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KRS.GB Keras Resources Plc

3.05
0.00 (0.00%)
17 May 2024 - Closed
Realtime Data
Share Name Share Symbol Market Type Share ISIN Share Description
Keras Resources Plc AQSE:KRS.GB Aquis Stock Exchange Ordinary Share GB00BMY2T534
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 3.05 2.80 3.30 3.05 3.05 3.05 0.00 06:50:54
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Keras Resources PLC Interim Results (0668O)

29/09/2023 7:00am

UK Regulatory


Keras Resources (AQSE:KRS.GB)
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TIDMKRS

RNS Number : 0668O

Keras Resources PLC

29 September 2023

29 September 2023

Keras Resources plc ('Keras' or the 'Company')

Interim Results

Keras Resources plc (AIM: KRS) announces its half year results for the six months ending 30 June 2023.

Overview

-- Loss reduced to GBP255,000 and revenue increased to GBP397,000 compared to the six-month period ended 30 June 2022 of GBP467,000 and GBP212,000 respectively;

   --    Sales of 2,196 tons compared to the six-month period ended 30 June of 2022 of 1,896 tons; 
   --    2023 mining season has commenced with processing at the Spanish Fork plant ongoing; and 

-- Significant interest from fertiliser blenders who have now successfully completed testwork on the high-grade Diamond Creek rock phosphate.

Graham Stacey, Keras Chief Executive Officer, commented, " It was a tough start to the year with record snowfall and an unpredictably long Utah winter, exacerbated by a late spring and widespread heavy rains and flooding throughout the Central California Valley where the majority of our customers are located. That said we believe we are in a strong position to now gear-up on the back of the marketing drive over the past year, which has resulted in significant interest and positive testwork from third party fertiliser blenders and producers. I think it is important to note that creating markets for our product, which in essence is convincing a farm to change its modus operandi, takes time but once that change is made that market has longevity. As mentioned in the Chairman's review we have had significant positive results in the testwork undertaken by third party organic fertiliser companies eager to use our rock phosphate in their blends and look forward to updating our shareholders in the near future about potential long-term offtakes or joint ventures. To that end, we will provide guidance towards the end of the fourth quarter for production and sales figures for 2024."

The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this Announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 
 Graham Stacey                     Keras Resources plc        graham@kerasplc.com 
 Ewan Leggat / Charlie Bouverat    SP Angel Corporate         +44 (0) 20 3470 
  Nominated Adviser & Joint         Finance LLP                0470 
  Broker 
 
  Joint Broker                      Shard Capital Partners     +44 (0) 207 186 
  Damon Heath / Erik Woolgar        LLP                        9900 
 

CHAIRMAN'S REVIEW

FOR THE SIX MONTHSED 30 JUNE 2023

I am pleased to provide an update on our progress since the last report and to set out our outlook for the business going forward.

2023 has been a transformative year for Keras with the unbundling of our investment interest in the Nayéga manganese mine in northern Togo and the focus on becoming the pre-eminent high grade organic phosphate producer in North America.

The Diamond Creek phosphate mine

The Diamond Creek phosphate mine, which is believed to be one of the highest grade organic rock phosphate deposits in the US, comprises an opencast operation located on an 840 acre Federal Lease located approximately 80km south-east of Salt Lake City, Utah. Our focus going forward is to build the operation into the premier high-grade organic phosphate producer in the US.

Our target market is the sustainable, organic agriculture sector and we are strong advocates for the benefits of enhancing soil health and reducing the impact that synthetic fertilisers have on water resources. Our organic phosphate fertilizer products help farmers realise better crop growth without sacrificing yields, and reduces the soil degradation seen when farmers use chemically manufactured fertilisers, while at the same time reducing the carbon footprint associated with growing their crops.

Sales for the first six months of 2023 were 2,192 tons sold, compared to the first six months of 2022 of 1,896 tons. Year to date sales total 3,467 tons. The lower than expected first half sales volume were a result of an extended Utah winter and flooding throughout the Central California Valley which impacted several key clients. High producer price inflation in the US also impacted on buying patterns of organic fertilizer feedstocks as aggregators and blenders preferred to preserve cash rather than build fertilizer stocks as cost pressures impacted their own operations.

Mining has commenced, later than initially planned as a result of both cash flow and inventory management which is a priority. Given our existing saleable inventory, mining for the 2023 season, between now and end-November will be between 2,500 and 4,000 tons dependent on offtake commitments from customers. Although sales for the first half of the year were below expectations, we are confident that these will pick up in the fourth quarter as seen during the same period in 2022. In addition to our own sales of dry crushed and milled product we have now seen a significant interest in organic fertiliser blenders who have now undertaken testwork on our high-grade phosphate rock to be incorporated in their blends. The results of this testwork have been positive and we look forward to updating shareholders once commercial terms have been agreed. As a company we believe that longer term offtakes with fertiliser blenders will form a significant proportion of our sales going forward.

Togo

In May 2023 the Company announced an agreement with the Republic of Togo (the "State") on a way forward for the Nayéga Manganese project ("Nayéga") in Northern Togo. Keras and the State agreed that Nayéga is a Togolese strategic asset and the exploitation permit will be awarded to Société Togolaise de Manganèse, a Togolese incorporated company 100% owned by the State ("STM") and Keras will no longer pursue the Nayéga exploitation permit.

The State paid Keras a cash consideration of US$1.7m (one million seven hundred thousand United States dollars) on 17 July 2023 and thereafter:

-- Keras will be paid an advisory fee of 1.5% (one and a half percent) of gross revenue generated from the Nayéga mine for the provision of advisory services for 3 (three) years; and

-- Keras will be paid 6.0% (six percent) of gross revenue generated from the Nayéga mine for the provision of brokerage services for the lesser of 3.5 (three and a half) years or 900,000 (nine hundred thousand) tonnes of beneficiated manganese ore produced and sold from Nayéga.

Since the agreement was signed in May, the Company and State have had positive discussions regarding the development of Nayéga. This process continues and the Company believes that the continued constructive dialogue between the Company and the State will stand the project in good stead, and we look forward to updating shareholders on the way forward.

Financial review

The results for the 6 months ended 30 June 2023 show a loss of GBP255,000 compared to the six-month period ended 30 June 2022 of GBP467,000. The reduced loss was due to increased revenue of GBP397,00 (2022: GBP212,000) and a profit on sale of intellectual property of GBP184,000.

On 13 April 2023 Chris Grosso from Kershner Grosso & Co. ('Kershner Grosso'), a Saratoga Springs, New York State based Investment Advisor acquired First Uranium Resources Ltd's (CSE: URNM) (KMMIF:OTC) ('First Uranium') entire holding of 8,000,000 ordinary shares of 1 pence each in the Company ("Ordinary Shares") representing 10% of the Company's issued share capital. Subsequent to his initial investment he has increased his holding to 15.64%. The Keras Board is very pleased to have Kershner Grosso on board as a cornerstone shareholder. Kershner Grosso's investment philosophy is very much aligned with Keras's growth strategy in the US and the relationship is expected to provide access to new markets and opportunities throughout North America.

On 4 July 2023 the Company announced receipt of the US$1.7m cash consideration from the Republic of Togo and made cash payments of US$800,000, being part of the consideration for the acquisition of Falcon Isle Resources LLC Falcon Isle Holdings LLC ("Falcon Isle"), and US$240,000, being part of a severance payment to the former CEO of Falcon Isle which totalled US$340,000.

Outlook

Although it has been a tough first half of the year, the Company remains very positive about both the future of Diamond Creek and the fertiliser market macro-economic conditions that underpin its future. W e are mining an essential resource that can create value, be part of the greener economy and contribute to a more sustainable future. As a mining company we remain ever conscious of our obligations and commitments in line with best environmental, social and governance ("ESG") practice and will continue to take the initiative within this area.

I would like to thank our shareholders for their ongoing support and I look forward updating all stakeholders as we continue to build Keras and Diamond Creek into the premier organic phosphate producer in the US.

Russell Lamming

Chairman

 
 
                                                                   CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
                                                                                      FOR THE SIX MONTHSED 30 JUNE 2023 
                                                                     6 months             6 months           12 months 
                                                                 to 30-Jun-23         to 30-Jun-22        to 31-Dec-22 
                                                                  (unaudited)          (unaudited)           (audited) 
                                                                      GBP'000              GBP'000             GBP'000 
 
 Revenue                                                                  397                  212                 994 
 Cost of 
  production                                                             (44)                (104)               (263) 
                                                               --------------       --------------       ------------- 
 Gross profit/loss                                                        353                  108                 731 
 Profit on sale of intellectual                                           184                    -                   - 
  property relating to Togo 
 Administrative expenses                                                (686)                (550)             (1,524) 
 Loss from operating 
  activities                                                            (149)                (442)               (793) 
 Finance income                                                             -                    -                   - 
 Finance 
  costs                                                                 (106)                    -               (204) 
 Net finance costs                                                      (106)                 (25)               (204) 
 Loss before taxation                                                   (255)                (467)               (997) 
 Taxation                                                                   -                    -                   - 
                                                               --------------       --------------       ------------- 
 Loss for the period                                                    (255)                (467)               (997) 
                                                               --------------       --------------       ------------- 
 
 Other comprehensive income - 
  items that may be subsequently 
  reclassified to profit or loss 
 Exchange translation on foreign 
  operations                                                               29                   53                 150 
 Total comprehensive loss for 
  the period                                                            (226)                (414)               (847) 
                                                               ==============       ==============       ============= 
 
 Loss attributable 
  to: 
 Owners of the Company                                                  (255)                (470)             (1,076) 
 Non-controlling 
  interests                                                                 -                    3                  79 
                                                               --------------       --------------       ------------- 
 Loss for the period                                                    (255)                (467)               (997) 
                                                               ==============       ==============       ============= 
 
 Total comprehensive loss attributable 
  to: 
 Owners of the Company                                                  (226)                (414)               (907) 
 Non-controlling 
  interests                                                                 -                    -                  60 
                                                               --------------       --------------       ------------- 
 Total comprehensive loss 
  for the period                                                        (226)                (414)               (847) 
                                                               ==============       ==============       ============= 
 
 Earnings per share 
 Basic and diluted loss 
  per share (pence)                                                    (0.28)              (0.015)             (1.148) 
                                                               ==============       ==============       ============= 
 
 

The notes are an integral part of this condensed consolidated interim financial report.

 
 
                              CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
                                                AS AT 30 JUNE 2023 
                                                          30-Jun-23            30-Jun-22               31-Dec-22 
                                                        (unaudited)          (unaudited)               (audited) 
                                         Notes              GBP'000              GBP'000                 GBP'000 
 Assets 
 Non-current assets 
 Intangible assets                           7                3,418                4,875                   3,558 
 Property, plant and 
  equipment                                  8                  372                  591                     381 
 Right of use asset                          9                   59                  185                     121 
                                                     -------------- 
                                                              3,849                5,651                   4,060 
                                                     --------------       --------------            ------------ 
 
 Current assets 
 Inventory                                  10                  660                  484                     668 
 Trade and other receivables                11                1,612                  115                     191 
 Assets held for sale                                             -                    -                   1,558 
 Cash and cash equivalents                                       39                  440                     207 
                                                     --------------       --------------            ------------ 
                                                              2,311                1,039                   2,624 
                                                     --------------       --------------            ------------ 
 
 Total assets                                                 6,160                6,690                   6,684 
                                                     ==============       ==============            ============ 
 
 Equity 
 Equity attributable 
  to owners of the Company 
 Share capital                              12                  797                  798                     797 
 Share premium                              12                5,838                5,838                   5,838 
 Other reserves                                                 311                  173                     282 
 Retained deficit                                           (3,245)              (2,885)                 (2,990) 
                                                     --------------       --------------            ------------ 
                                                              3,701                3,924                   3,927 
 Non-controlling interests                                    (146)                (133)                   (146) 
                                                     --------------       --------------            ------------ 
 Total equity                                                 3,555                3,791                   3,781 
                                                     --------------       --------------            ------------ 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                   13                1,478                1,423                   1,158 
 Liabilities held for 
  sale                                                            -                    -                     471 
 Lease liabilities - 
  current                                    9                   61                  120                     126 
                                                     -------------- 
                                                              1,539                1,543                   1,755 
                                                     --------------       --------------            ------------ 
 Non-current liabilities 
 Trade and other payables                   13                1,066                1,293                   1,148 
 Lease liabilities - 
  non-current                                9                    -                   63                       - 
                                                     --------------       --------------            ------------ 
                                                              1,066                1,356                   1,148 
                                                     --------------       --------------            ------------ 
 Total liabilities                                            2,605                2,899                   2,903 
                                                     --------------       --------------            ------------ 
 
 Total equity and liabilities                                 6,160                6,690                   6,684 
                                                     ==============       ==============            ============ 
 
 

The notes are an integral part of this condensed consolidated interim financial report.

 
         CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
                         FOR THE SIX MONTHSED 30 JUNE 2023 
                                             Share 
                                           option/                 Retained               Non-controlling 
                        Share      Share   warrant    Exchange    earnings/                     interests      Total 
                      capital    premium   reserve     reserve    (deficit)      Total            GBP'000     equity 
                      GBP'000    GBP'000   GBP'000     GBP'000      GBP'000    GBP'000                       GBP'000 
 
 Balance at 1 
  January 2023 
  (audited)               797      5,838       102         180      (2,990)      3,927              (146)      3,781 
 
 
 Loss for the 
  period                    -          -         -           -        (255)      (255)                  -      (255) 
 Other 
  comprehensive 
  income                    -          -         -          29            -         29                  -         29 
                    ---------  ---------  --------  ----------  -----------  ---------  -----------------  --------- 
 Total 
  comprehensive 
  loss 
  for the period                       -         -          29        (255)      (226)                  -      (226) 
 
 Issue of                   -          -         -           -            -          -                  -          - 
 ordinary shares 
 Issue costs                -          -         -           -            -          -                  -          - 
 Non-controlling 
 interest                   -          -         -           -            -          -                  -          - 
 on acquisition 
 of subsidiary 
 Share based                -          -         -           -            -          -                  -          - 
 payment 
 transactions 
 Transactions               -          -         -           -            -          -                  -          - 
 with owners, 
 recognised 
 directly in 
 equity 
 
 Balance at 30 
  June 2023 
  (unaudited)             797      5,838       102         209      (3,245)      3,701              (146)      3,555 
                    =========  =========  ========  ==========  ===========  =========  =================  ========= 
 

The notes are an integral part of this condensed consolidated interim financial report.

 
                                  CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
                                           FOR THE TWELVE MONTHSED 31 DECEMBER 2022 
                                             Share 
                                           option/                                         Non-controlling 
                        Share      Share   warrant    Exchange     Retained                      interests      Total 
                      capital    premium   reserve     reserve    Earnings/       Total            GBP'000     equity 
                      GBP'000    GBP'000   GBP'000     GBP'000    (deficit)     GBP'000                       GBP'000 
                                                                    GBP'000 
 
 Balance at 1 
  January 
  2022 (audited)          630      4,033       100          11      (1,721)       3,053                229      3,282 
 
 
 Loss for the 
  period                    -          -         -           -      (1,076)     (1,076)                 79      (997) 
 Other 
  comprehensive 
  income                    -          -         -         169            -         169               (19)        150 
                    ---------  ---------  --------  ----------  -----------  ----------  -----------------  --------- 
 Total 
  comprehensive 
  loss for the 
  period                    -          -         -         169      (1,076)       (907)                 60      (847) 
 
 
 Issue of ordinary 
  shares                  167      1,845         -           -            -       2,012                  -      2,012 
 Costs of share 
  issue                     -       (40)         -           -            -        (40)                  -       (40) 
 Acquisition of 
  non-controlling 
  interest                  -          -         -           -        (200)       (200)              (435)      (635) 
 Share option 
  expense                   -          -         9           -            -           9                  -          9 
 Share option 
  forfeit                   -          -       (7)           -            7           -                  -          - 
 Transactions with 
  owners, 
  recognised 
  directly 
  in equity               167      1,805         2           -        (193)       1,781              (435)      1,346 
 
 Balance at 31 
  December 
  2022 (audited)          797      5,838       102         180      (2,990)       3,927              (146)      3,781 
                    =========  =========  ========  ==========  ===========  ==========  =================  ========= 
 

The notes are an integral part of this condensed consolidated interim financial report.

 
                                               CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
                                                               FOR THE SIX MONTHSED 30 JUNE 2022 
                                                             Share 
                                                           option/                                                             Non- 
                                Share          Share       warrant        Exchange          Retained                    controlling           Total 
                              capital        premium       reserve         reserve          earnings         Total        interests          equity 
                              GBP'000        GBP'000       GBP'000         GBP'000           GBP'000       GBP'000          GBP'000         GBP'000 
 
 Balance at 1 January 
  2022 (audited)                  630          4,033           100              11           (1,721)         3,053              229           3,282 
 
 
 Loss for the period                -              -             -               -             (470)         (470)                3           (467) 
 Total other comprehensive 
  income                            -              -             -              56                 -            56              (3)              53 
                            ---------      ---------      --------      ----------          --------      --------      -----------      ---------- 
 Total comprehensive 
  loss for the period               -              -             -              56             (470)         (414)                -           (414) 
 
 Issue of ordinary shares         168          1,845             -               -                 -         2,013                -           2,013 
 Issue costs                        -           (40)             -               -                 -          (40)                -            (40) 
 Acquisition of NCI 
  without 
  a change in control 
  (note 14)                         -              -             -               -             (694)         (694)            (362)         (1,056) 
 Share based payment 
  transactions                      -              -             6               -                 -             6                                6 
 Transactions with owners, 
  recognised directly 
  in equity                       168          1,805             6               -             (694)         1,285            (362)             923 
 
  Balance at 30 June 
  2022                            798          5,838           106              67           (2,885)         3,924            (133)           3,791 
   (unaudited) 
                            =========      =========      ========      ==========          ========      ========      ===========      ========== 
 

The notes are an integral part of this condensed consolidated interim financial report.

 
                                                                    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
                                                                             FOR THE SIX MONTHSED 30 JUNE 2023 
                                                            30-Jun-23            30-Jun-22              31 -Dec-22 
                                                          (unaudited)          (unaudited)               (audited) 
                                                              GBP'000              GBP'000                 GBP'000 
 Cash flows from operating 
  activities 
 Loss from operating activities                                 (226)                (467)                   (997) 
 Adjustments for: 
 Depreciation and amortisation                                     61                   99                     179 
 Profit on sale of intellectual                                 (184)                    -                       - 
  property relating to Togo 
 Expenses settled in shares                                         -                    -                     109 
 Finance costs recognised                                         106                    -                     204 
 Foreign exchange differences                                       -                (356)                       - 
 Equity-settled share-based payment 
  transactions                                                      -                    6                       9 
                                                       --------------       --------------            ------------ 
                                                                (243)                (718)                   (496) 
 Changes in: 
 - inventories                                                      8                (211)                   (395) 
 - trade and other receivables                                    (8)                 (21)                    (97) 
 - trade and other payables                                       116                (747)                     119 
                                                       --------------       --------------            ------------ 
 Cash used in operating activities                              (127)              (1,697)                   (869) 
 
 Interest paid                                                    (9)                    -                    (52) 
                                                       -------------- 
 Net cash used in operating                                                         (1,697 
  activities                                                    (136)                    )                   (921) 
                                                       --------------       --------------            ------------ 
 
 Cash flows from investing 
  activities 
 Interest received                                                  -                    -                       - 
 Acquisition of property, plant                                     -                    -                       - 
  and equipment 
 Exploration and licence expenditure                                -                  (2)                       - 
 Consideration for purchase of 
  minority interest in subsidiary                                   -                    -                   (286) 
                                                       -------------- 
 Net cash used in investing 
  activities                                                        -                  (2)                   (286) 
                                                       --------------       --------------            ------------ 
 
 Cash flows from financing 
  activities 
 Net proceeds from issue of 
  share capital                                                     -                1,973                   1,641 
 Loans received                                                     -                    -                     100 
 Repayment of loans                                                 -                    -                   (375) 
 Payment of lease obligations                                    (61)                    -                    (93) 
                                                       -------------- 
 Net cash flows from financing 
  activities                                                     (61)                1,973                   1,273 
                                                       --------------       --------------            ------------ 
 
 Net (decrease)/increase in 
  cash and cash equivalents                                     (197)                  274                      66 
 Cash and cash equivalents at 
  beginning of period                                             207                  166                     166 
 Effect of foreign exchange 
  rate changes                                                     29                    -                    (25) 
                                                       --------------       --------------            ------------ 
 Cash and cash equivalents at 
  end of period                                                    39                  440                     207 
                                                       ==============       ==============            ============ 
 

The notes are an integral part of this condensed consolidated interim financial report.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHSED 30 JUNE 2023

   1.             Reporting entity 

Keras Resources plc (the "Company") is a company domiciled in England and Wales. The unaudited condensed consolidated interim financial statements of the Company as at and for the six months ended 30 June 2023 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates and jointly controlled entities. The Group currently operates as an explorer and developer.

   2.             Basis of preparation 
   (a)           Statement of compliance 

This condensed consolidated interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial performance and position of the Group since the last consolidated financial statements as at and for the period ended 31 December 2022. This condensed consolidated interim financial report does not include all the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards.

This condensed consolidated interim financial report was approved by the Board of Directors on 27 September 2023, subject to certain amendments that were delegated to and approved by a Director on 29 September 2023.

   (b)           Judgements and estimates 

Preparing the interim financial report requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed consolidated interim financial report, significant judgements made by Management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements as at and for the period ended 31 December 2022.

   3.             Significant accounting policies 

The accounting policies applied by the Group in this condensed consolidated interim financial report are the same as those applied by the Group in its audited consolidated financial statements as at and for the period ended 31 December 2022.

   4.             Financial instruments 

Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in the audited consolidated financial statements as at and for the period ended 31 December 2022.

   5.             Segment information 

The Group considers that it operates in two distinct business areas, manganese mining in West Africa and phosphate mining in Utah, USA. These business areas form the basis of the Group's operating segments. For each segment, the Group's CEO (the chief operating decision maker) reviews internal management reports on at least a quarterly basis.

Operations ceased in the manganese segment of the Group during the period. This was a result of the sale of the intellectual property relating to this geographic region. As a result, an amount of GBP1,412,077 is recognised within other receivables reflecting the amounts due on the sale and an amount of GBP184,653 recognised as a gain on disposal within operating profit.

Other operations relate to the group's administrative functions conducted at its head office and by its intermediate holding company together with consolidation adjustments.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Group's CEO. Segment results are used to measure performance as Management believes such information is the most relevant in evaluating the performance of certain segments relative to other entities that operate within the exploration industry.

Information about reportable segments

For the six months ended 30 June 2023 (unaudited)

 
                                                                                   Other 
                                     ManganeseGBP'000     Phosphate    operationsGBP'000       Total 
                                                            GBP'000                          GBP'000 
           External revenue                         -           397                    -         397 
                                  ===================  ============  ===================  ========== 
 
           Profit/(loss) before 
           tax                                      -           141                (396)       (255) 
                                  ===================  ============  ===================  ========== 
 
           Segment assets                           -         4,689                1,471       6,160 
                                  ===================  ============  ===================  ========== 
 
 
             For the six months ended 30 June 2022 (unaudited) 
                                                                                   Other 
                                     ManganeseGBP'000     Phosphate    operationsGBP'000       Total 
                                                            GBP'000                          GBP'000 
           External revenue                         -           212                    -         212 
                                  ===================  ============  ===================  ========== 
 
           Profit/(loss) before 
           tax                                     22             9                (498)       (467) 
                                  ===================  ============  ===================  ========== 
 
           Segment assets                       1,228         4,744                  718       6,690 
                                  ===================  ============  ===================  ========== 
 
 
           5. Segment information (continued) 
            For the twelve months ended 30 December 2022 (audited) 
                                                                                   Other 
                                            Manganese     Phosphate           operations       Total 
                                              GBP'000       GBP'000              GBP'000     GBP'000 
       External revenue                             -           994                    -         994 
                                  ===================  ============  ===================  ========== 
 
       Profit/(loss) before 
        tax                                     (131)            68                (934)       (997) 
                                  ===================  ============  ===================  ========== 
 
       Segment assets                           1,558         5,027                   99       6,684 
                                  ===================  ============  ===================  ========== 
 
 
 

Information about geographical segments:

For the six months ended 30 June 2023 (unaudited)

 
                                 West                   US                Other       Total 
                               Africa                         operationsGBP'000 
                              GBP'000              GBP'000                          GBP'000 
       External revenue             -                  397                    -         397 
                            =========  ===================  ===================  ========== 
 
       Profit/(loss) 
        before 
        tax                         -                  141                (396)       (255) 
                            =========  ===================  ===================  ========== 
 
       Segment assets               -                4,689                1,471       6,160 
                            =========  ===================  ===================  ========== 
 
 
                            For the six months ended 30 June 2022 (unaudited) 
                                 West                   US                Other       Total 
                               Africa                         operationsGBP'000 
                              GBP'000              GBP'000                          GBP'000 
       External revenue             -                  212                    -         212 
                            =========  ===================  ===================  ========== 
 
       Profit/(loss) 
        before 
        tax                        22                    9                (498)       (467) 
                            =========  ===================  ===================  ========== 
 
       Segment assets           1,228                4,744                  718       6,690 
                            =========  ===================  ===================  ========== 
 
 
            5               Segment information (continued) 
                            Information about geographical segments(continued) 
 
                          For the 12 months ended 31 
                          December 2022 (audited) 
                                 West                   US                Other       Total 
                               Africa                                operations 
                              GBP'000              GBP'000              GBP'000     GBP'000 
       External revenue             -                  994                    -         994 
                            =========  ===================  ===================  ========== 
 
       Profit/(loss) 
        before 
        tax                     (131)                   68                (934)       (997) 
                            =========  ===================  ===================  ========== 
 
       Segment assets           1,558                5,027                   99       6,684 
                            =========  ===================  ===================  ========== 
 
 
 
 
   6.            Seasonality of operations 

Mining at Falcon Isle takes place between May and November due to winter snow cover at the mine site and on the approach road. The fertiliser produced is used primarily during the planting and growing seasons, but sales by Falcon Isle take place throughout the year.

   7.             Intangible assets 
 
                                                                30-Jun-23            30-Jun-22               31-Dec-22 
                                                              (unaudited)          (unaudited)               (audited) 
                                                                  GBP'000              GBP'000                 GBP'000 
           Cost 
           Balance at beginning of period                           3,613                4,643                   4,643 
           Additions                                                    -                    3                       - 
           Effect of movement in exchange 
            rates                                                   (145)                  298                     349 
           Transfers to assets held for 
            sale                                                        -                    -                 (1,379) 
                                                      -------------------       --------------            ------------ 
           Balance at end of period                                 3,468                4,944                   3,613 
                                                      ===================       ==============            ============ 
 
           Impairment losses 
           Balance at beginning of period                              55                   37                      37 
           Impairment                                                   -                   26                       - 
           Amortisation                                                 -                    -                      13 
           Disposals                                                    -                    -                       - 
           Effect of movement in exchange 
            rates                                                     (5)                    6                       5 
                                                      -------------------       --------------            ------------ 
           Balance at end of period                                    50                   69                      55 
                                                      ===================       ==============            ============ 
 
 
           Carrying amounts 
           Balance at end of period          3,418   4,875   3,558 
                                            ======  ======  ====== 
           Balance at beginning of period    3,558   4,606   4,606 
                                            ======  ======  ====== 
 
 

Intangible assets comprise the fair value of prospecting and exploration rights.

   8.             Property, plant and equipment 

Acquisitions and disposals

No assets were acquired or disposed of during the six months ended 30 June 2023 or the comparative period.

   9.             Right of use asset 
 
                                                                30-Jun-23            30-Jun-22               31-Dec-22 
                                                              (unaudited)          (unaudited)               (audited) 
                                                                  GBP'000              GBP'000                 GBP'000 
           Balance at beginning of period                             121                  215                     215 
           Additions                                                    -                    -                       - 
           Depreciation                                              (59)                 (66)                   (118) 
           Effects of movements in exchange 
            rates                                                     (3)                   36                      24 
                                                           --------------       --------------            ------------ 
                                                                       59                  185                     121 
                                                           ==============       ==============            ============ 
 

Lease liability

 
                                               GBP'000   GBP'000   GBP'000 
           Balance at beginning of period          126       219       219 
           Principal reduction                    (61)      (64)      (93) 
           Finance cost                              2         5         9 
           Effects of movements in exchange 
            rates                                  (6)        23       (9) 
                                              --------  --------  -------- 
                                                    61       183       126 
                                              ========  ========  ======== 
 
 
           Current portion        61   120   126 
           Non current portion     -    63     - 
                                 ---  ----  ---- 
                                  61   183   126 
                                 ===  ====  ==== 
 
   10.          Inventories 
 
                                                 30-Jun-23            30-Jun-22          31-Dec-22 
                                               (unaudited)          (unaudited)          (audited) 
                                                   GBP'000              GBP'000            GBP'000 
              Phosphate                                660                  484                668 
                                                       660                  484                668 
                                            ==============       ==============       ============ 
 
   11.          Trade and other receivables 
 
                                                         30-Jun-23            30-Jun-22          31-Dec-22 
                                                       (unaudited)          (unaudited)          (audited) 
                                                           GBP'000              GBP'000            GBP'000 
              Trade receivables                                 89                    -                 69 
           Other receivables                                 1,496                   95                 85 
           Prepayments                                          27                   20                 37 
                                                    -------------- 
                                                             1,612                  115                191 
                                                    ==============       ==============       ============ 
 

Trade receivables and other receivables are stated at their nominal values less allowances for non-recoverability.

   12.          Share capital and reserves 

Dividends

No dividends were declared or paid in the six months ended 30 June 2023 (six months ended 30 June 2022 : GBPnil, twelve months ended 31 December 2022: GBPnil).

   13.          Trade and other payables 
 
           Current                                                   30-Jun-23            30-Jun-22          31-Dec-22 
                                                                   (unaudited)          (unaudited)          (audited) 
                                                                       GBP'000              GBP'000            GBP'000 
           Trade payables                                                  510                  401                262 
           Accruals                                                         92                  208                 59 
           Other payables                                                  247                  814                209 
           Deferred consideration and loans 
            to previous minority shareholders                              629                    -                628 
                                                                         1,478                1,423              1,158 
                                                                ==============       ==============       ============ 
 
 
           Non-current                                              30-Jun-23            30-Jun-22          31-Dec-21 
                                                                  (unaudited)          (unaudited)          (audited) 
                                                                      GBP'000              GBP'000            GBP'000 
           Other payables                                                   -                1,293                 83 
           Deferred consideration and loans 
            to previous minority shareholders                           1,066                    -              1,065 
                                                                        1,066                1,293              1,148 
                                                               ==============       ==============       ============ 
 

There is no material difference between the fair value of trade and other payables and their book value.

   14.          Acquisition of non-controlling interest ("NCI") in Falcon Isle 

In the comparative period, the Group agreed to acquire the outstanding 49% equity interest in Falcon Isle, together with loans totalling US$1,816,527 made by the vendor to Falcon Isle for total consideration of $3.2 million payable in four annual tranches of US$800,000 commencing on 1 July 2022. The first payment was made on 30 June 2022., The second payment, due by 1 July 2023, has been treated as a current liability and is included in other payables. The final two instalments have been treated as non-current liabilities.

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END

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September 29, 2023 02:00 ET (06:00 GMT)

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