Interim Results

Power Metal Resources plc the AIM listed metals exploration and development company is pleased to announce its unaudited interim results for the six months period ended 31 March 2020.

Operational Highlights

In the Half Year to 31 March 2020:

  • POW confirmed its election to earn-in to a 40% project interest at the Molopo Farms Complex project (“MFC Project”) in Botswana, with various operational updates and notably the confirmation of high profile nickel sulphide targets for a 2020 drilling programme;
  • POW and its Joint Venture (“JV”) partner Katoro Gold Plc (“Katoro Gold”) (LON:KAT) released an update demonstrating nickel sulphide & laterite, platinum group metals, gold, lithium and rare earth exploration potential at the Haneti Polymetallic Project in Tanzania where POW holds a 25% interest and can acquire a further 10% interest by paying Katoro Gold a further £25,000 by 31 August 2020;
  • The Company commenced a pitting and mapping exploration programme at its 70% owned Kisinka copper-cobalt project in The Democratic Republic of the Congo (“DRC”) following the identification of a 6.8KM copper anomaly in the Company’s licence in 2019;
  • A conditional transaction was announced to acquire an earn-in right over the Alamo gold project in Arizona, USA, subject to completion of due diligence;
  • A financing was undertaken in December 2019 raising £700,000 for the Company;
  • POW directors acquired a further 16,850,000 POW shares investing through participation in the December 2019 POW financing and through the purchase of shares on market at a total cost of £69,488.

After 31 March 2020:

  • In April 2020, POW announced the conditional acquisition of a 51% interest in the Ditau project held by Kavango Resources plc (LON:KAV) for £150,000 payable solely through the issue of POW new ordinary shares and subject to satisfactory due diligence;
  • POW provided an update on the MFC Project in Botswana including, reflecting the scale of the project and the larger than expected number of high-profile targets, the creation of four target groups Chipo - Northern Targets, Tshepo - Central Targets, Galaletsang - Southern Targets and Tshenolo - Western Magnetic Targets;
  • With the agreement of all parties and due to Covid-19 disruption the due diligence period at the Alamo gold project in Arizona, USA was extended to 30 June 2020;
  • In April 2020 POW announced the creation of a new gold exploration Joint Venture (“JV”) focused on the highly sought-after Victoria Goldfields in Australia and the acquisition of a 49.9% stake in the JV Australian operating company Red Rock Australasia Pty Limited;
  • Further project expansion updates were made covering the Australian gold JV and, by June 2020, the JV company had a land package comprising of exploration licence applications covering 1,835 sq km, one of the largest in the Victoria Goldfields area;
  • In May 2020 the JV partners POW and Katoro Gold announced commercial updates in respect of the Haneti Polymetallic project in Tanzania confirming expressions of interest from third parties with a view to earn-in, JV or similar. The JV partners are continuing to assess optimisation of the ownership structure for Haneti to reflect third party negotiations;
  • POW confirmed safe and successful completion of the Kisinka field programme in the DRC in May 2020 and, subject to Covid-19 restrictions, the advancement to XRF and assay testing of samples to assess copper and cobalt mineralisation;
  • The Company released its accounts for the year ended 30 September 2020 in May 2020 with an extension granted by Companies House and the London Stock Exchange due to Covid-19 and related challenges experienced by the Company’s auditors;
  • In May 2020 POW released a new corporate presentation and in June 2020 the Company completed and announced a corporate website update and noted its first broker reports with an Initiation Broker Research Note issued by First Equity Limited and a Broker Note covering the Victoria Goldfields by SI Capital Limited;
  • Paul Johnson, POW CEO, acquired a further 5,500,000 POW shares through the purchase of shares on market at a total cost of £22,050.

Financial Highlights for the Half Year Ended 31 March 2020:

  • Loss for the period, attributable to owners of the parent of £0.24 million (2019: £0.32 million), resulting in a loss per share of 0.05 pence (2019: 0.17 pence); and
  • Net assets of £2.0 million at the period end (30 September 2019: £1.6 million).

Statement by Paul Johnson, Chief Executive Officer:

“POW now has a diverse business model, with a new and developing gold joint venture interest in Australia and base metal interests in Africa. As a Company we are targeting large scale metal discoveries and in the Board’s opinion each project interest we hold has the potential to deliver a large-scale discovery or discoveries.

From a corporate perspective POW is still undertaking due diligence on new project opportunities albeit the emphasis now is the operational and corporate development of existing portfolio interests.

For those projects we choose to continue to operate, this will be through active exploration programmes. For those projects where we see corporate development as the best option, this will entail commercialisation transactions to further bolster our financial strength.

Our aim is to have exploration-driven high impact project interests that deliver a consistent flow of news to the market. Underpinning those exploration projects, we want to develop a ‘balance sheet’ of substance, with a key objective of financial self-sufficiency, so we are not reliant on the market for financings through equity placings. We are making progress on both counts though there is plenty more ongoing work to do.

At this point I would like to thank all POW shareholders for your support. Our sector is generally high risk and our objective of seeking large scale metal discoveries is acutely challenging. However, it is also true that should POW be fortunate enough to make a large-scale metal discovery, as is our objective, we could materially change the lives of our shareholders. To that end, it is a venture worth pursuing and I respect and appreciate all shareholders, large and small, who have placed their trust in POW and are engaged with our developing story.”

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Download the full RNS and Interim Results to 31st March 2020 (PDF)

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30 June 2020


Power Metal Resources plc
201 Temple Chambers
3-7 Temple Avenue
London EC4Y 0DT
United Kingdom