TIDMGGP
RNS Number : 4474F
Greatland Gold PLC
21 March 2022
The following amendments have been made to the 'Interim Results'
announcement released on 21 March 2022 at 07:00 under RNS No
4131F.
The formatting of the first row of each financial table has been
amended to ensure that it is legible.
All other details remain unchanged.
21 March 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK MARKET ABUSE REGULATIONS. ON PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Greatland Gold plc
("Greatland" or "the Company")
Interim Results
Greatland Gold plc (AIM:GGP), a mining development and
exploration company with a focus on precious and base metals, is
pleased to announce its interim results for the six months ended 31
December 2021.
Operational highlights
The Company made significant progress in the first six months of
the financial year:
Havieron
-- The Stage 1 Pre-Feasibility Study ("PFS") on the South-East
Crescent of the Havieron deposit was released on 12 October
2021
-- PFS revealed the tip of the Havieron iceberg with a fraction
of the initial resource supporting the total capex of the project,
justifying a fast start approach to early cashflow generation and
reinvesting back into Havieron development and infrastructure.
-- In addition, Havieron completed a total of 219,561m of
drilling from 266 holes, with all the latest completed holes
continuing to intersect mineralisation, and 19 reporting
significant mineralisation.
-- Post period on 3 March 2022, announced an updated mineral
resource that substantially increased Havieron Resource and
Reserve
Juri Joint Venture ("Juri JV")
-- Juri JV maiden drilling programme was completed on the
Paterson Range East and Black Hills tenements
-- Comprised nine holes for 4,958m testing six targets
-- Gold assays found mineralisation at the Saddle Reefs target
within Black Hills and first gold identified at the Goliath
Prospect
-- Advanced to Stage 2 to expand the exploration programme at
the Juri JV
Further exploration in the Paterson region
-- Drilling multiple new targets within the Scallywag licence,
following analysis of results of an airborne Electromagnetic survey
conducted last year and further geological interpretation of
regional aeromagnetic and gravity datasets
-- Other exploration analysis and detailed target identification
on Greatland's other 100% owned tenements
-- On 16 September 2021 acquired the 100% owned Pascalle
tenement, the 100% owned Taunton tenement and two tenement
applications for exploration licences in the Paterson Province of
Western Australia for a consideration of cash and shares.
Corporate and financial highlights
-- In November 2021, the Company issued 82,000,000 new ordinary
shares at an issue price of GBP0.145 per share for a total
consideration of GBP11,195,067, net of costs.
-- Expanded the management team and Board of Directors with the
following appointments:
-- Christopher Toon as Chief Financial Officer on 8 July
2021
-- Otto Richter as Group Mining Engineer on 11 August 2021
-- Paul Hallam as a Non-Executive Director, effective 1
September 2021
Shaun Day, Chief Executive Officer of Greatland Gold plc,
commented:
"We are very pleased with the strides we have taken in the first
six months of the year as we continued to deliver outstanding
progress at Havieron, ensured the Company remained well capitalised
to accelerate exploration activities and built up of the breadth
and capability of the Greatland management team and Board.
At Havieron, our joint venture with Newcrest released the Stage
1 Pre-Feasibility Study. The study revealed that a segment of the
initial resource covers the total capex of the project, supporting
Greatland's belief that the profile of Havieron makes it a globally
unique opportunity for bringing a low risk, low capex tier-one
gold-copper mine into production. In addition, the rapid
development and growth potential at Havieron was demonstrated by
the recently released mineral resource and reserve update which, in
only 10 months of further drilling, added more than 50% in total
gold content.
Looking ahead, 2022 is set to be an exciting and busy time for
Greatland with the extensive growth drilling campaign continuing at
Havieron and a Feasibility Study due by the December 2022 quarter.
We are also preparing for the upcoming launch of the 2022
exploration programme at the Juri JV building upon the results from
the initial campaign and focusing on drilling several high-priority
targets, along with ramping up exploration activities across our
100% owned targets. Greatland is in a strong operational position
with an experienced team to execute our growth plans to increase
shareholder value and build a company of significant scale."
Operational review
HAVIERON PROJECT - HAVIERON JOINT VENTURE, WESTERN AUSTRALIA
(GREATLAND: 30%)
The Havieron Project ("Havieron" or "Project") is currently in
development under a Joint Venture with Newcrest Mining Limited
("Newcrest"), Australia's largest gold producer. Havieron is
located just 45km from Newcrest's Telfer mine. This allows Havieron
to leverage Telfer's existing infrastructure and processing plant
to significantly reduce the project's capital expenditure and
carbon impact for a low cost pathway to development under an ore
tolling arrangement.
Havieron was discovered by Greatland in 2018 and has become
established as one of the most exciting long life gold-copper
deposits in development worldwide. It provides Greatland with a
strategic position in the Paterson Province of Western Australia,
one of the leading frontiers for the discovery of tier-one
gold-copper deposits. Newcrest assumed management of the Joint
Venture in May 2019 and has since been undertaking the ore body
definition and technical studies required to support regulatory
approvals and investment decisions for a staged development
plan.
The Stage 1 Pre-Feasibility Study (PFS) on the South-East
Crescent of the Havieron deposit was released on 12 October 2021.
The study outcome was positive, showing that a fraction of the
initial resource supported the total capital of the project,
justifying a fast start approach to early cashflow generation and
reinvesting back into Havieron development and infrastructure. This
supports the Company's belief that the profile of Havieron makes it
a globally unique opportunity for bringing a low risk, low capital
tier-one gold-copper mine into production.
On 9 December 2021, the Company announced the joint venture had
completed a total of 219,561m of drilling from 266 holes, with all
the latest completed holes continuing to intersect mineralisation,
and 19 reporting significant mineralisation. Key updates to the
development and exploration of Havieron during the period were as
follows:
-- 24 new drill holes, including 20 holes from the Infill
Drilling programme and 4 from the Growth Drilling programme.
-- Significant mineralisation was reported in 19 of the new
holes.
-- A further 10 drill holes have been completed and are awaiting
assay.
-- Infill drilling within the South Eastern Crescent Zone
Inferred Mineral Resource supports the modelled grade and thickness
within the South East Crescent Zone Mineral Resource.
-- Growth drilling continued to show potential for resource
additions outside the existing Inferred Mineral Resource, including
a mineralised zone 100m below and 100m to the north-west of prior
grade holes.
-- Drilling to test geophysical targets outside of the known
Havieron system commenced at Havieron North, and Zipa.
-- All drilling is now focused on growth programs to continue
into 2022 with 6 drill rigs operational.
-- Construction activities are progressing well with exploration
decline advanced 245 metres.
-- Planning commenced for the first ventilation shaft.
In December 2021, Newcrest issued a notice to the Company to
begin the process under the Joint Venture Agreement ("JVA") to
exercise the option to acquire an additional 5% interest in the
Havieron Joint Venture from Greatland at fair market value, as
determined under the JVA principles. Under the JVA, if the option
exercise price cannot be agreed, each party is thereafter required
to notify the other of its assessment of fair market value. If both
parties' assessments are within 10% of each other, the option
exercise price will be the average of those assessments. If both
parties' assessments are not within 10% of each other, the parties
will proceed to independent expert valuer determination, with the
expert being required to determine which of the fair market values
nominated by the parties is to be the option exercise price.
Subsequent to the period end, on 2 March 2022 both parties
agreed to some minor modifications to the option process which
included increasing the valuation range noted above from 10% to
20%.
Following agreement or determination of the option exercise
price, Newcrest has 30 business days to exercise its option to
acquire the additional 5% interest. Proceeds from the exercise will
first be used to repay the outstanding balance under the existing
Newcrest loan facility.
As at the date of this report, both parties continue to have
discussions regarding the acquisition of the additional 5% interest
in the Havieron Joint Venture.
As outlined in previous announcements, most recently on 9
December 2021, following delivery of a Pre-Feasibility Study and
meeting the relevant expenditure commitment, Newcrest is entitled
(on the terms of the JVA) to an additional 10% joint venture
interest, and exercising this entitlement will result in an overall
joint venture interest of 70% Newcrest (30% Greatland). If the
option referred to above is exercised, Newcrest will be entitled to
an overall joint venture interest of 75% (Greatland 25%).
In addition, on 3 March 2022 Greatland announced a Havieron
Mineral Resource update. This increased the Mineral Resource,
including Ore Reserves, to 5.5 million oz Au and 218kt Cu or 6.5M
oz AuEq, an increase of 2.1 million oz Au Eq since the last Mineral
Resource update. Probable Ore Reserves now stand at 2.4 million oz
Au and 109kt Cu or 2.9M oz AuEq compared to the 1.7 million oz AuEq
in the Initial Ore Reserve estimation. In addition to the Mineral
Resources within the Havieron Breccia complex, growth drilling has
now defined an initial Mineral Resource within the separate Eastern
Breccia complex. This is the first Mineral Resource in a
mineralised system outside the Havieron Breccia system and remains
open at depth and to the south. This Eastern Breccia Mineral
Resource does not capture the recent high grade intercepts to its
south, which is of similar grade to the South East Crescent Zone.
The updated Mineral Resource incorporated an additional 10 months
of consistently impressive drilling results since the February 2021
drilling cut off used for the last Mineral Resource update.
100% OWNED PROJECTS
Greatland has multiple 100% owned projects across Australia:
-- Scallywag project - Adjacent to the Havieron mining lease,
containing a further 20km of strike of Yeneena Group metasediments
located directly to the north-west of Havieron.
-- The Rudall and Canning projects - Applications expand
Greatland's landholding in the Paterson region by over 46% to 564
square kilometres. Both licences are considered to be prospective
for Havieron style gold-copper mineralisation and fit Greatland's
strategy to increase its exposure to the discovery of new tier-1
gold-copper deposits.
-- The Ernest Giles project - Located in central Western
Australia, covering an area of approximately 1950 square kilometres
with around 180km of strike of rocks prospective for gold. The
eastern Yilgarn Craton is one of the most highly mineralised areas
in Western Australia and is considered prospective for large gold
deposits.
-- The Panorama project - Consisting of three adjoining
exploration licences, covering 157 square kilometres, located in
the Pilbara region of Western Australia, in an area considered to
be highly prospective for gold and cobalt.
-- The Bromus project - Located 25 kilometres south-west of
Norseman in the southern Yilgarn region of Western Australia. It
consists of two licences, covering 87 square kilometres of
under-explored greenstone and intrusive granites of the Archean
Yilgarn Block at the southern end of the Kalgoorlie-Norseman
belt.
-- The Firetower project - Located in central north Tasmania,
Australia and covers an area of 62 square kilometres
-- The Warrentinna project - Located 60 kilometres north-east of
Launceston in north-eastern Tasmania and covers an area of 37
square kilometres with 15 kilometres of strike prospective for
gold.
Exploration and evaluation expenditure activity during the
period comprised of expenditure on the Group's projects, which
during the period predominately focussed on the following:
a) Drilling multiple new targets within the Scallywag licence,
following analysis of results of an airborne Electromagnetic survey
conducted last year and further geological interpretation of
regional aeromagnetic and gravity datasets; and
b) Other exploration analysis and detailed target identification
on Greatland's other 100% owned tenements.
Further details of the exploration projects can be found on
Company's website www.greatlandgold.com .
In addition, on 16 September 2021 Greatland entered into an
agreement with Province Resources Limited (ASX:PRL) to acquire the
100% owned Pascalle tenement, the 100% owned Taunton tenement and
two tenement applications for exploration licences in the Paterson
Province of Western Australia for a consideration of cash and
shares.
The Pascalle tenement is proximal to world class gold-copper
deposits with Havieron 20km to the East and Newcrest's Telfer Mine
14km to the West. All areas contain multiple magnetic and other
geophysical anomalies identified to date and which are untested by
drilling.
This is the Group's first licence acquisition since Havieron and
adds over 1,000km(2) of exploration ground in the Paterson region
expanding Greatland's strategic footprint in one of the most
prospective exploration areas for gold-copper deposits in
Australia.
The purchase agreement was as follows:
-- Greatland acquired the right, title and interest in the
Pascalle tenement from PRL for a consideration of A$50,000, free of
any encumbrance; and
-- PRL is the sole applicant of the applications for exploration
licences E45/5754 and E45/5755 (PRL Applications) and is the 100%
owner of Taunton tenement. Greatland will pay a consideration of
A$100,000 plus A$200,000 in cash or A$200,000 in fully paid
ordinary shares in the capital of Greatland in respect to the
withdrawal of the PRL Applications and sale and purchase of the
Taunton tenement, and if necessary, the sale and purchase of the
licences created if the PRL Applications are granted.
Settlement of the Pascalle tenement was finalised in December
2021 resulting in acquisition costs of GBP26,880 capitalised as an
exploration and evaluation asset during the six months ended 31
December 2021.
JURI JOINT VENTURE, WESTERN AUSTRALIA (GREATLAND: 49%)
The Juri Joint Venture consists of two exploration licences in
the prospective Paterson region, Black Hills and Paterson Range
East, under a Joint Venture with Newcrest. Newcrest has the right
to earn up to 75% interest by spending up to A$20m in total as part
of a two-stage farm-in over five years.
On 19 October 2021, Newcrest advanced to Staged 2 and earned an
additional 26% interest, resulting in Greatland's working interest
reducing from 75% to 49%. Greatland has currently continued in the
role of Manager for the Juri Joint Venture.
Key components of the Juri Joint Venture exploration activities
during the period were:
-- First phase of the drilling programme was completed on the
Paterson Range East and Black Hills tenements, which comprised nine
holes for 4,958m testing six targets.
-- All assay results received for the first phase.
-- Mineralisation found at Black Hills hole DHB003.
-- Ground Electromagnetic survey completed identifying several
promising EM conductor targets for 2022 drilling programme.
CORPORATE
Equity raising
In November 2021, the Company issued 82,000,000 new ordinary
shares at an issue price of GBP0.145 per share for a total
consideration of GBP11,195,067, net of costs.
Exchange losses
The Group has recognised a foreign exchange loss of GBP581,303
in the income statement as a result of the US$27,188,755 million
loan held by the Australian subsidiary with Newcrest Operations
Limited in respect of the Havieron Joint Venture. The functional
currency of the Australian subsidiary is Australian dollars while
the loan is denominated in US dollars. The unrealised foreign
exchange loss was incurred as result of the movements of the
Australian dollar against the US dollar during the period.
On consolidation, these balances are retranslated to sterling
(GBP) presentation currency.
People
On 8 July 2021 the Company announced the appointment of
Christopher Toon as Chief Financial Officer of the Company, in a
non-Board role with effect from 12 July 2021.
On 11 August 2021 the Company announced the appointment of Otto
Richter as Group Mining Engineer with effect from 16 August
2021.
On 25 August 2021 the Company announced the appointment of Paul
Hallam as a Non-Executive Director to the board, effective 1
September 2021.
Dividends
The Board of Directors do not recommend the payment of a
dividend (2020: Nil).
Significant events after the balance date
In December 2021, Newcrest issued a notice to the Company to
begin the process under the JVA to exercise the option to acquire
an additional 5% interest in the Havieron Joint Venture from
Greatland at fair market value, as determined under the JVA
principles. Under the JVA, if the option exercise price cannot be
agreed, each party is thereafter required to notify the other of
its assessment of fair market value. If both parties' assessments
are within 10% of each other, the option exercise price will be the
average of those assessments. If both parties' assessments are not
within 10% of each other, the parties will proceed to independent
expert valuer determination, with the expert being required to
determine which of the fair market values nominated by the parties
is to be the option exercise price.
Subsequent to the period end, on 2 March 2022 both parties
agreed to some minor modifications to the option process which
included increasing the valuation range noted above from 10% to
20%.
Following agreement or determination of the option exercise
price, Newcrest has 30 business days to exercise its option to
acquire the additional 5% interest. Proceeds from the exercise will
first be used to repay the outstanding balance under the existing
Newcrest loan facility.
As at the date of this report, both parties continue to have
discussions regarding the acquisition of the additional 5% interest
in the Havieron Joint Venture.
SAFETY PERFORMANCE
The Group's aim is to achieve and maintain a high standard of
workplace safety. In order to achieve this objective, the Group
provides training and support to employees and sets demanding
standards for workplace safety.
Enquiries:
Greatland Gold PLC +44 (0)20 3709 4900
Shaun Day info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated
Adviser)
Andrew Emmott/James Keeshan +44 (0)20 3368 3550
Berenberg (Joint Corporate Broker and Financial
Adviser)
Matthew Armitt/ Varun Talwar /Detlir Elezi +44 (0)20 3207 7800
Canaccord Genuity (Joint Corporate Broker
and Financial Adviser)
James Asensio/Patrick Dolaghan +44 (0)20 7523 8000
Hannam & Partners (Joint Corporate Broker
and Financial Adviser)
Andrew Chubb/Matt Hasson/Jay Ashfield +44 (0)20 7907 8500
SI Capital Limited (Joint Broker)
Nick Emerson/Alan Gunn +44 (0)14 8341 3500
Luther Pendragon (Media and Investor Relations)
Harry Chathli/Alexis Gore +44 (0)20 7618 9100
Notes for Editors:
Greatland Gold plc (AIM:GGP) is a mining development and
exploration company with a focus on precious and base metals . The
Company's flagship asset is the world-class Havieron gold-copper
deposit in the Paterson region of Western Australia, discovered by
Greatland and presently under development in Joint Venture with
Newcrest Mining Ltd.
Havieron is located approximately 45km east of Newcrest's Telfer
gold mine and, subject to positive decision to mine, will leverage
the existing infrastructure and processing plant to significantly
reduce the project's capital expenditure and carbon impact for a
low-cost pathway to development. An extensive growth drilling
programme is presently underway at Havieron with a maiden
Pre-Feasibility Study released on the South-East Crescent on 12
October 2021. Construction of the box cut and decline to develop
the Havieron deposit commenced in February 2021.
Greatland has a proven track record of discovery and exploration
success. It is pursuing the next generation of tier-one mineral
deposits by applying advanced exploration techniques in
under-explored regions. The Company is focused on safe, low-risk
jurisdictions and is strategically positioned in the highly
prospective Paterson region. Greatland has a total six projects
across Australia with a focus on becoming a multi-commodity mining
company of significant scale.
Condensed Consolidated statement of comprehensive income
for the six months ended 31 December 2021
Six months ended Six months ended
Note 31 Dec 2021 31 Dec 2020
GBP GBP
------------------------------------------------------------------------ ------ ----------------- -----------------
Continuing operations
Revenue - -
Exploration and evaluation expenses (1,793,379) (1,846,041)
Administration expenses (1,116,783) (842,171)
Operating loss (2,910,162) (2,688,212)
Other income - 12,902
Foreign exchange gains / (losses) 5 (581,303) -
Finance income 8 865
Finance costs (97,229) -
Loss before tax (3,588,686) (2,674,445)
Income tax expense - -
------------------------------------------------------------------------ ------ ----------------- -----------------
Loss for the period (3,588,686) (2,674,445)
------------------------------------------------------------------------ ------ ----------------- -----------------
Other comprehensive income:
Exchange differences on translation of foreign operations 6,927 56,780
Total comprehensive income for period attributable to equity holders of
parent (3,581,759) (2,617,665)
------------------------------------------------------------------------ ------ ----------------- -----------------
Earnings per share (EPS):
Basic EPS attributable to ordinary equity holders of the parent
(pence)(a) (0.09) (0.07)
Diluted EPS attributable to ordinary equity holders of the parent
(pence)(a) (0.09) (0.07)
------------------------------------------------------------------------ ------ ----------------- -----------------
The consolidated income statement should be read in conjunction
with the accompanying notes.
(a) For the purpose of calculating basic earnings per share, the
weighted average number of the Group shares outstanding during the
period was 3,978,408,767 (31 December 2020: 3,825,916,868). The
weighted average number of the Group shares including outstanding
options is 4,081,408,767 (31 December 2020: 3,977,666,868).
Dilutive earnings per share is not included on the basis inclusion
of potential ordinary shares would result in a decrease in loss per
share, and is considered anti-dilutive.
Condensed Consolidated Balance Sheet
as at 31 December 2021
Note 31 Dec 2021 30 Jun 2021
GBP GBP
---------------------------------- ------- -------------- --------------
ASSETS
Exploration and evaluation asset 26,880 -
Mine development 4 22,805,476 17,091,622
Right of use asset 306,642 341,912
Property, plant and equipment 100,076 120,356
Total non-current assets 23,239,074 17,553,890
Cash and cash equivalents 14,286,415 6,212,057
Trade and other receivables - 78,198
Other current assets 222,068 154,215
---------------------------------- ------- -------------- --------------
Total current assets 14,508,483 6,444,470
---------------------------------- ------- -------------- --------------
TOTAL ASSETS 37,747,557 23,998,360
---------------------------------- ------- -------------- --------------
LIABILITIES
Trade and other payables (1,063,690) (3,355,958)
Lease liabilities (69,245) (54,947)
Provisions (101,003) (102,607)
---------------------------------- ------- -------------- --------------
Total current liabilities (1,233,938) (3,513,512)
---------------------------------- ------- -------------- --------------
Borrowings 5 (20,149,282) (12,189,790)
Lease liabilities (248,017) (293,452)
Provisions (3,876,390) (3,846,713)
Total non-current liabilities (24,273,689) (16,329,955)
---------------------------------- ------- -------------- --------------
TOTAL LIABILITIES (25,507,627) (19,843,467)
---------------------------------- ------- -------------- --------------
NET ASSETS 12,239,930 4,154,893
---------------------------------- ------- -------------- --------------
EQUITY
Share capital 6 4,046,547 3,947,270
Share premium 6 35,593,273 24,064,307
Reserves 577,486 532,177
Retained earnings (27,977,376) (24,388,861)
---------------------------------- ------- -------------- --------------
TOTAL EQUITY 12,239,930 4,154,893
---------------------------------- ------- -------------- --------------
The consolidated balance sheet should be read in conjunction
with the accompanying notes.
Condensed Consolidated Statement of Changes in Equity
for the six months ended 31 December 2021
-------------------------------------------------------------------------------------------------------- ------------
Foreign Share
currency based
Share Share Merger translation payment Retained Total
capital premium reserve reserve reserves earnings equity
Note GBP GBP GBP GBP GBP GBP GBP
----------------------- ---------- ----------- ---------- -------------- ----------- ------------- ------------
At 1 July 2021 3,947,270 24,064,307 225,000 129,585 177,592 (24,388,861) 4,154,893
Loss for the
period - - - - - (3,588,686) (3,588,686)
Other
comprehensive
income - - - 6,927 - - 6,927
------------------- ---------- ----------- ---------- -------------- ----------- ------------- ------------
Total
comprehensive
loss for the
period - - - 6,927 - (3,588,686) (3,581,759)
Transactions with
owners
in their capacity
as
owners:
Share based
payments - - - - 38,553 - 38,553
Transfer on
exercise
of options - - - - (171) 171 -
Share capital
issued 6 99,277 12,223,899 - - - - 12,323,176
Cost of share
issue 6 - (694,933) - - - - (694,933)
------------------- ---------- ----------- ---------- -------------- ----------- ------------- ------------
Total
contributions
by and
distributions
to owners of the
Company 99,277 11,528,966 - - 38,382 171 11,666,796
------------------- ---------- ----------- ---------- -------------- ----------- ------------- ------------
Six months ended
on
31 December 2021 4,046,547 35,593,273 225,000 136,512 215,974 (27,977,376) 12,239,930
------------------- ---------- ----------- ---------- -------------- ----------- ------------- ------------
Foreign Share
currency based
Share Share Merger translation payment Retained Total
capital premium reserve reserve reserves earnings equity
Note GBP GBP GBP GBP GBP GBP GBP
---------------- ------ ---------- ----------- ---------- -------------- ---------- ------------- ------------
At 1 July 2020 3,760,207 19,878,782 225,000 178,320 372,953 (19,090,241) 5,325,021
Loss for the period - - - - - (2,674,445) (2,674,445)
Other comprehensive
income - - - 56,780 - - 56,780
------------------------ ---------- ----------- ---------- -------------- ---------- ------------- ------------
Total comprehensive
loss for the period - - - 56,780 - (2,674,445) (2,617,665)
Transactions
with owners
in their
capacity as
owners:
Share based payments - - - - 22,135 - 22,135
Transfer on exercise
of options - - - - (127,173) 127,173 -
Share capital issued 118,458 2,629,015 - - - - 2,747,473
------------------------ ---------- ----------- ---------- -------------- ---------- ------------- ------------
Total contributions
by and distributions
to owners of the
Company 118,458 2,629,015 - - (105,038) 127,173 2,769,608
------------------------ ---------- ----------- ---------- -------------- ---------- ------------- ------------
Six months ended on
31 December 2020 3,878,665 22,507,797 225,000 235,100 267,915 (21,637,513) 5,476,964
------------------------ ---------- ----------- ---------- -------------- ---------- ------------- ------------
The consolidated statement of changes in equity should be read
in conjunction with the accompanying notes.
Condensed Consolidated Statement of Cash Flows
for six months ended 31 December 2021
Six months Six months
ended ended
31 Dec 2021 31 Dec
GBP 2020
GBP
-------------------------------------------- ------------- ------------
Cash flows from operating activities
Loss for the period (3,588,686) (2,674,445)
Depreciation 20,280 55,319
Amortisation 35,270 -
Rehabilitation unwind 89,429 -
Share option charge 38,553 22,135
Unrealised foreign exchange loss 581,303 -
Lease liability interest expense 7,149 -
Increase in other receivables 78,198 (164,124)
Increase in payables and other liabilities (1,288,760) 1,154,217
Net cash inflow from operating activities (4,027,264) (1,606,898)
--------------------------------------------- ------------- ------------
Cash flows from investing activities
Interest received 8 865
Payments for exploration and evaluation (26,880) -
assets
Payments for mine development and
fixed assets (5,887,255) (61,107)
Net cash outflow from investing activities (5,914,127) (60,242)
--------------------------------------------- ------------- ------------
Cash flows from financing activities
Proceeds from issue of shares 12,323,175 2,747,473
Transaction costs from issue of shares (694,933) -
Proceeds from borrowings 6,443,147 -
Financing for joint venture assets - (1,224,282)
Repayment of lease obligations (38,286) (38,373)
Other income - 12,902
Net cash outflow from financing activities 18,033,103 1,497,720
--------------------------------------------- ------------- ------------
Net increase (decrease) in cash and (169,420
cash equivalents 8,091,712 )
Net foreign exchange differences (17,354) 43,004
Cash and cash equivalents at the beginning
of the period 6,212,057 6,022,745
--------------------------------------------- ------------- ------------
Cash and cash equivalents at the end
of the period 14,286,415 5,896,329
--------------------------------------------- ------------- ------------
The consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
notes to the interim financial report
for the six months ended 31 December 2021
1 Corporate information
The interim condensed consolidated financial statements of
Greatland Gold plc and its subsidiaries (collectively, the Group)
for the six months ended 31 December 2021 were authorised for issue
in accordance with a resolution of the Directors on 21 March
2022.
Greatland Gold plc is a company incorporated in England and
Wales whose shares are publicly traded on the AIM (AIM: GGP). The
nature of the operations and principal activities of the Company
are described in the Directors' report.
2 Basis of preparation
The interim consolidated financial statements for the six months
ended 31 December 2021 are general purpose condensed financial
statements prepared in accordance with IAS 34 Interim Financial
Reporting and prepared in accordance with UK-adopted international
accounting standards and are presented in sterling. The financial
information does not constitute statutory accounts within the
meaning of section 434 of the Companies Act 2006. The information
relating to the six month periods to 31 December 2021 and 31
December 2020 are unaudited.
The interim consolidated financial statements do not include all
the information and disclosures required in the annual financial
statements, and should be read in conjunction with the Group's
annual financial statements as at 30 June 2021 and considered
together with any public announcements made by Greatland Gold plc
during the half-year ended 31 December 2021. The annual report of
the Group as at and for the year ended 30 June 2021 is available at
www.greatlandgold.com . The report of auditors on those financial
statements was unqualified.
The accounting policies adopted are consistent with those
applied by the Group in the preparation of the annual consolidated
financial statements for the year ended 30 June 2021. The Group has
not early adopted any standard, interpretation or amendment that
has been issued but is not yet effective. Several amendments and
interpretations apply for the first time in 2021, but these do not
have a material impact on the interim condensed consolidated
financial statements of the Group.
Going Concern
The consolidated entity has incurred a loss before tax of
GBP3,588,686 for the six months ended 31 December 2021 and had a
net cash outflow of GBP9,941,391 from operating and investing
activities. At that date there were net current assets of
GBP12,239,930, with cash of GBP14,286,415. The loss resulted from
exploration costs and associated administrative related costs.
Given the Group's current positive cash position, the Directors
have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future. In
addition, the Group has access to a loan facility for its share of
Havieron Joint Venture expenditure up to US$50 million and is able
to significantly reduce expenditure on its own exploration programs
if it wishes to do so. The Group also has the ability to raise
capital for expansion purposes, if required and has demonstrated a
consistent ability to do so in the past, as well as potential to
debt fund its share of Havieron development.
Should the directors not achieve the matters set out above,
there is significant uncertainty whether the Group will continue as
a going concern and therefore whether they will realise their
assets and extinguish their liabilities in the normal course of
business and at the amounts stated in the financial report.
Having prepared forecasts based on current resources, assessing
methods of obtaining additional finance and assessing the possible
impact of COVID-19, the Directors believe the Group has sufficient
resources to meet its obligations for a period of 12 months from
the date of approval of these financial statements. Taking these
matters into consideration, the Directors continue to adopt the
going concern basis of accounting in the preparation of the
financial statements. The financial statements do not include the
adjustments that would be required should the going concern basis
of preparation no longer be appropriate.
The principal risks and uncertainties for the six month period
up to 31 December 2021 remained consistent with trends reported in
2021 Annual Report. Greatland continue to monitor areas of
increasing uncertainty, namely the evolving impacts of
COVID-19.
3 Segmental information
An operating segment is a component of the Group that engage in
business activities from which it may earn revenue and incur
expenditure and about which separate financial information is
available that is evaluated regularly by the Group's Chief
Operating Decision Makers (CODM) in deciding how to allocate
resources and in assessing performance.
Segment name Description
UK The UK sector consists of the parent company which
provides administrative and management services
to the subsidiary undertaking based in Australia.
------------------------------------------------------
Australia This segment consists of the development activities
for the Havieron Joint Venture in Western Australia
and exploration and evaluation activities throughout
Australia.
------------- ------------------------------------------------------
Segment information is evaluated by the executive management
team and is prepared in conformity with the accounting policies
adopted for preparing the financial statements of the Group.
Segment results
Income statement for the half-year ended UK Australia Group
31 December 2021 GBP GBP GBP
------------------------------------------ ---------- ------------ ------------
Revenue - - -
Exploration and evaluation costs - (1,774,469) (1,774,469)
Administration and other costs (572,845) (511,955) (1,084,800)
Operating loss (572,845) (2,286,424) (2,859,269)
Depreciation and amortisation expenses (12,567) (38,326) (50,893)
Other income - - -
Finance income 6 2 8
Foreign exchange losses - (581,303) (581,303)
Finance expense (1,992) (95,237) (97,229)
------------------------------------------ ---------- ------------ ------------
Loss before income tax (587,398) (3,001,288) (3,588,686)
Income tax expense - - -
------------------------------------------ ---------- ------------ ------------
Net loss for the half-year (587,398) (3,001,288) (3,588,686)
------------------------------------------ ---------- ------------ ------------
Adjustments and eliminations
Net finance income, finance costs and taxes are not allocated to
individual segments as they are managed on a Group basis.
Assets and Liabilities as at 31 December UK Australia Group
2021 GBP GBP GBP
------------------------------------------ ----------- ------------- -------------
Segment assets 12,990,667 24,756,890 37,747,557
Segment liabilities (346,032) (25,161,595) (25,507,627)
Income statement for the half-year ended UK Australia Group
31 December 2020 GBP GBP GBP
------------------------------------------ ---------- ------------ ------------
Revenue - - -
Exploration and evaluation costs - (1,790,722) (1,790,722)
Administration and other costs (498,775) (343,396) (842,171)
Operating loss (498,775) (2,134,118) (2,632,893)
Depreciation and amortisation expenses - (55,319) (55,319)
Other income 10,000 2,902 12,902
Finance income 10 855 865
Finance expense - - -
------------------------------------------ ---------- ------------ ------------
Loss before income tax (488,765) (2,185,680) (2,674,445)
Income tax expense - - -
------------------------------------------ ---------- ------------ ------------
Net loss for the half-year (488,765) (2,185,680) (2,674,445)
------------------------------------------ ---------- ------------ ------------
Assets and Liabilities as at 30 June UK Australia Group
2021 GBP GBP GBP
-------------------------------------- ---------- ------------- -------------
Segment assets 5,359,105 18,639,255 23,998,360
Segment liabilities (426,530) (19,416,937) (19,843,467)
4 Mine Development
31 Dec 30 Jun
2021 2021
GBP GBP
------------------------------------ ----------- -----------
Opening net carrying amount 17,091,622 -
Additions 4,770,961 16,827,186
Capitalised facility fees 182,644 -
Capitalised interest 933,650 264,436
Adjustment of currency translation (173,401) -
Closing net carrying amount 22,805,476 17,091,622
5 Borrowings
31 Dec 30 Jun
2021 2021
GBP GBP
---------------------------------------- ----------- -----------
Opening balance 12,189,790 -
Additions 6,398,238 11,572,961
Facility fees 182,644 -
Capitalised interest 933,650 264,436
Effect of foreign exchange revaluation 581,280 352,393
Adjustment of currency translation (136,320) -
---------------------------------------- ----------- -----------
Closing balance 20,149,282 12,189,790
The above amounts owing relate to a loan agreement with Newcrest
Operations Limited dated 29 November 2020 in respect of the
Havieron Joint Venture.
The loan has two parts being Facility A and Facility B with
values of US$20 million and US$30 million respectively. Facility B
came into effect in October 2021, when the Stage 4 commitment was
satisfied by Newcrest. Interest is calculated on the LIBOR rate
plus a margin of 8% pa. Interest is calculated every 90 days.
6 Share capital
Share Share premium
Balance as at 31 December 2021 capital GBP
GBP
--------------------------------------------- ---------- --------------
Movement in ordinary shares
As at the beginning of the reporting period 3,947,270 24,064,307
Shares issued during the period 99,277 12,223,899
Transaction costs on share issue - (694,933)
---------------------------------------------- ---------- --------------
As at the end of the reporting period 4,046,547 35,593,273
(a) The number of ordinary shares on issue was 4,046,547,171 at the end of the period
(b) The following issues of shares were made during the year:
(i) On 29 July 2021, 250,000 new ordinary shares at GBP0.03 per
share for a total consideration of GBP7,500 to Clive Latcham as a
result of a binding option exercise notice received
(ii) On 2 August 2021, 6,216,216 new ordinary shares at GBP0.025
per share for a total consideration of GBP155,405 from a block
listing authority of 10 February 2020
(iii) On 1 September 2021, 10,810,812 new ordinary shares at
GBP0.025 per share for a total consideration of GBP270,270 from a
block listing authority of 10 February 2020
(iv) 19 November 2021, the Company issued 82,000,000 new
ordinary shares at an issue price of GBP0.145 per share for a total
consideration of GBP11,890,000, with associated transaction costs
of GBP694,933
Contingently issuable shares
(i) As disclosed on 26 September 2016, as part of the
acquisition of the Havieron Project, the Company entered into a
purchase agreement with Pacific Trends Resources Pty Ltd (as
assigned) for an upfront payment of GBP13,500 in cash and
65,490,000 fully paid ordinary shares in the Company, and a
deferred payment of 145,530,000 fully paid ordinary shares in the
Company contingent on:
-- a bankable feasibility study having been completed and a
decision to mine having been made on Havieron; or
-- the Company assigning 75% or more of its right or interest in
Havieron to an unrelated third party.
(ii) As disclosed on 16 September 2021, the Company entered into
an agreement with Province Resources Limited to acquire the 100%
owned Taunton tenement and two tenement applications for
exploration licences in the Paterson Provision of Western Australia
for a consideration of cash and shares. Greatland will pay a
consideration of GBP80,640 plus GBP107,520 in cash or GBP107,520 in
fully paid ordinary shares in the capital of Greatland in respect
to the withdrawal of the PRL applications and sale and purchase of
the Taunton tenement, and if necessary, the sale and purchase of
the licences created if the PRL applications are granted.
The conditions attached to the contingently issued shares had
not yet been satisfied at the end of the reporting period, and as
such were not included in the diluted earnings per share
calculation at 31 December 2021.
7 Related Parties
(a) On 29 July 2021 the Company received a binding option
exercise notice from Clive Latcham for 250,000 options at GBP0.03
pence per share for a total consideration of GBP7,500.
(b) The following directors and officers of the Company
participated in the share subscription in November 2021 at an issue
price of GBP0.145 per share, as follows:
Director / Officers Number
of Shares GBP
Subscribed
-------------------------------------------- ------------ -------
Shaun Day (Chief Executive Officer) 375,000 54,400
Christopher Toon (Chief Financial Officer) 110,000 15,958
(c) There have been no other significant changes in the nature
of related parties or amounts during the period.
8 Dividends paid and proposed
No dividends were paid or proposed by the Directors. (2020:
GBPNil)
9 Capital Commitments
Exploration commitments
Ongoing exploration expenditure is required to maintain title to
the Group mineral exploration permits. No provision has been made
in the financial statements for these amounts as the expenditure is
expected to be fulfilled in the normal course of the operations of
the Group.
As disclosed on 16 September 2021, the Company entered into an
agreement with Province Resources Limited to acquire the 100% owned
Taunton tenement and two tenement applications for exploration
licences in the Paterson Provision of Western Australia for a
consideration of cash and shares. Refer to Note 6 for further
information.
There have been no other significant changes in capital
commitments during the period.
10 Significant events after the reporting date
In December 2021, Newcrest issued a notice to the Company to
begin the process under the JVA to exercise the option to acquire
an additional 5% interest in the Havieron Joint Venture from
Greatland at fair market value, as determined under the JVA
principles. Under the JVA, if the option exercise price cannot be
agreed, each party is thereafter required to notify the other of
its assessment of fair market value. If both parties' assessments
are within 10% of each other, the option exercise price will be the
average of those assessments. If both parties' assessments are not
within 10% of each other, the parties will proceed to independent
expert valuer determination, with the expert being required to
determine which of the fair market values nominated by the parties
is to be the option exercise price.
Subsequent to the period end, on 2 March 2022 both parties
agreed to some minor modifications to the option process which
included increasing the valuation range noted above from 10% to
20%.
Following agreement or determination of the option exercise
price, Newcrest has 30 business days to exercise its option to
acquire the additional 5% interest. Proceeds from the exercise will
first be used to repay the outstanding balance under the existing
Newcrest loan facility.
As at the date of this report, both parties continue to have
discussions regarding the acquisition of the additional 5% interest
in the Havieron Joint Venture.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR PPUQCWUPPGUG
(END) Dow Jones Newswires
March 21, 2022 06:52 ET (10:52 GMT)
Grafico Azioni Greatland Gold (LSE:GGP)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Greatland Gold (LSE:GGP)
Storico
Da Apr 2023 a Apr 2024
