LONDON, ENGLAND / ACCESSWIRE / March 26, 2024 / Golden Metal Resources plc ("GMET", "Golden Metal" or the "Company") (LON:GMET)(OTCQB:GMTLF), the AIM listed metals exploration and development company, announces its unaudited interim results for the six month period ended 31 December 2023 (the "period").
KEY DEVELOPMENTS IN THE PERIOD TO 31 DECEMBER 2023
- On 6 July 2023, the Company announced the staking of mineral claims covering the Kibby Basin lithium project, an exciting lithium brine opportunity complementing the Company's other strategic/critical metal focussed properties
- On 24 July 2023, a Memorandum of Understanding ("MOU") was signed with Oxford Sigma Limited, a nuclear fusion technology company based in Oxfordshire, UK. The MOU outlined how the two parties will collaborate to explore and develop critical metal supply pathways for tungsten alloy and tungsten containing materials within the fusion industry
- On 26 September 2023, Golden Metal strengthened its board of directors with the appointment of J.T. Starzecki who also currently stands as Chief Marketing Officer of 5E Advanced Materials, a Nasdaq listed mining company
- Over the period the Company announced several updates covering its 100% owned Garfield project's ("Garfield") copper-gold-silver property, mostly concerning the discovery of significant porphyry style mineralisation and alteration
- During the period, the Company's Golconda Summit gold property advanced further following the validation of the presence of a feeder zone and therefore the potential for Carlin-type gold mineralisation at depth. A permit notice application was also submitted to the Bureau of Land Management office
KEY DEVELOPMENTS SINCE 31 DECEMBER 2023
- Further copper-gold-silver bedrock discoveries at Garfield
- Identification of garnet potential at Pilot Mountain
- Strategic £750,000 equity fundraise.
GOLDEN METAL INTERESTS AT TODAY'S DATE
The latest updated review of Golden Metal's business interests is provided in the Company's investor presentation which may be accessed here:
https://www.goldenmetalresources.com/investors/corporate-presentation/
In addition, a single page business overview is provided for investors through the following link:
https://www.goldenmetalresources.com/company/company-profile/
LATEST POSITION OF GOLDEN METAL'S INTERESTS AND TARGETED OBJECTIVES FOR 2024
Priority Exploration and Potential Exploration Projects
Exploration Interest | Latest Position & Forward Plans |
Pilot Mountain | The Company is awaiting drilling permits which will focus on a number of resource infill & expansion targets principally at Desert Scheelite as well as a handful of exploration targets which were delineated during the recently 2023 completed high-resolution induced polarisation (IP) survey. Golden Metal is nearing final discussions with a handful of potential drilling contracts in advance of the planned drilling campaign. |
Garfield | Multiple high-priority targets have been delineated which cover high-grade copper-silver-gold results associated with porphyry, skarn and epithermal type alteration and mineralisation. The Company is finalising next exploration steps and further updates covering this will be communicated to the market in due course. |
Golconda | Drilling and trenching permits have now been received. The Company is internally reviewing the opportunity and deciding on planned next steps in the context of record high gold pricing. |
Kibby Basin | High-priority drilling targets have been identified following detailed historical data review completed over the entire Kibby basin. The Company is internally reviewing the opportunity and will determine next steps in due course and communicate those to the market. |
Stonewall | No work has been completed on the Property since admission. An exciting opportunity remains of the discovery of further epithermal gold-silver mineralisation at Stonewall. |
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 DECEMBER 2023
- Loss for the period, attributable to owners of the parent of US$571k (30 June 2023: US$848k), resulting in loss per share of 0.01 pence (2023: 0.01 pence)
- Total assets of US$8,902k at the period end (30 June 2023: US$9,453k); and
- Net assets of US$8,663k at the period end (30 June 2023: US$9,039k).
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For further information please visit Golden Metal https://www.goldenmetalresources.com/ or contact:
| Golden Metal Resources plc | ||
| Oliver Friesen (Chief Executive Officer) | + 44 (0) 20 7583 8304 | |
| Cairn Financial Advisors LLP (Nominated Advisor) | ||
| Sandy Jamieson/Jo Turner/Louise O'Driscoll | +44 (0) 20 7213 0880 | |
| First Equity Limited (Broker) | ||
| Jonathan Brown/Jason Robertson | +44 (0) 20 7374 2212 | |
GOLDEN METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Note | 6 months ended 31-Dec-23 (unaudited) US$'000 | 6 months ended 31-Dec-22 (unaudited) US$'000 | Year ended 30-Jun-23 (audited) US$'000 | ||||||||||
Continuing operations | |||||||||||||
Other income | - | 29 | 30 | ||||||||||
Gross profit | - | 29 | 30 | ||||||||||
Administrative expenses | (571 | ) | (113 | ) | (878 | ) | |||||||
Loss from operating activities | (571 | ) | (84 | ) | (848 | ) | |||||||
Loss before taxation | (571 | ) | (84 | ) | (848 | ) | |||||||
Taxation | - | - | - | ||||||||||
Loss for the period from continuing operations | (571 | ) | (84 | ) | (848 | ) | |||||||
Items that will or may be reclassified to profit or loss | |||||||||||||
Exchange translation | 15 | (21 | ) | 153 | |||||||||
Total other comprehensive income | 15 | (21 | ) | 153 | |||||||||
Total comprehensive (loss)/income for the period attributable to owners of the company | (556 | ) | (105 | ) | (695 | ) | |||||||
Earnings per share from continuing operations attributable to the ordinary equity holder of the parent: | |||||||||||||
Basic and diluted loss per share (pence) | 4 | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||||
GOLDEN METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
| Note | 31-Dec-23 (unaudited) $'000 | 31-Dec-22 (unaudited) $'000 | 30-Jun-23 (audited) $'000 | |||||||||||
Assets | ||||||||||||||
Non-current assets | ||||||||||||||
Intangible assets | 7,953 | 7,470 | 7,796 | |||||||||||
Total non-current assets | 7,953 | 7,470 | 7,796 | |||||||||||
Current assets | ||||||||||||||
Trade and other receivables | 190 | 4 | 286 | |||||||||||
Cash and cash equivalents | 759 | 6 | 1,371 | |||||||||||
Total current assets | 949 | 10 | 1,657 | |||||||||||
Total assets | 8,902 | 7,480 | 9,453 | |||||||||||
Liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Trade and other payables | 239 | 286 | 414 | |||||||||||
Total current liabilities | 239 | 286 | 414 | |||||||||||
Total liabilities | 239 | 286 | 414 | |||||||||||
Net assets | 8,663 | 7,194 | 9,039 | |||||||||||
Equity | ||||||||||||||
Share capital | 5 | 1,051 | 728 | 1,043 | ||||||||||
Share premium | 6,254 | 4,126 | 6,195 | |||||||||||
Capital contribution reserve | 5,897 | 5,897 | 5,897 | |||||||||||
Share based payments reserve | 164 | - | 51 | |||||||||||
Exchange reserve | 222 | 33 | 207 | |||||||||||
Accumulated losses | (4,925 | ) | (3,590 | ) | (4,354 | ) | ||||||||
Total equity | 8,663 | 7,194 | 9,039 | |||||||||||
GOLDEN METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Share capital US$'000 | Share premium US$'000 | Capital contribution reserve US$'000 | Share based payment reserve US$'000 | Exchange reserve US$'000 | Accumulated losses US$'000 | Total equity US$'000 | |||||||||||||||
Balance at 1 July 2023 (audited) | 1,043 | 6,195 | 5,897 | 51 | 207 | (4,354 | ) | 9,039 | |||||||||||||
Loss for the period | - | - | - | - | - | (571 | ) | (571 | ) | ||||||||||||
Currency translation | - | - | - | - | 15 | - | 15 | ||||||||||||||
Total comprehensive income/(expense) for the period | - | - | - | - | 15 | (571 | ) | (556 | ) | ||||||||||||
Issue of ordinary shares | 8 | 59 | - | - | - | - | 67 | ||||||||||||||
Share-based payments | - | - | - | 113 | - | - | 113 | ||||||||||||||
Total transactions with owners | 8 | 59 | 113 | 180 | |||||||||||||||||
Balance at 31 December 2023 (unaudited) | 1,051 | 6,254 | 5,897 | 164 | 222 | (4,925 | ) | 8,663 | |||||||||||||
GOLDEN METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Share capital US$'000 | Share premium US$'000 | Capital contribution reserve US$'000 | Share based payment reserve US$'000 | Exchange reserve US$'000 | Accumulated losses US$'000 | Total equity US$'000 | |||||||||||||||
Balance at 1 July 2022 (audited) | 728 | 4,126 | 5,897 | - | 54 | (3,506 | ) | 7,299 | |||||||||||||
Loss for the period | - | - | - | - | - | (84 | ) | (84 | ) | ||||||||||||
Currency translation | - | - | - | - | (21 | ) | - | (21 | ) | ||||||||||||
Balance at 31 December 2022 (unaudited) | 728 | 4,126 | 5,897 | - | 33 | (3,590 | ) | 7,194 | |||||||||||||
GOLDEN METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Share capital US$'000 | Share premium US$'000 | Capital contribution reserve US$'000 | Share based payment reserve US$'000 | Exchange reserve US$'000 | Accumulated losses US$'000 | Total equity US$'000 | |||||||||||||||
Balance at 1 July 2022 (audited) | 728 | 4,126 | 5,897 | - | 54 | (3,506 | ) | 7,299 | |||||||||||||
Loss for the period | - | - | - | - | - | (848 | ) | (848 | ) | ||||||||||||
Currency translation | - | - | - | - | 153 | - | 153 | ||||||||||||||
Total comprehensive income/(expense) for the period | - | - | - | - | 153 | (848 | ) | (695 | ) | ||||||||||||
Issue of ordinary shares | 315 | 2,365 | - | - | - | - | 2,680 | ||||||||||||||
Share issue costs | - | (296 | ) | - | - | - | - | (296 | ) | ||||||||||||
Share-based payments | - | - | - | 51 | - | - | 51 | ||||||||||||||
Total transactions with owners | 315 | 2,069 | - | 51 | - | - | 2,435 | ||||||||||||||
Balance at 30 June 2023 (audited) | 1,043 | 6,195 | 5,897 | 51 | 207 | (4,354 | ) | 9,039 | |||||||||||||
GOLDEN METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
6 months ended 31-Dec-23 (unaudited) $'000 | 6 months ended 31-Dec-22 (unaudited) $'000 | Year ended 30-Jun-23 (audited) $'000 | ||||||||||
Cash flows from operating activities | ||||||||||||
Loss for the period | (571 | ) | (84 | ) | (848 | ) | ||||||
Adjustments for: | ||||||||||||
Share-based payment expense | 113 | - | 51 | |||||||||
Expenses settled in shares | 67 | - | 267 | |||||||||
Foreign exchange differences | (3 | ) | (21 | ) | (14 | ) | ||||||
| (394 | ) | (105 | ) | (544 | ) | |||||||
Changes in working capital: | ||||||||||||
Decrease/(increase) in trade and other receivables | 93 | 165 | (128 | ) | ||||||||
(Decrease)/increase in trade and other payables | (177 | ) | 136 | 511 | ||||||||
Net cash (used in)/generated from operating activities | (478 | ) | 196 | (161 | ) | |||||||
Cash flows from investing activities | ||||||||||||
Purchase of intangibles | (139 | ) | (230 | ) | (374 | ) | ||||||
Net cash used in investing activities | (139 | ) | (230 | ) | (374 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Proceeds from issue of share capital | - | - | 2,160 | |||||||||
Share issue costs | - | - | (296 | ) | ||||||||
Net cash generated from financing activities | - | - | 1,864 | |||||||||
Net (decrease)/increase in cash and cash equivalents | (617 | ) | (34 | ) | 1,329 | |||||||
Cash and cash equivalents at beginning of period | 1,371 | 40 | 40 | |||||||||
Effect of foreign currency exchange rates | 5 | - | 2 | |||||||||
Cash and cash equivalents at end of period | 759 | 6 | 1,371 | |||||||||
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Golden Metal Resources plc is a public company limited by shares which is incorporated and domiciled in England and Wales. The address of the Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT. The consolidated financial statements of the Company as at and for the period ended 31 December 2023 include the Company and its subsidiaries. The Company is the parent company of Golden Metal Resources LLC, Pilot Metals Inc. and BFM Resources Inc.; the subsidiaries are registered and domiciled in the US. The Group is primarily involved in the exploration and exploitation of mineral resources in the US.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.
The financial information presented in this interim report has been prepared using accounting policies that are expected to be applied in the preparation of the financial statements for the year ending 30 June 2024.
These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards, and Interpretations (collectively IFRS) issued by the International Accounting Standards Board as endorsed for use in the United Kingdom, and these principles are disclosed in the Financial Statements for the year ended 30 June 2023.
The interim results have been prepared on a going concern basis. The financial information in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The 2023 interim financial report has not been audited.
The Annual Report and Financial Statements for 2023 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2023 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The interim results were approved by the Board of Directors on 25 March 2024.
(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 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 consolidated financial statements as at and for the year ended 30 June 2023.
(c) Going concern
The interim financial report has been prepared on a going concern basis. Although the Group's assets are not generating revenues, the Directors believe, having considered all available information, including the Company's proven ability to raise further equity funds from its supportive shareholder base, that the Group will have sufficient funds to meet its expected committed and contractual expenditure for the foreseeable future. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial report for the period ended 31 December 2023.
3. Significant accounting policies
The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2023.
4. Earnings per share
Basic loss per share
The calculation of basic and diluted loss per share is based on the loss attributable to ordinary shareholders of US$571k (30 June 2023: US$848k), and a weighted average number of ordinary shares in issue of 85,507,128 (30 June 2023: 63,422,122). The basic and diluted earnings per share are the same given the loss for the year, making the outstanding share options and warrants anti-dilutive.
5. Issues of Equity
At the period end, the Company had 85,617,902 Ordinary Shares in issue (30 June 2023: 85,000,255).
At the date of this interim report, the Company had 91,049,720 Ordinary Shares in issue.
**Ends**
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SOURCE: Golden Metal Resources PLC