Half-year Report

Citius Resources PLC

10 November 2023

 

Date: 10 November 2023

Citius Resources Plc

("Citius" or the "company")

Interim Financial Statements

for the six month period ended 31 October 2023

The Company is pleased to announce its Interim Results for the six-month period to 31 October 2023.

For further information please contact

Citius Resources Plc Cameron Pearce (Director) www.Citiusresources.co.uk Tel: [phone] [e-mail]	Tavira Securities Limited Jonathan Evans Tel: [phone] [e-mail]
Shard Capital Partners Damon  Health Tel: [phone] [e-mail]

Interim  Management Report

Dear shareholder,

I am pleased to present the interim report and accounts for the six-month period to 31 October 2023 for Citius Resources Plc.

The Company was pleased to announce during the period that we have entered into a binding Heads of Terms for the acquisition of 100% of the issued shares in Harena Resources Pty Ltd ("Harena") the 75% owner of the Ampasindava Rare Earths Project in Madagascar (the, "Acquisition"). Harena is an Australian domiciled company preparing to develop the 75% owned Ampasindava Rare Earths Project, which will include the mining and processing of Ionic Clay material to extract Rare Earth elements to produce Mixed Rare Earth Carbonate or Mixed Rare Earth Concentrate.

Harena is what can be described as Reverse Take Over ("RTO") advanced stages therefore the Company is well positioned to complete the Acquisition in this next reporting period which would constitute a RTO under the Listing Rules and accordingly, the company would apply for re-admission of its shares to the Official List and Main Market of the London Stock Exchange.

I would like to thank the board and our advisors for their dedication and professionalism in what can only be described as challenging market conditions and we look forward to applying for re-admission and moving the exciting Ampasindava Rare Earths project forward.

Cameron Pearce
Chief Executive Officer  

Responsibility Statement of the Directors' in respect of the Interim Report

The Directors are responsible for preparing the Interim Financial Statements in accordance with applicable law and regulations. In addition, the Directors have elected to prepare the Interim Financial Statements in accordance with International Financial Reporting Standards ("IFRSs"), as adopted by the United Kingdom ("UK").

The Interim Financial Statements are required to give a true and fair view of the state of affairs of the Group and of the profit or loss of the Group for that period.

In preparing these Interim Financial Statements, the Directors are required to:

·    select suitable accounting policies and then apply them consistently;

·    present information and make judgements that are reasonable, prudent and provides relevant, comparable and understandable information;

·    provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

·    make an assessment of the Group's ability to continue as a going concern.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time its financial position of the Group to enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and Interim Financial Statements.  Legislation governing the preparation and dissemination of Interim Financial Statements may differ from one jurisdiction to another.

We confirm that to the best of our knowledge:

·      the Interim Financial Statements, prepared in accordance with International Financial Reporting Standards as adopted by the UK, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the period;

·      the Director's report includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal risks and uncertainties that they face; and

·      the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the group's performance, business model and strategy.

Statement of Comprehensive Income for the year end ended 31 October 2023

		6 months ended 31 October 2023	6 months ended 31 October 2022	12 months ended 30 April 2023
		(Unaudited)	(Unaudited)	(Audited)
	Notes	GBP	GBP	GBP
Administrative fees and other expenses	5	(340,378)	(139,526)	(444,287)
Operating loss		(340,378)	(136,526)	(444,287)
Finance costs		-	-	-
Loss before tax		(340,378)	(136,526)	(444,287)
Income tax		-	-	-
Total comprehensive loss for the period		(340,378)	(136,526)	(444,287)
Basic and diluted loss per share (pence)	7	(0.79)	(0.44)	(1.03)

There was no other comprehensive income for the period ended on 31 October 2023.

Statement of Financial Position as at 31 October 2023

	Note	As at 31 October 2023	As at 31 October 2022	As at 30 April 2023
		(Unaudited)	(Unaudited)	(Audited)
		GBP	GBP	GBP
Current assets
Cash and cash equivalents		61,297	345,886	249,341
Other receivables		11,570	314,411	154,759
Total current assets		72,867	660,297	412,100
Current liabilities
Creditors: Amounts falling due within one year		120,728	62,660	119,223
Total current liabilities		120,728	62,660	119,223
Net (liabilities)/assets		(47,861)	597,637	292,877
Equity
Share capital	8	216,250	216,250	216,250
Share premium	8	921,797	921,797	921,797
Warrant reserves		17,422	17,422	17,422
Retained earnings		(1,203,330)	(557,832)	(862,592)
Total equity		(47,861)	597,637	292,877

Statement of Changes in Equity for the six month period ended 31 October 2023

	Share capital	Share premium	Warrants reserves	Retained earnings	Total equity
	GBP	GBP	GBP	GBP	GBP
Balance as at 30 April 2022	216,250	921,797	17,422	(418,306)	737,163
Loss for the period	-	-	-	(139,526)	(139,526)
Total comprehensive loss	-	-	-	(139,526)	(139,526)
Balance as at 31 October 2022	216,250	921,797	17,422	(557,832)	597,637
Loss for the period	-	-	-	(304,760)	(304,760)
Total comprehensive loss	-	-	-	(304,760)	(304,760)
Balance as at 30 April 2023	216,250	921,797	17,422	(862,592)	(292,877)
Loss for the period	-	-	-	(340,738)	(340,738)
Total comprehensive loss	-	-	-	(340,738)	(340,738)
Balance as at 31 October 2023	216,250	921,797	17,422	(1,203,330)	(47,861)

Statement of Cash Flows for the six month period ended 31 October 2023

	Notes	As at 31 October 2023	As at 31 October 2022	As at 30 April 2023
		(Unaudited)	(Unaudited)	(Audited)
		GBP	GBP	GBP
Operating activities
Loss after tax		(340,737)	(139,526)	(444,287)
Changes in working capital
(Decrease)/increase in trade and other receivables		(3,570)	(294,336)	12,076
Increase in trade and other payables		1,505	22,645	79,208
Net cash flows utilised by operating activities		(342,802)	(411,217)	(353,003)
Investing activities
Decrease/(increase) Loan to Kamalenge Gold Project		249,341	-	(249,341)
Net cash flows from investment activities		249,341	-	(249,341)
Increase in cash and cash equivalents		(93,461)	(411,217)	(602,344)
Cash and short-term deposits brought forward		154,759	757,103	757,103
Cash and cash equivalent at 31 October		61,298	345,886	154,759

Notes to the Financial Statements for the six month period ended 31 October 2023

1.   General

Citius Resources Plc (the "Company") is a public limited company incorporated and registered in England and Wales on 15 April 2020 with registered company number 12557958. Its registered address 167-169 Great Portland Street, Fifth Floor, London, W1W 5PF.

The Company did not trade during the period under review.

2.   Accounting Policies

Basis of preparation

The interim financial statements of Citius Resources Plc are unaudited condensed financial statements  for the 6 month period ended 31 October 2023.

The accounting policies applied by the Company in these Interim Financial Statements, are the same as those applied by the Company in its financial statements and have been prepared on the basis of the accounting policies applied for the financial year to 30 April 2023 which have been prepared in accordance with IFRS as adopted by UK. The Company Interim Financial Statements have been prepared using the measurement basis specified by IFRS each type of asset, liability, income and expense.

The Company Interim Financial Statements are presented in GBP, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise stated.

3.   Critical accounting estimates and judgments

In preparing the Company's Interim Financial Statements, the Directors have to make judgments on how to apply the Company's accounting policies and make estimates about the future. The Directors do not consider there to be any critical judgments that have been made in arriving at the amounts recognised in the Company Interim Financial Statements.

4.   Significant accounting policies

The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements of Citius Resources Plc, for the year ended 30 April 2023. A copy of these financial statements is available on the Company website at https://citiusresources.co.uk/

5.   Administrative fee and other expenses

	6 months ended 31 October 2023	6 months ended 31 October 2022	12 months ended 30 April 2023
	GBP	GBP	GBP
Directors' remuneration	24,000	24,000	48,000
Professional fees	24,455	90,524	115,785
Project cost expenditure	272,081	-	216,112
Audit fees	10,266	15,000	36,000
Administration fees	9,000	9,000	18,000
Miscellaneous fees	936	1,002	10,390
Total	340,738	139,526	444,287

The company did not employ any staff during the period other than Directors. The Directors are the only members of key management and their remuneration related solely to short term employee benefits.

6.   Impairment of the loan

On 9 June 2022 the Company announced that it has entered into a binding Heads of Terms with regard to the possible acquisition of 100% of the share capital of AUC Mining (U) Limited ("AUC").  As part of the Heads of Terms, the Company loaned AUC £249,341.  On 26 October 2023, the Company agreed to terminate the agreement with AUC for the acquisition of the Kamalenge project, and therefore, the loan was impaired to Nil.

7.   Basic and diluted loss per share

The calculation of the basic and diluted loss per share is based on the following data:

	6 months ended 31 October 2023	6 months ended 31 October 2022	12 months ended 30 April 2022
Earnings
Loss for the period (GBP)	(340,738)	(139,526)	(444,287)
Number of shares
Weighted average number of Shares	43,250,000	31,692,482	43,250,000
Basic and diluted loss per share (pence)	(0.79)	(0.44)	(1.03)

There are no potentially dilutive shares in issue.

8.   Share capital issued

	Number of shares issued	Nominal value per share	Share capital	Share premium	Total share capital
		GBP	GBP	GBP	GBP
At 30 October 2022	43,250,000	0.005	216,250	921,797	1,138,047
At 31 April 2023	43,250,000	0.005	216,250	921,797	1,138,047
At 31 October 2023	43,250,000	0.005	216,250	921,797	1,138,047

9.   Related party transactions

The are no related party transactions during the period except for the Directors' remuneration, which has been disclosed in note 5.

10. Events after the reporting date

There are no events after the reporting date.

 

END