Wrap Text
Results for the Half-Year Ended 31 December 2023
Europa Metals Ltd
(Incorporated and registered in Australia and registered as
an external company in the Republic of South Africa)
(Registration number 4459850)
(External company registration number 2011/116305/10)
Share code on AIM: EUZ
Share code on the JSE: EUZ
ISIN: AU0000014342
("Europa Metals", "the Company" or the "Group")
Results for the Half-Year Ended 31 December 2023
Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce its unaudited
results for the half-year ended 31 December 2023 (the "Half-Year Financial Report").
Please see below extracts from the Half-Year Financial Report, being the:
- Chairman and Interim-CEO's Review
- Review and results of operations
- Consolidated Statement of Profit or Loss and Other Comprehensive Income
- Consolidated Statement of Financial Position
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
A copy of the full Half-Year Financial Report is available on the Company's website at www.europametals.com
and at https://senspdf.jse.co.za/documents/2024/jse/isse/euze/HY2023.pdf.
For further information on the Company, please visit www.europametals.com or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Myles Campion, Executive Chairman and acting CEO (UK)
T: +44 (0)20 3289 9923
Beaumont Cornish (Nominated Adviser/Broker)
James Biddle
T: +44 (0)20 7628 3396
Questco Corporate Advisory Proprietary Limited (JSE Sponsor)
Danielle Christodoulou
T: +27 (11) 011 9216
The information contained within this announcement is deemed by the Company to constitute inside information as
stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue
of the European Union (Withdrawal) Act 2018, as amended.
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.
Key Extracts from the Company's unaudited Half-Year Financial Report are set out below:
Review and results of operations
Europa Metals is a European focused lead, zinc and silver developer.
Operating Results
For the half-year from 1 July 2023 to 31 December 2023, the Group recorded a net loss after tax of A$248,761
(1 July 2022 to 31 December 2022: net loss of A$1,220,449).
The Toral Project is situated in northwest Spain in a world class mining jurisdiction which provides the
opportunity to create new mines within well-established environmental and mining frameworks and with access
to first class power and transport infrastructure. Toral represents a limestone hosted, structurally controlled
deposit with the Pb, Zn, Ag mineralisation situated within the limestone close to the boundary between footwall
slates and hanging wall limestones and dolomites. The mineralisation occurs as semi-massive vein, breccia
and carbonate replacement styles of mineralisation.
The Toral deposit currently has a JORC (2012) compliant indicated mineral resource estimate of approximately
7Mt @ 8.1% Zn Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag, containing approximately
349,000 tonnes of zinc, 260,000 tonnes of lead and 6.6 million ounces of silver. This is contained within a total
mineral resource of 20Mt @ 6.8% Zn Equivalent (including Pb credits), 4.4% Zn, 2.8% Pb and 23 g/t Ag.
On November 23 2022, Europa Metals Ltd entered into a definitive option agreement (the "Toral Definitive
Agreement") with Denarius Metals Corp. ("Denarius") pursuant to which Europa has granted two options to
Denarius to acquire up to an 80% ownership interest in Europa Metals Iberia S.L. ("EMI"), a wholly-owned
Spanish subsidiary of Europa which holds the Toral Zn-Pb-Ag Project.
Pursuant to the Toral Definitive Agreement, Denarius has been granted a First Option, exercisable until
November 22, 2025 (subject to a 90-day extension in certain circumstances), to subscribe for a 51% equity
interest in EMI by:
(i) spending, as operator, a total of USD$4,000,000 on the Toral Project over the three-year period,
(ii) completing a preliminary economic assessment, and
(iii) completing and submitting a mining license application in respect of the Toral Project to the local
mining authority by July 31, 2023.
Mining Licence Application
Formal application for a mining licence has been completed in October 2023 over the Toral Pb, Zn & Ag project.
All necessary studies have now been completed and lodged with the relevant authorities and departments
within the Castille and Leon regional government.
Highlights:
• Submission to the "Junta of Castilla and Leon" completed.
• All necessary documentation covering the exploitation, restoration and environmental impact study
was submitted.
• The submission envisages a life of mine of 15 years, mining on average 700,000t of ore per year from
underground.
• Including pre-production and closure plans, Toral's 18 year operations will create over 360 direct local
employment opportunities and approximately 1,400 indirect jobs in the region.
• This submission has been based on the deposit whose technical, economic and environmental
feasibility is in accordance with the laws and regulations of the region of Castilla y Leon.
• Such project assessment will be formally reported on in the expected preliminary economic
assessment in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM")
Definition Standards incorporated by reference in National Instrument 43-101 expected to be prepared
in 2024.
Exploitation Plan
Due to the subvertical geometry of the Toral deposit and its combination of depth and thickness,
underground mining is considered to be the most technically, economically, and environmentally viable
development option.
Figure 1 General on surface facilities layout distribution can be viewed at:
https://senspdf.jse.co.za/documents/2024/jse/isse/euze/HY2023.pdf
The basis for the development plan utilised the existing JORC resource from November 2022; since the
beginning of 2023 the Company's Spanish engineering group, Mining Sense, has applied many factors to this
Resource such as commodity pricing, base load power costs, dilution factors and trade-off studies with the
objective of reviewing various development scenarios. Based on the work carried out, it was determined that
the extension, volume and ore grades have been duly estimated to define a mineable deposit whose technical,
economic and environmental feasibility is supported by the documentation and in accordance with the laws
and regulations of the region of Castille y Leon. Such project assessment will be formally reported on in the
expected preliminary economic assessment to national Instrument standards 43-101 expected to be published
in 2024.
Drilling
On the 4th August 2023, Europa Metals was pleased to announce the latest assay results from its ongoing
validation and infill diamond drilling programme, being conducted by Explomin Perforaciones UE S.L.
("Explomin"), at the Company's 100% owned Toral Pb, Zn & Ag project ("Toral" or the "Toral Project") in
northwest Spain. This drilling programme forms part of the 2023 exploration campaign agreed between the
Company and Denarius Metals Corp (TSXV:DSLV; OTCQX: DNSRF) ("Denarius") pursuant to the definitive
option agreement dated 22 November 2022, further details of which are set out in the Company's
announcement of 23 November 2022.
In addition, detailed environmental studies are now nearing completion which are required to finalise the formal
submission of the Company's mining licence application to the Mines Department of Castilla y León.
Highlights:
• Assays received in respect of seven drill holes at Toral each reporting significant mineralisation
• Significant intersection from drillhole TOD-044 of 7.95m@4.46% ZnEq(PbAg)*, including:
o 4.25m@6.17% ZnEq(PbAg)*; and
o 1.55m@11.40% ZnEq(PbAg)*
• Significant intersection from drillhole TOD-045 of 4.95m@22.71% ZnEq(PbAg)*
• Significant intersection from drillhole TOD-046 of 1.50m@11.64% ZnEq(PbAg)*, including:
o 1.00m@15.84% ZnEq(PbAg)*
• Two significant intersections from drillhole TOD-047 of 0.6m@18.34% ZnEq(PbAg)* and 2.4m@3.72%
ZnEq(PbAg)*
• Significant intersections from drillhole TOD-048 of 4.7m@6.68% ZnEq(PbAg)*, including:
o 1.65m@14.41% ZnEq(PbAg)*
• A further significant intersection from drillhole TOD-048 of 6.65m@8.12% ZnEq(PbAg)*, including:
o 3.80m@12.58% ZnEq(PbAg)*
• Significant intersection from drillhole TOD-049 of 5.00m@6.91% ZnEq(PbAg)*, including:
o 1.25m@20.93% ZnEq(PbAg)*
• Significant intersections from drillhole TOD-050 of 3.90m@10.30% ZnEq(PbAg)*, including:
o 1.45m@20.69% ZnEq(PbAg)*
• A further significant intersection from drillhole TOD-050 of 2.4m@4.98% ZnEq(PbAg)*
• Holes TOD-045 and TOD-046 have both been completed and reliability of the assay results received
re-confirmed:
o High values of silver were identified in one of the holes and in line with the Company's standard
operating procedures (SOP), we re-submitted the sample for re-testing to confirm its veracity
and also confirmed the accuracy of results for control samples
• All holes to date have been successful in intersecting mineralisation adjacent to an existing, previously
reported, high grade intersection within the project's Indicated Resource block
• Hole TOD-051 is currently nearing completion and comprises the final drillhole for this campaign
• Detailed environmental work is nearing completion in connection with the Company's forthcoming
mining licence application ("MLA") for Toral.
Additional information
The current drilling campaign for a total of up to 7,000m, is focused on a combination of confirmatory and infill
drilling within the project's known indicated resource area outlined to date, of approximately 7Mt @ 8.1% Zn
Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag.
Drilling results
The drilling parameters for the assay results reported for each hole are presented in the table below:
HOLE_ID EASTING NORTHING ELEVATION (m) LENGTH (m) COOR_SYS
TOD-044 681197 4710037 531.65 509 ETRS89utm29
TOD-045 681412 4710025 542.29 610.3 ETRS89utm29
TOD-046 681684 4709858 660.80 866.5 ETRS89utm29
TOD-047 681686 4709856 660.88 460.6 ETRS89utm29
TOD-048 681408 4710024 542.29 529 ETRS89utm29
TOD-049 681685 4709857 660.80 763 ETRS89utm29
TOD-050 681916 4709571 634.10 701.3 ETRS89utm29
All holes were drilled to PQ-HQ-NQ diameter, with half of the core being sent for independent analysis at ALS
Laboratories. The assay results received are set out in the table below:
Hole ID From To Interval (m) Zn_% Pb_% Ag_ppm Cu_% ZnEq(PbAg)%*
TOD-044 490.85 498.80 7.95 2.56 1.73 14.65 0.04 4.46
TOD-044 (including) 490.85 495.10 4.25 3.93 2.06 16.79 0.04 6.17
TOD-044 (including) 492.65 494.20 1.55 8.35 2.76 24.31 0.05 11.40
TOD-045 592.00 596.95 4.95 7.31 12.77 160.52 0.10 22.71
TOD-046 845.50 847.00 1.50 8.30 3.45 12.80 0.04 11.64
TOD-046 (including) 845.50 846.50 1.00 11.08 4.91 18.75 0.06 15.84
TOD-047 442.00 442.60 0.60 15.20 3.30 10.50 0.17 18.34
TOD-047 453.10 455.50 2.40 1.61 1.57 27.69 0.20 3.72
TOD-048 505.25 509.95 4.70 3.53 2.81 26.34 0.31 6.68
TOD-048 (including) 508.30 509.95 1.65 7.94 5.78 53.95 0.51 14.41
TOD-048 513.05 519.70 6.65 4.01 2.75 63.60 0.31 8.12
TOD-048 (including) 515.90 519.70 3.80 6.35 4.14 97.92 0.44 12.58
TOD-049 745.00 750.00 5.00 1.17 6.14 15.63 0.07 6.91
TOD-049 (including) 745.85 747.10 1.25 2.01 20.45 43.96 0.23 20.93
TOD-050 675.00 678.90 3.90 2.24 8.05 40.24 0.03 10.30
TOD-050 (including) 677.45 678.9 1.45 5.76 14.39 91.04 0.07 20.69
TOD-050 680.10 682.50 2.40 1.71 2.67 35.44 0.01 4.98
* - ZnEq(PbAg)% is the calculated Zn equivalent incorporating lead and silver credits; (ZnEq(PbAg)% = Zn + Pb*0.926
+ Ag*0.019). Zn equivalent calculations were based on 3-year trailing average price statistics obtained from the
London Metal Exchange and London Bullion Market Association giving an average Zn price of US$2,680/t, Pb price
of US$2,100/t and Ag price of US$16.2/oz. Significant ZnEq intercepts were generated using a 1% ZnEq trigger
value, minimum width of 1m, maximum consecutive waste interval of 1m and minimum average ZnEq grade of >1%.
Image 1: Hole positions can be viewed at:
https://senspdf.jse.co.za/documents/2024/jse/isse/euze/HY2023.pdf
Drilling operations remain ongoing, in line with the Company's objective set out above, and further assay results
will be announced once processed and received.
The Company had been awaiting re-assays and re-confirmation of the results for several samples, sent to the
laboratory over the past several months, prior to releasing this announcement. In particular, one of the holes
reported an abnormally high silver value (hole TOD-045, average grade of 160.52 Ag g/t) and as part of the
Company's standard operating procedures (SOP) when we receive abnormally high results for either zinc, lead
or silver, we re-submit the relevant sample for re-testing in order to confirm its veracity. We have now confirmed
this value.
In addition, as part of our SOP we regularly insert control samples into the batches that are submitted to the
laboratory, the results of which form part of our statistical analysis to confirm the reliability and consistency of
the results received. We have now received confirmation of these results over several holes and can confirm
their accuracy.
Corporate
Issue of shares to directors
In December 2023, the Company issued 3,500,000 new Ordinary Shares to two directors of the Company
following the conversion of performance rights. The relevant performance milestone conditions for the
performance rights were achieved during the course of the year. Refer to the RNS of 24 January 2023 for further
details.
Change of Nomad and Broker
On 9 October 2023, the Company advised of the appointment of Beaumont Cornish Limited as Nomad and
Broker.
Shareholder Meetings
On 30 November 2023, the Company held its Annual General Meeting whereby all resolutions were duly
approved by shareholders by way of a poll.
Events subsequent to the reporting date
No matters or circumstances have arisen since the reporting date that may significantly affect the operations
of the Company, the results of those operations, or the Company's state of affairs in future financial years.
Daniel Smith
Director
28 March 2024
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2023
6 months to 6 months to
31 December 31 December
2023 2022
Note $ $
Revenue from continuing operations
Other Income 2 277,071 177,279
277,071 177,279
Exploration expenditure (9,315) (853,355)
Foreign exchange (loss)/gain (10,097) (7,553)
Other expenses 2 (506,420) (536,820)
Loss before income tax (248,761) (1,220,449)
Income tax (expense)/benefit - -
Net loss after income tax (248,761) (1,220,449)
Other comprehensive income
Items that may be reclassified subsequently to profit or
loss:
Net exchange (loss)/gain on translation of foreign operation - 34,859
Other comprehensive (loss)/profit for the period, net
of tax - 34,859
Total comprehensive loss for the period (248,761) (1,185,590)
Net (loss) for the period attributable to shareholders of the
Company: (248,761) (1,220,449)
(248,761) (1,220,449)
Total comprehensive (loss) for the period attributable to
shareholders of the Company: (248,761) (1,185,590)
(248,761) (1,185,590)
Cents per Cents per
Loss per share share share
- basic (loss) per share (0.26) (1.48)
- diluted (loss) per share (0.26) (1.48)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the accompanying notes in the full Half-Year Financial Report.
Consolidated Statement of Financial Position as at 31 December 2023
31 December 30 June
2023 2023
Note $ $
Current Assets
Cash and short-term deposits 488,964 653,990
Trade and other receivables 3 13,481 23,179
Total Current Assets 502,445 677,169
Total Assets 502,445 677,169
Current Liabilities
Trade and other payables 112,451 118,902
Total Current Liabilities 112,451 118,902
Total Liabilities 112,451 118,902
NET ASSETS 389,994 558,267
Equity
Contributed equity 6 49,562,236 49,391,945
Accumulated losses (52,472,831) (52,224,070)
Reserves 3,300,589 3,390,392
TOTAL EQUITY 389,994 558,267
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes in the full Half-Year Financial Report.
Consolidated Statement of Changes in Equity for the half-year ended 31 December 2023
Employee
Share Foreign
Issued Accumulated Incentive Option Exchange Total
Capital Losses Reserve Reserve Reserve Equity
$ $ $ $ $ $
At 1 July 2022 48,227,649 (48,843,673) 567,997 2,720,044 62,558 2,734,575
(Loss) for the period - (1,220,449) - - - (1,220,449)
Other comprehensive income (net of tax) - - - - 34,859 34,859
Total comprehensive loss (net of tax) - (1,220,449) - - 34,859 (1,185,590)
Transaction with owners in their capacity as
owners
Shares issued net of transaction costs 1,033,155 - - - - 1,033,155
Shares issued to management 55,351 - (76,420) - - (21,069)
Shares to be issued - - 62,702 - - 62,702
Options issued to directors and management - - - 16,355 - 16,355
At 31 December 2022 49,316,155 (50,064,122) 554,279 2,736,399 97,417 2,640,128
At 1 July 2023 49,391,945 (52,224,070) 595,010 2,795,382 - 558,267
(Loss) for the period - (248,761) - - - (248,761)
Other comprehensive income (net of tax) - - - - - -
Total comprehensive loss (net of tax) - (248,761) - - - (248,761)
Transaction with owners in their capacity as
owners
Performance shares issued - - 66,859 - - 66,859
Conversion of performance rights 170,291 - (170,291) - - -
Options issued to directors and management - - - 13,629 - 13,629
At 31 December 2023 49,562,236 (52,472,831) 491,578 2,809,011 - 389,994
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes in the full Half-Year Financial Report.
Consolidated Statement of Cash Flows for the half-year ended 31 December 2023
6 months to 31 6 months to 31
December 2023 December 2022
$ $
Cash flows from operating activities
Receipts from associate 277,071 -
Payments to suppliers and employees (323,677) (399,487)
Payment for exploration and evaluation costs (107,254) (822,588)
Net cash flows used in operating activities (153,860) (1,222,075)
Cash flows from financing activities
Lease principal repayments - (16,601)
Proceeds from issue of shares - 1,033,155
Net cash flows from financing activities - 1,016,554
Net increase / (decrease) in cash and cash
equivalents (153,860) (205,521)
Cash and cash equivalents at beginning of period 653,990 1,650,056
Effect of foreign exchange on cash and cash equivalents (11,166) 6,777
Cash and cash equivalents at end of the period 488,964 1,451,312
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying
notes in the full Half-Year Financial Report.
Short-form announcement
This short-form announcement is the responsibility of the Directors of the Company and is a summary
of the information in the full announcement and does not contain full or complete details. The full
announcement may be downloaded from:
https://senspdf.jse.co.za/documents/2024/jse/isse/euze/HY2023.pdf
or from the Company's website at www.europametals.com
Any investment decision by investors and/or shareholders should be based on consideration of the full
announcement. Copies may be requested from the Company and the Johannesburg office of the
Company's JSE Sponsor at no charge during business hours for a period of 30 calendar days following
the date of this announcement.
On behalf of the Board
United Kingdom
28 March 2024
JSE Sponsor to Europa Metals
Questco Corporate Advisory Proprietary Limited
Date: 28-03-2024 09:00:00
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