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IMC Exploration Group Plc - Financial Statement for Year Ended 30th June 2021

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO. 596/2014 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL OF 16 APRIL 2014 ON MARKET ABUSE AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "MARKET ABUSE REGULATION"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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FINAL RESULTS FOR THE YEAR 1ST JULY 2020 TO 30TH JUNE 2021

IMC Exploration Group Public Limited Company

Chairman’s Statement for the Year ended 30 June 2021

The Directors of IMC Exploration Group plc (“IMC” or the “Company”) are pleased to present the audited financial results for IMC for the twelve months to 30th June 2021. The consolidated financial statements appearing below (which do not form the full statutory Report and Accounts of the Company) are taken from the Directors’ Report and Financial Statements for the year ended 30 June 2021 posted to shareholders, a copy of which will be available from IMC’s website at https://www.imcexploration.com/.

The last year has been a very eventful time for IMC, both on the corporate and exploration fronts. Further work on our spoils and tailings’ project has been carried out. Additional trial pits were excavated proving greater depths than expected at West Avoca and indicating the presence of a larger tonnage of spoils and tailings than had originally been estimated in the CSA Global Report (2019). The gold assays from these trial pits combined with the expected increase in tonnage indicates the existing gold Exploration Target at West Avoca will represent further potential. Significantly elevated copper, lead and silver grades are also present.

IMC will commission an update of the existing West Avoca Exploration Target with the objective of upgrading it to an Inferred Resource. This will complement the JORC-compliant CSA Global commissioned IMC Mineral Resource Estimate (‘MRE’) on East Avoca where an inferred resource of ca. 20,000 gold oz. was reported.

Further, gold mineralisation was confirmed in appraisal drilling at North Wexford. Zones of gold mineralisation were present throughout rhyolites. During appraisal drilling on its North Wexford gold project, IMC intersected a 47m mineralised acid volcanic horizon (mainly rhyolites) at depths up to 50m deeper than historical drilling. Gold mineralisation occurred over five closely-spaced intervals (ranging from 0.9 – 1.4m wide) with a maximum grade of 0.4 g/t Au over a 1m interval.

These grades are in line with those reported previously from historic drill hole GQ1, 0.5 g/t Au over 18.6m. The alteration associated with the rhyolites is extensive and indicative of a strong mineralising system that is prospective for both gold and base metals. Rocks intersected also confirmed base metal potential.

The drilling results from our North Wexford licence reinforces the highly prospective geology of IMC’s licences in this area and supports IMC’s strategy of understanding the gold mineralisation with the objective of establishing a gold resource.

With copper prices recently reaching an all-time high, climate change initiatives to the fore and copper a vital component to drive the green economy, IMC will be part of this new, green future with its copper project in Avoca. IMC’s Avoca licence area in Co. Wicklow contains the historic Avoca copper mine. This mine is estimated to have contained 16 million tonnes of 0.6% copper which was exported as a concentrate that contained ”payable grades of gold and silver” (Williams et al., 1986). In addition, in situ zinc and lead mineralisation is present at West Avoca over a minimum strike length of ca. 300m.

When this mine ceased operations in 1982, (owing mainly to the low price of copper prevailing at that time) significant amounts of ore were left in place. IMC has reassessed historical records along strike to the south-west from the Avoca mine, and interprets there to be a 1.2 km minimum strike length that has either been only partially tested or else has specific targets remaining to be drill tested.

At the north-eastern end of the 1.2 km strike length outlined by IMC, historical drilling encountered 13.3m grading 3.7% Zn, 1.8% Pb and 5.3m grading 1.9% Cu. At the south-western end, historical assays include 5.8m grading 0.5% Cu with 0.9m grading 0.5 g/t Au. Widely-spaced drillholes within the 1.2km strike extent have assayed 10m grading 1.1% Cu and 9.0m grading 10.25% Zn and 4.78% Pb. Gold grades of up to 0.4 g/t Au over 4.5m have been recorded and represent a highly positive ‘credit’ when taken in consideration with the high copper and zinc grades.

IMC is currently drilling in West Avoca adjoining the historic Avoca Copper mine. IMC intersected zinc, lead and copper mineralisation its first drill hole in West Avoca. This drillhole encountered four zones of massive and semi-massive sulphide. Further drill holes are planned to assess the extent and continuity of copper, gold, zinc and lead mineralisation along strike from the historic Avoca mine. Historical mineralised intercepts in this area include West Avoca area include 10m grading 1.1% copper and 9m grading 10.3% zinc and 4.8% lead.

SLR Consulting Ireland recently completed a Competent Persons’ Report (‘CPR’) on properties held by IMC. The historical production from the Avoca mine and the in-situ copper resource at Avoca is remarkable. Historical production from the Avoca Mine is estimated to have totalled 16 million tonnes grading c.0.6% Cu from banded vein and disseminated sulphides hosted by the upper Ordovician Duncannon Group. The total in situ copper resource at Avoca is reported to have exceeded 100 million tonnes at 0.2% copper.

As announced to the market on 15 April 2021, IMC has conditionally agreed to purchase the Karaberd Mine, a gold mine located in Lori Marz, northern Armenia, which IMC’s representative has recently visited as part of the due diligence process.

IMC considers that the acquisition of the Karaberd Mine and the development of the Karaberd ore-crushing facility will serve the existing strategic direction of IMC while expanding the geographic scope of its operations. The Directors believe it will also be transformational for the Company, taking it from being an exploration company to being a mining production company with a source of cash-flow.

This is an excellent time for copper, and for IMC with the historic Avoca copper mine on our licence area. The price of copper having recently reached an all-time high, this is a particularly opportune time to explore the under-exploited Avoca copper mine. This exploration work is currently underway. In addition, we expect to conclude the acquisition of the Karaberd mine in due course, following completion of IMC’s extensive geological, legal and financial investigations.

Accordingly, we expect that 2022 will be a milestone year for the Company and, in addition to completing the Karaberd purchase, the Company is also reviewing further projects including discussions with a major international company on how best to extract the mineral resources in IMC’s Avoca spoils and tailings’ heaps in an eco-friendly and cost-effective manner.

I look forward to updating shareholders with further intelligence on developing the Company’s existing Irish licences and on the progress of the Armenian mine acquisition as and when this is appropriate and necessary.

Eamon P. O’Brien,
Executive Chairman,
Dublin, 28th October 2021

IMC Exploration Group Public Limited Company

Consolidated Statement of Comprehensive Income

for the year ended 30th June 2021

Continuing Operations

2021

2020

Administrative expenses

(294,996)

(251,947)

Operating Loss for the period

(294,996)

(251,947)

Finance Income

-

-

Amount written off Intangible Assets

(43,484)

-

Amount written off investment

-

-

__________

__________

Loss for period before tax

(338,480)

(251,947)

Income tax expenses

2,047

-

_________

_________

Total comprehensive loss for the period

(336,433)

(251,947)

=========

=========

Loss attributable to:

Equity holders of the Company

(336,433)

(251,947)

=========

=========

Total Comprehensive Loss attributable to:

Equity holders of the Company

(336,433)

(251,947)

=========

=========

Earnings per share

From continuing operations

Basic and Diluted loss per share (cent)

0.1

0.1

All activities derived from continuing operations. All losses and total comprehensive losses for the period are attributable to the owners of the Company.

The Company has no recognised gains or losses other than those dealt with in the statement of comprehensive income.

The Financial statements were approved by the Board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien Andrew Laz Fleming

Director Director

IMC Exploration Group Public Limited Company

Consolidated Statement of Financial Position

for the year ended 30th June 2021

2021

2020

Assets

Intangible assets

435,803

472,487

Property, plant and equipment

2,754

1,291

Investments

-

-

__________

__________

Total Non-Current Assets

438,557

473,778

__________

__________

Current Assets

Trade and other receivables

13,696

112,864

Cash and cash equivalents

52,123

(34,767)

__________

__________

Total Current Assets

65,819

78,097

__________

__________

Total Assets

504,376

551,875

=========

=========

Equity

Share Capital

349,589

322,839

Share premium

4,164,633

3,925,015

Retained deficit

(4,237,559)

(3,901,126)

__________

__________

Attributable to owners of the Company

276,663

346,728

__________

__________

Total Equity

276,663

346,728

__________

__________

Liabilities – Current

Trade and other payables

227,713

203,100

Current tax liabilities

-

2,047

__________

__________

Total Liabilities

227,713

205,147

__________

__________

Total Equity and Liabilities

504,376

551,875

The Financial statements were approved by the Board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien Andrew Laz Fleming

Director Director

IMC Exploration Group Public Limited Company

Consolidated Statement of Changes in Equity

for the year ended 30th June 2021

Share Capital €

Share Premium €

Retained Losses €

Total €

Balance at 30 June 2019

293,107

3,645,171

(3,649,179)

289,099

___________

__________

_________

_______

Total comprehensive income for the period

Loss for the period

-

-

(251,947)

(251,947)

__________

___________

__________

_________

Total comprehensive income for the period

-

(251,947)

(251,947)

Transactions with owners, recorded directly in equity

contributions by and distributions to owners

Shares issued

29,732

296,224

-

325,956

Share issue costs

-

(16,380)

-

(16,380)

__________

___________

__________

_________

Total transactions with owners

29,732

279,844

-

309,576

__________

___________

__________

_________

Balance at 30 June 2020

322,839

3,925,015

(3,901,126)

346,728

__________

___________

__________

_________

Total comprehensive income for the period

Loss for the period

-

-

(336,433)

(336,433)

__________

___________

__________

_________

Total comprehensive income for the period

-

(336,433)

(336,433)

Transactions with owners, recorded directly in equity contributions by and distributions to owners

Shares issued

26,750

269,558

-

296,308

Share issue costs

-

(29,940)

-

(29,940)

__________

___________

__________

_________

Balance at 30 June 2021

349,589

4,164,633

(4,237,559)

276,663

__________

___________

__________

_________

Net equity is attributable to the holder of the ordinary shares in the Group.

The financial statements were approved by the board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien Andrew Laz Fleming

Director Director

IMC Exploration Group Public Limited Company

Consolidated Statement of Cash Flows

for the year ended 30th June 2021

2021

2020

Cash flows from operating activities

Loss for the year

(336,433)

(251,947)

Adjustments for:

Intangible Assets Write Off

43,484

-

Income Tax recognised in profit and loss

(2,047)

-

Depreciation

905

431

________

________

Cash from operations before changes in working capital

(294,091)

(251,516)

Movement in trade and other receivables

99,168

(73,490)

Movement in trade and other payables

24,613

12,436

_________

_________

Net cash flow from operating activities

(170,310)

(312,570)

Cash flows from investing activities

Interest received

-

-

Proceeds from sale of investments

-

-

Taxation

-

-

Acquisitions and disposals

(9,168)

(1,370)

_________

_________

Net cash (used in) investing activities

(9,168)

(1,370)

_________

_________

Cash flows from financing activities

Proceeds from the issue of new shares

266,368

309,576

Finance income/(expense)

-

-

_________

_________

Net cash generated by financing activities

266,368

309,576

_________

_________

Movement in cash and cash equivalents

86,890

(4,364)

Cash and cash equivalents at beginning of year

(34,767)

(30,403)

_________

_________

Cash and cash equivalents at end of year

52,123

(34,767)

The financial statements were approved by the Board of Directors on 14th October 2021 and signed on its behalf by:

On behalf of the board

Eamon O’Brien Andrew Laz Fleming

Director Director

The Directors of IMC, after due and careful enquiry, accept responsibility for the contents of this announcement.


REGULATORY ANNOUNCEMENT ENDS.

Enquiries:


Keith, Bayley, Rogers & Co. Limited

Graham Atthill-Beck: +44 7506 43 41 07 / Graham.Atthill-Beck@kbrl.co.uk

Brinsley Holman: +44 7776 30 22 28/ Brinsley.Holman@kbrl.co.uk

IMC Exploration Group plc

Kathryn Byrne: +353 85 233 6033

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