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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Arkle Resources Plc | AQSE:ARK.GB | Aquis Stock Exchange | Ordinary Share | IE00B2357X72 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.225 | 0.15 | 0.30 | 0.225 | 0.225 | 0.225 | 0.00 | 07:02:02 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Dec 2022 to Dec 2024
TIDMARK
RNS Number : 9532D
Arkle Resources PLC
27 June 2023
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
27 June 2023
Arkle Resources PLC
("Arkle", the "Group" or the "Company")
Final Results for the Year Ended 31 December 2022
Arkle Resources PLC (LON: ARK), the Irish gold and zinc exploration and development company, is pleased to announce its audited results for the year ending 31 December 2022.
Chairman's Statement
Despite the market for junior exploration companies being friendless Arkle had a good exploration year. We discovered lithium bearing rocks on our Wicklow / Wexford ground and drilling by our partners, Group Eleven, on our Stonepark zinc licences identified a significant geological fault, while we expanded our overseas search for new projects in Battery Metals and Platinum Group Metals (PGMs) with the grant of three small licences in Zimbabwe.
During the period we raised GBP200,000 mainly from directors and associates. In recent months the Arkle share price has been volatile mainly due to one investor who purchased over 25 million shares equal to 6.8% of the issued equity only to sell off the block in large chunks a short time later.
Zinc
The main focus in the period under review was the Stonepark zinc project where seven holes were drilled. The drilling discovered a major fault zone in the south of the block of six licences and identified a significant and extensive zinc target.
Ireland is highly prospective for zinc. Over the past 60 years a number of world class large zinc mines have been brought into production and it is believed that more deposits remain to be discovered.
In the Stonepark area of Limerick, Arkle is in a joint venture with Group Eleven Resources Corp., a listed Canadian junior, where Arkle owns 23.44% and Group Eleven, 76.56%. Earlier drilling discovered an inferred resource of 5.1 million tons at a combined 11.3% zinc / lead. Though zinc / lead metal prices have come back from highs of over $4,000 a tonne to the current $2,000 plus, the value the ground is over $200 per ton of ore.
The licence block contains six licences covering 184sq km. In 2022 seven holes were drilled, including four early stage exploration holes which identified new mineralised trends. Three additional holes were targeted on previously identified areas, Carrickittle West, Carrickittle North and Stonepark West. A new major fault structure was identified at Carrickittle West. This is now a high priority zinc target at depth. Arkle has indicated to Group Eleven that it will contribute its share to the drilling on this block.
Stonepark remains a central asset in the Arkle portfolio. It lies adjacent to the massive Pallas Green zinc discovery estimated to contain over 40 million tons and also adjacent to the ongoing discoveries at Carrickittle made by our partner Group Eleven. Zinc is a critical metal in economic development. We believe the deposits in Limerick will be developed in the future.
Gold
Turning to our five licences at Wexford / Wicklow, covering 2,135 km, where we have been exploring the ground looking for commercial grades and quantities of gold. Significant sampling, trenching and drilling have repeatedly identified high grade veins. Getting continuity is the issue. The principal gold target is the Tombreen area now outlined as 1.5km long and 750 metres wide. Grades in this area have been up to 50 g/t.
Drilling in Wicklow is complicated. The gold is contained in veins and is "nuggety". Drilling can miss the veins and / or hit the veins and miss the nuggets. The answer is more drilling. Ideally Arkle would find a partner to take detailed exploration to the next level.
In 2016 Arkle discovered gold on a block of licences in Donegal. The block was licenced because the geology was similar to that of the large Dalradian gold deposit in adjacent Tyrone and it was believed, later confirmed, that there is a gold bearing trend from Northwest Ireland, through Ulster into Scotland. Drilling found exciting results. Some high grades but the gold is nuggety making analysis difficult.
The focus is on the Meenaragh prospect where drill ready targets have been identified in good grade gold bearing veins. Delays in renewing our licence application, meant the loss of two drilling seasons.
Lithium
Though our focus has been on zinc and gold, we are alive to other opportunities on our licence holdings. The rapid growth in the demand for batteries containing lithium has stretched the supply. Rising prices mean that previously uneconomic hard rock deposits of lithium containing rocks become commercial. It had long been known that the ground in Wexford / Wicklow area contained pegmatites which can contain lithium.
Companies immediately to the west of our ground have been actively searching for lithium for some time including Ganfeng, the world's leader in lithium. Arkle undertook a Proof of Concept sampling programme in the Southwest of our licence block. We were very pleased to discover pegmatites in a number of locations. Lithium was present though grades were not high.
A short follow up programme on a different part of the block found indicator minerals but no lithium. The data is being reviewed to decide on the next steps while we have applied for additional ground. The programme is at an early stage.
Overseas Interests
The lack of investor interest in Irish exploration led the board to look at overseas projects particularly in Battery Metals and PGMs and initially in sub-Saharan Africa where your directors have experience. We obtained ground in Zimbabwe, a major lithium producer but have faced delays in expanding the holding.
We reviewed a number of investment opportunities in the past year and in particular we are pursuing grassroot opportunities in lithium.
John Teeling
Chairman
26 June 2023
Enquiries:
Arkle Resources PLC John Teeling, Chairman +353 (0) 1 833 2833 Jim Finn, Finance Director +353 (0) 1 833 2833 SP Angel Corporate Finance LLP Nominated Adviser & Joint Broker Matthew Johnson/Adam Cowl +44 (0) 203 470 0470 First Equity Limited Joint Broker Jason Robertson +44 (0) 207 374 2212 BlytheRay Megan Ray +44 (0) 207 138 3204 Teneo Luke Hogg
ARKLE RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEARED 31 DECEMBER 2022
Hot Features
Premium
2022 2021
EUR EUR
Administrative expenses (303,195) (320,266)
- -
---------- ----------
Loss from operations (303,195) (320,266)
Profit/(loss) due to fair value volatility of warrants 3,981 746,526
---------- ----------
Profit/(loss) before tax (299,214) 426,260
Tax expense - -
---------- ----------
Profit/(loss) for the year (299,214) 426,260
Total comprehensive income (299,214) 426,260
========== ==========
Earnings per share attributable to the ordinary equity holders of the parent
cents cents
Profit/(Loss) per share - Basic & Diluted (0.09) 0.14
========== ==========
ARKLE RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
2022 2021
EUR EUR
Assets
Non-current assets
Intangible assets 3,991,023 3,831,080
------------ ------------
Current assets
Other receivables 6,928 32,635
Cash and cash equivalents 199,990 79,678
------------ ------------
206,918 112,313
------------ ------------
Total assets 4,197,941 3,943,393
------------ ------------
Liabilities
Current liabilities
Trade and other liabilities (325,799) (233,872)
Warrants (155,690) (159,672)
------------ ------------
Total liabilities (481,489) (393,544)
------------ ------------
Net assets 3,716,452 3,549,849
============ ============
Equity
Called-up Share capital - Deferred 992,337 992,337
Called-up Share capital - Ordinary 988,456 764,956
Share premium reserve 6,922,562 6,680,245
Share based payments reserve 156,494 156,494
Retained deficit (5,343,397) (5,044,183)
------------ ------------
Total Equity 3,716,452 3,549,849
============ ============
ARKLE RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEARED 31 DECEMBER 2022
Called up Share
Capital Called up Share Share Share Based Payment Retained
Deferred Capital Ordinary Premium Reserve Deficit Total
EUR EUR EUR EUR EUR EUR
At 1 January 2021 992,337 742,612 6,605,681 127,199 (5470,443) 2,997,386
Shares issued - 22,344 74,564 - - 96,908
Share-based payment - - - 29,295 - 29,295
Profit for the year - - - - 426,260 426,260
---------------- ------------------ ---------- -------------------- ------------ ----------
At 31 December 2021 992,337 764,956 6,680,245 156,494 (5,044,183) 3,549,849
---------------- ------------------ ---------- -------------------- ------------ ----------
Shares issued - 223,500 242,317 465,817
Share-based payment - - - - - -
Loss for the year (299,214) (299,214)
---------------- ------------------ ---------- -------------------- ------------ ----------
At 31 December 2022 992,337 988,456 6,922,562 156,494 (5,343,397) 3,716,452
================ ================== ========== ==================== ============ ==========
ARKLE RESOURCES PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE FINANCIAL YEARED 31 DECEMBER 2022
2022 2021
EUR EUR
Cash flows from operating activities
Profit / (loss) for the year (299,214) 426,260
Adjustments for
Share based payments charge - 29,295
Fair Value movement of warrants (3,981) (746,526)
Foreign exchange 12,250 (25,527)
---------- ----------
(290,945) (316,498)
Movements in working capital:
Decrease/(Increase) in trade and other receivables 25,707 (10,712)
Increase in trade and other payables 91,926 57,208
---------- ----------
Net cash used in operating activities (173,312) (270,002)
---------- ----------
Cash flows from investing activities
Payments for exploration and evaluation (159,943) (457,592)
---------- ----------
Net cash used in investing activities (159,943) (457,592)
---------- ----------
Cash flows from financing activities
Proceeds from issue of equity shares 465,817 96,908
Share issue expenses - -
---------- ----------
Net cash generated from financing activities 465,817 96,908
---------- ----------
Net cash increase/(decrease) in cash and cash equivalents 132,562 (630,686)
Cash and cash equivalents at the beginning of year 79,678 684,837
Exchange gains on cash and cash equivalents (12,250) 25,527
---------- ----------
Cash and cash equivalents at the end of the year 199,990 79,678
========== ==========
Notes:
1. Accounting Policies
There were no changes in accounting policies from those used to prepare the Group's Annual Report for financial year ended 31 December 2021. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and in accordance with the Companies Act 2014.
2. Earnings per Share
Basic earnings per share is computed by dividing the loss after taxation for the year attributable to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the profit or loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.
The following table sets forth the computation for basic and diluted earnings per share (EPS):
2022 2021
EUR EUR
Numerator
For basic and diluted EPS Loss after taxation (299,214) 426,260
================ ===============
Denominator No. No.
For basic and diluted EPS 343,481,056 305,517,186
================ ===============
Basic EPS (0.09c) 0.14c
Diluted EPS (0.09c) 0.14c
================ ===============
Basic and diluted loss per share are the same as the effect of the outstanding share options
and warrants is anti-dilutive.
3. Going Concern
The Group incurred a loss for the financial year of EUR299,214 (2021: profit EUR426,260) and had net current liabilities of EUR274,571 (2021: net current liabilities EUR281,231) at the statement of financial position date leading to concern about the Company and Group's ability to continue as a going concern.
The Group had a cash balance of EUR199,990 (2021: EUR79,678) at the statement of financial position date.
Included in current liabilities is an amount of EUR217,500 (2021: EUR172,500) owed to key management personnel in respect of remuneration due at the balance sheet date. Key management have confirmed that they will not seek settlement of these amounts in cash for a period of at least one year after the date of approval of the financial statements or until the Group has generated sufficient funds from its operations after paying its third-party creditors.
The directors have prepared cashflow projections for a period of at least twelve months from the date of approval of these financial statements. As the Group and the Company are not revenue or cash generating they rely on raising capital from the public market. The cash flow projections prepared by the Group and Company indicate that additional finances will be required to meet the obligations of the Group and Company for a period of at least twelve months from the date of approval of these financial statements. The directors are confident that additional capital can be raised as required. The Group raised GBP397,000 during the year from warrant exercises and a placing.
As in previous years the Directors have given careful consideration to the appropriateness of the going concern basis in the preparation of the financial statements and believe the going concern basis is appropriate for these financial statements. The financial statements do not include any adjustment to the carrying amount, or classification of assets and liabilities, if the Company or Group was unable to continue as a going concern.
4. Intangible Assets
2022 2021
EUR EUR
Exploration and evaluation assets:
Cost:
At 1 January 3,831,080 3,373,488
Additions 159,943 457,592
Impairment - -
------------ ----------
At 31 December 3,991,023 3,831,080
------------ ----------
Carrying amount:
At 31 December 3,991,023 3,831,080
============ ==========
In 2007 the Group entered into an agreement with Teck Cominco which gave Teck Cominco the option to earn a 75% interest in a number of other licences held by the Group. Teck Cominco had to spend CAD$3m to earn the interest. During 2012 the relevant licences were transferred to a new company, TILZ Minerals Limited, which at 31 December 2022 was owned 23.44% (2021: 23.44%) by Limerick Zinc Limited (subsidiary of Arkle Resources plc) and 76.56% (2021: 76.56%) by Group Eleven Resources Corp (third party).
On 13 September 2017 the board of Arkle Resources plc were informed that Group Eleven Resources Corp. a private company, has acquired the 76.56% interest held by Teck Ireland in TILZ Minerals. Arkle Resources plc owns the remaining 23.44%.
The Group's share of expenditure on the licences continues to be capitalised as an exploration and evaluation asset. The Group is subject to cash calls from Group Eleven Resources Corp. in respect of the financing of the ongoing exploration and evaluation of these licences. In the event that the Group decides not to meet these cash calls its interest in TILZ Minerals Limited may be diluted accordingly.
On 23 June 2022 the Company announced it had been granted three licences covering 163 hectres to prospect for Lithium in the Insiza District of the Matabeleland South Province of Zimbabwe. The Directors believe that these licences, which cover a small area, represent a low-cost entry into one of the largest lithium producing countries in the world.
The realisation of the intangible assets is dependent on the discovery and successful development of economic reserves which is subject to a number of risks as outlined below:
- uncertainties over development and operational risks;
- compliance with licence obligations;
-ability to raise finance to develop assets;
- liquidity risks; and
- going concern risks.
Should this prove unsuccessful the carrying value included in the statement of financial position would be written off to the statement of comprehensive income.
The directors are aware that by its nature there is an inherent uncertainty in such exploration and evaluation expenditure as to the value of the asset. Having reviewed the carrying value of exploration and evaluation of assets at 31 December 2022 the directors are satisfied that the value of the intangible asset is not less than carrying value.
Segmental Analysis
2022 2021
EUR EUR
Limerick 1,705,480 1,600,424
Rest of Ireland 2,273,502 2,230,656
Zimbabwe 12,041 -
---------- ----------
3,991,023 3,831,080
========== ==========
5. Trade payables
2022 2021
EUR EUR
Current assets:
Trade and other payables 96,299 42,872
Accruals 229,500 191,000
-------- --------
325,799 233,872
======== ========
It is the Group's normal practice to agree terms of transactions, including payment terms, with suppliers and provided suppliers perform in accordance with the agreed terms, it is the Group's policy that payment is made between 30 - 45 days.
Included in accruals are amounts due for directors' remuneration of EUR217,500 (2021: EUR172,500) accrued but not paid at year end.
The carrying value of trade and other payables approximates to their fair value.
6. Share Capital and Share Premium
2022 2021
Authorised EUR EUR
1,000,000,000 Ordinary shares of EUR0.0025 each 2,500,000 2,500,000
500,000,000 Deferred shares of EUR0.0075 each 3,750,000 3,750,000
---------- ----------
6,250,000 6,250,000
========== ==========
Deferred Shares - nominal value of EUR0.0075
Number Share Share Premium
Capital EUR
EUR
At 1 January 2021 and 2022 132,311,591 992,337 -
------------- -------------- --------------
At 31 December 2021 and 2022 132,311,591 992,337 -
============= ============== ==============
Ordinary Shares - nominal value of EUR0.0025
Allotted, called-up and fully paid:
Number Share Capital Share Premium
EUR EUR
At 1 January 2021 297,044,926 742,612 6,605,681
Issued during the year 8,937,500 22,344 74,564
------------- -------------- --------------
At 31 December 2021 305,982,426 764,956 6,680,245
Issued during the year 89,400,000 223,500 242,317
------------- -------------- --------------
At 31 December 2022 395,382,426 988,456 6,922,562
============= ============== ==============
Deferred share capital
The deferred share reserve comprises of the value of the deferred shares that arose when the company divided the ordinary shares via special resolution on 22 April 2020 the shares into 500,000,000 deferred shares of 0.75 cent each and 500,000,000 ordinary shares of 0.25 cent each.
Called up ordinary share capital
The called up ordinary share capital reserve comprises of the nominal value of the issued share capital of the company.
Share premium
The share premium reserve comprises of a premium arising on the issue of shares. Share issue expenses are deducted against the share premium reserve when incurred.
Movement in shares
On 22 February 2022, a total of 30,080,000 shares were issued on the exercise of 30,080,000 warrants at a price of 0.5p per share to provide additional working capital and future development costs.
On 28 April 2022, a total of 9,320,000 shares were issued on the exercise of 9,320,000 warrants at a price of 0.5p per share to provide additional working capital and future development costs.
On 21 November 2022, a total of 50,000,000 shares were issued at a price of 0.4p per share to provide additional working capital and fund development costs. For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 0.5p per share until 24 November 2024.
7. Share Based Payments
Equity-settled share-based payments are measured at fair value at the date of grant.
The Group plan provides for a grant price equal to the average quoted market price of the ordinary shares on the date of grant.
Share Options
31 December 2022 31 December 2021
Options Weighted average exercise Options Weighted average exercise
price in pence price in pence
Outstanding at beginning of
year 16,100,000 1.32 13,100,000 1.22
Granted during the year - - 3,000,000 1.80
Expired during the year - - - -
----------- ----------------------------- ----------- -----------------------------
Outstanding at end of year 16,100,000 1.32 16,100,000 1.32
=========== ============================= =========== =============================
Exercisable at end of year 16,100,000 1.32 16,100,000 1.32
=========== ============================= =========== =============================
On 9 March 2021 a total of 3,000,000 options with an exercise price of 1.8p per option were granted to the directors with a fair value of EUR29,295. The fair value was calculated using the Black-Scholes valuation model.
Expected volatility was determined by management based on their cumulative experience of the movement in share prices.
The terms of the options granted do not contain any market conditions within the meaning of IFRS 2.
8. Warrants
2022 2021
EUR EUR
Fair Value
At 1 January 159,672 906,198
FV of warrants issued during the year at grant date 155,690 -
FV of warrants exercised during the year (72,192) (68,010)
Movement in fair value (87,480) (678,516)
--------- ----------
At 31 December 155,690 159,672
========= ==========
2022 2021
EUR EUR
Profit/(Loss) due to Fair Value Volatility of Warrants
Fair Value at 1 January 159,672 906,198
Less Fair Value at 31 December 155,690 159,672
Movement for the year 3,981 746,526
======== ========
31 December 2022 31 December 2021
Number of Warrants Weighted average Number of Warrants Weighted average
exercise price in pence exercise price in pence
Outstanding at
beginning of year 110,462,500 0.90 119,400,000 0.90
Granted during the year 50,000,000 0.50 - -
Expired during the year (71,062,500) 0.90 - -
Exercised during the
year (39,400,000) 0.50 (8,937,500) 0.50
------------------- ------------------------ ------------------- ------------------------
Outstanding and
exercisable at the end
of the year 50,000,000 0.50 110,462,500 0.90
=================== ======================== =================== ========================
On 22 February 2022 a total of 30,080,000 warrants and on 28 April 2022 a total of 9,320,000 warrants with an exercise price of 0.5p per warrant were exercised with a fair value of EUR72,192. The movement in fair value of EUR72,192 was included to the Consolidated Statement of Comprehensive Income.
The balance of 2,000,000 warrants expired on 22 April 2022. On 7 September 2022 a total of 69,062,500 warrants with an exercise price of 1.2p per warrant expired. The movement in fair value of EUR87,480 was included to the Consolidated Statement of Comprehensive Income.
On 21 November, a total of 50,000,000 warrants with an exercise price of 0.5p per warrant were granted as part of the placing. The fair value was expensed to the Consolidated Statement of Comprehensive Income. The fair value was calculated using the Black-Scholes valuation model.
9. Other Reserves
Share Based Payment Reserve
EUR
Balance at 1 January 2021 127,199
Granted during the year 29,295
----------------------------
Balance at 31 December 2021 156,494
Granted during the year -
----------------------------
Balance at 31 December 2022 156,494
============================
Share Based Payment Reserve
The share based payment reserve arises on the grant of share options under the share option plan. Share options expired are reallocated from the share based payment reserve to retained deficit at their grant date fair value .
10. Retained Deficit
2022 2021
GBP GBP
Opening Balance (5,044,183) (5,470,443)
Profit/(Loss) for the year (299,214) 426,260
------------ ------------
Closing Balance (5,343,397) (5,044,183)
============ ============
Retained Deficit
Retained deficit comprises of accumulated profits and losses incurred in the current and prior years.
11. Post Balance Sheet Events
There were no material post balance sheet events affecting the Group.
12. Annual General Meeting
The Company's Annual General Meeting will be held at held at the Hotel Riu Plaza The Gresham, 23 O'Connell Street Upper, North City Dublin, D01 C3W7, Ireland on 27 July 2023 at 10.00am.
General Information
The financial information set out above does not constitute the Company's financial statements for the year ended 31 December 2022. The financial information for 2021 is derived from the financial statements for 2021 which have been delivered to the Companies Registration Office. The auditors have reported on 2021 statements; their report was unqualified. The financial statements for 2022 will be delivered to the Companies Registration Office.
A copy of the Company's Annual Report and Accounts for 2022 will be mailed to all shareholders shortly and will also be available for collection from the Company's registered office, 162 Clontarf Road, Dublin 3, Ireland. The annual report will shortly be available for viewing at Arkle's website at www.arkleresources.com
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June 27, 2023 02:00 ET (06:00 GMT)
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