Final Results

RNS Number : 7632B

Eastinco Mining and Exploration PLC

12 October 2020

 

EASTINCO MINING AND EXPLORATION PLC

 

("EME" or the "Company")

 

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019

Eastinco Mining and Exploration plc (AQSE: EM.P) announces its full year results for the 2019.  

 

Chairman's statement

 

2019 was a year of restructuring in the parent company, EME plc, and investment and development of initial operations in our newly acquired Rwandan registered subsidiary company, Eastinco Limited ("EME Ltd").

Following our fundraising in July 2019, the Company focussed its efforts on disposing the Nigerian coal mining assets and establishing new natural resource investments in Africa. EME Ltd, was identified as a target given its strong local ties and relationships with existing artisanal mining companies. Following the conclusion of the agreement to purchase EME Ltd, we sought to raise the necessary funds required to invest in a processing plant and heavy earth moving ("HEM") equipment to implement our plan.  Management proceeded to negotiate an operating agreement with our local partners, Kuaka Cooperative and the acquisition and assembly of the capital equipment required to improve production, efficiency and safety at the Kuaka site. We initially identified the Kuaka site as a viable mine site to start operations due to its favourable location near readily accessible supplies of ore, water, power, and proximity to transportation links. This combined with accessible artisanal tailings and strong evidence of multiple ore bodies occurring over the 50 hectare site presented an ideal opportunity for partnership. We have initially targeted a processing feed rate of 20 to 25 metric tonnes per hour of rare metal bearing material and sought to acquire the capital equipment necessary to process the targeted tonnage.

In the latter part of 2019, the Company commenced geological fieldwork on the Kuaka property. This was supported by a low-altitude drone based topographic survey, which also generated othro - photo coverage  over 30 hectares. The objective was to map the extensive artisanal workings over the project, identify  the  main  mineralised  zones  and  the  basic  controls on the pegmatite hosting tantalite, niobium and tin mineralisation. Initial mining in 2020 will generate additional data to enhance the conceptual geological model and we anticipate that further geological work will be self-funded from wash plant production revenues.

As part of our ethos and Corporate and Social Responsibility ("CSR") we are firmly committed to working with, engaging, and where possible improving the livelihood of the communities in which we operate. To this end in 2019 the Company launched a meaningful clean water programme to allow members of the local community to source clean drinking water. We also participated in a community support programme to help feed members of the community.

In conclusion, 2019 was a year of corporate restructuring and developing a new operational direction for the Company. There is now a clear strategy to invest in small-scale producing and near-production assets, which with relatively small capital investments can produce near-term revenues. To achieve this goal, the Company has made the required start-up investment in capital equipment to ready the site for operations in 2020 at the Kuaka Mine site in Rwanda.

Charles Bray

Executive Chairman

12 October 2020

Enquiries:

For further information, please visit  http://www.eastinco.com/ or contact:

 Eastinco Mining & Exploration Plc:

Charles Bray, Executive Chairman - [e-mail]

Mike Staten, Executive Director - [e-mail]

AQSE Growth Market Corporate Adviser:

Alfred Henry Corporate Finance Limited

Nick Michaels and Jon Isaacs

www.alfredhenry.com

Tel: [phone]

The Directors take responsibility for this announcement.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2019

	Note	Group
		Year to	Year to
		31-Dec-19	31-Dec-18
		£'000	£'000
Total revenue		-	-
Administrative expenses		(892)	(140)
Provision against loan advanced to related party		(34)	(90)
Provision for impairment of investment		-	(2)
Total operating expenses		(926)	(232)
Total operating loss		(926)	(232)
Interest income		-	11
Interest payable and similar charges		(8)	-
Loss before tax		(934)	(221)
Tax expense		-	-
Loss after tax		(934)	(221)
Other comprehensive income
Loss on translation of foreign operations		(94)	-
Total comprehensive loss for the year		(1,028)	(221)
Loss per share	2
Basic and Diluted  loss per share (pence)		(0.47)	(0.25)
* Comparative weighted average number of shares is adjusted for the impact of the share consolidation

CONSOLIDATED AND COMPANY STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

		Group
		31-Dec-19	31-Dec-18
		£'000	£'000
Non-current assets
Goodwill		2,168	-
Property, plant and equipment		441	-
Total non-current assets		2,609	-
Current assets
Trade and other receivables		133	4
Cash and cash equivalents		246	2
Total current assets		379	6
Total assets		2,988	6
Equity and liabilities
Share capital		3,613	1,126
Share premium		1,835	1,835
Share based compensation reserve		1,348	1,348
Interest in shares in EBT		(133)	(133)
Translation reserve		(94)	-
Accumulated losses		(5,254)	(4,328)
Other reserves		97	-
Merger relief reserve		1,200	-
Total equity		2,612	(152)
Current liabilities
Trade and other payables		173	158
Total current liabilities		173	158
Non-current liabilities
Financial liabilities		203	-
Total non-current liabilities		203	-
Total Equity and liabilities		2,988	6

 

 

 

NOTES TO PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019

1.  The financial information set out below does not constitute the Group's statutory accounts for the year ended 31 December 2019 but is derived from those accounts.

The financial information has been extracted from the statutory accounts of Eastinco Mining and Exploration Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors, Jeffreys Henry LLP, gave an unqualified report on 08 October 2020. The audit report included the following modification:-

"Material uncertainty relating to going concern

We draw your attention to the primary statements within these financial statements, which indicates that the group incurred a loss after tax of £934,000 and had net cash outflows from operating activities of £840,000 for the year ended 31 December 2019.

We further draw attention to note 2.4 in the group financial statements, which indicates that the group will need to raise additional finance in order to continue with its exploration programmes and to meet its recurring expenditure, and that, although the group has been successful in the past in raising additional finance, there can be no assurance that the funding required by the group will be made available to it when needed or, if such funding were to be available, that it would be offered on reasonable terms.

As stated in note 2.4, these conditions, along with the other matters as set forth in note 2.4, indicate that a material uncertainty exists that may cast significant doubt over the group's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue and significant doubt over the group's longer term ability to continue in operation and meet its liabilities as they fall due.

Whilst there is a global impact of the COVID-19 outbreak, the Group has been able to operate during the pandemic to date. It remains difficult to assess reliably whether there will be any material disruption in the future which could adversely impact the group's forecast.

Our opinion is not modified in respect of this matter."

The Annual Report of Eastinco Mining and Exploration Plc for year ended 31 December 2019 is available upon request from the Company's registered office at Finsgate, 5-7 Cranwood Street, London EC1V 9EE.

The preliminary announcement of the results for the year ended 30 April 2019 was approved by the board of directors on 12^th October 2020.

2.  Loss per Share

		2019	2018
		£'000	£'000
Earnings
Loss from continuing operations for the year attributable to the equity holders of the Company		(934)	(221)
Number of shares
Weighted average number of ordinary shares for the purpose of basic and diluted earnings per share
		200,814,390	87,582,476
Basic and diluted earnings per share (pence)		(0.47)	(0.25)

* Comparative weighted average number of shares is adjusted for the impact of the share consolidation.

The potential number of shares which could be issued following the exercise of options and warrants currently outstanding amounts to 19.2 Billion (see note 17). Dilutive earnings per share equals basic earnings per share as, due to the losses incurred, there is no dilutive effect from the existing share options and warrants.

- ends -

 

 

END

 

 

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