PERE.L Regulatory News (PERE)

17 May 2021

2020 Financial Statements Released

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce its annual report and consolidated financial statements for the year ended 31st December 2020.

On 17 May 2021 the Board of Directors of the Company approved the Annual Report and Consolidated Financial Statements for the year ended 31 December 2020. During the year the Group made a loss of US$27,275,000 (2019 - loss of US$13,087,000). The operating loss of $24,296,000 (2019: $11,818,000) comprised the mark-to-market revaluation of the Company's liability to Capstone of £9,369,000 (2019: exceptional expenses from the Minto acquisition of $2,347,000), administrative costs of the Company of $1,585,000 (2019: $3,049,000) and the loss from Minto of $13,342,000 (2019 post-acquisition: 3,049,000) which reflect the early stage of operations since re-starting in late 2019 and the challenges of 2020, including low copper prices and the staff quarantine and similar requirements caused by Covid-19, which are keeping the Minto mine safe but increased costs and affected efficiency.

The financial statements are available in pdf form on the Company's website using the link below.

https://www.pembridgeresources.com/investors/financial-reports-and-presentations

The Company's Annual General Meeting will be held on 24 June 2021. The meeting will not be open to shareholders and voting will be by proxy only, following government guidelines related to the Covid-19 pandemic.

Extracts from the consolidated financial statements follow.

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:

"These results reflect 2020 being a year in which the Minto team developed the mine and laid the groundwork for future success, despite the unexpected challenges that they faced in the year from the Covid-19 pandemic and a low copper price. We are now seeing the benefit of this work in 2021 and the recently announced result of the 43-101 Preliminary Economic Assessment Technical Report shows the long-term potential and value of the investment in Minto."

Cautionary Statement

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company, or management, expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the Company's ability to predict or counteract the potential impact of COVID-19 coronavirus on factors relevant to the Company's business, failure to identify additional mineral resources, failure to convert estimated mineral resources to reserves with more advanced studies, the inability to eventually complete a feasibility study which could support a production decision, the preliminary nature of metallurgical test results may not be representative of the deposit as a whole, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

ENDS

NOTES TO EDITORS

About Pembridge Resources plc

Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Explorations Ltd, a British Columbia incorporated business operating the Minto mine in Yukon, Canada.

Enquiries:

Pembridge Resources plc: +44 (0)20 7917 2968

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board

David James, Chief Financial Officer

Brandon Hill Capital - United Kingdom: +44 (0)20 3463 5016

Jonathan Evans 

Consolidated statement of comprehensive income

 For the year ended 31 December 2020

Consolidated statement of financial position

 As at 31 December 2020

Consolidated statement of changes in equity

For the year ended 31 December 2020

Consolidated statement of changes in equity

For the year ended 31 December 2019

The following describes the nature and purpose of each reserve within Group and Company owners' equity:

Consolidated cash flow statement

 For the year ended 31 December 2020

BASIS OF PREPARATION

The Group's Financial Statements are presented in United States dollars (US$), which is also the functional currency of the Company, and rounded to the nearest thousand.

The Financial Statements from which these extracts are taken have been prepared in accordance with international accounting standards in conformity with the Companies Act 2006 and international financial reporting standards adopted pursuant to Regulation (EC) No.1606/2002 as it applies in the European Union. The Financial Statements have been prepared under the historical cost convention, except as modified for assets and liabilities recognised at fair value on a business combination and contingent consideration measured at fair value.

Going concern

The Financial Statements have been prepared on a going concern basis, which assumes that the Company and Group will continue operating in the foreseeable future and will be able to service their debt obligations, realise their assets and discharge their liabilities as they fall due. The Company and Minto both have a planning, budgeting and forecasting process to determine the funds required to support their operations and expansionary plans. The Company raised new equity in January 2021, which is expected to support its operations until it starts to receive repayments from Minto of its inter-company balance in 2022. At 31 December 2020, Minto had cash of US$ 398,000 and available capacity of US$ 9.5 million under the prepayment facility with Sumitomo Canada Limited. The Group's liabilities include a contingent consideration balance of US$ 18,571,000 due to Capstone, which is disclosed as a current liability and explained fully in note 32. The amount that will actually be paid in respect of this obligation, and the timing thereof, is dependent on future copper price movements, so is not certain, and there may be scope to negotiate a delay in payments beyond one year if this is necessary. Because the liability would become payable in full only if copper prices remain at or above certain levels, the same factors that would cause it to be payable would also assist the Group in funding it. The Group's ability to continue as a going concern is dependent on their ability to obtain additional funding and the successful development of their existing assets in order to meet their planned business objectives. However, because there can be no assurance of this funding or the Group's ability to generate positive cash flows, a material uncertainty exists which may cast doubt on the Group's ability to continue as a going concern.

At present the Group believes that there should be no significant material disruption to its mining operations from COVID-19, but the Board continues to monitor these risks and Minto's business continuity plans.

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 and Company have 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 preparing these 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.