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ATERIAN PLC Interim / Quarterly Report 2021
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Interim / Quarterly Report
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National Storage Mechanism | Additional information 
RNS Number : 3597M
Eastinco Mining and Exploration PLC
21 September 2021
EASTINCO MINING AND EXPLORATION PLC
("EME" OR THE "COMPANY")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2021
Chairman's Statement
I am pleased to announce the unaudited Interim Results of the Company for the half-year ending 30th June 2021.
These accounts relate to the Company for the first half of 2021 and reflect a loss of £252,000 from administrative costs, corresponding to the Company's expenditure on overheads, operational costs, legal and professional expenses primarily related to the Musasa JV operation in Rwanda. Over the period, management maintained its COVID-19 protocols for cash management and refrained from receiving salaries. We anticipate shortly the grant of Employee Benefit Trust options and/or shares to the management who have worked tirelessly over this period.
The Company received approximately £150,000 (or $200,000) of share subscription for cash and services from the issue of 11,604,934 new ordinary shares and 11,604,934 3-pence warrants (expiring in August 2024) by a new shareholder, and two existing shareholders.
Eastinco Update
In January, the Company announced the advanced negotiation for an Offtake Agreement for the Musasa mine tantalum and tin production. The potential offtake partner is a wholly owned subsidiary of multi-national Noble Group Holdings. At the time of this announcement metal prices in Kigali were around $110/kg, and now tantalum is commanding prices in excess of $165/kg. We look forward to completing negotiations with the restart of operations.
During the reporting period the COVID-19 pandemic seriously impacted the potential for Musasa mine operations. Numerous positive modifications have been completed on the wash plant, however the workflow has been severely hampered and adversely effected by Government imposed restrictions and lockdowns as a result of the COVID-19 pandemic. We have re-designed the water reticulation system including the recycling of plant water and the management of the river dam. We have also installed a large capacity water pump, imported from the UK, to ensure stable and consistent flow rates. Towards the end of the half year period, we were able to bring in international based process and geological consultant engineers to provide further guidance on the Musasa operation. The focus continues to be on metallurgical test work on plant feed material and selective wash plant samples to build on the knowledge database. As a direct result we have ordered six new slurry pumps and arrival is pending. These pumps will improve material flow dramatically and provide for improved recoveries.
In May the Company, together with its partner on the Musasa Project the Kuaka Cooperative, submitted an application to covert the existing small-scale 50-hectare licence into a 400-hectare large-scale mining licence. As of today, this application is still pending.
In June, the Company announced a new Joint Venture project in southern Rwanda. The Agreement was concluded with a Rwandan entity to explore and develop mineral opportunities over an area covering 2,750 hectares, which the JV Partner holds a newly issued license for the exploration and development of tantalum, niobium, tin and tungsten metal resources. Under the terms of the Agreement, EME will incorporate a new JV Company in Rwanda and hold 70% of the issued share capital with the JV Partner holding 30% as a free-carried interest and entitled to Board representation on the new JV Company.
The licence area has encouraging elements of an existing pegmatite swarm, with two identified occurrences readily available for immediate geological prospecting and evaluation. This is highly promising. The known pegmatites form an encouraging exploration target with considerable upside exploration potential if the tantalum grade distribution along the strike and depth extensions can be proven. If so, then EME's landholding in southern Rwanda will comprise a significant new pegmatite field in Rwanda.
Currently the operations in-country have unfortunately been suspended until the COVID restrictions are lifted, and free movement of staff is allowed, and also pending the additional wash plant equipment deliveries.
In February 2021, Mr. Simon Rollason was appointed as a director of the Company and Mr. Michael Staten stepped down as director of the Company.
Charles Bray
Executive Chairman
20 September 2021
Enquiries:
| Eastinco Mining & Exploration Plc: Charles Bray, Executive Chairman |
[email protected] |
| AQSE Growth Market Corporate Adviser: Novum Securities Limited David Coffman / Lucy Bowden |
Tel: +44 (0)207 399 9400 |
EASTINCO MINING AND EXPLORATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Group | |||
| 6 months to | 6 months to | Year to | |
| 30-Jun-21 | 30-Jun-20 | 31-Dec-20 | |
| Total revenue | £'000 | £'000 | £'000 |
| Sales | - | 6 | - |
| Other revenue | - | 26 | 44 |
| Cost of sales | - | - | - |
| - | 32 | 44 | |
| Administrative expenses | (175) | (209) | (308) |
| Provision against loan advanced to related party | (68) | (68) | - |
| Net gain on investment property | (243) | (277) | (308) |
| Total operating profit/(loss) | (243) | (245) | (264) |
| Interest payable and similar charges | (9) | (8) | (17) |
| Loss before tax | (252) | (253) | (281) |
| Tax expense | - | - | - |
| Loss after tax | (252) | (253) | (281) |
| Other comprehensive income | |||
| Items that may be reclassified to profit or loss | |||
| Gain on translation of foreign operations | (85) | (13) | (186) |
| (337) | (266) | (467) | |
| Loss per share | |||
| Basic and Diluted loss per share (pences) | (0.06) | (0.07) | (0.07) |
| * Comparative weighted average number of shares is adjusted for the impact of the share consolidation |
EASTINCO MINING AND EXPLORATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2021
| Share capital | Share premium | Share-based compensation reserve | Interest in shares in EBT | Translation reserve | Other Reserve | Merger relief reserve | Retained earnings | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 1 January 2020 | 3,613 | 1,835 | 1,348 | (133) | - | 97 | 1,200 | (5,254) | 2,612 |
| Loss for the year | - | - | - | - | - | - | - | (253) | (253) |
| Other comprehensive loss | - | - | - | - | (13) | - | - | - | (13) |
| Transactions with owners | |||||||||
| Other reserve | - | - | - | - | - | - | - | - | |
| Transfer from other reserve to accumulated losses | (8) | 8 | - | ||||||
| Share based compensation | - | - | - | - | - | - | - | - | |
| Exercise of warrants | - | - | - | - | - | - | - | - | |
| Conversion of unsecured loan note | - | - | - | - | - | - | - | - | |
| Issue of new shares | 196 | 73 | - | - | - | - | - | - | 269 |
| At 30 June 2020 | 3,809 | 1,908 | 1,348 | (133) | (13) | 89 | 1,200 | (5,499) | 2,615 |
| At 1 January 2021 | 4,301 | 2,144 | 1,348 | (133) | (291) | 80 | 1,200 | (5,326) | 3,323 |
| Loss for the year | - | - | - | - | - | - | - | (252) | (252) |
| Other comprehensive loss | - | - | - | - | (85) | (85) | |||
| Transactions with owners | |||||||||
| Other reserve | - | - | - | - | - | - | - | - | |
| Transfer from other reserve to accumulated losses | (9) | 9 | - | ||||||
| Share based compensation | - | - | - | - | - | - | - | - | |
| Exercise of warrants | - | - | - | - | - | - | - | - | |
| Conversion of unsecured loan note | - | - | - | - | - | - | - | - | |
| Issue of new shares | - | - | - | - | - | - | - | - | |
| At 30 June 2021 | 4,301 | 2,144 | 1,348 | (133) | (376) | 71 | 1,200 | (5,569) | 2,986 |
EASTINCO MINING AND EXPLORATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Group | |||
| 30-Jun-21 | 30-Jun-20 | 31-Dec-20 | |
| £'000 | £'000 | ||
| Non-current assets | |||
| Goodwill | 2,168 | 2,263 | 2,168 |
| Property, plant and equipment | 975 | 498 | 1,038 |
| Total non-current assets | 3,143 | 2,761 | 3,206 |
| Current assets | |||
| Trade and other receivables | 148 | 193 | 394 |
| Cash and cash equivalents | 68 | 173 | 52 |
| Total current assets | 216 | 366 | 446 |
| Total assets | 3,359 | 3,127 | 3,652 |
| Equity and liabilities | |||
| Share capital | 4,301 | 3,809 | 4,301 |
| Share premium | 2,144 | 1,908 | 2,144 |
| Share based compensation reserve | 1,348 | 1,348 | 1,348 |
| Interest in shares in EBT | (133) | (133) | (133) |
| Translation reserve | (376) | (13) | (291) |
| Accumulated losses | (5,569) | (5,499) | (5,326) |
| Other reserves | 71 | 89 | 80 |
| Merger relief reserve | 1,200 | 1,200 | 1,200 |
| Total equity | 2,986 | 2,709 | 3,323 |
| Current liabilities | |||
| Trade and other payables | 145 | 207 | 110 |
| Total current liabilities | 145 | 207 | 110 |
| Non-current liabilities | |||
| Loan notes | 228 | 211 | 219 |
| Total non-current liabilities | 228 | 211 | 219 |
| Total Equity and liabilities | 3,359 | 3,127 | 3,652 |
EASTINCO MINING AND EXPLORATION PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
| Group | ||||
| 6 months to | 6 months to | Year to | ||
| 30-Jun-21 | 30-Jun-20 | 31-Dec-20 | ||
| Cash flow from operating activities | £'000 | £'000 | £'000 | |
| Profit/(loss) before tax | (144) | (253) | (281) | |
| Adjustments for: | ||||
| Depreciation | - | - | 23 | |
| Interest expense | 9 | 8 | 17 | |
| Provisions against loans | -108 | 68 | - | |
| Foreign exchange (gains)/losses | - | - | (74) | |
| Operating profit/(loss) before working capital changes | (243) | (177) | (315) | |
| Changes in working capital: | ||||
| Increase in trade & other receivables | 304 | (60) | (129) | |
| Increase in trade & other payables | 81 | 34 | (84) | |
| Cash generated from operations | 385 | (26) | (213) | |
| Net cash flow from operating activities | 142 | (203) | (528) | |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | (15) | (89) | (431) | |
| Acquisition of subsidiary | - | - | - | |
| Funds advanced to subsidiary pre acquisition | (228) | - | - | |
| Net cash from investing activities | (243) | (89) | (431) | |
| Cash flow from financing activities | ||||
| Exercise of warrants | 117 | 219 | - | |
| Amounts advanced from parent | - | - | ||
| Conversion of convertible loan note | - | - | - | |
| Net proceeds from issue of shares | - | - | 767 | |
| Net cash flow from financing activities | 117 | 219 | 767 | |
| Net increase/(decrease) in cash & cash equivalents | 16 | (73) | (192) | |
| Cash & cash equivalents at beginning of the period | 53 | 246 | 246 | |
| Effect of exchange rate movements on cash | (1) | - | (2) | |
| Cash & cash equivalents at end of the period | 68 | 173 | 52 |
EASTINCO MINING AND EXPLORATION PLC
NOTES TO THE ACCOUNTS FOR SIX MONTHS ENDED 30 JUNE 2021
1. Basis of preparation of interim report
The financial information for the period ended 30 June 2021 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and is neither audited nor reviewed. It has been prepared in accordance with the accounting policies set out in, and is consistent with, the audited consolidated financial statements for the twelve months ended 31 December 2020. A copy of the statutory accounts for the period has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.
2. Going concern
The Directors are of the opinion that the financial information should be prepared on a going concern basis.
3. Loss per share
Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.
The calculation of basic and diluted loss per share is based on the following figures.
| 6 Months to 30 June 2021 GBP'000 |
6 Months to 30 June 2020 GBP'000 |
Year to 31 December 2020 GBP'000 |
|
| Total loss for the period | (252) | (253) | (281) |
| Number | Number | Number | |
| Consolidated weighted average number of shares - basic |
430,069,273 | 364,278,319 | 393,879,187 |
| Basic loss per shares | (0.06p) | (0.07p) | (0.07p) |
| Diluted loss per share | (0.06p) | (0.07p) | (0.07p) |
4. Reports
A copy of this announcement will be mailed to shareholders and it is available on the company's website at www.eastinco.com
The Directors take responsibility for this announcement.
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