Tectonic Gold Plc - Half-year Report to 31 December 2021

31 March 2022

TECTONIC GOLD PLC
(“Tectonic Gold” or the “Company”)

Unaudited Interim Results to 31 December 2021
 

MANAGING DIRECTOR’S STATEMENT

Dear Shareholder,

During the half year to December 2021, the Company ran a significant field campaign on the lead gold exploration project at Specimen Hill. Our partnership with London listed Kazera Global Investments Plc (“Kazera”) (LSE:KZG) also delivered the further production of diamonds from the Alexkor site in South Africa.

With further support from shareholders who converted their warrants and profit from the divestment of a part of our holding in Kazera, we funded follow up drilling at Specimen Hill, testing copper and gold follow on targets from the 2020 campaign. During this time, we hosted a number of potential farm-in investors on site and identified additional extensions to mineralised zones for exploration.

Drilling along strike from Main Lodes again returned positive intersections, however, the unexpected onset of early monsoonal rains and accompanying electrical storms forced us to suspend drilling before we could complete the campaign. Australia’s east coast has had an unusually wet summer with localised flooding in the region, so we have not been able to access site again at the time of this report, but we are planning to remobilise as soon as possible and complete the campaign. This will involve diamond core drilling below the historic high-grade Goldsmith’s Reef mine. This is fully funded with current cash reserves. This sheeted vein system at Goldsmisth’s Reef was mined until World War One to a depth of some thirty meters. Our geophysics reconnaissance shows the system steeply plunging to well over one hundred meters and the drilling will target the same high grade surface veins down to that depth and beyond.

Our joint venture with Kazera in Heavy Mineral Sands in South Africa is waiting on the award of a mining license which was significantly delayed by COVID. We are hopeful this will be in hand in the next quarter, and we will be able to announce the development plans for the project.

Despite weather and COVID related delays, we are well funded, with a number of opportunities to drive shareholder value in the pipeline and look forward to the run to year end.

RESULTS AND COMPARITIVE INFORMATION

The Group incurred a loss after tax for the reporting period of £198,977 (31 Dec 2020: £60,084 (loss).

For and on behalf of the Board.
 

Brett Boynton, CFA
Managing Director 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS        
AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

The accompanying notes form part of these financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

The accompanying notes form part of these financial statements.
These financial statements were approved by the Board of Directors on 31 March 2022.
Signed on behalf of the Board by:
 

Brett Boynton
Managing Director                                                                                                  Company number: 05173250

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

The accompanying notes form part of these financial statements
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

The accompanying notes form part of these financial statements.
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

1.     GENERAL INFORMATION

Tectonic Gold Plc is a company incorporated in the United Kingdom under the Companies Act 2006. The consolidated entity (the “Group”) consists of Tectonic Gold Plc (Tectonic and or the “Company”) and the entities it controlled at the end of, or during, the six months ended 31 December 2021. The principal activity of the Group during the financial period was mineral exploration.

2.     BASIS OF PREPARATION

These condensed interim consolidated financial statements (“the interim financial statements”) of the Group are for the six months ended 31 December 2021 and are presented in Sterling which is the Company’s presentational currency. These interim financial statements have not been reviewed or audited.

The interim financial statements have been prepared in accordance with the recognition and measurement principles of IFRS as adopted by the European Union (EU) and on the same basis and using the same accounting policies as applied in the Company’s 2021 Annual Report and statutory accounts for the year ended 30 June 2021.

The statutory accounts for the year ended 30 June 2021 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial statements have been prepared on a going concern basis under the historical cost convention. The Directors believe that the going concern basis is appropriate for the preparation of these interim financial statements as the Company is in a position to meet all its liabilities as they fall due.

The interim financial statements for the six months ended 31 December 2021 were approved by the Board on 31 March 2022.

3.     DIVIDEND

The Board is not recommending the payment of an interim dividend for the period ended 31 December 2021.

4.     EARNINGS PER SHARE

The basic earnings per share is based on the profit/(loss) for the year divided by the weighted average number of shares in issue during the reporting period. The weighted average number of ordinary shares for the reporting period assumes that all shares have been included in the computation based on the weighted average number of days since issue.

5.     OTHER ASSETS

(i) In 2018 the Company paid Titeline Drilling Pty Ltd ACN 096 640 201 (Titeline) for future drilling services in accordance with the heads of agreement dated 28 March 2018 between Titeline, Signature Gold and Tectonic Gold.

(ii) Titeline has been engaged to complete 10,000 meters of diamond drilling to produce core samples for analysis, assay and metallogenic studies from the Company’s Biloela Project site. A review to be completed after 2,500 metres of drilling has been completed and the completion program for the remaining 7,500 metres to be mutually agreed.

As at 31 December 2021 £336,208 (A$625,386), (2020: £353,780 or A$625,386) remains prepaid to Titeline

As at 30 June 2021, the balance of the prepayment to Titeline is £339,522 (A$625,386).

6.     EVENTS AFTER THE REPORTING PERIOD

On 10 February 2022, the Company issued 10,521,707 to Directors in total in lieu of cash payments for fees for the period 30 June 2019 to 30 June 2021. For further detail, refer to the Company’s announcement released on 4 February 2022.

On 2 March 2022, Signature Gold Pty Ltd, a wholly owned subsidiary company of Tectonic, received A$289,019 research and development (R&D) tax incentive rebate related to the company’s Australian R&D expenses from the 2021 financial year. The tax refund is for eligible R&D activities related to the Company’s Intrusive Related Gold Research Program.

Other than as stated elsewhere in this report, Directors are not aware of any other matters or circumstances at the date of this report that have significantly affected or may significantly affect the operations, the results of the operations or the state of affairs of the Company in subsequent financial years.

7.     DISTRIBUTION

Copies of these interim financial statements is available on the Company's website (www.tectonicgold.com) or directly from the Company at its registered address.

For further information, please contact:

Ends