Audited Results for the Year Ended 30 September 2018 and Notice of AGM
African Battery Metals plc (LON:ABM), the AIM listed battery metal exploration and development company, is pleased to announce its consolidated audited results for the year ended 30 September 2018 for the Company and its subsidiaries, Cobalt Blue Holdings (“CBH”), Regent Resources Interests Corp. “RRIC”), and ABM Kobald SAS, (“Kobald”), (together the “Group”).
Download the audited results by clicking on the link below.
Highlights from the year under review:
- Further exploration work undertaken by the Company’s wholly owned subsidiary Blue Horizon (“BH”) at the Company’s Ferensola Gold Project (“FGP”), but a strategic decision was taken by the then board in December 2017 to focus on African Battery Metal project interests and, in August 2018, all FGP and other BH activities were discontinued and BH was put into voluntary liquidation in August 2018;
- Change of name in December 2017 to African Battery Metals plc and acquisition of a 70% interest in the Kisinka copper-cobalt project in the Democratic Republic of the Congo (“DRC”) and an option secured over a second cobalt-copper licence in the DRC;
- In August 2018 the Company acquired Cobalt Blue Holdings (“CBH”) which held four prospecting licences in Cameroon close to one of the largest undeveloped cobalt reserves in the world and two prospecting licence applications;
- Simultaneous with the acquisition of CBH in August 2018, the Company acquired Regent Resources Interests Corp. (“RRIC”) which held the irrevocable right to earn in to up to 70% of the 380km2 Lizetta II cobalt, chrome and nickel project in the Cote d'Ivoire; and
- Initial exploration activities were undertaken at the Company’s DRC copper-cobalt Kisinka project, during the year under review to 30 September 2018.
- Loss for the year to 30 September 2018 of £6.6 million (2017: £3.9 million); of which £5.49 million related to the write down of the Company’s carrying value of BH and its underlying investments;
- Total equity of £2.0 million at the year end (2017: £5.4 million); and
- Raised £2.0 million (before issue costs) in new equity financing during the year, from a combination of new and existing shareholders, including the Directors, as well as issuing £1.9 million of ordinary shares as consideration for the acquisitions of the share capital of CBH and RRIC.
- The Company carried out further exploration activities in respect of the Ivory Coast and Cameroon licences acquired in August 2018;
- The Company’s ordinary shares were suspended from trading on the AIM Market of the London Stock Exchange (“AIM”) on 11 December 2018 pending clarification of its financial position;
- On 28 January 2019 the Company announced a Conditional Financing and Business Update, including repayment proposals for the Company’s creditors, a £1.0 million equity fundraising at 0.50p per ordinary share and changes to the board of directors, all subject to approval at a General Meeting of the Company (“GM”);
- At the GM on 15 February 2019, all resolutions were passed and the Company’s trading suspension on AIM was lifted on 18 February 2019;
- The Company announced a Business Update on 6 March 2019 outlining an initial Strategic and Operational Plan for the Company; and
- On 15 March 2019, the Company announced it had acquired an interest in Katoro Gold Plc (“Katoro”) and entered into an option agreement to acquire an interest in Katoro’s Haneti Nickel Project in Tanzania.
Paul Johnson, Executive Director of African Battery Metals commented:
“I present the 2018 audited results to shareholders, cognisant of the challenging period that African Battery Metals experienced after the financial year end in late 2018 and early 2019. Whilst respecting the challenges of the past and their impact on the business I can’t allow them to overshadow the opportunity we now have as a well funded company with no debt and a new energy to drive our business forward.
As I write we are continuing a full business review and will report back to the market on each area of our existing operational interests in the coming weeks, as we have already done confirming our commitment to the Kisinka Copper-Cobalt project in the DRC.
Shareholders will be aware that conditions in the junior resource sector remain difficult with almost universally subdued market valuations. This negative dynamic represents a window for African Battery Metals and we are inundated with potential opportunities, which we are considering alongside the important work of moving our existing interests forward.
I thank all the supporters of the Company. The current and former management team members worked incredibly hard on the refinancing that we announced in January 2019, and we were assisted greatly by a team of advisers who helped management navigate a very challenging pathway.
Above all, for all shareholders, I recognise the duty we have to build, or rebuild, value. To achieve this we need hard work, determination and innovation on a level that inspires current shareholders and encourages new investors to follow, engage with and buy into our story. I promise that shareholders will see all three elements, articulated through our market communications, in the coming weeks and months.”
Notice of Annual General Meeting and Distribution of Accounts to Shareholders
The Company's Annual General Meeting will take place on 7 May 2019 at the offices of Michelmores LLP, 6 New Street Square, London, EC4A 3BF. The Company's Annual Report and Accounts for the year ended 30 September 2018 will be posted to shareholders shortly. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company's website at www.abmplc.com in due course.
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