Skip to content

Tectonic Gold Plc - Interims for period ended 31 December 2023


Announcement provided by

Tectonic Gold Plc · TTAU

03/04/2024 07:00

Tectonic Gold Plc - Interims for period ended 31 December 2023 PR Newswire

 


TECTONIC GOLD PLC

(“Tectonic Gold” or the “Company”)

 
Interim Financial Report for the six months ended 31 December 2023

 

MANAGING DIRECTOR’S STATEMENT

Dear Shareholder,

During the half year to December 2023, the Company worked closely with interested parties to secure a farm-out agreement on the Specimen Hill project tenements and the team also spent significant time on research and in-country evaluation of opportunities in the Ashanti goldfields in Ghana.

We completed a farm-out agreement, as previously announced, with ASX listed White Energy Pty Ltd. White Energy is the development vehicle of a very successful resources investment and development team in Australia. They have taken over the Specimen Hill project area with a focus on the copper mineralisation rediscovered by Tectonic over the last 5 years. White Energy is investing in the transition to renewables and the looming shortage of copper to enable the move to a lower carbon economy with electric vehicles.

The terms of the farm-out agreement provide for a staged acquisition of the project by White Energy, a $2 million payment to Tectonic and Tectonic holding a 3% royalty on any future mineral sales from the project area.

Our investment alongside London listed Kazera Global Investments Plc (“Kazera”) (LSE:KZG) in the Heavy Mineral Sands and Diamond projects in South Africa waiting on approval from the South African National Nuclear Regulator ("NNR") for final permitting. Kazera has advised that the decision is expected by the end of April 2024 with operations to commence immediately thereafter.

Independent studies conducted for Kazera valued this project at £150 million. Tectonic holds a non-diluting 10% interest in the project and a further 30% economic interest via a sale and loan agreement with a Black Economic Empowerment (BEE) consortium to bring them in as partners on the project. 

Tectonic is in ongoing discussions with gold mining project owners in Ghana. We have identified an attractive acquisition target and approached the parties controlling the mine to buy it. We have also identified potential investors in Ghana who have an appetite to fund the acquisition in a UK listed company and provide working capital to bring the mine into profitable production.

The team continues to evaluate other opportunities that are being presented and securing a suitable transaction for the Company will be the focus for the remainder of the year.

We received approval from the Australian Federal Government earlier this month for Signature Gold’s 2023 project work to be included in the Research and Development funding program and we are working with our accountants to complete the submission for our cash refund. Initial estimates are that it will be circa A$150,000.

RESULTS AND COMPARITIVE INFORMATION

The Group incurred a loss after tax for the reporting period of £105,569 (31 Dec 2022: £105,569 (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 2023

 

 

 

 

6 MONTHS TO
31 DEC 2023 UNAUDITED

6 MONTHS TO
31 DEC 2022 UNAUDITED

12 MONTHS TO 30 JUNE 23 AUDITED

£

£

£

Revenue

 

84,104

-

-

Expenses:

 

 

 

 

Accounting and audit fees

 

 (45,400)

 (18,710)

 (79,209)

Administration and office costs

 

 (2,169)

 (3,216)

 (4,994)

Corporate costs

 

 (28,341)

 (29,493)

 (63,281)

Amortisation and depreciation

 

 

 (694)

 (2,599)

Employee benefits, management fees and on costs

 

 

 (40,000)

 (80,000)

Exploration and tenement costs

 

 (606)

 (9,909)

 (20,829)

Insurance

 

 (9,278)

 (7,829)

 (15,660)

Share based payments

 

 

 -

 -

Net foreign exchange gain/(loss)

 

49,668

 (19,492)

 (180,079)

Fair value gain on disposal of financial assets at fair value through profit and loss

 

 -

26,450

 -

Net gain/(loss) on sale of investment

 

 -

 -

26,450

Other expenses

 

 (1,325)

 (2,676)

 (104,115)

Income/Loss before income tax

 

46,660

 (105,569)

 (524,316)

Income tax benefit

 

-

-

 

Income/Loss for the reporting period from continuing operations

 

46,660

 (105,569)

 (524,316)

 

 

 

 

 

Other comprehensive income:

 

 

 

 

Items that may be subsequently reclassified to profit and loss:

 

 

 

 

Exchange differences on translation of foreign subsidiaries

 

             25,249

           (11,083)

         (105,161)

Total comprehensive income/loss for the reporting period

 

71,909

 (116,652)

 (629,477)

 

 

 

 

 

Earnings per share attributable to owners of the company

 

 

 

 

Basic and diluted (pence per share)

 

 

 

 

From continuing operations

4

0.00

(0.01)

(0.02)


The accompanying notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

 

 

 

 

31 DEC 2023

31 DEC 2022

30-JUN-23

 

GROUP
UNAUDITED

GROUP
UNAUDITED

GROUP
AUDITED

NOTE

£

£

£

ASSETS

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

Plant and equipment

 

 

-

2,101

-

Exploration and evaluation expenditure

 

 

3,291,075

3,553,618

3,219,562

Financial assets at fair value through profit and loss

 

 

3

3

3

TOTAL NON-CURRENT ASSETS

 

 

3,291,078

3,555,722

3,219,565

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

 

106,958

196,757

123,604

Trade and other receivables

 

 

8,900

12,317

   2,062

Other assets

 

5

361,993

380,954

352,404

TOTAL CURRENT ASSETS

 

 

477,851

590,028

487,070

TOTAL ASSETS

 

 

3,768,930

4,145,750

3,697,635

EQUITY

 

 

 

 

 

Share capital

 

 

6,126,579

6,126,579

6,126,579

Share premium account

 

 

61,323,350

61,323,350

61,323,350

RTO Reserve

 

 

 (57,976,182) 

 (57,976,182) 

 (57,976,182) 

Warrant Reserves

 

 

588,554

588,554

588,554

Foreign exchange translation reserves

 

 

(300,822)

(63,412)

 (157,490)

Accumulated losses

 

 

(6,528,561)

(6,325,048)

 (6,743,4795)

TOTAL EQUITY

 

 

3,232,918

3,673,841

3,161,016

LIABILITIES

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

Trade and other payables

 

 

-

16,172

15,094

Borrowings

 

 

150,101

150,747

149,810

TOTAL NON-CURRENT LIABILITIES

 

 

150,101

166,919

164,904

 

CURRENT LIABILITIES

 

 

 

 

 

Trade and other payables

 

 

385,911

304,990

371,715

TOTAL CURRENT LIABILITIES

 

 

385,911

304,990

371,715

TOTAL LIABILITIES

 

 

536,012

471,909

536,619

TOTAL EQUITY AND LIABILITIES

 

 

3,768,930

4,145,750

3,697,635

 

The accompanying notes form part of these financial statements.

These financial statements were approved by the Board of Directors on 31 March 2024.

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 2023

 

 

GROUP - UNAUDITED

31 DEC 2023

ISSUED
CAPITAL

SHARE
PREMIUM

WARRANT
RESERVE

RTO
RESERVE

FOREIGN
CURRENCY
RESERVE

ACCUMULATED
LOSSES


TOTAL

 

£

£

£

£

£

£

£

Balance at 1 July 2023

6,126,579

61,323,350

588,554

(57,976,182)

(157,490)

(6,743,795)

3,161,016

Total comprehensive income for the period

 

 

 

 

 

46,652

46,652

Transactions with owners, recorded directly in equity:

 

 

 

 

 

 

 

Shares Issued

-

-

-

-

-

-

-

Share issue costs

-

-

-

-

-

-

-

Foreign Currency Translation Reserve

-

-

-

-

25,249

-

25,249

Balance as at 31 December 2023

6,126,579

61,323,350

588,554

(57,976,182)

(132,241)

(6,697,143)

3,232,917

 

 

GROUP - UNAUDITED

31 DEC 2022

ISSUED
CAPITAL

SHARE
PREMIUM

WARRANT
RESERVE

RTO
RESERVE

FOREIGN
CURRENCY
RESERVE

ACCUMULATED
LOSSES


TOTAL

 

£

£

£

£

£

£

£

Balance at 1 July 2022

6,126,579

61,323,350

588,554

(57,976,182)

(52,329)

(6,219,479)

3,790,493

Total comprehensive loss for the period

 

 

 

 

 

(105,569)

(105,569)

Transactions with owners, recorded directly in equity:

 

 

 

 

 

 

 

Issue of shares

-

-

-

-

-

-

-

Share issue costs

-

-

-

-

-

-

-

Foreign Currency Translation Reserve

-

-

-

-

(11,083)

-

(11,083)

Balance as at 31 December 2022

6,126,579

61,323,350

588,554

(57,976,182)

(63,412)

(6,325,048)

3,673,841

 
 

GROUP - AUDITED

30 JUNE 2023

ISSUED
CAPITAL

SHARE
PREMIUM

WARRANT
RESERVE

RTO
RESERVE

FOREIGN
CURRENCY
RESERVE

ACCUMULATED
LOSSES


TOTAL

 

£

£

£

£

£

£

£

Balance at 1 July 2022

6,126,579

61,323,350

588,554

(57,976,182)

(52,329)

(6,219,479)

3,790,473

Total comprehensive income for the period

 

 

 

 

 

 (524,316)

 (524,316)

Transactions with owners, recorded directly in equity:

 

 

 

 

 

 

 

Issue of shares

-

-

-

-

-

-

-

Share issue costs

-

-

-

-

-

-

-

Foreign Currency Translation Reserve

-

-

-

-

(105,161)

-

(105,161)

Balance at 30 June 2023

6,126,579

61,323,350

588,554

(57,976,182)

(157,490)

(6,743,795)

3,161,016

 

 The accompanying notes form part of these financial statements

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

 

 

 

 

6 MONTHS TO
31 DEC 2023
UNAUDITED

6 MONTHS TO
31 DEC 2022
UNAUDITED

12 MONTHS TO
30 JUNE 2023
AUDITED

 

 

£

£

£

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Cash receipts in the course of operations

 

 

84,104

-

-

Cash payments in the course of operations

 

 

(8,673)

(95,057)

(171,131)

Net cash used in operating activities

 

 

(75,431)

(95,057)

(171,131)

 

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES

 

 

 

 

 

Payments for exploration and evaluation expenditure

(59,696)

(194,117)

(191,428)

Payment for shares acquired in Kazera Global Plc

 

 

-

-

-

Proceeds from sale of financial asset at fair value through profit and loss

 

 

-

-

-

Payments for property, plant and equipment

 

 

-

-

-

Proceeds from sale of shares in  Kazera

 

 

-

101,450

101,450

Research and Development Tax Incentive Claim

 

 

-

-

-

Net cash used in investing activities

 

 

(59,696)

(92,667)

89,978

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Proceeds from issue of shares

 

 

-

-

-

Repayment of borrowings

 

 

-

(20,000)

(20,000)

Net cash provided by financing activities

 

 

-

(20,000)

(20,000)

 

 

 

 

 

 

Net (decrease)/increase in cash held and cash equivalents

 

 

(21,717))

(143,873)

(281,109)

Cash and cash equivalents at the beginning of the period

 

 

123,603

541,835

403,328

Effects of exchange rate changes on cash and cash equivalents

 

 

4,297

(1,509)

1,385

Cash and cash equivalents at the end of the period

 

 

106,183

196,757

123,604

 

    The accompanying notes form part of these financial statements.

 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

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 2023. The principal activity of the Group during the financial period was mineral exploration.

  1. BASIS OF PREPARATION

These condensed interim consolidated financial statements (“the interim financial statements”) of the Group are for the six months ended 31 December 2023 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 2023 Annual Report and statutory accounts for the year ended 30 June 2023.

The statutory accounts for the year ended 30 June 2023 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 2023 were approved by the Board on 31 March 2024.

  1. DIVIDEND

The Board is not recommending the payment of an interim dividend for the period ended 31 December 2023.

  1. LOSS 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.

 

 

6 MONTHS TO
31 DEC 2022 UNAUDITED

6 MONTHS TO
31 DEC 2022 UNAUDITED

12 MONTHS TO
30 JUNE 2023 AUDITED

 

£

£

£

Profit/(Loss) for the period attributable to owners of the Company

 

71,909

(105,569)

(524,316)

Weighted average number of ordinary shares in issue for basic earnings*

 

957,188,591

957,188,591

957,188,591

Weighted average number of ordinary shares in issue for fully diluted earnings*

 

957,188,591

957,188,591

957,188,591

(Loss)/gain per share (pence per share)

 

 

 

 

Basic

 

0.00

0.00

(0.06)

Diluted

 

0.00

0.00

(0.06)

 

 

  1. OTHER ASSETS

 

 

 31 DEC 2022 UNAUDITED

 31 DEC 2022 UNAUDITED

 30 JUNE 2023 AUDITED

 

£

£

£

Prepayments(i)

 

353,536

351,780

328,329

Other prepayments

 

2,285

25,518

18,037

Security deposits

 

6,171

3,656

6,038

 

 

380,954

380,954

352,404

 

 

(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. 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. However, as at the date of this report the completion program required to be mutually agreed prior to the credit being applicable to the remaining 7,500 metres has not been produced and until such time as this program has been produced, this credit may not be utilised. As at 30 June 2023, the balance of the prepayment to Titeline is £354,656 (A$625,386).

 

As at 31 December 2023, the balance of the prepayment to Titeline is £353,536 (A$625,386), (2021:£351,780 /A$625,386) remains prepaid to Titeline.

 

 

  1. EVENTS AFTER THE REPORTING PERIOD

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.

 

  1. 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.




View more ...

TTAU announcementsAll announcements

Company

  • About
  • News
  • Investor Relations
  • Contact
  • Careers
ISO 27001 Certified

© Aquis Exchange 2024. All rights reserved.

Terms & ConditionsPrivacy PolicyModern Slavery & Human Trafficking Policy
System statusnormal