Katoro Gold PLC
('Katoro' or the 'Company')
Interim Results
30 September 2024: Katoro Gold PLC (AIM: KAT), the strategic and precious minerals exploration and development company, announces its unaudited interim financial results for the six-month period ending 30 June 2024 and provides a brief update on subsequent developments.
Patrick Cullen, Interim Chief Executive Officer of Katoro commented:
"During the period, Katoro pursued a new direction with a refinancing that enabled the elimination of historical creditor balances and liabilities which had placed obvious limitations on the business. Since February, and with a stabilised financial position, Katoro has been able to restructure its management team, reassess existing interests and move forward with the active and meaningful review of new opportunities of varying scale and complexity.
The first new opportunity announced is a robust yet low-cost move into uranium exploration, at a highly significant time in the uranium and nuclear power generation sector, with the acquisition through staking of the White Pine Uranium Project in Ontario, Canada (news release 09 September 2024 can be found here). Historic lake sediment sampling by the Ontario Geological Survey report very highly anomalous uranium concentrations in a geologically prospective setting. Furthermore, the project is adjacent to excellent infrastructure. These attributes are highlighted in the White Pine Uranium Project presentation available on the Company website www.katorogold.com.
Rising global demand for green forms of energy, and electricity in particular, has remobilised the uranium market in recent years. Interest has further intensified with the news that Microsoft Corporation has sought direct engagement with the restart of Three Mile Island in the USA in order to provide reliable power for their AI business operations. Reliable, high capacity and low carbon baseload generation are recognised features of nuclear generation. There is new dynamic demand emerging for nuclear power generation and so uranium, and Katoro will intensify its efforts in this important space.
Market conditions have been challenging for junior resource companies as shareholders are aware. As a result, many of our peers are relinquishing ground, or slimming business operations to focus on smaller portfolios. This presents a fast-moving acquirer with many opportunities and Katoro's move into uranium exploration is a first example of this. It is, I expect, only the start, as we seek to further enhance our uranium exposure and also consider fresh and exciting opportunities in strategic and critical metal projects.
Further updates are on the horizon, including re-branding and a new name reflective of Katoro's revitalised strategy. In the meantime, we are focused on the White Pine Uranium Project, the ongoing review of a very large body of data from Haneti and the review of further opportunities and proposals. I look forward to providing updates on these activities and other developments within the business."
The full unaudited interim financial results for the six-month period ending 30 June 2024 can be viewed below and at www.katorogold.com.
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.
**ENDS**
Enquiries:
Katoro Gold PLC
Patrick Cullen (Interim chief executive officer) info@katorogold.com
Beaumont Cornish Limited Nominated Adviser
James Biddle +44 207 628 3396
Roland Cornish
SI Capital Ltd Corporate Broker
Nick Emmerson +44 148 341 3500
Sam Lomanto
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Unaudited interim results for the six months ended 30 June 2024
Unaudited condensed consolidated interim Statement of Comprehensive Income
For the six months ended 30 June 2024
|
| 6 months to | 6 months to | Year ended |
| Note | 30 June | 30 June | 31 December |
|
| 2024 | 2023 | 2023 |
|
| (Unaudited) | (Unaudited) | (Audited) |
|
| £ | £ | £ |
Administrative expenses | | (175,470) | (261,265) | (450,540) |
Foreign exchanges (loss) / gain | | (2,454) | (240) | (311) |
(Impairment) / reversal of associates | 14 | (5,665) | 1,067 | (7,053) |
Share of loss in associates | 14 | (449) | (1,067) | 7,480 |
Share-based payment transactions | 6 | - | (22,796) | - |
Exploration expenditure | | (23,001) | (26,800) | (163,448) |
Operating profit/loss |
| (207,039) | (311,101) | (613,872)
|
Finance (cost) / income | | (6) | 7 | 12 |
Profit / (loss) before tax |
| (207,045) | (311,094) | (613,860)
|
Tax | | - | - | - |
Profit/(loss) for the period |
| (207,045) | (311,094) | (613,860)
|
| | | | |
Other comprehensive income | | | | |
Exchange differences on translating of foreign operations | | 4,938 | 6,841 | 6,495
|
Total comprehensive loss |
| (202,107) | (304,253) | (607,365)
|
|
|
|
|
|
Loss for the period |
| (207,045) | (311,094) | (613,860)
|
Attributable to owners of the parent |
| (190,355) | (293,559) | (576,141) |
Attributable to non-controlling interest |
| (16,690) | (17,535) | (37,719) |
|
|
|
|
|
Total comprehensive loss |
| (202,107) | (304,253) | (607,365)
|
Attributable to owners of the parent |
| (196,265) | (329,812) | (608,062) |
Attributable to non-controlling interest |
| (5,842) | 25,559 | 697 |
| | | | |
Earnings / (loss) per share | | | | |
Basic and diluted earnings / (loss) per share (pence) | 4 | (0.01) | (0.05) | (0.09)
|
| | | | |
Unaudited condensed consolidated interim Statement of Financial Position
As at 30 June 2024
|
| 6 months ended | 6 months ended | 12 months to |
|
| 30 June | 30 June | 31 December |
| Note | 2024 | 2023 | 2023 |
|
| (Unaudited) | (Unaudited) | (Audited) |
|
| £ | £ | £ |
Assets | | | | |
Current assets | | | | |
Other receivables | | 7,867 | 7,743 | 15,916 |
Cash and cash equivalents | | 249,827 | 25,443 | 414 |
Total current assets |
| 257,694 | 33,186 | 16,330 |
|
|
|
|
|
Total Assets |
| 257,694 | 33,186 | 16,330 |
| | | | |
Equity | | | | |
Called-up share capital | 5 | 1,596,420 | 669,497 | 669,497 |
Share premium | | 2,962,582 | 2,962,582 | 2,962,582 |
Deferred share capital | 5 | 4,143,713 | 4,143,713 | 4,143,713 |
Capital contribution reserve | | 10,528 | 10,528 | 10,528 |
Translation reserve | | (334,768) | (333,190) | (328,858) |
Merger reserve | | 1,271,715 | 1,271,715 | 1,271,715 |
Warrant and share-based payment reserve | 6 | 451,556 | 474,352 | 451,556 |
Retained deficit | | (9,788,683) | (9,235,396) | (9,527,078) |
Reserves attributable to owners |
| 313,063 | (36,199) | (346,345) |
Minority interest | | (297,785) | (267,081) | (291,943) |
Total Equity |
| 15,278 | (303,280) | (638,288) |
|
|
|
|
|
Liabilities | | | | |
Current liabilities | | | | |
Trade and other payables | 3 | 44,338 | 144,216 | 460,578 |
Other financial liabilities | 12 | 198,078 | 192,250 | 194,040 |
Total current liabilities |
| 242,416 | 336,466 | 654,618 |
|
|
|
|
|
Total Equity and Liabilities |
| 257,694 | 33,186 | 16,330 |
|
|
|
|
|
Unaudited condensed consolidated Statement of Changes in Equity
| Share Capital | Share Premium | Deferred Share Capital | Warrant reserve and share based payment reserve | Merger Reserve | Capital Contrib-ution Reserve | Foreign currency translation reserve | Retained deficit | Non-controlling interest | Total |
| £ | £ | £ | £ | £ | £ | £ | £ | £ | £ |
Balance at 31 December 2023 (audited) | 669,497 | 2,962,582 | 4,143,713 | 451,556 | 1,271,715 | 10,528 | (328,858) | (9,527,078) | (291,943) | (638,288) |
Loss for the year | - | - | - | - | - | - | - | (190,355) | (16,690) | (207,045) |
Other comprehensive income | - | - | - | - | - | - | (5,910) | - | 10,848 | 4,938 |
Shares issued | 926,923 | - | - | - | - | - | - | - | - | 926,923 |
Share issue costs | - | - | - | - | - | - | - | (71,250) | - | (71,250) |
Balance at 30 June 2024 (unaudited) | 1,596,420 | 2,962,582 | 4,143,713 | 451,556 | 1,271,715 | 10,528 | (334,768) | (9,788,683) | (297,785) | 15,278 |
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2022 (audited) | 4,604,125 | 2,962,582 | - | 828,223 | 1,271,715 | 10,528 | (296,937) | (9,318,504) | (292,640) | (230,908) |
Loss for the period | - | - | - | - | - | - | | (293,559) | (17,535) | (311,094) |
Other comprehensive loss - exchange differences | - | - | - | - | - | - | (36,253) | - | 43,094 | 6,841 |
Capital reorganisation | (4,143,713) | - | 4,143,713 | - | - | - | - | - | - | - |
Warrants issued | - | - | - | 22,796 | - | - | - | - | - | 22,796 |
Warrants expired | - | - | - | (376,667) | - | - | - | 376,667 | - | - |
Shares issued | 209,085 | - | - | - | - | - | - | - | - | 209,085 |
Balance at 30 June 2023 (unaudited) | 669,497 | 2,962,582 | 4,143,713 | 474,352 | 1,271,715 | 10,528 | (333,190) | (9,235,396) | (267,081) | (303,280) |
| | | | | | | |
|
|
|
Balance at 1 January 2023 (audited) | 4,604,125 | 2,962,582 | - | 828,223 | 1,271,715 | 10,528 | (296,937) | (9,318,504) | (292,640) | (230,908) |
Loss for the period | - | - | - | - | - | - | - | (576,141) | (37,719) | (613,860) |
Other comprehensive income - exchange differences | - | - | - | - | - | - | (31,921) | - | 38,416 | 6,495 |
Restructuring of shares | (4,143,713) | - | 4,143,713 | - | - | - | - | - | - | - |
Shares issued | 209,085 | - | - | - | - | - | - | - | - | 209,085 |
Share issue costs | - | - | - | - | - | - | - | (9,100) | - | (9,100) |
Warrants expired | - | - | - | (376,667) | - | - | - | 376,667 | - | - |
Balance at 31 December 2023 (audited) | 669,497 | 2,962,582 | 4,143,713 | 451,556 | 1,271,715 | 10,528 | (328,858) | (9,527,078) | (291,943) | (638,288) |
Notes | 5 | | 5 | 6 | | | | | |
|
Unaudited condensed consolidated interim Statement of Cash Flow
For the six months ended 30 June 2024
| 6 months ended | 6 months ended | 12 months ended |
| 30 June | 30 June | 31 December |
| 2024 | 2023 | 2023 |
| (Unaudited) | (Unaudited) | (Audited) |
| £ | £ | £ |
| | | |
Loss for the period before taxation | (207,045) | (311,094) | (613,860) |
Adjusted for: | | | |
Foreign exchange loss / (gain) | 2,454 | 240 | 311 |
Share-based payment transactions | - | 22,796 | - |
(Reversal of) / Impairment of associates | 5,665 | - | 7,053 |
Share of loss / (profit) in associate | 449 | - | (7,480) |
Share issue costs not settled in cash | - | 9,100 | |
Other non-cash items | - | 8,622 | 116 |
Non-trade expenses not settled in cash | 25,000 | 59,085 | 59,085 |
Operating loss before working capital changes | (71,554) | (211,251) | (554,775) |
Decrease in trade and other receivables | 8,050 | 8,597 | 424 |
Increase / (Decrease) in trade and other payables | (314,317) | 37,601 | 353,963 |
Net cash outflows from operating activities | (479,744) | (165,053) | (200.388) |
| | | |
Cash flows from financing activities | | | |
Investments in associates | (6,114) | - | - |
Net cash proceeds from financing activities | (6,114) | - | - |
| | | |
Cash flows from financing activities |
|
|
|
Issue of shares (net of share issue costs) | 728,750 | 140,900 | 140,900 |
Proceeds from other financial liabilities | - | - | 3,811 |
Net cash proceeds from financing activities | 728,750 | 140,900 | 144,711 |
| | | |
Net decrease in cash and cash equivalents | 242,892 | (24,153) | (55,677) |
Cash and cash equivalents at beginning of period | 414 | 49,596 | 49,596 |
Movement in foreign currency reserves | 6,521 | | 6,495 |
Cash and cash equivalents at end of period | 249,827 | 25,443 | 414 |
During the six month period ended 30 June 2024 shares to the value of £126,923 were issued in lieu of cash settlement of trade payables to the value of £101,923 and expenses of £25,000.
Total cash received from share issues is £728,750 (£800,000 share capital less share costs of £71,250), resulting in £926,923 share capital increase (June 2023 and December 2023: share issued £209,085 less settlement of trade payables of £59,085 and share issue costs of £9,100 resulting in £140,900 cash received).
Notes to the unaudited condensed consolidated interim financial statements
For the six months ended 30 June 2024
Note 1 General information
Katoro Gold plc ('Katoro' or the 'Company') is incorporated in England and Wales as a public limited company ('plc'). The Company's registered office is located at 60 Gracechurch Street, London EC3V 0HR.
The principal activity of Katoro, through its subsidiaries (together the 'Group'), is to carry out evaluation and exploration studies within a licenced portfolio area with a view to generating commercially viable Mineral Resources, namely gold and nickel mines. In Haneti, the Group has one nickel mining project, which has mineral exploration licences currently held by Eagle Exploration Ltd.
The condensed interim consolidated financial statements do not represent statutory accounts within the meaning of section 435 of the Companies Act 2016.
The condensed consolidated financial statements of the Company have been prepared in accordance with the Accounting Standard IAS 34, 'Interim Financial Reporting', as adopted by the UK.
The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the period ended 31 December 2023, which has been prepared in accordance with UK-adopted IFRSs, and any public announcements made by Katoro Gold plc during the interim reporting period.
The condensed consolidated financial statements of the Group are presented in Pounds Sterling, which is the functional and presentation currency for the Group and its related subsidiaries.
Accounting policies applied are consistent with those of the previous financial period and annual report unless where new standards became effective during the period and a newly adopted accounting policy for Investments in equity instruments - Associates.
The seasonality or cyclicality of operations does not impact on the interim financial statements.
Investments in associates
Associates are all entities over which the group has significant influence but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting.
Use of estimates and judgements
The preparation of these consolidated statements in conformity with UK adopted International Accounting Standards require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.
In particular, there are significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements in the following areas:
• Impairment assessment of investment in associates;
• Joint arrangements;
Impairment assessment of investment in associates
In applying IAS 36, impairment assessments are performed whenever events or changes in circumstances indicate that the carrying amount of an asset or CGU may not be recoverable. Estimates are made in determining the recoverable amount of assets which includes the estimation of cash flows and discount rates used as well as determination of the fair value in an open market transaction, where available. In estimating the cash flows, management bases cash flow projections on reasonable and supportable assumptions that represent management's best estimate of the range of economic conditions that will exist over the remaining useful life of the assets. The discount rates used reflect the current market assessment of the time value of money and the risks specific to the assets for which the future cash flow estimates have not been adjusted. Where market values are available for similar assets in a similar condition, managements assess the reasonability of these valuations in order to utilise these valuations as a comparable open market value to determine whether an indication of impairment exists.
Joint arrangements share in profit or loss
Arrangements under which Katoro has contractually agreed to share control with another party or parties are joint ventures where the parties have rights to the net assets of the arrangement, or joint operations where the parties have rights to the assets and obligations for the liabilities relating to the arrangement.
Management applies judgement on the share in profit or loss from associates recognised under equity accounting in terms of IAS 28.
Note 2 Going concern
The Company currently generates no revenue and had a net asset position of £15,278 and available cash reserves of £249,827 as at 30 June 2024 (30 June 2023: net liabilities position of £303,280 and cash reserves of £25,443 and 31 December 2023: net liability position of £638,288 and cash reserves of £414).
The Directors regularly review cash flow requirements to ensure the Group can meet financial obligations as and when they fall due. The Directors have evaluated the Group's liquidity risk and liquidity requirements to confirm whether the Group has adequate cash resources and working capital to continue as a going concern for the foreseeable future. The Directors assessed available information about the future, possible outcomes of planned events and the responses to such events and conditions that would be available to the Board.
In the past the Group has raised funds via equity contributions from new and existing shareholders, enabling the Group to remain a going concern until such time that revenues are earned through the sale or development and mining of a mineral deposit. There can be no assurance that such funds will continue to be available on reasonable terms, or at all in future.
There is a material uncertainty related to the events or conditions described above that may cast significant doubt on the entity's ability to continue as a going concern, and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
In response to the above the Directors continue to review the Group's options to secure additional funding for its general working capital requirements, alongside its ongoing review of potential acquisition targets and corporate development needs. A deferral of Directors' salaries has been agreed upon in the short term.
The evaluation of the going concern considers that Katoro has a strong proven track record of being able to source funding on an ongoing basis, even in difficult market conditions, and the board expects to be able to continue doing so.
Various sources of funding are considered, most notably:
• Capital placing
• Exercise of outstanding warrants
• Credit loan notes
Katoro has had previous support, with specific reference to funding, from its corporate broker, SI Capital Ltd, which also has a proven track record of being able to facilitate ongoing funding.
The Group and Company will require additional finance to progress work on its current assets and bring them to commercial development and cash generation. As a result, the Directors continue to monitor and manage the Company's cash and overheads carefully in the best interests of its shareholders.
Whilst the Directors continue to consider it appropriate to prepare the financial statements on a going concern basis the above constitutes a material uncertainty that shareholders should be aware of.
Note 3 Trade and other payables
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| | £ | £ | £ |
| Trade payables | 29,184 | 92,667 | 301,170 |
| Accruals | 15,154 | 51,549 | 159,408 |
| | 44,338 | 144,216 | 460,578 |
Note 4 Earnings per share
The calculation of loss per share is based on the following loss and number of shares:
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| | £ | £ | £ |
| Loss for the period from continuing operations attributable to equity holders of parent | (190,355) | (293,559) | (576,142) |
| | | | |
| Weighted average basic and diluted number of shares | 1,435,833,307 | 615,980,994 | 615,980,994 |
| | | | |
| Basic and diluted earnings/(loss) per share (pence) | (0.01) | (0.05) | (0.09) |
The Group presents basic and diluted EPS data on the basis that the current structure has always been in place. Therefore, the number of Katoro shares in issue as at the period end has been used in the calculation. Basic earnings/Loss per share is calculated by dividing the profit/loss for the period from continuing operations of the Group by the weighted average number of shares in issue during the period.
The Company had in issue warrants and options at 30 June 2024. The inclusion of such warrants and options in the weighted average number of shares in issue would be anti-dilutive, and therefore, they have not been included for the purpose of calculating the loss per share.
Note 5 Share Capital
The called-up and fully paid share capital of the Company is as follows:
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| | £ | £ | £ |
| Allotted, called-up and fully paid: | 1,596,420 | 669,497 | 669,497 |
A reconciliation of share capital is set out below:
|
| Number of shares | Allotted, called-up and fully paid | Deferred share capital |
|
|
| £ | £ |
| At 1 January 2023 | 460,412,593 | 4,604,125 | - |
| Capital reorganisation | - | (4,143,713) | 4,143,713 |
| Shares issued | 209,085,100 | 209,085 | - |
| At 1 July 2023 | 669,497,693 | 669,497 | 4,143,713 |
| | | | |
| At 1 January 2024 | 669,497,693 | 669,497 | 4,143,713 |
| Shares issued | 926,922,880 | 926,923 | - |
| At 30 June 2024 | 1,596,420,573 | 1,596,420 | 4,143,713 |
The following share transactions took place during the period 1 January 2024 to 30 June 2024:
· On 12 February 2024 750,000,000 shares in Katoro were issued at par value of £0.001 as part of financing.
· On 12 February 2024 42,411,920 shares in Katoro were issued at par value of £0.001 in lieu of payment for Directors' fees due.
· On 12 February 2024 38,305,000 shares in Katoro were allotted and issued at par value of £0.001 in lieu of payment for Kibo Energy PLC recharge costs
· On 14 February 2024 75,000,000 shares in Katoro were issued at par value of £0.001 as part of financing.
· On 21 February 2024 21,205,960 shares in Katoro were" issued at par value of £0.001 in lieu of payment for Director's fees due.
Note 6 Warrant and Share-based payment reserve
Warrants
The following reconciliation serves to summarise the composition of the warrant reserve as at period end:
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| | £ | £ | £ |
| Opening balance of warrant reserve | - | 376,667 | 376,667 |
| Issue of warrants | - | 22,796 | 22,796 |
| Adjustment of warrant valuation | - | - | (22,796) |
| Expiry of warrants | - | (376,667) | (376,667) |
| | - | 22,796 | - |
Reconciliation of the quantity of warrants in issue:
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| Opening balance | 257,085,100 | 166,166,666 | 166,166,666 |
| Warrants exercised | - | - | - |
| Warrants issued | 850,000,000 | 209,085,100 | 209,085,100 |
| Warrants expired | (48,000,000) | (36,666,666) | (118,166,666) |
| | 1,059,085,100 | 338,585,100 | 257,085,100 |
No warrants have been exercised in the six-month period ended 30 June 2024.
The following warrant transactions took place during the period 1 January 2024 to 30 June 2024:
· On 12 February 2024 775,000,000 warrants were issued pursuant a share issue. The warrants have an exercise price of £0.002 each and expire 36 months after the issue thereof.
· On 14 February 2024 75,000,000 warrants were issued pursuant a share issue. The warrants have an exercise price of £0.002 each and expire 36 months after the issue thereof.
All warrants have been valued using the reduced balance method.
Share Options
The following reconciliation serves to summarise the composition of the share-based payment reserve as at period end:
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| | £ | £ | £ |
| Opening balance of share-based payment reserve | 451,556 | 451,556 | 451,556 |
| | 451,556 | 451,556 | 451,556 |
Reconciliation of the quantity of Share Options in issue:
| | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| Opening balance | 32,244,781 | 32,244,781 | 32,244,781 |
| Closing balance | 32,244,781 | 32,244,781 | 32,244,781 |
During the period no new share options were vested and no share options expired.
Note 7 Board of Directors
Non-executive chairman Sean Wade was appointed on 29 February 2024 and interim Chief Executive Officer Patrick Cullen was appointed 4 July 2024. The directors have been appointed appropriately on the Audit and Risk Committee and on the Remuneration Committee to ensure compliance with the Company's corporate governance framework.
Note 8 Events after the reporting period
On 9 September 2024 the Company announced the acquisition through staking of the White Pine Uranium Project in Ontario, Canada. The project covers an area of 8,036 hectares and is situated close to the Trans-Canada Highway. The company initially intends to undertake limited reconnaissance and sampling on the ground as well as a desktop-based assessment of the opportunity, which it expects will amount to approximately £5,000 over the next 6 months; further work thereafter will be determined by the results of this initial assessment.
The directors are not aware of any other material event that occurred after the reporting date and up to the date of this report.
Note 9 Unaudited results
These condensed consolidated interim financial results have not been audited or reviewed by the Group's auditors.
Note 10 Commitments and contingencies
There are no material contingent assets or liabilities as at 30 June 2024.
Note 11 Segment reporting
Segmental disclosure per category
| Mining and exploration | Corporate | Total |
| £ | £ | £ |
30 June 2024 | | |
|
Administrative costs | (25,289) | (150,181) | (175,470) |
Exploration expenditure | (23,001) | - | (23,001) |
Other profit or loss items | (8,568) | (6) | (8,574) |
Loss before tax | (56,858) | (150,187) | (207,045) |
Segmental assets | 1,563 | 256,131 | 257,694 |
Segmental liabilities | 207,552 | 34,864 | 242,416 |
| | | |
30 June 2023 | | | |
Administrative costs | (108,412) | (154,142) | (262,554) |
Exploration expenditure | (26,800) | - | (26,800) |
Other profit or loss items | (51) | (21,689) | (21,740) |
Loss before tax | (135,263) | (175,831) | (311,094) |
Segmental assets | 4,716 | 28,470 | 33,186 |
Segmental liabilities | 245,710 | 90,756 | 336,466 |
| | | |
31 December 2023 |
|
|
|
Administrative costs | (219,532) | (231,008) | (450,540) |
Exploration expenditure | (163,448) | | (163,448) |
Other profit or loss items | 128 | | 128 |
Loss before tax | (382,852) | (231,008) | (613,860) |
Segmental assets | 553 | 15,777 | 16,330 |
Segmental liabilities | (350,554) | (304,064) | (654,618) |
Segmental disclosure per geographical location
| Tanzania | Cyprus | United Kingdom | Total |
| £ | £ | £ | £ |
30 June 2024 | | | | |
(Loss)/profit before tax | (27,756) | (38,153) | (141,136) | (207,045) |
Segmental assets | 1,563 | - | 256,131 | 257,694 |
| | | |
|
30 June 2023 | | | |
|
Profit/(loss) before tax | (31,330) | (106,311) | (173,453) | (311,094) |
Segmental assets | 4,513 | - | 28,673 | 33,186 |
| | | |
|
31 December 2023 | | | |
|
Loss before tax | (45,332) | (224,962) | (343,566) | (613,860) |
Segmental assets | 483 | 71 | 15,776 | 16,330 |
Note 12 Related parties
Relationships
Name Relationship
Kibo Energy plc Significant shareholder
Power Metal Resources plc Significant shareholder of a subsidiary
Board of directors
Louis Coetzee Executive chairman (resigned 28 June 2024)
Sean Wade Non-executive chairman (appointed 29 February 2024)
Patrick Cullen Chief executive officer (appointed 4 July 2024)
Lukas Maree Non-executive director
Louis Scheepers Non-executive director
Myles Champion Non-executive director (resigned 14 June 2023)
Paul Dudley Non-executive director (resigned 14 June 2023)
Related party balances included in: | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| £ | £ | £ |
Trade payables |
|
|
|
Mast Energy Developments PLC - recharge cost | (2,721) | - | (21,140) |
Kibo Energy PLC - recharge cost | - | (6,025) | (38,306) |
| (2,721) | (6,025) | (59,446) |
| | | |
Other financial liabilities | | | |
Power Metal Resources PLC | (198, 078) | (192,250) | (194,040) |
| | | |
Accrued directors' fees payable | | | |
Louis Coetzee | - | (8,878) | (27,000) |
Louis Scheepers | - | (8,878) | (27,000) |
Myles Champion | - | (7,122) | (7,246) |
Paul Dudley | - | (7,246) | (7,246) |
Tinus Maree | - | (8,878) | (27,000) |
| - | (41,002) | (95,492) |
| (200,799) | (239,277) | (348,978) |
| | | |
Related party transactions included in: | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| £ | £ | £ |
Issue of share in lieu of payment of accrued fees | | | |
Kibo Energy PLC - recharge cost | 38,306 | - | - |
Louis Coetzee | 21,206 | 12,000 | - |
Louis Scheepers | 21,206 | 12,000 | - |
Myles Campion | - | 12,000 | - |
Paul Dudley | - | 11,085 | - |
Tinus Maree | 21,206 | 12,000 | - |
Issue of warrants | | | |
Louis Coetzee | - | 1,308 | - |
Louis Scheepers | - | 1,308 | - |
Myles Campion | - | 1,308 | - |
Paul Dudley | - | 1,211 | - |
Tinus Maree | - | 1,308 | - |
| | | |
Related party transactions included in: (continued) | 30 June 2024 | 30 June 2023 | 31 December 2023 |
| £ | £ | £ |
Transactions | - | - | |
Tiaan Coetzee - consulting fees paid | - | - | (1,878) |
Kibo Energy PLC - recharge cost | - | - | (30,403) |
Mast Energy Developments PLC - recharge cost | (8,052) | - | (21,140) |
Sean Wade - director's fees | 13,236 | | |
Louis Coetzee - director's fees | 5,000 | | |
Louis Scheepers - director's fees | 5,000 | | |
Tinus Maree - director's fees | 5,000 | | |
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation.
Transactions with related parties are effected on a commercial basis and related party debts are repayable on a commercial basis.
The transactions during the period between the Company and its subsidiaries included the settlement of expenditure to/from subsidiaries, working capital funding and settlement of the Company's liabilities through the issue of equity in subsidiaries. The loans to/from Group companies do not have fixed repayment terms and are unsecured.
Outstanding director's fees to the value of £81,000 were settled in shares to the value of £63,618, the remaining balance of £17,382 was waived by the directors and reversed against the directors remuneration in the current period.
The "Other financial liabilities" balance owing to Power Metal Resources PLC ('POW') relates to a shareholder loan account in Katoro's subsidiary, Kibo Nickel Ltd, regarding funding contributions from POW to the Haneti Project, in terms of the Haneti JV agreement.
Note 13 Principal risks
The principal risks and uncertainties identified in the last Annual Report of Katoro Gold plc, issued in May 2024, have not materially changed/altered in the interim period.
Note 14 Investment in associates
The investment in associates have been valued on the fair value of the disposal price of the Kibo Gold Limited subgroup to Lake Victoria Gold and is carried at equity accounted value less accumulated impairment.
| £ |
Opening balance at 1 January 2023 | - |
Share in loss of Associate | (1,067) |
Reversal of impairment | 1,067 |
Closing balance at 30 June 2023 | - |
Share in profit of associate | 6,413 |
Impairment loss attributable to associate | (5,986) |
Return of contributions to the investee | (427) |
Closing balance as at 31 December 2023 | - |
Investment in associate | 6,114 |
Share in loss of associate | (449) |
Impairment in associate | (5,665) |
Closing balance at 30 June 2024 | - |
Note 15 Financial instruments - Fair value and risk management
The carrying amount of all financial assets and liabilities approximates the fair value. Directors consider the carrying value of financial instruments of a short-term nature, i.e. those that mature in 12 months or less, to approximate the fair value of such assets or liability classes.
The Group carries no unlisted financial instruments measured in the statement of financial position at fair value as at 30 June 2024, nor in any of the comparative periods.
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