IMC Exploration Group PLC

Earnings Release • Mar 28, 2024

National Storage Mechanism | Additional information

IMC Exploration Group Plc - Half-year Report

PR Newswire

LONDON, United Kingdom, March 28

THE DIRECTORS OF IMC EXPLORATION GROUP PLC CONSIDER THIS ANNOUNCEMENT TO CONTAIN INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO. 596/2014 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL OF 16 APRIL 2014 ON MARKET ABUSE AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "MARKET ABUSE REGULATION"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

*HALF-YEARLY FINANCIAL REPORT*

*FOR THE PERIOD 1 st JULY 2023 TO 31 st DECEMBER 2023*

IMC Exploration Group Public Limited Company

(“IMC” or the “Company”)

*Chairman’s Statement*  

The Directors of IMC are pleased to present the Company’s unaudited, consolidated, half-yearly financial report for the six-month period ended 31 December 2023.

The six months under review have been very significant for IMC and its shareholders, with the successful completion, in October 2023, of the acquisition of MVI Ireland s.r.o. (“MVI”), the 100% owner of the Armenian company, Assat LLC, which owns and operates the Karaberd Mine, an operating gold mine located in Lori Marz, Northern Armenia.

The acquisition of MVI constituted a reverse takeover under the Listing Rules and as required by the Financial Conduct Authority’s updated rule on a minimum required market capitalisation of £30m for a company undertaking such a transaction, we were pleased that international consultants Alvarez and Marsal conducted a valuation of MVI, in accordance with the International Valuation Standards (IVS, 2020), that demonstrated a value in excess of the required threshold of £30m.

Since the completion of the acquisition of MVI on 1 November 2023 we have been delighted by the performance at the Karaberd mine and the extraction of ore continues, including a sale of ore in December 2023 for a consideration of €1,500,000.

We believe there is great potential in Armenia, both with the Karaberd mine and more widely.   We are continuing to review other projects in Armenia, and all at IMC believe that operating in Armenia will provide significant future growth opportunities.

I am also pleased that following our acquisition of MVI we have, post period end, strengthened the IMC Board with a new CFO, Vahagn Marukhyan, who has significant experience with Ernst & Young in Armenia, and a geologist, Gagik Gevorgyan, who has worked as chief geologist in Armenia with a number of mining companies and who has a tremendous knowledge of projects in Armenia that are likely to form part of the IMC pipeline of projects going forward.

In Ireland, IMC has a mineral-rich supply of spoils and tailings with a Mineral Resource Estimate (MRE) on its Avoca spoils and tailings.   Based on the Inferred Mineral Resource Estimate there are circa. 20,000 oz gold, 600,000oz silver, 2,600 tonnes copper and 7,800 tonnes lead in these spoils and tailings heaps, which are in crushed rock sitting above ground.  

At current commodity metal prices, this represents a total gross value of £71,346,400.

IMC has the intention to advance the Avoca opportunity as an eco-remediation project, aligning closely with the goals outlined by both the Irish government and the objectives of the European Union.   To progress this opportunity, at IMC’s invitation, China National Geological & Mining Corporation (“CGM”), who have experience working global projects and especially have experience in eco-based extraction of metals and the remediation of mining sites, recently visited our Avoca site to assess how further progress should be made.   I am pleased to say that following this visit we have completed and signed a Memorandum of Understanding for Cooperation with CGM and I look forward to the completion of a project plan to maximise the potential of our Avoca site given the gross value of metals sitting in the spoils and tailings and also given that the European Union has passed a Nature Restoration Law requiring the restoration of up to 20% of lands and sea by 2030.   We believe that this will also give impetus to our proposed remediation of the 155-acre Avoca mine site.   We are also reviewing the potential for further copper extraction on our Avoca licence given the significant increase in copper prices since mining stopped in Avoca in 1982.

Also in Ireland, I am very encouraged by the recent drilling results from IMC’s North Wexford Gold Project which confirms interpretation of two structural zones, up to 20 metre (“m”) wide, associated with gold (“Au”) mineralization.   An historic drillhole intercepted 1.5m grading 354g/t Au, interpreted as part of an upper, near surface zone of mineralization and a lower zone of 2m grading 1.4g/t Au. The new drillhole extends these zones of mineralization by 150m to the northeast and intersected grades of 1m grading 5.8g/t Au in the upper zone and 1m grading 1.1g/t Au in the lower zone.   Both the upper and lower zones are open along strike and to depth.   Geological interpretation suggests more structural zones are present . The mineralization is present in wide zones of quartz-veined sediments (6m and 20m wide respectively) of which the upper zone is interpreted as the probable host of the 354g/t Au bonanza grade boulder.

The last six months has been very productive for IMC, particularly the successful conclusion of the acquisition of the Karaberd mine in Armenia and the strengthening of the Board.   With the current high price of gold, silver and copper and IMC’s projects in Armenia and Ireland, IMC expects to make notable progress in the coming months.

Eamon P. O’Brien,

Executive Chairman,

*Dublin, 28 March 2024*

IMC Exploration Group Public Limited Company

*Consolidated Statement of Comprehensive Income***

*for the period 1 st July 2023 to 31 st December 2023***

Continuing Operations          

			Dec’23		Jun’23
	Revenue		1,492,000		-
	Cost of Sales		(501,912)		-
	Gross Profit		990,088		-
	Administration Costs		(783,789)		(324,917)
	Operating Profit /(loss) for the period		206,299		(324,917)
	Finance Income		-		-
	Amount written off Intangible Assets		-		-
	Amount written off investment		-		-
	Profit / (Loss) for period before tax		206,299		(324,917)
	Income tax expenses		(159,296)		-
	Total comprehensive income (loss) for the period		47,003		(324,917)
	Attributable to:
	Equity holders of the Company		47,003		(324,917)
	Total Comprehensive Income (Loss) attributable to:
	Equity holders of the Company		47,003		(324,917)
	Earnings per share
	From continuing operations
	Basic and Diluted profit per share (cent)		0.000		(0.000)

All activities derived from continuing operations. All gains or losses and total comprehensive income or losses for the period are attributable to the owners of the Company.

The Company has no recognised gains or losses other than those dealt with in the statement of comprehensive income.

IMC Exploration Group Public Limited Company

*Consolidated Statement of Financial Position***

*As at 31 st December 2023***

			Dec’23		Jun’23
	Assets
	Intangible assets		3,878,881		640,291
	Property, plant and equipment		64,472		946
	Goodwill		522,913		-
	Total Non-Current Assets		4,466,266		641,237
	Current Assets
	Inventory		206,298		-
	Trade and other receivables		2,483,052		9,045
	Cash and cash equivalents		7,036		101,018
	Total Current Assets		2,696,385		110,063
	Total Assets		7,162,651		751,300
	Equity
	Share Capital		723,190		364,384
	Share premium & Capital		8,974,269		4,253,642
	Retained deficit		(4,809,338)		(4,823,272)
	Attributable to owners of the Company		4,888,122		(205,246)
	Total Equity		4,888,122		(205,246)
	Liabilities – Current
	Trade and other payables		903,701		294,260
	Current tax liabilities		575,962		-
	Total Liabilities-Current		1,479,662		294,260
	Liabilities – Non-Current
	Loan		794,868		662,286
	Total Liabilities-Current		794,868		662,286
	Total Equity and Liabilities		7,162,652		751,300

IMC Exploration Group Public Limited Company

*Consolidated Statement of Changes in Equity***

*for the period 1 st July 2023 to 31 st December 2023***

		Share Capital €	Share Premium €	Other Reserves €	Retained Losses €	Total €
	Balance at 30 June 2022	349,589	4,164,633		(4,498,355)	15,867
	Total comprehensive income for the period
	Loss for the period	-	-	-	(324,917)	(324,917)
	Total comprehensive income for the period	-	-	-	(324,917)	(324,917)
	Transactions with owners, recorded directly in equity contributions and distributions to owners
	Shares issued	14,795	92,009	-	-	106,804
	Share issue costs	-	(3,000)	-	-	(3,000)
	Total transactions with owners	14,795	89,009	-	-	103,804
	Balance at 30 June 2023	364,384	4,253,642	-	(4,823,272)	(205,246)
	Total comprehensive income for the period
	Profit for the period	-	-	-	47,003	47,003
	Total comprehensive income for the period	-	-	-	47,003	47,003
	Transactions with owners, recorded directly in equity contributions and distributions to owners
	Shares issued	358,807	4,565,176	-	-	4,923,982
	Capital Contributions	-	-	155,451	(33,069)	122,382
	Share issue costs	-	-	-	-	-
	Balance at 31 December 2023	723,191	8,818,818	155,451	(4,809,338)	4,888,121

IMC Exploration Group Public Limited Company

*Consolidated Statement of Cash Flows***

*for the period 1 st July 2023 to 31 st December 2023***

			Dec’23		Jun’23
	Cash flows from operating activities
	Profit /(Loss) for the year		236,954		(324,917)
	Adjustments for:
	Other Expenses		9,000		-
	Income Tax recognised in profit and loss		169,000		-
	Depreciation		54,386		904
	Cash from operations before changes in working capital		469,340		(324,013)
	Movement in trade and other receivables		(1,473,488)		1,942
	Movement in trade inventories		395,000		-
	Movement in trade and other payables		386,855		308,386
	Net cash flow from operating activities		(222,293)		(13,685)
	Cash flows from investing activities
	Capital Expenditure		(20,000)		(12,500)
	Net cash (used in) investing activities		(20,000)		(12,500)
	Cash flows from financing activities
	Proceeds from the issue of new shares		139,366		62,911
	Finance income/(expense)		-		-
	Net cash generated by financing activities		139,366		62,911
	Movement in cash and cash equivalents		(102,927)		36,726
	Cash and cash equivalents at beginning of period		109,963		73,237
	Cash and cash equivalents at end of year		7,036		109,963

The Board continuously assesses and monitors the key risks and uncertainties affecting the business. These have not substantially changed from those set out in the prospectus dated 29 September 2023 and published by the Company.

Responsibility Statement

The directors of the Company (the “Directors”) are responsible for the contents of this half-yearly financial report.

The Directors, being Eamon O’Brien, Kathryn Byrne, Andrew (Laz) Fleming, Vahagn Marukhyan and Gagik Gevorgyan, confirm that to the best of their knowledge:

·       The half-yearly financial report, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4 R; and

·       the interim management report (including the Chairman’s Statement) includes a fair review of the information required by DTR 4.2.7 R;

·       the interim management report (including the Chairman’s Statement) includes a fair review of the information required by DTR 4.2.8 R.

REGULATORY ANNOUNCEMENT ENDS.

*Enquiries*

IMC Exploration Group plc

Eamon O’Brien

+353 87 6183024

Kathryn Byrne

+353 85 233 6033

Keith, Bayley, Rogers & Co. Limited

Stephen Clayson

[email protected]

+44 (0)7771 871 847

Brinsley Holman

[email protected]

+44 (0)7776 302 228

IFC Advisory Limited (Financial PR and IR)

Tim Metcalfe

Florence Chandler

+44 (0)203 934 6630

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