Business
Half-year Report
Half-year Report.
About this update from Anglesey Mining Plc
Anglesey Mining plc Half yearly report for the six months to 30 September 2024 Chairman’s Statement and Management Report During the half year period, we continued to progress our primary asset at the Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in Anglesey, North Wales. We reported the assay results from the third and final hole in the Northern Copper Zone (NCZ) drilling program. NCZ003 intersected both broad zones of mineralisation and multiple higher-grade zones. All three holes in the program - NCZ001 NCZ002 and NCZ003 - delivered some exceptional high-grade copper intersections within broad thicknesses of mineralisation up to 100m wide. The results continue to support our view that the NCZ provides significant upside for the Parys Mountain project, over and above the 5 million tonne resource contribution included within the 2021 Preliminary Economic Assessment. An important project milestone was reached with the formal submission on 31 July 2024 of the Parys Mountain Mine Environmental Impact Assessment (EIA) Scoping Report to the North Wales Minerals and Waste Planning Service as part of a formal EIA Scoping Opinion request. The Planning Service assesses mineral planning applications on behalf of the Isle of Anglesey County Council and other County Councils within the North Wales Region. The Scoping Report forms part of the first stage in the EIA process and comes after almost two years of extensive studies and work by the Anglesey team on site. Cumulative expenditure on the EIA process in that timeframe is almost £300,000. The scoping report sets out the project’s perceived impacts, specifically identifying any crucial and significant impacts which will be assessed as part of the final EIA report, the compilation of which will require further environmental and ecological work. It should be noted that mining at Parys will be carried out by underground methods; there are no plans for an open pit or opencast mine extraction works. Post period end, in October 2024, responses were received to the Scoping Report from each of the statutory and specialist consultees and subsequently in December a draft Scoping Opinion has become available. It was pleasing to note that the responses were broadly in line with our expectations. Formal feedback from the Planning Service is keenly awaited. We were pleased to note that zinc has now been added to the UK Critical Minerals List, Anglesey considers the classification of zinc as a critical mineral to be a significant positive step for the importance of its Parys Mountain resource which includes over 200,000 tonnes of contained zinc. On governance matters, we were delighted to appoint Rob Marsden as our new CEO and to the board of Anglesey Mining in May 2024 and we welcome the technical, financial and practical experience he brings to our activities as we seek to progress Parys and optimise the iron ore investments. We were also pleased to announce the appointment of Doug Hall as a non-executive director in December 2024 and we look forward to his contributions going forward. In other board changes we were sorry to accept the resignations of Namrata Verma and Jo Battershill in September and December, respectively, but wish them both well in their future endeavours. Financial The group had no revenue for the period. The loss for the six months to 30 September 2024 was £311,052 (2023 comparative period £604,787) and expenditure on the mineral properties in the period was £125,479 compared to £174,748 in the same period in 2023. This reduction was primarily due to the reduction in Parys Mountain drilling activity. We also completed two equity placings in the period, raising approximately £635,000, with the proceeds going to support ongoing developmental work and for general working capital purposes. Net current assets as at 30 September 2024 were £63,149 compared to net current liabilities of £135,745 at 31 March 2024. Outlook Management continues to seek to advance the company’s two key assets. At Parys Mountain the main activity will be progressing the Planning Application, guided by the EIA Scoping Opinion when formally received. At Grängesberg, we will continue to explore options to advance the project as well as devising proposals to optimise the ownership structure and value of Grängesberg Iron AB. As always, the company’s activities are predicated upon raising funding which, notwithstanding the equity issuances completed during the reporting period, remains extremely challenging in the current market. In this context, we continue to actively explore initiatives with a view to supporting the cash position. In closing, on behalf of the board of directors, I would like to thank our shareholders for their ongoing support, and to confirm that I remain confident that the assets held by Anglesey Mining will deliver significant value as they continue to be progressed over the next year. Andrew King Chairman 18 December 2024 Unaudited condensed consolidated income statement Notes Unaudited six months ended 30 September 2024 Unaudited six months ended 30 September 2023 All operations are continuing £ £ Revenue - - Expenses (213,575) (476,872) Equity-settled employee benefits (4,230) (24,572) Investment income 2,169 800 Finance costs (95,384) (104,296) Foreign exchange movement (32) 153 Loss before tax (311,052) (604,787) Taxation 8 - - Loss for the period 7 (311,052) (604,787) Loss per share Basic - pence per share (0.1)p (0.2)p Diluted - pence per share (0.1)p (0.2)p Unaudited condensed consolidated statement of comprehensive income Loss for the period (311,052) (604,787) Other comprehensive income Items that may subsequently be reclassified to profit or loss: Change in fair value of investment 388,683 (155,557) Foreign currency translation reserve 17,654 8,021 Total comprehensive profit/(loss) for the period 95,285 (752,323) All attributable to equity holders of the company Unaudited condensed consolidated statement of financial position Notes Unaudited 30 September 2024 31 March 2024 £ £ Assets Non-current assets Mineral property exploration and evaluation 9 16,976,775 16,851,296 Property, plant and equipment 204,687 204,687 Investments 10 1,793,417 1,404,734 Deposit 128,918 126,752 19,103,797 18,587,469 Current assets Other receivables 40,871 50,256 Cash and cash equivalents 283,295 219,685 324,166 269,941 Total assets 19,427,963 18,857,410 Liabilities Current liabilities Trade and other payables (261,017) (405,686) (261,017) (405,686) Net current assets/(liabilities) 63,149 (135,745) Non-current liabilities Loans (3,961,930) (3,913,973) Long term provision (50,000) (50,000) (4,011,930) (3,963,973) Total liabilities (4,272,947) (4,369,659) Net assets 15,155,016 14,487,751 Equity Share capital 11 10,346,764 9,711,764 Share premium 12,895,853 12,963,103 Currency translation reserve (71,935) (89,589) Retained losses (8,015,666) (8,097,527) Total shareholders' funds 15,155,016 14,487,751 All attributable to equity holders of the company Unaudited condensed consolidated statement of cash flows Notes Unaudited six months ended 30 September 2024 Unaudited six months ended 30 September 2023 £ £ Operating activities Loss for the period (311,052) (604,787) Adjustments for: Investment income (2,169) (800) Finance costs 95,384 104,296 Share based payments charge 4,230 24,572 Shares issued in lieu of salary - 50,000 Foreign exchange movement 32 (153) (213,575) (426,872) Movements in working capital Decrease/(increase) in receivables 9,385 (3,719) Increase in payables 4,041 58,774 Net cash used in operating activities (200,149) (371,817) Investing activities Investment income 3 800 Mineral property exploration and evaluation (274,755) (165,062) Investment - - Net cash used in investing activities (274,752) (164,262) Financing activities Issue of share capital 567,750 1,380,000 Loan repayment (29,207) (150,000) Net cash generated from financing activities 538,543 1,230,000 Net increase in cash and cash equivalents 63,642 693,921 Cash and cash equivalents at start of period 219,685 247,134 Foreign exchange movement (32) 153 Cash and cash equivalents at end of period 283,295 941,208 All attributable to equity holders of the company Unaudited condensed consolidated statement of changes in group equity Share capital £ Share premium £ Currency translation reserve £ Retained losses £ Total £ Equity at 1 April 2024 - audited 9,711,764 12,963,103 (89,589) (8,097,527) 14,487,751 Total comprehensive loss for the period: Loss for the period - - - (311,052) (311,052) Change in fair value of investment - - - 388,683 388,683 Exchange difference on translation of foreign holding - - 17,654 - 17,654 Exchange difference on translation of foreign holdings - - - - Total comprehensive loss for the period - - 17,654 77,631 95,285 Shares issued 635,000 - - - 635,000 Share issue expenses - (67,250) - - (67,250) Equity-settled employee benefits - - - 4,230 4,230 Equity at 30 September 2024 - unaudited 10,346,764 12,895,853 (71,935) (8,015,666) 15,155,016 Comparative period Equity at 1 April 2023 - audited 8,463,039 12,443,741 (72,138) (6,458,303) 14,376,339 Total comprehensive loss for the period: Loss for the period - - - (604,787) (604,787) Change in fair value of investment - - - (155,557) (155,557) Exchange difference on translation of foreign holding - - 8,021 - 8,021 Total comprehensive loss for the period - - 8,021 (760,344) (752,323) Shares issued 1,248,725 624,362 - - 1,873,087 Share issue expenses - (120,000) - - (120,000) Equity at 30 September 2023 - unaudited 9,711,764 12,948,103 (64,117) (7,218,647) 15,377,103 All attributable to equity holders of the company Notes to the accounts 1. Basis of preparation This half-yearly financial report comprises the unaudited condensed consolidated financial statements of the group for the six months ended 30 September 2024. It has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, the requirements of IAS 34 - Interim financial reporting (as adopted by the UK) and using the going concern basis. The directors are not aware of any events or circumstances which would make this inappropriate. It does not constitute financial statements within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for annual financial statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 March 2024 which is available on request from the company or may be viewed at www.angleseymining.co.uk/accounts. The financial information contained in this report in respect of the year ended 31 March 2024 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified. The half-yearly results for the current and comparative periods have not been audited or reviewed by the company’s auditor. 2. Significant accounting policies The accounting policies applied in these unaudited condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended 31 March 2024. There are no new standards, amendments to standards or interpretations that are expected to have a material impact on the group's results. The group has not applied certain new standards, amendments and interpretations to existing standards that have been issued but are not yet effective. They are either not expected to have a material effect on the consolidated financial statements or they are not currently relevant for the group. 3. Risks and uncertainties The principal risks and uncertainties set out in the group's annual report and financial statements for the year ended 31 March 2024 remain the same for this half-yearly period. They can be summarised as: development risks in respect of mineral properties, especially in respect of permitting and metal prices; liquidity risks during development; and foreign exchange risks. More information is to be found in the 2024 annual report – see note 1 above. 4. Statement of directors' responsibilities The directors confirm to the best of their knowledge that: (a) the unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of IAS 34 Interim financial reporting (as adopted by the UK); and (b) the interim management report includes a fair review of the information required by the FCA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R). This report and financial statements were approved by the board on 19 December 2024 and authorised for issue on behalf of the board by Andrew King, interim chairman and Rob Marsden, chief executive officer. 5. Activities The group is engaged in mineral property development and currently has no turnover. There are no minority interests or exceptional items. 6. Earnings per share The loss per share is computed by dividing the loss attributable to ordinary shareholders of £0.3 million by 442 million - the weighted average number of ordinary shares in issue during the period. The comparative figures were a loss to 30 September 2023 of £0.6m divided by 406 million shares. However where there are losses the effect of outstanding share options is not dilutive. 7. Business and geographical segments There are no trading revenues. The cost of all activities charged in the income statement relates to exploration and evaluation of mining properties. The group's income statement and assets and liabilities are analysed as follows by geographical segments, which is the basis on which information is reported to the board. Income statement analysis Unaudited six months ended 30 September 2024 UK Sweden - investment Canada - investment Total £ £ £ £ Expenses (187,450) (26,125) - (213,575) Equity settled employee benefits (4,230) - - (4,230) Share based payments - - Investment income 2,169 - - 2,169 Finance costs (88,642) (6,742) - (95,384) Exchange rate movements - (32) - (32) Loss for the period (278,153) (32,899) - (311,052) Unaudited six months ended 30 September 2023 UK Sweden - investment Canada - investment Total £ £ £ £ Expenses (476,872) - - (476,872) Equity settled employee benefits (24,572) - - (24,572) Investment income 800 - - 800 Finance costs (99,231) (5,065) - (104,296) Exchange rate movements - 153 - 153 Loss for the period (599,875) (4,912) - (604,787) Assets and liabilities ` Unaudited 30 September 2024 UK Sweden investment Canada investment Total £ £ £ £ Non current assets 17,310,380 633,170 1,160,247 19,103,797 Current assets 323,035 1,131 - 324,166 Liabilities (3,922,929) (350,018) - (4,272,947) Net assets 13,710,486 284,283 1,160,247 15,155,016 Audited 31 March 2024 UK Sweden investment Canada investment Total £ £ £ £ Non current assets 17,182,735 633,170 771,564 18,587,469 Current assets 268,778 1,163 - 269,941 Liabilities (4,005,989) (363,670) - (4,369,659) Net assets 13,445,524 270,663 771,564 14,487,751 8. Deferred tax There is an unrecognised deferred tax asset of £1.6 million (31 March 2024 - £1.6m) which, in view of the group's results, is not considered to be recoverable in the short term. There are also capital allowances, including mineral extraction allowances, of £14.4 million (unchanged from 31 March 2024) unclaimed and available. No deferred tax asset is recognised in the condensed financial statements. 9. Mineral property exploration and evaluation costs Mineral property exploration and evaluation costs incurred by the group are carried in the unaudited condensed consolidated financial statements at cost, less an impairment provision if appropriate. The recovery of these costs is dependent upon the successful development and operation of the Parys Mountain project which is itself conditional on finance being available to fund such development. During the period activities were limited and in particular no drilling was taking place so the expenditure of £125,479 was significantly less than in the six months to 30 September 2023 when expenditures totalled £679,475. There have been no indicators of impairment during the period. 10. Investments Labrador Grangesberg Total £ £ £ At 1 April 2023 1,400,015 633,170 2,033,185 Net change during the period (628,451) - (628,451) At 31 March 2023 771,564 633,170 1,404,734 Net change during the period 388,683 - 388,683 At Unaudited 30 September 2024 1,160,247 633,170 1,793,417 Labrador – Canada The group has an investment in Labrador Iron Mines Holdings Limited, (LIM) a Canadian company which is carried at fair value through other comprehensive income. The group’s holding of 19,289,100 shares in LIM (12% of LIM’s total issued shares) is valued at the closing price traded on the OTC Markets in the United States. In the directors’ assessment this market is sufficiently active to give the best measure of fair value, which on 30 September 2024 was 8 US cents per share (2023 – 10 US cents). As at 29 November 2024 the share price was 6 US cents per share. Grängesberg - Sweden The group has, through its Swedish subsidiary Angmag AB, a 49.75% ownership interest in Grängesberg Iron AB an unquoted Swedish company (GIAB) which holds rights over the Grängesberg iron ore deposits. Under a shareholders’ agreement, Angmag has a reciprocal right of first refusal over the remaining 50.25% of the equity of GIAB, together with management direction of the activities of GIAB subject to certain restrictions. The shareholders' agreement has an initial term of 10 years from 28 May 2014, extendable on a year-to-year basis, unless terminated on one year's notice. The directors assessed the fair value of the investment in Grängesberg under IFRS 9 and consider the investment’s value at 30 September 2024 to be £633,170. 11. Share capital Ordinary shares of 1p Deferred shares of 4p Total Issued and fully paid Nominal value £ Number Nominal value £ Number Nominal value £ At 1 April 2023 2,952,206 295,220,548 5,510,833 137,770,835 8,463,039 Issued in the period 1,248,725 124,872,469 - - 1,248,725 At 31 March 2024 4,200,931 420,093,017 5,510,833 137,770,835 9,711,764 Issued in the period 635,000 63,500,000 - - 635,000 At Unaudited 30 September 2024 4,835,931 483,593,017 5,510,833 137,770,835 10,346,764 The deferred shares are non-voting, have no entitlement to dividends and have negligible rights to return of capital on a winding up. On 28 June 2024 a placing of 415,000,000 new ordinary shares was made at 1.0 pence per share to several institutions, including two of the directors and Energold Minerals Inc. a company controlled by John Kearney the former chairman of the company, to raise a total of £415,000. On 25 September 2024 a placing of 220,000,000 new ordinary shares was made at 1.0 pence per share to several institutions, to raise a total of £220,000. 12. Financial instruments Group Financial assets classified at fair value through other comprehensive income Financial assets measured at amortised cost Unaudited 30 September 2024 31 March 2024 Unaudited 30 September 2024 31 March 2024 £ £ £ £ Financial assets Investments 1,793,417 1,404,734 - - Deposit - - 128,918 126,752 Other receivables - - 40,871 50,256 Cash and cash equivalents - - 283,295 219,685 1,793,417 1,404,734 453,084 396,693 Financial liabilities measured at amortised cost Unaudited 30 September 2024 31 March 2024 £ £ Trade payables (111,723) (293,040) Other payables (149,294) (112,646) Loans (3,961,930) (3,913,973) (4,222,947) (4,319,659) 13. Events since the period end On 11 November 2024 a placing of 1,229,238 new ordinary shares was made at 1.0 pence per share to two suppliers of services to the company to discharge liabilities of £12,292. On 5 December 2024 we were pleased to announce the appointment of Mr. Robert Douglas Hall as a non-executive director of the company with immediate effect and also announced Jo Battershill’s decision to step down as a non-executive director. Anglesey Mining plc Directors Andrew King Chairman Rob Marsden Chief executive Douglas Hall Non executive Registered office address - Parys Mountain, Amlwch, Anglesey, LL68 9RE Phone 01407 831275 Email [email protected] Registrars Link Group, 29 Wellington Street, Leeds, LS1 4DL Share dealing phone 0371 664 0445 Helpline phone 0371 664 0300 Company registered number 01849957 Web site www.angleseymining.co.uk Shares listed AIM - AYM CONTACT: For further information, please contact: Anglesey Mining plc Rob Marsden, Chief Executive – Tel: +44 (0)7531 475111 Davy Nominated Adviser & Joint Corporate Broker Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363 Zeus Joint Corporate Broker Katy Mitchell / Harry Ansell – Tel: +44 (0) 207 220 1666 LEI: 213800X8BO8EK2B4HQ71 IR24
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