18 September 2024
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Unaudited Interim Results for the six months to 30 June 2024
Oracle Power PLC (AIM: ORCP), the international natural resources project developer, announces its unaudited interim results for the six months ended 30 June 2024, which will also be made available on its website at: www.oraclepower.co.uk.
HIGHLIGHTS
- Significant progress made on all projects
- Acquired 100% of the Blue Rock Valley Copper and Silver Project
- Improved operating and development efficiencies resulting in cost reduction
- Additional equity capital raised despite prevailing market challenges
CHIEF EXECUTIVE OFFICER'S STATEMENT
In the first half of 2024, Oracle made significant progress across its multi-project portfolio, which includes the Northern Zone Gold Project in Western Australia ("WA"), the Blue Rock Valley Copper
and Silver Project, and a highly prospective Green Hydrogen and Renewable Power Project in southern
Pakistan along with its associated renewable power projects.
The Northern Zone Project in WA is being actively explored through a farm-in agreement with Riversgold Ltd (ASX: RGL), while the Green Hydrogen and Renewable Power Project is being developed through a joint venture with Kaheel Energy FZE, wholly owned by His Highness Sheikh Ahmed Bin Dalmook Al Maktoum.
Review of operations
Pakistan
Green Hydrogen and Renewable Power Project
During the first half of 2024, Oracle's flagship Green Hydrogen and Renewable Power Project in Pakistan saw substantial advancements. In Q1 2024, the Company completed a comprehensive technical and commercial feasibility study for the proposed 1.3 GW hybrid renewable power facility. This facility, integral to the green hydrogen production, is designed to include 800 MW of solar, 500 MW of wind, and 450 MWh of battery storage.
Concurrently, Oracle commenced a geotechnical study on the 28.3 sq. km project site, which was
completed in Q2 2024. This study included an electrical resistivity survey for the renewable power
production facility aimed at optimising site planning and infrastructure design. The findings from the
study provided valuable insights for water management and strongly endorsed the planned construction of the hybrid power plants.
In Q2 2024, Oracle completed the Environmental and Social Impact Assessment (ESIA) for the 1.3 GW renewable power plant, which was subsequently submitted to the Sindh Environmental Protection Agency (SEPA) for review. Following this, the Company received a "No Objection Certificate" (NOC) from SEPA, giving permission for the construction of the proposed 1.3 GW renewable energy power plant. This is a critical step in advancing the project, as it involved assessing its environmental impacts based on the Initial Environmental Examination (IEE) report, which was prepared in compliance with
the guidelines set forth in the Sindh Environmental Protection Act of 2014.
Additionally, the Directorate of Alternative Energy of the Government of Sindh extended the validity period of our Letter of Intent for the development of the 1.3 GW renewable energy power plant in Jhimpir, Sindh, to 23 January 2025.
Post-period end, we received the preliminary report for the Grid Interconnection Study, funded and completed by State Grid China. This report is currently under review by the National Transmission and Dispatch Company (NTDC) and Power Planners International (PPI), with discussions underway to refine and enhance the grid connection scheme. The final report is expected soon.
Corporate developments in Q2 2024 further solidified Oracle's strategic partnerships, with advanced discussions initiated with Pakistan Petroleum Limited (PPL) and other state-owned companies regarding potential equity investments and joint development opportunities in the Project. These discussions reflect the increasing strategic importance of green hydrogen in the region.
Thar Block VI
In the first half of 2024, the strategic value of our Thar Block VI project grew significantly due to Pakistan's focus on utilising local coal to address energy challenges. The government has prioritised replacing imported coal with Thar's indigenous supply, recognising it as vital for resolving the energy
crisis and reducing reliance on expensive imports. This shift in policy supports our ongoing discussions
with potential investors to advance the 1.32 GW coal-to-power plant under the Offtake MOU with the Government of Sindh, K-Electric, and PowerChina International.
In June 2024, a high-level meeting led by the Prime Minister emphasised developing a comprehensive strategy for coal gasification projects in Thar, reinforcing the importance of local coal in the national energy mix. The ongoing interest in coal-to-gas (CTG) and coal-to-liquid (CTL) technologies further underscores Thar Block VI's potential within Pakistan's energy strategy.
Australia
Northern Zone Gold Project
Oracle's Northern Zone Gold Project in WA continued to show promise throughout the first half of 2024. In Q1 2024, our farm-in partner, Riversgold Ltd (ASX: RGL), confirmed that it had invested A$333,000 in exploratory activities. This led to the approval of a Programme of Work by Australia's Department of Energy, Mines, Industry Regulation and Safety, with drilling commencing in May 2024.
As drilling progressed into Q2 2024, both reverse circulation (RC) and air core (AC) drilling programmes were conducted with two contracted rigs. The goal was to test for supergene gold and conduct step- out drilling to support the estimation of a maiden JORC compliant gold resource.
The completed drilling programme comprised:
- RC drilling with six holes totalling 1,363 meters and 1,100 samples collected.
- AC drilling with 27 holes totalling 1,772 meters and 662 samples collected.
The AC drilling programme successfully expanded the mineralised porphyry, doubling the prospective gold system's footprint. The exploration target for the project is estimated at 2.5Moz to 4.8Moz of gold.
RC drilling confirmed high-grade gold intercepts, indicating significant mineralisation at various
depths. Drilling resumed post-period end in late July 2024 targeting the shallower portion of the
mineralised system and an identified fault believed to be a controlling feature of mineralisation. The planned 1,500 meters of drilling was completed post-period, further enhancing the project's potential.
Blue Rock Valley Copper and Silver Project
In Q2 2024, Oracle completed the acquisition of a 100% interest in the Blue Rock Valley Copper and Silver Project, also located in Western Australia. Initial on-site assessments by our consultant geologists have confirmed high-grade copper and silver mineralisation as well as the potential for uranium.
Consultant geologists conducted on-site assessments to explore the potential for copper, lead, zinc,
and silver deposits. High-grade copper samples, with grades ranging from 8.56% to 25.70%, were recovered during a recent site visit, underscoring the project's potential.
Looking ahead, Oracle plans to refine its exploration techniques, including ground gravity and EM surveys, with drilling expected to commence when conditions are viable. The Company is also considering additional targeting tools to further refine and develop exploration targets, setting the stage for future discoveries.
Board changes
In July 2024, we were pleased to welcome a new non-executive director - Emma Priestley - to the board. Emma brings over 20 years of experience in the mining and financial services sectors and will be a valuable addition to the Board.
In August 2024, Mark Steed, our former Non-Executive Chairman, stepped down from the Board. We wish to thank Mark for his valuable service to the Company over a number of years and wish him all the best for the future.
David Hutchins, currently serving as a Non-Executive Director, will assume the role of Non-Executive
Chairman with immediate effect.
Financial
As is to be expected for a project development company with four pre-revenue projects at development stages, the Company's financial results for the six months to 30 June 2024 show the Group made a loss after taxation of £264,942 (6 months ended 30 June 2023: £613,773). However, the loss for this period has been significantly reduced compared to the previous period.
As at 30 June 2024, the Group had cash and cash equivalents of £528,464 (30 June 2023: £326,946)
and net assets of £6,649,885 (30 June 2022: £6,117,113).
Currently, the Company does not generate any revenue and is therefore dependent on raising new funds to finance the development of its various projects. Despite the challenging market conditions at present, in May 2024, the Company raised £300,000 before expenses, demonstrating its ongoing ability to secure funding and the confidence investors have in the Company's future.
Outlook
During this period, we made significant strides in developing our project portfolio and expanded our footprint in Western Australia, where we have had success in forming partnerships to assist in ongoing developments. Additionally, we enhanced our Green Hydrogen and Renewable Power Project by
carving out standalone, lucrative renewable power projects, making substantial progress in this area.
We remain committed to finding profitable and timely exit opportunities for our projects, while
continuing to de-risk and add value along their development pathways.
Naheed Memon
Chief Executive Officer - Oracle Power PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) | (Unaudited) | (Audited) | ||
6 Months to | 6 Months to | Year ended | ||
30 June 2024 | 30 June 2023 | 31 Dec 2023 | ||
CONTINUING OPERATIONS | £ | £ | £ | |
Revenue | - | - | - | |
Administrative expenses | (278,700) | (621,197) | (848,058) | |
OPERATING LOSS | (278,700) | (621,197) | (848,058) | |
Other income | - | - | 26,697 | |
Finance costs | - | - | - | |
Finance income | 11,901 | 7,424 | 36,688 | |
Amounts written off and p/l on disposals | 1,857 | - | (5,122) | |
LOSS BEFORE INCOME TAX | (264,942) | (613,773) | (789,795) | |
Income tax | - | - | - | |
LOSS FOR THE PERIOD | (264,942) | (613,773) | (789,795) | |
Earnings per share expressed in pence per share: | ||||
Basic | (0.01) | (0.02) | (0.02) | |
Diluted | (0.01) | (0.02) | (0.02) | |
STATEMENT OF COMPREHENSIVE INCOME | ||||
FOR THE SIX MONTHS TO 30 JUNE 2024 | ||||
(Unaudited) | (Unaudited) | (Audited) | ||
6 Months to | 6 Months to | Year ended | ||
30 June 2024 | 30 June 2023 | 31 Dec 2023 | ||
£ | £ | £ | ||
LOSS FOR THE YEAR | (264,942) | (613,773) | (789,795) | |
ITEMS THAT WILL OR MAY BE RECLASSIFIED TO PROFIT | ||||
OR LOSS: |
Exchange gains arising on translation on foreign | 89,570 | (331,076) | (317,429) | |||
operations | ||||||
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET | 89,570 | (331,076) | (317,429) | |||
OF INCOME TAX | ||||||
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | (175,372) | (944,849) | (1,107,224) | |||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||
FOR THE SIX MONTHS TO 30 JUNE 2024 | ||||||
(Unaudited) | (Unaudited) | (Audited) | ||||
6 Months to | 6 Months to | Year ended | ||||
30 June 2024 | 30 June 2023 | 31 Dec 2023 | ||||
£ | £ | £ | ||||
ASSETS | ||||||
NON-CURRENT ASSETS | ||||||
Intangible assets | 5,129,760 | 4,688,947 | 4,759,055 | |||
Property, plant and equipment | 1,949 | 2,615 | 2,202 | |||
Investments in equity accounted associates | 733,963 | 667,337 | 732,106 | |||
Loans and other financial assets | 374,774 | 619,773 | 719,024 | |||
6,240,446 | 5,978,672 | 6,212,387 | ||||
CURRENT ASSETS | ||||||
Trade and other receivables | 30,209 | 39,427 | 46,909 | |||
Cash and cash equivalents | 528,464 | 326,946 | 203,526 | |||
558,673 | 366,373 | 250,435 | ||||
TOTAL ASSETS | 6,799,119 | 6,345,045 | 6,462,822 | |||
EQUITY | ||||||
SHAREHOLDERS' EQUITY | ||||||
Called up share capital | 3,772,584 | 3,695,415 | 3,745,415 |
Share premium | 19,591,493 | 18,807,922 | 19,109,662 | |
Translation reserve | (1,222,984) | (1,326,201) | (1,312,554) | |
Share scheme reserve | 9,759 | 67,896 | 9,759 | |
Retained earnings | (15,500,967) | (15,127,899) | (15,236,025) | |
TOTAL EQUITY | 6,649,885 | 6,117,133 | 6,316,257 | |
LIABILITIES | ||||
CURRENT LIABILITIES | ||||
Trade and other payables | 149,234 | 227,912 | 146,565 | |
Borrowings | - | - | - | |
TOTAL LIABILITIES | 149,234 | 227,912 | 146,565 | |
TOTAL EQUITY AND LIABILITIES | 6,799,119 | 6,345,045 | 6,462,822 | |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Called up | Retained earnings | Share | Translation | Share Scheme | Total Equity | |
share | premium | Reserve | Reserve | |||
capital | ||||||
£ | £ | £ | £ | £ | £ | |
Balance at 31 | 3,078,297 | (14,504,409) | 18,632,040 | (995,125) | 58,179 | 6,268,982 |
December 2022 | ||||||
Loss for the period | - | (613,773) | - | - | - | (613,773) |
Other comprehensive | - | - | - | (331,076) | - | (331,076) |
income | ||||||
Share warrants granted | - | (9,717) | 9,717 | - | ||
Issue of Share Capital | 617,118 | - | 175,882 | - | - | 793,000 |
Balance at 30 June | 3,695,415 | (15,127,899) | 18,807,922 | (1,326,201) | 67,896 | 6,117,133 |
2023 | ||||||
Loss for the period | - | (108,126) | - | - | - | (108,126) |
Other comprehensive | - | - | - | 13,647 | - | 13,647 |
income | ||||||
Share warrants expired | - | - | - | - | (58,137) | (58,137) |
Issue of Share Capital | 50,000 | - | 301,740 | - | - | 351,740 |
Balance at 31 | 3,745,415 | (15,236,025) | 19,109,662 | (1,312,554) | 9,759 | 6,316,257 |
December 2023 |
Loss for the period | - | (264,942) | - | - | - | (264,942) |
Other comprehensive | - | - | - | 89,570 | - | 89,570 |
income | ||||||
Issue of Share Capital | 27,169 | - | 481,831 | - | - | 509,000 |
Balance at 30 June | 3,772,584 | (15,500,967) | 19,591,493 | (1,222,984) | 9,759 | 6,649,885 |
2024 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
(Unaudited) | (Unaudited) | (Audited) | ||
6 Months to | 6 Months to | Year ended | ||
30 June 2024 | 30 June 2023 | 31 Dec 2023 | ||
£ | £ | £ | ||
Cash flows from operating activities | ||||
CF note | (258,782) | (388,338) | (765,398) | |
Cash used in operations | 1 | |||
Net cash used in operating activities | (258,782) | (388,338) | (765,398) | |
Cash flows from investing activities | ||||
Purchase of intangible fixed assets | (44,750) | (39,199) | (99,560) | |
Disposal of financial fixed assets | 410,979 | - | - | |
Purchase of investments in associates | - | - | (68,446) | |
Issue of loans | (62,550) | (193,747) | (167,483) | |
Interest received | 860 | 7,424 | 2,242 | |
Net cash used in investing activities | 304,539 | (225,522) | (333,247) | |
Cash flows from financing activities | ||||
Proceeds of share issue | 300,001 | 793,000 | 1,213,000 | |
Share issue costs | (21,000) | - | (58,500) | |
Net cash from financing activities | 279,001 | 793,000 | 1,154,500 | |
Increase / (decrease) in cash and cash | 324,758 | 179,140 | 55,855 | |
equivalents | ||||
Cash and cash equivalents at beginning of | CF note | 203,644 | 150,905 | 150,905 |
period | 2 |