TIDMSKA
RNS Number : 4189N
Shuka Minerals PLC
25 September 2023
25 September 2023
SHUKA MINERALS PLC
("Shuka" or the "Company")
Interim Results for the six months to 30 June 2023
Shuka Minerals plc (AIM: SKA), an African focused mine operator
and developer, announces the Company's unaudited interim results
for the six months ended 30 June 2023.
CEO'S report
I am pleased to present the Company's Interim Results for the
six-month period from 1 January 2023 to 30 June 2023. The period
was a transformative one for the Company, particularly from a
corporate perspective with a strategic investment of GBP1.47
million secured from two African focused mining investment groups,
an intended significant restructuring of the Board of Directors, a
change of name to Shuka Minerals plc (which was successfully
approved by shareholders subsequent to the end of the period) and
the application of the funds raised to not only fund its ongoing
working capital requirements at its operating Rukwa Coal Mine, but
also to fund due diligence costs associated with ongoing review
work of potential new and strategically complimentary projects in
Africa.
The most notable development during the six-month period, was
the strategic investment that the Company was able to secure with Q
Global Commodities Group, one of South Africa's leading independent
commodity, mining, logistics and investment funds and with Gathoni
Muchai Investments Limited, an East Africa based mining investment
group. As part of this investment, the Company received an
aggregate GBP1.47 million of new funding, with GBP575,000 received
in June 2023, and the GBP893,000 balance received in September 2023
following shareholder approval at the Annual General Meeting held
on 3 August 2023.
In conjunction with this strategic investment, the Company
commenced a major restructuring and strengthening of its Board, and
I was pleased to confirm the appointment of Mr Jason Brewer, a
director of Gathoni Muchai Investments and the CEO of London-listed
Marula Mining Plc, as Executive Director of the Company in June
2023. I am also looking forward to the proposed appointment of Mr
Quinton van der Burgh later this year, who is the founder and CEO
of Q Global Commodities and one of South Africa's leading mining
entrepreneurs, and who will join the Company as Director and
Non-Executive Chairman, subject to satisfactory completion of
customary due diligence by the Company's Nominated Adviser. Mr
Nicholas von Schirnding, resigned as a director of the Company,
with effect from 31 October 2023. I would like to thank Nick for
his work and commitment to the Company over the years and would
like to welcome Jason and, in due course, Quinton to the Board,
whom I believe will be transformative appointments for the Company
as it looks to re-establish itself over the coming months as a
leading African focused mining and development company.
During the period and while the Company completed its corporate
restructuring and recapitalisation, the Company continued to manage
day-to-day operations at its wholly owned Rukwa Coal Mine in
Tanzania. Operations during the period were quite challenging as a
result of the high moisture content in the run-of-mine ("ROM") coal
stockpile, which impacted on the coal washing process and coal
production over the period. As a result of the wash plant
performance and ongoing maintenance work on plant and equipment
during the period, only limited coal sales were made into the
regional markets during the period. The Company continues to review
its ongoing investment in the Rukwa Coal Mine and targeted
production rates. In parallel with its operational activities, the
Company continued in its discussions with the Mining Commission in
Tanzania, to ensure ongoing compliance with local regulations, and
to address previously disclosed outstanding legacy matters
concerning claims and litigation and the status of the mining
licence.
The strategic investment received from Gathoni Muchai
Investments and Q Global Commodities has ensured that the Company
has been able to fund its ongoing working capital needs and
corporate and mining development activities, and importantly fund
costs associated with the evaluation of potential complementary
advanced mining and mine development projects across Africa with
the support and active involvement of these two new major
shareholders.
I look forward to providing further updates as we progress our
strategy and to operating under our new company name of Shuka
Minerals plc which was approved by shareholders at the Annual
General Meeting held on 3 August 2023, and officially announced on
1 September 2023. This is a name which certainly reflects our
position as a mine operator in east Africa and as a truly African
focused mining and development company that is committed to
ensuring its activities demonstrate a commitment to environmental
sustainability, community engagement, and responsible mining
practices.
I would like to thank all our shareholders for their ongoing
support and I look forward to working alongside my fellow directors
and all key stakeholders over the rest of 2023.
Noel Lyons
Chief Executive Officer
For further information please contact:
Shuka Minerals Plc info@shukaminerals.com
Jason Brewer - Executive Director
Noel Lyons - Chief Executive Officer
Strand Hanson Limited +44 (0) 20 7409 3494
(Financial and Nominated Adviser)
James Harris
Richard Johnson
Tavira Securities Limited +44 (0) 20 7100 5100
(Joint Broker)
Oliver Stansfield
Jonathan Evans
Peterhouse Capital Limited +44 (0) 20 3934 6630
(Joint Broker)
Charles Goodfellow
Duncan Vasey
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
23 22 22
Unaudited Unaudited Audited
Note GBP GBP GBP
Revenue 68,926 56,146 183,448
Cost of sales (151,627) (452,484) (896,147)
Gross loss (82,701) (396,338) (712,699)
Administrative expenses (656,060) (423,627) (1,038,384)
Group operating loss (738,761) (819,965) (1,751,083)
Finance income - - 68
Finance costs (7,562) (675) (4,747)
Loss on operations before taxation (746,323) (820,640) (1,755,762)
Taxation - - (917)
Loss for the period after taxation (746,323) (820,640) (1,756,679)
Other comprehensive income/(loss): - - -
(Loss)/gain on translation of
overseas subsidiary (335,033) 624,211 691,850
Total comprehensive loss for
the period (1,081,356) (196,429) (1,064,829)
Attributable to:
Equity holders of the Company (1,080,722) (195,155) (1,062,161)
Non-controlling interest (634) (1,274) (2,668)
(1,081,356) (196,429) (1,064,829)
Loss per share
- basic and diluted (pence) 2 (2.54) (3.79) (7.97)
The income for the period arises from the Group's continuing
operations.
CONSOLIDATED statement of financial position
as at 30 June 2023
As at As at As at
30 June 30 June 31 Dec
23 22 22
Unaudited Unaudited Audited
Note GBP GBP GBP
Non-current assets
Property, plant and equipment 4 5,568,304 5,906,709 5,911,876
Intangible assets 5 333,907 349,607 352,627
5,902,211 6,256,316 6,264,503
Current assets
Inventories 111,516 180,124 117,766
Trade and other receivables 309,778 353,457 347,984
Cash and cash equivalents 440,655 477,438 237,300
861,949 1,011,019 703,050
Current liabilities
Trade and other payables (745,718) (308,174) (402,200)
Borrowings (27,817) (5,206) (29,376)
(773,535) (313,380) (431,576)
Current assets less current
liabilities 88,414 697,639 271,474
Total assets less current liabilities 5,990,625 6,953,955 6,535,977
Non - current liabilities
Borrowings (52,375) - (67,128)
Environmental rehabilitation
liability (28,984) (27,339) (30,609)
Net assets 5,909,266 6,926,616 6,438,240
Capital and reserves
Called-up share capital 4,348,744 4,176,601 4,233,744
Share premium account 23,009,976 22,254,317 22,569,976
Share based payment reserve 210,037 346,774 277,654
Foreign currency translation
reserve 937,960 1,205,354 1,272,993
Retained earnings (22,574,502) (21,038,103) (21,896,430)
Issued capital and reserves
attributable to owners of the
parent company 5,932,215 6,944,943 6,457,937
Non-controlling interest (22,949) (18,327) (19,697)
Total equity 5,909,266 6,926,616 6,438,240
CONSOLIDATED statement of changes in equity
--------------------------------------------------Equity
Interests---------------------------------------
Share Share Retained Share Foreign Total Non-controlling Total
Capital Premium Earnings Option Currency interest
Account Reserve Translation
Reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2023 4,233,744 22,569,976 (21,896,430) 277,654 1,272,993 6,457,937 (19,697) 6,438,240
Comprehensive
Income
for the year
Foreign
currency
translation - - - - (335,033) (335,033) (2,464) (337,497)
Loss for the
year - - (745,689) - - (745,689) (634) (746,323)
---------- ----------- ------------- --------- ------------ ------------ ---------------- ------------
Total
comprehensive
income for
the year - - (745,689) - (335,033) (1,080,722) (3,098) (1,083,820)
Transactions
with
owners
Issue of share
capital 115,000 460,000 - - - 575,000 - 575,000
Share issue
costs - (20,000) - - - (20,000) - (20,000)
Lapsed share
options - - 67,617 (67,617) - - - -
---------- ----------- ------------- --------- ------------ ------------ ---------------- ------------
Total
transactions
with owners 115,000 440,000 67,617 (67,617) - 555,000 - 555,000
Non-
controlling
interest
share of
goodwill - - - - - - (154) (154)
At 30 June
2023 4,348,744 23,009,976 (22,574,502) 210,037 937,960 5,932,215 (22,949) 5,909,266
========== =========== ============= ========= ============ ============ ================ ============
--------------------------------------------------Equity
Interests---------------------------------------
Share Share Retained Share Option Foreign Total Non-controlling Total
Capital Premium Earnings Reserve Currency interest
Account Translation
Reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January 2022 4,176,601 22,254,317 (20,325,577) 453,614 581,143 7,140,098 (17,328) 7,122,770
Comprehensive
Income
for the year
Foreign currency
translation - - - - 624,211 624,211 - 624,211
Loss for the year - - (819,366) - - (819,366) (1,274) (820,640)
---------- ----------- ------------- ------------ ---------- ------------------ ---------------- ------------
Total
comprehensive
income for the
year - - (819,366) - 624,211 (195,155) (1,274) (196,429)
Transactions with
owners
Lapsed share
options - - 106,840 (106,840) - - - -
---------- ----------- ------------- ------------ ---------- ------------------ ---------------- ------------
Total
transactions
with owners - - 106,840 (106,840) - - - -
Non- controlling
interest share
of
goodwill - - - - - - 275 275
At 30 June 2022 4,176,601 22,254,317 (21,038,103) 346,774 1,205,354 6,944,943 (18,327) 6,926,616
========== =========== ============= ============ ========== ================== ================ ============
--------------------------------------------------Equity
Interests---------------------------------------
Share Share Retained Share Foreign Total Non-controlling Total
Capital Premium Earnings Option Currency interest
Account Reserve Translation
Reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January 2022 4,176,601 22,254,317 (20,325,577) 453,614 581,143 7,140,098 (17,328) 7,122,770
Comprehensive
Income
for the year
Foreign currency
translation - - - - 691,850 691,850 691,850
Loss for the year - - (1,754,011) - - (1,754,011) (2,668) (1,756,679)
---------- ----------- ------------- ---------- ------------ ------------ ---------------- ------------
Total
comprehensive
income for the
year - - (1,754,011) - 691,850 (1,062,161) (2,668) (1,064,829)
Transactions with
owners
Issue of share
capital 57,143 342,857 - - - 400,000 - 400,000
Share issue costs - (20,000) - - - (20,000) - (20,000)
Share
options/warrants
charge - (7,198) - 7,198 - - - -
Lapse of share
options/warrants - - 183,158 (183,158) - - - -
---------- ----------- ------------- ---------- ------------ ------------ ---------------- ------------
Total
transactions
with owners 57,143 315,659 183,158 (175,960) - 380,000 - 380,000
Non- controlling
interest share
of
goodwill - - - - - - 299 299
At 31 December
2022 4,233,744 22,569,976 (21,896,430) 277,654 1,272,993 6,457,937 (19,697) 6,438,240
========== =========== ============= ========== ============ ============ ================ ============
consolidated CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
23 22 22
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Operating loss (738,761) (819,965) (1,751,083)
Depreciation 30,542 144,039 324,790
Movement in inventories - (20,310) 40,903
Movement in trade and other receivables (16,825) 185,761 (92,615)
Movement in trade and other payables 358,750 (112,135) (26,820)
Loss on foreign exchange (1,977) (115,391) (4,614)
Expected credit losses - - 242,780
----------- ----------- ------------
Net cash used in operating activities (368,271) (738,001) (1,266,659)
----------- ----------- ------------
---
Tax Paid - - (1,319)
Cash flows from investing activities
Purchase of property, plant and
equipment - - (41,236)
Finance income - 48 68
Net cash used in investing activities - 48 (41,168)
----------- ----------- ------------
Cash flows from financing activities
Repayment of lease liabilities (11,536) (14,078) (22,138)
Lease interest (4,483) (723) (1,793)
Other interest paid (3,079) - -
Proceeds on issue of ordinary
shares 614,850 - 360,150
Share issue costs (20,000) - (20,000)
Net cash generated from financing
activities 575,752 (14,801) 316,219
----------- ----------- ------------
Net increase/(decrease) in cash
and cash equivalents 207,481 (752,754) (992,927)
Cash and cash equivalents at beginning
of year 237,300 1,229,801 1,229,801
Exchange losses on cash and cash
equivalents (4,126) 391 426
Cash and cash equivalents at
end of year 440,655 477,438 237,300
=========== =========== ============
NOTES TO THE INTERIM REPORT
1. Financial information and basis of preparation
The interim financial statements of Shuka Minerals Plc are
unaudited consolidated financial statements for the six months
ended 30 June 2023 which have been prepared in accordance with UK
adopted international accounting standards. They include unaudited
comparatives for the six months ended 30 June 2022 together with
audited comparatives for the year ended 31 December 2022.
The interim financial statements do not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006. The statutory accounts for the year ended 31 December 2022
have been reported on by the company's auditors and have been filed
with the Registrar of Companies. The report of the auditors
contained a qualified opinion and an Emphasis of mater paragraph on
Operationalisation of up to 16% Government of Tanzania non-dilutive
free carried share interest and the recoverability of VAT in
Tanzania. Aside from the Qualification and Emphasis of matter
paragraphs above, the auditor's report did not contain any
statement under section 498 of the Companies Act 2006.
The interim consolidated financial statements for the six months
ended 30 June 2023 have been prepared on the basis of accounting
policies expected to be adopted for the year ended 31 December
2023. These are anticipated to be consistent with those set out in
the Group's latest financial statements for the year ended 31
December 2022. These accounting policies are drawn up in accordance
with adopted International Accounting Standards ("IAS") and
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board.
2. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
30 June 23 30 June 22 31 December
22
GBP GBP GBP
Loss after taxation (746,323) (820,640) (1,756,679)
Weighted average number
of shares in the period 29,329,474 21,645,575 22,036,964
Basic and diluted loss
per share (pence) (2.54) (3.79) (7.97)
The loss attributable to equity shareholders and weighted
average number of ordinary shares for the purposes of calculating
diluted earnings per ordinary share are identical to those used for
basic earnings per ordinary share. This is because the exercise of
share options and warrants would have the effect of reducing the
loss per ordinary share and is therefore anti-dilutive.
3. Dividends
No dividends are proposed for the six months ended 30 June 2022
(six months ended 30 June 2021: GBPnil, year ended 31 December
2021: GBPnil).
4. Property, plant and equipment
Coal Production Plant Fixtures Motor vehicles
assets & machinery & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
As at 1 January
2023 5,855,019 1,344,491 7,554 328,480 7,535,544
Foreign exchange
adjustment (310.858) (70,984) (180) (16,553) (398,575)
At 30 June 2023 5,544,161 1,273,507 7,374 311,927 7,136,969
Accumulated depreciation
As at 1 January
2023 173,642 1,301,920 7,445 140,661 1,623,668
Depletion/Charge
for the year 3,849 3,760 13 22,920 30,542
Foreign exchange
adjustment (9,227) (68,846) (180) (7,292) (85,545)
At 30 June 2023 168,264 1,236,834 7,278 156,289 1,568,665
Net book value
As at 30 June 2023 5,375,897 36,673 96 155,638 5,568,304
Coal Production Plant Fixtures Motor vehicles
assets & machinery & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
As at 1 January
2022 5,230,294 1,201,831 7,191 193,620 6,632,936
Foreign exchange
adjustment 574,580 131,210 334 19,437 725,561
At 30 June 2022 5,804,874 1,333,041 7,525 213,057 7,358,497
Accumulated depreciation
As at 1 January
2022 114,026 925,484 7,045 134,460 1,181,015
Depletion/Charge
for the year 3,587 132,234 18 8,200 144,039
Foreign exchange
adjustment 12,518 100,880 334 13,002 126,734
At 30 June 2022 130,131 1,158,598 7,397 155,662 1,451,788
Net book value
As at 30 June 2022 5,674,743 174,443 128 57,395 5,906,709
4. Property, plant and equipment (continued)
Coal Production Plant Fixtures Motor vehicles
assets & machinery & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
As at 1 January
2022 5,230,294 1,201,831 7,191 193,620 6,632,936
Additions - - - 141,141 141,141
Adjustments - - - (27,414) (27,414)
Foreign exchange
adjustment 624,725 142,660 363 21,133 788,881
At 31 December
2022 5,855,019 1,344,491 7,554 328,480 7,535,544
---------------- ------------- ------------ --------------- ----------
Accumulated depreciation
As at 1 January
2022 114,026 925,484 7,045 134,460 1,181,015
Depletion/Charge
for the year 46,002 259,777 37 18,974 324,790
Adjustments - - - (27,414) (27,414)
Foreign exchange
adjustment 13,614 116,659 363 14,641 145,277
At 31 December
2022 173,642 1,301,920 7,445 140,661 1,623,668
---------------- ------------- ------------ --------------- ----------
Net book value
As at 31 December
2022 5,681,377 42,571 109 187,819 5,911,876
---------------- ------------- ------------ --------------- ----------
5. Intangible assets
Mining Licences Total
GBP GBP
Cost or valuation
As at 1 January 2023 1,667,530 1,667,530
Foreign exchange
adjustment (88,530) (88,530)
At 30 June 2023 1,579,000 1,579,000
------------------ ------------
Accumulated amortisation
and impairment
As at 1 January 2023 1,314,903 1,314,903
Foreign exchange
adjustment (69,810) (69,810)
At 30 June 2023 1,245,093 1,245,093
------------------ ------------
Net book value
------------------ ------------
As at 30 June 2023 333,907 333,907
------------------ ------------
5. Intangible assets (continued)
Mining Licences Total
GBP GBP
Cost or valuation
As at 1 January 2022 1,489,604 1,489,604
Foreign exchange adjustment 163,644 163,644
At 30 June 2022 1,653,248 1,653,248
------------------ ------------
Accumulated amortisation
and impairment
As at 1 January 2022 1,174,602 1,174,602
Foreign exchange adjustment 129,039 129,039
At 30 June 2022 1,303,641 1,303,641
------------------ ------------
Net book value
------------------ ------------
As at 30 June 2022 349,607 349,607
------------------ ------------
Mining Licences Total
GBP GBP
Cost or valuation
As at 1 January 2022 1,489,604 1,489,604
Foreign exchange adjustment 177,926 177,926
At 31 December 2022 1,667,530 1,667,530
------------------ ------------
Accumulated amortisation
and impairment
As at 1 January 2022 1,174,602 1,174,602
Foreign exchange adjustment 140,301 140,301
At 31 December 2022 1,314,903 1,314,903
------------------ ------------
Net book value
------------------ ------------
As at 31 December 2022 352,627 352,627
------------------ ------------
6. Share capital
No GBP No GBP GBP
Ordinary Ordinary Deferred Deferred Total
shares shares shares of shares share
of 1p each of 0.02p/1p 0.001p each of 0.001p capital
each each
Issued and fully
paid
At 1 January 2022 21,645,575 216,457 396,014,437,346 3,960,144 4,176,601
On 7 December
2022 the company
issued 5,714,286
Ordinary 1p shares
at 7p each 5,714,286 57,143 - - 57,143
As at 31 December
2022 27,359,861 273,600 396,014,437,346 3,960,144 4,233,744
============ ============= ================ =========== ==========
No GBP No GBP GBP
Ordinary Ordinary Deferred Deferred Total
shares shares shares of shares share
of 1p each of 0.02p/1p 0.001p each of 0.001p capital
each each
Issued and fully
paid
At 1 January 2022
and 30 June 2022 21,645,575 216,457 396,014,437,346 3,960,144 4,176,601
============ ============= ================ =========== ==========
No GBP No GBP GBP
Ordinary Ordinary Deferred Deferred Total
shares shares shares of shares share
of 1p each of 0.02p/1p 0.001p each of 0.001p capital
each each
Issued and fully
paid
At 1 January 2023 27,359,861 273,600 396,014,437,346 3,960,144 4,233,744
On 31 May 2023
the company issued
11,500.000 Ordinary
1p shares at 5p
each 11,500,000 115,000 - - 115,000
As at 31 December
2022 38,859,861 388,600 396,014,437,346 3,960,144 4,348,744
============ ============= ================ =========== ==========
7. Distribution of interim report to shareholders
The interim report will be available for inspection by the
public at the registered office of the Company during normal
business hours on any weekday and from the Company's website
http://www.shukaminerals.com/ . Further copies are available on
request.
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IR PPUACBUPWGAP
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