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30 Dec 2024 07:00
30 December 2024
Power Metal Resources plc ("POW", "Power Metal" or the "Company")
Interim Results
Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed exploration company with a global project portfolio, announces unaudited interim financial results for the six month period ending 30 September 2024, in accordance with AIM Rule 17.
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On 2 October 2024, the Company announced that that its accounting reference date has been changed to 31 December, in order to provide the Company with greater flexibility to complete its audit after those of its subsidiaries, a significant number of which have year ends of 30 September. As a result, the current accounting period was extended to 15 months, ending onΒ 31 December 2024.
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Following the 15 month period, future results will follow a standard timetable of interim accounts for the six months to 30 June and full year audited results to 31 December.
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The Company expects to publish its audited accounts for the 15 months endingΒ 31 December 2024Β in earlyΒ June 2025Β and by no later thanΒ 30 June 2025Β in any event.
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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part ofΒ UKΒ domestic law by virtue of theΒ European UnionΒ (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
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For further information please visit https://www.powermetalresources.com/ or contact:
Power Metal Resources plc | |
Sean WadeΒ (Chief Executive Officer) Β | +44 (0) 20 3778 1396 |
SP Angel Corporate Finance LLP (Nomad and Joint Broker) | |
Ewan Leggat/Caroline Rowe Β | +44 (0) 20 3470 0470 |
Tamesis Partners LLP (Joint Broker) | |
Richard Greenfield/Charlie Bendon | +44 (0) 20 3882 2868 |
Β BlytheRay (PR Advisors) Tim Blythe/Megan Ray | Β Β +44 (0) 20 7138 3204 |
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NOTES TO EDITORS
Power Metal Resources plcΒ (AIM:POW,OTCQB:POWMF) is a London-listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
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The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa, Saudi Arabia and Australia.
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Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
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Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
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POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Β | Note | 6 months ended 30-Sep-24 (unaudited) Β£'000 | 6 months ended 31-Mar-24 (unaudited) Β£'000 | Year ended 30-Sep-23 (audited) Β£'000 | |||
Revenue | Β | 526 | - | 78 | |||
Cost of sales | Β | (49) | - | - | |||
Gross profit | 477 | - | 78 | ||||
Β | Β | ||||||
Operating expenses | (2,092) | Β (1,451) | (2,777) | ||||
Fair value gains through profit or loss | 4,953 | Β 1,050 | 1,604 | ||||
Profit/(Loss) from operating activities | 3,338 | (401) | (1,095) | ||||
Β | |||||||
Share of post-tax losses of equity accounted joint ventures | - | Β (79) | (219) | ||||
Profit/(Loss) before taxation | 3,338 | Β (480) | (1,314) | ||||
Taxation | 4 | - | - | - | |||
Profit/(Loss) for the period | 3,338 | (480) | (1,314) | ||||
Β | Β | ||||||
Items that will or may be reclassified to profit or (loss): | Β | ||||||
Exchange translation | 41 | - | 6 | ||||
Total other comprehensive income | Β | 41 | - | 6 | |||
Total comprehensive income/(expense) for the period | Β | 3,379 | (480) | (1,308) | |||
Β | Β | ||||||
Profit/(Loss) for the period attributable to: | Β | ||||||
Owners of the parent | Β | 3,431 | Β (399) | (1,096) | |||
Non-controlling interests | Β | (93) | Β (81) | (218) | |||
Β | 3,338 | (480) | (1,314) | ||||
Total comprehensive loss attributable to: | Β | ||||||
Owners of the parent | 3,476 | Β (408) | (1,083) | ||||
Non-controlling interests | (97) | Β (72) | (225) | ||||
Β | 3,379 | (480) | (1,308) | ||||
Β | |||||||
Profit/(Loss) per share from continuing operations attributable to the ordinary equity holder of the parent: | |||||||
Basic and diluted profit/(loss) per share (pence) | 5 | 3.09 | (1.78) | (1.19) | |||
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
Β | Note | 30-Sep-24 (unaudited) Β£'000 | Β | 31-Mar-24 (unaudited) Β£'000 | Β | 30-Sep-23 (audited) Β£'000 |
Assets | ||||||
Intangible assets | Β | 5,103 | 5,503 | 4,947 | ||
Investments in joint ventures | Β | 500 | 281 | 290 | ||
Financial assets at fair value through profit or loss | Β | 868 | 1,186 | 1,161 | ||
Right of use asset | Β | 68 | - | - | ||
Property, plant & equipment | Β | 30 | 12 | 8 | ||
Non-current assets | Β | 6,569 | 6,982 | 6,406 | ||
Β | Β | |||||
Financial assets at fair value through profit or loss | Β | 13,087 | 7,712 | 7,188 | ||
Trade and other receivables | Β | 2,141 | 1,065 | 481 | ||
Inventory | Β | 25 | - | - | ||
Cash and cash equivalents | Β | 877 | 455 | 1,098 | ||
Assets classified as held for sale | Β | 697 | - | 191 | ||
Current assets | Β | 16,827 | 9,232 | 8,958 | ||
Β | Β | |||||
Total assets | Β | 23,396 | 16,214 | 15,364 | ||
Β | Β | |||||
Equity | Β | |||||
Share capital | 6 | 8,674 | 8,664 | 8,531 | ||
Share premium | Β | 28,753 | 28,688 | 27,497 | ||
Shares to be issued | Β | 500 | - | - | ||
Capital redemption reserve | Β | 5 | 5 | 5 | ||
Share based payments reserve | Β | 2,900 | 1,770 | 1,712 | ||
Foreign exchange reserve | Β | 139 | 94 | 103 | ||
Accumulated losses | Β | (21,199) | (24,632) | (24,276) | ||
Total | Β | 19,772 | 14,589 | 13,572 | ||
Β | Β | |||||
Non-controlling interests | Β | 745 | 792 | 907 | ||
Total equity | Β | 20,517 | 15,381 | 14,479 | ||
Β | Β | |||||
Liabilities | Β | |||||
Trade and other payables | Β | 1,266 | 833 | 885 | ||
Current lease liabilities | Β | 32 | - | - | ||
Current borrowings | Β | 500 | - | - | ||
Current liabilities | Β | 1,798 | 833 | 885 | ||
Β | Β | |||||
Non-current liabilities | Β | |||||
Non-current lease liabilities | Β | 38 | - | - | ||
Non-current borrowings | Β | 1,043 | - | - | ||
Total non-current liabilities | Β | 1,081 | - | - | ||
Β | ||||||
Total liabilities | Β | 2,879 | 833 | 885 | ||
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Total equity and liabilities | Β | 23,396 | 16,214 | 15,364 |
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Β Β | Share capitalΒ£'000 | Β | Share premiumΒ£'000 | Β | Shares to be issued Β£'000 | Β | Capital redemption reserve Β£'000 | Β | Share based payment reserveΒ£'000 | Β | Foreign exchange reserveΒ£'000 | Β | Accumulated losses Β£'000 | Β | Total Β£'000 | Β | Non-controlling interests Β£'000 | Β | Total equity Β£'000 |
Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | |
Balance at 1 October 2023 (audited) | 8,531 | 27,497 | - | 5 | 1,712 | 103 | (24,276) | 13,572 | 907 | 14,479 | |||||||||
Profit/(loss) for the period | - | - | - | - | - | - | 3,034 | 3,034 | (174) | 2,860 | |||||||||
Total other comprehensive expense | - | - | - | - | - | 36 | - | 36 | 5 | 41 | |||||||||
Total comprehensive income for the period | - | - | - | - | - | 36 | 3,034 | 3,070 | (169) | 2,901 | |||||||||
Issue of ordinary shares | 143 | 1,256 | - | - | - | - | - | 1,399 | - | 1,399 | |||||||||
Shares to be issued | - | - | 500 | - | - | - | - | 500 | - | 500 | |||||||||
Share based payments | - | - | - | - | 1,188 | - | - | 1,188 | - | 1,188 | |||||||||
Non-controlling interest adjustment on step acquisition of subsidiaries | - | - | - | - | - | - | - | - | 50 | 50 | |||||||||
Non-controlling interest adjustment | - | - | - | - | - | - | 43 | 43 | (43) | - | |||||||||
143 | 1,256 | 500 | - | 1,188 | - | 43 | 3,130 | 7 | 3,137 | ||||||||||
Balance at 30 September 2024 (unaudited) | 8,674 | 28,753 | 500 | 5 | 2,900 | 139 | (21,199) | 19,772 | 745 | 20,517 |
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2024
Β Β | Share capitalΒ£'000 | Β | Share premiumΒ£'000 | Β | Capital redemption reserve Β£'000 | Β | Share based payment reserveΒ£'000 | Β | Foreign exchange reserveΒ£'000 | Β | Accumulated losses Β£'000 | Β | Total Β£'000 | Β | Non-controlling interests Β£'000 | Β | Total equity Β£'000 |
Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | |
Balance at 1 October 2023 (audited) | 8,531 | 27,497 | 5 | 1,712 | 103 | (24,276) | 13,572 | 907 | 14,479 | ||||||||
Loss for the period | - | - | - | - | - | (399) | (399) | (81) | (480) | ||||||||
Total other comprehensive (expense)/income | - | - | - | - | (9) | - | (9) | 9 | - | ||||||||
Total comprehensive loss for the period | - | - | - | - | (9) | (399) | (408) | (72) | (480) | ||||||||
Issue of ordinary shares | 133 | 1,191 | - | - | - | - | 1,324 | - | 1,324 | ||||||||
Share based payments | - | - | - | 58 | - | - | 58 | - | 58 | ||||||||
Non-controlling interest adjustment | - | - | - | - | - | 43 | 43 | (43) | - | ||||||||
133 | 1,191 | - | 58 | - | 43 | 1,425 | (43) | 1,382 | |||||||||
Balance at 31 March 2024 (unaudited) | 8,664 | 28,688 | 5 | 1,770 | 94 | (24,632) | 14,589 | 792 | 15,381 |
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POWER METAL RESOURCES PLC
AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Share capital | Β | Share premium | Β | Capital redemption reserve | Β | Capital contribution reserve | Β | Share based payment reserve | Β | Foreign exchange reserve | Β | Accumulated losses | Β | Total | Β | Non-controlling interests | Β | Total equity | |
Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 | Β | Β£'000 |
Β | |||||||||||||||||||
Balance at 1 October 2022 (audited) | 8,065 | 23,312 | 5 | 2,322 | 1,638 | 90 | (23,740) | 11,692 | 2,065 | 13,757 | |||||||||
Loss for the period | - | - | - | - | - | - | (1,096) | (1,096) | (218) | (1,314) | |||||||||
Other comprehensive income/(expense) | - | - | - | - | - | 13 | - | 13 | (7) | 6 | |||||||||
Total comprehensive income/(loss) for the period | - | Β | - | Β | - | Β | - | Β | - | Β | 13 | Β | (1,096) | Β | (1,083) | Β | (225) | Β | (1,308) |
Issue of ordinary shares | 466 | 4,405 | - | - | - | - | - | 4,871 | - | 4,871 | |||||||||
Costs of share issues | - | (220) | - | - | - | - | - | (220) | - | (220) | |||||||||
Share based payments | - | - | - | - | 74 |
| - | - | 74 | - | 74 | ||||||||
Non-controlling interest adjustment on step acquisition of subsidiaries | - | - | - | - | - | - | - | - | 99 | 99 | |||||||||
Non-controlling interest adjustment on step disposal of subsidiaries | - | - | - | - | - | - | 22 | 22 | (22) | - | |||||||||
Non-controlling interest adjustment on disposal of subsidiaries | - | - | - | (2,322) | - | - | 538 | (1,784) | (1,010) | (2,794) | |||||||||
Total transactions with owners | 466 | 4,185 | - | (2,322) | 74 | - | 560 | 2,963 | (933) | 2,030 | |||||||||
Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | ||||||||||
Balance at 30 September 2023 (audited) | 8,531 | 27,497 | 5 | - | 1,712 | 103 | (24,276) | 13,572 | 907 | 14,479 |
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POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Β | 6 months ended 30-Sep-24 (unaudited) Β£'000 | Β | 6 months ended 31-Mar-24 (unaudited) Β£'000 | Β | Year ended 30-Sep-23 (audited) Β£'000 |
Cash flows from operating activities | |||||
Profit/(loss) for the period | 3,338 | (480) | (1,314) | ||
Adjustments for: | |||||
- Fair value adjustment | (5,081) | (1,050) | (1,604) | ||
- Share of post-tax losses of equity accounted joint ventures | - | 79 | 219 | ||
- (Gain)/loss on disposals | (100) | 504 | (175) | ||
- Expenses settled in shares | - | 24 | 129 | ||
- Amortisation | 14 | - | - | ||
- Depreciation | 2 | 3 | 5 | ||
- Finance costs | 94 | - | - | ||
- Foreign exchange differences | 208 | 54 | (33) | ||
- Share based payment expense | 85 | 58 | 30 | ||
Β | (1,440) | (808) | (2,743) | ||
Changes in working capital: | |||||
- Trade and other receivables | (338) | (84) | Β (169) | ||
- Trade and other payables | 183 | (105) | Β 797 | ||
Net cash used in operating activities | (1,595) | (997) | Β (2,115) | ||
Β | |||||
Cash flows from investing activities | |||||
Acquisition of subsidiary | 387 | - | - | ||
Investment in financial assets at fair value through profit or loss | (188) | (3) | (291) | ||
Investments in associates | - | (70) | (316) | ||
Investments in intangibles | (164) | (366) | (797) | ||
Cash related to deconsolidated subsidiary | - | - | (410) | ||
Purchase of property, plant and equipment | - | (7) | (8) | ||
Net cash generated from/(used in) investing activities | 35 | (446) | (1,822) | ||
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Cash flows from financing activities | |||||
Proceeds from issue of share capital | - | 800 | 3,616 | ||
Shares issued to non-controlling interests by subsidiary | - | - | 79 | ||
Issue costs | - | - | (220) | ||
Proceeds from borrowings | 1,994 | - | - | ||
Principal paid on lease liability | (12) | - | - | ||
Net cash flows from financing activities | 1,982 | 800 | 3,475 | ||
Β | |||||
Net increase/(decrease) in cash and cash equivalents | 422 | (643) | (462) | ||
Cash and cash equivalents at beginning of period | 455 | 1,098 | 1,560 | ||
Cash and cash equivalents at end of period | 877 | 455 | 1,098 |
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NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Power Metal Resources plc is a company domiciled in the United Kingdom. The unaudited consolidated interim financial report for the six-month period ended 30 September 2024 comprises the results of the Company and its subsidiaries (the "Group"). The Group primarily is involved in the exploration and development of mineral resources in Africa, Australia and Canada.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.
The financial information presented in this interim report has been prepared using accounting policies that are expected to be applied in the preparation of the financial statements for the year ending 31 December 2024.
These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards, and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as endorsed for use in the United Kingdom, and these principles are disclosed in the Financial Statements for the year ended 30 September 2023.
The interim results have been prepared on a going concern basis. The financial information in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The 2024 interim financial report has not been audited.
The Annual Report and Financial Statements for 2023 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2023 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The interim results were approved by the Board of Directors on 28 December 2024.
(b) Judgements and estimates
Preparing the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense. Actual results may differ from these estimates.
In preparing this consolidated interim financial report, significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 September 2023.
(c) Going concern
The interim financial report has been prepared on a going concern basis. Although the Group's assets are not generating revenues, the Directors believe, having considered all available information, including the Company's proven ability to raise further equity funds from its supportive shareholder base, that the Group will have sufficient funds to meet its expected committed and contractual expenditure for the foreseeable future. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial report for the period ended 30 September 2024.
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3. Significant accounting policies
The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 September 2023.
4. Taxation
For the six months ended 30 September 2024, no income tax expense has been recognised in the statement of profit or loss. It is expected that the Group has sufficient tax losses carried forward from prior periods to offset the taxable profits generated during the interim period. These carried forward tax losses are expected to be utilised against taxable income for the full financial year, if required.
5. Earnings per share
The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders of the parent of Β£3,431,000 (March 2024 loss: Β£399,000), and a weighted average number of ordinary shares in issue of 111,049,292 (March 2024: 84,071,550).
The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the parent, and a diluted weighted average number of ordinary shares of 144,023,616.
The weighted average number presented for the period ending 31 March 2024 above and the year ending 30 September 2023 in the statement of comprehensive income have been adjusted for the effect of a 20 to 1 share consolidation.
6. Issues of Equity
During the period, the Company issued 514,358 shares at a share price of 14.581 pence per share. The shares were issued for the acquisition of a 75% holding in GSA (Environmental) Ltd.
At the period end, the Company had 111,187,774 ordinary shares in issue (31 March 2024: 110,673,416).
At the date of this interim report, the Company had 114,287,742 ordinary shares in issue.
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**Ends**
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