ARKLE RESOURCES PLC

Annual / Quarterly Financial Statement • Jun 25, 2025

National Storage Mechanism | Additional information

RNS Number : 2467O

Arkle Resources PLC

25 June 2025

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.

25 June 2025

Arkle Resources PLC

("Arkle", the "Group" or the "Company")

Final Results for the Year Ended 31 December 2024

Arkle Resources PLC (LON: ARK), the Gold, Lithium and Zinc exploration and development company, is pleased to announce its audited results for the year ending 31 December 2024.

CHAIRMAN'S STATEMENT

We are explorers for zinc, gold and lithium. We work in Ireland and in Botswana. We have been very active on our licences in Botswana while our exploration partners in Irish zinc drilled during 2024 and recently announced some very positive findings.

In Botswana our exploration for lithium discovered brines over the entire 837sq km of our two licences. Samples analysed in Australia found lithium in all 20 samples though grades were low. Of potentially far greater significance are good grades of magnesium which until recently complicated lithium recovery. New technology, Direct Lithium Extraction (DLE), is showing great promise. It uses membranes to extract the magnesium prior to extracting the lithium. Should further exploration across the licences prove up the magnesium and lithium grades there is the possibility of a commercial discovery. Significant drilling is required but given the shallow depth, holes are fast and cheap.

In Ireland, the focus has been on our 5 licence Stonepark block which already contains 5.1 million tons of 11.3% combined lead and zinc. We are in a joint venture on this block with Group Eleven, a Toronto listed base metal explorer. The partnership is 77.64% Group Eleven and 22.36% Arkle. Group Eleven is the operator. Group Eleven holds significant licences to the South and Southwest of the Arkle block. Drilling on these licences has found significant discoveries of zinc and lead at Ballywire and Carrickittle. The exploration by Group Eleven on this ground has led them to postulate the existence of a mineral trend which they call the Pallas Green Corridor stretching Northeast from Ballywire through Carrickittle onto Stonepark ground touching the Stonepark discovery and into the 45 million ton Pallas Green base metal discovery.

In testing this corridor Group Eleven drilled four holes in 2024, three on Stonepark ground and one on their 100% owned Carrickittle ground. The results of this drilling while producing little mineralisation identified what they are calling the "Kilteely Prospect". This area, the chief executive of the Group Eleven has stated to be the best drill target in Ireland. Further drilling will be undertaken.

Arkle also holds hard rock lithium bearing ground in Ireland, four licences in the Aughrim area of Co. Wicklow. Sampling has discovered lithium traces in spodumene.

The Company also holds three hard rock lithium licences in Zimbabwe. Sampling has found lithium traces. There are ongoing discussions to bring in a local partner to do further work. 

Arkle has held gold licences in Ireland since it was founded. Most work has been done in the Avoca area of Wicklow. Despite some tantalising results we have been unable to prove continuity which is necessary to reach commerciality. After a serious review of potential, the four licences were not renewed.

We maintain our gold licence in the Meeneragh area of Donegal. Drilling results over the years have shown good potential. The ground has strong similarities to that of the large Tyrone gold despite some 60km away in Tryron. 

The Markets

We are interested in zinc, lead, gold, lithium and now magnesium. Demand for zinc and lead has driven prices to high levels currently zinc is in excess of $2,600 a tonne, while lead is almost $2,000 a tonne.

Zinc is used in a wide variety of industrial uses and demand is growing in emerging economies. Lead has seen a renaissance with the growth of Electric Vehicles. While demand grows few new mines have come on stream. Exploration has declined substantially so no discoveries mean no new mines, so as existing mines are worked out prices must rise.

Gold at $3,300 / oz is at a near all time high. There are good and bad points in this. The bad is that gold is a store of value so in very uncertain times gold increases in price. So it is today. The good point is that gold exploration is encouraged by this price. But while gold producers have risen in price gold explorers have not benefited as much.

Lithium prices appear to defy the rules of economics. Lithium demand is expected to explode in the coming decades due to the growth in Electric Vehicles. There is a scarcity of supply yet the price is at a four-year low. The exploration is not that complicated. China controls 90% of the lithium oxide market - the material required for batteries. They set the price. By keeping the price low they deter interest in the processing end of the cycle. At the extractive end there are two ways to get lithium - hard rock or brines. Most hard rock mining is from pegmatites containing spodumene which have lithium. Generally, lithium grades in hard rock are low so extracting cost per pound of lithium are high. The Arkle hard rock lithium licences in Ireland and Zimbabwe are like this. In recent years major successful hard rock mine development have been in Australia.

The future appears to be in lithium brines. This is where lakes evaporate leaving a hard salty crust and just below the crust mushy liquids or brines which may contain lithium. Most lithium brine commercial developments have taken place in large salt pans in Chile and Argentina. Over half of the estimated world resources of lithium are contained in the massive salt pans of Bolivia. Politics, remoteness and technical issues have delayed any significant development of these pans. In particular, levels of magnesium in the brines adversely affected lithium recovery.

Arkle shareholders and directors have significant knowledge of this area. This knowledge led Arkle to acquire 837sq km of ground in the Makgadikgadi Salt Pans in Botswana. Very little previous work has been done in the area. We surveyed and drilled. We found lithium but also significant grades of magnesium. Historically this would have rendered the area non-commercial. But a new technology currently being introduced for lithium has the beneficial side effect of allowing magnesium recovery. Economics look very different if magnesium and lithium can be extracted from the brines. Magnesium is expected to grow at over 5% annually. It is used in aerospace and adds strength to aluminium and titanium. Magnesium alloys are widely used in missiles and other aerospace segments. In common with lithium, magnesium prices have been very volatile in recent years and is currently around $2,000 a tonne.

Extracting magnesium from brines using Direct Lithium Extraction (DLE) technology projects an 80% plus recovery. The brines go through a process which first recovers up to 90% of contained magnesium then the brines go through a lithium recovery process.

Future

Zinc, lithium and magnesium are minerals for the future. Zinc and lithium are "critical minerals". Critical minerals are those which the EU and US deem essential to future technology developments. The EU has promised huge sums for mining and infrastructure development. But nothing for exploration. Without exploration there can be no mines. Yet, exploration expenditure is falling worldwide.

The AIM market in London, the source of most exploration funds has in recent years, like other junior markets struggled to attract new investors. This affects share prices, we believe that our intrinsic value per share is above the depressed market price.  

We are fortunate that our Stonepark joint venture gives us the option of diluting our stake or participating. A low share price favours dilution which we used in the recent exploration programme. Any new funds raised will be invested in a planned drilling programme for lithium in Botswana. The initial good results need to be reinforced by a shallow drilling programme to recover 20 tonnes of brines for shipment to India where this will be processed to recover magnesium and lithium.

We are actively seeking ways to diversify our shareholder base and to attract new investors. We continue to evaluate a stream of proposals.

John Teeling

Chairman

25 June 2025

Enquiries:

Arkle Resources PLC
John Teeling, Chairman	+353 (0) 1 833 2833
Jim Finn, Finance Director	+353 (0) 1 833 2833
SP Angel Corporate Finance LLP Nominated Adviser & Joint Broker
Matthew Johnson	+44 (0) 203 470 0470
Adam Cowl
First Equity Limited
Joint Broker
Jason Robertson	+44 (0) 207 374 2212
BlytheRay	+44 (0) 207 138 3204
Megan Ray
Teneo
Luke Hogg	+353 (0) 1 661 4055
Mollie McLernon
Molly Mooney

ARKLE RESOURCES PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024

	2024 €	2023 €
Administrative expenses	(271,223)	(276,759)
Impairment of exploration and evaluation assets	(1,769,948)	-
Loss from operations	(2,041,171)	(276,759)
Profit/(loss) due to fair value volatility of warrants	39,421	(20,262)
Loss before tax	(2,001,750)	(297,021)
Tax expense	-	-
Loss for the year	(2,001,750)	(297,021)
Total comprehensive income	(2,001,750)	(297,021)
Earnings per share attributable to the ordinary equity holders of the parent
	cents	cents
Profit/(Loss) per share - Basic & Diluted	(0.43)	(0.07)

ARKLE RESOURCES PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024

	2024 €	2023 €
Assets
Non-current assets
Intangible assets	2,570,085	4,089,667
Current assets
Other receivables	357	788
Cash and cash equivalents	27,303	91,082
	27,660	91,870
Total assets	2,597,745	4,181,537
Liabilities
Current liabilities
Trade and other liabilities	(478,464)	(340,026)
Warrants	(136,532)	(175,952)
Total liabilities	(614,996)	(515,978)
Net assets	1,982,749	3,665,559
Equity
Called-up Share capital - Deferred	992,337	992,337
Called-up Share capital - Ordinary	1,412,027	1,142,027
Share premium reserve	7,064,059	7,015,119
Share based payments reserve	156,494	156,494
Retained deficit	(7,642,168)	(5,640,418)
Total Equity	1,982,749	3,665,559

ARKLE RESOURCES PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024

	Called up Share Capital Deferred	Called up Share Capital Ordinary	Share Premium	Share Based Payment Reserve	Retained Deficit	Total
	€	€	€	€	€	€
At 1 January 2023	992,337	988,456	6,922,562	156,494	(5,343,397)	3,716,452
Shares issued	-	153,571	92,557	-	-	246,128
Loss for the year	-	-	-	-	(299,214)	(299,214)
At 31 December 2023	992,337	1,142,027	7,015,119	156,494	(5,640,418)	3,665,559
Shares issued	-	270,000	48,940	-	-	318,940
Loss for the year					(2,001,750)	(2,001,750)
At 31 December 2024	992,337	1,412,027	7,064,059	156,494	(7,642,168)	1,982,749

ARKLE RESOURCES PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024

	2024 €	2023 €
Cash flows from operating activities
Loss for the year	(2,001,750)	(297,021)
Adjustments for
Impairment	1,769,948	-
Fair Value movement of warrants	(39,421)	20,262
Foreign exchange	(1,071)	(2,753)
	(272,294)	(279,512)
Movements in working capital:
Decrease in trade and other receivables	431	6,140
Increase in trade and other payables	138,439	14,227
Net cash used in operating activities	(133,424)	(259,145)
Cash flows from investing activities
Payments for exploration and evaluation	(250,366)	(98,644)
Net cash used in investing activities	(250,366)	(98,644)
Cash flows from financing activities
Proceeds from issue of equity shares	318,940	246,128
Share issue expenses	-	-
Net cash generated from financing activities	318,940	246,128
Net cash decrease in cash and cash equivalents	(64,850)	(111,661)
Cash and cash equivalents at the beginning of year	91,082	199,990
Exchange gains on cash and cash equivalents	1,071	2,753
Cash and cash equivalents at the end of the year	27,303	91,082

Notes:

1.    Accounting Policies

There were no changes in accounting policies from those used to prepare the Group's Annual Report for financial year ended 31 December 2023. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and in accordance with the Companies Act 2014.

2.    Earnings per Share

Basic earnings per share is computed by dividing the loss after taxation for the year attributable to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the profit or loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

The following table sets forth the computation for basic and diluted earnings per share (EPS):

	2024 €	2023 €
Numerator
For basic and diluted EPS Loss after taxation	(2,001,750)	(297,021)
Denominator	No.	No.
For basic and diluted EPS	470,126,065	402,955,811
Basic EPS	(0.43c)	(0.07c)
Diluted EPS	(0.43c)	(0.07c)
Basic and diluted loss per share are the same as the effect of the outstanding share options and warrants is anti-dilutive.

3.    Going Concern

The Group and Company incurred a loss for the financial year of €2,001,750 (2023: €297,021) and the Group had net current liabilities of €587,336 (2023: €424,108) at the statement of financial position date leading to concern about the Company and Group's ability to continue as a going concern.

The Group had a cash balance of €27,303 (2023: €91,082) at the statement of financial position date.

Included in current liabilities is an amount of €307,500 (2023: €262,500) owed to key management personnel in respect of remuneration due at the balance sheet date. Key management have confirmed that they will not seek settlement of these amounts in cash for a period of at least one year after the date of approval of the financial statements or until the Group has generated sufficient funds from its operations after paying its third party creditors.

The directors have prepared cashflow projections for a period of at least twelve months from the date of approval of these financial statements. As the Group and the Company are not revenue or cash generating they rely on raising capital from the public market. The cash flow projections prepared by the Group and Company indicate that additional finances will be required to meet the obligations of the Group and Company for a period of at least twelve months from the date of approval of these financial statements. The directors are confident that additional capital can be raised as required. The Group raised £270,000 during the year from a placing. 

As in previous years the Directors have given careful consideration to the appropriateness of the going concern basis in the preparation of the financial statements and believe the going concern basis is appropriate for these financial statements. The financial statements do not include any adjustment to the carrying amount, or classification of assets and liabilities, if the Company or Group was unable to continue as a going concern.

4.    Intangible Assets

	Group	Group
	2024 €	2023 €
Exploration and evaluation assets:
Cost:
At 1 January	4,089,667	3,991,023
Additions	250,366	98,644
Impairment	(1,769,948)	-
At 31 December	2,570,085	4,089,667
Carrying amount:
At 31 December	2,570,085	4,089,667

In 2007 the Group entered into an agreement with Teck Cominco which gave Teck Cominco the option to earn a 75% interest in a number of other licences held by the Group. Teck Cominco had to spend CAD$3m to earn the interest. During 2012 the relevant licences were transferred to a new company, TILZ Minerals Limited, which at 31 December 2024 was owned 23.44% (2023: 23.44%) by Limerick Zinc Limited (subsidiary of Arkle Resources plc) and 76.56% (2023: 76.56%) by Group Eleven Resources Corp (third party).

On 13 September 2017 the board of Arkle Resources plc were informed that Group Eleven Resources Corp. a private company, has acquired the 76.56% interest held by Teck Ireland in TILZ Minerals. Arkle Resources plc owns the remaining 23.44%.

The Group's share of expenditure on the licences continues to be capitalised as an exploration and evaluation asset. The Group is subject to cash calls from Group Eleven Resources Corp. in respect of the financing of the ongoing exploration and evaluation of these licences. In the event that the Group decides not to meet these cash calls its interest in TILZ Minerals Limited may be diluted accordingly.

On 23 June 2022 the Company announced it had been granted three licences covering 163 hectres to prospect for Lithium in the Insiza District of the Matabeleland South Province of Zimbabwe. The Directors believe that these licences, which cover a small area, represent a low-cost entry into one of the largest lithium producing countries in the world.

On 15 December 2023 the Company announced that it has been awarded two exploration licences in the Makgadikgadi Salt Pans in North-Eastern Botswana. The licences, PL 075/2023 and PL 0148/2023, cover 312 and 525 sq kilometres respectively in size.  The licences are awarded to prospect for lithium in the Salt Pans.

The Company incurred expenditure to date of €1,761,948 on licences relating to the Mine River Gold Project.  During the current year these licences lapsed and were not renewed. The directors decided to fully impair the expenditure and accordingly, an impairment charge of €1,761,948 was recorded in the current year.  A further impairment charge of €8,000 was recorded relating to expenditure on the Hendrick licence that was not renewed in the current year.

The realisation of the intangible assets is dependent on the discovery and successful development of economic reserves which is subject to a number of risks as outlined below. Should this prove unsuccessful the carrying value included in the statement of financial position would be written off to the statement of comprehensive income.

- uncertainties over development and operational risks;

- compliance with licence obligations;

-ability to raise finance to develop assets;

- liquidity risks; and

- going concern risks.

The directors are aware that by its nature there is an inherent uncertainty in such exploration and evaluation expenditure as to the value of the asset. Having reviewed the carrying value of exploration and evaluation of assets at 31 December 2024 the directors are satisfied that the value of the intangible asset is not less than carrying value.

Segmental Analysis               

	Group	Group
	2024 €	2023 €
Limerick	1,802,378	1,705,480
Rest of Ireland	671,731	2,355,172
Zimbabwe	32,058	29,015
Botswana	63,918	-
	2,570,085	4,089,667

5.    Trade payables

	Group	Group
	2024 €	2023 €
Current assets:
Trade and other payables	155,964	63,526
Accruals	322,500	276,500
	478,464	340,026

It is the Group's normal practice to agree terms of transactions, including payment terms, with suppliers and provided suppliers perform in accordance with the agreed terms, it is the Group's policy that payment is made between 30 - 45 days. Included in accruals are amounts due for directors' remuneration of €307,500 (2023: €262,500) accrued but not paid at year end.

The carrying value of trade and other payables approximates to their fair value.

6.    Share Capital and Share Premium

	2024 €	2023 €
Authorised
2,000,000,000 Ordinary shares of €0.0025 each	5,000,000	2,500,000
500,000,000 Deferred shares of €0.0075 each	3,750,000	3,750,000
	8,750,000	6,250,000

On 25 July 2024 a resolution was passed to increase the authorised share capital of the Company from €6,250,000 to €8,750,000 by the creation of 1,000,000,000 ordinary shares of €0.0025 each in the capital of the Company.

Deferred Shares - nominal value of €0.0075
	Number	Share  Capital €	Share Premium €
At 1 January 2023 and 2024	132,311,591	992,337	-
At 31 December 2023 and 2024	132,311,591	992,337	-
Ordinary Shares - nominal value of €0.0025
Allotted, called-up and fully paid:
	Number	Share Capital	Share Premium
		€	€
At 1 January 2023	395,382,426	988,456	6,922,562
Issued during the year	61,428,571	153,571	92,557
At 31 December 2023	456,810,997	1,142,027	7,015,119
Issued during the year	108,000,000	270,000	48,940
At 31 December 2024	564,810,997	1,412,027	7,064,059

Deferred share capital

The deferred share reserve comprises of the value of the deferred shares that arose when the company divided the ordinary shares via special resolution on 22 April 2020 the shares into 500,000,000 deferred shares of 0.75 cent each and 500,000,000 ordinary shares of 0.25 cent each.

Called up ordinary share capital

The called up ordinary share capital reserve comprises of the nominal value of the issued share capital of the company.

Share premium

The share premium reserve comprises of a premium arising on the issue of shares. Share issue expenses are deducted against the share premium reserve when incurred.

Movement in shares

On 9 May 2024, a total of 108,000,000 shares were issued at a price of 0.25p per share to provide additional working capital and fund development costs.  For each share subscribed for, the investors also received one warrant to subscribe for an additional ordinary share at a price of 0.35p per share until 9 May 2026.

7.    Share Based Payments

Equity-settled share-based payments are measured at fair value at the date of grant.

The Group plan provides for a grant price equal to the average quoted market price of the ordinary shares on the date of grant.

Share Options	31 December 2024		31 December 2023
	Options	Weighted average exercise price in pence	Options	Weighted average exercise price in pence
Outstanding at beginning of year	16,100,000	1.32	16,100,000	1.32
Granted during the year	-	-	-
Expired during the year	-	-	-	-
Outstanding at end of year	16,100,000	1.32	16,100,000	1.32
Exercisable at end of year	16,100,000	1.32	16,100,000	1.32

The terms of the options granted do not contain any market conditions within the meaning of IFRS 2.

8.    Warrants

	31 December 2024		31 December2023
NUMBER	Number of Warrants	Weighted average exercise price in pence	Number of Warrants	Weighted average exercise price in pence
Outstanding at beginning of  year	111,428,571	0.42	50,000,000	0.50
Granted during the year	108,000,000	0.35	61,428,571	0.35
Expired during the year	(50,000,000)	0.50		-
Exercised during the year	-	-		-
Outstanding and exercisable at the end of the year	169,428,571	0.35	111,428,571	0.42

	2024 €	2023 €
FAIR VALUE
At 1 January	175,952	155,690
FV of warrants issued during the year at grant date	106,641	117,509
FV of warrants expired during the year	(1,465)	-
Movement in fair value	(144,597)	(97,247)
At 31 December	136,532	175,952

	2024 €	2023 €
Profit/(Loss) due to Fair Value Volatility of Warrants
Fair Value movements warrants b/fwd	144,597	97,247
Fair Value of warrants expired	1,465	-
Fair Value new warrants granted	(106,641)	(117,509)
Movement for the year	39,421	(20,262)

On 24 November 2024, a total of 50,000,000 warrants with an exercise price of 0.50p per warrant expired and the fair value of €1,465 was expensed to the Consolidated Statement of Comprehensive Income. The fair value was calculated using the Black-Scholes valuation model.

On 9 May 2024, a total of 108,000,000 warrants with an exercise price of 0.35p per warrant were granted as part of the placing. The fair value of €106,641 to 31 December 2024 was expensed to the Consolidated Statement of Comprehensive Income.  The fair value was calculated using the Black-Scholes valuation model.

The inputs into the Black-Scholes valuation model were as follows:

Grant 9 May 2024
Weighted average share price at date of grant (in pence)	0.21p
Weighted average exercise price (in pence)	0.35p
Expected volatility	93.19%
Expected life	2 years
Risk free rate	4.5%
Expected dividends	none

Expected volatility was determined by management based on their cumulative experience of the movement in share prices.

The terms of the warrants granted do not contain any market conditions within the meaning of IFRS 2.

9.    Post Balance Sheet Events

There were no material post balance sheet events affecting the Company or Group.

10.  Annual General Meeting

The Company's Annual General Meeting will be held at held at the Hotel Riu Plaza The Gresham, 23 O'Connell Street Upper, North City Dublin, D01 C3W7, Ireland on 30 July 2025 at 10.00am.

General Information

The financial information set out above does not constitute the Company's financial statements for the year ended 31 December 2024.  The financial information for 2023 is derived from the financial statements for 2023 which have been delivered to the Companies Registration Office.  The auditors have reported on 2023 statements; their report was unqualified. The financial statements for 2024 will be delivered to the Companies Registration Office.

A copy of the Company's Annual Report and Accounts for 2024 will be mailed to all shareholders shortly and will also be available for collection from the Company's registered office, 162 Clontarf Road, Dublin 3, Ireland.  The annual report will shortly be available for viewing at Arkle's website at www.arkleresources.com

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