Interim Results

Hamak Gold Limited

28 September 2023

 

 

28 September 2023

Hamak Gold Limited

("Hamak Gold" or the "Company")

Interim Results

Hamak Gold Limited (LSE: HAMA) is pleased to announce its results for the six-month period ending 30 June 2023 (the "period"). 

Highlights

·    £295,750 raised (before costs) for continuation exploration at the Nimba licence

·    Consulting group GeoFocus retained to conduct a detailed Induced Polarisation ("IP") geophysical survey of the Nimba licence

·   Some 21-line kilometres of geophysical survey successfully completed over the high-grade Ziatoyah gold discovery and northern gold in soil anomaly

·    Structural interpretation and evaluation of geology around the Ziatoyah prospect completed

·    Several priority drill targets selected based on geophysical anomalies and structural targets

Highlights Post Period

·    £350,000 raised (before costs) to fund drilling programme at the Nimba Licence

·    13 holes drilled for 1000.60m to test geophysical and structural targets, currently awaiting assays and interpretation

Karl Smithson, Executive Director of Hamak Gold commented:

"The first half of 2023 has seen the team at Hamak Gold focus on the promising high-grade Ziatoyah gold discovery in the Nimba licence, where initial drilling has intersected 20m at 7g/t Au near surface. These developments have included structural mapping and the completion and interpretation of a detailed geophysical survey over the immediate area around the discovery. Several drill targets were selected based on the results and a 1,000m drill programme was completed over a number of these in the quarter following the interim report period. 

"We are encouraged by the exploration progress being made to identify extensions to the high-grade gold mineralization discovered in the Nimba licence.  Further work will continue to focus on detailed mapping, structural interpretation and investigations into the extensive 3km x 1km gold in soil anomaly associated with the gold discovery already made."

For further information you are invited to view the company's website at www.hamakgold.com or please contact:

Hamak Gold Limited Amara Kamara Karl Smithson	[phone] [phone]
Peterhouse Capital Limited (Broker) Lucy Williams Guy Miller Yellow Jersey PR Sarah Hollins Annabelle Wills	[phone] [phone]

About Hamak Gold Limited

Hamak Gold Limited (LSE: HAMA) is a UK listed company focussed on gold exploration of two priority exploration licences in highly prospective areas of Liberia, where significant drilling results have identified a new high-grade gold discovery with the discovery hole returning 20m @ 7g/t Au near surface in the Nimba Licence.

INTERIM MANAGEMENT REPORT

Operating Review

The Company's focus during the period was dedicated to the Nimba Licence and in particular the high-grade Ziatoyah gold discovery, where in May 2023, the Company announced high priority drill targets were identified following the competition of a geophysical survey.

Licence Holdings

Hamak Gold holds two exploration licences, covering a combined area of 1,115.20 square kilometres ("km"), Nimba and Gozohn. Bedrock gold discoveries, associated with extensive gold in soil anomalies, have been made at both licences. Exploration efforts during the reporting period focussed on the Nimba licence Ziatoyah gold discovery.

Nimba Licence

The Nimba Licence (MEL7001518) covers an area of 985.60 square km and is located approximately 120 km to the north-east of the Gozohn licence and some 25km west of the 3-million-ounce ("Moz") Ity Gold Mine in neighbouring Cote D'Ivoire.

Since the Company's IPO in March 2022, detailed soil, trench/channel and rock chip sampling have been completed with positive results. In late 2022 this culminated in the discovery of an outcropping (at surface) gold mineralized metadolerite unit at a site called Ziatoyah, which was subsequently drilled and returned a best result of 20m at 7g/t Au near surface under the mineralized outcrop. 

The gold in soil anomaly extends over a 3km by 1km northeast trending area, where outcrop is limited.  Streams that dissect the anomaly are exploited by artisanal gold miners, suggesting that the extent of the anomaly may be related to an extensive hard rock gold deposit. 

The gold mineralization intersected at Ziatoyah in the first drilling programme, and observed in outcrop of the mineralized metadolerite unit, suggests that the gold occurs as free grains within disseminated crystalline and aggregates of vetiform pyrite attaining levels of between 1% and 10% of the rock mass which is dominated by locally carbonatized metadolerites. Microscopic free gold has also been identified at numerous points within the mineralized sections of the drill core.

Based on the high percentage of disseminated sulphides (pyrite) associated with the gold, the Induced Polarisation (IP) geophysical technique was considered best suited to define the disseminated sulphide and gold-bearing mineralized units below surface. International geophysical consulting group Geo Focus was contracted to undertake the IP survey during the first quarter of 2023.

A total of 21-line km of survey were run along traverses varying from 800 metres ("m") to 1,200m with line spacings of 100m and 200m.  These lines were chosen to cover the Ziatoyah gold discovery in the vicinity of the significant drill intersection of 20m at 7 grammes per tonne ("g/t") Au as well as the northern part of the 3km x 1km strong gold in soil anomaly. An initial IP Orientation/Pilot survey block was surveyed (at 25m and 50m dipole-dipole spacing) directly over the Ziatoyah discovery outcrop and Drill Holes 1 and 2 to get the "fingerprint" of the gold discovery and establish the optimal survey parameters to be applied and conducted over the wider discovery area and northern soil anomaly during the IP Follow Up survey.

Processing and interpretation of the geophysical data resulted in the identification of a number of strong IP chargeability and resistivity anomalies that can be correlated to the Ziatoyah discovery and the gold in soil anomalies further to the north.

Structural interpretation based on the detailed multi-element geochemical assays of the soil sampling, surface outcrop and drill core was also carried out. A number of drill targets were selected with the objective of defining extensions of the high-grade Ziatoyah gold discovery. 

Post period end, a 1,000m drill programme was carried out.  A total of 12 angled holes and one vertical hole were drilled, core logged, structural measurements made, core cut and submitted for assay.  The Company is currently awaiting results which it hopes to share with the market in the second half of 2023.

Gozohn Licence

The Gozohn licence (MEL 7002318) covers an area of 129.60 square km and is located some 30 km to the south of the high-grade Kokoya Gold mine operated by MNG Gold. The licence is host to a number of structurally controlled greenstone belts similar to those at Kokoya, with strongly deformed amphibolite, quartzite, schist and banded ironstone formations which generally occur as topographic highs.

Previous soil, rock and trench sampling has identified a 1,500m long gold in soil anomalies with rock chip samples returning grades of 2.56g/t Au and 3.37 g/t Au, which are interpreted as being related to gold in quartz veins that permeate the greenstone belt geology.

No exploration was undertaken on Gozohn during the reporting period as resources were focussed on Nimba as a priority.

Outlook

The Company anticipates receiving the aforementioned drill assay results for its Ziatoyah site during the next quarter. These results will subsequently determine Hamak's next steps in its efforts to further explore the Ziatoyah gold deposit and wider gold in soil anomalies, which, subject to funding, may involve a more extensive drill programme to deliver a maiden gold resource for the Company.

The principal risks identified for the Company in the forthcoming reporting period include the scheduled elections in Liberia in the final quarter of 2023.  Whilst recent elections in the Country have passed relatively peacefully, any serious disturbance or public disorder could adversely affect the efficiency and continuity of the exploration activities for a period of time.  In addition, the capital markets for junior exploration companies remains challenging.  The Company will seek to raise further capital going forward and continuation of the exploration programme will be contingent on the Company being able to successfully raise funds.

Responsibility Statement

The Directors confirm that to the best of their knowledge:

(a) the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards;

(b) the interim management report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year; and

(c) the interim management report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules (disclosure of related parties' transactions and changes therein). 

Karl Smithson

Executive Director

28 September 2023

 

Hamak Gold Ltd

INTERIM RESULTS

30 June 2023

Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
		Note		6 months ended 30 June 2023 Unaudited	6 months ended 30 June 2022 Unaudited
Continuing operations				$000	$000
General and administrative expenses				261	1,489
Operating Loss				261	1,489
Loss before taxation				261	1,489
Tax charge				-	-
Loss after taxation				261	1,489
Loss for the period				261	1,489
Loss per share from continuing operations in cents per share: Basic and diluted		6		(0.006)	(0.10)

Condensed Consolidated Statement of Financial Position
For the six months ended 30 June 2023
	Note		6 months ended 30 June 2023 Unaudited	Year ended 31 December 2022 Audited
			$000	$000
Non-current assets
Property, plant and equipment	7		28	33
Intangible assets	8		1,502	1,481
Total non-current assets			1,530	1,514
Current assets
Trade and other receivables			17	26
Cash and cash equivalents	9		12	12
Total current assets			29	38
Total assets			1,559	1,552
Equity and Liabilities
Equity attributable to owners of the parent
Share capital	10		5,691	5,147
Share based payment reserve			10	80
Accumulated deficit			(4,237)	(4,086)
Total equity			1,464	1,141
Current liabilities
Trade and other payables			95	411
Unsecured convertible loan			-	-
Total current liabilities			95	411
Total equity and liabilities			1,559	1,552

Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
	Share capital	Share based payment	Accumulated deficit	Total equity
	$000	$000	$000	$000
Balance at 1 January 2022	-	-	(355)	(355)
Loss for the period	-	-	(1,489)	(1,489)
Issue of share capital	2,734		-	2,734
Grant of share-based awards	-	1,181	-	1,181
Balance at 30 June 2022 - Unaudited	2,734	1,181	(1,844)	2,071
Loss for the period	-	-	(2,242)	(2,242)
Issue of share capital	239	-	-	239
Issue costs	(215)	-	-	(215)
Issue of shares on exercise of share awards	2,389	(3,570)	-	(1,181)
Grant of share-based awards	-	2,469	-	2,469
Balance at 31 December 2022 - Audited	5,147	80	(4,086)	1,141
Loss for the period	-	-	(261)	(261)
Issue of share capital	563	-	-	563
Issue costs	(19)	-	-	(19)
Share-based awards exercised or lapsed	-	(110)	110	-
Share based awards charge	-	40	-	40
Balance at 30 June 2023 - Unaudited	5,691	10	(4,237)	1,464

Unaudited Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
						6 months ended 30 June 2023 Unaudited	6 months ended 30 June 2022 Unaudited
						$000	$000
Cash flows from operating activities
Operating loss						(261)	(1,489)
Adjusted for:
Share based payment charge						40	1,181
Directors' fees paid in shares						111	40
Depreciation and amortisation						5	2
Unrealised foreign exchange change						2	6
Net cash flow before changes in working capital						(103)	(260)
Adjusted for by:
Movement in payables						(225)	(285)
Movement in receivables						8	-
Net cash flow from operating activities						(320)	(545)
Investing activities
Purchase of property, plant and equipment						-	(26)
Exploration expenditure						(21)	(336)
Net cash flow from investing activities						(21)	(362)
Cash flow from financing activities
Issue of share capital (net of costs)						341	1,167
Net cash flow from financing activities						341	1,167
Net change in cash and cash equivalents during the year/period						-	260
Cash and cash equivalents at beginning of the period						12	(2)
Cash and cash equivalents at end of the period						12	258

Notes to the condensed consolidated interim financial information

1.   GENERAL INFORMATION

Hamak Gold Ltd ("Company") was incorporated on 6 May 2021 and was incorporated under the BVI Business Companies Act, 2004 (as amended) of the British Virgin Islands with Company number 2062435. The Company is limited by shares. The Company's registered office is Pasea Estate, P.O. Box 958, Road Town, Tortola, VG1110, BVI.

The Company is a public limited company, which is listed on the Standard Listing of the London Stock Exchange.  Admission was completed on 1 March 2022. The principal activity of the Company is mineral exploration.

The Company together with its wholly owned subsidiary Hamak Gold Limited (Liberia) is referred to as the Group.

2.   BASIS OF PREPARATION

The consolidated interim financial statements for the six months ended 30 June 2023 have been prepared in accordance with the requirements of IAS 34 "Interim Financial Statements". The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2022, which have been prepared in accordance with the UK-adopted International Accounting Standards and as applied in accordance with the provisions of the applicable law. The report of the auditors on those financial statements was unqualified.

The interim financial statements of the Group are unaudited financial statements for the six months ended 30 June 2023 have not been audited or reviewed by the Group's auditors. The financial statements have been prepared under the historical cost convention. The consolidated financial statements are presented in United States Dollars ($), which is the Group's functional and presentation currency.

Comparatives

The comparatives presented are for the unaudited 6 months period ended 30 June 2022 for the Condensed Consolidated Statement of Comprehensive Income, Condensed Consolidated Statement of Changes in Equity, Condensed Consolidated Statement of Cash Flows and for the audited year ended 31 December 2022 for the Condensed Consolidated Statement of financial Position and Condensed Consolidated Statement of Changes in Equity.

Going concern

The Company is at an early stage in progressing its exploration assets and has limited overhead costs. Funds raised from the IPO and subsequent share placements have been used primarily to fund exploration work on its licences in Liberia. Subsequent to the IPO in March 2022, in January 2023 the Company raised £295,750 before expenses by the placement of new shares followed after the end of the reporting period in July 2023 by a further £350,000 before expenses. Additional plans are in place to raise further working capital to enable the Company to progress its work programmes.

The Directors have a reasonable expectation that the Company will be able to raise sufficient funds in order to meet planned expenditure for at least 12 months from the date of approval of these interim consolidated financial statements and therefore the interim consolidated financial statement have been prepared on a going concern basis.

3.   SIGNIFICANT ACCOUNTING POLICIES

In preparing these condensed consolidated financial statements, the Group's accounting policies were consistent with those applied to the Group's consolidated financial statements for the year ended 31 December 2022.

4.   CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

The judgements, estimates and assumptions applied in the condensed interim financial statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual financial statements for the year ended 31 December 2022.

5.   BUSINESS AND GEOGRAPHICAL REPORTING

The Group's chief operating decision maker is considered to be the executive directors (the 'Executive Board').  The Executive Board evaluates the financial performance of the Group. During the period the Group had one activity only. The whole of the value of the Group's net assets was attributable to mineral exploration.

6.   LOSS PER SHARE

Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

		6 months ended 30 June 2023	6 months ended 30 June 2022
		$000	$000
Loss from continuing operations attributable to equity holders of the company		(261)	(1,489)
Weighted average number of ordinary shares in issue		44,964	14,251
Basic and fully diluted loss per share from continuing operations in cents		(0.006)	(0.10)

7.   PROPERTY, PLANT AND EQUIPMENT

	Plant and Equipment	Total
	$000	$000
Cost
At 1 January 2023	41	41
Additions	-	-
At 30 June 2023	41	41
Cost
At 1 January 2022	-	-
Additions	41	41
At 31 December 2022	41	41
Accumulated Depreciation
At 1 January 2023	8	8
Depreciation charge	5	5
At 30 June 2023	13	13
Accumulated Depreciation
At 1 January 2022	-	-
Depreciation charge	8	8
At 31 December 2022	8	8
Net book value
At 30 June 2023	28	28
At 31 December 2022	33	33

8.   INTANGIBLE ASSETS

	Mineral Properties	Licences	Total
	$000	$000	$000
Cost
At 1 January 2023	618	863	1,481
Additions	21	-	21
At 30 June 2023	639	863	1,502
Cost
At 1 January 2022	-	-	-
Additions	618	863	1,481
At 31 December 2022	618	863	1,481
Accumulated Amortisation
At 1 January 2023	-	-	-
Amortisation charge	-	-	-
At 30 June 2023	-	-	-
Accumulated Amortisation
At 1 January 2022	-	-	-
Amortisation charge	-	-	-
At 31 December 2022	-	-	-
Net book value
At 30 June 2023	639	863	1,502
At 31 December 2022	618	863	1,481

On 1 March 2022, the Group acquired two mineral exploration licences (MELs), being Nimba and Gozohn and an option to acquire five other MELs in consideration for $1,355,460.

Following a full review by the Board, certain parts of the Gozohn licence were relinquished during the period resulting in $516,000 being part of the licence acquisition and exploration costs being written off.

9.   CASH AND CASH EQUIVALENT

		6 months ended 30 June 2023 Unaudited	Year ended 31 December 2022 Audited
		$000	$000
Cash at bank		12	12
		12	12

10. SHARE CAPITAL

	Number of ordinary shares of nil par value	Share capital $000	Share premium  $000
Total as at 1 January 2022	50,000	-	-
Share issue - licence acquisition	9,283,333	-	1,355
Share issue - placing	9,550,000	-	1,272
Share issue - directors fees	1,230,944	-	148
Share issue - corporate fees	983,000	-	131
Share issue - conversion of loan notes	666,667	-	67
Share issue - vesting shares	17,940,000	-	2,389
Share issue - costs	-	-	(215)
At 31 December 2022	39,703,944	-	5,147
Share issue - in lieu of services provide	781,250	-	92
Share issue - placing	3,380,000	-	359
Share issue - directors fee shares	914,277	-	111
Share issue - exercise of performance rights	953,107	-	-
Share issue - costs	-	-	(19)
Total as at 30 June 2023	45,732,578	-	5,691

For a more detailed description of the share capital movements for 2022 refer to the audited financial statements for the year ended 31 December 2023

Placing

In January 2023 the Company raised gross proceeds of £295,750 ($359,000) issuing 3,380,000 new ordinary shares at £0.0875 per share.

Shares issued for services

In January 2023 the Company issued 781,250 new ordinary shares at £0.10 per share to the directors of Cestos Drilling in lieu of £78,125 payable on completing a 450m drilling programme at Nimba.

Directors fees

During the period 914,277 new ordinary shares were issued to the non-executive Directors of the Company at 10p per shares in lieu of quarterly fees.

Exercise of performance rights

In March 2023 the Group achieved the first drill intersection showing significant gold mineralisation (as determined by the Senior Technical Consultant to the Board), triggering the vesting of 953,107 performance rights. Accordingly, 953,107 new ordinary shares were issued at NIL cost to directors and others.

Reconciliation of movement of share capital to the movements in the cashflow statement

	Share capital $000	Share premium  $000
At 31 December 2022	-	5,147
Share capital issued for cash	-	341
Share capital issued in settlement of contractual obligations	-	203
Total as at 30 June 2023	-	5,691

11. SHARE BASED PAYMENTS

Performance Rights

At 30 June 2023, the Company had outstanding performance rights to subscribe for ordinary shares as follows:

Weight average exercise price	Expiry date	At 01/01/203	Issued	expired or lapsed	At 31/12/2022
Nil	07/07/2032	1,064,924	-	(1,064,924)	-
Nil	07/07/2032	1,064,924	-	(111,817)	953,107
		2,129,848	-	(1,064,924)	953,107

Information on the inputs and fair value calculations relating to the performance rights are shown in the audited financial statements for the year ended 31 December 2022

During the period 953,107 performance rights were exercised by directors and others and 223,634 performance rights lapsed, relating to Walter McCarthy. 

12. RELATED PARTY TRANSACTIONS

During the period certain directors were awarded Ordinary Shares in the Company. Further details can be found in note 10, Share Capital.

13. EVENTS AFTER THE REPORTING DATE

In July 2023, the Company raised £350,000 before costs from the placement of 4,000,000 new ordinary shares of no par value at a price of 8.75 pence per share of which 359,955 were issued in settlement of third party drilling costs.

 

END