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EUZ Europa Metals Ltd

1.25
0.00 (0.00%)
Last Updated: 08:00:05
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Europa Metals Ltd LSE:EUZ London Ordinary Share AU0000090060 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1.25 1.10 1.40 1.25 1.25 1.25 8 08:00:05
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores 0 -3.38M -0.0359 -0.35 1.18M

Europa Metals Ltd Half-year Report

28/03/2024 7:28am

RNS Regulatory News


RNS Number : 6726I
Europa Metals Ltd
28 March 2024
 

28 March 2024

 

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)

Results for the Half-Year Ended 31 December 2023

Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce its unaudited results for the half-year ended 31 December 2023 (the "Half-Year Financial Report").

 

Please see below extracts from the Half-Year Financial Report, being the:

 

-     Chairman and Interim-CEO's Review

-     Review and results of operations

-     Consolidated Statement of Profit or Loss and Other Comprehensive Income

-     Consolidated Statement of Financial Position

-     Consolidated Statement of Changes in Equity

-     Consolidated Statement of Cash Flows

 

A copy of the full Half-Year Financial Report is available on the Company's website at www.europametals.com.

 

For further information on the Company, please visit www.europametals.com or contact:

 

Europa Metals Ltd

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 417 978 955

Myles Campion, Executive Chairman and acting CEO (UK)

T: +44 (0)20 3289 9923

 

Beaumont Cornish (Nominated Adviser/Broker)

James Biddle

T: +44 (0)20 7628 3396

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Danielle Christodoulou

T: +27 (11) 011 9216

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

 

 

 

 

 

Key Extracts from the Company's unaudited Half-Year Financial Report are set out below:

Review and results of operations

Europa Metals is a European focused lead, zinc and silver developer. 

Operating Results

For the half-year from 1 July 2023 to 31 December 2023, the Group recorded a net loss after tax of A$248,761 (1 July 2022 to 31 December 2022: net loss of A$1,220,449).

The Toral Project is situated in northwest Spain in a world class mining jurisdiction which provides the opportunity to create new mines within well-established environmental and mining frameworks and with access to first class power and transport infrastructure. Toral represents a limestone hosted, structurally controlled deposit with the Pb, Zn, Ag mineralisation situated within the limestone close to the boundary between footwall slates and hanging wall limestones and dolomites. The mineralisation occurs as semi-massive vein, breccia and carbonate replacement styles of mineralisation.

The Toral deposit currently has a JORC (2012) compliant indicated mineral resource estimate of approximately 7Mt @ 8.1% Zn Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag, containing approximately 349,000 tonnes of zinc, 260,000 tonnes of lead and 6.6 million ounces of silver. This is contained within a total mineral resource of 20Mt @ 6.8% Zn Equivalent (including Pb credits), 4.4% Zn, 2.8% Pb and 23 g/t Ag.

On November 23 2022, Europa Metals Ltd entered into a definitive option agreement (the "Toral Definitive Agreement") with Denarius Metals Corp. ("Denarius") pursuant to which Europa has granted two options to Denarius to acquire up to an 80% ownership interest in Europa Metals Iberia S.L. ("EMI"), a wholly-owned Spanish subsidiary of Europa which holds the Toral Zn-Pb-Ag Project. 

 

Pursuant to the Toral Definitive Agreement, Denarius has been granted a First Option, exercisable until November 22, 2025 (subject to a 90-day extension in certain circumstances), to subscribe for a 51% equity interest in EMI by:

(i)         spending, as operator, a total of USD$4,000,000 on the Toral Project over the three-year period,

(ii)         completing a preliminary economic assessment, and

(iii)        completing and submitting a mining license application in respect of the Toral Project to the local            mining authority by July 31, 2023.

Mining Licence Application

Formal application for a mining licence has been completed in October 2023 over the Toral Pb, Zn & Ag project. All necessary studies have now been completed and lodged with the relevant authorities and departments within the Castille and Leon regional government.  

 

Highlights:

·      Submission to the "Junta of Castilla and Leon" completed.

·      All necessary documentation covering the exploitation, restoration and environmental impact study was submitted.

·      The submission envisages a life of mine of 15 years, mining on average 700,000t of ore per year from underground.

·      Including pre-production and closure plans, Toral's 18 year operations will create over 360 direct local employment opportunities and approximately 1,400 indirect jobs in the region.

·      This submission has been based on the deposit whose technical, economic and environmental feasibility is in accordance with the laws and regulations of the region of Castilla y Leon.

·      Such project assessment will be formally reported on in the expected preliminary economic assessment in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 expected to be prepared in 2024.

Exploitation Plan

Due to the subvertical geometry of the Toral deposit and its combination of depth and thickness, underground mining is considered to be the most technically, economically, and environmentally viable development option.

A map of a mountain range Description automatically generated

Figure 1 General on surface facilities layout distribution

 

The basis for the development plan utilised the existing JORC resource from November 2022; since the beginning of 2023 the Company's Spanish engineering group, Mining Sense, has applied many factors to this Resource such as commodity pricing, base load power costs, dilution factors and trade-off studies with the objective of reviewing various development scenarios. Based on the work carried out, it was determined that the extension, volume and ore grades have been duly estimated to define a mineable deposit whose technical, economic and environmental feasibility is supported by the documentation and in accordance with the laws and regulations of the region of Castille y Leon. Such project assessment will be formally reported on in the expected preliminary economic assessment to national Instrument standards 43-101 expected to be published in 2024.

Drilling

On the 4th August 2023, Europa Metals was pleased to announce the latest assay results from its ongoing validation and infill diamond drilling programme, being conducted by Explomin Perforaciones UE S.L. ("Explomin"), at the Company's 100% owned Toral Pb, Zn & Ag project ("Toral" or the "Toral Project") in northwest Spain. This drilling programme forms part of the 2023 exploration campaign agreed between the Company and Denarius Metals Corp (TSXV:DSLV; OTCQX: DNSRF) ("Denarius") pursuant to the definitive option agreement dated 22 November 2022, further details of which are set out in the Company's announcement of 23 November 2022.

 

In addition, detailed environmental studies are now nearing completion which are required to finalise the formal submission of the Company's mining licence application to the Mines Department of Castilla y León.

 

Highlights:

·      Assays received in respect of seven drill holes at Toral each reporting significant mineralisation

·      Significant intersection from drillhole TOD-044 of 7.95m@4.46% ZnEq(PbAg)*, including:

4.25m@6.17% ZnEq(PbAg)*; and

1.55m@11.40% ZnEq(PbAg)*

·      Significant intersection from drillhole TOD-045 of 4.95m@22.71% ZnEq(PbAg)*

·      Significant intersection from drillhole TOD-046 of 1.50m@11.64% ZnEq(PbAg)*, including:

1.00m@15.84% ZnEq(PbAg)*

·      Two significant intersections from drillhole TOD-047 of 0.6m@18.34% ZnEq(PbAg)* and 2.4m@3.72% ZnEq(PbAg)*

·      Significant intersections from drillhole TOD-048 of 4.7m@6.68% ZnEq(PbAg)*, including:

1.65m@14.41% ZnEq(PbAg)*

·      A further significant intersection from drillhole TOD-048 of 6.65m@8.12% ZnEq(PbAg)*, including:

3.80m@12.58% ZnEq(PbAg)*

·      Significant intersection from drillhole TOD-049 of 5.00m@6.91% ZnEq(PbAg)*, including:

1.25m@20.93% ZnEq(PbAg)*

·      Significant intersections from drillhole TOD-050 of 3.90m@10.30% ZnEq(PbAg)*, including:

1.45m@20.69% ZnEq(PbAg)*

·      A further significant intersection from drillhole TOD-050 of 2.4m@4.98% ZnEq(PbAg)*

·      Holes TOD-045 and TOD-046 have both been completed and reliability of the assay results received re-confirmed:

High values of silver were identified in one of the holes and in line with the Company's standard operating procedures (SOP), we re-submitted the sample for re-testing to confirm its veracity and also confirmed the accuracy of results for control samples

·      All holes to date have been successful in intersecting mineralisation adjacent to an existing, previously reported, high grade intersection within the project's Indicated Resource block

·      Hole TOD-051 is currently nearing completion and comprises the final drillhole for this campaign

·      Detailed environmental work is nearing completion in connection with the Company's forthcoming mining licence application ("MLA") for Toral.

Additional information

The current drilling campaign for a total of up to 7,000m, is focused on a combination of confirmatory and infill drilling within the project's known indicated resource area outlined to date, of approximately 7Mt @ 8.1% Zn Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag.

Drilling results

The drilling parameters for the assay results reported for each hole are presented in the table below:

HOLE_ID

EASTING

NORTHING

ELEVATION (m)

LENGTH (m)

COOR_SYS

TOD-044

681197

4710037

531.65

509

ETRS89utm29

TOD-045

681412

4710025

542.29

610.3

ETRS89utm29

TOD-046

681684

4709858

660.80

866.5

ETRS89utm29

TOD-047

681686

4709856

660.88

460.6

ETRS89utm29

TOD-048

681408

4710024

542.29

529

ETRS89utm29

TOD-049

681685

4709857

660.80

763

ETRS89utm29

TOD-050

681916

4709571

634.10

701.3

ETRS89utm29

 

 

 

 

All holes were drilled to PQ-HQ-NQ diameter, with half of the core being sent for independent analysis at ALS Laboratories. The assay results received are set out in the table below:

Hole ID

From

To

Interval (m)

Zn_%

Pb_%

Ag_ppm

Cu_%

ZnEq(PbAg)%*

TOD-044

490.85

498.80

7.95

2.56

1.73

14.65

0.04

4.46

TOD-044 (including)

490.85

495.10

4.25

3.93

2.06

16.79

0.04

6.17

TOD-044 (including)

492.65

494.20

1.55

8.35

2.76

24.31

0.05

11.40

TOD-045

592.00

596.95

4.95

7.31

12.77

160.52

0.10

22.71

TOD-046

845.50

847.00

1.50

8.30

3.45

12.80

0.04

11.64

TOD-046 (including)

845.50

846.50

1.00

11.08

4.91

18.75

0.06

15.84

TOD-047

442.00

442.60

0.60

15.20

3.30

10.50

0.17

18.34

TOD-047

453.10

455.50

2.40

1.61

1.57

27.69

0.20

3.72

TOD-048

505.25

509.95

4.70

3.53

2.81

26.34

0.31

6.68

TOD-048 (including)

508.30

509.95

1.65

7.94

5.78

53.95

0.51

14.41

TOD-048

513.05

519.70

6.65

4.01

2.75

63.60

0.31

8.12

TOD-048 (including)

515.90

519.70

3.80

6.35

4.14

97.92

0.44

12.58

TOD-049

745.00

750.00

5.00

1.17

6.14

15.63

0.07

6.91

TOD-049 (including)

745.85

747.10

1.25

2.01

20.45

43.96

0.23

20.93

TOD-050

675.00

678.90

3.90

2.24

8.05

40.24

0.03

10.30

TOD-050 (including)

677.45

678.9

1.45

5.76

14.39

91.04

0.07

20.69

TOD-050

680.10

682.50

2.40

1.71

2.67

35.44

0.01

4.98

* - ZnEq(PbAg)% is the calculated Zn equivalent incorporating lead and silver credits; (ZnEq(PbAg)% = Zn + Pb*0.926 + Ag*0.019). Zn equivalent calculations were based on 3-year trailing average price statistics obtained from the London Metal Exchange and London Bullion Market Association giving an average Zn price of US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/oz. Significant ZnEq intercepts were generated using a 1% ZnEq trigger value, minimum width of 1m, maximum consecutive waste interval of 1m and minimum average ZnEq grade of >1%.

Image 1: Hole positions

A colorful map with lines and dots Description automatically generated

Drilling operations remain ongoing, in line with the Company's objective set out above, and further assay results will be announced once processed and received.

The Company had been awaiting re-assays and re-confirmation of the results for several samples, sent to the laboratory over the past several months, prior to releasing this announcement. In particular, one of the holes reported an abnormally high silver value (hole TOD-045, average grade of 160.52 Ag g/t) and as part of the Company's standard operating procedures (SOP) when we receive abnormally high results for either zinc, lead or silver, we re-submit the relevant sample for re-testing in order to confirm its veracity. We have now confirmed this value.

In addition, as part of our SOP we regularly insert control samples into the batches that are submitted to the laboratory, the results of which form part of our statistical analysis to confirm the reliability and consistency of the results received. We have now received confirmation of these results over several holes and can confirm their accuracy.

Corporate

 

Issue of shares to directors

In December 2023, the Company issued 3,500,000 new Ordinary Shares to two directors of the Company following the conversion of performance rights. The relevant performance milestone conditions for the performance rights were achieved during the course of the year. Refer to the RNS of 24 January 2023 for further details.

 

Change of Nomad and Broker

On 9 October 2023, the Company advised of the appointment of Beaumont Cornish Limited as Nomad and Broker.

 

Shareholder Meetings

On 30 November 2023, the Company held its Annual General Meeting whereby all resolutions were duly approved by shareholders by way of a poll.

 

Events subsequent to the reporting date

No matters or circumstances have arisen since the reporting date that may significantly affect the operations of the Company, the results of those operations, or the Company's state of affairs in future financial years.

Daniel Smith

Director

28 March 2024


Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the half-year ended 31 December 2023


 

6 months to

31 December 2023

6 months to

31 December 2022


Note

$

$


 

 


Revenue from continuing operations




Other Income

2

277,071

177,279



277,071

177,279



 

 

Exploration expenditure


(9,315)

(853,355)

Foreign exchange (loss)/gain


(10,097)

(7,553)

Other expenses

2

(506,420)

(536,820)

Loss before income tax


(248,761)

(1,220,449)

Income tax (expense)/benefit


-

-



 


Net loss after income tax


(248,761)

(1,220,449)



 


Other comprehensive income


 


Items that may be reclassified subsequently to profit or loss:


 


Net exchange (loss)/gain on translation of foreign operation

-

34,859

Other comprehensive (loss)/profit for the period, net of tax


-

34,859

 


 


Total comprehensive loss for the period


(248,761)

(1,185,590)



 




 


Net (loss) for the period attributable to shareholders of the Company:


 

(248,761)

(1,220,449)

 


(248,761)

(1,220,449)



 


Total comprehensive (loss) for the period attributable to shareholders of the Company:


(248,761)

(1,185,590)



(248,761)

(1,185,590)



 


 

 

Loss per share


Cents per share

Cents per share





- basic (loss) per share


(0.26)

(1.48)

- diluted (loss) per share


 

(0.26)

 

(1.48)

 

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes in the full Half-Year Financial Report.

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position as at 31 December 2023

 



31 December

30 June


 

2023

2023


Note

$

$

Current Assets




Cash and short-term deposits


488,964

653,990

Trade and other receivables

3

13,481

23,179

Total Current Assets

 

502,445

677,169



 


Total Assets


502,445

677,169



 


Current Liabilities


 


Trade and other payables


112,451

118,902

Total Current Liabilities

 

112,451

118,902

 

 

 


Total Liabilities

 

112,451

118,902



 


NET ASSETS

 

389,994

558,267



 


Equity


 


Contributed equity

6

49,562,236

49,391,945

Accumulated losses


(52,472,831)

(52,224,070)

Reserves


3,300,589

3,390,392

TOTAL EQUITY

 

389,994

558,267

 

 

 


 

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes in the full Half-Year Financial Report.


Consolidated Statement of Changes in Equity for the half-year ended 31 December 2023

 


 

 

Employee

 

 

 

 

Issued

Accumulated

Share
Incentive

Option

Foreign Exchange

Total


 Capital

Losses

Reserve

Reserve

Reserve

Equity


$

$

$

$

$

$

 

 

 

 

 

 

 

At 1 July 2022

48,227,649

(48,843,673)

567,997

2,720,044

62,558

2,734,575

(Loss) for the period

-

(1,220,449)

-

-

-

(1,220,449)

Other comprehensive income (net of tax)

-

-

-

-

34,859

34,859

Total comprehensive loss (net of tax)

-

(1,220,449)

-

-

34,859

(1,185,590)

Transaction with owners in their capacity as owners







Shares issued net of transaction costs

1,033,155

-

-

-

-

1,033,155

Shares issued to management

55,351

-

(76,420)

-

-

(21,069)

Shares to be issued

-

-

62,702

-

-

62,702

Options issued to directors and management

-

-

-

16,355

-

16,355

At 31 December 2022

49,316,155

(50,064,122)

554,279

2,736,399

97,417

2,640,128

 

 

 

 

 

 

 

At 1 July 2023

49,391,945

(52,224,070)

595,010

2,795,382

-

558,267

(Loss) for the period

-

(248,761)

-

-

-

(248,761)

Other comprehensive income (net of tax)

-

-

-

-

-

-

Total comprehensive loss (net of tax)

-

(248,761)

-

-

-

(248,761)

Transaction with owners in their capacity as owners







Performance shares issued

-

-

66,859

-

-

66,859

Conversion of performance rights

170,291

-

(170,291)

-

-

-

Options issued to directors and management

-

-

-

13,629

-

13,629

At 31 December 2023

49,562,236

(52,472,831)

491,578

2,809,011

-

389,994

 

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes in the full Half-Year Financial Report.


Consolidated Statement of Cash Flows for the half-year ended 31 December 2023

 


 

6 months to 31 December 2023

6 months to 31 December 2022


 

$

$

Cash flows from operating activities




Receipts from associate


277,071

-

Payments to suppliers and employees


(323,677)

(399,487)

Payment for exploration and evaluation costs


(107,254)

(822,588)

Net cash flows used in operating activities


(153,860)

(1,222,075)



 


Cash flows from financing activities


 


Lease principal repayments


-

(16,601)

Proceeds from issue of shares


-

1,033,155

Net cash flows from financing activities


-

1,016,554

Net increase / (decrease) in cash and cash equivalents

 

(153,860)

(205,521)

Cash and cash equivalents at beginning of period


653,990

1,650,056

Effect of foreign exchange on cash and cash equivalents


(11,166)

6,777

Cash and cash equivalents at end of the period


488,964

1,451,312

 

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes in the full Half-Year Financial Report.

 

- ENDS -

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