Half-year Report

RNS Number : 0762C

Erris Resources PLC

27 September 2018

 

Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining

27 September 2018

Erris Resources plc

('Erris Resources' or the 'Company')

Interim Results

Highlights

·     Surface diamond drilling campaign commenced at the Abbeytown Zinc Project in Ireland with high grade mineralisation intercepted, including grades up to 10.85% Zn+Pb combined at 4m and 54.4 g/t Ag from 129m to 132.5m in diamond drill hole ERAB001

·     Drilling underway at the Brännberg gold project in Sweden as part of the fully funded Centerra Gold exploration programme

·     Strong cash position of €3.35m as at 30 June 2018; cash as at 26 September 2018 was €2.59m

·     Expanded portfolio of projects with new gold licences in Sweden and new exploration licences in Ireland

Chairman Statement

In this half year period, the Company continued to advance the planned exploration programmes in Sweden and Ireland, as well as expanding its portfolio through the generation and acquisition of further exploration permits and licences in each country.

The Company is in a strong position with Osisko Gold Royalties as our cornerstone shareholder.  Progress has continued under the Company's strategic alliance with Centerra Gold KB Inc ("Centerra Gold", a wholly owned subsidiary of Centerra Gold Inc., the TSX listed gold and copper producer.  At the beginning of 2018, Centerra Gold elected to earn into the Brännberg gold project with a US$1,000,000 investment, taking the total funding received from Centerra in 2018 by Erris to US$1,850,000.  The Swedish work programme, fully funded by Centerra, has included ground geophysical surveys, surface sampling, mapping and diamond drilling focussed on Brännberg.

In Ireland at the Company's 100% owned, Abbeytown Zn-Pb-Ag historic mine, a diamond drilling campaign commenced.  The aim of the programme was to test for potential extensions of zinc-lead-silver-copper mineralisation south of the old mine site.  This drilling has successfully intersected high-grade mineralisation including grades of 10.85% Zn+Pb combined at 4m and 54.4g/t Ag from 129m to 132.5m in diamond drill hole ERAB001.  Post period end, further results have been announced with more results pending.  The results received to date have been positive and confirm that mineralisation extends over 500m to the south of the old mine.

In parallel with this surface diamond drilling campaign, we have worked to regain access to the historic Abbeytown Zinc Mine, last operated in the 1950s, where we believe there to be upside potential.  Having cleared the access portals to the mine in June, we have been working to ensure the underground conditions are compliant with modern health and safety regulations.  Post-period end, we have reported results from face channel samples taken from eight pillars within the underground workings.  Results have indicated high grade mineralisation with grades up to 4m grading 18.40% Zn+Pb combined with 116.85 g/t Ag from Pillar Four, with all channel samples returning positive results.

Erris, in its very essence, is focused on identifying early stage exploration opportunities which the Board believes have the potential to be advanced in order to generate shareholder value.  In this period, we have demonstrated this through the generation and claiming of new exploration licences in both Sweden and Ireland.  In April, we were awarded two gold exploration permits.  The first is the Nordgruvan Project in Värmlands, Sweden where there have been historic gold occurrences, with reported grades of up to 68 g/t gold with limited modern exploration work.   The second area is the Enåsen no.5 licence in central Sweden.  The Enåsen project area surrounds the historic Enåsen mine that produced 1.7 Mt at 3 g/t gold from 1984 to 1991.  We plan to target mineralisation present on major structures extending from the old mine.  Similarly, in Ireland, the Company increased its land position through the application for 18 licences covering 673km² to form the Galway Project.  The licences are in an unexplored area on an extension of the zinc trend of the Irish Midlands and is approximately 40km west of the Tynagh zinc deposit.

During the period, we have made positive progress on the Abbeytown project and expect this to advance as we move through the second half of the year.  In addition, in Sweden we have successfully executed a number of drilling programmes on the gold portfolio fully funded by our JV partner Centerra Gold.

The share price performance of the Company is extremely frustrating, especially when considering the cash position of the company which was €2.59m at the end of September, the progress being made at the 100% owned Abbeytown project, the corporate support of a major industry cornerstone investor, Osisko Gold Royalties and an active JV partner in Sweden.  It is a challenging time for the junior mining and exploration sector, not least due to the decrease in metals prices, in part due to the US / China trade tariffs resulting in diminished overall investor appetite.  Over the course of the coming months, as we report further results from Abbeytown, combined with our aim to identify other projects that fit the Company's criteria, the board is confident that the share price will strengthen as we build value.

I would like to take the opportunity to thank the team at Erris, its advisors and its shareholders for their continued support, especially through this challenging time in the junior mining sector.

Jeremy Martin

Non-Executive Chairman

Operational Review and Outlook

Ireland

Erris has continued to work on the 100% owned Abbeytown Project which consists of six prospecting licences covering a total of 159km².  The Company has also initiated a new Galway Project area comprising 673km² over 18 incentive status prospecting licences.

At Abbeytown, to date Erris has drilled 17 holes for a total of 2,889m.  In the period to end June 2018, 2,123m had been drilled, with a further 766m drilled after the period end.  Ten of the holes (1,864m) were drilled in an area south of the old workings, testing mineralisation over a strike length of 250m.  Reported results include 4m grading 10.85% Zn+Pb combined and 41.45 g/t Ag from 95m to 98m in hole ERAB003.

In parallel to the surface drill programme, the historic mine has been opened up. Recent work included ensuring that the portal entrances to the underground workings were made safe, scaling down the main drives, installing radio systems, reconditioning access and working areas, improving ventilation, and taking face channel samples from eight pillars in the main Index Bed Workings.  Results included a channel sample of 4m grading 18.40% Zn+ Pb combined with 116.85 g/t Ag from Pillar 4. In parallel with this, underground mapping, surveying, and 3D modelling is ongoing.

Assay data from the final surface drill holes is currently awaited and a summary report on the drill programme is in progress. This work, together with the surface diamond drilling programme, is all part of evaluating the resource potential of the project.

Seven of the 17 drill holes were drilled at Skreen in a wide-spaced programmed designed to gain information on stratigraphy, structure and to test soil anomalies. This information has allowed the Company to develop a new and better interpretation of the regional aeromagnetic data. Regional work, including orientation mapping and sampling on the Galway licences, will continue.

Sweden

The Centerra Gold Strategic Alliance

Erris holds and operates a portfolio of Exploration Permits in northern Sweden that is funded through the Strategic Alliance with Centerra Gold.

Within this Strategic Alliance, Centerra Gold has continued with its US$1.85m work plan for 2018 to explore the portfolio. Three general exploration and drilling programmes have been undertaken, at Klippen, Käringberget and Brännberg, and generative exploration work has been undertaken at Storklinten, Orrträsket, Skarvsjö, and Gunnarbäcken.

Work to 30 June 2018 included magnetic surveys, surface sampling, mapping, and ground-truthing at Klippen, Käringberget and Brännberg, Gunnarbäcken, and Storklinten. Prospecting and mapping took place at Orrträsket and Skarvsjö. Drilling programmes were completed at Klippen, Käringberget and Brännberg.

At Klippen, a ground magnetic survey was carried out, and drilling in 2018 comprised 13 holes, taking the total drilled at Klippen by Erris Resources to 4,651.7m over a two-year period. The results and nature of the geology intersected did not warrant further investment and both Centerra Gold and Erris Resources agreed to relinquish areas due for renewal.

At Käringberget, an EM survey was completed, and a small drill programme was carried out.  At Brännberg ground magnetic surveys, surface sampling, mapping, ground-truthing, a 2km x 1km IP survey and drilling were carried out. Drill results for both Käringberget and Brännberg are awaited.

Wholly owned projects in Sweden

In line with the corporate objective of identifying low-cost opportunities with the potential to create shareholder value, Erris was granted a number of exploration licences in Sweden that lie outside of the defined Area of Interest under the Strategic Alliance with Centerra Gold. The licences include areas surrounding the historic Enåsen mine, that produced 1.7 Mt at 3 g/t gold from 1984 to 1991, as well as the Nordgruvan and Hornkullen exploration licences in southern Sweden, which contain several historic high-grade gold occurrences. In 2019, Erris Resources will continue to evaluate and prioritise projects of potential value to shareholders.

Financial Review

Erris Resources Plc was incorporated on 21 June 2017.  On 1 December 2017, Erris Resources Plc acquired the entire issued share capital of Erris Resources (Exploration) Ltd by way of a share for share exchange.  This transaction has been treated as a group reconstruction and has been accounted for using the reverse merger accounting method.  Accordingly, the financial information for the current period and comparatives have been presented as if Erris Resources (Exploration) Ltd had been owned by Erris Resources Plc throughout the current and prior periods.

Notwithstanding that the company is a UK Plc. admitted to trading on AIM, the company presents its accounts in its functional currency of Euros, since the majority of exploration expenditure is denominated in this currency.

The Group is still at an exploration stage and not yet producing minerals, which would generate commercial income.  Under the terms of the Centerra JV Agreement, the company earns a 10% Management Fee on all committed expenditures, which amounted to €0.07m in the period compared with €0.02m in 2017. However, the Group is not expected to report overall profits until it disposes of or is able to profitably commercialise its exploration and development projects.

During the period, the Group made an operating loss of €0.36m compared with a loss of €0.08m for the year ended 30 June 2017.  This is mainly due to an increase in administrative costs to €0.30m, which primarily relates to the additional costs related to being a public listed company, including the costs of non-executive directors, brokers, nomad and other advisors.

The Total Net assets of the Group increased to €4.72m at 30 June 2018 from €1.05m at 30 June 2017, due primarily to the funds raised at the IPO.  Intangible assets increased to €1.52m from €0.89m due to ongoing exploration at the Group's Ireland and Sweden projects. Current liabilities increased from €0.13m to €0.23m due to accounting timing differences on funds received in relation to the joint venture with Centerra Gold.

The closing cash balance for the Group at the period end was €3.35m which is significantly higher than €0.72m at the end of the prior year, due to the proceeds from the IPO in December 2017.  As at the date of this report, the Group's cash balance is €2.59.

Condensed Statement of Comprehensive Income

			30 June					30 June
			2018					2017
			Unaudited					Unaudited
	Notes		€					€
Revenue			65,747					23,587
Cost of sales				(50,336)					(19,486)
Gross profit			15,411					4,101
Administrative expenses				(301,078)					(88,533)
Share based payments charge				(70,955)				-
Operating (loss)/profit	4			(356,622)				(84,432)
Finance income			1,289					19
(Loss)/profit before taxation				(355,333)				(84,413)
Tax on (loss)/profit			-						-
(Loss)/profit for the financial period				(355,333)				(84,413)
Other comprehensive income			-					-
Total comprehensive income for the period				(355,333)				(84,413)
Earnings per share from continuing operations  attributable to the owners of the parent company
Basic and diluted (cents per share)                                                            (1.14)                                  (0.57)

The income statement has been prepared on the basis that all operations are continuing operations.

Interim Condensed Statement of Financial Position as at 30 June 2018

				30 June 2018 Unaudited				30 June 2017 Unaudited			31 December 2017
												Audited
	Notes			€				€				€
Non-current assets
Intangible assets	6			1,523,733				886,089				1,047,708
Property, plant and equipment				31				459				77
				1,523,763				886,548				1,047,785
Current assets
Trade and other receivables				76,378				19,873				200,956
Cash and cash equivalents				3,347,678				274,278				4,090,143
				3,424,056				294,151				4,291,099
Total assets				4,947,819				1,180,699				5,338,884
Current liabilities
Borrowings				1,139				1,139				1,139
Current tax liabilities				30,648				58,368				80,648
Trade and other payables				30,277				10,609				241,556
Amounts owed to Strategic Alliance partner		8		169,560				58,678				64,968
				231,624				128,794				338,311
Net current assets				3,192,432				165,357				3,952,788
Total liabilities				231,624				128,794				338,311
Net assets				4,716,195				1,051,905				5,000,573
Equity
Share capital				351,133				183,932				351,133
Share premium				4,151,045				673,889				4,151,045
Other reserves				830,642				-				759,687
Retained earnings					(616,625)			194,084				(261,292)
Total equity				4,716,195				1,051,905				5,000,573

Interim Condensed Statement of Changes in Equity for the Six Months ended 30 June 2018

		Share capital		Share premium			Other reserves			Retained earnings			Total
		€		€			€			€			€
Balance at 1 January 2018		351,133		4,151,045			759,687				(261,292)			5,000,573
Six months ended 30 June 2018:
Loss and total other comprehensive income for the period		-		-			-			(355,333)			(355,333)
Total comprehensive income for the period		-		-			-			(355,333)			(355,333)
Credit to equity for equity settled share-based payments		-		-			70,955			-			70,955
Total transactions with owners recognised directly in equity		-		-			70,955			-			70,955
Balance at 30 June 2018		351,133		4,151,045			830,642				(616,625)			4,716,195
		Share capital		Share premium			Other reserves			Retained earnings			Total
		€		€			€			€			€
Balance at 1 January 2017		183,932		673,889			-				278,497			1,136,318
Six months ended 30 June 2017:
Loss and total other comprehensive income for the period		-		-			-			(84,413)			(84,413)
Total comprehensive loss for the period		-		-			-			(84,413)			(84,413)
Balance at 30 June 2017		183,932		673,889			-			194,084			1,051,905

Interim Condensed Statement of Cash Flows for the Six Months ended 30 June 2018

					30 June 2018						30 June 2017
					Unaudited						Unaudited
	Notes	€			€			€			€
Cash flows from operating activities
Cash (used in)/generated from operations	9					(437,466)					(93,325)
Net cash (used in)/generated from operating activities						(437,466)					(93,325)
Cash flows from investing activities
Exploration expenditure			(475,978)						(110,379)
Exploration expenditure utilising funds from Strategic Alliance Agreement			(678,066)						(148,342)
Interest received		1,289						19
Net cash used in investing activities						(1,152,755)						(258,702)
Cash flows from financing activities
Proceeds from issue of shares		56,320						-
Funds received from Strategic Alliance Agreements		782,659						157,821
Net cash generated from financing activities					838,979						157,821
Net decrease in cash and cash equivalents					(751,242)						(194,206)
Cash and cash equivalents at beginning of period					4,090,144						470,287
Effect of foreign exchange rates					8,776							(1,803)
Cash and cash equivalents at end of period					3,347,678						274,278

Notes to the Interim Condensed Financial Statements for the Six Months ended 30 June 2018

1	Accounting policies
	Company information
	Erris Resources Plc ("the Company") is a public limited company which is listed on the AIM Market of the London Stock Exchange domiciled and incorporated in England and Wales. The registered office address is 29-31 Castle Street, High Wycombe, Buckinghamshire, United Kingdom, HP13 6RU. The group consists of Erris Resources Plc and its subsidiaries Erris Zinc Limited and Erris Resources (Exploration) Ltd.
1.1	Basis of preparation
	These unaudited interim condensed financial statements have been prepared under the historical cost convention and in accordance with the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The unaudited interim condensed financial statements should be read in conjunction with the annual report and financial statements for the period ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The unaudited interim condensed financial statements do not constitute statutory financial statements within the meaning of the Companies Act 2006. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of IFRSs as adopted by the European Union. Statutory financial statements for the period ended 31 December 2017 were approved by the Board of Directors on 28 March 2018 and delivered to the Registrar of Companies. The report of the auditor on those financial statements was unqualified. The same accounting policies, presentation and methods of computation are followed in these unaudited interim condensed financial statements as were applied in the preparation of the audited financial statements for the period ended 31 December 2017.
	The financial statements are prepared in euros, which is the functional currency of the company and the group's presentation currency, since the majority of exploration expenditure is denominated in this currency. Monetary amounts in these financial statements are rounded to the nearest €.
1.2	Basis of consolidation
	The consolidated financial statements incorporate those of Erris Resources Plc and all of its subsidiaries (ie entities that the group controls when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity).
	Erris Resources Plc was incorporated on 21 June 2017.  On 1 December 2017, Erris Resources Plc acquired the entire issued share capital of Erris Resources (Exploration) Ltd by way of a share for share exchange.  This transaction has been treated as a group reconstruction and has been accounted for using the reverse merger accounting method.  Accordingly, the financial information for the current period and comparatives have been presented as if Erris Resources (Exploration) Ltd had been owned by Erris Resources Plc throughout the current and prior periods. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are fully consolidated from the date on which control is transferred to the group.  They are deconsolidated from the date on which control ceases.

1	Accounting policies
1.3	Going concern
	At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4	Intangible fixed assets other than goodwill
	Capitalised Exploration and Evaluation costs
	Capitalised Exploration and Evaluation Costs consist of direct costs and fixed salary/consultants costs, capitalised in accordance with IFRS 6 "Exploration for and Evaluation of Mineral Resources".  The group recognises expenditure in Exploration and Evaluation assets when it determines that those assets will be successful in finding specific mineral assets.   Exploration and Evaluation assets are initially measured at cost.  Exploration and Evaluation Costs are assessed for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount.
1.5	Impairment of non-current assets
	At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Intangible assets not yet ready to use and not yet subject to amortisation are reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable.
2	Judgements and key sources of estimation uncertainty
	In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
	Critical judgements
	The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

2	Judgements and key sources of estimation uncertainty (continued)
	Stability of Joint Venture Partners
	The stability of the Company's joint venture partners is periodically reviewed in determining the likelihood of future funding for related projects.
	Impairment of Capitalised Exploration Costs
	Capitalised exploration costs had a carrying value as at 30 June 2018 of €1,523,733 (31 December 2017: €1,047,708). Management tests annually whether capitalised exploration costs have a carrying value in accordance with the accounting policy stated in note 1.4.  Each exploration project is subject to an annual review either by a consultant or senior company geologist to determine if the exploration results returned to date warrant further exploration expenditure and have the potential to result in an economic discovery. This review takes into consideration long-term metal prices, anticipated resource volumes and grades, permitting and infrastructure as well as the likelihood of on-going funding from joint venture partners. In the event that a project does not represent an economic exploration target and results indicate that there is no additional upside, or that future funding from joint venture partners is unlikely, a decision will be made to discontinue exploration. The Directors have reviewed the estimated value of each project prepared by management and do not consider any impairment necessary.

3	Segmental reporting
	The group operates principally in the UK, Ireland and Sweden, with operations managed on a project by project basis within each geographical area.  Activities in the UK are mainly administrative in nature whilst the activities in Ireland & Sweden relate to exploration and evaluation work.  The reports used by the Board and Management are based on these geographical segments.
		Ireland			Sweden			Others			UK			Total
		2018			2018			2018			2018			2018
		€			€			€			€			€
	Revenues	-			65,747			-			-			65,747
	Cost of sales and administrative expenses		(54,545)			-			-			(305,645)			(360,190)
	Share based payments charge	-			-			-				(70,955)			(70,955)
	Gain/loss on foreign exchange		(9,416)			(1,999)			-			20,191			8,776
	Profit/(loss) from operations per reportable segment		(63,961)			63,748			-			(356,409)			(356,622)
	Reportable segment assets	1,385,446			402,922			-			3,159,452			4,947,819
	Reportable segment liabilities	27			171,620			-			59,977			231,624
		Ireland			Sweden			Others			UK			Total
		2017			2017			2017			2017			2017
		€			€			€			€			€
	Revenues	-			23.587			-			-			23,587
	Cost of sales and administrative expenses		(23,843)			(6,148)			(5,905)			(70,320)			(106,216)
	Other operating income	-			-			-			-			-
	Gain/loss on foreign exchange	(1,035)				(143)			-			(625)			(1,803)
	Profit/(loss) from operations per reportable segment	(24,878)			17,297			(5,905)				(70,945)			(84,432)
	Reportable segment assets	619,877			279,683			-			281,139			1,180,699
	Reportable segment liabilities	-			58,678			-			70,116			128,794

4		Operating (loss)/profit
											2018										2017
											€										€
		Operating (loss)/profit for the period is stated after charging:
		Exchange gains/losses									(8,775)										1,803
		Share-based payments									70,955										-
		Operating lease charges									16,777										-
		Exploration costs expensed									54,545										37,065
5	Earnings per share								2018										2017
									Number										Number
	Weighted average number of ordinary shares for basic earnings per share								31,069,430										14,909,430
	Effect of dilutive potential ordinary shares:
	- Weighted average number outstanding share options								4,500,000										1,700,000
	Weighted average number of ordinary shares for diluted earnings per share								35,569,430										16,609,430
	Earnings								€										€
	Continuing operations
	Loss/profit for the period from continuing operations									(355,333)										(84,413)
	Earnings for basic and diluted earnings per share attributable to equity shareholders of the company									(355,333)										(84,413)
	Earnings per share for continuing operations
	Basic and diluted earnings per share
	Basic earnings per share									(1.14)										(0.57)
	Diluted earnings per share									(1.14)										(0.57)
	There is no difference between the basic and diluted earnings per share for the period ended 30 June 2018 and 2017 as the effect of the exercise of options would be to decrease the loss per share.
6		Intangible fixed assets
					Ireland Exploration and Evaluation costs							Sweden Exploration and Evaluation costs									Total
					€							€									€
		Cost
		At 1 January 2018			750,752							296,956									1,047,708
		Additions - group funded			386,733							89,292									476,025
		At 30 June 2018			1,137,485							386,248									1,523,733
		Amortisation and impairment
		At 1 January 2018 and 30 June 2018			-							-									-
		Carrying amount
		At 30 June 2018			1,137,485								386,248									1,523,733
		Intangible assets comprise capitalised exploration and evaluation costs (direct costs and fixed salary / consultants' costs) for the Ireland Zinc Projects and the Sweden Gold Projects (excluding the amounts recovered from Centerra Gold.)
7		Subsidiaries
		Details of the company's subsidiaries at 30 June 2018 are as follows:
																		% Held
		Name of undertaking	Registered office	Nature of business				Class of shares held										Direct					Indirect
		Erris Resources (Exploration) Ltd	United Kingdom	Exploration				Ordinary										100.00					-
		Erris Zinc Ltd	Ireland	Exploration				Ordinary										100.00
		On 26 February 2018, Erris Zinc Ltd was created to separate out the Group's Irish exploration assets into a separate company.  All licences held in Ireland were transferred to this subsidiary on 26 June 2018. The registered office address of Erris Resources (Exploration) Ltd is 29-31 Castle Street, High Wycombe, Bucks, HP13 6RU.  The registered office address of Erris Zinc Ltd is The Bungalow, Newport Road, Castlebar, Co Mayo, F23 YF24.

8	Amounts owed to Strategic Alliance partner
									2018				2017
									€				€
	Amounts owing to Centerra Gold Inc								169,560				58,678
	On 1 January 2016, the company entered into a strategic alliance with Centerra Gold over an Area of Interest ("AOI") in Northern Sweden within which Erris holds exploration permits over seven areas totalling 253km2.  Under the terms of this agreement, Centerra have the right to make an election ("Election") in respect of any or all of the designated project areas ("DPA" or "DPAs") in the AOI and on any rights subsequently acquired by Erris during the first two years after initial grant of the permit.  During the period, Centerra has spent a total of €678,065 (2017 : €151,534), comprising reimbursed costs of €612,318 (2017 : €138,778) and paid management fees of €65,747 (2016 : €12,756). In accordance with the terms of the agreement, amounts received but not yet expensed are repayable to Centerra.
	A summary of the funding received from and costs incurred on behalf of Centerra for the 6 months ended 30 June 2018 is analysed as follows :
				Funding from Centerra		Exploration expenditure			Management and consultancy fees				Net
	Generative			22,420		15,222			2,059				5,139
	Klippen			412,896		464,585			46,403				(98,092)
	Käringberget			206,603		93,755			7,889				104,959
	Brännberg			140,740		38,756			9,396									92,588
				€782,659		€612,318			€65,747				€104,594
9	Cash (used in)/generated from group operations
								2018				2017
								€				€
	(Loss)/profit for the period after tax									(355,333)					(84,413)
	Adjustments for:
	Investment income									(1,289)					(19)
	Foreign exchange									(8,776)					1,803
	Equity settled share based payment expense							70,955				-
	Movements in working capital:
	(Increase)/decrease in trade and other receivables									67,397					(16,254)
	(Decrease)/increase in trade and other payables							(210,420)								5,558
	Cash (used in)/generated from operations									(437,466)					(93,325)

10	Events after the reporting date
	In the 2017 Annual Report, the Company reported that HMRC had rejected its initial application for advanced assurance as a qualifying company for Enterprise Investment Scheme ('EIS') status.  The Company elected to make a renewed application and on 18 September 2018 it announced that HMRC has now granted it EIS status.  Any individual investors who invested in Erris as part of the Initial Public Offering ('IPO') in December 2017 and wish to take advantage of the EIS tax relief benefits, should contact the Company, which will then apply to HMRC for a certificate on their behalf.
11	Approval of interim condensed financial statements
	These interim condensed financial statements were approved by the Board of Directors on 26 September 2018.

*ENDS*

Merlin Marr-Johnson	Erris Resources plc	[phone]
David Hart/Liz Kirchner	Allenby Capital (Nominated Adviser)	[phone]
Erik Woolgar	Shard Capital (Joint Broker)	[phone]
Andy Thacker	Turner Pope Investments (TPI) Ltd (Joint Broker)	[phone]
Isabel de Salis/Gaby Jenner	St Brides Partners (Financial PR)	[phone]

 

END

 

 

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