Source - LSE Regulatory
RNS Number : 4189N
Shuka Minerals PLC
25 September 2023
 

25 September 2023

SHUKA MINERALS PLC

("Shuka" or the "Company")

 

Interim Results for the six months to 30 June 2023

 

 

Shuka Minerals plc (AIM: SKA), an African focused mine operator and developer, announces the Company's unaudited interim results for the six months ended 30 June 2023.

 

CEO'S report

 

I am pleased to present the Company's Interim Results for the six-month period from 1 January 2023 to 30 June 2023. The period was a transformative one for the Company, particularly from a corporate perspective with a strategic investment of £1.47 million secured from two African focused mining investment groups, an intended significant restructuring of the Board of Directors, a change of name to Shuka Minerals plc (which was successfully approved by shareholders subsequent to the end of the period) and the application of the funds raised to not only fund its ongoing working capital requirements at its operating Rukwa Coal Mine, but also to fund due diligence costs associated with ongoing review work of potential new and strategically complimentary projects in Africa.

 

The most notable development during the six-month period, was the strategic investment that the Company was able to secure with Q Global Commodities Group, one of South Africa's leading independent commodity, mining, logistics and investment funds and with Gathoni Muchai Investments Limited, an East Africa based mining investment group. As part of this investment, the Company received an aggregate £1.47 million of new funding, with £575,000 received in June 2023, and the £893,000 balance received in September 2023 following shareholder approval at the Annual General Meeting held on 3 August 2023.

 

In conjunction with this strategic investment, the Company commenced a major restructuring and strengthening of its Board, and I was pleased to confirm the appointment of Mr Jason Brewer, a director of Gathoni Muchai Investments and the CEO of London-listed Marula Mining Plc, as Executive Director of the Company in June 2023. I am also looking forward to the proposed appointment of Mr Quinton van der Burgh later this year, who is the founder and CEO of Q Global Commodities and one of South Africa's leading mining entrepreneurs, and who will join the Company as Director and Non-Executive Chairman, subject to satisfactory completion of customary due diligence by the Company's Nominated Adviser. Mr Nicholas von Schirnding, resigned as a director of the Company, with effect from 31 October 2023. I would like to thank Nick for his work and commitment to the Company over the years and would like to welcome Jason and, in due course, Quinton to the Board, whom I believe will be transformative appointments for the Company as it looks to re-establish itself over the coming months as a leading African focused mining and development company.

 

During the period and while the Company completed its corporate restructuring and recapitalisation, the Company continued to manage day-to-day operations at its wholly owned Rukwa Coal Mine in Tanzania. Operations during the period were quite challenging as a result of the high moisture content in the run-of-mine ("ROM") coal stockpile, which impacted on the coal washing process and coal production over the period. As a result of the wash plant performance and ongoing maintenance work on plant and equipment during the period, only limited coal sales were made into the regional markets during the period. The Company continues to review its ongoing investment in the Rukwa Coal Mine and targeted production rates. In parallel with its operational activities, the Company continued in its discussions with the Mining Commission in Tanzania, to ensure ongoing compliance with local regulations, and to address previously disclosed outstanding legacy matters concerning claims and litigation and the status of the mining licence.

 

The strategic investment received from Gathoni Muchai Investments and Q Global Commodities has ensured that the Company has been able to fund its ongoing working capital needs and corporate and mining development activities, and importantly fund costs associated with the evaluation of potential complementary advanced mining and mine development projects across Africa with the support and active involvement of these two new major shareholders.

 

I look forward to providing further updates as we progress our strategy and to operating under our new company name of Shuka Minerals plc which was approved by shareholders at the Annual General Meeting held on 3 August 2023, and officially announced on 1 September 2023. This is a name which certainly reflects our position as a mine operator in east Africa and as a truly African focused mining and development company that is committed to ensuring its activities demonstrate a commitment to environmental sustainability, community engagement, and responsible mining practices.

 

I would like to thank all our shareholders for their ongoing support and I look forward to working alongside my fellow directors and all key stakeholders over the rest of 2023.

 

Noel Lyons

Chief Executive Officer

 

For further information please contact:

Shuka Minerals Plc

info@shukaminerals.com




Strand Hanson Limited

+44 (0) 20 7409 3494

(Financial and Nominated Adviser)


Tavira Securities Limited

+44 (0) 20 7100 5100

(Joint Broker)

Oliver Stansfield

Jonathan Evans


Peterhouse Capital Limited

+44 (0) 20 3934 6630

(Joint Broker)


Charles Goodfellow


Duncan Vasey


 

 


 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 


 

Six months ended

30 June 23

Six months ended

30 June 22

Year

ended

31 Dec 22



Unaudited

Unaudited

 

Audited


Note

£

£

£

Revenue


68,926

56,146

183,448

Cost of sales


(151,627)

(452,484)

(896,147)



                

                

                

Gross loss


(82,701)

(396,338)

(712,699)

Administrative expenses


(656,060)

(423,627)

(1,038,384)



                

                

                

Group operating loss


(738,761)

(819,965)

(1,751,083)

Finance income


-

-

68

Finance costs


(7,562)

(675)

(4,747)



                

                

                

Loss on operations before taxation


(746,323)

(820,640)

(1,755,762)

 





Taxation


-

-

(917)

 


                

                

                

Loss for the period after taxation


(746,323)

(820,640)

(1,756,679)

Other comprehensive income/(loss):


-

-

-

(Loss)/gain on translation of overseas subsidiary


(335,033)

624,211

691,850

 


                

                

                

Total comprehensive loss for the period


 

(1,081,356)

 

(196,429)

 

(1,064,829)



                

                

                

Attributable to:





Equity holders of the Company


(1,080,722)

(195,155)

(1,062,161)

Non-controlling interest


(634)

(1,274)

(2,668)



                

                

                



(1,081,356)

(196,429)

(1,064,829)



                

                

                

Loss per share

 




- basic and diluted (pence)

2

(2.54)

(3.79)

(7.97)



                

                

                

 

The income for the period arises from the Group's continuing operations.

CONSOLIDATED statement of financial position

 

as at 30 June 2023


 

As at

30 June 23

As at

30 June 22

As at

31 Dec 22


 

Unaudited

Unaudited

Audited


 

 

 

 


Note

£

£

£

Non-current assets





Property, plant and equipment

4

5,568,304

5,906,709

5,911,876

Intangible assets

5

333,907

349,607

352,627



                   

                   

                   

 


5,902,211

6,256,316

6,264,503

Current assets





Inventories


111,516

180,124

117,766

Trade and other receivables


309,778

353,457

347,984

Cash and cash equivalents


440,655

477,438

237,300



                   

                   

                  

 


861,949

1,011,019

703,050

Current liabilities





Trade and other payables


(745,718)

(308,174)

(402,200)

Borrowings


(27,817)

(5,206)

(29,376)



                   

                   

                   



(773,535)

(313,380)

(431,576)



                   

                   

                   

Current assets less current liabilities


88,414

697,639

271,474

 


                   

                   

                   

Total assets less current liabilities


5,990,625

6,953,955

6,535,977

 





Non - current liabilities





Borrowings


(52,375)

-

(67,128)

Environmental rehabilitation liability


(28,984)

(27,339)

(30,609)



                   

                   

                   

Net assets


5,909,266

6,926,616

6,438,240

 


                   

                   

                   

Capital and reserves





Called-up share capital


4,348,744

4,176,601

4,233,744

Share premium account


23,009,976

22,254,317

22,569,976

Share based payment reserve


210,037

346,774

277,654

Foreign currency translation reserve


937,960

1,205,354

1,272,993

Retained earnings


(22,574,502)

(21,038,103)

(21,896,430)



                   

                   

                   

Issued capital and reserves attributable to owners of the parent company


5,932,215

6,944,943

6,457,937

Non-controlling interest


(22,949)

(18,327)

(19,697)

 


                   

                   

                   

Total equity


5,909,266

6,926,616

6,438,240

 


                   

                   

                   

CONSOLIDATED statement of changes in equity

 


--------------------------------------------------Equity Interests---------------------------------------

 

 


Share Capital

Share Premium

Retained Earnings Account

Share Option Reserve

Foreign Currency

Translation Reserve

Total

Non-controlling interest

Total


£

£

£

£

£

£

£

£

At 1 January 2023

4,233,744

22,569,976

(21,896,430)

277,654

1,272,993

6,457,937

(19,697)

6,438,240










Comprehensive Income for the year









Foreign currency translation

-

-

-

-

(335,033)

(335,033)

(2,464)

(337,497)

Loss for the year

-

-

(745,689)

-

-

(745,689)

(634)

(746,323)

Total comprehensive income for the year

-

-

(745,689)

-

(335,033)

(1,080,722)

(3,098)

(1,083,820)










Transactions with owners









Issue of share capital

115,000

460,000

-

-

-

575,000

-

575,000

Share issue costs

-

(20,000)

-

-

-

(20,000)

-

(20,000)

Lapsed share options

-

-

67,617

(67,617)

-

-

-

-

Total transactions with owners

115,000

440,000

67,617

(67,617)

-

555,000

-

555,000

Non- controlling interest share of goodwill

 

-

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

(154)

 

 

(154)










At 30 June 2023

4,348,744

23,009,976

(22,574,502)

210,037

937,960

5,932,215

(22,949)

5,909,266



















 

 

 

 


--------------------------------------------------Equity Interests---------------------------------------

 

 

 


Share Capital

Share Premium

Retained Earnings Account

Share Option Reserve

Foreign Currency

Translation Reserve

Total

Non-controlling interest

Total

 


£

£

£

£

£

£

£

£

 

 

At 1 January 2022

4,176,601

22,254,317

(20,325,577)

453,614

581,143

7,140,098

(17,328)

7,122,770

 










 

Comprehensive Income for the year









 

Foreign currency translation

-

-

-

-

624,211

624,211

-

624,211

 

Loss for the year

-

-

(819,366)

-

-

(819,366)

(1,274)

(820,640)

 

Total comprehensive income for the year

-

-

(819,366)

-

624,211

(195,155)

(1,274)

(196,429)

 










 

Transactions with owners









 

Lapsed share options

-

-

106,840

(106,840)

-

-

-

-

 

Total transactions with owners

-

-

106,840

(106,840)

-

-

-

-

 

Non- controlling interest share of goodwill

 

-

 

-

 

-

 

-

 

-

 

-

 

275

 

275

 










 

At 30 June 2022

4,176,601

22,254,317

(21,038,103)

346,774

1,205,354

6,944,943

(18,327)

6,926,616

 



























 

 

 


--------------------------------------------------Equity Interests---------------------------------------

 

 


Share Capital

Share Premium

Retained Earnings Account

Share Option Reserve

Foreign Currency

Translation Reserve

Total

Non-controlling interest

Total


£

£

£

£

£

£

£

£

At 1 January 2022

4,176,601

22,254,317

(20,325,577)

453,614

581,143

7,140,098

(17,328)

7,122,770










Comprehensive Income for the year









Foreign currency translation

-

-

-

-

691,850

691,850


691,850

Loss for the year

-

-

(1,754,011)

-

-

(1,754,011)

(2,668)

(1,756,679)

Total comprehensive income for the year

-

-

(1,754,011)

-

691,850

(1,062,161)

(2,668)

(1,064,829)










Transactions with owners









Issue of share capital

57,143

342,857

-

-

-

400,000

-

400,000

Share issue costs

-

(20,000)

-

-

-

(20,000)

-

(20,000)

Share options/warrants charge

-

(7,198)

-

7,198

-

-

-

-

Lapse of share options/warrants

-

-

183,158

(183,158)

-

-

-

-

Total transactions with owners

57,143

315,659

183,158

(175,960)

-

380,000

-

380,000

Non- controlling interest share of goodwill

-

-

-

-

-

-

299

299










At 31 December 2022

4,233,744

22,569,976

(21,896,430)

277,654

1,272,993

6,457,937

(19,697)

6,438,240



















 

 

consolidated CASH FLOW STATEMENT

 


Six months

ended

30 June 23

Six months

ended

30 June 22

Year

 ended

31 Dec 22


Unaudited

Unaudited

Audited


£

£

£

Cash flows from operating activities




Operating loss

(738,761)

(819,965)

(1,751,083)

Depreciation

30,542

144,039

324,790

Movement in inventories

-

(20,310)

40,903

Movement in trade and other receivables

(16,825)

185,761

(92,615)

Movement in trade and other payables

358,750

(112,135)

(26,820)

Loss on foreign exchange

(1,977)

(115,391)

(4,614)

Expected credit losses

-

-

242,780

Net cash used in operating activities

(368,271)

(738,001)

(1,266,659)



 

 

 

---


Tax Paid

-

-

(1,319)





 




Cash flows from investing activities




Purchase of property, plant and equipment

-

-

(41,236)

Finance income

-

48

68

Net cash used in investing activities

-

48

(41,168)

 




Cash flows from financing activities




Repayment of lease liabilities

(11,536)

(14,078)

(22,138)

Lease interest

(4,483)

(723)

(1,793)

Other interest paid

(3,079)

-

-

Proceeds on issue of ordinary shares

614,850

-

360,150

Share issue costs

(20,000)

-

(20,000)





Net cash generated from financing activities

575,752

(14,801)

316,219

 




 

 

 


Net increase/(decrease) in cash and cash equivalents

207,481

(752,754)

(992,927)

Cash and cash equivalents at beginning of year

237,300

1,229,801

1,229,801

Exchange losses on cash and cash equivalents

(4,126)

391

426









Cash and cash equivalents at end of year

440,655

477,438

237,300

 








 




NOTES TO THE INTERIM REPORT

 

1.         Financial information and basis of preparation

 

The interim financial statements of Shuka Minerals Plc are unaudited consolidated financial statements for the six months ended 30 June 2023 which have been prepared in accordance with UK adopted international accounting standards. They include unaudited comparatives for the six months ended 30 June 2022 together with audited comparatives for the year ended 31 December 2022.

 

The interim financial statements do not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.  The statutory accounts for the year ended 31 December 2022 have been reported on by the company's auditors and have been filed with the Registrar of Companies.  The report of the auditors contained a qualified opinion and an Emphasis of mater paragraph on Operationalisation of up to 16% Government of Tanzania non-dilutive free carried share interest and the recoverability of VAT in Tanzania. Aside from the Qualification and Emphasis of matter paragraphs above, the auditor's report did not contain any statement under section 498 of the Companies Act 2006.

 

The interim consolidated financial statements for the six months ended 30 June 2023 have been prepared on the basis of accounting policies expected to be adopted for the year ended 31 December 2023. These are anticipated to be consistent with those set out in the Group's latest financial statements for the year ended 31 December 2022. These accounting policies are drawn up in accordance with adopted International Accounting Standards ("IAS") and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

 

 

2.          Loss per share

 

The calculation of the basic and diluted loss per share is based on the following data:

 


30 June 23

30 June 22

31 December 22


£

£

£

Loss after taxation

(746,323)

(820,640)

(1,756,679)





Weighted average number of shares in the period

29,329,474

21,645,575

22,036,964





Basic and diluted loss per share (pence)

(2.54)

(3.79)

(7.97)

 

The loss attributable to equity shareholders and weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of share options and warrants would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.

 

 



 

3.         Dividends

No dividends are proposed for the six months ended 30 June 2022 (six months ended 30 June 2021: £nil, year ended 31 December 2021: £nil).

4.    Property, plant and equipment


Coal Production assets

Plant & machinery

Fixtures & fittings

Motor vehicles

 

Total


£

£

£

£

£

Cost or valuation

As at 1 January 2023

 

5,855,019

 

1,344,491

 

7,554

 

328,480

 

7,535,544

Foreign exchange adjustment

(310.858)

(70,984)

(180)

(16,553)

(398,575)


                

                

                

                

                

At 30 June 2023

5,544,161

1,273,507

7,374

311,927

7,136,969

 

                

                

                

                

                

 






Accumulated depreciation






As at 1 January 2023

173,642

1,301,920

7,445

140,661

1,623,668

Depletion/Charge for the year

3,849

3,760

13

22,920

30,542

Foreign exchange adjustment

(9,227)

(68,846)

(180)

(7,292)

(85,545)


                

                

                

                

                

At 30 June 2023

168,264

1,236,834

7,278

156,289

1,568,665

 

                

                

                

                

                

Net book value






As at 30 June 2023

5,375,897

36,673

96

155,638

5,568,304


                

                

                

                

                

 

 


Coal Production assets

Plant & machinery

Fixtures & fittings

Motor vehicles

 

Total


£

£

£

£

£

Cost or valuation

As at 1 January 2022

5,230,294

1,201,831

7,191

193,620

6,632,936

Foreign exchange adjustment

574,580

131,210

334

19,437

725,561


                

                

                

                

                

At 30 June 2022

5,804,874

1,333,041

7,525

213,057

7,358,497

 

                

                

                

                

                

 






Accumulated depreciation






As at 1 January 2022

114,026

925,484

7,045

134,460

1,181,015

Depletion/Charge for the year

3,587

132,234

18

8,200

144,039

Foreign exchange adjustment

12,518

100,880

334

13,002

126,734


                

                

                

                

                

At 30 June 2022

130,131

1,158,598

7,397

155,662

1,451,788

 

                

                

                

                

                

Net book value






As at 30 June 2022

5,674,743

174,443

128

57,395

5,906,709


                

                

                

                

                

 

 

 

 

 

 






 

4.         Property, plant and equipment (continued)

 

 

 


Coal Production assets

Plant & machinery

Fixtures & fittings

Motor vehicles

 

Total


£

£

£

£

£

Cost or valuation

As at 1 January 2022

5,230,294

1,201,831

7,191

193,620

6,632,936

Additions

-

-

-

141,141

141,141

Adjustments

-

-

-

(27,414)

(27,414)

Foreign exchange adjustment

624,725

142,660

363

21,133

788,881







At 31 December 2022

5,855,019

1,344,491

7,554

328,480

7,535,544

 






 






Accumulated depreciation






As at 1 January 2022

114,026

925,484

7,045

134,460

1,181,015

Depletion/Charge for the year

46,002

259,777

37

18,974

324,790

Adjustments

-

-

-

(27,414)

(27,414)

Foreign exchange adjustment

13,614

116,659

363

14,641

145,277







At 31 December 2022

173,642

1,301,920

7,445

140,661

1,623,668

 






Net book value






As at 31 December 2022

5,681,377

42,571

109

187,819

5,911,876

 












 

 

5.    Intangible assets

 

 

 



 

Mining Licences

 

Total

 



£

£

Cost or valuation

As at 1 January 2023



 

1,667,530

 

1,667,530

Foreign exchange adjustment



(88,530)

(88,530)

 



                

                

At 30 June 2023



1,579,000

1,579,000

 



                

                

 





 





 





Accumulated amortisation and impairment



 

 

 

 

As at 1 January 2023



1,314,903

1,314,903

Foreign exchange adjustment



(69,810)

(69,810)

 



               

               

At 30 June 2023



1,245,093

1,245,093

 



                

                

Net book value





As at 30 June 2023



333,907

333,907




                

                






 

 

 

 

5.    Intangible assets (continued)

 

 


 

Mining Licences

 

Total

 


£

£

Cost or valuation

As at 1 January 2022


 

1,489,604

 

1,489,604

Foreign exchange adjustment


163,644

163,644



                

                

At 30 June 2022


1,653,248

1,653,248

 


                

                

 




Accumulated amortisation and impairment




As at 1 January 2022


1,174,602

1,174,602

Foreign exchange adjustment


129,039

129,039



                

                

At 30 June 2022


1,303,641

1,303,641

 


                

                

Net book value




As at 30 June 2022


349,607

349,607



                

                









 

 

 


 

Mining Licences

 

Total

 


£

£

Cost or valuation

As at 1 January 2022


 

1,489,604

 

1,489,604

Foreign exchange adjustment


177,926

177,926





At 31 December 2022


1,667,530

1,667,530

 




 




Accumulated amortisation and impairment




As at 1 January 2022


1,174,602

1,174,602

Foreign exchange adjustment


140,301

140,301





At 31 December 2022


1,314,903

1,314,903

 




Net book value




As at 31 December 2022


352,627

352,627








 




 






6.    Share capital

 

 


No

£

No

£

£


Ordinary shares of 1p each

Ordinary shares of 0.02p/1p each

Deferred shares of 0.001p each

Deferred shares of 0.001p each

Total share capital

Issued and fully paid






At 1 January 2022

21,645,575

216,457

396,014,437,346

3,960,144

4,176,601







On 7 December 2022 the company issued 5,714,286 Ordinary 1p shares at 7p each

5,714,286

57,143

-

-

57,143







As at 31 December 2022

27,359,861

273,600

396,014,437,346

3,960,144

4,233,744







 

 


No

£

No

£

£


Ordinary shares of 1p each

Ordinary shares of 0.02p/1p each

Deferred shares of 0.001p each

Deferred shares of 0.001p each

Total share capital

Issued and fully paid






At 1 January 2022 and 30 June 2022

21,645,575

216,457

396,014,437,346

3,960,144

4,176,601













 

 


No

£

No

£

£


Ordinary shares of 1p each

Ordinary shares of 0.02p/1p each

Deferred shares of 0.001p each

Deferred shares of 0.001p each

Total share capital

Issued and fully paid






At 1 January 2023

27,359,861

273,600

396,014,437,346

3,960,144

4,233,744







On 31 May 2023 the company issued 11,500.000 Ordinary 1p shares at 5p each

11,500,000

115,000

-

-

115,000







As at 31 December 2022

38,859,861

388,600

396,014,437,346

3,960,144

4,348,744







 

 

 

 

 

 

 

7.    Distribution of interim report to shareholders

 

The interim report will be available for inspection by the public at the registered office of the Company during normal business hours on any weekday and from the Company's website http://www.shukaminerals.com/. Further copies are available on request.

 

 

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