment, low
operating costs, proximity to Europe and Asia, and supply
relationships with the EU and UK.
East Star has over the past couple of years,
accelerated by the BHP Xpor programme in the Period,
positioned itself as a go-to explorer, with boots on the ground,
for accessing this opportunity in Kazakhstan.
Review of
Operations
VMS
Copper
Verkhuba Copper
Deposit
Having established the target from nearly
47,000 metres of historical drilling, followed by our own drilling
in 2023, in March 2024, we were able to instruct independent
experts, AMC Consultants, to produce a maiden JORC Inferred Mineral
Resource Estimate ("MRE") for the Verkhuba Copper Deposit. This
resulted in the publication in April 2024 of the MRE comprising
20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead using a whole
deposit cutoff grade of 0.86% copper equivalent. The publication of
the MRE represented a significant milestone for East Star. In a
little over a year and one exploration season, we had transformed a
historical copper deposit into a large JORC Inferred Mineral
Resource in an infrastructure-rich region. From that point, the
Company became underpinned not only by its highly prospective
exploration licences but by a significant critical metal asset in
the ground with further upside potential. At over 20Mt, Verkhuba is
already in the top third of this style of VMS deposit globally.
With copper at around $9,000 per tonne and the prospect of a low
capex development, we believe Verkhuba to hold considerable
value.
Others shared our view and third-party interest
in Verkhuba emerged in the Period, triggering our initiation of a
formal process including the opening of a data room for a potential
joint venture, farm-out, or sale of the deposit.
While companies remain in the data room, we
believe we can add significantly to the value of Verkhuba
by increasing confidence in, and potentially
growing, the resource, and understanding of the economics by
conducting scoping and pre-feasibility studies.
Although the process and some associated
discussions remain ongoing, for now the Company remains the sole
operator of the future work programme for 2024 to progress the open
pit development concept through to a stage where economic
feasibility can be demonstrated.
Other VMS Targets
Elsewhere on our Rudny Altai VMS belt licences,
since the summer our exploration team, led by Exploration Manager
Tremain Woods, has been helping better define our geology and
refine numerous targets to a drillable number in a forthcoming
programme. Multiple copper occurrences have been observed - all a
short distance from the historical Nikolaevsky deposit (40Mt @ 2.4%
copper, 3.2% zinc, and 1.1 g/t gold) - which are well served by
infrastructure. Some 48 targets have been assessed and ranked, with
high-impact drilling expected to occur on at least three new VMS
targets this year in addition to further drilling at
Verkhuba.
Copper Porphyry
Grant from BHP Xplor for Copper Porphyry
Exploration on the Balkash-Ili Magmatic Arc
We were delighted to announce in January 2023
that East Star had been selected to receive a grant of US$0.5
million through the 2024 BHP Xplor programme to initiate a copper
porphyry exploration strategy in Kazakhstan. We are extremely
proud that BHP chose to work with East Star and provide
non-dilutive grant funding to look for major new copper porphyry
deposits in the region. Porphyry deposits are the primary deposit
style for copper production globally and Kazakhstan is
host to several exceptional but significantly underexplored regions
that contain world-class copper porphyry mines.
In February 2024, we were awarded our first
copper porphyry exploration licence (Ayagoz) a 79
km2 tenement with a 3km long silica lithocap
located ~80km north of the large Aktogay open pit copper mine
(~2.5Bt @ 0.39% Cu).
In March 2024, we were awarded a second
copper porphyry exploration licence (Snowy) - a 121
km2 tenement with a 6km long and 3km wide
silica lithocap, located ~150km north of the large Kounrad open pit
copper mine and smelter (~800Mt @ 0.62% Cu and up to 0.76g/t Au).
The licence shows historical soil anomalism indicating its
potential prospectivity for a copper porphyry deposit.
During the Period, the Company undertook
extensive soil sampling and spectral analysis of 2,800 samples
taken from the Ayagoz and Snowy licences. We were really impressed
with the speed and quality of the work our team and contractors had
completed. When combined with the geochemistry results, we will
have a detailed map of the area, inferring the depth of the
porphyry target. The soils will also assist with the assessment of
the historical artisanal gold mines around Snowy and their
potential to contain larger epithermal gold deposits. The
geochemical results from these two programmes will dictate the
follow-on work programme and provide information that will assist
in targeting throughout the rest of this proven mineral
belt.
Sediment-Hosted Copper Exploration JV
with Getech
In February 2024, we announced that we had
entered into a joint venture agreement with Getech, a world-leading
locator of subsurface resources, to explore for sediment-hosted
copper deposits in Kazakhstan, which already hosts one of the
world's largest such deposits in Dzhezkazgan (22Mt contained
copper). The JV is being conducted through a wholly owned East Star
subsidiary established specifically for this purpose. At no upfront
cost to East Star, this play-type added a third geological strand
to East Star's copper exploration strategy in addition to VMS and
porphyry. The Getech partnership combines proprietary datasets and
basin analysis capabilities with East Star's sediment-hosted copper
exploration expertise and capabilities. The results of analysis are
pending. Once completed, fieldwork will be undertaken by the
Company before any initial licence applications are
made.
Board
Changes
Alongside the BHP Xplor grant, we were pleased
to announce the appointment of Chris van Wijk initially as a
Non-Executive Director and subsequently in February 2024 as the
Technical Director of the Company. Mr van Wijk is an experienced
geologist who specialises in project evaluation and project
generation and developed the porphyry exploration strategy with
East Star. He brings a wealth of relevant experience, including
base metal and gold exploration in Africa, Europe,
the Americas, and Australia as well as joint venture
management and project evaluation for major mining companies
including BHP, IAMGOLD, First Quantum Minerals and Fortescue Metals
Group. Mr van Wijk's technical expertise is a valuable addition to
our Board and exploration portfolio. He brings outstanding
geological pedigree, particularly regarding sediment-hosted copper
and porphyry exploration which, when paired with East Star's proven
ability to efficiently and effectively execute exploration
in Kazakhstan, will take the Company to the next
level.
In May 2024, David Minchin decided not to stand
for re-election as a Non-Executive Director of the Company at the
Annual General Meeting ("AGM") due to his other business
commitments. Accordingly, he retired as a director with effect from
the AGM. East Star wishes to thank Mr Minchin for his valuable
contribution over the last two years as the Company has listed on
the London Stock Exchange and made significant progress as a copper
explorer in Kazakhstan.
Key Financial
Indicators
·
Cash and cash equivalents at period end
were £411,000
·
Profit before taxation for the period
was £9,000
· The
Group held net assets at period end of £2,891,000
Outlook
Kicking off the year with an endorsement and
grant from BHP Xplor was a major catalyst for the Company as we
were one of only six successful selectees from more than 500
applications. We've grown bigger in terms of people and targets and
undoubtably the Company's prospects have improved dramatically as a
result of this programme. We're enormously grateful to BHP for the
opportunity, their wisdom and their support.
Having been active in the field over the
summer, our attention is turning to forthcoming high-impact
drilling on new VMS targets. Further drilling is also expected to
occur at Verkhuba as we progress the open pit development concept
through to a stage where economic feasibility can be demonstrated
as a precursor to a mining licence.
Further success on this prolific belt with its
existing infrastructure and low economic threshold would add more
assets which are amenable to a 'quick-to-market' development at a
time when copper is in high demand. We look forward to a busy
second half of the year.
Sandy
Barblett
Non-Executive Chairman
30 September 2024
EAST STAR
RESOURCES PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE 6 MONTH
PERIOD ENDING 30 JUNE 2024
1. General
information
East Star Resources Plc was incorporated under
the Companies Act 2006 on 17 November 2020 in England and Wales
under the name Cawmed Resources Limited and remains domiciled there
with Registered Number 13025608. The Company subsequently changed
its name to East Star Resources Limited on 27 January 2021 and on
3rd March 2021 re-registered as a plc. The following condensed
consolidated interim financial statements are consolidated to
include the Company and all its subsidiaries ("the
Group").
The address of its registered office
is Eccleston Yards, 25 Eccleston Place, London SW1W 9NF, United
Kingdom.
The principal activity of the Group
is to explore opportunities in the natural resources sector
specifically in relation to gold and copper extraction. In prior
periods the Company successfully completed the acquisition of
Discovery Ventures Kazakhstan ("DVK"), a Kazakhstan based
subsidiary which jointly holds multiple exploration licenses.
During this period the Group has under taken significant
exploration activities across these licenses and regularly reported
to the market on the immense potential of the area.
2. Accounting
policies
IAS 8 requires that management shall
use its judgement in developing and applying accounting policies
that result in information which is relevant to the economic
decision-making needs of users, that are reliable, free from bias,
prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
2.1 Basis of
preparation
The unaudited condensed consolidated
interim financial statements ("interim financial statements") have
been prepared in accordance with International Accounting Standard
34 "Interim Financial Reporting" (IAS 34).
The interim financial statements do
not include all disclosures that would otherwise be required in a
complete set of financial statements but have been prepared in
accordance with the existing accounting policies of the
company.
The interim financial statements for
the 6-month period from 1 January 2024 to 30 June 2024 are
unaudited. Comparatives have been provided for the comparable
period ending 30 June 2023.
The interim financial statements have
been prepared using the measurement bases specified by IFRS for
each type of asset, liability, income and expense.
The interim financial statements do
not constitute statutory accounts within the meaning of section 434
of the Companies Act 2006. The accounting policies adopted are
consistent with those applied in the Company's last audited annual
financial statements ending 31 December 2023. and can be viewed on
the Company's website (www.eaststarplc.com).
The functional currency for each
entity in the Group is determined as the currency of the primary
economic environment in which it operates. The functional currency
of the Company's subsidiaries is the Kazakhstan Tenge. The
presentational currency of the Group is Pounds Sterling as this is
the functional currency of the parent entity and also the currency
in which equity fundraising has been facilitated. Amounts have been
rounded to the nearest £'000.
The performance of the Group is not
affected by seasonal factors and the risk factors applicable to the
Group have not changed materially since the publication of the
annual report and financial statements for the period ending 31
December 2023.
New standards,
amendments and interpretations adopted by the
Group
During the current period the Group adopted all
the new and revised standards, amendments and interpretations that
are relevant to its operations and are effective for accounting
periods beginning on 1 January 2024. This adoption did not have a
material effect on the accounting policies of the Group.
New standards,
amendments and interpretations not yet adopted by the
Group.
The standards and interpretations that are
relevant to the Group, issued, but not yet effective, up to the
date of these interim Financial Statements have been evaluated by
the Directors and they do not consider that there will be a
material impact of transition on the financial
statements.
2.2 Going
concern
The Directors have assessed the Group's ability
to continue as a going concern and are satisfied that the Group has
adequate resources to continue in operational existence for the
foreseeable future. The Group's auditors included a material
uncertainty related to going concern in the last annual report
based on the ability of the Group to source additional funding in
the 12 months from signoff of the annual report for 31 December
2023. The Directors are confident in the ability of the Group to
satisfy this condition and hence continue to adopt the going
concern basis in preparing these interim financial
statements.
2.3 Risks and
uncertainties
The Directors continuously assess and monitor
the key risks of the business. The business has not materially
changed since the end of the last period and hence risks pertaining
to the business remain materially similar. Overall the Board feels
that the team and risk mitigation factors that are in place are
sufficient to reasonably deal with any risks that may
arise.
3. Critical
accounting estimates and judgements
In the application of the Group's accounting policies, the Directors are required to make
judgements, estimates and assumptions about the carrying amount of
assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the
estimate is revised, if the revision affects only that period, or
in the period of the revision and future periods if the revision
affects both current and future periods. The areas involving a
higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial
statements, are disclosed below:
Recoverable value of
exploration assets - Note 7
Costs capitalised in respect of the
Group's mining assets are required to be assessed for impairment
under the provisions of IFRS 6. Such an estimate requires the Group
to exercise judgement in respect of the indicators of impairment
and also in respect of inputs used in the models which are used to
support the carrying value of the assets. Such inputs include
estimates of mineral reserves, production profiles, commodity
prices, capital expenditure, inflation rates, and pre-tax discount
rates that reflect current market assessments of (a) the time value
of money; and (b) the risks specific to the asset for which the
future cash flow estimates have not been adjusted.
For the year ended 31 December 2023,
the Directors made an assessment and concluded that it is
appropriate to process impairment charges in the year specifically
relating to licenses held within the joint venture agreement held
with Phoenix Mining Limited in relation to the rare earths
exploration. As this agreement was terminated the Directors
believed it was necessary to impair the entirety of the
investment.
During the current period, the
Directors concluded that, since 31 December 2023, circumstances
have not changed since then to indicate that there would be any
impairment at 30 June 2024.
4. Segment
reporting
The Group manages its operations in two
segments, being exploration activities in Kazakhstan and
corporate functions in the United Kingdom. The results of these
segments are regularly reviewed by the board as a basis for the
allocation of resources, in conjunction with individual investment
appraisals, and to assess their performance.
Contributions per segment to loss before
taxation are detailed below:
|
|
United
Kingdom
|
|
Kazakhstan
|
|
Total
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
Administrative expenses
|
(225)
|
|
(160)
|
|
(385)
|
|
Other income
|
-
|
|
394
|
|
394
|
|
Operating loss from continued operations per reportable
segment
|
(225)
|
|
234
|
|
9
|
|
|
|
|
|
|
|
|
Reportable segment assets
|
364
|
|
2,596
|
|
2,784
|
|
Reportable segment
liabilities
|
(28)
|
|
(42)
|
|
(49)
|
|
Total
|
336
|
|
2,554
|
|
2,891
|
5.
Administrative expenses
|
|
Period ended
30 June 2024
£'000
|
|
Period ended
30 June 2023
£'000
|
|
Consultancy expense
|
(36)
|
|
(135)
|
|
Professional fees
|
(50)
|
|
(53)
|
|
Wages and salaries
|
(90)
|
|
(44)
|
|
Depreciation
|
(2)
|
|
(7)
|
|
Foreign exchange
|
(83)
|
|
36
|
|
Other administrative expenses
|
(124)
|
|
(57)
|
|
|
(385)
|
|
(260)
|
6. Other
income
Other income in the period of £394,000 relates
to monies received from BHP under the 2024 BHP Xplor programme to
initiate a copper porphyry exploration strategy
in Kazakhstan.
|
|
Period ended
30 June 2024
£'000
|
|
Period ended
30 June 2023
£'000
|
|
BHP Xplor program
|
394
|
|
-
|
|
|
394
|
|
-
|
7. Earnings
per share
The calculation for basic and diluted earnings
per ordinary share is based on the total comprehensive loss after
income tax attributable to equity shareholders for the period and
is as follows:
|
|
Unaudited
|
Unaudited
|
|
|
6 month period ended
30 June
2024
|
6 month period ended
30 June
2023
|
|
Net profit / (loss) for the period attributable to
ordinary equity holders for continuing operations (£'000)
|
9
|
(260)
|
|
Weighted average number of ordinary shares in
issue
|
219,517,164
|
182,250,164
|
|
Basic and diluted
earnings per share for continuing operations (pence)
|
0.004
|
(0.143)
|
There is no difference between the
diluted loss per share and the basic loss per share presented.
Share options and warrants could potentially dilute basic earnings
per share in the future but were not included in the calculation of
diluted earnings per share as they are anti-dilutive for the period
presented. See note 23 for further details.
8. Exploration
& evaluation assets
|
|
£'000
|
|
Opening balance - 1 July
2023
|
2,543
|
|
Exploration expenditure across
licenses
|
613
|
|
Foreign exchange
|
(75)
|
|
Impairment on Licenses
|
(932)
|
|
As
at 31 December 2023
|
2,149
|
|
Exploration expenditure across
licenses
|
300
|
|
FX impact on additions
|
(18)
|
|
As
at 30 June 2024
|
2,431
|
Exploration and evaluation assets
relate specifically to mining licenses held in the Kazakhstan based
subsidiaries. The Group holds a total of 8 licenses plus one
jointly through a farm in arrangement with Phoenix Mining Ltd
across 3 mineral districts being specifically the Chu-Ili belt,
East Kostanay region and Rudny Altai belt. The majority of
investment in the assets has been across the Chu-Ili and Rudny held
licenses to date.
9. Investment
in subsidiaries
|
Name
|
Business Activity
|
Country of
Incorporation
|
Registered
Address
|
Percentage
Holding
|
|
Discovery Ventures Kazakhstan
Limited
|
Mineral
exploration
|
Kazakhstan
|
Astana
City, Yesil district, Sauran st., building 3/1, 717, Z05K6G,
Kazakhstan
|
100%
|
|
Chu Ili Resources ltd*
|
Mineral
exploration
|
Kazakhstan
|
Astana
City, Yesil district, Sauran st., building 3/1, 717, Z05K6G ,
Kazakhstan
|
80%
|
|
Rudny Resources ltd*
|
Mineral
exploration
|
Kazakhstan
|
Astana
City, Yesil district, Sauran st., building 3/1, 717, Z05K6G,
Kazakhstan
|
80%
|
|
Copperland Resources *
|
Mineral
exploration
|
Kazakhstan
|
Astana
City, Yesil district, Sauran st., building 3/1, 717, Z05K6G,
Kazakhstan
|
100%
|
|
MVLKAZ Holdings Limited
|
Holding
company
|
England
and Wales
|
Eccleston
Yards, 25 Eccleston Place, London, SW1W 9NF
|
100%
|
|
MVLKAZ Limited **
|
Mineral
exploration
|
Kazakhstan
|
Astana
City, Yesil district, Sauran st., building 3/1, 717, Z05K6G,
Kazakhstan
|
100%
|
*
Subsidiaries held indirectly through Discovery Ventures
Kazakhstan
**
Subsidiary held directly through MVLKAZ Holdings
Limited
10. Share
capital and share premium
|
|
Ordinary Shares
|
Share
Capital
|
Share Premium
|
Total
|
|
|
#
|
£'000
|
£'000
|
£'000
|
|
As at 30 June
2023
|
182,250,164
|
1,823
|
5,891
|
7,714
|
|
Issue of ordinary shares
|
36,400,000
|
364
|
182
|
546
|
|
As at 31 December
2023
|
218,650,164
|
2,187
|
6,052
|
8,239
|
|
Shares
issue upon exercise of warrants
|
867,000
|
9
|
17
|
26
|
|
As at 30 June
2024
|
219,517,164
|
2,196
|
6,069
|
8,265
|
11. Share
based payments reserve
The following options over ordinary shares have
been granted by the Group and are outstanding at period
end:
|
|
£'000
|
|
Opening balance - 1 January
2024
|
307
|
|
Employee options - charge release
for the period
|
22
|
|
As
at 30 June 2024
|
329
|
Warrants
|
|
As at 30 June
2024
|
|
|
Weighted average exercise
price
|
Number of
warrants
|
|
Brought forward at 1 January
2024
|
4.0p
|
45,213,505
|
|
Exercised in period
|
3.0p
|
(867,000)
|
|
Outstanding at 30 June 2024
|
3.4p
|
44,346,505
|
|
Exercisable at 30 June 2024
|
3.4p
|
44,346,505
|
Options
|
|
As at 30 June
2024
|
|
|
Weighted average exercise
price
|
Number of
options
|
|
Brought forward at 1 January
2024
|
4.8p
|
14,934,500
|
|
Vested in period
|
4.3p
|
2,125,584
|
|
Outstanding at 30 June 2024
|
4.8p
|
14,934,500
|
|
Exercisable at 30 June 2024
|
4.6p
|
5,875,584
|
12. Related
party transactions
Provision of services
During the period, £24,150 was paid to Orana
Corporate LLP for the provision of administrative and corporate
accounting services of which £3,630 remains owing at 30 June 2024.
Anthony Eastman is a Director of the Company and a partner of Orana
Corporate LLP.
Other than these there were no other related
party transactions.
13. Events
subsequent to period end
Exercise of warrants
Subsequent to period end, the following Company
receiving notification for the exercise of warrants over 333,333
new ordinary shares in the Company at an exercise price of 3 pence
per share, providing the Company with proceeds of £16,500, the
Company issued 333,333 ordinary shares.
Issue of performance shares to
CEO
Additionally, pursuant to the achievement of
the Mineral Resource Estimate performance threshold as announced on
8 July 2024, 75,000,000 Ordinary Shares were due to be issued to
the vendors of Discovery Ventures Kazakhstan Limited (the "DVK
Vendors") pursuant to the share purchase agreement with DVK
Vendors, and as set out in the Company's Prospectus dated 14
December 2021.
On 15 July 2024, only the 31,874,202
Performance Shares due to Mr Walker, being a director and employee
of the Company are to be issued with the balance of 43,125,798 to
be issued at such time in the future when the Company has all
necessary approvals to admit them to trading, which, inter-alia, is
likely to require the publication of an approved
Prospectus.