TIDMBRES
RNS Number : 8519P
Blencowe Resources PLC
23 June 2022
Date: 23 June 2022
Blencowe Resources Plc
("Blencowe" or the "Company")
Interim Consolidated Financial Statements
for the six month period ended 31 March 2022
The Company is pleased to announce its Interim Results for the
six-month period to 31 March 2022.
Electronic copies of the report will be available at the
Company's website www.blencoweresourcesplc.com
For further information please contact:
Blencowe Resources www.blencoweresourcesplc.com
Sam Quinn Tel: +44 (0) 1624 681 250
info@blencoweresourcesplc.com
Investor Enquiries Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com
Tavira Securities Limited Tel: +44 (0)203 192 1733
Jonathan Evans jonathan.evans@tavirasecurities.com
First Equity Limited Tel: +44 (0)20 7330 1883
Jason Robertson jasonrobertson@firstequitylimited.com
Interim Management Report
The past six months (and subsequent events to 31 March 2022)
have seen excellent progress at the Orom-Cross graphite project,
and the Company's profile in Uganda as a whole.
An internally generated Preliminary Economic Assessment ("PEA")
was delivered in October 2021 which highlighted a low cost, high
margin mining operation with strong Net Present Value and other key
performance indicators. This PEA will be augmented by a
Pre-Feasibility Study ("PFS") which is due mid-2022.
An extensive second diamond drilling programme at Orom-Cross in
2H 2021 delivered an updated JORC Standard Mineral Resource of
24.5Mt at 6.0% graphite, which was a 50% increment to the maiden
JORC Resource delivered in 2021. Furthermore, the high quantum of
Indicated and Measured Resources within this total means that
Blencowe has enough graphite for first 20 years life of mine, to be
included within the PFS. All necessary resource definition drilling
for first production is now completed.
The Company has been working continuously with graphite
technical experts SGS Lakeside in Canada to complete metallurgical
test work showing what quality of concentrate may be delivered at
Orom-Cross and results for this work have been outstanding. The
96-97% LOI concentrate will be a premium grade product, and the
specific attributes within this should ensure the end products are
attractive to a wide range of end users. Technical Data Sheets are
being prepared right now to send to prospective end users across
various industry sectors to gauge their initial interest for
various Orom-Cross products.
During the period Blencowe engaged leading Sustainability
consultants ERM to undergo a first stage program of working with
the Company to ensure that Orom-Cross delivers strong ESG
(environmental, social and governance) and sustainability
credentials. This is seen as a very important aspect moving forward
and the Company is particularly keen to get this right from the
start, to deliver as green an end product from as life cycle
sustainable a project as possible. Significant progress has already
been made but this is an ongoing exercise that will continue
forward as the project moves towards first production in 2023.
In 1Q 2022 the Company announced an earn-in agreement to
complement the Orom-Cross graphite project with the highly
prospective Akelikongo nickel project, also located in northern
Uganda. This is a synergistic exploration project located
approximately 150kms from Orom-Cross that previous owners SIPA
Resources and Rio Tinto had spent US$15 million on early stage
development, including 19,000m of drilling. There is already an
800m mineralised zone with both disseminated and massive nickel
sulphides and Blencowe will look to add value to Akelikongo via
extending this mineralised zone. An airborne electromagnetic survey
is underway to locate additional drill targets and, if successful,
these will be drilled in 2H 2022. Nickel is another key battery
metal with forecast future high demand, similar to graphite. Both
projects will be managed via the same in-country team within
Uganda.
Finally, in April 2022 Blencowe announced the first significant
institutional investor on the register, with highly recognised and
sought-after mining and resources fund RAB Capital taking a 10%
stake in the Company by investing a further GBP800,000. Their
support is appreciated and Blencowe hopes for further market
recognition once the PFS is delivered and the market is better able
to appreciate the value within the Company's emerging portfolio of
resource assets.
Despite Covid and the challenges this has presented,
particularly to travel, the Company has made substantial progress
in this period and will continue to do so ahead as further
milestones are delivered.
Mike Ralston
Chief Executive Officer
Responsibility Statement of the Directors in respect of the
Interim Report
The Directors are responsible for preparing the Interim
Financial Statements in accordance with applicable law and
regulations. In addition, the Directors have elected to prepare the
Interim Financial Statements in accordance with International
Financial Reporting Standards ("IFRSs"), as adopted by the United
Kingdom ("UK").
The Interim Financial Statements are required to give a true and
fair view of the state of affairs of the Group and of the profit or
loss of the Group for that period.
In preparing these Interim Financial Statements, the Directors
are required to:
-- select suitable accounting policies and then apply them consistently;
-- present information and make judgements that are reasonable,
prudent and provides relevant, comparable and understandable
information;
-- provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users to
understand the impact of particulars transactions, other events and
conditions on the entity's financial position and financial
performance; and
-- make an assessment of the Group's ability to continue as a going concern.
The Directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Group's
transactions and disclose with reasonable accuracy at any time its
financial position of the Group to enable them ensure that the
financial statements comply with the requirements of the Companies
Act 2006. They have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Group
and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and Interim Financial Statements. Legislation
governing the preparation and dissemination of Interim Financial
Statements may differ from one jurisdiction to another.
We confirm that to the best of our knowledge:
-- the Interim Financial Statements, prepared in accordance with
International Financial Reporting Standards as adopted by the UK,
give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group for the period;
-- the Director's report includes a fair review of the
development and performance of the business and the position of the
group, together with a description of the principal risks and
uncertainties that they face; and
-- the annual report and financial statements, taken as a whole,
are fair, balanced and understandable and provide the information
necessary for shareholders to assess the group's performance,
business model and strategy.
Consolidated Statement of Comprehensive Income for the six month
period ended 31 March 2022
6 months ended 6 months ended 12 months ended
31 Mar 2022 31 Mar 2021 30 Sep 2021
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Exploration costs (2,744) (1,999) (11,690)
Administrative fees and other expenses 5 (331,617) (304,238) (815,415)
Adjustments to Liability to Land Owners - - 117,639
--------------- --------------- ----------------
Operating loss (334,361) (306,237) (649,466)
Finance costs (21,974) (23,444) (45,260)
--------------- --------------- ----------------
Loss before tax (356,336) (629,681) (694,726)
Income tax - - -
Loss after tax (356,336) (329,681) (694,726)
--------------- --------------- ----------------
Other comprehensive income
Exchange differences on translation of foreign operation (2,061) - 3,662
Other comprehensive income, net of tax (2,061) - 3,662
Total comprehensive loss (358,397) (329,681) (691,064)
Basic and diluted loss per share (pence) 9 (0.27) (0.01) (0.61)
There was no other comprehensive income for the period ended on
31 March 2022.
Consolidated Statement of Financial Position as at 31 March
2022
As at As at As at
31 Mar 2022 31 Mar 2021 30 Sept 2021
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Non-Current Assets 5,815,114 4,390,956 5,296,289
Current assets
Trade and other receivables 6 248,413 84,717 52,580
Cash and cash equivalents 968,693 611,231 93,288
Total current assets 1,217,106 695,948 145,868
Total assets 7,032,220 5,086,904 5,442,157
Current liabilities
Creditors: Amounts falling due within one year 282,217 377,415 280,071
------------- ------------- --------------
Total current liabilities 282,217 377,415 280,071
Non-current liabilities
Surface liabilities 924,359 764,494 887,560
Total liabilities 1,206,576 1,141,909 1,167,631
Net assets 5,825,644 3,944,995 4,274,526
------------- ------------- --------------
Equity
Share capital 1,101,316 878,258 901,316
Share premium 6,841,596 4,884,146 5,132,081
Warrants reserves 317,876 164,601 317,876
Translation reserve 1,601 - 3,662
Retained earnings (2,436,745) (1,982,010) (2,080,409)
------------- ------------- --------------
Total equity 5,825,644 3,944,995 4,274,526
------------- ------------- --------------
Consolidated Statement of Changes in Equity for the six month
period ended 31 March 2022
Share option Retained Translation
Share capital Share premium reserves earnings reserve Total equity
GBP GBP GBP GBP GBP GBP
Balance as at 30
Sep 2020 783,333 3,876,650 100,471 (1,453,551) - 3,306,903
Total
comprehensive
loss for 6
months
Loss for the
period - - - (329,681) - (329,681)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss - - - (329,681) - (329,681)
Contributions
from equity
holders
New shares
issued 94,925 1,093,992 - - - 1,188,917
Share issue
costs - (86,496) - - - (86,496)
Issue of
warrants - - 77,194 - - 77,194
Warrants
exercised - - (13,064) 13,064 - -
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
contributions
from equity
holders 94,925 1,007,496 64,130 13,064 - 1,178,615
Balance as at 31
Mar 2021 878,258 4,884,146 164,601 (1,770,168) - 4,156,837
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss for 6
months
Loss for the
period - - - (365,045) - (365,045)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss - - - (365,045) - (365,045)
Contributions
from equity
holders
New shares
issued 23,058 250,308 - - - 273,366
Share issue
costs - (2,373) - - - (2,373)
Issue of
warrants - - 208,079 - - 208,079
Warrants
exercised (54,804) 54,804 - -
Exchange
differences on
translation of
foreign
operations - - - - 3,662 3,662
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
contributions
from equity
holders 23,058 247,935 153,275 54,804 3,662 482,734
Balance as at 30
Sep 2021 901,316 5,132,081 317,876 (2,080,409) 3,662 4,274,526
Total
comprehensive
loss for 6
months
-------------- -------------- ---------------- ---------------- ---------------- -------------
Loss for the
period - - - (356,336) - (356,336)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
comprehensive
loss - - - (356,336) - (356,336)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Contributions
from equity
holders
-------------- -------------- ---------------- ---------------- ---------------- -------------
New shares
issued 200,000 1,800,000 - - - 2,000,000
-------------- -------------- ---------------- ---------------- ---------------- -------------
Share issued
costs - (90,485) - - - (90,485)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Exchange
differences on
translation of
foreign
operations - - - - (2,061) (2,061)
-------------- -------------- ---------------- ---------------- ---------------- -------------
Total
contributions
from equity
holders 200,000 1,709,515 - - (2,061) 1,907,454
-------------- -------------- ---------------- ---------------- ---------------- -------------
Balance as at 31
Mar 2022 1,101,316 6,841,596 317,876 (2,436,745) 1,601 5,825,644
-------------- -------------- ---------------- ---------------- ---------------- -------------
Consolidated Statement of Cash Flows for the six month period
ended 31 March 2022
As at As at As at
31 Mar 2022 31 Mar 2021 30 Sept 2020
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Operating activities
Loss after tax 5 (356,336) (329,681) (694,726)
Amortisation - 1,349 -
Finance costs 21,974 23,444 45,260
Adjustment to Surface Liability - - (177,639)
Share issue/warrant cost - 64,130 285,273
Unrealised currency translation (61,217) - 55,785
Changes in working capital
Decrease/(increase) in trade and other receivables (195,833) (12,697) 19,441
Increase/(decrease) in trade and other payables 38,945 (229,635) (9,494)
------------- ------------- --------------
Net cash flows from operating activities (552,467) (483,090) (476,100)
Cash flows from financing activities
Investment in exploration assets (481,643) (213,956) (976,084)
------------- ------------- --------------
Net cash flows from investment activities (481,643) (213,956) (976,084)
Financing activities
Shares issued 2,000,000 1,188,917 -33,798
Shares issued (cost) (90,485) (86,496) 1,373,414
------------- ------------- --------------
Net cash flows from financing activities 1,909,515 1,102,421 1,339,616
Increase in cash and short-term deposits 875,404 405,375 (112,568)
Cash and short-term deposits brought forward 93,288 205,856 205,856
Cash and cash equivalents at end of period 968,692 611,231 93,288
------------- ------------- --------------
Notes to the Financial Statements for the six month period ended
31 March 2022
1. General
Blencowe Resources Plc (the "Company") is a public limited
company incorporated and registered in England and Wales on 18
September 2017 with registered company number 10966847 and its
registered office situated in England and Wales at 25 Bilton Road,
Rugby, CV22 7AG.
The Group did not earn any trading income during the period
under review but incurred expenditure in developing its principal
assets.
The Consolidated Interim Financial Statements of the Company for
the six month period ended 31 March 2022 comprise the financial
statements of the Company and its subsidiaries (together referred
to as the "Group").
2. Accounting Policies
Basis of preparation
The Interim Financial Statements of the Group are unaudited
condensed financial statements for the 6 month period ended 31
March 2022.
The accounting policies applied by the Group in these Interim
Financial Statements, are the same as those applied by the Group in
its consolidated financial statements, and have been prepared on
the basis of the accounting policies applied for the financial year
to 30 September 2021 which have been prepared in accordance with
IFRS as adopted by UK for. The Group Financial Statements have been
prepared using the measurement bases specified by IFRS each type of
asset, liability, income and expense.
The Group Financial Statements are presented in GBP, which is
the Group's functional currency. All amounts have been rounded to
the nearest pound, unless otherwise stated.
Comparative figures
The comparative figures have been presented as the Group
Financial Statements cover the 6 month period ended 31 March 2021
and the 12 month period ended 30 September 2021.
3. Critical accounting estimates and judgments
In preparing the Group 's Interim Financial Statements, the
Directors have to make judgments on how to apply the Group's
accounting policies and make estimates about the future. The
Directors do not consider there to be any critical judgments that
have been made in arriving at the amounts recognised in the Group
Financial Statements.
4. Significant accounting policies
The accounting policies adopted are consistent with those
followed in the preparation of the annual financial statements of
Blencowe Resources Plc for the year ended 30 September 2021. A copy
of these financial statements is available on the Group website at
https://blencoweresourcesplc.com/
5. Administrative fee and other expenses
6 months
ended 6 months 12 Months
31 Mar ended ended
2022 31 Mar 2021 30 Sep 2021
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Directors' remuneration 70,046 68,741 138,787
Professional fees 130,655 47,627 100,256
Salaries 60,000 18,000 58,000
Listing fees 19,783 19,593 42,535
Audit fees 4,375 12,500 25,000
Share issue/warrant cost - 77,194 285,273
Administration fees 23,500 28,500 52,000
Broker fees 29,542 3,244 48,990
Travelling expenses - 971 1,529
Miscellaneous fees (6,284) 27,868 63,045
------------
Total 331,617 304,238 815,415
------------ ------------- -------------
The Group did not employ any staff during the period other than
Directors. The Directors are the only members of key management and
their remuneration related solely to short term employee
benefits.
6. Trade and other receivables
6 months
ended 6 months 12 Months
31 Mar ended ended
2022 31 Mar 2021 30 Sep 2021
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Other receivables 37,997 22,002 8,752
Prepayments 210,416 62,715 43,828
------------ ------------- -------------
Total 248,413 84,717 52,580
7. Creditors: Amounts falling due within one year
6 months
ended 6 months 12 Months
31 Mar ended ended
2022 31 Mar 2021 30 Sep 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Payables 268,067 131,138 238,614
Land Owners Liability - 233,049 -
Accruals and provision 14,150 13,228 41,457
------------ ------------- -------------
Total 282,217 377,415 280,071
8. Creditors: Amounts falling after one year
CARU, the Company's subsidiary entered into an agreement for
surface rights over the land in the mineral area of the licence.
The land owners granted CARU a 49 year lease over an area. The
liability to the land owners is to be paid in 10 instalments on a
section basis as the project progresses. The progress on each
section is not limited to any time frames and is at the Group's
discretion.
6 months
ended 6 months 12 Months
31 Mar ended ended
2022 31 Mar 2021 30 Sep 2021
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Total payable at the beginning
of the period 887,560 1,024,737 1,024,737
Change in estimate - - (177,639)
Interest charged during the period 21,975 22,685 45,260
Exchange loss on valuation 14,825 (49,879) (4,798)
------------ ------------- -------------
Total payable as at period end 924,359 997,543 887,560
Analysis between current and
non-current liability
Payable within 12 months - - -
Payable after 12 months 924,359 997,543 887,560
------------ ------------- -------------
924,359 997,543 887,560
The value of the lease is measured at the present value of the
contractual payments due to the lessor
over the lease term, with the discount rate of 5%.
9. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
6 months ended 6 months ended 12 Months ended
31 Mar 2022 31 Mar 2021 30 Sep 2021
(Unaudited) (Unaudited) (Audited)
------------------------------------------------------------------ --------------- --------------- ----------------
Earnings GBP GBP GBP
Loss from continuing operations for the period attributable to
the equity holders of the Group (353,336) (329,681) (694,726)
Number of shares
Weighted average number of Ordinary Shares for the purpose of
basic and diluted earnings per
share 133,655,997 98,345,650 114,070,173
------------------------------------------------------------------ --------------- --------------- ----------------
Basic and diluted loss per share (pence) (0.27) (0.34) (0.61)
------------------------------------------------------------------ --------------- --------------- ----------------
There are no potentially dilutive shares in issue.
10. Related party transactions
The are no related party transactions during the period except
for the Directors' remuneration, which have been disclosed in note
5.
Sam Quinn is a director and shareholder of the Company and a
Director of Lionshead Consultants Limited. During the period,
Lionshead Consultants Limited charged fees for consultancy fees of
GBP26,400 (31 March 2021: GBP12,000 and 30 Sep 2021:
GBP24,000).
11. Events after the reporting date
On 16 April 2022, the Company issued 16,000,000 new ordinary
shares of 0.06p at a price of 5p per new ordinary share. In
addition, the holder of these share will receive 1 warrant per 2
placing shares, exercisable at 8p for 3 years from admission.
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