TIDMFRG
RNS Number : 7491N
Firering Strategic Minerals PLC
27 September 2023
Firering Strategic Minerals plc / EPIC: FRG / Market: AIM /
Sector: Mining
27 September 2023
Firering Strategic Minerals plc
("Firering" or "the Company")
Interim Results
For the Six Months Ended 30 June 2023
Firering Strategic Minerals plc, an exploration company focusing
on critical minerals, is pleased to announce its interim results
for the six months ended 30 June 2023.
Corporate and Operational Highlights
-- Start of Phase II soil sampling programme at its Atex
Lithium-Tantalum Project ("Atex") in conjunction with Joint Venture
partner, Ricca Resources Limited ("Ricca") following its US$18.6
million investment in Atex.
-- Increased stake in Atex to 90% following successful Phase I
drilling campaign and the start of the soil sampling programme in
January 2023. In addition, we hold 51% of the adjacent Alliance
mining application.
-- Successful completion of Phase II soil sampling programme
-- Start of Phase II auger drilling programme in three target
areas identified from Phase II soil sampling programme:
o Detailed geological mapping and soil sampling provide evidence
of an enlarged pegmatite field.
o Initial 11,000m of Phase II auger drilling planned.
Post Period Highlights
-- Option deed secured to acquire up to 28.33% of Limeco
Resources Limited ("Limeco") owner of ex-Glencore Limestone Project
in Zambia (announced on 17 August 2023):
o Limeco is expected to be profitable and delivering cashflow
within 12 - 24 months.
o Strategy is to pay dividend to shareholders as soon as
possible.
o US$100 million spent historically on the lime plant by
Glencore.
o Estimated resource* of 73.7Mt @ 95.3% CaCO(3) and an estimated
limestone stockpile of 190,000 tonnes, which will be used to start
production.
o Commissioning of the crushing plant to produce aggregates and
accelerate cashflow ahead of kiln modifications and plant
commissioning.
-- A total of nine target areas were identified at Atex,
including six new pegmatite zones, and have been geologically
mapped in detail.
-- Completion of Part 1 of Phase II Auger drilling:
o 1,039 holes were drilled for a total of 6,015 metres with an
average depth of hole of 5.79m.
-- Completion of an oversubscribed placing raising GBP756,000 to support:
o Further definition of identified pegmatite targets with
c.5,000m auger drilling campaign (Part 2 of Phase II) at Atex;
o The commencement of a 3,000 metre Reverse Circulation ("RC")
drilling campaign to better define the pegmatites identified during
the auger drilling in terms of mineralisation, size and orientation
(see Figure 1 drilling plan below);
o Complete the Laser Induced Breakdown Spectrometry ("LIBS")
test work on the remaining c. 50% of the soil samples; and
o Gradual modifications of the eight kilns at the lime plant in
Zambia, with the first two kilns expected to be commissioned during
Q1 2024.
Commenting on the results, Yuval Cohen, Chief Executive of
Firering, said:
"Our strategy has always been to increase shareholder value
through the continued exploration of our flagship asset, Atex. To
this end, and with the support of our JV partner, Ricca Resources,
we spent a significant amount of time in the field since the start
of 2023. Positive results from our Phase II soil sampling programme
identified multiple target areas for further exploration and were
pivotal in our decision to increase our stake in Atex from 77% to
90% and our consequent Phase II auger drilling campaign. After the
period, and supported by the positive results from Part 1 of the
Phase II auger drilling campaign, we announced our intention to
start a 3,000m RC drilling campaign at Atex, which we believe has
the potential to become a significant lithium producer in Côte
d'Ivoire.
"Post period, activity levels further increased and we are
delighted to have agreed an option agreement with Limeco Resources,
which owns a limestone project in Zambia. The project, previously
owned by Glencore who invested US$100 million, has the potential to
transform Firering into a cash generative business in a relatively
short space of time.
To support this forward momentum, we raised GBP756,000 post
period end in an oversubscribed placing, which will enable us to
conduct further auger and RC drilling work at Atex, with the
objective of increasing our understanding of the existing and newly
identified pegmatites in terms of mineralisation, size and
orientation, and support the kiln modifications at the lime plant
in Zambia."
Figure 1: Plan view showing 2022 DD holes in black and planned
2023 RC holes in blue.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
***S ***
For further information and updates on Firering's exploration
programme, visit www.fireringplc.com or contact the following:
Firering Strategic Minerals Tel: +44 20 7236 1177
Yuval Cohen
SPARK Advisory Partners Limited Tel: +44 20 3368 3550
Nominated Adviser
Neil Baldwin / James Keeshan / Adam
Dawes
Optiva Securities Limited Tel: +44 20 3137 1903
Broker
Christian Dennis / Daniel Ingram
St Brides Partners Limited T: +44 20 7236 1177
Financial PR E: firering @stbridespartners.co.uk
Ana Ribeiro / Susie Geliher / Isabelle
Morris
Chairman's Statement
I am pleased to report a busy half-year with significant
operational achievements during the six months to 30 June 2023.
Operational Update
The Company's focus at the start of 2023 was to continue to
accelerate exploration at its flagship lithium and tantalum project
- Atex, following the success of the first phase of diamond
drilling campaign in 2022. To this end, in January 2023, Firering
announced the start of a Phase II soil sampling programme . The
programme was undertaken in conjunction with Ricca Resources
Limited ("Ricca") following its US$18.6 million investment to
advance Atex to a Definitive Feasibility Study ("DFS") level. A
total of 14,116 soil samples were taken, prepared, and sent to
Ghana for portable x-ray fluorescence spectrometry ("pXRF") and
Laser Induced Breakdown Spectrometry ("LIBS") analysis. Several new
pegmatite related anomalies were identified, which provided vital
information for the next stage of the Company's auger drilling
campaign.
Plans to start the next auger drilling programme were announced
on 23 June 2023. Nine target areas were identified during the
Company's Phase II soil sampling programme with several lithium in
soil anomalies occurring adjacent and along similar orientations,
to Spodumene Hill where previous drilling returned significant
intersections, including an oblique intersection with an apparent
width of 64m at 1.24% Li(2) O and 25m at 1.39% Li(2) O (refer the
Company's notification of 15 November 2022 and 15 December
2022).
Phase II of the Atex soil sampling programme commenced on 9
January 2023 and was completed on 11 May 2023. Post the reporting
period, on 11 July 2023, the Company announced that its Phase II
Auger Drilling campaign had started successfully in late June. The
campaign was undertaken in conjunction with Ricca and a total of
1039 holes were drilled as of 8 July 2023 for a total of 6,015m of
drilling, resulting in an average hole depth of 5.79m. Nine
priority targets were identified as a result of a very successful
soil sampling programme, which included six new pegmatite zones
that were the focus of Part 1 of the Phase II auger drilling
campaign (announced on 20 September 2023).
In conjunction with Ricca, the Company is planning to start its
first Reverse Circulation ("RC") drilling campaign at Atex in Q4
2023. A total of c.3,000m of drilling is planned to further test
the pegmatite zones for mineralisation, orientation and dip.
In August 2023, the Company announced an option agreement for
Firering to acquire 28.33% in Glencore's previous limestone project
in Zambia, fromLimeco Resources Limited ("Limeco"), the current
owner of the project, for US5.1 million. Limeco has an estimate
resource* of 73.7Mt @ 95.3% CaCO3 and is expected to be profitable
and delivering cashflow within 12-24 months.
It is estimated that Glencore invested approximately US$100
million in Limeco to establish the limestone quarry and construct
the current lime plant, which would be used to produce quicklime
for Mopane Copper Mine in Zambia. Limestone production from the
quarry commenced in March 2016 and ceased in January 2017 following
the sale of Mopane Copper Mine to ZCCM Investment Holdings plc.
On 30 August 2023, the Company announced commissioning of the
crushing plant at Limeco, which. The crushing plant has been
adapted to produce aggregate from the estimated 250,000 tonnes of
waste rock material on site, which will enhance Limeco's cashflow
during the upgrade and modifications of the kilns. Firering's team
is assisting the local technical team with the gradual
modifications of the eight kilns with the first two kilns expected
to be commissioned during Q4 2023. We are also encouraged by the
ongoing offtake discussions that Limeco has entered into with major
copper producers that use quicklime in their copper flotation
process.
Financial
The Company did not generate revenue during the period. Instead,
it focussed on exploration and developing assets that the Board
believes will generate revenue for the Company in the future.
For the six-month period ending 30 June 2023, the Company
reports a pre-tax loss of EUR0.6m (six months ended 30 June 2022:
pre-tax loss of EUR0.5m).
The Company's net cash balance as of 30 June 2023 was EUR0.3m.
The Company successfully raised GBP756,000 (gross) through an
oversubscribed placing of 11,630,769 new Ordinary Shares to certain
investors at a price of 6.5 pence per share as notified on 21
September 2023.
Outlook
It is an exciting time for Firering as we continue to advance
the Atex project in Côte d'Ivoire and evaluate the possibility of
becoming a revenue generating Company through our option in Limeco.
Following the oversubscribed placing announced on 21 September
2023, we have sufficient funds to continue with our exploration
activities at Atex, which we see as paramount to our long-term
value proposition, alongside the management support we can offer to
Limeco.
We look forward to the next six months, which we believe will be
highly value accretive for our Company.
On behalf of the entire Board, I would like to take this
opportunity to thank our existing shareholders for their continued
support and welcome our new shareholders.
Youval Rasin
Non-Executive Chairman
26 September 2023
*The non-JORC compliant resource is based on all available
drilling data as at August 2017. The Mineral Resources estimates
are at this stage reported as an in situ Mineral Resources estimate
only, as further work is required in order to be able to report the
Mineral Resources estimates in accordance with the guiding
principles and minimum standards set out in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves" (the JORC Code) and the Company's
internal estimates, which are also not JORC compliant, are still
subject to verification, validation, and external review;
accordingly, such numbers are provided for guidance only. There can
be no guarantee the final JORC-compliant resource estimate will
reconcile with these early-stage calculations.
The Company intends to commission a JORC compliant report when
operations have been fully commissioned.
Copies of the Half Year Report are available on the Company's
website www.fireringplc.com
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
--------- -----------
2023 2022
--------- -----------
Unaudited Audited
--------- -----------
Euros in thousands
----------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 326 1,184
Other receivables 35 32
--------- -----------
Total current assets 361 1,216
--------- -----------
NON-CURRENT ASSETS:
Other receivables 637 637
Investment in joint venture 1,866 2,073
Intangible assets 1,276 1,276
Property, plant and equipment 143 166
--------- -----------
Total non-current assets 3,922 4,152
--------- -----------
Total assets 4,283 5,368
========= ===========
The accompanying notes form an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2023 2022
--------- -----------
Unaudited Audited
-----------
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade payables 71 61
Other payables 123 451
Capital note 174 214
--------- -----------
Total current liabilities 368 726
--------- -----------
NON-CURRENT LIABILITIES:
Accrued severance pay, net 8 8
Capital notes 594 565
Loan from non-controlling interest
in subsidiary 122 103
Total non-current liabilities 724 676
--------- -----------
Total liabilities 1,092 1,402
--------- -----------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE COMPANY:
Share capital 87 87
Share premium 7,057 6,967
Warrants 20 20
Accumulated deficit (3,670) (3,057)
Capital reserve (294) (51)
--------- -----------
3,200 3,966
Non-controlling interests (9) -
--------- -----------
Total equity 3,191 3,966
--------- -----------
Total liabilities and equity 4,283 5,368
========= ===========
The accompanying notes form an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended Year ended
30 June 31 December
------------------
2023 2022 2022
-------- -------- ------------
Unaudited Audited
------------------ ------------
Euros in thousands
(Except per share amounts)
--------------------------------
Gain on earn-in arrangement - 1,614
General and administrative expenses (564) (415) (1,504)
-------- -------- ------------
Operating income / (loss) (564) (415) 110
-------- -------- ------------
Financial expenses (38) (102) (290)
-------- -------- ------------
Loss before taxes on income (602) (517) (180)
Share of loss of joint venture 20 - -
-------- -------- ------------
Net loss (622) (517) (180)
-------- -------- ------------
Other comprehensive loss - - -
Total comprehensive loss (622) (517) (180)
======== ======== ============
Net loss attributable to:
Equity holders of the Company (613) (517) (84)
Non-controlling interests (9) - (96)
-------- -------- ------------
(622) (517) (180)
======== ======== ============
Total comprehensive loss attributable
to:
Equity holders of the Company (613) (517) (84)
Non-controlling interests (9) - (96)
-------- -------- ------------
(622) (517) (180)
======== ======== ============
Loss per share (in Euro) - basic and
diluted (0.01) (0.01) (0.00)
======== ======== ============
The accompanying notes form an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
--------------------------------------------------------
A Non-
Share Share Wa rr ccumulated controlling Total
capital premium ants Reserves deficit Total interests equity
-------- -------- ----- -------- ----------- ------ ------------ -------
Unaudited
-------------------------------------------------------------------------------
Euros in thousands
-------------------------------------------------------------------------------
As at 1 January
2023 (audited) 87 6,967 20 (51) (3,057) 3,9 66 - 3,9 66
Loss for the ( 613 ( 622
period ( 613 ) ) (9) )
Issue of shares
to employees
and consultants 90 90 90
Capital reserve
arising from
transaction with
non-controlling
interest in
joint venture (243) (243) (243)
As at 30 June
2023 87 7,057 20 (294) (3,628) 3,200 (9) 3,191
======== ======== ===== ======== =========== ====== ============ =======
Attributable to equity holders of the Company
--------------------------------------------------------
Non-
Share Share Wa rr A ccumulated controlling Total
capital premium ants Reserves deficit Total interests equity
-------- -------- ----- -------- ------------ ----- ------------ -------
Unaudited
-------------------------------------------------------------------------------
Euros in thousands
-------------------------------------------------------------------------------
As at 1 January
2022 (audited) 87 6,878 20 327 (2,973) 4,339 243 4,582
Loss for the
period - - - - (517) (517) - (517)
Payment on
account of a
cquisition
of
non-controlling
interests - - - - - - (61) (61)
-------- -------- ----- -------- ------------ ----- ------------ -------
As at 30 June
2022 87 6,878 20 327 (3,490) 3,822 182 4,004
======== ======== ===== ======== ============ ===== ============ =======
The accompanying notes form an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
--------------------------------------------------------
A Non-
Share Share Wa rr ccumulated controlling Total
capital premium ants Reserves deficit Total interests equity
-------- -------- ----- -------- ----------- ------ ------------ -------
Audited
-------------------------------------------------------------------------------
Euros in thousands
-------------------------------------------------------------------------------
As at 1 January
2022 87 6,878 20 327 (2,973) 4,339 243 4,582
Loss for the year ) 84) (84) (96) (180)
Acquisition of
non-controlling ( 378 ( 289 ( 320
interests - 89 - ) - ) (31) )
Change in
non-controlling
interests
arising from
deconsolidation - - - - - - (116) (116)
-------- -------- ----- -------- ----------- ------ ------------ -------
As at 31 December
2022 87 6,967 20 (51) (3,057) 3,9 66 - 3,9 66
======== ======== ===== ======== =========== ====== ============ =======
The accompanying notes form an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
------------------
2023 2022 2022
------- --------- ------------
Unaudited Audited
------------------ ------------
Euros in thousands
--------------------------------
Cash flows from operating activities:
Net loss (622) (517) (180)
Adjustments to the profit or loss
items:
Gain on earn-in arrangement - (977)
Depreciation 23 - 47
Share of loss of joint venture 20 - -
Accrued interest on capital note and
loans from non-controlling interest
in subsidiary 35 32 75
Decrease (increase) in other receivables (3) - (147)
Increase (decrease) in other payables (265) (19) (637)
Increase (decrease) in trade payables 10 (87) (89)
Increase (decrease) in liability to
non-controlling interest in subsidiary - 16 369
Increase (decrease) in severance pay - (8) -
------- --------- ------------
Net cash used in operating activities (802) (583) (1,539)
------- --------- ------------
Cash flows from investing activities:
Net cash outflow from acquisition
of subsidiaries - (15) -
Proceeds from sale of control rights
in subsidiaries - 977
Decrease in cash upon deconsolidation
of subsidiaries, net - (33)
Additions to property, plant and equipment - (20) (20)
Investment in affiliate (56) - -
Decrease in deposits - 13 -
Additions to intangible assets - (640) (1,265)
------- --------- ------------
Net cash used in investing activities (56) (662) (341)
------- --------- ------------
Cash flows from financing activities:
Cash paid for acquisition of non-controlling
interest - - (320)
Advance on account of acquisition
of non-controlling interests - (61) -
Net cash used in financing activities - (61) (320)
------- --------- ------------
Net change in cash and cash equivalents (858) (1,306) (2,200)
Cash and cash equivalents at beginning
of period 1,184 3,384 3,384
------- --------- ------------
Cash and cash equivalents at end of
period 326 2,078 1,184
======= ========= ============
The accompanying notes form an integral part of the interim
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
------------------
2023 2022 2022
-------- -------- ------------
Unaudited Audited
------------------ ------------
Euros in thousands
--------------------------------
Supplemental disclosure of non-cash
activities:
Non-current receivable in respect
of earn-in arrangement - - 637
======== ======== ============
Issuance of shares in consideration
for conversion of convertible loan
notes - - 637
======== ======== ============
- -
======== ======== ============
Issue of shares to non-controlling
interests as part of share swap - - 89
======== ======== ============
Issue of shares to employees and consultant 90 - -
======== ======== ============
The accompanying notes form an integral part of the interim
consolidated financial statements.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1:- GENERAL INFORMATION
a. Firering Strategic Minerals PLC (the "Company") is a holding
company for a group of exploration and development companies set up
to focus on developing assets towards the ethical production of
critical metals. The Company was incorporated on 8 May 2019 in
Cyprus. The address of its registered office is Ioanni Stylianou 6,
2(nd) Floor, Office 202, 2003, Nicosia, Cyprus.
In November 2021 the Company completed its Initial Public
Offering and admission to trading on the AIM, a market operated by
the London Stock Exchange.
The Company owns 75% of the issued share capital of Bri Coltan
SARL ("Bri Coltan") a company incorporated in Cote d'Ivoire. The
principal activity of the subsidiary is the exploration and
development of mineral projects (in particular, columbite-
tantalite).
As more fully described in Notes 1, 6 and 19 to the 2022 annual
consolidated financial statements, the Company has an investment in
a joint venture, Marvella SA ("Marvella"), which was originally
established as an SPV. The Company is in the administrative process
of implementing transfers to Marvella of its investments in the
following entities:
(i) 90% of the issued share capital of Atex Mining Resources
SARL ("Atex") a company incorporated in Cote d'Ivoire. The
principal activity of Atex is the exploration and development of
mineral projects (in particular, lithium and
columbite-tantalite).
(ii) 51% of the issued share capital of Alliance Minerals
Corporation SARL ("Alliance"), a company incorporated in Cote
d'Ivoire. Alliance holds an exploration license request at an area
bordering Atex.
In November 2022 the Company signed an earn-in agreement with
Ricca Resources Pty Limited ("Ricca"), an Australian diversified
minerals company to advance the Atex Lithium-Tantalum Project and
the adjacent Alliance exploration licence (once granted). According
to the agreement, Ricca will have the exclusive right to undertake
and fund at Ricca's sole cost the exploration of the Atex Project
and adjacent Alliance licence, which exploration is to be
undertaken through Marvella.
The Company holds 100% of the equity interest of Marvella as of
the date of the financial statements and will continue to hold the
majority of the equity interest until the completion of stage 4 of
the earn-in period. However, according to the shareholders'
agreement signed with Ricca, the Company and Ricca have joint
control of Marvella. Accordingly, the investment in Marvella is
considered a joint venture which is accounted for using the equity
method.
b. Going concern:
The Board of Directors and Group management have assessed the
ability of the Group to continue as a going concern. In respect of
its mineral projects, funding has been obtained as follows:
Atex and Alliance
As described in Note 1a. above, in 2022 the Company signed an
earn-in agreement with Ricca which has agreed to fund at its sole
cost the two exploration projects of Marvella for a period that may
extend to 4-5 years from the reporting date.
Subsequent to 30 June 2023, the Company was informed that Ricca
is evaluating various alternatives to raise additional funds in
order to continue its funding of Marvella's mining activities.
Bri Colton
As described in Note 7 to the annual consolidated financial
statements, in 2022 the Company has been provided with a long-term
credit facility of up to EUR 7.16 million which is intended be used
to develop this project, with the objective of obtaining further
funding.
The Group's mining operations are at an early stage of
development and the continuing success of the Group will depend on
the Group's ability to manage its mineral projects. Presently, the
Group has no projects producing positive cash flow and the Group is
likely to remain cash flow negative in the near future. The Group's
ultimate success will depend on its ability to generate positive
cash flow from active mining operations in the future and its
ability to secure external funding for its development
requirements. However, there is no assurance that the Group will
achieve profitability or positive cash flow from its operating
activities.
As more fully described in Note 5, in September 2023 the Company
completed a Placing of Ordinary shares with total gross cash
proceeds of GBP756,000 (c. EUR870,000).
Based on a review of the Group's budget and forecast cash flows
including the proceeds of the Placing described above, there is a
reasonable expectation that the Group will have adequate resources
to continue in operational existence and meet its obligations as
they become due for at least a period of twelve months from the
date of approval of the financial statements. Thus, the going
concern basis of accounting has continued to be applied in
preparing these financial statements.
c. These financial statements have been prepared in a condensed
format as of 30 June 2023 and for the six months then ended
("interim consolidated financial statements"). These financial
statements should be read in conjunction with the Company's annual
financial statements as of 31 December 2022 and for the year then
ended and accompanying notes ("annual consolidated financial
statements").
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of the interim consolidated financial
statements:
The interim consolidated financial statements have been prepared
in accordance with IAS 34, "Interim Financial Reporting".
The accounting policies adopted in the preparation of the
interim consolidated financial statements are consistent with those
followed in the preparation of the annual consolidated financial
statements, except as described in Note 3 below.
NOTE 3:- INITIAL APPLICATION OF AMMENTS TO FINANCIAL REPORTING STANDARDS
1. Amendment to IAS 8, "Accounting Policies, Changes to Accounting Estimates and Errors":
In February 2021, the IASB issued an amendment to IAS 8,
"Accounting Policies, Changes to Accounting Estimates and Errors"
("the Amendment"), in which it introduces a new definition of
"accounting estimates".
Accounting estimates are defined as "monetary amounts in
financial statements that are subject to measurement uncertainty".
The Amendment clarifies the distinction between changes in
accounting estimates and changes in accounting policies and the
correction of errors.
The Amendment is to be applied prospectively for annual
reporting periods beginning on or after January 1, 2023 and is
applicable to changes in accounting policies and changes in
accounting estimates that occur on or after the start of that
period.
The application of the Amendment did not have a material impact
on the Company's interim financial statements.
NOTE 3:- INITIAL APPLICATION OF AMMENTS TO FINANCIAL REPORTING STANDARDS (Cont.)
2. Amendment to IAS 12, "Income Taxes":
In May 2021, the IASB issued an amendment to IAS 12, "Income
Taxes" ("IAS 12"), which narrows the scope of the initial
recognition exception under IAS 12.15 and IAS 12.24 ("the
Amendment").
According to the recognition guidelines of deferred tax assets
and liabilities, IAS 12 excludes recognition of deferred tax assets
and liabilities in respect of certain temporary differences arising
from the initial recognition of certain transactions. This
exception is referred to as the "initial recognition exception".
The Amendment narrows the scope of the initial recognition
exception and clarifies that it does not apply to the recognition
of deferred tax assets and liabilities arising from transactions
that are not a business combination and that give rise to equal
taxable and deductible temporary differences, even if they meet the
other criteria of the initial recognition exception.
The Amendment is effective for annual reporting periods
beginning on or after January 1, 2023. In relation to leases and
decommissioning obligations, the Amendment is applied commencing
from the earliest reporting period presented in the financial
statements in which the Amendment is initially applied. The
cumulative effect of the initial application of the Amendment is
recognized as an adjustment to the opening balance of retained
earnings (or another component of equity, as appropriate) at that
date.
The application of the Amendment did not have a material impact
on the Company's interim financial statements.
3. Amendment to IAS 1 - Disclosure of Accounting Policies:
In February 2021, the IASB issued an amendment to IAS 1,
"Presentation of Financial Statements" ("the Amendment"), which
replaces the requirement to disclose 'significant' accounting
policies with a requirement to disclose 'material' accounting
policies. One of the main reasons for the Amendment is the absence
of a definition of the term 'significant' in IFRS whereas the term
'material' is defined in several standards and particularly in IAS
1.
The Amendment is effective for annual periods beginning on or
after January 1, 2023.
The above Amendment did not have an effect on the Company's
interim consolidated financial statements. However, the Company is
evaluating whether the Amendment will affect the disclosures of
accounting policies in the Company's annual consolidated financial
statements.
NOTE 4: - INVESTMENT IN JOINT VENTURE (MARVELLA)
Summarized financial data of the joint venture.
30 June 31 December
2023 2022
Unaudited Audited
Euros in thousands
----------------------
Statement of financial position of
joint venture at reporting date:
Current assets 181 178
Property, plant and equipment 105 112
Intangible assets 2,704 2,314
Current liabilities (3) )1(
Liability to non-controlling interest
in subsidiary (181) (161)
Loan from Firering (2,125) (2,073)
Net assets 681 369
Non-controlling interests (944) (369)
Equity attributable to equity holders
of the joint venture (1) 263 -
========= ===========
Total equity (681) (369)
--------- -----------
Investment in joint venture (2) 1866 2,073
(1) Comprised of:
Capital reserve from transaction with non-controlling interest (*) 243
Accumulated deficit 20
263
(*) In March 2023 Marvella exercised the remaining existing
option originally between Firering and Atex's shareholder and
purchased an additional 13% of the issued shares in Atex and
reached a total holding of 90% in Atex for a total consideration of
EUR259 thousand. According to the agreement with Ricca Resources,
Ricca paid EUR200 thousand and the balance of EUR59 thousand was
funded by the Company. Marvella recorded the difference between the
total consideration and the carrying amount of the non-controlling
interest in the amount of EUR243 thousand as a capital reserve in
equity.
(2) Investment is net of Company's share of loss and capital
reserve in joint venture of EUR263 thousand.
For the period ending 30 June 2023, Ricca funded exploration
expenditures of the joint venture in the amount of EUR843 thousand,
of which EUR253 thousand was received in 2022.
NOTE 5:- SUBSEQUENT EVENT
On 21 September 2023, the Company announced that it had
completed a Placing of 11,630,769 new Ordinary shares to certain
investors at a price of 6.5 pence per shares for total gross
proceeds of GBP756,000 (EUR870 thousand). Certain directors and
their related parties have confirmed their intention to subscribe
for approximately 1,076,922 Ordinary shares at the Placing price by
funding an additional GBP70,000 (EUR81,000). It is expected that
they will participate in the intended subscription shortly after
the publication of the Company's interim results for the six months
ended 30 June 2023.
In connection with the Placing, the Company has issued to the
broker 581,538 warrants to purchase Ordinary shares at an exercise
price of 6.5 pence per share. The warrants may be exercised at any
time during a period ending three years from the date of the
Admission to trading of the above Ordinary shares.
- - - - - - - - - - -
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END
IR VQLFLXKLZBBL
(END) Dow Jones Newswires
September 27, 2023 02:00 ET (06:00 GMT)
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