Half-year Report
15 March 2022
Thor Mining PLC
("Thor" or the "Company")
Half year report
The Directors of Thor Mining plc (AIM, ASX: THR) are pleased to announce the Company's results for the six months ended 31 December 2021.
The Company's Half Year Report was also today lodged with the Australian Stock Exchange ("ASX") as required under the listing rules of the ASX. A copy of the Half Year Report will shortly be available on the Company's website www.thormining.com .
Key Highlights
Gold, Lithium, Nickel, Copper-Gold (Ragged Range in the Pilbara region of Western Australia)
· Maiden reverse circulation ("RC") drilling program at the Sterling Prospect highlighted encouraging quartz veining and sericite-pyrite-fuchsite alteration
Uranium & Vanadium (Colorado & Utah, USA)
· The Company received Bureau of Land Management (BLM) approvals
· Continued progress with the Colorado County approvals for an initial drilling program over several of the Colorado claims
Tungsten-Molybdenum-Copper (Molyhil, NT, Australia)
· Completed diamond drilling to test a newly modelled magnetic target, adjacent to the Molyhil deposit
· Drilling intercepted massive magnetite skarn with disseminated scheelite, molybdenite, and chalcopyrite
Copper-Gold (SA, Australia)
Alford East
· Results from the Company's first phase of diamond drilling highlighted broad high-grade copper-gold intercepts and identified key structural and lithological constraints on mineralisation, suggesting potential zones for extended zones of higher grade copper-gold along strike and at depth
· The Company earned a 51% interest in Alford East by completing the Stage 1 requirements by funding A$500,000 of expenditure and issued the Stage 1 consideration of A$250,000 in fully paid Thor shares
· Initial favourable hydrometallurgical results demonstrate the potential for the metal recovery of copper and gold using environmentally friendly lixiviants
· New 3D geological framework completed to assist drill targeting and hydrological studies.
Kapunda and Alford West
· EnviroCopper Ltd (ECL), the holder and operator of the Kapunda and Alford West projects, in which Thor has 30% equity interest, continued to advance the Kapunda project with push-pull hydrometallurgical test-work for copper extraction for In Situ Recovery ("ISR") assessment
· Alford West activities have focused on desktop hydrogeological studies in preparation for field pump tests
Pilot Mountain
· Pilot Mountain project in Nevada USA was divested in 2021 for US$1.8 million
Nicole Galloway Warland, Managing Director of Thor Mining, commented:
"We are very pleased with the progress made across our project portfolio during the six months ended 31 December 2021. Thor's business model focuses on creating value through the advancement of our diverse asset base targeting critical and battery minerals, positioning the Company well for future growth.
During the period, Thor completed simultaneous drilling programs at the Ragged Range Project in the Pilbara region of Western Austrlalia and Molyhil in the Northern Territory, and, having received Bureau of Land Management (BLM) approvals at our Uranium & Vanadium Project in USA, has begun working through the Colorado County approvals for an initial drilling program over several of the Colorado claims.
At the Sterling Prospect, Ragged Range, our maiden RC drilling program highlighted encouraging quartz veining and sericite-pyrite-fuchsite alteration. Unfortunately, due to mechanical issues, not all targets at the prospect were tested, so the remaining targets will be subject to follow up testing in the program planned for 2022, alongside further exploration for lithium prospectivity, which could enhance the fundamentals of the project. At Molyhil, we are pleased to have announced that diamond drilling has reinforced the newly discovered extension of scheelite-molybdenite-chalcopyrite mineralisation, confirming the project as a new critical minerals discovery. Further exploration drilling is expected at Molyhil in 2022.
We continue to be encouraged by the potential for the recovery of copper and gold using environmentally friendly lixiviants at Alford East, where the first phase of diamond drilling highlighted broad high-grade copper-gold intercepts and identified key structural and lithological constraints on mineralisation, suggesting potential zones for extended zones of higher copper-gold along strike and at depth. A second phase of drilling is currently being designed which will also assess ISR viability. During the period, EnviroCopper Ltd also completed push-pull hydrometallurgical test-work at the Kapunda project and Site Environment Lixiviant Testing (SELT) is anticipated in 2022 with the aim of recovering copper in solution from the deposit.
"Commodity prices have performed well during the period and forecasts are favourable that these conditions will continue further into 2022. With a strong pipeline of news flow expected for the coming months, and project milestones across the portfolio, we look forward to providing further updates on our progress in due course."
This announcement is authorised for release to the market by the Board of Directors.
For further information, please contact:
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Thor Mining PLC
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Nicole Galloway Warland, Managing Director Ray Ridge, CFO / Company Secretary |
Tel: +61 (8) 7324 1935 Tel: +61 (8) 7324 1935 |
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WH Ireland Limited (Nominated Adviser and Joint Broker) |
Tel: +44 (0) 207 220 1666 |
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Jessica Cave / Darshan Patel / Megan Liddell |
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SI Capital Limited (Joint Broker) |
Tel: +44 (0) 1483 413 500 |
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Nick Emerson |
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Yellow Jersey (Financial PR) |
thor@yellowjerseypr.com |
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Sarah Hollins / Henry Wilkinson |
Tel: +44 (0) 20 3004 9512 |
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com , which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.
About Thor Mining PLC
Thor Mining PLC (AIM, ASX: THR; OTCQB: THORF) is a diversified resource company quoted on the AIM Market of the London Stock Exchange, ASX in Australia and OTCQB Market in the United States.
The Company is advancing its diversified portfolio of precious, base, energy and strategic metal projects across USA and Australia. Its focus is on progressing its copper, gold, uranium and vanadium projects, while seeking investment/JV opportunities to develop its tungsten assets.
Thor owns 100% of the Ragged Range Project, comprising 92 km2 of exploration licences with highly encouraging early-stage gold and nickel results in the Pilbara region of Western Australia, for which initial drilling was carried out in 2021
At Alford East in South Australia, Thor is earning an 80% interest in copper deposits considered amenable to extraction via In Situ Recovery techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate of 177,000 tonnes contained copper & 71,000 oz gold¹.
Thor also holds a 30% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine and the Alford West copper project, both situated in South Australia, and both considered amenable to recovery by way of ISR.²
Thor holds 100% interest in two private companies with mineral claims in the US states of Colorado and Utah with historical high-grade uranium and vanadium drilling and production results.
Thor holds 100% of the advanced Molyhil tungsten project, including measured, indicated and inferred resources⁴, in the Northern Territory of Australia, which was awarded Major Project Status by the Northern Territory government in July 2020.
Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.⁵
Notes
MAR
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Thor Mining Plc
Half-year Report
For the six months ended
31 December 2021
HIGHLIGHTS
Gold, Lithium, Nickel, Copper-Gold
The Company focused its attention on the 13km trend of anomalous gold defined by stream and soil sampling at the Sterling Prospect, Ragged Range in the Pilbara region of Western Australia. A small maiden RC drilling program highlighted encouraging quartz veining and sericite-pyrite-fuchsite alteration, which will assist with vectoring in on the stream and soil gold source. Drilling was co-funded by the Western Australian government for A$160,000.
Uranium & Vanadium
The Company has Bureau of Land Management (BLM) approvals and is working through the Colorado County approvals for an initial drilling program over several of the Colorado claims.
Tungsten-Molybdenum-Copper
Diamond drilling to test a newly modelled magnetic target, adjacent to the Molyhil deposit, was completed in December 2021. Drilling intercepted massive magnetite skarn with disseminated scheelite, molybdenite, and chalcopyrite. Drilling was co-funded by the Northern Territory government for A$110,000.
Pilot Mountain project, Nevada USA was divested in 2021 for an agreed value of US$1.8 million.
Copper-Gold
The Company's first phase of diamond drilling highlighted broad high-grade copper-gold intercepts and identified key structural and lithological constraints on mineralisation, suggesting potential zones for extended zones of higher copper-gold along strike and at depth. Initial favourable hydrometallurgical results demonstrate the potential for the metal recovery of copper and gold using environmentally friendly lixiviants. The Company continues to progress the ISR assessment of the Alford East project. The Company earned a 51% interest in Alford East by completing the Stage 1 requirements by funding A$500,000 of expenditure and issued the Stage 1 consideration of A$250,000 in fully paid Thor shares. The South Australian government is co-funding these initial ISR assessment through a grant of A$300,000.
Thor has 30% equity interest in EnviroCopper Ltd (ECL), the holder and operator of the Kapunda and Alford West projects. ECL continued to advance the Kapunda project with push-pull hydrometallurgical test-work for copper extraction for ISR assessment.
OUTLOOK FOR 2022
Gold, Lithium, Nickel, Copper-Gold
Newly defined lithium targets identified in the highly prospective untested area adjacent to the Split Rock Supersuite in the north of the Ragged Range tenure. Ground truthing and potential drilling are planned.
RC drilling is scheduled over the Sterling gold prospect following encouraging sulphides and alteration intercepted in maiden drillholes completed in 2021.
Uranium & Vanadium
The Company is working closely with Colorado County for drilling approvals, for an initial drill program on several of the Colorado claims.
Tungsten-Molybdenum-Copper
Exploration drilling at Molyhil is anticipated in 2022 following the success of the recent magnetic modelling at Molyhil.
Copper
The second phase of drilling at Alford East is being designed, including continuing hydrogeological and hydrometallurgical studies, to assess the ISR viability in contrast to conventional open cut or underground mining.
Kapunda Site Environment Lixiviant Testing (SELT) is anticipated following on from the push-pull test work, aimed at recovering copper in solution from the deposit.
REVIEW OF OPERATIONS
Commodity Prices (source: Argus Metals)
Commodity prices have all taken a run with favourable outlooks for 2022.
Lithium price has soared over the last six months, with lithium carbonates prices ranging from US$11.92/kg to US$38.19/kg in the six-month reporting period. The current price is around US$68.85/kg, forecast to increase further with high global demand and projection of scarcity.
Uranium is on a steady upward trend with prices ranging from US$31.87/lb to US$43.9/lb in the six-month period, as it moves into the green energy space. The uranium futures is currently trading above US$50/lb with a very positive global outlook for nuclear energy following the Russian invasion of Ukraine and the impact of Russian sanctions.
Copper prices have continued to perform well over the six-month period in a tight range between US$9,400/tonne and US$9,681/t. As copper usage surges based on increase demand for electric vehicles, wind turbines and solar panels and the possibility of supply disruption following the Russian invasive of Ukraine a robust demand for copper is forecast with the current price at US$10,220/t.
Due to the ongoing conflict between Russia and Ukraine, gold prices have strengthened to around US$1,900/oz, with the price outlook remaining positive.
Tungsten and molybdenum prices over the last six months have been stable, with tungsten sitting around US$274/mtu and molybdenum at US19.1/lb. The Molyhil project remains very well positioned, with expected production costs of US$90/mtu at the lower end of global production costs.
Copper Portfolio (South Australia)
Alford East
The Alford East Copper-Gold Project is located on EL6529, where Thor is earning up to 80% interest (currently a 51% interest) from unlisted Australian explorer Spencer Metals Pty Ltd, covering portions of EL6255 and EL6529 (ASX: THR Announcement 23 November 2020). The Alford East Project covers the northern extension of the Alford Copper Belt, located on the Yorke Peninsula, SA. The Alford Copper Belt is a semi-coherent zone of copper-gold oxide mineralisation, within a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within metamorphic units on the edge of the Tickera Granite, Gawler Craton, SA. Utilising historic drillhole information, Thor completed an inferred Mineral Resource Estimate (MRE) (ASX: THR Announcement 27 January 2021):
· 125.6Mt @ 0.14% Cu containing 177,000t of contained copper
· 71,500oz of contained gold
The first phase of drilling, completed by Thor in September 2021, comprised nine diamond drillholes totalling 878m. This initial program focussed only on the northern portion of the Alford East copper-gold deposit, around the AE-5 mineralised domains, with drilling targeting areas open at depth and along strike.
Significant intercepts included (ASX: THR 21 February 2022):
· 21AED001 32.9m @ 0.4% Cu and 0.31g/t Au from 81.5m,
· 21AED002 59.9m @ 0.3% Cu from 21.9m,
· 21AED003 32.4m @ 0.2% Cu from 15m,
· 21AED004 55.9m @ 0.53% Cu from 7m, including 11.7m @ 1.0% Cu from 17.3m, including 5.7m @ 1.23% and 0.16g/t Au from 17.3, and
· 21AED005 72.7m @ 1.0% Cu and 0.19g/t Au from 6.3m, including 18.2m @ 2.0% Cu and 0.34g/t Au from 15.8m.
Drill targeting, vectoring in on the hanging wall side of the north-south trending controlling structure, now referred to as Netherleigh Park Fault, intercepted zones of high-grade copper and gold grades resulted in a significant grade uplift in comparison to the MRE.
Initial pump testing on 21AEDD001 which was developed into a water bore showed favourable hydrogeological conditions for In-situ recovery. The ground water Is classified as saline, precluding it from agriculture or potable use, suitable for industrial use only.
Thor's objective is to identify an In-Situ Recovery pathway, ideally for both the copper and gold mineralisation at the Alford East Project, that is socially and environmentally friendly rather than using conventional acid In-Situ Recovery (ISR). This has led to Thor engaging Mining Processing Solutions (MPS), trialling their alkaline Glycine Leaching Technology (GLT), branded as their GlyCatTM and GlyLeachTM processes, that have the capability to selectively leach base and precious metals using glycine as the principal, eco-friendly, reagent. Initial laboratory bottle roll testing from samples in 21AED001 performed well, with GLT extracting up to 98.1% of the gold and over 40% of the copper.
These activities, completed in 2021, were co-funded by the South Australian Accelerated Discovery Grant (ADI) for A$300,000.
Based on a new geological model, approximately 10 diamond drill holes have been designed to test potential high-grade zones along strike and at depth. In addition, hydrogeological water bores and pump testing is in planning to determine aquifer connectivity between holes, with an initial focus in the northern area of the mineralisation. Concurrent to drilling, hydrometallurgical work will continue to investigate and optimise both copper and gold metal extraction using environmentally friendly lixiviants.
EnviroCopper Limited
Thor holds a 30% interest in Australian private company EnviroCopper Limited (ECL). ECL is earning a 75% effective interest, in two stages, on rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company Terramin Australia Limited ("Terramin", ASX: TZN), and up to 75% of the Alford West copper project, comprising the northern portion of exploration licence EL5984, held by Andromeda Metals Limited (ASX: ADN).
Kapunda Project
During the period, ECL completed the installation of test well arrays and commenced ISR trials, including tracer and push-pull test work. These tests are the final hydrometallurgical assessments before ECL commences Site Environmental Lixiviant Trials (SELT). The purpose of lixiviant trials, or 'push-pull tests', is to assess the solubility of copper mineralisation, and therefore copper recovery, using a specially designed solution called a "lixiviant" under in-situ conditions. The trial is to be undertaken in two stages. The first stage involves injecting and extracting a tracer solution (Sodium Bromide - NaBr) from the same well to demonstrate hydraulic connectivity between the observation and environmental monitor well network. This is followed by injecting and extracting lixiviant from the same well to test copper solubility from the mineralisation.
Key outcomes anticipated from lixiviant trials:
i) Hydraulic connectivity between wells
ii) Copper solubility and recovery
iii) Establish lixiviant and time parameters for design of the Site Environmental Lixiviant Trials (SELT)
It is anticipated that ECL will move into the SELT test work with scoping study released in the first half of 2022.
Ragged Range Gold, Lithium, Nickel, Copper-Gold Project (Pilbara, Western Australia) (100% Thor)
Thor now holds a 100% interest in five granted tenements in the Pilbara region of Western Australia, approximately 40km west of the township of Nullagine.
With the recent granting of E46/1393, Thor undertook a geological review of the Ragged Range Project, highlighting the lithium prospectivity in addition to gold, nickel and copper-gold. The Pilbara Craton is highly prospective for lithium-caesium-tantalum enriched (LCT) pegmatites and hosts two large and globally significant spodumene deposits at Wodgina (Mineral Resources Ltd) and Pilgangoora (Pilbara Minerals). The lithium rich pegmatites in the Pilbara are spatially and appear to be genetically related to the Split Rock Supersuite (2.85 to 2.83Ma), which outcrops in the northern portion of the Ragged Range tenure, with three priority targets identified ready for ground truthing in 2022.
During the reporting period, Thor completed 41 shallow (50-96m) RC drillholes totalling 2,155m at the Sterling Prospect (ASX: THR 25 January 2022). This maiden RC program was designed to test eight strong gold anomalies at Sterling Central and Sterling South prospects, defined from soil and stream sediment sampling programs. Drilling intercepted strong broad zones of quartz veining, sericite, silica alteration, sulphides and fuchsite, characteristic of gold mineralisation in the Pilbara; these are positive indicators of proximity to the gold source. Unfortunately, due to mechanical issues, not all targets were tested. Drilling was co-funded by the West Australian Geological Survey for A$160,000. Full drilling details may be viewed via following link:
The program for 2022 includes follow up drilling at the Sterling prospect, completing the planned program and targeting the fault contact in the area between Sterling Central and Sterling South. In parallel to the gold exploration activities at the Sterling Prospect, the following exploration program is planned with particular focus on lithium:
1) Airborne magnetic/radiometric survey to be flown over the eastern portion of the tenure including E46/1340 and E46/1393
2) Ground 'fixed loop' electromagnetics (FLEM) is scheduled over the nickel gossan
3) Proposed lithium activities include:
a. A detailed review of all available high-resolution imagery and aster data, to see if the presence of pegmatites can be visually detected
b. Reconnaissance rock sampling and prospecting along the contact of the Mondana Monzogranite, Split Rock Supersuite (E46/1262, E46/1190, E461393 and E46/1340), with detailed sampling
c. Investigation of all small granitic and pegmatitic bodies in the target area
Uranium & Vanadium Projects (Colorado & Utah USA) (100% Thor)
Thor holds a 100% interest in two US companies with mineral claims in Colorado and Utah, USA. The claims host uranium and vanadium mineralisation in an area known as the Uravan mineral belt, which has a history of high-grade uranium and vanadium production.
Within probable economic transport distance is a processing plant (Energy Fuels White Mesa Mill) which may be a low hurdle processing option for any production from these projects.
Details of the project may be found on the Thor website:
https://www.thormining.com/projects/us-uranium-and-vanadium
Thor has completed BLM environmental approvals and is now working through the Colorado County approvals. Thor is hoping to be drilling by June quarter 2022.
Molyhil Tungsten/Molybdenum project (NT, Australia) (100% Thor)
The Molyhil project is located 220 km north-east of Alice Springs (320 km by road).
A full background on the project is available on the Thor Mining website:
Three diamond drillholes (21MHDD001 - 21MHDD003) totalling 995.4m were completed in December 2021, designed to test a newly identified large magnetic target to the south of the known Molyhil tungsten-molybdenum-copper mineralisation (ASX: THR 7 December 2021). Both 21MHDD002 and 21MHDD003 intercepted disseminated mineralisation, consisting of scheelite, molybdenite and chalcopyrite within massive magnetite skarn. Drillhole 21MHDD002 intercepted over 45m of disseminated mineralisation, whilst 21MHDD003 intercepted two zones over 29m of disseminated mineralisation. It appears 21MHDD001 intersected the edges of the magnetite skarn drilling over the top of the magnetite skarn lode, with negligible mineralisation. Initial interpretation of data highlights a potential south-east plunging lode extending southeast of the Southern lode with a possible offset (yet to be determined).
Thor expects to receive assay results back in the first quarter of 2022, with follow up drilling to be designed at Molyhil, as well as regional exploration drilling targeting additional magnetic targets.
The drilling program was co-funded by the Geophysics and Drilling Collaborations (GDC) program as part of the Resourcing the Territory initiative, with Thor Mining granted A$110,000 (ASX: THR 4 June 2021).
Bonya (Tungsten, Copper, Vanadium) (40% Thor)
The Bonya project sits approximately 30 km east of Molyhil and holds tungsten and copper resources which are expected to complement the Molyhil project. Thor, in joint venture with Arafura, holds 40% equity interest in the resources.
A full background on the project is available on the Thor Mining website:
Pilot Mountain Tungsten Project (Nevada, USA) (100% Thor)
During the reporting period, Thor divested the Pilot Mountain Tungsten Project in Nevada, USA for an agreed value of US$1.8 million to Power Metal Resources Plc ("Power Metal") (ASX: THR Announcement 1 September 2021).
Given the consideration was paid as a combination of cash and equity in Power Metal, Thor currently maintains an indirect interest in the project through it's holding of 44,118,920 shares in Power Metal, representing a holding of 3.0%, as well as 12.5 million warrants to subscribe for ordinary shares in Power Metal, with an exercise price of 4p and expiry period of 3 years. The Pilot Mountain project is located approximately 200 km south of the city of Reno and 20 km east of the town of Mina located on US Highway 95.
The project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope.
Capital Raisings
During the period, the Company's cash balances were augmented by two placements. In August 2021, the Company raised £800,000 via the placing of 123,076,923 new ordinary shares of 0.01p each ("Ordinary Shares") at a price of £0.0065 (0.65 pence) per Ordinary Share (approximately A$0.0123).
In December 2021, the Company raised gross proceeds of A$2.75m via the placement of 220,000,000 Ordinary Shares at a price of A$0.0125 (1.25 cents) per Ordinary Share. All placees received two options for each three Ordinary Shares to subscribe for a further new Ordinary Share at i) one option exercisable at A$0.015, expiring 12 months from issue, ii) one option at A$0.02, expiring 24 months from issue.
The Board believes that these capital raisings put the Company in a strong position to deliver on our 2022 drill programmes and project developments.
Board and Management Changes
During the period, Mick Billing resigned as Executive Chair, with Mark Potter appointed Non-Executive Chair and Alastair Clayton joining the Board as Non-executive Director. The Board would like to express appreciation and gratitude to Mick Billing for his service lasting over 13 years.
Comprehensive Income
The comprehensive income statement records a comprehensive loss of £1,004,000 (2020: £512,000 loss) after taking into account unrealised exchange loss of £221,000 (2020: £115,000 loss).
Nicole Galloway Warland
Managing Director
15 March 2022
Competent Person's statements
The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc Applied geology (HONS) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Mining PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
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Condensed Consolidated Statement of Comprehensive Income For the 6 months ended 31 December 2021
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Note |
£'000 |
£'000 |
£'000 |
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6 months ended 31 December 2021 |
6 months ended 31 December 2020 |
Year ended 30 June 2021 |
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Unaudited |
Unaudited |
Audited |
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Administrative expenses |
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(58) |
(54) |
(94) |
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Corporate expenses |
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(347) |
(331) |
(635) |
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Share-based payments expense |
8 |
(245) |
(106) |
(126) |
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Realised gain/loss on financial assets |
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(1) |
- |
(2) |
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Exploration expenses |
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(26) |
(79) |
(81) |
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Write-off/impairment of exploration assets |
3 |
- |
(15) |
(1,450) |
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Operating Loss |
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(677) |
(585) |
(2,388) |
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Interest Paid |
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(1) |
(1) |
(1) |
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Share of (loss)/profit of associate, accounted for using the equity method |
6 |
(36) |
(72) |
22 |
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Fair value decrement on financial assets FVTPL |
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(204) |
- |
- |
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Profit/(loss) on Sale of Investments |
4 |
93 |
222 |
222 |
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Sundry income |
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42 |
39 |
41 |
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Loss before Taxation |
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(783) |
(397) |
(2,104) |
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Taxation |
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- |
- |
- |
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Loss for the period |
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(783) |
(397) |
(2,104) |
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Other comprehensive income: |
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Items that may be subsequently reclassified to profit or loss: |
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Exchange differences on translating foreign operations |
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(221) |
(115) |
(570) |
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Other comprehensive income for the period, net of income tax |
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(221) |
(115) |
(570) |
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Loss for the year and total comprehensive loss attributable to the equity holders |
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(1,004) |
(512) |
(2,674) |
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Basic earnings per share |
2 |
(0.05)p |
(0.03)p |
(0.14)p |
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Condensed Consolidated Statement of Financial Position For the 6 months ended 31 December 2021
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| Note | £'000 | £'000 | £'000 |
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| 31 December 2021 | 31 December 2020 | 30 June 2021 |
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| Unaudited | Unaudited | Audited |
ASSETS |
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Non-current assets |
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Intangible assets (deferred exploration costs) | 3 | 11,359 | 12,459 | 10,120 |
Assets held for sale | 4 | - | - | 1,050 |
Financial assets | 5 | 744 | - | - |
Investments accounted for using the equity method | 6 | 523 | 492 | 564 |
Deposits to support performance bonds |
| 42 | 43 | 41 |
Right of use asset |
| - | 27 | 10 |
Plant and equipment |
| 14 | 9 | 7 |
Total non-current assets |
| 12,682 | 13,030 | 11,792 |
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Current assets |
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Cash and cash equivalents |
| 1,579 | 685 | 783 |
Trade receivables and other assets |
| 124 | 70 | 60 |
Total current assets |
| 1,703 | 755 | 843 |
Total assets |
| 14,385 | 13,785 | 12,635 |
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LIABILITIES |
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Current liabilities |
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Trade and other payables |
| (206) | (277) | (306) |
Employee annual leave provision |
| (22) | (1) | (10) |
Lease liability |
| - | (27) | (10) |
Total current liabilities |
| (228) | (305) | (326) |
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Total non-current liabilities |
| - | - | - |
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Total liabilities |
| (228) | (305) | (326) |
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Net assets |
| 14,157 | 13,480 | 12,309 |
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Equity |
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|
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Issued share capital | 7 | 3,811 | 3,762 | 3,773 |
Share premium |
| 26,576 | 23,485 | 24,379 |
Foreign exchange reserve |
| 1,453 | 2,129 | 1,674 |
Merger reserve |
| 405 | 405 | 405 |
Share based payments reserve | 8 | 911 | 325 | 314 |
Retained earnings |
| (18,999) | (16,626) | (18,236) |
|
|
|
|
|
Total equity |
| 14,157 | 13,480 | 12,309 |
|
|
|
|
|
Condensed Consolidated Statement of Change in Equity |
|
|
| ||||||||||||||||
For the 6 months ended 31 December 2021 |
|
|
|
|
| ||||||||||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||||||||||||
| Issued share capital | Share premium | Retained losses | Foreign Currency Translation Reserve | Merger Reserve | Share Based Payment Reserve | Total | ||||||||||||
Balance at 1 July 2020 | 3,733 | 22,288 | (16,339) | 2,244 | 405 | 275 | 12,606 | ||||||||||||
Loss for the period | - | - | (397) | - | - | - | (397) | ||||||||||||
Foreign currency translation reserve | - | - | - | (115) | - | - | (115) | ||||||||||||
Total comprehensive loss for the period | - | - | (397) | (115) | - | - | (512) | ||||||||||||
Transactions with owners in their capacity as owners |
|
|
|
| |||||||||||||||
Shares issued | 29 | 1,396 | - | - | - | - | 1,425 | ||||||||||||
Cost of shares issued | - | (199) | - | - | - | - | (199) | ||||||||||||
Share options lapsed | - | - | 110 | - | - | (110) | - | ||||||||||||
Share options issued | - | - | - | - | - | 160 | 160 | ||||||||||||
At 31 December 2020 | 3,762 | 23,485 | (16,626) | 2,129 | 405 | 325 | 13,480 | ||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||
Balance at 1 July 2020 | 3,733 | 22,288 | (16,339) | 2,244 | 405 | 275 | 12,606 |
| |||||||||||
Loss for the period | - | - | (2,104) | - | - | - | (2,104) |
| |||||||||||
Foreign currency translation reserve | - | - | - | (570) | - | - | (570) |
| |||||||||||
Total comprehensive (loss) for the period | - | - | (2,104) | (570) | - | - | (2,674) |
| |||||||||||
Transactions with owners in their capacity as owners |
|
|
|
|
| ||||||||||||||
Shares issued | 40 | 2,337 | - | - | - | - | 2,377 |
| |||||||||||
Cost of shares issued | - | (246) | - | - | - | - | (246) |
| |||||||||||
Share options exercised | - | - | 207 | - | - | (207) | - |
| |||||||||||
Share options issued |
| - | - | - | - | 246 | 246 |
| |||||||||||
At 30 June 2021 | 3,773 | 24,379 | (18,236) | 1,674 | 405 | 314 | 12,309 |
| |||||||||||
|
|
|
|
|
|
|
| ||||||||||||
Balance at 1 July 2021 | 3,773 | 24,379 | (18,236) | 1,674 | 405 | 314 | 12,309 | ||||||||||||
Loss for the period | - | - | (783) | - | - | - | (783) | ||||||||||||
Foreign currency translation reserve | - | - | - | (221) | - | - | (221) | ||||||||||||
Total comprehensive loss for the period | - | - | (783) | (221) | - | - | (1,004) | ||||||||||||
Transactions with owners in their capacity as owners |
|
|
|
| |||||||||||||||
Shares issued | 38 | 2,480 | - | - | - | - | 2,518 | ||||||||||||
Cost of shares issued | - | (283) | - | - | - | - | (283) | ||||||||||||
Share options exercised | - | - | 20 | - | - | (20) | - | ||||||||||||
Share options issued | - | - | - | - | - | 617 | 617 | ||||||||||||
At 31 December 2021 | 3,811 | 26,576 | (18,999) | 1,453 | 405 | 911 | 14,157 | ||||||||||||
Condensed Consolidated Statement of Cash Flow | |||
For the 6 months ended 31 December 2021 |
|
|
|
| £'000 | £'000 | £'000 |
| 6 months ended 31 December 2021 | 6 months ended 31 December 2020 | Year ended 30 June 2021 |
| Unaudited | Unaudited | Audited |
Cash flows from operating activities |
|
|
|
Operating loss | (677) | (585) | (2,388) |
Sundry income | 33 | 39 | 41 |
(Increase)/decrease in trade and other receivables | (47) | (17) | 4 |
Increase/(decrease) in trade and other payables | 7 | 6 | (9) |
Increase/(decrease) in provisions | 11 | (53) | (42) |
Depreciation | 11 | 19 | 38 |
Exploration expenditure written-off | - | 15 | 1,450 |
Share-based payments | 245 | 106 | 126 |
Director fees settled by share issue | - | 23 | 23 |
Net cash outflow from operating activities | (417) | (447) | (757) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Interest paid | (1) | (1) | (1) |
Tenement Bond | (1) | - | - |
Investment in associated entity | - | (170) | (170) |
Purchase of property, plant & equipment | (9) | (6) | (8) |
Payments for exploration expenditure | (1,124) | (391) | (706) |
R&D Grants | - | 98 | 98 |
Proceeds from sale of assets | 84 | 222 | 222 |
Net cash outflow from investing activities | (1,051) | (248) | (565) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Lease liability repayments | (10) | (16) | (30) |
Net issue of ordinary share capital | 2,276 | 1,163 | 1,902 |
Net cash inflow from financing activities | 2,266 | 1,147 | 1,872 |
|
|
|
|
Net decrease in cash and cash equivalents | 798 | 452 | 550 |
Non-cash exchange changes | (2) | - | - |
Cash and cash equivalents at beginning of period | 783 | 233 | 233 |
Cash and cash equivalents at end of period | 1,579 | 685 | 783 |
Notes to the Half-year Report
For the 6 months ending 31 December 2021
1. PRINCIPAL ACCOUNTING POLICIES
(a) Presentation of Half-year results
The half-year results have not been audited but were the subject of an independent review carried out by the Company's auditors, PKF Littlejohn LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2021 annual report and to be adopted in the 2022 annual report. The financial information contained in this half-year report does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006.
The half-year report has been prepared under the historical cost convention.
The Directors acknowledge their responsibility for the half-year report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 31 December 2021 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the requirements for companies with securities admitted to trading on the AIM Market of the London Stock Exchange. This half-year report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2021.
The Directors are of the opinion that on-going evaluations of the Company's interests indicate that preparation of the accounts on a going concern basis is appropriate. Refer Note 11 for further information.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of Thor Mining PLC and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases. All inter-company balances and transactions have been eliminated in full.
The financial statements of subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies.
(c) Investments in Associates
Investments in associate companies are recognised in the financial statements by applying the equity method of accounting. The equity method of accounting recognises the Group's share of post-acquisition reserves of its associates.
Where there has been a change recognised directly in an associate's equity, the Group recognises its share of any changes and discloses this in the statement of profit of loss and other comprehensive income. The reporting dates of the associates and the Group are identical and the associates accounting policies conform to those used by the Group for like transactions and events in similar circumstances.
(d) Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2021 Annual Report and Financial Statements. The key financial risks are liquidity risk, credit risk, interest rate risk and fair value estimation.
(e) Critical accounting estimates
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. Significant items subject to such estimates are set out in the Company's 2021 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.
Notes to the Half-year Report
For the 6 months ending 31 December 2021
2. EARNINGS PER SHARE
No diluted earnings per share is presented for the six months ended 31 December 2021 as the effect on the exercise of share options would be to decrease the loss per share.
| £'000 | £'000 | £'000 |
| 6 months ended 31 December 2021 | 6 months ended 31 December 2020 | Year ended 30 June 2021 |
| Unaudited | Unaudited | Audited |
Loss for the period | (783) | (397) | (2,104) |
Weighted average number of Ordinary shares in issue
Loss per share - basic
|
1,724,133,775
(0.05)p |
1,388,190,687
(0.03)p |
1,497,215,458
(0.14)p |
3. DEFERRED EXPLORATION COSTS
| £'000 | £'000 | £'000 |
| 31 December 2021 | 31 December 2020 | 30 June 2021 |
Cost | Unaudited | Unaudited | Audited |
At commencement | 10,120 | 12,252 | 12,252 |
Net additions | 989 | 187 | 612 |
Acquired through acquisition | 330 | 157 | 310 |
Exchange gain/(loss) | (80) | (122) | (554) |
Write off exploration tenements for year | - | (15) | (1,450) |
Transfers to held for sale assets (note 4) | - | - | (1,050) |
At period end | 11,359 | 12,459 | 10,120 |
|
|
|
|
Impairment |
|
|
|
At commencement | - | - | - |
Exchange loss | - | - | - |
Impairment for period | - | - | - |
At period end | - | - | - |
|
|
|
|
Net book value at period end | 11,359 | 12,459 | 10,120 |
|
|
|
|
Notes to the Half-year Report
For the 6 months ending 31 December 2021
3. DEFERRED EXPLORATION COSTS (continued)
Acquired through acquisition
In the half year period ending 31 December 2021, Thor paid consideration of £330,000 for completion of the Stage 1 earn-in under the binding term sheet for Thor to acquire an interest in the oxide mineral rights from Spencer Metals Pty Ltd (Spencer) over the Alford East copper-gold project, located on the Yorke Peninsula, South Australia. Under the term sheet, Thor is to acquire an interest of 80% directly in the project, over two stages:
Stage 1: Thor has earned a 51% interest by funding A$500,000 expenditure over the 2 years to 11 November 2022, with the £330,000 consideration comprising:
· £128,000 fair value of 15,625,000 Thor Ordinary Shares issued on 26 November 2021. The fair value was based on the closing price of Thor Ordinary Shares of £0.0082 (0.82 pence) on the AIM market of the London Stock Exchange on 10 November 2021 (being the day prior to shareholder approval of the issuance of the Ordinary Shares); and
· £202,000 fair value of 31,250,000 unlisted options to acquire Thor Ordinary Shares at an exercise price of A$0.03 (3 cents) at any time through to the expiry date of 25 November 2026. The fair value was estimated using a Black Scholes model (refer Note 8).
Stage 2: Thor may earn a further 29% interest (80% in total) by funding an additional A$750,000 of expenditure over a subsequent 2 years to 11 November 2024 and for additional consideration of A$250,000 in fully paid Thor shares, issued at the 5 day ASX VWAP on the date immediately prior to allotment and two free attaching options per share issued, exercisable at a$0.03 within years from the date of issue (stage 2 expenditure). If Thor does not proceed with the Stage 2 earn-in, then its interest in the project is relinquished.
Upon Thor completing the acquisition of an 80% interest in the project, Spencer will hold a free carried 20% interest in the project, until a decision to mine.
The parties have agreed to use reasonable commercial endeavours to negotiate and execute a formal Joint Venture agreement for the development and operation of a mine and associated facilities within 60 days from the end of Stage 2.
Notes to the Half-year Report
For the 6 months ending 31 December 2021
4. HELD FOR SALE ASSET
| £'000 | £'000 | £'000 |
| 31 December 2021 | 31 December 2020 | 30 June 2021 |
| Unaudited | Unaudited | Audited |
Opening balance | 1,050 | - | 1,050 |
Asset divested | (1,050) | - | - |
| - | - | 1,050 |
On 31 August 2021, Thor Mining Plc announced the execution of an Option Agreement with AIM listed Power Metal Resources Plc (AIM: POW) ("Power Metal"), for the divestment of Thor's Pilot Mountain Tungsten Project in Nevada in line with their focus on core copper and gold projects. Accordingly, the carrying value of the investment at 30 June 2021 was reclassified in the Statement of Financial Position from 'Intangible assets - deferred exploration costs; to 'Held for sale assets'. Thor received an exclusivity fee of 500,000 Power Metal Ordinary Shares with an estimated fair value of £9,750.
The divestment was successfully completed on 29 October 2021 with consideration of £1,022,000 received by Thor, comprising:
· £84,000 in cash (being US$115,000 at the exchange rate on 29 October 2021 of 0.7304); and
· £938,000 fair value of 48,118,920 Ordinary Shares in Power Metal. The fair value was determined by the closing price of £0.0195 for Power Metal Ordinary Shares on the London Stock Exchange on 31 August 2021 (being the day prior to execution of the Option Agreement).
The consideration of £1,022,000, resulted in a loss of (£28,000) compared to the book value of £1,050,000. The loss was recognised as a (£121,000) loss through Other Comprehensive Income as a reversal of the foreign currency translation reserve and a £93,000 gain through the Profit or Loss.
In addition, Power Metal granted Thor 12.5 million unlisted warrants to subscribe for Power Metal Ordinary Shares with an exercise price of £0.04 (4 pence) per Ordinary Share at any time through to the expiry date of 29 October 2024, subject to an acceleration clause if the Power Metal Ordinary Share price is above £0.10 (10 pence) for five consecutive days. Any warrants exercised by 29 October 2022 receive replacement warrants with an exercise price at £0.08 (8 pence) for a further 3 years to the expiry date.
As part of the divestment Thor was also entitled to receive a milestone payment of US$500,000, payable in Power Metal Ordinary Shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain increasing the existing declared levels by 25% across the total indicated and inferred categories, within two years. Subsequent to the half year period ended 31 December 2021, Thor agreed to relinquish this milestone entitlement in return for £50,000 in cash and 4,000,000 Ordinary Shares in Power Metal with an estimated fair value of £57,200 based on the closing price of Power Metal Ordinary Shares on the London Stock Exchange of £0.0143 (1.43 pence) on 21 January 2022 (being the last trading day prior to execution of the variation agreement).
Notes to the Half-year Report
For the 6 months ending 31 December 2021
5. FINANCIAL ASSETS
| £'000 | £'000 | £'000 |
| 31 December 2021 | 31 December 2020 | 30 June 2021 |
| Unaudited | Unaudited | Audited |
Investment in Power Metal Resources Plc | 744 | - | - |
| 744 | - | - |
|
|
|
|
The investment balance at 31 December 2021, comprises 48,618,920 Power Metal Ordinary shares being the 50,000 Ordinary Shares received as part of the exclusivity fee under the Option Agreement and 48,118,920 Ordinary Shares received upon completion of the divestment on 29 October 2021.
The 48,618,920 POW shares were initially recognised at £948,000 being valued at the closing price of £0.0195 for Power Metal Ordinary Shares on the London Stock Exchange on 31 August 2021 (being the day prior to execution of the Option Agreement).
The shares were then revalued to fair value at 31 December 2021 of £744,000, based on the closing price of £0.0153 for Power Metal Ordinary Shares on that date. The revaluation decrement of (£204,000) was recognised as a fair value adjustment through the Company's Profit or Loss (FVTPL), on the basis that Thor does not consider the Ordinary Shares held as a strategic investment.
48,118,920 of the Ordinary Shares are subject to a voluntary escrow, with 25% becoming tradeable at each of the following dates: 30 April 2022, 30 June 2022, 30 September 2022 and 30 December 2022.
6. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | £'000 | £'000 | £'000 |
| 31 December 2021 | 31 December 2020 | 30 June 2021 |
| Unaudited | Unaudited | Audited |
A reconciliation of the carrying amount of the investments in the company is set out below: |
|
|
|
EnviroCopper Limited |
|
|
|
Conversion of loan to equity | 391 | 391 | 391 |
Additional investment | 170 | 170 | 170 |
Initial cost of investment | 561 | 561 | 561 |
|
|
|
|
Cumulative share of (loss)/profit of associate, accounted for using the equity method | (14) | (72) | 22 |
Share of foreign currency translation reserve | (24) | 3 | (19) |
| 523 | 492 | 564 |
|
|
|
|
ECL is a copper development company which holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine, in South Australia, recoverable by way of in situ recovery (ISR) and holds rights to earn a 75% interest in a portion of the Moonta Copper Project, also in South Australia, that is considered amenable to recovery by the way of in-situ recovery.
Notes to the Half-year Report
For the 6 months ending 31 December 2021
6. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)
On 30 July 2020, Thor announced the conversion of its $700,000 (£391,000) convertible loan to a 25% interest in ECL and exercised its right to nominate a Board representative. Accordingly, the investment is being accounted for using the equity method from the date of loan conversion to equity.
On the 11 November 2020, the Company increased its ownership interest to 30% through the payment of A$300,000 (£170,000).
The tables below provide summarised consolidated financial information for EnviroCopper Limited and its wholly owned subsidiaries Environmental Copper Recovery SA Pty Ltd and Environmental Metals Recovery Pty Ltd. The information disclosed reflects the amounts presented in the financial statements of the relevant associate and not Thor's share of those amounts. They have been amended to reflect adjustments made by Thor when using the equity method, including modifications for differences in accounting policies.
Summarised financial information for EnviroCopper Ltd
| £'000
31 December 2021 | £'000
31 December 2020 | £'000
30 June 2021 |
| Unaudited | Unaudited | Unaudited |
Summarised balance sheet: |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents | 43 | 10 | 648 |
Other current assets | 119 | 62 | 14 |
Provision for income tax | 132 | 772 | 129 |
Total current assets | 295 | 844 | 791 |
Non-current Assets |
|
|
|
Plant & Equipment | 44 | 10 | 22 |
Total non-current assets | 44 | 10 | 22 |
Total assets | 339 | 854 | 813 |
Current Liabilities |
|
|
|
Trade payables | - | - |
|
Other current liabilities | 118 | - | 472 |
Total current liabilities |
| - | 472 |
|
|
|
|
Non-current Liabilities |
|
|
|
Other non-current liabilities | 17 | - | - |
Total non-current liabilities | 17 | - | - |
Total Liabilities | 135 | - | 472 |
Net Assets |
204 |
854 |
341 |
Notes to the Half-year Report For the 6 months ending 31 December 2021
6. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)
Summarised statement of comprehensive income: | |||
| £'000
31 December 2021 | £'000
31 December 2020 | £'000
30 June 2021 |
| Unaudited | Unaudited | Unaudited |
|
|
|
|
Total Income | 616 | 44 | 666 |
Less Expenses | (734) | (319) | (595) |
Net Profit | (118) | (275) | (71) |
7. SHARE CAPITAL | £'000 | £'000 | £'000 | |
| 31 December 2021 | 31 December 2020 | 30 June 2021 | |
| Unaudited | Unaudited | Audited | |
Issued fully paid (Nominal Value) |
|
|
| |
982,870,766 'Deferred Shares' of £0.0029 each | 2,850 | 2,850 | 2,850 | |
7,928,958,483 'A Deferred Shares' of £0.000096 each | 761 | 761 | 761 | |
Ordinary shares of £0.0001 each | 200 | 151 | 162 | |
| 3,811 | 3,762 | 3,773 | |
|
|
|
| |
| Number | Number | Number | |
| 31 December 2021 | 31 December 2020 | 30 June 2021 | |
| Unaudited | Unaudited | Audited | |
Movement in share capital |
|
|
| |
Ordinary Shares of 0.01 pence |
|
|
| |
At commencement | 1,625,719,488 | 1,224,996,863 | 1,224,996,863 | |
Shares issued for cash1 | 343,076,923 | 231,583,333 | 319,818,629 | |
Warrants exercised2 | 11,800,000 | 11,566,667 | 12,566,667 | |
Shares issued to Directors in lieu of cash payment for Directors fees | - | 5,821,663 | 5,821,663 | |
Shares issued to service providers3 | 7,200,000 | - | 8,015,666 | |
Shares issued for acquisition4 | 15,625,000 | 42,000,000 | 54,500,000 | |
At period end | 2,003,421,411 | 1,515,968,526 | 1,625,719,488 | |
1Comprises two separate placements. The first in August 2021, being the issue of 123,076,923 Ordinary Shares at £0.0065 (0.65 pence), together with one free unlisted warrant for every two Ordinary Shares subscribed, exercisable at £0.013 (1.3 pence) expiring 17 August 2023. The second in December 2021, beingthe issue of 220,000,000 Ordinary Shares at A$0.0125 (1.25 cents), together with two free listed options for every three Ordinary Shares subscribed, one option exercisable at A$0.015 (1.5 cents) expiring 20 December 2022, and the other option exercisable at A$0.02 (2.0 cents) expiring 20 December 2023. |
| |||
Notes to the Half-year Report For the 6 months ending 31 December 2021
7. SHARE CAPITAL (continued)
|
| |||
2Comprises 8,000,000 Ordinary shares issued 17 September 2021 following the exercise of options at a price of A$0.0095 (0.95 cents), and 3,800,000 Ordinary shares issued 23 December 2021 following the exercise of options at a price of A$0.01 (1.0 cent).
|
| |||
3Ordinary Shares issued on 22 December 2021 to PAC Partners as part payment of commission as broker to the December 2021 placement.
|
| |||
4Ordinary shares issued 26 November 2021 as part consideration for the acquisition of a 51% direct interest in the oxide mineral rights over the Alford East copper-gold project, located on the Yorke Peninsula, South Australia. Refer Note 3. |
| |||
|
|
|
| |
| £'000 | £'000 | £'000 | |
| 31 December 2021 | 31 December 2020 | 30 June 2021 | |
Nominal Value | Unaudited | Unaudited | Audited | |
At commencement | 3,773 | 3,733 | 3,733 | |
Issued for cash | 34 | 23 | 32 | |
Warrants exercised | 1 | 1 | 1 | |
Shares issued to Directors in lieu of cash payment for Directors fees | - | 1 | 1 | |
Issued to service providers | 1 | - | 1 | |
Issued for acquisition | 2 | 4 | 5 | |
At period end | 3,811 | 3,762 | 3,773 | |
Notes to the Half-year Report
For the 6 months ending 31 December 2021
8. SHARE BASED PAYMENTS RESERVE
Options are valued at an estimate of the cost of the services provided. Where the fair value of the services provided cannot be estimated, the value unlisted options granted are calculated using the Black-Scholes model taking into account the terms and conditions upon which the options are granted.
| £'000 | £'000 |
31 December 2021 | 30 June 2021 | |
| Unaudited | Audited |
Opening balance at 1 July | 314 | 275 |
36,000,000 options issued £0.00656 | 236 | - |
31,250,000 options issued £0.00646 | 202 | - |
22,000,000 listed options issued @ £0.00466 | 103 | - |
22,000,000 listed options issued @ £0.00306 | 67 | - |
Exercised 3,8000,000 options @ £0.00156 | (6) | - |
Exercised 8,000,000 options @ £0.001720 | (14) | - |
5,000,000 options to a service provider @ £0.003620 1 | 9 | 9 |
Exercised 9,450,000 options @ £0.0013 | - | (12) |
Lapsed 10,000,000 @ £0.0098 | - | (98) |
Lapsed 5,000,000 @ £0.0034 | - | (17) |
Lapsed 15,000,000 @ £0.0053 | - | (80) |
Issued 24,000,000 to Directors @ £0.0017 | - | 41 |
Issued 7,500,000 ESOP @ £0.0051 | - | 38 |
Issued 4,000,000 to service provider @ £0.0066 | - | 27 |
Issued 2,433,526 to service a provider @ £0.0045 | - | 11 |
Issued 5,647,058 to a service provider @ £0.0058 | - | 32 |
Issued 35,000,000 to a service provider @ £0.0016 | - | 55 |
Issued 8,333,000 for tenements acquired @ £0.0039 | - | 33 |
Closing balance | 911 | 314 |
1 In June 2021, 6,000,000 options were issued to a service provider. The options vested at 1,000,000 per month. The fair value of the options was being expensed over their vesting periods. 1,000,000 of the options were relinquished prior to vesting.
Notes to the Half-year Report
For the 6 months ending 31 December 2021
8. SHARE BASED PAYMENTS RESERVE (continued)
The following table lists the inputs used for the calculation of share options granted as Share Based Payments during the half year ended 31 December 2021.
36,000,000 issued to Directors on 22 November 2021 |
|
Dividend yield | 0.00% |
Underlying Security spot price | £0.0087 |
Exercise price | £0.0130 |
Standard deviation of returns | 126% |
Risk free rate | 0.87% |
Expiration period | 4yrs |
Black Scholes valuation per option | £0.00656 |
Fair value expensed as a share-based payment*
31,250,000 issued for acquisition 26 November 2021 |
|
Dividend yield | 0.00% |
Underlying Security spot price | A$0.015 |
Exercise price | A$0.030 |
Standard deviation of returns | 126% |
Risk free rate | 1.44% |
Expiration period | 5yrs |
Black Scholes valuation per option | £0.00646 |
Fair value capitalised as part of the cost of acquisition (refer Note 3) |
|
|
|
22,000,000 issued to a service provider on 20 December 2021 |
|
Dividend yield | 0.00% |
Underlying Security spot price | A$0.015 |
Exercise price | A$0.02 |
Standard deviation of returns | 126% |
Risk free rate | 0.53% |
Expiration period | 2yrs |
Black Scholes valuation per option | £0.00466 |
Fair Value recognised as part of the cost of the capital raising.
22,000,000 issued to a service provider on 20 December 2021 |
|
Dividend yield | 0.00% |
Underlying Security spot price | A$0.015 |
Exercise price | A$0.015 |
Standard deviation of returns | 98% |
Risk free rate | 0.53% |
Expiration period | 1yr |
Black Scholes valuation per option | £0.00306 |
Fair Value recognised as part of the cost of the capital raising.
|
|
Notes to the Half-year Report
For the 6 months ending 31 December 2021
8. SHARE BASED PAYMENTS RESERVE (continued)
* The total value of options expensed as share-based payments during the half year ended 31 December 2021 is £245,000 comprising £236,000 for the options issued to the Directors and £9,000 for expensing the remaining value of the 5,000,000 options issued to a service provider in the year ended 30 June 2021 (being expensed over their vesting period).
9. TURNOVER AND SEGMENTAL ANALYSIS - GROUP
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.
The Group's operations are located Australia and the United States of America, with the head office located in the United Kingdom. The main tangible assets of the Group, cash and cash equivalents, are held in the United States of America and Australia. The Board ensures that adequate amounts are transferred internally to allow all companies to carry out their operational on a timely basis.
The Directors are of the opinion that the Group is engaged in a single segment of business being the exploration for commodities. The Group currently has two geographical reportable segments - United States of America and Australia.
| £'000 | £'000 | £'000 | £'000 |
Half Year ended 31/12/2021 | Head office/ Unallocated | Australia | United States | Consolidated |
|
|
|
|
|
Operating Expenditure | (399) | (248) | (30) | (677) |
Non-Operational items | (70) | (36) | - | (106) |
|
|
|
|
|
Loss from Ordinary Activities before Income Tax | (469) | (284) | (30) | (783) |
Income Tax Benefit/(Expense) | - | - | - | - |
Retained (loss) | (469) | (284) | (30) | (783) |
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|
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As at 31/12/2021 | Head office/ Unallocated | Australia | United States | Consolidated |
Assets and Liabilities |
|
|
|
|
Segment assets | - | 11,933 | 218 | 12,151 |
Corporate assets | 2,234 | - | - | 2,234 |
Total Assets | 2,234 | 11,933 | 218 | 14,385 |
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|
|
|
|
Segment liabilities | - | (202) | - | (202) |
Corporate liabilities | (26) | - | - | (26) |
Total Liabilities | (26) | (202) | - | (228) |
Net Assets | 2,208 | 11,731 | 218 | 14,157 |
Notes to the Half-year Report
For the 6 months ending 31 December 2021
9. TURNOVER AND SEGMENTAL ANALYSIS - GROUP (continued)
| £'000 | £'000 | £'000 | £'000 |
Half Year ended 31/12/2020 | Head office/ Unallocated | Australia | United States | Consolidated |
|
|
|
|
|
Total Segment Expenditure | (257) | (179) | - | (436) |
Non-operational items | 39 | - | - | 39 |
|
|
|
|
|
Loss from Ordinary Activities before Income Tax | (218) | (179) | - | (397) |
Income Tax Benefit/(Expense) | - | - | - | - |
Retained (loss) | (218) | (179) | - | (397) |
|
|
|
|
|
As at 31/12/2020 | Head office/ Unallocated | Australia | United States | Consolidated |
Assets and Liabilities |
|
|
|
|
Segment assets | - | 10,656 | 2,432 | 13,088 |
Corporate assets | 697 | - | - | 697 |
Total Assets | 697 | 10,656 | 2,432 | 13,785 |
|
|
|
|
|
Segment liabilities | - | (217) | - | (217) |
Corporate liabilities | (88) | - | - | (88) |
Total Liabilities | (88) | (217) | - | (305) |
Net Assets | 609 | 10,439 | 2,432 | 13,480 |
| £'000 | £'000 | £'000 | £'000 |
10. POST BALANCE SHEET EVENTS
As part of the divestment of the Pilot Mountain project, Thor was also entitled to receive a milestone payment of US$500,000, payable in Power Metal Ordinary Shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain increasing the existing declared levels by 25% across the total indicated and inferred categories, within two years. Subsequent to the half year period ended 31 December 2021, Thor agreed to relinquish this milestone entitlement in return for £50,000 in cash and 4,000,000 Ordinary Shares in Power Metal with an estimated fair value of £57,200 based on the closing price of Power Metal Ordinary Shares on the London Stock Exchange of £0.0143 (1.43 pence) on 21 January 2022 (being the last trading day prior to execution of the variation agreement). Refer RNS Announcement dated 23 January 2022 (ASX Announcement 24 January 2022). For further details in relation to the divestment of the Pilot Mountain project, refer Note 4.
Other than the above there were no other material events arising subsequent to 31 December 2021 to the date of this report which may significantly affect the operations of the Group, the results of those operations and the state of affairs of the Group in the future.
Notes to the Half-year Report
For the 6 months ending 31 December 2021
11. GOING CONCERN BASIS OF ACCOUNTING
The financial report has been prepared on the going concern basis of accounting.
The Group incurred a net loss after tax from continuing operations of £783,000 for the half year ended 31 December 2021, and net cash outflows of £1,468,000 from operating and investing activities. The Group is reliant upon completion of asset sales or a capital raising to fund continued operations and the provision of working capital.
In this regard, the Company notes a cash balance of £1,579,000 as at 31 December 2021.
If additional capital is not obtained, the going concern basis of accounting may not be appropriate, with the result that the Group may have to realise its assets and extinguish its liabilities, other than in the ordinary course of business and at amounts different from those stated in the financial report. No allowance for such circumstances has been made in the financial report.
DIRECTORS, SECRETARY AND ADVISERS
Directors Mark Potter (Non-executive Chairman)
Nicole Galloway Warland (Managing Director)
Mark McGeough (Non-executive Director)
Alastair Clayton (Non-executive Director) - appointed 4 October 2021
Michael Billing (Executive Chairman) - retired 3 September 2021
| In UK | In Australia |
Registered Office and Directors' business address
| Salisbury House London Wall London, EC2M 5PS United Kingdom
| 58 Galway Avenue Marleston, South Australia Australia 5033
|
Company Secretaries
| Stephen Frank Ronaldson | Ray Ridge |
Website
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Nominated Adviser to the Company | WH Ireland Limited 24 Martine Lane London, EC4R 0DR
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Auditors to the Company | PKF Littlejohn LLP 1 Westferry Circus Canary Wharf London, E14 4HD
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Solicitors to the Company | Druces LLP Salisbury House London Wall London, EC2M 5PS United Kingdom
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Registrars | Computershare Investor Services Plc The Pavilions Bridgewater Road Bristol BS99 6ZY United Kingdom | Computershare Investor Services Pty Ltd Level 5, 115 St Grenfell St Adelaide, South Australia5000 |
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMAITON
INDEPENDENT REVIEW REPORT TO THOR MINING PLC
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2021 which comprises the consolidated income statement, consolidated balance sheet, consolidated statement of changes in equity, consolidated cash flow statement and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the AIM Market of London Stock Exchange Rules for Issuers.
The annual financial statements of the Group are prepared in accordance with UK adopted International Accounting Standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the UK.
Our responsibility
Our responsibility is to express to the Group a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
This report, including the conclusion, is made solely to the Group for the purpose of the AIM Market of London Stock Exchange Rules for Issuers. We do not, in producing this report, accept or assume responsibility to anyone, other than the Group, for our work, for this report, or for the conclusion we have formed. This report may not be provided to third parties without our prior written consent.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK), and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2021 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the UK and the AIM Market of London Stock Exchange Rules for Issuers.
Use of our report
This report is made solely to the company's directors, as a body, in accordance with the terms of our engagement letter. Our review has been undertaken so that we may state to the company's directors those matters we have agreed to state to them in a reviewer's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's directors as a body for our work, for this report or the conclusion we have formed.
PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London
E14 4HD
15 March 2022
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