Final Results

Golden Metal Resources PLC

16 November 2023

 

16 November 2023

Golden Metal Resources plc

("Golden Metal" or the "Company")

Audited Financial Results for the Year Ended 30 June 2023

Golden Metal (LON:GMET), a mineral exploration company focused on tungsten, gold, lithium, copper and silver within Nevada, USA, is pleased to announce its consolidated audited results for the year ended 30 June 2023, for the Company and its subsidiaries (together, the "Group").

Highlights from the year under review:

•              On 10 May 2023, the Company was admitted to trading on AIM under the ticker code 'GMET'. During the period prior to admission, the Company was focussed on completing all preparations in advance of its now completed IPO

•              In May 2023 Golden Metal announced that a significant copper system was identified at its 100% owned Garfield Project following the results of a high-resolution soil geochemical sampling survey. This featured the discovery of two significant copper (Cu) zones, which returned individual Cu-in-soil results of up to 851ppm and 950ppm Cu in zones coincident with historical rock sampling results, which returned up to 2.6% Cu and 5.53% Cu in the two key areas.

•              Also in May 2023 Golden Metal released news that Carlin-type gold targets had been identified at its Golconda Summit Project based on rock sampling results that returned significant arsenic (As) anomalism, As being the main alteration element (pathfinder mineral) associated with Carlin-type gold systems. 11 of the 52 samples collected returned above 250ppm As, with an impressive 6 returning above 500ppm As. These results suggest the presence of a "feeder zone" and therefore the possibility that a Carlin-type gold system may exist within the Golconda Summit Project at depth.

•              In June 2023, Golden Metal published the Company's inaugural Environmental, Social and Governance (ESG) Report highlighting the desire of the Company to be a leader in this are and reflecting the shift in the global investment landscape towards ESG-focussed investing.

•              On 05 June 2023 Golden Metal announced that Washington, D.C-based Mrs. Chang Turkmani had been appointed as Strategic US Government Advisor. This represents an important step in engaging further with the US Government with the aim of securing non-dilutive Federal funding for the accelerated and enlarged development of our Pilot Mountain tungsten project, in the context of tungsten being listed by the US Government as a critical mineral used for defence and other industrial applications. Securing non-dilutive funding is one of Golden Metal's priorities and efforts are being made in this regard in order to identify and apply for grants which are well suited for the Company. Golden Metal is extremely pleased to be one of the few small-cap mineral exploration companies in London which is well positioned to receive these non-dilutive monies - with the ultimate goal of lessening the burden on our current and prospective shareholders to fund future exploration and development at our flagship asset.

•              On 06 June 2023 and later on 20 June 2023 Golden Metal announced results from the high-resolution induced polarization (IP) survey completed across the 100%-owned Pilot Mountain Project, both consistent with the strategy of accelerated development and expansion of this important asset. Significantly, five high-priority un-drilled exploration targets were identified by this work, further proving the exploration potential at Pilot Mountain and the possibility of significantly increasing the size of the in-ground resources during future drilling campaigns.

•              On 28 June 2023 Golden Metal announced the signing of a Letter of Intent ("LOI") with United States-based Global Tungsten & Powders LLC ("GTP") of Towanda, Pennsylvania, in respect of a tungsten concentrate off-take agreement for the Pilot Mountain Project. The non-binding LOI provides outline terms for a future off-take agreement, subject to successful technical and legal due diligence, and represents another important step forward in the development of this highly strategic project.

Outlook:

Golden Metal is centered around a robust exploration and development portfolio with various defense/critical/battery and precious metal assets, all of which are wholly located in the mining friendly state of Nevada, U.S.A. All of the assets were acquired with the ultimate goal of delivering the metals needed by the world in an era of metal criticality.

In particular, Golden Metal has positioned itself to be an important player in the western world's desire and need to reduce its reliance from unfriendly countries for several key input metals. As the world continues to recognise the importance of secure metal supply chains, Golden Metal is uniquely well positioned. Golden Metal is looking forward to the developments across the business during the rest of 2023 and beyond.

Post Year End:

Operationally, since the year end, the Company has achieved multiple outcomes which include but are not limited to, 1) staking of the Kibby Basin Lithium Project as well as the identification of a significant conductor at this project, 2) signing of a tungsten focused MoU with Oxford Sigma, a nuclear fusion company based in Oxfordshire, UK, 3) achieved admission to trading on the OTCQB market, as well as 4) identifying porphyry and skarn-style mineralisation at its Garfield Project and conducting a significant follow up geological mapping and prospecting programme at the Project, results of which are pending.

Notice of Annual General Meeting and Distribution of Accounts to Shareholders

The Company announces that its annual general meeting ("AGM") will be held at Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT at 2:00 p.m. on 18 December 2023.

The annual report and financial statements for the year ended 30 June 2023, Notice of AGM and Form of Proxy will be posted today to eligible shareholders. Electronic copies will be shortly available on the Company's website at: https://www.goldenmetalresources.com/. 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

FOR THE YEAR ENDED 30 JUNE 2023

	Note		Year ended 30 June 2023 US$'000		Period ended 30 June 2022 US$'000
Continuing operations
Other income			30		-
Gross profit			30		-
Administrative expenses	4		(878)		(821)
Loss from operating activities			(848)		(821)
Loss before taxation			(848)		(821)
Taxation			-		-
Loss for the period from continuing operations			(848)		(821)
Other comprehensive income Items that will or may be reclassified to profit or loss; Exchange translation			153		54
Items that will not be reclassified to profit or loss
Capital contribution			-		5,897
Total other comprehensive income			153		5,951
Total comprehensive (loss)/income for the period attributable to owners of the company			(695)		5,130
Earnings per share from continuing operations attributable to the ordinary equity holder of the parent:
Basic and diluted loss per share (pence)	8		(0.01)		(0.04)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

			30 June 2023		30 June 2022
	Note		US$'000		US$'000
Assets
Non-current assets
Intangible assets	5		7,796		7,240
Total non-current assets			7,796		7,240
Current assets
Trade and other receivables	6		286		169
Cash and cash equivalents			1,371		40
Total current assets			1,657		209
Total assets			9,453		7,449
Liabilities
Current liabilities
Trade and other payables	9		414		150
Total current liabilities			414		150
Total liabilities			414		150
Net assets			9,039		7,299
Equity
Share capital	7		1,043		728
Share premium	7		6,195		4,126
Capital contribution reserve			5,897		5,897
Share based payment reserve			51		-
Exchange reserve			207		54
Accumulated losses			(4,354)		(3,506)
Total equity			9,039		7,299

The financial statements of Golden Metal Resources plc, company number 13351178, were approved by the board of Directors and authorised for issue on 15 November 2023.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

AS AT 30 JUNE 2023

	Share capital	Share premium	Capital contribution reserve	Share based payment Reserve	Exchange reserve	Accumulated losses	Total Equity
	US $'000	US $'000	US $'000	US $'000	US $'000	US $'000	US $'000
Balance at 22 April 2021	-	-	-	-	-	(2,685)	(2,685)
Loss for the period	-	-	-	-	-	(821)	(821)
Currency translation	-	-	-	-	54	-	54
Capital contribution	-	-	5,897	-	-	-	5,897
Total comprehensive income / (expense) for the period	-	-	5,897	-	54	(821)	5,130
Issue of ordinary shares	123	666	-	-	-	-	789
Conversion of related party loan to equity	605	3,460	-	-	-	-	4,065
Total transactions with owners	728	4,126	-	-	54	(3,506)	7,299
Balance at 30 June 2022	728	4,126	5,897	-	54	(3,506)	7,299
Balance at 01 July 2022	728	4,126	5,897	-	54	(3,506)	7,299
Loss for the period	-	-	-	-	-	(848)	(848)
Currency translation	-	-	-	-	153	-	153
Total comprehensive income / (expense) for the period	-	-	-	-	153	(848)	(695)
Issue of ordinary shares	315	2,365	-	-	-	-	2,680
Share issue costs	-	(296)	-	-	-	-	(296)
Share-based payments	-	-	-	51	-	-	51
Total transactions with owners	315	2,069	-	51	-	-	2,435
Balance at 30 June 2023	1,043	6,195	5,897	51	207	(4,354)	9,039

CONSOLIDATED STATEMENT OF CASHFLOWS

AS AT 30 JUNE 2023

	Year ended 30 June 2023 US$'000		Period ended 30 June 2022 US$'000
Cash flows used in operating activities
Loss for the year from continuing activities	(848)		(821)
Adjustments for:
Share-based payment expense	51		-
Expenses settled in shares	267		-
Foreign exchange differences	(14)		54
	(544)		(767)
Changes in working capital:
Increase in trade and other receivables	(128)		(71)
Increase in trade and other payables	511		150
Net cash used in operating activities	(161)		(688)
Cash flows from investing activities
Purchase of intangibles	(374)		-
Net cash outflows from investing activities	(374)		-
Cash flows from financing activities
Proceeds from issue of share capital	2,160		728
Share issue costs	(296)		-
Net cash inflows from financing activities	1,864		728
Increase in cash and cash equivalents	1,329		40
Cash and cash equivalents at beginning of year	40		-
Effect of foreign currency exchange rates	2		-
Cash and cash equivalents at 30 June	1,371		40

Significant non-cash transactions during the year

During the year, the Group repaid an intercompany loan, totalling US$255k via the issue of ordinary shares (2022: US$ Nil).

NOTES TO THE CONSOLODATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

1.         Reporting entity

Golden Metal Resources plc is a public company limited by shares which is incorporated and domiciled in England and Wales. The address of the Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT. The consolidated financial statements of the Company as at and for the year ended 30 June 2023 include the Company and its subsidiaries. The Company is the parent company of Golden Metal Resources LLC, Pilot Metals Inc. and BFM Resources Inc, the subsidiaries are registered and domiciled in the US. The Group is primarily involved in the exploration and exploitation of mineral resources in the US.

2.         Going concern

The financial statements are prepared on a going concern basis. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant available information about the current and future position of the Group, including current level of resources and the required level of spending on exploration and corporate activities. As part of the assessment, the Directors have also considered the potential for continuing option and warrant exercises, the ability to raise new funding, disposal of business interests and the potential of US government grants in respect of the Pilot Mountain project, whilst maintaining an acceptable level of cash flows for the Group to meet all commitments.

The Directors believe the measures they have available will result in sufficient working capital and cash flows to continue in operational existence. Taking this into consideration, the Company has therefore adopted the going concern basis of accounting in the preparation of the financial statements.

3.         Intangible assets - Prospecting and exploration rights

Rights acquired with subsidiaries are recognised at fair value at the date of acquisition. Other rights acquired and development expenditure is recognised at cost.

The Group recognises expenditure as exploration and evaluation assets when it determines that those assets will be successful in finding specific mineral resources (IFRS 6 assets). Expenditure included in the initial measurement of exploration and evaluation assets and which are classified as intangible assets relate to the acquisition of rights to undertake topographical, geological, geochemical and geophysical studies, exploratory drilling, trenching, sampling and other activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource.

Capitalisation of pre-production expenditure ceases when the mining property is capable of commercial production.

When a project is deemed not feasible, related costs are expensed as incurred. Costs incurred include any costs pertaining to technical and administrative overheads. Administration costs that are not directly attributable to a specific exploration area are expensed as incurred, and subsequently capitalised if it is reasonably certain that a resource will be defined.

Capitalised development expenditure will be measured at cost less accumulated amortisation and impairment losses.

4.         Operating expenses

Operating expenses include:		Year ended 30 June 2023		Period ended 30 June 2023
		US$'000		US$'000
Staff costs		238		47
Share based payment expense		51		-
Auditor's remuneration - audit services		35		19
Recharged to Power Metal Resources Plc		-		(46)
Other administrative expenses		554		801
		878		821

Auditor's remuneration in respect of the Company amounted to US$35k (period ended 30 June 2022: US$19k).

5.         Intangible assets 

	Group Prospecting and exploration rights US$'000		Company Prospecting and exploration rights US$'000
Cost
As at 22 April 2021	-		-
Additions	7,240		4,068
Balance at 30 June 2022	7,240		4,068
As at 01 July 2022	7,240		4,068
Additions	374		374
Effect of foreign exchange	182		185
Balance at 30 June 2023	7,796		4,627
Impairment
As at 22 April 2021	-		-
Balance at 30 June 2022	-		-
As at 01 July 2022	-		-
Balance at 30 June 2023	-		-
Net book value
At 30 June 2022	7,240		4,068
At 30 June 2023	7,796		4,627

Intangible assets relate to exploration and evaluation project costs capitalised as at 30 June 2023. Additions to project costs during the period ended 30 June 2023 were in relation to projects in Nevada, USA. The exploration projects comprise of the Pilot Mountain Project, Golconda Summit Project, Stonewall Project and Garfield Project. The Group is the operator of the Golconda Summit Project and this is held under an earn-in right from the mineral claim owner under an option agreement.

Garfield, Stonewall, Golconda Summit and Pilot Mountain Projects

The Garfield and Stonewall exploration projects both located in Nevada were acquired in June 2021 by Golden Metal. A high-resolution soil geochemical survey was carried out at the Garfield property during the year with results pending at year end. The  soil survey assay results will help Golden Metal in targeting additional copper-gold-silver mineralisation.

During the previous year, a detailed desktop study was undertaken for the Stonewall project which identified multiple targets for follow up exploration programmes.

Golden Metal acquired 100% of the Pilot Mountain project during the previous year and commissioned a high-resolution three-dimensional induced polarisation geophysics survey, with results presented prior to year end. The survey identified five high-priority exploration targets for follow up exploration. This is Golden Metal's flagship project.

Golden Metal is also the operator of the Golconda Summit Project which is held under an earn-in right from the mineral claim owner under an option agreement. Recently obtained historical dataset from a high-resolution geochemical soil survey covering the entirety of the Golconda Summit Project has highlighted three zones of strongly anomalous arsenic and gold mineralisation for further investigation.

In addition. rock sample assay results from a geological mapping and sampling programme over Golconda Summit, undertaken by Golden Metal's in-country senior geological consultant, have confirmed strong arsenic (pathfinder for Carlin-type gold mineralisation) and gold anomalism suggesting the potential presence of a geological feeder zone.

6.         Trade and other receivables

Group		As at 30 June 2023 US$'000		As at 30 June 2022 US$'000
VAT receivable		49		89
Amounts due from related parties		-		80
Other receivables		237		-
Trade and other receivables		286		169

7.         Share capital

	Number of ordinary shares
	Year ended 30 June 2023		Period ended 30 June 2022
Balance at beginning of year	59,994,377		100
Issued for cash	25,005,878		59,994,277
In issue at 30 June - fully paid (par value 0.1p)	85,000,255		59,994,377

	Ordinary share capital
	Year ended 30 June 2023 US$		Period ended 30 June 2022 US$
Balance at beginning of year	727,709		1
Share issues	315,351		727,708
Balance at 30 June	1,043,060		727,709

	Share premium
	Year ended 30 June 2023 US$		Period ended 30 June 2022 US$
Balance at beginning of year	4,126,111		-
Share issues	2,365,132		4,126,111
Expenses relating to share issues	(296,582)		-
Balance at 30 June	6,194,661		4,126,111

The shares have attached to them full voting, dividend, and capital distribution (including winding up) rights; they do not confer any rights of redemption.

On 10 May 2023, the Company was admitted to trading on AIM, issuing a total of 23,317,643 new ordinary shares at a price of US$0.10 (£0.085). The total raised via the placing on admission was US$2,499,722 (£1,982,000)  before issue costs, some of which were incurred in the prior year.

There was also a further issue of bonus shares to the Directors on the Board at the date of admission to AIM; the total number of ordinary shares issued to the directors was 882,353 with a total value of US$94,591 (£75,000). Further, on 9 June 2023, 805,882 contract shares were issued to Mrs Turkmani for consulting fees for a two-year period with a total value of US$86,171 (£68,500). Both the director bonus shares, and the contract shares are held in escrow.

8.         Earnings per share

Basic and diluted loss per share

The calculation of basic and diluted loss per share is based on the loss attributable to ordinary shareholders of US$848k (period ended 30 June 2022: US$821k), and a weighted average number of ordinary shares in issue of 63,422,112 (period ended 30 June 2022: 19,862,661). The basic and diluted earnings per share are the same given the loss for the year, making the outstanding share options and warrants anti-dilutive.

9.                     Trade and other payables

Group and company		As at 30 June 2023 US$'000		As at 30 June 2022 US$'000
Trade payables		139		150
Other payables		59		-
Accrued expenses		216		-
		414		150

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.

For further information please visit https://www.goldenmetalresources.com/or contact:

Golden Metal Resources plc Oliver Friesen (CEO)	Tel: [phone]
Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O'Driscoll	Tel: [phone]
First Equity Limited Broker Jonathan Brown/Jason Robertson	Tel: [phone]

NOTES TO EDITORS

The Projects:

Pilot Mountain Project

The Pilot Mountain project is an advanced exploration and mineral resource definition stage project located in Mineral County in western Nevada. The project covers an area of 14.80 km2 (3,656.1 acres) and is located 200km southeast of Reno and 18km east of Mina, Nevada. It is well situated for the supply of power, water and skilled labour and proximity to transport infrastructure in Mineral County and is centred around four existing mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation. The Pilot Mountain project consists of 176 active lode mining claims and 4 filed mill site claims. The four mill site claims filed at the former Dunham mill site have secure access to groundwater supply sufficient for the proposed project.

Kibby Basin Lithium Project

The Kibby Basin Project covers two claim packages which are prospective for lithium brine mineralisation. The southern claim package is less than 250m from a 2022 drillhole which returned a significant interval (169m) of lithium brine mineralisation which was determined to be open in all directions. The Project is less than 5km to the southeast of the Company's flagship Pilot Mountain Project.

Golconda Summit Project

Golden Metal is the operator of the Golconda Summit project, which is held under an earn-in right to acquire up to 100 per cent. of the project from the mineral claim owner pursuant to an option agreement. The Golconda Summit project is an exploration stage gold and silver project located in Humboldt County and situated at the confluence of the Getchell and Battle Mountain - Eureka metallogenic trends, and consists of 44 lode mining claims, covering a total area of approximately 3.22 km2 (795.4 acres) located approximately 27km east of Winnemucca.

Garfield Project

The Garfield Project is a exciting copper-gold-silver prospect consisting of 39 lode mining claims covering 3.23 km2 (797.9 acres) located in Mineral County, Nevada, approximately 14km due east of the town of Hawthorne and 120km due west-northwest of Tonopah. Exploration to date has included detailed geochemical sampling and follow up analysis which highlighted the presence of both skarn-type and porphyry style mineralisation and alteration at the 'High-Grade Zone'. Further mapping, prospecting and rock sampling is now completed with further results pending.

Stonewall Project

The Stonewall project is an exploration stage gold-silver property prospective for epithermal gold-silver mineralisation. The property consists of 19 lode mining claims covering 1.59 km2 (392.5 acres) located on the northern flank of Stonewall Mountain, on the western edge of the Nellis Airforce Range Restricted Access Area, in Nye County, Nevada, approximately 24km south-east of the historic gold mining town of Goldfield and 60km due south of Tonopah.

 

END