Source - LSE Regulatory
RNS Number : 9492J
Beowulf Mining PLC
27 August 2021
 

 

 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

27 August 2021

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Financial Results for the Period Ended 30 June 2021

 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces its unaudited financial results for the six months ended 30 June 2021.

·           On 20 April 2021, Beowulf published a letter that the Company's Chairman, Sven Otto Littorin, had sent to Minister Baylan, Sweden's Minister of Enterprise and Innovation, concerning the Company's Kallak Iron Ore Project ("Kallak" or the "Kallak Project") Exploitation Concession application. On 14 June 2021, the Company's CEO, Kurt Budge, sent a further letter regarding this matter.

·           On 19 May 2021, the Company co-sponsored, with Eurobattery Minerals AB, a webinar titled 'Hållbar Gruvnäring' (Sustainable Mining) in Stockholm aimed at educating stakeholders on the rapid increase in smart and green technologies and the demands this creates for new supply of innovation-critical metals and minerals.

The Swedish Government has set-up an inquiry aimed at ensuring a sustainable supply of innovation-critical metals and minerals from primary and secondary sources.  It is recognised that sustainable and lasting access to innovation-critical metals and minerals is of great importance to Sweden, but at the same time, no new mine has been established in Sweden in over a decade.

·           On 25 May 2021, the Company announced the results of a Mineral Resource Estimate ("MRE") Upgrade for the Kallak Project in Sweden; an additional 19 million tonnes ("Mt") of iron mineralisation, a 12.5 per cent resource increase, giving a Measured and Indicated Resource of 132 Mt grading 27.8 per cent iron ("Fe") and an Inferred Mineral Resource of 39 Mt grading 27.1 per cent Fe.

·           On 8 June 2021, via the Swedish Government, the Company received a copy of a letter written by UNESCO, dated 2 June 2021, with its comments on Beowulf's application for an Exploitation Concession for Kallak.  On 9 June 2021, the Company updated the market with its preliminary response to UNESCO's findings.

·           On 10 June 2021, Beowulf's wholly-owned Finnish Subsidiary Oy Fennoscandian Resources Ab ("Fennoscandian") was granted €791,000 by Business Finland, the equivalent of 50 per cent of a three-year €1.6 million budget for Fennoscandian's 'Spheronisation and Purification of Natural Graphite for the European Lithium-Ion Battery Market' project. Sufficient funding will be made available from Beowulf to enable Fennoscandian to fund the balance of the project budget.

Fennoscandian has with immediate effect changed its name to Grafintec Oy.

·           Beowulf announced that further to the UNESCO letter dated 2 June 2021 and the CEO's letter to Minister Baylan dated 14 June 2021, on 18 June 2021 the Ministry of Enterprise (the "Ministry") and Innovation invited the Company to submit any further comments regarding the UNESCO letter to the Ministry by 6 September 2021.

 

Post Period

·           On 5 July 2021, Beowulf announced there were 607,748,200 Swedish Depository Receipts representing 73.4 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

·           Beowulf announced, on 8 July 2021, the issue and allotment of 3,535,412 new ordinary shares of 1 pence each in the Company (the "Shares") to satisfy an exercise of share options held by Kurt Budge, CEO ("Share Options").

·           On 14 July 2021, Beowulf announced the award of a Mining Study contract to Carci Mining Consultants Limited ("Carci") for Kallak, to develop an open pit design and mining schedule based on the upgraded MRE.

·           Beowulf announced, on 2 August 2021, the Company had invested a further £100,000 in Vardar Minerals Ltd ("Vardar").  The investment increases the Company's ownership in Vardar from 48.4 per cent to approximately 49.4 per cent.  Beowulf's investment is funding advance procurement of necessary support equipment for drilling planned for Autumn 2021.

 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

 

"Beowulf has a busy back end of the year to look forward to.

"We will be submitting our comments to the Swedish Government regarding the UNESCO letter on Kallak. Given Minister Baylan's words in recent months about a decision once UNESCO had responded, the acceleration of fossil-free steel making in Sweden and the continued need for investment and new jobs in the north of Sweden, we remain optimistic that a decision will be 'forthcoming'.

"On the back of an upgraded resource at Kallak, we have invested again and now await the results of the Mining Study, which will support discussions with The Swedish Transport Agency (Trafikverket), the Inlandsbanan (the Inland Railway) and emerging fossil-free steel producers in Norrbotten, such as H2 Green Steel.

"In Finland, Fennoscandian's success with the grant of €791,000 by Business Finland is a tremendous boost and we look forward to applying these funds to our investment programmes especially the further development of our partnership with Epsilon Advanced Materials and the establishment of a Strategic Processing Hub in Finland. We will provide an update on developments in the next couple of months.

"Finally, we are looking forward to permits being renewed and the start of an intensive drilling campaign in Kosovo this Autumn."

Financials

 

·           The consolidated loss increased from H1 2020 at £394,475 to H1 2021 of £714,871.

·           The underlying consolidated administrative costs of £718,293 for H1 2021 increased by £315,139 compared to the administrative cost of £403,154 for H1 2020. The variance is largely attributable to the foreign currency loss of £200,765 (2020: £5,395), this is primarily due to the retranslation of cash balances held in SEK, combined with an increase in directors' remuneration and social security costs (£17,424), consultancy (£69,521), and research costs incurred in Fennoscandian relating to downstream processing of (£19,569).

·           Consolidated basic and diluted loss per share for the period ended 30 June 2021 was 0.08 pence (H1 2020: profit of 0.06 pence).

·           £4,408,639 in cash held at the period end (H1 2020: £620,940). The higher level of cash is attributable to fundraising activities completed in December 2020 which raised approximately £7.4 million before expenses.

·           The cumulative translation losses held in equity attributable to the holders of the parent increased by £481,698 in the period ended 30 June 2021 to £938,970 (31 December 2020: gain of £592,079). Much of the Company's exploration costs are in Swedish Krona and Euro which has weakened against the pound since 31 December 2020.

·           At 30 June 2021, there were 607,748,200 Swedish Depository Receipts issued representing 73.4 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK as AIM securities.

Operational

Finland

·           On 10 June 2021, Fennoscandian, was granted €791,000 by Business Finland, the equivalent of 50 per cent of a three-year €1.6 million budget for Fennoscandian's 'Spheronisation and Purification of Natural Graphite for the European Lithium-Ion Battery Market' project. Sufficient funding will be made available from Beowulf to enable Fennoscandian to fund the balance of the project budget.

This work is part of the BATCircle 2.0 (Finland-based Circular Ecosystem of Battery Metals) consortium which has been granted €10.8 million by Business Finland as part of a total funding budget of €19.3 million.

Finland has high-quality natural flake graphite resources, and the opportunity exists to create a sustainable value chain for anode material markets in Finland and Europe.

The overall objectives of the project are to develop a chemical free technological solution, utilising renewable energy, to spheronise and purify graphite within a Finnish industrial ecosystem, for use in manufacturing lithium-ion battery anodes.

Sweden

·           On 25 May 2021, the Company announced the results of a MRE Upgrade for the Kallak Project, which was prepared by Baker Geological Services Ltd.

An additional 19 Mt of iron ore mineralisation, a 12.5 per cent resource increase, was identified, with a Measured and Indicated Resource of 132 Mt grading 27.8 per cent Fe and an Inferred Mineral Resource of 39Mt grading 27.1 per cent Fe.

Three distinct areas of elevated copper and gold mineralisation have also been identified in drilling, running the length of the Kallak Project area, with elevated assay intersections predominantly lying on the boundaries of the iron mineralisation.

Copper grades reach up to 1.6 per cent, although this was the maximum possible value using the assay method employed at the time.

Gold grades reach up to 0.75 grammes per tonne from testwork completed in April 2021 on those pulp samples where the copper assay was more than 0.1 per cent.

In total, 30 samples were sent for gold assay with only five samples being below detection limit.

·           On 8 June 2021, via the Swedish Government, the Company received a copy of a letter written by UNESCO, dated 2 June 2021, with its comments on Beowulf's application for an Exploitation Concession for Kallak. 

Comments from UNESCO suggested that:

·    the Swedish Government seek a revised and extended In-Depth Assessment in assessing the impact of the proposed development [of the Kallak Iron Ore Project] on a World Heritage Property [Laponia] prior to any decision being taken to approve the mining exploitation;

·    that the role of the Sami Parliament is relevant to the assessment of the impact of the proposed development on the World Heritage property; and

·    that the Swedish Government should also consider how the practice of reindeer husbandry outside the property and directly related to reindeer husbandry within the property will be protected.

 

·           On 9 June 2021, the Company's CEO, Kurt Budge, wrote to Minister Baylan regarding the UNESCO letter.

Selected extracts from the letter are provided below:

'On 8 June 2021, Beowulf Mining was notified by the Finansinspektionen, Sweden's financial supervisory authority, whose role is to promote stability and efficiency in Sweden's financial system as well as to ensure sustainability and an effective consumer protection, of UNESCO's letter regarding our Kallak Iron Ore Project ("Kallak") dated 2 June 2021.

Finansinspektionen wrote that UNESCO's letter had been in the hands of members of the Swedish public (including elected Sami officials) for several days, with associated posts on social media.

At the time, Beowulf had not received a copy of UNESCO's letter, but as the information was already in the public domain, with no explanation of its significance the market reacted strongly, left to draw its own conclusions.  The Company's share price fell over 10 per cent last week.

During the last six years, there have been several occasions where 'market sensitive' information has been made public before Beowulf has been informed.  Each time damage has been caused to the Company's share price, individual's investments, including Swedish shareholders who now own 72 per cent of the Company, and Sweden's reputation as a country in which to do business.

It is the Company's experience that often public agencies do not understand what constitutes 'market sensitive' information or recognise the obligations of a public company to its shareholders and the equity markets. Once again, the Company is left to deal with the aftermath.

It is inaccurate to say that the Kallak case is complex because of competing interests, as an excuse for delaying a decision. National interests are a distraction.  The evidence shows that mining and reindeer herding coexist across Sweden, in the very few places you actually find an operating mine, as there are only 12 in the Country.

Beowulf has satisfied the procedural and legal requirements to be granted the Concession and has the right to progress with its investment, project development and environmental permitting.  This has been the case since Bergsstaten recommended to the Government that the Concession be awarded over 5.5 years ago.

We could have been in production now.  With benchmark iron ore prices at over $200/tonne, Jokkmokk should have already been on the road to realising its economic transformation.  The opportunity cost to stakeholders in Jokkmokk and Beowulf shareholders is considerable.'

Beowulf also announced that further to the UNESCO letter dated 2 June 2021 and the CEO's letter to Minister Baylan dated 14 June 2021, on 18 June 2021 the Ministry of Enterprise and Innovation (the "Ministry") invited the Company to submit any comments regarding the UNESCO letter to the Ministry by 6 September 2021.

·           On 14 July 2021, Beowulf announced the award of a Mining Study contract to Carci Mining Consultants for Kallak, to develop an open pit design and mining schedule based on the upgraded MRE.

The Mining Study will provide better definition for mining equipment selection, and product types, production volumes and specifications, which will support project development, discussions with The Swedish Transport Agency (Trafikverket), the Inlandsbanan (the Inland Railway) and emerging fossil-free steel producers in Norrbotten.

Corporate

·           On 5 July 2021, Beowulf announced there were 607,748,200 Swedish Depository Receipts representing 73.4 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

·           Beowulf announced, on 8 July 2021, the issue and allotment of 3,535,412 new ordinary shares of 1 pence each in the Company (the "Shares") to satisfy an exercise of share options held by Kurt Budge, CEO ("Share Options").

Kurt Budge exercised Share Options in respect of 9,000,000 shares, originally granted on 17 July 2015.  The Share Options, as originally granted, had an exercise price of 1.66 pence per share and were due to be exercised no later than 17 July 2020 but the Company was in a Close Period associated with last year's Capital Raising. The exercise period was extended, in July 2020, to 17 July 2021 in order to allow Mr Budge the opportunity to exercise the Share Options, which because of the time extension became non-tax advantaged.  The Company opted, with Kurt Budge abstaining from this decision, to net settle the share option exercise with Kurt Budge paying the nominal value of the Shares being issued.

ESG

·           Beowulf is a strong supporter of the Sustainable Development Goals ("SDGs") and is currently reviewing how the Company can best proactively support their implementation in our areas of influence.

·           The Company has adopted the following Disclosure Topics listed by the Sustainability Accounting Standards Board for the Metals and Mining sector (https://www.sasb.org/standards/) as material to the Company's stakeholders:

·      Energy Management including Green House Gas Emissions;

·      Water Management;

·      Biodiversity Impacts;

·      Rights of Indigenous Peoples;

·      Community Relations; and

·      Business Ethics and Transparency.

 

·           As at this time Beowulf has no active mining operations, these Disclosure Topics will be integrated into the Company's policies, corporate strategy, project development plans and management systems.

·           As the Company moves forward with its ESG agenda, it will be transparent in its communications, the progress it is making, and sustainability results.

·           The Company is currently working on a Human Rights Policy.

 

Enquiries:

 

Beowulf Mining plc

 

Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 7583 8304

SP Angel

(Nominated Adviser & Broker)

 

Ewan Leggat / Stuart Gledhill / Adam Cowl

Tel: +44 (0) 20 3470 0470

Blytheweigh 

 

Tim Blythe / Megan Ray 

Tel: +44 (0) 20 7138 3204

 

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecast.

About Beowulf Mining plc

Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and development company, listed on the AIM market of the London Stock Exchange and the Spotlight Exchange in Sweden.

Beowulf's purpose to be a responsible and innovative company that creates value for our shareholders, wider society and the environment, through sustainably producing critical raw materials, which includes iron ore, graphite and base metals, needed for the transition to a Green Economy and to address the Climate Emergency.

The Company's asset portfolio is diversified by commodity, geography and the development stage of its various projects.

The Company's most advanced project is the Kallak iron ore asset in northern Sweden.  A potential 389 million tonne resource which can produce a 'market leading' concentrate of 71.5% iron content and is a potential source of supply for fossil-free steel production in Sweden for decades to come.

Fennoscandian Resources ("Fennoscandian"), a wholly-owned subsidiary, is pursuing a strategy to develop a resource and production base of graphite that can provide security of supply and contribute to Finland's ambitions of achieving battery manufacturing self-sufficiency, focusing on both natural flake graphite production and a Circular Economy/recycling strategy to produce high-value graphite products. The Company is also developing its knowledge in processing and manufacturing value-added graphite products, including anode material for lithium-ion batteries.

Since Fennoscandian was acquired by Beowulf in January 2016, the Company has invested approximately  €2.2 million in graphite exploration, resource development, metallurgical testwork and the assessment of market applications for graphite supplied from its Aitolampi project, including lithium-ion battery applications.

Fennoscandian has recently signed a Memorandum of Understanding ("MoU") with Epsilon Advance Materials Limited ("EAMPL").  The MoU enables Fennoscandian to build its downstream capability, collaborating with a strong and innovative technology/processing partner, and for EAMPL to firmly establish itself in Finland, as a market-entry point for supplying pre-cursor anode material into Europe.  The MoU addresses the development of a strategic processing hub for both natural flake and recycled graphite to be located in Finland.

In addition, a Scoping Study contract for the Aitolampi graphite project has been awarded to AFRY Finland Oy. The purpose of the Scoping Study is to verify the robustness of the work completed by Fennoscandian, and to provide a roadmap for the next project development stage, most likely a Pre-feasibility Study. The output of the Scoping Study will enable Fennoscandian to share information on the Aitolampi project and communicate with the local community and other important stakeholders.

In Kosovo, the Company owns approximately 49.4% of Vardar Minerals ("Vardar"), which is focus on exploration in the Tethyan Belt, a major orogenic metallogenic province for gold and base metals.  Vardar is delivering exciting results for its Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold. It also has the Viti licence which is showing potential for copper-gold porphyry mineralisation. With Beowulf's support, Vardar is focused on making a discovery.

Kallak is the foundation asset of the Company, but with Vardar and Fennoscandian, the Company has many opportunities to grow, each business area displaying strong prospects.

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

 

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

                                                             

Notes

(Unaudited)

3 months ended 30 June

 2021

 

 

£

(Unaudited)

3 months ended 30 June

 2020

 

 

£

(Unaudited)

6 months ended 30 June

 2021

 

 

£

(Unaudited)

6 months ended 30 June

 2020

 

 

£

(Audited)   

12 months ended 31 December 2020

 

 

£

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

(190,460)

(185,503)

(718,293)

(403,154)

(1,005,547)

Impairment of exploration costs

 

-

-

-

-

(98,799)

 

 

 

 

 

 

 

Operating (Loss)

 

(190,460)

(185,503)

(718,293)

(403,154)

(1,104,346)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

(70)

(73)

(88)

(161)

(203,576)

Finance income

 

21

188

47

583

594

Grant Income

 

2,216

8,257

3,463

8,257

12,637

(Loss) before and after taxation

 

 

(188,293)

(177,131)

(714,871)

(394,475)

(1,294,691)

 

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

 

 

Owners of the parent

 

(170,213)

(161,650)

(667,848)

(353,195)

(1,128,512)

Non-controlling interests

 

(18,080)

(15,481)

(47,023)

(41,280)

(166,179)

 

 

 

 

 

 

 

 

 

 

(188,293)

(177,131)

(714,871)

(394,475)

(1,294,691)

 

 

 

 

 

 

 

Loss per share attributable to the owners of the parent:

 

 

 

 

 

 

Basic and diluted (pence)                           

3

(0.02)

(0.03)

(0.08)

(0.06)

(0.19)

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

 

 

(Unaudited)

3 months ended

30 June

 2021

 

£

(Unaudited)

3 months ended

30 June

 2020

 

£

(Unaudited)

6 months ended

30 June

 2021

 

£

(Unaudited)

6 months ended

30 June

 2020

 

£

(Audited)

12 months

ended

31 December 2020

 

£

 

 

 

 

 

 

 

 (Loss) for the period / year

 

(188,293)

(177,131)

(714,871)

(394,475)

(1,294,691)

Other comprehensive (loss) / income

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange (losses)/gain arising on translation of foreign operations

 

142,452

495,684

(503,471)

620,360

854,020

Total comprehensive (loss) / income

 

(45,841)

318,553

(1,218,342)

225,885

(440,671)

 

 

 

 

 

 

 

Total comprehensive (loss) / income attributable to:

 

 

 

 

 

 

Owners of the parent

 

(26,158)

309,608

(1,149,546)

238,883

(294,716)

Non-controlling interests

 

(19,683)

8,943

(68,796)

(12,998)

(145,955)

 

 

(45,841)

318,553

(1,218,342)

(225,885)

(440,671)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME

 

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

 

 

                                                             

Notes

(Unaudited)

3 months ended

30 June

 2021

 

£

(Unaudited)

3 months ended

30 June

 2020

 

£

(Unaudited)

6 months ended

30 June

 2021

 

£

(Unaudited)

6 months ended

30 June

 2020

 

£

(Audited)   

12 months ended

31 December 2020

 

£

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

(203,114)

(146,276)

(686,862)

(303,612)

(869,853)

 

 

 

 

 

 

 

Operating Loss

 

(203,114)

(146,276)

(686,862)

(303,612)

(869,853)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

21

188

47

583

594

Loss before and after taxation and total comprehensive loss

 

 

 

(203,093)

 

(146,088)

 

(686,815)

 

(303,029)

 

(869,259)

 

 

 

 

 

 

 

Loss per share attributable to the owners of the parent:

 

 

 

 

 

 

Basic and diluted (pence)                           

3

(0.02)

(0.02)

(0.08)

(0.05)

(0.14)

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

AS AT 30 JUNE 2021

 

 

 

 

(Unaudited)

As at

30 June

 2021

£

 

(Unaudited)

As at

30 June

2020

£

 

(Audited)

As at

31 December

2020

£

ASSETS

Notes

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Intangible assets

5

 

11,189,370

 

10,868,864

 

11,371,916

Property, plant and equipment

 

 

120,125

 

132,921

 

145,094

Loans and other financial assets

 

 

5,334

 

5,394

 

5,468

Right of use asset

 

 

10,395

 

4,915

 

1,937

 

 

 

 

 

 

 

 

 

 

 

11,325,224

 

11,012,094

 

11,524,415

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Trade and other receivables

 

 

128,834

 

92,619

 

1,566,848

Cash and cash equivalents

 

 

4,408,639

 

620,940

 

4,329,414

 

 

 

 

 

 

 

 

 

 

 

4,537,473

 

713,559

 

5,896,262

TOTAL ASSETS

 

 

15,862,697

 

11,725,653

 

17,420,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Share capital

4

 

8,281,751

 

6,022,446

 

8,281,751

Share premium

 

 

24,665,977

 

20,824,009

 

24,684,737

Merger Reserve

 

 

137,700

 

137,700

 

137,700

Capital contribution reserve

 

 

46,451

 

46,451

 

46,451

Share-based payment reserve

 

 

732,185

 

732,185

 

732,185

Translation reserve

 

 

(938,970)

 

(698,989)

 

(457,272)

Accumulated losses

 

 

(17,818,139)

 

(16,155,211)

 

(17,083,185)

 

 

 

 

 

 

 

 

Total Equity

 

 

15,106,955

 

10,908,591

 

16,342,367

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

392,422

 

374,411

 

394,113

TOTAL EQUITY

 

 

15,499,377

 

11,283,002

 

16,736,480

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

218,397

 

284,489

 

538,772

Grant income

 

 

134,497

 

153,086

 

143,399

Lease Liability

 

 

10,426

 

5,076

 

2,026

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

363,320

 

442,651

 

684,197

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 

15,862,697

 

11,725,653

 

17,420,677

 

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

 

 

 

(Unaudited)

As at

30 June

 2021

£

 

(Unaudited)

As at

30 June

2020

£

 

(Audited)

As at

31 December 2020

£

ASSETS

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Investments

 

2,277,988

 

1,777,988

 

2,077,988

Loans and other financial assets

 

9,969,134

 

9,157,028

 

9,341,315

Property, plant and equipment

 

1,297

 

-

 

1,483

 

 

 

 

 

 

 

 

 

12,248,419

 

10,935,016

 

11,420,786

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

 

40,507

 

23,455

 

1,476,755

Cash and cash equivalents

 

3,918,655

 

452,184

 

4,241,426

 

 

 

 

 

 

 

 

 

3,959,162

 

475,639

 

5,718,181

TOTAL ASSETS

 

16,207,581

 

11,410,655

 

17,138,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Share capital

 

8,281,751

 

6,022,446

 

8,281,751

Share premium

 

24,665,977

 

20,824,009

 

24,684,737

Merger Reserve

 

137,700

 

137,700

 

137,700

Capital contribution reserve

 

46,451

 

46,451

 

46,451

Share-based payment reserve

 

732,185

 

732,185

 

732,185

Accumulated losses

 

(17,854,933)

 

(16,601,88)

 

(17,168,118)

 

 

 

 

 

 

 

TOTAL EQUITY

 

16,009,131

 

11,160,903

 

16,714,706

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

63,953

 

96,666

 

280,862

Grant income

 

134,497

 

153,086

 

143,399

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

198,450

 

249,752

 

424,261

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

16,207,581

 

11,410,655

 

17,138,967

 

 

 

BEOWULF MINING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

Share capital

Share premium

Merger reserve

Capital contribution reserve

Share-based payment reserve

Translation reserve

Accumulated losses

Total

Non-

controlling

interest

Total equity

 

£

£

£

£

£

£

£

£

£

£

 

At 1 January 2020

6,022,446

20,824,009

137,700

46,451

732,185

(1,291,068)

(15,781,161)

10,690,562

326,555

11,017,117

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

 

 

 

(353,195)

(353,195)

(41,280)

(394,475)

Foreign exchange translation

 

 

 

 

 

592,079

 

592,079

28,281

620,360

Total comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

592,079

(353,195)

238,884

(12,999)

225,885

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Step acquisition of Subsidiary

-

-

-

-

-

-

(20,855)

(20,855)

60,855

40,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2020 (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(698,989)

(16,155,211)

10,908,591

374,411

11,283,002

Loss for the period

-

-

-

-

-

-

(775,317)

(775,317)

(124,899)

(900,216)

Foreign exchange translation

-

-

-

-

-

241,171

-

241,171

(8,057)

233,660

Total comprehensive loss

-

-

-

-

-

241,171

(755,317)

(533,600)

(132,956)

(666,556)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Issue of share capital

2,259,305

5,165,060

-

-

-

-

-

7,424,365

-

7,424,365

Issue costs

-

(1,304,332)

-

-

-

-

-

(1,304,332)

-

(1,304,332)

Issue of shares

-

-

-

-

-

-

-

-

-

-

Step acquisition of Subsidiary

-

-

-

-

-

-

(152,657)

(152,657)

152,658

1

At 31 December 2020 (Audited)

8,281,751

24,684,737

137,700

46,451

732,185

(457,272)

(17,083,185)

16,342,367

394,113

16,736,480

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

-

(667,848)

(667,848)

(47,023)

(714,871)

Foreign exchange translation

-

-

-

-

-

(481,698)

-

(481,698)

(21,774)

(503,472)

Total comprehensive loss

-

-

-

-

-

(481,698)

(667,848)

(1,149,546)

(68,797)

(1,218,343)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Issue costs

-

(18,760)

-

-

-

-

-

(18,760)

-

(18,760)

Issue of shares

-

-

-

-

-

-

-

-

-

-

Step acquisition of Subsidiary

-

-

-

-

-

-

(67,106)

(67,106)

67,106

-

At 30 June 2021 (Unaudited)

8,281,751

24,665,977

137,700

46,451

732,185

(938,970)

(17,818,139)

15,106,955

392,422

15,499,377

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

 

Share capital

Share premium

Merger reserve

Capital contribution reserve

Share-based payment reserve

Accumulated losses

Total

 

£

£

£

£

£

£

£

 

At 1 January 2020

 

6,022,446

 

20,824,009

 

137,700

 

46,451

 

732,185

 

(16,298,859)

 

11,463,932

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(303,029)

(303,029)

Total comprehensive loss

 

 

 

 

 

 

 

 

-

-

-

-

-

(303,029)

(303,029)

 

At 30 June 2020 (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(16,601,888)

11,160,903

Loss for the period

-

-

-

-

-

(566,230)

(566,320)

Total comprehensive loss

-

-

-

-

-

(566,320)

(566,320)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Issue of share capital

2,259,305

5,165,060

-

-

-

-

7,424,365

Issue costs

-

(1,304,332)

-

-

-

-

(1,304,332)

At 31 December 2020 (Audited) (Unaudited)

8,281,751

24,684,737

137,700

46,451

732,185

(17,168,118)

16,714,706

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(686,815)

(686,815)

Total comprehensive loss

-

-

-

-

-

(686,815)

(686,815)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Issue costs

-

(18,760)

-

-

-

-

(18,760)

At 30 June 2021 (Unaudited)

8,281,751

24,665,977

137,700

46,451

732,185

(17,854,933)

16,009,131

 

 

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

 

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

 

6 months to

 

6 months to

 

Year ended

 

 

30 June 2021

 

30 June 2020

 

31 Dec 2020

 

 

£

 

£

 

£

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Loss before income tax

 

(714,871)

 

(394,475)

 

(1,294,691)

Depreciation charges

 

18,842

 

13,108

 

35,608

Impairment of exploration costs

 

-

 

-

 

98,799

Finance income

 

(47)

 

(583)

 

(594)

Finance cost

 

88

 

161

 

203,576

Grant income

 

(3,463)

 

(8,257)

 

(12,637)

Gain on sale of fixed assets

 

(17,518)

 

-

 

-

Shares in Lieu

 

-

 

-

 

2,806

Amortisation of right-of-use asset

 

2,819

 

2,840

 

5,777

Unrealised foreign exchange

 

194,916

 

-

 

(12,590)

Decrease / (increase)in trade and other receivables

 

43,397

 

78,377

 

(2,203)

(Decrease) / increase in trade and other payables

 

(314,929)

 

31,771

 

97,623

 

 

 

 

 

 

 

Net cash used in operating activities

 

(790,766)

 

(277,058)

 

(878,526)

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Purchase of intangible fixed assets

 

(311,296)

 

(245,440)

 

(622,501)

Purchase of property, plant and equipment

 

(1,638)

 

(58,446)

 

(89,436)

Additional investment in Vardar

 

-

 

40,000

 

40,000

Grant receipt

 

-

 

34,925

 

25,796

Proceeds from sale of fixed assets

 

22,397

 

-

 

-

Interest received

 

47

 

583

 

594

 

 

 

 

 

 

 

Net cash used in investing activities

 

(290,490)

 

(228,378)

 

(645,547)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issue of shares

 

1,392,081

 

-

 

4,941,065

Payment of share issue costs

 

(18,760)

 

-

 

(1,113,348)

Lease principal and interest paid

 

(2,869)

 

(2,827)

 

(5,840)

Lease interest paid

 

(88)

 

(161)

 

(255)

Proceeds from borrowings

 

-

 

-

 

932,309

Interest paid

 

-

 

-

 

(93,935)

 

 

 

 

 

 

 

Net cash from / (used in) financing activities

 

1,370,364

 

(2,988)

 

4,659,996

 

 

 

 

 

 

 

Increase / (Decrease) in cash and cash equivalents

 

289,108

 

(508,424)

 

3,135,923

Cash and cash equivalents at beginning of period/year

 

4,329,414

 

1,124,062

 

1,124,062

Effect of foreign exchange rate changes

 

(209,833)

 

5,302

 

69,429

 

 

 

 

 

 

 

Cash and cash equivalents at end of period/year

 

4,408,639

 

620,940

 

4,329,414

 

 

 

 

 

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS TO 30 JUNE 2021

 

 

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

 

6 months to

 

6 months to

 

Year ended

 

 

30 June 2021

 

30 June 2020

 

31 Dec 2020

 

 

£

 

£

 

£

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Loss before income tax

 

(686,815)

 

(303,029)

 

(869,259)

Expected credit losses

 

145,498

 

30,803

 

72,069

Depreciation

 

185

 

-

 

-

Shares in Lieu

 

-

 

-

 

2,806

Finance income

 

(47)

 

(583)

 

(594)

Finance costs

 

-

 

-

 

203,321

Unrealised foreign exchange

 

195,788

 

-

 

16,865

 

 

(345,391)

 

(272,809)

 

(574,792)

 

 

 

 

 

 

 

Decrease / (increase)in trade and other receivables

 

43,418

 

(196)

 

(61,415)

(Decrease) / increase in trade and other payables

 

(216,159)

 

6,264

 

(524)

 

 

 

 

 

 

 

Net cash used in operating activities

 

(518,132)

 

(266,741)

 

(636,731)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Loans to subsidiaries

 

(776,544)

 

(215,097)

 

(448,151)

Grant receipt

 

-

 

34,925

 

25,796

Acquisition of subsidiary

 

(200,000)

 

(80,000)

 

(380,000)

Interest received

 

47

 

583

 

594

Purchase of fixed assets

 

-

 

-

 

(1,483)

 

 

 

 

 

 

 

Net cash used in investing activities

 

(976,497)

 

(259,589)

 

(803,244)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issue of shares

 

1,392,081

 

-

 

4,941,065

Payment of share issue costs

 

(18,760)

 

-

 

(1,113,348)

Proceeds from borrowing

 

-

 

-

 

932,309

Interest paid

 

-

 

-

 

(93,935)

 

 

 

 

 

 

 

Net cash from financing activities

 

1,373,321

 

-

 

4,666,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Decrease) / increase in cash and cash equivalents

 

(121,308)

 

(526,330)

 

3,226,116

Cash and cash equivalents at beginning of period/year

 

4,241,426

 

978,514

 

978,514

Effect of foreign exchange rate changes

 

(201,463)

 

-

 

70,526

Cash and cash equivalents at end of period/year

 

3,918,655

 

452,184

 

4,275,156

 

 

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE SIX MONTHS TO 30 JUNE 2020

 

 

1. Nature of Operations

 

Beowulf Mining plc (the "Company") is domiciled in England and Wales. The Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. This consolidated financial information comprises that of the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is engaged in the acquisition, exploration and evaluation of natural resources assets and has not yet generated revenues.

 

2. Basis of preparation

 

The condensed consolidated financial information has been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as adopted in accordance with the provisions of the Companies Act 2006. The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31 December 2020.

 

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the UK Companies Act 2006. The financial information for the period ended 30 June 2020 is unaudited and has not been reviewed by the auditors. The financial information for the twelve months ended 31 December 2020 is an extract from the audited financial statements of the Group and Company. The auditor's report on the statutory financial statements for the year ended 31 December 2020 was unqualified and did not contain any statement under sections 498 (2) or (3) of the Companies Act 2006.

 

The financial statements are presented in GB Pounds Sterling. They are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets and liabilities has been applied.

 

Management have prepared cash flow forecasts confident that they are taking all necessary steps to ensure that the Group has the required cash to pursue it strategic objectives, an assertion supported by the significant cash available at the period end. They have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

 

 

 

3. Share Capital

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

30 June 2021

 

30 June 2020

 

31 Dec 2020

 

£

 

£

 

£

Allotted, issued and fully paid

 

 

 

 

 

Ordinary shares of 1p each

8,281,751

 

6,022,446

 

8,281,751

 

 

 

The number of shares in issue was as follows:

 

 

 

Number

 

of shares

Balance at 1 January 2020

602,244,672

Issued during the period

-

Balance at 30 June 2020

602,244,672

Issued during the period

225,930,552

Balance at 31 December 2020

828,175,224

Issued during the period

-

Balance at 30 June 2021

828,175,224

 

 

 

4. Intangible Assets: Group

 

Exploration costs

 

 

As at 30

June  

2021

 

As at 31 December

2020

 

 

(Unaudited)

 

(Audited)

 

 

£

 

£

Cost

 

 

 

 

At 1 January 

 

11,371,148

 

10,011,494

Additions for the year

 

311,296

 

612,062

Foreign exchange movements

 

(493,074)

 

847,159

Impairment

 

-

 

(98,799)

 

 

 

 

 

 

 

 

11,189,370

 

11,371,916

 

The net book value of exploration costs is comprised of expenditure on the following projects:

 

 

 

 

As at

30

June 

 2021

 

As at

31

December

2020

 

 

 

(Unaudited)

 

(Audited)

 

 

 

£

 

£

Project

Country

 

 

 

 

Kallak

Sweden

 

7,293,021

 

7,533,388

Ågåsjiegge

Sweden

 

479

 

-

Åtvidaberg

Sweden

 

376,551

 

393,303

Pitkäjärvi

Finland

 

1,410,645

 

1,333,114

Rääpysjärvi

Finland

 

47,667

 

47,053

Karhunmäki

Finland

 

43,628

 

41,017

Merivaara

Finland

 

36,746

 

36,965

Mitrovica

Kosovo

 

1,343,738

 

1,387,030

Viti

Kosovo

 

636,895

 

600,046

 

 

 

11,189,370

 

11,371,916

 

Total Group exploration costs of £11,189,370 are currently carried at cost in the financial statements. No impairment has been recognised during the period, (2020: Ågåsjiegge, Joutsijärvi, Polvela and Tammijärvi £98,799).

 

Accounting estimates and judgements are continually evaluated and are based on a number of factors, including expectations of future events that are believed to be reasonable under the circumstances. Management are required to consider whether there are events or changes in circumstances that indicate that the carrying value of this asset may not be recoverable.

 

The most significant risk currently facing the Group is that it does not receive an Exploitation Concession for Kallak. The Company originally applied for the Exploitation Concession in April 2013 and throughout 2017, and since the year-end, management have actively sought to progress the application, engaging with the various government bodies and other stakeholders. These activities are summarised above.

 

 

 

Kallak is included in the condensed financial statements as at 30 June 2021 as an intangible exploration licence with a carrying value of £7,293,021. Management have considered the status of the application for the Exploitation Concession and in their judgement, they believe it is appropriate to be optimistic about the chances of being awarded the Exploitation Concession and thus have not impaired the project.

 

5. Post balance sheet events

 

Beowulf announced, on 8 July 2021, the issue and allotment of 3,535,412 new ordinary shares of 1 pence each in the Company to satisfy an exercise of share options held by Kurt Budge, CEO.

 

Beowulf announced, on 2 August 2021, the Company had invested a further £100,000 in Vardar Minerals Ltd.  The investment increases the Company's ownership in Vardar from 48.4 per cent to approximately 49.4 per cent.  Beowulf's investment is funding advance procurement of necessary support equipment for drilling planned for Autumn 2021.

 

6. Availability of interim report

 

A copy of these results will be made available for inspection at the Company's registered office during normal business hours on any weekday. The Company's registered office is at 207 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. A copy can also be downloaded from the Company's website at www.beowulfmining.com. Beowulf Mining plc is registered in England and Wales with registered number 02330496.

 

 

** Ends **

 

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