CORCEL PLC 31 March 2022
Corcel Plc ("Corcel" or the "Company"), the battery metals and flexible grid solutions company announces its unaudited half-yearly results for the six months ended 31 December 2021.
Board Statement
Dear Shareholders,
Corcel plc (the "Company, "Corcel") remains strategically focused on all aspects of battery metals, spanning both the upstream and downstream alongside energy generation and storage. Our strategy was conceived two years ago in anticipation of a structural supply price hike driven by the global push towards electrification and decarbonisation. Whilst demand for battery metals continues ever stronger, recent events in Ukraine appear to have also accelerated the widely predicted supply squeeze. This has resulted in immediate, significant and potentially permanent structural price increases, with nickel markets, as an example, having recently hit unprecedented highs. These events arrive on the back of existing supply constraints and an acceleration of the energy transition as countries look to increase energy security, both by reducing hydrocarbon imports and by investing in domestic low-carbon generation options.
The principal development during the period was the agreement with Australian-registered Resource Mining Corporation Limited (ASX: RMI) ("RMI") to acquire 100% of the issued share capital in Australian-registered Niugini Nickel Pty Ltd, which owns 100% of the Wowo Gap nickel-cobalt project in Papua New Guinea. This followed our strategic acquisition of the majority of RMI's debt during 2020, at a time when it was it was trading at a material discount to par. The Wowo Gap acquisition has enabled the company to approximately double its nickel and cobalt resources and exposure at a heavily discounted price, and begins the journey of building a leading regional battery metal and nickel /cobalt business.
Following the development of the business over the last two years and specifically the Wowo Gap acquisition, Corcel is positioned to significantly benefit from recent market developments. It is therefore moving to accelerate the development of its two nickel deposits in Papua New Guinea, including a fast-track Mining Lease application at the Wowo Gap project (where JORC upgrade work and a Gap Analysis efforts are already ongoing). The Company further expects the award of a Mining Lease at the Mambare nickel project during 2022, and offtake discussions continue with Shandong New Powder COSMO AM&T ("NPC") with a view to supplying nickel to Chinese precursor plants, for ultimate use in NPC's Chinese cathode plant.
During the last two years the Company has also taken its initial steps towards building a UK based energy generation and storage business with exposure to both battery storage and gas peaker plants. The deployment of batteries and flexible energy generation underpins the variable nature of the production of clean energies (such as solar and wind), and is therefore a critical enabler for the energy transition. In building this part of the business, the Company recognises that it is selectively taking early-stage development risk, which it looks to mitigate by diversifying across multiple projects with varying timelines.
The Company therefore expects to make further project acquisitions in this space alongside finalising the ongoing marketing process to secure project finance for the gas peaker plant portfolio including Avonmouth and Tring Road.
While the Company did not raise capital during the period, in assessing alternative funding options, the Board has balanced the often competing objectives of securing funding certainty, minimising equity dilution and retaining near term upside exposure. As a result of these funding choices, the Company remains well funded and has recently refinanced debt obligations of £1.3M, which expire in Q4 2022. Shortly after the period end, the Company announced a combination of funding facilities that resulted in up to an additional £1,050,000 of new funding becoming available to the business, and of this total, £365,000 was subsequently announced as having completed.
The Board and I want to thank our shareholders for their support through this challenging and volatile period spanning both the global pandemic and the ongoing conflict in Ukraine. The Board is focused on continuing to build both firm and Net Asset Value based foundations for the future, alongside accelerating the development of our battery metals deposits.
James Parsons
Executive Chairman
Page 1
Consolidated statement of financial position | ||||
as at 31 December 2021 | ||||
Notes | 31 December | 31 December | 30 June | |
2021 | 2020 | 2021 | ||
Unaudited, | Unaudited, | Audited, | ||
£'000 | £'000 | £'000 | ||
ASSETS | ||||
Non-current assets | ||||
Investments in associates and joint ventures | 6 | 2,381 | 1,971 | 2,380 |
Exploration and evaluation assets | 8 | 1,067 | - | - |
Goodwill | - | 29 | - | |
Property, plant and equipment | 110 | 62 | 62 | |
FVTOCI financial assets | 7 | 1 | 3 | 7 |
FVTPL financial assets | 7 | 72 | - | 72 |
Trade and other receivables | 1,416 | 2,310 | 1,362 | |
Total non-current assets | 5,047 | 4,375 | 3,883 | |
Current assets | ||||
Cash and cash equivalents | 50 | 180 | 392 | |
Trade and other receivables | 178 | 179 | 1,215 | |
Total current assets | 228 | 359 | 1,607 | |
TOTAL ASSETS | 5,275 | 4,734 | 5,490 | |
EQUITY AND LIABILITIES | ||||
Equity attributable to owners of the | ||||
parent | ||||
Called up share capital | 9 | 2,746 | 2,736 | 2,746 |
Share premium account | 24,161 | 23,779 | 24,161 | |
Shares to be issued | 75 | - | 75 | |
Other reserves | 2,048 | 1,117 | 2,018 | |
Retained earnings | (25,245) | (23,927) | (24,630) | |
Total equity attributable to owners of the | 3,785 | 3,705 | 4,370 | |
parent | ||||
Non-controlling interest | - | 11 | - | |
Total equity | 3,785 | 3,716 | 4,370 | |
LIABILITIES | ||||
Non-current liabilities | ||||
Lease liability | - | 30 | - | |
Total non-current liabilities | - | 30 | - | |
Current liabilities | ||||
Trade and other payables | 218 | 185 | 237 | |
Lease liability | - | 12 | - | |
Short term borrowings | 1,272 | 791 | 883 | |
Total current liabilities | 1,490 | 988 | 1,120 | |
TOTAL EQUITY AND LIABILITIES | 5,275 | 4,734 | 5,490 | |
Page 2 |
The accompanying notes form an integral part of these financial statements.
Consolidated statement of income | |||
for the period ended 31 December 2021 | |||
Notes | 6 months to 31 | 6 months to 31 | |
December 2021 | December 2020 | ||
Unaudited, | Unaudited, | ||
£'000 | £'000 | ||
Administrative expenses | 3 | (507) | (493) |
Impairment of loans and receivables | - | - | |
Gain on sale of financial instruments designated as FVTPL | - | (5) | |
Exploration expenses | - | - | |
Other operating income | - | 7 | |
Foreign currency gain | - | - | |
Finance costs, net | (105) | (29) | |
Share of loss of associates and joint ventures | (2) | (6) | |
Loss for the period before taxation | (614) | (526) | |
Tax expense | - | - | |
Loss for the period after taxation | (614) | (526) | |
(Loss)/profit for the period attributable to: | |||
Equity holders of the parent | (614) | (524) | |
Non-controlling interest | - | (2) | |
(614) | (526) | ||
Earnings per share | |||
Loss per share - basic, pence | 4 | 0.16 | 0.23 |
Loss per share - diluted, pence | 4 | 0.16 | 0.23 |
Consolidated statement of comprehensive income | |||
for the period ended 31 December 2021 | |||
6 months to 31 | 6 months to 31 | ||
December 2021 | December 2020 | ||
Unaudited, £'000 | Unaudited, £'000 | ||
(Loss)/profit for the period | (614) | (526) | |
Revaluation of FVTOCI investments | 7 | (6) | (1) |
Total comprehensive loss for the period | (620) | (527) | |
Total comprehensive loss attributable to: | |||
Equity holder of the Parent | (620) | (525) | |
Non-controlling interest | - | (2) | |
(620) | (527) | ||
Page 3 |
The accompanying notes form an integral part of these financial statements.
Consolidated statement of changes in equity |
for the period ended 31 December 2021 |
The movements in equity during the period were as follows: |
account |
Share Share Shares to capital premium be issued
£'000 | £'000 |
23,032 | - |
- | - |
- | - |
- | - |
1,002 | - |
(45) | - |
(210) | - |
747 | - |
23,779 | - |
24,161 | 75 |
- | - |
- | - |
- | - |
- | - |
- | - |
- | - |
- | - |
- | - |
2,746 | 24,161 |
As at 1 July 2020 (audited)
Changes in equity for six months ended 31 December 2020
Profit/ (loss) for the period Other comprehensive (loss)/income for the period
Total comprehensive (loss)/income for the period
Transactions with owners
Issue of shares
Share issue and fundraising costs
Warrants issued
Total Transactions with owners
As at 31 December 2020 (unaudited)
As at 1 July 2021 (audited) Changes in equity for six months ended 31 December 2021
Profit/ (loss) for the period Other comprehensive (loss)/income for the period Revaluation of FVTOCI investments
Total comprehensive (loss)/income for the period
Transactions with owners Issue of shares
Share issue and fundraising costs
Warrants issued
Total Transactions with owners
As at 31 December 2021 (unaudited)
£'000
2,726
2,736
2,726
10 - - 10
- -
-
Retained | Other | Total Equity | Non- | Total | |
earnings | reserves | attributable to | controlling | equity | |
owners of the | interests | ||||
Parent | |||||
£'000 | £'000 | £'000 | £'000 | £'000 | |
(23,403) | 908 | 3,263 | 13 | 3,276 | |
(524) | - | (524) | (2) | (526) | |
- | (1) | (1) | - | (1) | |
(524) | (1) | (524) | (2) | (527) | |
- | - | 1,012 | - | 1,012 | |
- | - | (45) | - | (45) | |
- | 210 | - | - | - | |
- | 210 | 967 | - | 967 | |
(23,927) | 1,117 | 3,705 | 11 | 3,716 | |
(24,630) | 2,018 | 4,370 | - | 4,370 | |
- | (615) | - | (615) | - | (615) |
- | - | - | - | - | - |
- | - | (6) | (6) | - | (6) |
- | (615) | (6) | (621) | - | (621) |
- | - | - | - | - | - |
- | - | - | - | - | - |
- | - | 36 | 36 | - | 36 |
- | (615) | 30 | (585) | - | (585) |
75 | (25,245) | 2,048 | 3,785 | - | 3,785 |
Page 4
FVTOCI investments reserveShare-based payments reserveWarrants ReserveForeign currency translation reserveTotal other reserves
£'000 1
£'000 99
£'000 273
£'000 £'000
As at 1 July 2020 (audited)
Changes in equity for six months ended 31 December 2020
Other Comprehensive income
Transfer of FVTOCI reserve relating to impaired assets and disposals
Unrealised foreign currency gains arising upon retranslation of foreign operations
Total comprehensive income/(loss) for the period Warrants issued
Total transactions with shareholders As at 30 June 2021 (audited)
(1) - - - (1)
-
-
(1)
-
- -
- -
- 99
-
535 908
-
-
- - (1)
210 - 210
210 483
- 210
535 1,117
As at 1 July 2021 (audited)
Changes in equity for six months ended 31 December 2021
Other Comprehensive income Revaluation of FVTOCI investments Share options granted during the year Warrants granted during the year
Unrealised foreign currency gains arising upon retranslation of foreign operations
Total comprehensive income/(loss) for the period As at 31 December 2021 (unaudited)
4
99
1,380
535 2,018
(6) - - - (6)
- - -- - -
(6) (2)
- 99
- 36 -
- - -
36 1,416
- 36 -
- 535
30 2,048
Page 5
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Corcel plc published this content on 31 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 April 2022 22:13:00 UTC.
