TIDMTYM
RNS Number : 4054O
Tertiary Minerals PLC
29 May 2020
29 May 2020
TERTIARY MINERALS PLC
("Tertiary" or "the Company")
HALF-YEARLY REPORT 2020
Tertiary Minerals plc, the AIM-traded company building a
multi-commodity project portfolio, announces its unaudited interim
results for the six months ended 31 March 2020.
OPERATIONAL SUMMARY:
Pyramid Gold Project, Nevada, USA
-- The Company's first drill hole on the project was
successfully completed ahead of schedule and drilled to a total
depth of 137m
-- Intersection of 0.55m grading 2.01 g/t Au from 82.6m down
hole, confirming that the target zone is gold-mineralised
-- Further planned exploration work: Soil sampling to fully
delineate the gold, silver and multi-element soil geochemical
anomaly and to define further drill targets
Paymaster Polymetallic Project, Nevada, USA
-- A US based consulting geologist with a background in the
evaluation of skarn deposits has now completed an extensive
programme of mapping and sampling and to help define potential
drilling
New Project Acquisitions
-- Three new projects acquired by low costs claim staking - Peg Leg, Mt Tobin and Lucky
MB Fluorspar Project, Nevada, USA
-- Following the recent fundraisings, the Company has
re-commenced the Scoping Study level metallurgical testwork at SGS
Lakefield in Canada
Storuman Fluorspar Project, Sweden
-- The Mine Permit appeal process is ongoing with the Swedish
Government with no commitment to a decision timeframe
Kaaresselkä and Kiekerömaa Gold Projects, Finland
-- The Company retains pre-production and net smelter royalty
interest in two gold projects owned by Aurion Resources
-- Aurion is a Canadian listed exploration company with primary
focus on the development of its Finnish gold projects, several of
which are under joint venture with B2Gold. Kinross Gold Corporation
is a significant shareholder of Aurion
Strategic Relationship with Possehl Erzkontor GmbH & Co.
KG
-- The Company signed a fluorspar marketing Memorandum of
Understanding (MOU) in 2017 with leading global commodities trading
group, Possehl Erzkontor GmbH & Co. KG ("Possehl"), a wholly
owned subsidiary of CREMER
-- The MOU remains in place with Possehl
FINANCIAL SUMMARY FOR THE SIX MONTHSING 31 MARCH 2020:
-- Operating Loss of GBP278,934 comprises:
o Revenue of GBP94,691; less Administration costs of GBP352,914
(which includes non-cash share-based payments of GBP25,224);
and
o Pre-licence and reconnaissance exploration costs totalling
GBP20,711
o Total Group Loss of GBP278,780 is after crediting Interest
income of GBP154
-- Project expenditure of GBP43,513 was capitalised during the quarter.
Funding and Cash Position:
-- The Company has completed two fundraisings in the period with
Bergen Global Opportunity Fund, LP (Bergen) and through Peterhouse
Capital Limited
-- The closing cash (and cash equivalent) position at the end of the period was GBP407,807
-- Since the period end, a subsequent lump sum investment of
GBP600,000 was made by Precious Metals Capital Group LLC on 7 April
2020, further strengthening the Company's cash position (circa
GBP800,000 on 26 May 2020) during the current challenging times as
well as enabling the Company to progress its planned exploration on
its Paymaster Polymetallic and Pyramid Gold Projects in Nevada
About Tertiary Minerals plc
Tertiary Minerals plc (ticker symbol 'TYM') is an AIM-traded
mineral exploration company building and developing a
multi-commodity project portfolio - Industrial minerals, base and
precious metals.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For more information please contact:
Enquiries
Tertiary Minerals plc
Patrick Cheetham, Executive
Chairman
Richard Clemmey, Managing Director +44 (0)1625 838 679
SP Angel Corporate Finance LLP
Nominated Adviser & Joint Broker
Richard Morrison/Caroline Rowe +44 (0) 20 3470 0470
Peterhouse Capital Limited
Joint Broker
Lucy Williams/Duncan Vasey +44 (0) 207 469 0930
Chairman's Statement
I am pleased to present our Interim Report for the six-month
period ended 31 March 2020.
During this reporting period we have seen a significant
improvement in market sentiment for junior mining companies,
particularly in relation to precious metals, which has allowed us
to improve our financial position and to kick-start work on a
number of our existing projects. Much of this activity has taken
place since the period end and has focused on our projects in
Nevada, USA.
At Pyramid, the Company is targeting high-grade epithermal style
gold mineralisation. An initial drill hole designed to confirm a
high-grade gold intersection made by a previous explorer
demonstrated the target zone to be gold bearing but did not deliver
the same high-grade results. The target zone is defined by an
extensive gold-in-soil anomaly and widespread gold bearing surface
samples and warrants further work over the next few months.
Mineral exploration is high risk and the process of discovery is
not linear but high rewards can come from successful discoveries.
Recent mapping and sampling at our Paymaster Zinc-Silver Skarn
Project by a specialist consulting geologist has confirmed a
large-scale target for zinc skarn mineralisation and drawn
analogies with the setting and style of the large Taylor Zinc
discovery, in the neighbouring state Arizona, now owned by South 32
after the $2 billion takeover of Arizona Mining in 2018. We are now
awaiting the report and recommendations for further work.
We seek to spread the risk of mineral exploration and increase
our chance of discovery through a portfolio-based approach. In line
with this strategy we are steadily re-building our portfolio of
projects with a continuing focus on Nevada. We have recently staked
additional ground on three new projects targeting precious and base
metal deposits - the Peg Leg, Mt Tobin and Lucky Projects. In each
case the projects have been acquired at low cost by staking claims
and they share the characteristics that they can be evaluated with
low cost programmes initially and brought to the drill stage
relatively quickly. Programmes are being designed and permitted and
will be executed over the coming months.
At our large MB Fluorspar Project in Nevada we have commenced a
programme of scoping level metallurgical testwork at SGS Lakefield
in Canada aimed at improving recoveries and concentrate grade for
fluorspar mineralisation in the Central Zone of the deposit. To
date, this has been problematic and a breakthrough is needed if the
potential of this large low-grade resource is to be realised.
There is nothing substantive to report on our Storuman Fluorspar
Project in Sweden, where the mine permit appeal process is ongoing
with the Swedish Government, or on our Lassedalen Fluorspar Project
in Norway which is a low priority for further work.
The Company's financial results for the half-year are in line
with expectations and reflect the Company's project and
administration expenditures. The financial markets have shown
remarkable resilience in the face of the Covid-19 pandemic and this
has allowed us to continue funding our activities and improve the
Company's financial position at the year end through a GBP600,000
fundraising with US Precious Metals Capital Group in April
2020.
The mining industry in Nevada has continued to operate as an
essential industry and our programmes have so far been unaffected.
Our staff continue to work effectively from home. The future of
this pandemic is, however, unpredictable and has potential to
affect our operations and the markets in which we operate in the
future. We will continue to operate in line with World Health
Organisation and Governments' advice and to manage our expenditure
prudently.
I would like to thank all of our employees and directors for
their hard work during the reporting period and to wish Richard
Clemmey well as he leaves the Company at the end of June to return
to employment in the UK quarrying industry. I will continue to act
in an executive capacity until the time is right to make a new
executive director appointment.
Patrick L Cheetham
Executive Chairman
29 May 2020
Consolidated Income Statement
for the six months to 31 March 2020
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
------------------------------------------ ------------- ------------- -----------------
Revenue 94,691 106,747 189,742
------------------------------------------ ------------- ------------- -----------------
Administration costs (352,914) (240,163) (502,788)
Pre-licence exploration costs/impairment
costs (20,711) (49,602) (75,778)
Impairment of deferred exploration
asset - - (442,917)
Operating loss (278,934) (183,018) (831,741)
Gain on disposal of available - - -
for sale investment
Interest receivable 154 145 234
Loss before income tax (278,780) (182,873) (831,507)
Income tax - - -
------------------------------------------ ------------- ------------- -----------------
Loss for the period attributable
to equity holders of the parent (278,780) (182,873) (831,507)
========================================== ============= ============= =================
Loss per share - basic and diluted
(pence)
(Note 2) (0.05) (0.05) (0.19)
========================================== ============= ============= =================
Consolidated Statement of Comprehensive Income
for the six months to 31 March 2020
Six months Six months Twelve months
to 31 March to to
2020 31 March 30 September
Unaudited 2019 2019
Unaudited Audited
GBP GBP GBP
------------------------------------------ ------------- ----------- --------------
Loss for the period (278,780) (182,873) (831,507)
------------------------------------------ ------------- ----------- --------------
Items that could be reclassified
subsequently to the Income Statement:
Foreign exchange translation differences
on foreign currency net investments
in subsidiaries (10,352) (1,180) 115,415
(10,352) (1,180) 115,415
------------- ----------- --------------
Items that will not be reclassified
to the Income Statement:
Changes in the fair value of equity
investments (12,963) (69,550) (71,670)
(12,963) (69,550) (71,670)
------------------------------------------ ------------- ----------- --------------
Total comprehensive loss for the
period attributable to equity holders
of the parent (302,095) (253,603) (787,762)
========================================== ============= =========== ==============
Company Registration Number 03821411
Consolidated Statement of Financial Position
at 31 March 2020
As at As at As at
31 March 31 March 30 September
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
----------------------------------- ------------- ------------- --------------
Non-current assets
Intangible assets 2,492,717 2,730,899 2,461,972
Property, plant & equipment 4,220 2,658 4,182
Other investments 19,759 132,778 89,775
----------------------------------- ------------- ------------- --------------
2,516,696 2,866,335 2,555,929
----------------------------------- ------------- ------------- --------------
Current assets
Receivables 55,348 67,786 41,568
Cash and cash equivalents 407,807 217,432 50,617
463,155 285,218 92,185
----------------------------------- ------------- ------------- --------------
Current liabilities
Trade and other payables (89,506) (44,974) (70,686)
Net current assets 373,649 240,244 21,499
----------------------------------- ------------- ------------- --------------
Net assets 2,890,345 3,106,579 2,577,428
=================================== ============= ============= ==============
Equity
Called up Ordinary Shares 73,383 44,307 44,307
Deferred Shares 2,644,062 2,644,062 2,644,062
Share premium account 10,569,399 10,008,687 10,008,687
Merger reserve 131,096 131,096 131,096
Share option reserve 66,830 112,952 67,468
Fair value reserve (21,407) (6,324) (8,444)
Foreign currency reserve 409,400 303,157 419,752
Accumulated losses (10,982,418) (10,131,358) (10,729,500)
----------------------------------- ------------- ------------- --------------
Equity attributable to the owners
of the parent 2,890,345 3,106,579 2,577,428
=================================== ============= ============= ==============
Consolidated Statement of Changes in Equity
Ordinary Deferred Share Merger Share Fair Foreign Accumulated Total
Share Shares Premium Reserve Warrant Value Currency Losses
Capital Account Reserve Reserve Reserve
GBP GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
At 30
September
2018 35,932 2,644,062 9,785,702 131,096 168,923 63,226 304,337 (10,007,469) 3,125,809
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Loss for the
period - - - - - - - (182,873) (182,873)
Change in fair
value - - - - - (69,550) - - (69,550)
Exchange
differences - - - - - - (1,180) - (1,180)
Total
comprehensive
loss for
the period - - - - - (69,550) (1,180) (182,873) (253,603)
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Share issue 8,375 - 222,985 - - - - - 231,360
Share based
payments
expense - - - - 3,013 - - - 3,013
Transfer of
expired
warrants - - - - (58,984) - - 58,984 -
---------------
At 31 March
2019 44,307 2,644,062 10,008,687 131,096 112,952 (6,324) 303,157 (10,131,358) 3,106,579
Loss for the
period - - - - - - - (648,634) (648,634)
Change in fair
value - - - - - (2,120) - - (2,120)
Exchange
differences - - - - - - 116,595 - 116,595
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Total
comprehensive
loss for
the period - - - - - (2,120) 116,595 (648,634) (534,159)
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Share issue - - - - - - - - -
Share based
payments
expense - - - - 5,008 - - - 5,008
Transfer of
expired
warrants - - - - (50,492) - - 50,492 -
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
At 30
September
2019 44,307 2,644,062 10,008,687 131,096 67,468 (8,444) 419,752 (10,729,500) 2,577,428
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Loss for the
period - - - - - - - (278,780) (278,780)
Change in fair
value - - - - - (12,963) - - (12,963)
Exchange
differences - - - - - - (10,352) - (10,352)
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Total
comprehensive
loss for
the period - - - - - (12,963) (10,352) (278,780) (302,095)
--------------- ---------- ---------- ----------- --------- --------- --------- ---------- ------------- ----------
Share issue 29,076 - 560,712 - - - - - 589,788
Share based
payments
expense - - - - 25,224 - - - 25,224
Transfer of
expired
warrants - - - - (25,862) - - 25,862 -
At 31 March
2020 73,383 2,644,062 10,569,399 131,096 66,830 (21,407) 409,400 (10,982,418) 2,890,345
=============== ========== ========== =========== ========= ========= ========= ========== ============= ==========
Consolidated Statement of Cash Flows
for the six months to 31 March 2020
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2020 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
------------------------------------------ ------------- ------------- -----------------
Operating activity
Total loss after tax excluding
interest received (278,934) (183,018) (831,741)
Depreciation charge 886 812 1,635
Shares issued in settlement of
outstanding wages 2,738 1,360 1,360
Share based payment charge 25,224 3,013 8,021
Impairment charge - deferred exploration
asset - - 442,917
(Increase)/decrease in receivables (13,779) 28,867 55,084
Increase/(decrease) in payables 18,820 (20,189) 5,523
Net cash outflow from operating
activity (245,045) (169,155) (317,201)
------------------------------------------ ------------- ------------- -----------------
Investing activity
Interest received 154 145 234
Exploration and development expenditures (43,513) (61,318) (121,967)
Disposal of other investments 57,052 - 40,883
Purchase of property, plant &
equipment (924) (162) (2,509)
Net cash (outflow)/inflow from
investing activity 12,769 (61,335) (83,359)
------------------------------------------ ------------- ------------- -----------------
Financing activity
Issue of share capital (net of
expenses) 587,050 230,000 230,000
Net cash inflow from financing
activity 587,050 230,000 230,000
------------------------------------------ ------------- ------------- -----------------
Net (decrease)/increase in cash
and cash
equivalents 354,774 (490) (170,560)
Cash and cash equivalents at start
of period 50,617 218,297 218,297
Exchange differences 2,416 (375) 2,880
Cash and cash equivalents at end
of period 407,807 217,432 50,617
========================================== ============= ============= =================
Notes to the Interim Statement
1. Basis of preparation
The consolidated interim financial information has been prepared
in accordance with the accounting policies that are expected to be
adopted in the Group's full financial statements for the year
ending 30 September 2020 which are not expected to be significantly
different to those set out in Note 1 of the Group's audited
financial statements for the year ended 30 September 2019. These
are based on the recognition and measurement principles of IFRS in
issue as adopted by the European Union (EU) or that are expected to
be adopted and effective at 30 September 2020. The implementation
of new standards and interpretations has not led to any changes in
the Group's accounting policies (other than presentation and
disclosure) or had any other material impact on its financial
position. The financial information has not been prepared (and is
not required to be prepared) in accordance with IAS 34. The
accounting policies have been applied consistently throughout the
Group for the purposes of preparation of this financial
information.
The financial information in this statement relating to the six
months ended 31 March 2020 and the six months ended 31 March 2019
has neither been audited nor reviewed by the Auditors, pursuant to
guidance issued by the Auditing Practices Board. The financial
information presented for the year ended 30 September 2019 does not
constitute the full statutory accounts for that period. The Annual
Report and Financial Statements for the year ended 30 September
2019 have been filed with the Registrar of Companies. The
Independent Auditor's Report on the Annual Report and Financial
Statement for the year ended 30 September 2019 was unqualified,
although it did draw attention to matters by way of emphasis in
relation to going concern, and did not contain a statement under
498(2) or 498(3) of the Companies Act 2006.
The directors prepare annual budgets and cash flow projections
for a 15 months' period. These projections include the proceeds of
future fundraising necessary within the period to meet the
Company's and Group's planned discretionary project expenditures
and to maintain the Company and Group as a going concern. Although
the Company has been successful in raising finance in the past,
there is no assurance that it will obtain adequate finance in the
future. There is also an, as yet unknown, impact that the COVID-19
pandemic may have on the capital markets. These factors represents
a material uncertainty related to events or conditions which may
cast significant doubt on the entity's ability to continue as a
going concern and, therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of
business. However, the directors have a reasonable expectation that
they will secure additional funding when required to continue
meeting corporate overheads and exploration costs for the
foreseeable future and therefore believe that the going concern
basis is appropriate for the preparation of the financial
statements.
2. Loss per share
Loss per share has been calculated on the attributable loss for
the period and the weighted average number of shares in issue
during the period.
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2020 2019 2019
Unaudited Unaudited Audited
---------------------------- ------------- ------------- -----------------
Loss for the period (GBP) (278,780) (182,873) (831,507)
Weighted average shares
in issue (No.) 513,084,724 389,173,054 416,198,199
Basic and diluted loss per
share (pence) (0.05) (0.05) (0.19)
============================ ============= ============= =================
The loss attributable to ordinary shareholders and the weighted
average number of ordinary shares used for the purpose of
calculating diluted earnings per share are identical to those used
to calculate the basic earnings per ordinary share. This is because
the exercise of share warrants would have the effect of reducing
the loss per ordinary share and is therefore not dilutive under the
terms of IAS33.
3. Share capital
During the six months to 31 March 2020 the following share
issues took place:
An issue of 18,000,000 0.01p Ordinary Shares, to Bergen as
collateral shares relating to the convertible securities issuance
deed (19 November 2019).
An issue of 17,000,000 0.01p Ordinary Shares, to Bergen for
settlement of commencement fee (19 November 2019).
An issue of 651,900 0.01p Ordinary Shares at 0.21p per share, to
a director, in satisfaction of
directors' fees, for a total consideration of GBP1,369 (2
December 2019).
An issue of 154,705,883 0.01p Ordinary Shares at 0.17p per
share, by exercise of conversion rights (Bergen convertible loan
note), for a total consideration of GBP263,000 before expenses (18
February 2020).
An issue of 100,000,000 0.01p Ordinary Shares at 0.275p per
share, by way of placing, for a total consideration of GBP275,000
before expenses (25 February 2020).
An issue of 402,644 0.01p Ordinary Shares at 0.34p per share, to
a director, in satisfaction of
directors' fees, for a total consideration of GBP1,369 (27
February 2020).
4. Event after the Balance Sheet date
On 2 April 2020, the Company announced entry into a share
subscription deed with Precious Metals Capital Group LLC ("PMCG"),
a US based institutional specialist investor. PMCG would be making
an investment of GBP600,000, by way of subscription for Company
shares. PMCG made the lump sum investment of GBP600,000 on the 7
April 2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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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.
END
IR ALMTTMTBTBMM
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May 29, 2020 08:15 ET (12:15 GMT)
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