Interim Results

Power Metal Resources PLC

30 December 2024

 

30 December 2024

Power Metal Resources plc ("POW", "Power Metal" or the "Company")

Interim Results

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed exploration company with a global project portfolio, announces unaudited interim financial results for the six month period ending 30 September 2024, in accordance with AIM Rule 17.

On 2 October 2024, the Company announced that that its accounting reference date has been changed to 31 December, in order to provide the Company with greater flexibility to complete its audit after those of its subsidiaries, a significant number of which have year ends of 30 September. As a result, the current accounting period was extended to 15 months, ending on 31 December 2024.

Following the 15 month period, future results will follow a standard timetable of interim accounts for the six months to 30 June and full year audited results to 31 December.

The Company expects to publish its audited accounts for the 15 months ending 31 December 2024 in early June 2025 and by no later than 30 June 2025 in any event.

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.powermetalresources.com/ or contact:

Power Metal Resources plc
Sean Wade (Chief Executive Officer)	[phone]
SP Angel Corporate Finance LLP (Nomad and Joint Broker)
Ewan Leggat/Caroline Rowe	[phone]
Tamesis Partners LLP (Joint Broker)
Richard Greenfield/Charlie Bendon	[phone]
BlytheRay (PR Advisors) Tim Blythe/Megan Ray	[phone]

NOTES TO EDITORS

Power Metal Resources plc (AIM:POW,OTCQB:POWMF) is a London-listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa, Saudi Arabia and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

POWER METAL RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

	Note		6 months ended 30-Sep-24 (unaudited) £'000		6 months ended 31-Mar-24 (unaudited) £'000		Year ended 30-Sep-23 (audited) £'000
Revenue			526		-		78
Cost of sales			(49)		-		-
Gross profit			477		-		78
Operating expenses			(2,092)		(1,451)		(2,777)
Fair value gains through profit or loss			4,953		1,050		1,604
Profit/(Loss) from operating activities			3,338		(401)		(1,095)
Share of post-tax losses of equity accounted joint ventures			-		(79)		(219)
Profit/(Loss) before taxation			3,338		(480)		(1,314)
Taxation	4		-		-		-
Profit/(Loss) for the period			3,338		(480)		(1,314)
Items that will or may be reclassified to profit or (loss):
Exchange translation			41		-		6
Total other comprehensive income			41		-		6
Total comprehensive income/(expense) for the period			3,379		(480)		(1,308)
Profit/(Loss) for the period attributable to:
Owners of the parent			3,431		(399)		(1,096)
Non-controlling interests			(93)		(81)		(218)
			3,338		(480)		(1,314)
Total comprehensive loss attributable to:
Owners of the parent			3,476		(408)		(1,083)
Non-controlling interests			(97)		(72)		(225)
			3,379		(480)		(1,308)
Profit/(Loss) per share from continuing operations attributable to the ordinary equity holder of the parent:
Basic and diluted profit/(loss) per share (pence)	5	3.09			(1.78)		(1.19)

POWER METAL RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2024

	Note	30-Sep-24 (unaudited) £'000		31-Mar-24 (unaudited) £'000		30-Sep-23 (audited) £'000
Assets
Intangible assets		5,103		5,503		4,947
Investments in joint ventures		500		281		290
Financial assets at fair value through profit or loss		868		1,186		1,161
Right of use asset		68		-		-
Property, plant & equipment		30		12		8
Non-current assets		6,569		6,982		6,406
Financial assets at fair value through profit or loss		13,087		7,712		7,188
Trade and other receivables		2,141		1,065		481
Inventory		25		-		-
Cash and cash equivalents		877		455		1,098
Assets classified as held for sale		697		-		191
Current assets		16,827		9,232		8,958
Total assets		23,396		16,214		15,364
Equity
Share capital	6	8,674		8,664		8,531
Share premium		28,753		28,688		27,497
Shares to be issued		500		-		-
Capital redemption reserve		5		5		5
Share based payments reserve		2,900		1,770		1,712
Foreign exchange reserve		139		94		103
Accumulated losses		(21,199)		(24,632)		(24,276)
Total		19,772		14,589		13,572
Non-controlling interests		745		792		907
Total equity		20,517		15,381		14,479
Liabilities
Trade and other payables		1,266		833		885
Current lease liabilities		32		-		-
Current borrowings		500		-		-
Current liabilities		1,798		833		885
Non-current liabilities
Non-current lease liabilities		38		-		-
Non-current borrowings		1,043		-		-
Total non-current liabilities		1,081		-		-
Total liabilities		2,879		833		885
Total equity and liabilities		23,396		16,214		15,364

POWER METAL RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

	Share capital £'000		Share premium £'000		Shares to be issued £'000		Capital redemption reserve £'000		Share based payment reserve £'000		Foreign exchange reserve £'000		Accumulated losses £'000		Total £'000		Non-controlling interests £'000		Total equity £'000
Balance at 1 October 2023 (audited)	8,531		27,497		-		5		1,712		103		(24,276)		13,572		907		14,479
Profit/(loss) for the period	-		-		-		-		-		-		3,034		3,034		(174)		2,860
Total other comprehensive expense	-		-		-		-		-		36		-		36		5		41
Total comprehensive income for the period	-		-		-		-		-		36		3,034		3,070		(169)		2,901
Issue of ordinary shares	143		1,256		-		-		-		-		-		1,399		-		1,399
Shares to be issued	-		-		500		-		-		-		-		500		-		500
Share based payments	-		-		-		-		1,188		-		-		1,188		-		1,188
Non-controlling interest adjustment on step acquisition of subsidiaries	-		-		-		-		-		-		-		-		50		50
Non-controlling interest adjustment	-		-		-		-		-		-		43		43		(43)		-
	143		1,256		500		-		1,188		-		43		3,130		7		3,137
Balance at 30 September 2024 (unaudited)	8,674		28,753		500		5		2,900		139		(21,199)		19,772		745		20,517

POWER METAL RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 MARCH 2024

	Share capital £'000		Share premium £'000		Capital redemption reserve £'000		Share based payment reserve £'000		Foreign exchange reserve £'000		Accumulated losses £'000		Total £'000		Non-controlling interests £'000		Total equity £'000
Balance at 1 October 2023 (audited)	8,531		27,497		5		1,712		103		(24,276)		13,572		907		14,479
Loss for the period	-		-		-		-		-		(399)		(399)		(81)		(480)
Total other comprehensive (expense)/income	-		-		-		-		(9)		-		(9)		9		-
Total comprehensive loss for the period	-		-		-		-		(9)		(399)		(408)		(72)		(480)
Issue of ordinary shares	133		1,191		-		-		-		-		1,324		-		1,324
Share based payments	-		-		-		58		-		-		58		-		58
Non-controlling interest adjustment	-		-		-		-		-		43		43		(43)		-
	133		1,191		-		58		-		43		1,425		(43)		1,382
Balance at 31 March 2024 (unaudited)	8,664		28,688		5		1,770		94		(24,632)		14,589		792		15,381

POWER METAL RESOURCES PLC

AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2023

	Share capital		Share premium		Capital redemption reserve		Capital contribution reserve		Share based payment reserve		Foreign exchange reserve		Accumulated losses		Total		Non-controlling interests		Total equity
	£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
Balance at 1 October 2022 (audited)	8,065		23,312		5		2,322		1,638		90		(23,740)		11,692		2,065		13,757
Loss for the period	-		-		-		-		-		-		(1,096)		(1,096)		(218)		(1,314)
Other comprehensive income/(expense)	-		-		-		-		-		13		-		13		(7)		6
Total comprehensive income/(loss) for the period	-		-		-		-		-		13		(1,096)		(1,083)		(225)		(1,308)
Issue of ordinary shares	466		4,405		-		-		-		-		-		4,871		-		4,871
Costs of share issues	-		(220)		-		-		-		-		-		(220)		-		(220)
Share based payments	-		-		-		-		74		-		-		74		-		74
Non-controlling interest adjustment on step acquisition of subsidiaries	-		-		-		-		-		-		-		-		99		99
Non-controlling interest adjustment on step disposal of subsidiaries	-		-		-		-		-		-		22		22		(22)		-
Non-controlling interest adjustment on disposal of subsidiaries	-		-		-		(2,322)		-		-		538		(1,784)		(1,010)		(2,794)
Total transactions with owners	466		4,185		-		(2,322)		74		-		560		2,963		(933)		2,030
Balance at 30 September 2023 (audited)	8,531		27,497		5		-		1,712		103		(24,276)		13,572		907		14,479

POWER METAL RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

	6 months ended 30-Sep-24 (unaudited) £'000		6 months ended 31-Mar-24 (unaudited) £'000		Year ended 30-Sep-23 (audited) £'000
Cash flows from operating activities
Profit/(loss) for the period	3,338		(480)		(1,314)
Adjustments for:
- Fair value adjustment	(5,081)		(1,050)		(1,604)
- Share of post-tax losses of equity accounted   joint ventures	-		79		219
- (Gain)/loss on disposals	(100)		504		(175)
- Expenses settled in shares	-		24		129
- Amortisation	14		-		-
- Depreciation	2		3		5
- Finance costs	94		-		-
- Foreign exchange differences	208		54		(33)
- Share based payment expense	85		58		30
	(1,440)		(808)		(2,743)
Changes in working capital:
- Trade and other receivables	(338)		(84)		(169)
- Trade and other payables	183		(105)		797
Net cash used in operating activities	(1,595)		(997)		(2,115)
Cash flows from investing activities
Acquisition of subsidiary	387		-		-
Investment in financial assets at fair value through profit or loss	(188)		(3)		(291)
Investments in associates	-		(70)		(316)
Investments in intangibles	(164)		(366)		(797)
Cash related to deconsolidated subsidiary	-		-		(410)
Purchase of property, plant and equipment	-		(7)		(8)
Net cash generated from/(used in) investing activities	35		(446)		(1,822)
Cash flows from financing activities
Proceeds from issue of share capital	-		800		3,616
Shares issued to non-controlling interests by subsidiary	-		-		79
Issue costs	-		-		(220)
Proceeds from borrowings	1,994		-		-
Principal paid on lease liability	(12)		-		-
Net cash flows from financing activities	1,982		800		3,475
Net increase/(decrease) in cash and cash equivalents	422		(643)		(462)
Cash and cash equivalents at beginning of period	455		1,098		1,560
Cash and cash equivalents at end of period	877		455		1,098

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT

1. Reporting entity

Power Metal Resources plc is a company domiciled in the United Kingdom. The unaudited consolidated interim financial report for the six-month period ended 30 September 2024 comprises the results of the Company and its subsidiaries (the "Group").  The Group primarily is involved in the exploration and development of mineral resources in Africa, Australia and Canada.

2. Basis of preparation

(a)          Statement of compliance

As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.

The financial information presented in this interim report has been prepared using accounting policies that are expected to be applied in the preparation of the financial statements for the year ending 31 December 2024.

These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards, and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as endorsed for use in the United Kingdom, and these principles are disclosed in the Financial Statements for the year ended 30 September 2023.

The interim results have been prepared on a going concern basis. The financial information in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The 2024 interim financial report has not been audited.

The Annual Report and Financial Statements for 2023 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2023 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The interim results were approved by the Board of Directors on 28 December 2024.

(b)          Judgements and estimates

Preparing the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense.  Actual results may differ from these estimates.

In preparing this consolidated interim financial report, significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 September 2023.

(c)           Going concern

The interim financial report has been prepared on a going concern basis. Although the Group's assets are not generating revenues, the Directors believe, having considered all available information, including the Company's proven ability to raise further equity funds from its supportive shareholder base, that the Group will have sufficient funds to meet its expected committed and contractual expenditure for the foreseeable future. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial report for the period ended 30 September 2024.

3. Significant accounting policies

The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 September 2023.

4. Taxation

For the six months ended 30 September 2024, no income tax expense has been recognised in the statement of profit or loss. It is expected that the Group has sufficient tax losses carried forward from prior periods to offset the taxable profits generated during the interim period. These carried forward tax losses are expected to be utilised against taxable income for the full financial year, if required.

5. Earnings per share

The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders of the parent of £3,431,000 (March 2024 loss: £399,000), and a weighted average number of ordinary shares in issue of 111,049,292 (March 2024: 84,071,550).

The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the parent, and a diluted weighted average number of ordinary shares of 144,023,616.

The weighted average number presented for the period ending 31 March 2024 above and the year ending 30 September 2023 in the statement of comprehensive income have been adjusted for the effect of a 20 to 1 share consolidation.

6. Issues of Equity

During the period, the Company issued 514,358 shares at a share price of 14.581 pence per share. The shares were issued for the acquisition of a 75% holding in GSA (Environmental) Ltd.

At the period end, the Company had 111,187,774 ordinary shares in issue (31 March 2024: 110,673,416).

At the date of this interim report, the Company had 114,287,742 ordinary shares in issue.

**Ends**

 

END