The information contained within
this announcement is deemed to constitute inside information as
stipulated under the retained EU law version of the Market Abuse
Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's
obligations under Article 17 of the UK MAR. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
27 March 2024
Technology Minerals
Plc
("Technology Minerals" or the
"Company")
Interim
Results
Technology Minerals Plc (LSE: TM1), the first listed UK company focused on
creating a sustainable circular economy for battery metals, is
pleased to announce its results for the six months to 31 December
2023.
HIGHLIGHTS
Recyclus Group Ltd ("Recyclus")
An
associate undertaking, 48.35% owned by Technology
Minerals
· First
UK industrial scale lithium-ion ("Li-ion") battery recycling plant
operational following successful completion of the Commissioning
Phase at the Recyclus facility in Wolverhampton, West
Midlands.
o Accumulated 100 tonnes of feedstock, the maximum allowed under
the Environmental Agency ("EA") permit, achieved a significant rise
in recycling production and reached up to 45% net black mass
yield.
· Received the variation licence from the EA in October 2023 to
commence full automated operations at its lead acid battery
recycling plant in Tipton, West Midlands.
· Received first orders of LiBoxes, from automotive retail group
Waylands, to store waste Li-ion batteries
across its Volvo retail network sites in Bristol, Reading and
Oxford.
· WMG,
University of Warwick, selected Recyclus to design and supply an
industrial grade Li-ion battery shredder.
· Filed
an International Patent Application for its lead paste
desulphurisation process, developed from its recycling facility in
Tipton, under the Patent Co-operation Treaty.
· Strengthened team with the appointment of automotive industry
experts Andrew Goss and Phil Hodgkinson, and Sadie Wigglesworth as
consultants.
· Proposed acquisition of the remaining issued capital of
Recyclus continues to progress as planned. The latest iteration of
the prospectus was submitted to FCA recently and a further draft
expected to be submitted next month. Consequently, the Company
expects that the prospectus will be circulated for shareholder
approval in Q2 2024.
Mineral Exploration
· Global
Battery Metals Ltd ("GBML") exercised its Second Option at the
Leinster Property, bringing its interest in the project to
55%.
· GBML
completed a structural remote sensing study at Leinster, with 25
new exploration targets identified, and completed the inaugural
first phase of drilling on the Knockeen Lithium Pegmatite
Project.
· Received assay results from the initial Knockeen shallow
trench sampling programme at Leinster, with results grading as high
as 2.55% Li2O.
Post Period End
· Recyclus appointed Anwar Sattar, a Chemical Engineer with
extensive expertise in Li-ion battery recycling chemistries, as its
Scientific Director with effect from 2 January 2024.
· On 3
January 2024, the Company entered into a Convertible Bond facility
with CLG Capital LLC for £5 million, drawable in agreed tranches.
At the date of this report a gross amount of £600,000 had been
drawn and warrants over an aggregate of 18,126,495 Ordinary shares
have been issued, of which 8,115,162 are exercisable until at a
price of £0.01848 per share and 10,011,333 are exercisable at
£0.01498 per share until 5 and 18 January 2027, respectively. The
number of warrants issued were based on the first two tranches of a
total of £1 million and will be adjusted accordingly to reflect the
amounts drawn.
· In
January 2024, an offer was made to warrant holders to exercise
warrants on revised terms. 11,062,783 new ordinary shares were
issued from the exercise of such warrants, raising £0.1
million.
· In
February 2024, Recyclus signed an agreement with Servicesure
Autocentres ("Servicesure") to receive Li-ion batteries for
recycling from its network of independent autocentres.
· On 20
March 2024, the Company entered into a Convertible Bond Facility
with Atlas Capital Markets ("ACM") in the total amount of £5.5
million, drawable in agreed tranches. At the date of this report,
£1.5 million had been drawn.
· On 29
March 2024, Recyclus won the Automotive award at The Engineer's
Collaborate to Innovate for its Universal Battery Recycling System
in collaboration with University of Birmingham ("UoB").
Alex Stanbury, Chief Executive Officer of Technology Minerals,
said: "We have seen significant progress during the period,
culminating in the completion of commissioning at Recyclus' Li-ion
recycling plant which is operational and the initiation of the
commissioning phase at the Tipton lead acid site. Production
volumes continue to build as we scale up operations at the UK's
first industrial scale Li-ion battery recycling plant, which is
achieving a 45% recycling rate from end-of-life battery to black
mass, containing minerals that are in high demand and are crucial
for the battery manufacturing sector. Ensuring there is security of
supply of additional sources of critical minerals through recycling
will be pivotal amidst the ongoing push for electrification, both
in the UK and Europe.
"Additionally, we continue to advance our exploration assets
and saw particularly positive outcomes at the Leinster Lithium
Project in Ireland. By working with exploration partners to advance
the development of our diverse assets, we see potential to add
significant value to the portfolio without taking on the more
substantial costs associated with developing exploration
assets.
"With the crucial building blocks in place, and the proposed
acquisition of Recyclus progressing, we believe we are well
positioned to see a significant ramp-up in the production of black
mass from operations in 2024 as we execute our strategy to create a
fully circular economy for battery metals and continue to further
enhance our processes and technologies for long term
growth."
Enquiries
Technology Minerals Plc
|
|
Robin Brundle, Executive
Chairman
Alexander Stanbury, Chief Executive
Officer
|
c/o +44 (0)20 4582 3500
|
|
|
Oberon Investments Limited (Broker)
|
|
Nick Lovering, Adam
Pollock
|
+44 (0)20 3179 5300
|
|
|
Gracechurch Group (Financial PR)
|
|
Harry Chathli, Alexis Gore, Rebecca
Scott
|
+44 (0)20
4582 3500
|
About Technology Minerals Plc
Technology Minerals is developing
the UK's first listed, sustainable circular economy for battery
metals, using cutting-edge technology to recycle, recover, and
re-use battery technologies for a renewable energy future. The
Company currently holds 48.35% of the issued share capital of
Recyclus Group Ltd, the UK's first industrial-scale recycler of
both lithium-ion and lead batteries.
Technology Minerals is focused on
raw material exploration required for Li-ion batteries, whilst
solving the ecological issue of spent Li-ion batteries, by
recycling them for re-use by battery manufacturers. Further
information on Technology Minerals is available at
www.technologyminerals.co.uk.
INTERIM MANAGEMENT REPORT
Overview
The past six months have been a
period of significant progress for Technology Minerals and
Recyclus, during which it has achieved multiple key milestones in
its strategy to create a fully circular economy for critical
battery metals.
Recyclus has considerably
strengthened the foundations required to scale-up operations at
both its Li-ion and lead acid recycling plants, having commenced
operations at the Wolverhampton Li-ion site which have already
yielded impressive results in purity of the black mass produced,
whilst entering the commissioning phase at its Tipton lead acid
facility. In a clear indication of Recyclus' status as a pioneer in
the battery sector with a strong reputation, Recyclus was selected
by the UK government as a founding member of its UK Battery
Strategy Taskforce.
In addition, Technology Minerals has
continued to progress advancing the value of its diverse range of
critical battery mineral exploration assets across the globe,
mostly notably with the Leinster Lithium project in
Ireland.
Operating Review
Driving the circular economy for
Li-ion batteries across the UK
Wolverhampton (Li-ion battery
recycling)
Recyclus successfully concluded the
commissioning phase at its Wolverhampton plant in September 2023,
the first plant in the UK with the capacity to recycle Li-ion
batteries on an industrial scale. The plant is now fully
operational and receiving a steady influx of Li-ion battery waste
from various commercial sources, for which it has already achieved
a very significant recycling rate of up to 45% net black mass
yield. Recyclus has also accumulated the 100 tonnes of feedstock
allowed under the EA permit. Since completing the commissioning
phase, Recyclus has focused on building up production volumes at
the plant, which is permitted to process 22,000 tonnes of Li-ion
batteries per annum.
Recyclus' state-of-the-art
Wolverhampton facility processes waste Li-ion batteries into black
mass, which contains critical battery metals that can be
reprocessed and sold back into the battery manufacturing supply
chain. Recyclus anticipates the receipt of gate fees for collection
and storage of spent Li-ion batteries, and from the sale of black
mass and other recycled materials produced during the recycling
process. Through the provision of this much-needed technology,
Recyclus is uniquely positioned to address the challenges
associated with increasing levels of battery waste created by the
global sustainable shift towards electrification. The Wolverhampton
site is expected to process 8,300 tonnes of battery waste in its
first full year of production and represents the first of five
plants which Recyclus aims to construct in the UK.
Post-period, Recyclus signed
agreements to receive Li-ion batteries for recycling from
Servicesure, a prominent network of more than 600 independent
autocentres in the UK, and from Beryl, a UK-based shared
sustainable transport operator.
Tipton (lead acid recycling)
Recyclus' Tipton lead acid battery
recycling plant entered its commissioning phase in October 2023,
having received final clearance by the EA to commence fully
automated operations. Commissioning was paused in late 2023 to
enable Recyclus to focus resources at its Li-ion processing plant
at Wolverhampton and is expected to resume in Q2 2024. The plant is
designed to process up to 12 tonnes per hour of lead acid batteries
at an industrial-scale using a fully automated system that does not
release any particle or gas emissions into the atmosphere,
recycling them into their constituent parts to recover lead, acid
and plastic materials for reuse in a wide range of industries. By
recycling lead acid batteries in a sustainable manner, Recyclus
will play a key role in keeping resources in use for longer,
minimising waste and reducing the environmental impact of spent
batteries.
Recyclus also achieved
patent-pending status for its proprietary lead paste
desulphurisation process developed from the plant in July 2023. The
innovative process significantly reduces the sulphur content of the
recycled lead paste to produce 'alpha' paste, which when smelted
produces lower levels of hazardous sulphur oxide (SOx) and in turn
requires lower levels of energy through the smelting process which
reduces smelting costs. The process also reduces water consumption
by assisting the filtration rate during smelting. Recyclus
continues to work towards achieving patent status for this
pioneering solution which will address multiple key concerns in the
lead acid battery recycling industry.
LiBox Battery Storage and Transportation
Boxes
In November 2024, Recyclus made its
first delivery of its LiBox storage and transportation boxes to automotive retail group
Waylands, which is using them to store waste Li-ion batteries
across its Volvo outlets in Bristol, Reading and Oxford.
Recyclus has developed LiBox as part
of its commitment to the safe handling of Li-ion batteries, and
provision of an integrated one point of contact waste management
solution to customers. The boxes hold UN-standard safety
certification having satisfied the rigorous safety standards
required and are also compliant with ADR certification P911(1)
which is required for the transportation of hazardous goods. The
award of both certifications confirmed Recyclus' ability to safely
store and transport batteries, highlighting the importance of
security and safety in the battery supply chain.
Appointments
In July 2023, Recyclus appointed
automotive industry experts Andrew Goss and Phil Hodgkinson as
consultants with effect from 1 July 2023. Their extensive sector
knowledge, experience and global networks across the automotive and
gigafactory sectors will prove invaluable as Recyclus embarks on
the next phase of its development to become a leader for the UK in
the circular economy for batteries, accelerating the transition
towards a green low carbon economy.
In September 2023, Recyclus
appointed experienced automotive industry consultant, Sadie
Wigglesworth, as sales and marketing adviser to boost Recyclus'
visibility, grow existing partnerships and attract new
ones.
Post period, Recyclus appointed
Anwar Sattar as its Scientific Director. As an
accomplished Chemical Engineer with strong expertise in Li-ion
battery recycling, Anwar will support Recyclus' in accelerating the
roll-out of additional plants across the UK and further refinement
of its black mass recovery process.
Proposed Acquisition of Recyclus
Technology Minerals' proposed
acquisition of the remaining issued share capital of Recyclus
continues to progress well and marks the next stage of Technology
Minerals' growth as a key player in enabling the transition towards
a cleaner, lower carbon future in the UK and beyond. The
acquisition will crystallise Technology Minerals' efforts to create
a fully circular economy for battery metals by consolidating both
the minerals exploration and battery recycling businesses in line
with the Company's twin-track strategy.
Developing mobile recycling system
in Partnership with University of Birmingham
Recyclus, in collaboration with the
UoB, was awarded a grant of £1.96 million from the UK Government's
Innovate UK to create a mobile battery recycling unit capable of
safely handling any kind of Li-ion battery in March
2023.
Recyclus is leading the project to
design and build a compact prototype Universal Battery Recycling
System ("UBRS") based upon Recyclus' existing technology for
industrial scale Li-ion battery recycling, in the form of a mobile
recycling truck. UoB will provide leading edge 3D printing
techniques incorporating additive manufacturing for the required
cutting tools. The system will reduce Li-ion batteries into their
constituent parts including black mass, whilst being completely
sealed and emission free.
The Recyclus mobile unit will
provide a reliable, cost-effective and automated solution for the
safe and environmentally friendly recycling of Li-ion batteries
across the UK, to accelerate recovery of the critical raw materials
needed for the transition towards electrification whilst
significantly reducing the use of landfill. Securing the funding
from Innovate UK is a strong endorsement for Recyclus, and the
vital nature of the project.
Post period, Recyclus gained further
recognition of its collaborative efforts at The Engineer
Collaborate to Innovate awards, in which it won in the Automotive
category. This award stands as an endorsement for the innovative
work that Recyclus has accomplished through its collaboration with
the UoB.
Partnership with Warwick Manufacturing Group
("WMG")
Recyclus, following a competitive
tender process, was selected by WMG, University of Warwick in
November 2023 to design, manufacture, supply, install, commission
and train operators for the use of an industrial grade Li-ion
battery shredder. Based on Recyclus' pioneering industrial scale
Li-ion battery recycling plant at Wolverhampton, the shredder will
enable WMG to shred cells and modules in a safe manner to further
advance its research in battery recycling technologies and black
mass. The partnership is a strong endorsement of Recyclus'
innovative technology, leading expertise and capability in the
field, and further evidence Technology Minerals' commitment towards
providing solutions to ensure national security of supply of
battery metals for the UK.
This agreement strengths the already
established relationship between WMG and Recyclus, having
previously created a four-year Engineering Doctorate focused on
battery recycling technologies. WMG is a leading academic group
providing research, education and knowledge transfer in
engineering, management, manufacturing and technology.
UK
Battery Taskforce
In October 2023, Technology Minerals
was appointed as a founding member of the Department for Business
and Trade (DBT) UK Battery Strategy Taskforce, to work alongside
the government to accelerate the UK's goal of achieving a globally
competitive battery supply chain by 2030 which supports economic
prosperity and the net zero transition. The appointment is a clear
indication of Technology Minerals' status as a pioneer in the
sector with a strong reputation amongst industry stakeholders and
academic institutions.
Exploration Projects for Battery
Metals - Progressing battery metals' assets up the value
chain
Technology Minerals holds a globally
diverse portfolio of exploration projects focused on the critical
minerals required for the global transition to net zero. These
include lithium, cobalt, copper, nickel and manganese, based at
projects in Ireland, Spain, the USA and Cameroon.
Technology Minerals' project
generation and incubation strategy selects early-stage concepts and
projects with the potential to increase in value through prudent
deployment of risk capital to attract larger funding and joint
venture partners to advance their development. This strategy
provides the Company with the ability to add significant value to
the portfolio without incurring the more substantial financial and
dilutionary costs normally associated with public companies
developing exploration assets.
Leinster saw further advances and
encouraging results during the past six months with assay results
from the initial Knockeen shallow trench sampling programme grading
as high as 2.55% Li2O as of
December 2023, with several grab samples
from large pegmatite boulders returning grades as high as
3.00% Li2O. The Leinster Project continues to return consistently
positive results and reaffirms the value potential of the
prospect.
In July 2023, GBML exercised its
Second Option with respect to the Lithium Project, acquiring an
addition 37.5% equity interest, bringing GBML's total equity
interest in the Project to 55%. The Leinster Project is operated
under an exclusive Earn-in and Option agreement with GBML with no
project expenditure required by the Company.
In July 2023 at the TMC Project in
Cameroon, a desktop evaluation report by Dr
Sandy Archibald of Aurum Exploration Ltd, based on new geological
and geophysical data obtained, was submitted to Cameroon Ministry
of Mines, identifying areas for a proposed field-based sampling
programme. The TMC Project consists of five
exploration permits covering an area of 2,456
km2 and are situated in the East Region of southeastern Cameroon.
They are believed to be prospective for cobalt-nickel
laterites.
The Company's exploration assets by
location and resource:
Project
|
Location
|
Resource
|
Asturmet
|
Spain
|
Nickel, Copper, Cobalt
|
Blackbird Creek Property and
Emperium
|
USA
|
Primary Cobalt
|
NW Leinster Lithium
|
Ireland
|
Lithium
|
Technology Minerals
Cameroon
|
Cameroon
|
Nickel Laterite, Cobalt
|
Oacoma
|
USA
|
Manganese, Nickel, Cobalt, Rare Earth
Oxides
|
Financial Review
The Group made a loss for the period
of £1.5 million (H1 2022: £0.7 million loss). In July and September
2023, the Company raised a total of £1.2 million from a long-term
shareholder through the issue of Convertible Loan Notes. In
November 2023, Technology Minerals announced that it has extended
the exercise period of warrants to subscribe for an aggregate of
353,164,631 Ordinary shares exercisable at 3.375p per Ordinary
share and 6,666,666 Ordinary shares exercisable at 2.25p per
Ordinary share, from 17 November 2023 to 31 January 2024. In
January 2024, an offer was made to warrant holders to exercise on
proposed terms. 11.1 million new ordinary shares were issued from
the exercise of such warrants raising £0.1 million. Since the end
of the period, £2.1 million has been raised from drawings under
Convertible Bond facilities.
Risks
The Company was incorporated
recently, in 2021 and lacks a significant operating history, and
therefore, investors have little basis on which to evaluate the
Company's ability to achieve its objective of identifying,
acquiring and operating one or more companies, businesses,
prospects or assets.
In the opinion of the Directors,
based on the Group's financial projections, they have satisfied
themselves that the business is a going concern.
In the period, the Company raised a total of £1.2
million from a long-term shareholder through the issue of
Convertible Loan Notes (before expenses) to finance the working
capital requirements of the Group. Since the period end, the
Company raised £0.1 million from the exercise of warrants and has
drawn a further £2.1 million from other Convertible Bond
facilities, of which £1.5 million was drawn as the first tranche
under a £5.5 million facility drawable according to an agreed
schedule at the Company's option. The Directors
have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future and
therefore the accounts are prepared on a going concern
basis.
The Directors do not consider that
the Company's principal risks and uncertainties have changed since
the publication of its annual report and accounts for the 12-month
period ended 30 June 2023 on 31 October 2023, which contains a
detailed explanation of the risks relevant to the Company and is
available at:
www.technologyminerals.co.uk/investors-section/documents-results-and-reports.
Outlook
Technology Minerals has made
significant progress over the last six months, which has further
solidified its position as a key player in the transition to net
zero as the world continues to electrify in 2024. The Board
is pleased to have seen excellent progress at Recyclus, which has
hit significant milestones including the completion of the
commissioning phase at its cutting-edge Wolverhampton Li-ion
battery recycling plant, in addition to beginning the commissioning
phase at the Tipton lead acid facility.
As such, Recyclus is positioned for
further development and growth in the second half and beyond as it
contributes towards the development of a circular economy for both
Li-ion and traditional lead acid batteries. Recyclus plans to open
multiple Li-ion and lead acid battery recycling facilities over the
coming years.
Recyclus' ongoing R&D
partnerships with academic institutions developing the next
generation in battery recycling technology will further cement it
as a pioneer in the sector. Having been selected by the Government
as a founding member of the UK Battery Strategy taskforce, in a
strong endorsement of its expertise, Technology Minerals is
positioned to help drive the UK's journey towards net
zero.
The Company continues to progress
across its critical battery metal exploration assets, having
implemented strategies to add value to the portfolio in a capital
light manner whilst seeking partnerships to gain further capital,
creating an additional revenue stream for the portfolio and
shareholders.
The Company continued progress of
the proposed acquisition of Recyclus. The latest
iteration of the Prospectus was submitted to FCA recently and a
further draft expected to be submitted next month. Consequently,
the Company expects the prospectus to be circulated for
shareholder approval in Q2 2024. The acquisition will further
enhance Technology Minerals strategy to promote long term
sustainable growth through the expansion of Recyclus' commercial
footprint in the UK, making it a key contributor in the global
transition towards electrification.
Responsibility Statement
The Directors confirm that to the
best of their knowledge:
(a)
the condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting';
(b)
the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year;
and
(c)
the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
Mr
Alexander Stanbury
Chief Executive Officer
28 March 2024
Condensed Consolidated Statement of
Comprehensive Income
for
the six-months ended 31 December 2023
|
Notes
|
6 months to
31 December
2023
Unaudited
|
6 months
to
31
December 2022
Unaudited
|
Period
ended
30
June
2023
Audited
|
Continuing operations
|
|
£000s
|
£000s
|
£000s
|
|
|
|
|
|
Administrative expenses
|
|
(1,129)
|
(786)
|
(3,856)
|
Operating loss
|
|
(1,129)
|
(786)
|
(3,856)
|
Other income
|
|
51
|
52
|
47
|
Net finance charges
|
|
(398)
|
42
|
(111)
|
Loss before taxation
|
|
(1,476)
|
(692)
|
(3,920)
|
Income tax
|
|
-
|
-
|
-
|
Loss
for the period
|
|
(1,476)
|
(692)
|
(3,920)
|
Attributable to:
|
|
|
|
|
Equity holders of the
Company
|
|
(1,476)
|
(689)
|
(3,908)
|
Non-controlling interests
|
|
-
|
(3)
|
(12)
|
|
|
(1,476)
|
(692)
|
(3,920)
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
Items that may be subsequently
reclassified to profit or loss:
|
|
|
|
|
Exchange gains arising on translation
of foreign operations
|
|
(2)
|
7
|
(2)
|
Total comprehensive income for the period
|
|
(1,478)
|
(685)
|
(3,922)
|
Attributable to:
|
|
|
|
|
Equity holders of the
Company
|
|
(1,478)
|
(682)
|
(3,910)
|
Non-controlling interests
|
|
-
|
(3)
|
(12)
|
Total comprehensive income for the period
|
|
(1,478)
|
(685)
|
(3,922)
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
Basic and diluted earnings per share
(pence)
|
6
|
(0.10)p
|
(0.05)p
|
(0.29)p
|
Condensed Consolidated Statement of
Financial Position
As
at 31 December 2023
|
Notes
|
31 December
2023
Unaudited
|
Restated
31
December
2022
Unaudited
|
30
June
2023
Audited
|
|
|
£000s
|
£000s
|
£000s
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
|
6
|
4
|
4
|
Intangible assets
|
7
|
16,004
|
15,729
|
15,789
|
Financial assets
|
|
1,221
|
1,221
|
1,221
|
Investment in associates
|
|
-
|
-
|
-
|
Loans to associates
|
8
|
7,146
|
4,764
|
6,493
|
Total non-current assets
|
|
24,377
|
21,718
|
23,507
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade and other
receivables
|
|
66
|
182
|
81
|
Cash and cash equivalents
|
|
38
|
85
|
318
|
Current assets
|
|
104
|
267
|
399
|
Total assets
|
|
24,481
|
21,985
|
23,906
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
9
|
(809)
|
(762)
|
(438)
|
Borrowings
|
|
(1,004)
|
-
|
-
|
Total current liabilities
|
|
1,812
|
(762)
|
(438)
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Borrowings
|
12
|
(1,705)
|
(435)
|
(1,557)
|
Derivative financial
liability
|
12
|
(324)
|
(65)
|
(230)
|
Total non-current liabilities
|
|
(2,029)
|
(500)
|
(1,787)
|
Total liabilities
|
|
(3,841)
|
(1,262)
|
(2,225)
|
|
|
|
|
|
Net
assets
|
|
20,639
|
20,723
|
21,681
|
|
|
|
|
|
Equity attributable to owners of the parent
|
|
|
|
|
Share Capital
|
10
|
1,513
|
1,304
|
1,513
|
Share Premium
|
10
|
21,860
|
20,125
|
21,860
|
Warrants reserve
|
|
1,884
|
1,457
|
1,499
|
Share-based payment
reserve
|
|
2,269
|
-
|
2,218
|
Foreign exchange reserve
|
|
26
|
36
|
28
|
Accumulated deficit
|
|
(6,927)
|
(2,222)
|
(5,451)
|
Equity attributable to owners of the
parent
|
|
20,625
|
20,700
|
21,667
|
Non-controlling interests
|
|
14
|
23
|
14
|
Total equity
|
|
20,639
|
20,723
|
21,681
|
Condensed Consolidated Statement of
Cash Flows
for
the six-month period ended 31 December 2023
|
6 months to 31 December
2023
Unaudited
|
6 months
to 31 December 2022
Unaudited
|
Period
ended 30 June 2023
Audited
|
|
£000's
|
£000's
|
£000's
|
Cash flows from operating
activities
|
|
|
|
Loss before taxation
|
(1,476)
|
(692)
|
(3,920)
|
Adjustments for:
|
|
|
|
Depreciation
|
-
|
1
|
1
|
Finance income
|
-
|
(44)
|
(196)
|
Gain on derivative financial
liability
|
22
|
-
|
(128)
|
Finance charges
|
372
|
2
|
394
|
Share option charge
|
51
|
-
|
2,218
|
Unrealised foreign exchange
movements
|
(9)
|
2
|
9
|
Net cashflow before changes in
working capital
|
(1,040)
|
(731)
|
(1,622)
|
|
|
|
|
Movement in receivables
|
7
|
(68)
|
(60)
|
Movement in payables
|
372
|
179
|
(166)
|
Net
cash used in operating activities
|
(661)
|
(620)
|
(1,848)
|
Cash flows from investing activities
|
|
|
|
Purchase of property, plant and
equipment
|
(1)
|
-
|
-
|
Exploration expenditure
|
(207)
|
(321)
|
(420)
|
Loans to associates
|
(646)
|
(151)
|
(1,712)
|
Net
cash used in investing activities
|
(854)
|
(472)
|
(2,132)
|
Cash flows from financing activities
|
|
|
|
Issue of share capital
|
-
|
400
|
1,310
|
Cost of issue of shares
|
-
|
(33)
|
(58)
|
Proceeds of borrowing
|
1,235
|
460
|
2,760
|
Repayment of borrowing
|
-
|
(21)
|
-
|
Finance expense
|
-
|
-
|
(85)
|
Net
cash generated from financing activities
|
1,235
|
806
|
3,927
|
Net increase in cash and cash
equivalents during the period
|
(280)
|
(286)
|
(53)
|
Cash at the beginning of period
|
318
|
371
|
371
|
Cash and cash equivalents at the end of the
period
|
38
|
85
|
318
|
Notes to the condensed consolidated interim
financial information
1. GENERAL
INFORMATION
The Company is incorporated and
domiciled in England and the registered number of the Company is
13446965. The registered office is 18 Savile Row, London, W1S
3PW.
2. BASIS OF
PREPARATION
The accounting policies, methods of
computation and presentation used in the preparation of the
condensed consolidated interim financial information are shown
below.
There have been no changes to the
reported figures as a result of any new reporting standards or
interpretations.
Basis of preparation
The condensed interim financial
statements ("Interim Financial Statements") have been prepared in
accordance with the requirements of IAS 34 "Interim Financial
Reporting". The Interim Financial Statements should be read in
conjunction with the audited consolidated financial statements of
the Group for the year ended 30 June 2023, which have been prepared
in accordance with International Financial Reporting Standards
(IFRS) in conformity with the Companies Act 2006 and are available
at www.technologyminerals.co.uk.
The financial information set out in
this interim report is unaudited and does not constitute statutory
accounts as defined in section 434 of the Companies Act
2006.
Comparatives
The comparatives are for the
unaudited 6-month period ended 31 December 2022 and for the audited
year to 30 June 2023. The business is not subject to seasonal
variations. The report of the auditors on the accounts for the year
ended 30 June 2023 was unqualified.
Going Concern
In the period, the Company raised a
total of £1.2 million from a long-term shareholder through the
issue of Convertible Loan Notes (before expenses) to finance the
working capital requirements of the Group. Since the period end,
the Company raised £0.1 million from the exercise of warrants and
has drawn a further £2.1 million from other Convertible Bond
facilities, of which £1.5 million was drawn as the first tranche
under a £5.5 million facility drawable according to an agreed
schedule at the Company's option. In the opinion of the Directors,
based on the Group's financial projections, they have satisfied
themselves that the business is a going concern. The Directors have
a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future and
therefore the accounts are prepared on a going concern
basis.
3. SIGNIFICANT
ACCOUNTING POLICIES
The Interim Financial Statements have
been prepared in accordance with the accounting policies adopted in
the Group's most recent annual financial statements for the year
ended 30 June 2023.
4. CRITICAL ACCOUNTING
ESTIMATES AND JUDGEMENTS
The preparation of the Interim
Financial Statements require management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities at the end of the reporting period. Estimates and
judgements are continually evaluated based on historical experience
and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future,
actual experience may differ from these estimates and
assumptions.
The judgements, estimates and
assumptions applied in the Interim Financial Statements, including
the key sources of estimation uncertainty, were the same as those
applied in the Group's last annual financial statements for the
year ended 30 June 2023.
5. BUSINESS AND
GEOGRAPHICAL REPORTING
The Group's chief operating decision
maker is considered to be the executive directors (the 'Executive
Board'). The Executive Board evaluates the financial
performance of the Group by reference to its reportable segments:
mineral exploration and holding company expenses. The activities of
Recyclus Group in battery recycling are not a reportable business
segment because the Company's interest in the share capital of
Recyclus Group is currently less than 50%.
Below is a summary of the Group's
results, assets and liabilities by reportable segment as presented
to the Executive Board.
|
Mineral
exploration
|
Holding
Company
|
Total
|
|
£000's
|
£000s
|
£000's
|
6
months to 31 December 2023 - Unaudited
|
|
|
|
Operating expenses
|
(245)
|
(1,231)
|
(1,476)
|
Total segment operating loss
|
(245)
|
(1,231)
|
(1,476)
|
|
|
|
|
6 months to 31 December 2022 -
Unaudited
|
|
|
|
Operating expenses
|
(129)
|
(563)
|
(692)
|
Total segment operating
loss
|
(129)
|
(563)
|
(692)
|
|
|
|
|
Year ended 30 June 2023 -
Audited
|
|
|
|
Operating expenses
|
(281)
|
(3,639)
|
(3,920)
|
Total segment operating
loss
|
(281)
|
(3,639)
|
(3,920)
|
|
|
|
|
Total segment assets
|
|
|
|
At
31 December 2023 - Unaudited
|
15,562
|
8,919
|
24,481
|
At 31 December 2022 - restated -
Unaudited
|
15,729
|
6,256
|
21,985
|
At 30 June 2023 - Audited
|
15,359
|
8,547
|
23,906
|
|
|
|
|
Total segment liabilities
|
|
|
|
At
31 December 2023 - Unaudited
|
(33)
|
(3,809)
|
(3,842)
|
At 31 December 2022 - restated -
Unaudited
|
(151)
|
(1,111)
|
(1,262)
|
At 30 June 2023 - Audited
|
(37)
|
(2,188)
|
(2,225)
|
6. LOSS PER
SHARE
Basic earnings per share ("EPS") is
calculated by dividing the loss attributable to equity holders of
the Company by the weighted average number of ordinary shares in
issue during the period. Warrants issued by the Company that could
potentially dilute basic EPS in the future have not been included
the calculation of diluted EPS because they are antidilutive for
the period(s) presented. See note 11 for further information on the
warrants.
|
Unaudited
6 months to
31 December
2023
|
Unaudited
6 months
to
31
December
2022
|
Audited
Period
ended
30
June
2023
|
£000's
|
£000's
|
£000's
|
Loss from continuing operations
attributable to equity holders of the company
|
(1,476)
|
(692)
|
(3,920)
|
Weighted average number of ordinary
shares in issue
|
1,513,709,895
|
1,280,777,941
|
1,344,710,781
|
|
|
|
|
Basic and fully diluted loss per
share from continuing operations in pence
|
(0.1)
|
(0.05)
|
(0.29)
|
7. INTANGIBLE
ASSETS
UNAUDITED
Cost
|
Mineral
exploration
£000s
|
Total
£000s
|
At 1 July 2023
|
15,789
|
15,789
|
Exploration expenditure
|
215
|
215
|
At
31 December 2023
|
16,004
|
16,004
|
Accumulated amortisation
|
|
|
At 1 July 2023
|
-
|
-
|
Amortisation
|
-
|
-
|
At 31 December 2023
|
-
|
-
|
Net
book value at 31 December 2023
|
16,004
|
16,004
|
Unaudited
Cost
|
Mineral
exploration
£000s
|
Total
£000s
|
At 1 July 2022 (restated)
|
15,409
|
15,409
|
Additions
|
320
|
320
|
At
31 December 2022
|
15,729
|
15,729
|
Accumulated amortisation
|
|
|
At 1 July 2022
|
-
|
-
|
Amortisation
|
-
|
-
|
At 31 December 2022
|
-
|
-
|
Net
book value at 31 December 2022
|
15,729
|
15,729
|
AUDITED
Cost
|
Mineral
exploration
£000
|
Total
£000
|
At 1 July 2022 (restated)
|
15,409
|
15,409
|
Additions
|
420
|
420
|
FX
|
40
|
40
|
Disposals
|
-
|
-
|
At
30 June 2023
|
15,789
|
15,789
|
Accumulated amortisation
|
|
|
At 1 July 2022
|
-
|
-
|
Amortisation
|
-
|
-
|
At 30 June 2023
|
-
|
-
|
Net
book value 30 June 2023
|
15,789
|
15,789
|
8. LOANS TO
ASSOCIATES
During the period the Company
provided a loan to Recyclus as follows:
|
|
|
£000s
|
At 30 June 2022 - Audited
|
|
|
4,538
|
Additions
|
|
|
226
|
At 31 December 2022 -
Unaudited
|
|
|
4,764
|
Additions
|
|
|
1,729
|
At 30 June 2023 - Audited
|
|
|
6,493
|
Additions
|
|
|
653
|
At
31 December 2023 - Unaudited
|
|
|
7,146
|
Loans to associates generally bear
2% interest. The loan is repayable in monthly instalments from July
2022.
9. TRADE AND OTHER
PAYABLES
|
Unaudited
31 December
2023
£000s
|
Unaudited
31
December 2022
£000s
|
Audited
30
June
2023
£000s
|
Trade and other payables
|
639
|
611
|
230
|
Taxation and social
security
|
135
|
133
|
106
|
Accruals
|
35
|
18
|
102
|
|
809
|
762
|
438
|
10. SHARE CAPITAL AND SHARE
PREMIUM
Group and Company
|
Number of ordinary shares of
1p
|
Share
capital
£000s
|
Share
premium
£000s
|
At 30 June 2022
|
1,271,423,593
|
1,271
|
19,770
|
Share issue - placings
|
32,000,000
|
32
|
368
|
Share issue - in lieu of services
provided
|
1,100,000
|
1
|
20
|
Share issue - costs
|
-
|
-
|
(33)
|
At 31 December 2022
|
1,304,523,593
|
1,304
|
20,125
|
Share issue - placings
|
91,000,000
|
91
|
819
|
Share issue - conversion of
CLNs
|
118,186,302
|
118
|
942
|
Share issue - costs
|
-
|
-
|
(26)
|
At 30 June 2023
|
1,513,709,895
|
1,513
|
21,860
|
At
31 December 2023
|
1,513,709,895
|
1,513
|
21,860
|
There were no share issuances during
the 6-month period ended 31 December 2023.
11. WARRANTS
£0.735m of convertible bonds issued
during the period had 73,500,000 share warrants attached giving the
holders the right to acquire shares in the Company at an exercise
price of 2 pence per share. The share warrants are exercisable from
28 February 2024 and expire on 31 August 2025. See note 12 for
details on the convertible bonds.
The fair value of the warrants
issued during the period was calculated using the Black-Scholes
mode using the following information:
|
|
|
|
Number of shares that could be acquired on the
exercise of the warrant
|
|
|
73,500,000
|
Fair value of one CLN Warrant
|
|
|
£0.0052
|
Warrant Share exercise price
|
|
|
£0.02
|
Date of grant
|
|
|
31 August 2023
|
Time to maturity, years
|
|
|
2
|
Share price
|
|
|
£0.0145
|
Expected volatility*,%
|
|
|
79%
|
Expected dividend growth rate,%
|
|
|
0%
|
Risk-free interest rate (3 month
bond),%
|
|
|
5.15%
|
*Calculation of volatility involves
significant judgement by the Directors due to the absence of the
historical trading data for the Company at the date of the
grant.
The fair value of the share warrants
is £385k and has been treated as a finance cost amortised over
convertible bond term.
The total number of warrants outstanding at 31 December 2023 was
446,919,087 (31 December 2022: 363,625,840; 30 June 2023:
373,419,087)
12. CONVERTIBLE LOAN
NOTES
During the period the following
convertible bonds were issued:
Date
|
Amount
borrowed
£000s
|
Annual
Interest rate
%
|
Debt at
amortised cost
£000s
|
Derivative
financial liability
£000s
|
Fair value
of warrants at amortised cost
£000s
|
4 July 2023
|
500
|
12%
|
482
|
18
|
-
|
31 August 2023
|
735
|
12%
|
301
|
49
|
385
|
Total
|
1,235
|
|
783
|
67
|
385
|
4
July 2023 - £500,000 convertible bonds
The company raised £500,000 from the
issue of convertible bonds with a 12% annual interest rate and a
repayment date of 4 January 2024. Conversion of the bonds into
shares in the Company can occur from 6 months from the issue date
at a price of 1.8 pence per share. On 4 January 2024 it was agreed
with the bondholder to extend the redemption date to 4 July 2024.
As part of the extension the interest rate was increased to 15% per
annum.
31
August 2023 - £735,000 convertible bonds
The company raised £735,000 from the
issue of convertible bonds with a 12% annual interest rate and a
repayment date of 31 August 2024. Conversion of the bonds into
shares in the Company can occur from 6 months from the issue date
at a price of 1.4 pence per share.
As at 31 December 2023 the total
principle amount repayable on borrowings was £2.935m (31 December
2022: £0.5m; 30 June 2023: £1.7m)
13. EVENTS OCCURRING AFTER
THE REPORTING DATE
On 3 January 2024, the Company
entered into a Convertible Bond facility with CLG Capital LLC for
£5 million, drawable in agreed tranches. At the date of this report
a gross amount of £600,000 had been drawn and warrants over an
aggregate of 18,126,495 Ordinary shares have been issued, of which
8,115,162 are exercisable until at a price of £0.01848 per share
and 10,011,333 are exercisable at £0.01498 per share until 5 and 18
January 2027, respectively. The number of warrants issued were
based on the first two tranches of a total of £1 million and will
be adjusted accordingly to reflect the amounts drawn.
On 4 January 2024, the redemption
date of the £500,000 convertible bonds was extended to 4 July 2024.
See note 12 for further details.
In January 2024, an offer was made
to warrant holders to exercise warrants on revised terms.
11,062,783 new ordinary shares were issued from the exercise of
such warrants, raising £0.1 million.
On 20 March 2024, the Company
entered into a Convertible Bond Facility with Atlas Capital Markets
in the total amount of £5.5 million, drawable in agreed tranches.
At the date of this report, £1.5 million had been drawn.