Wrap Text
Results for the Half-Year Ended 31 December 2022
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 the ASX: EUZ
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 2022
Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce its unaudited
results for the half-year ended 31 December 2022 (the “Half-Year Financial Report”).
Please see below extracts from the Half-Year Financial Report, being the:
- Chairman and Interim-CEO’s Statement
- Directors’ Report
- 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/2023/jse/isse/euze/HY2022.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
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler/Abigail Wennington
T: +44 (0)20 7409 3494
WH Ireland Limited (Broker)
Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather
T: +44 (0)20 7220 1666
Questco Corporate Advisory Proprietary Limited (JSE Sponsor)
Sharon Owens
T (direct): +27 (11) 011 9212
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, by virtue of the Market Abuse (Amendment) (EU Exit)
Regulations 2019.
Key Extracts from the Company’s unaudited Half-Year Financial Report are set out below:
Chairman and Interim-CEO’s Statement
During the reporting period and subsequently, we have continued with our exploration and development
activities to advance our understanding of the Company’s wholly-owned Toral lead, zinc and silver project in
the Castilla y Léon region, Spain (“Toral” or the “Toral Project”) as a potential future low capex, high margin,
base metals mine within the EU benefitting from the ongoing support of regional governments and local
communities.
The Company’s latest metallurgical testwork programme, undertaken by Wardell Armstrong Ltd (“WAI”),
achieved excellent results released in August 2022 on material from both the upper siliceous zone and the
lower carbonate zone. Both lead and zinc recoveries to respective concentrates were very positive. The grades
achieved for both zinc and lead were better than previous results with the siliceous showing that the upper
levels can also produce a high-grade concentrate.
In November 2022, we announced assay results from our targeted 2022 diamond drill resource expansion
campaign conducted by “Sondeos y Perforaciones Industriales del Bierzo SA” at Toral. Hole TOD-042
intersected the highest grade mineralisation to be reported by Europa Metals to date for Toral and over a
significant width. Both holes TOD-041 and TOD-042, taken in conjunction with nearby previous drilling,
provided additional support and confidence for our current resource model and continuity of the high grade
nature of the deposit at depth.
On the back of the latest drill campaign results, the Company commissioned an updated independent mineral
resource estimate in accordance with JORC (2012) from Addison Mining Services Limited, which yielded a
19% increase in the Indicated mineral resource and a 14% increase in grade. This positive result will enable
our project team to utilise a substantial tonnage of independently reported Indicated resources in the mine plan
for the forthcoming mining licence application (“MLA”) scheduled to be submitted by 31 July 2023 to the Junta
of Castilla y Léon.
In late November 2022, we were also delighted to announce the signing of a definitive option agreement with
Denarius Metals Corp. (TSXV: DSLV, OTCQB: DNRSF) (“Denarius”). Pursuant to such agreement, which was
approved by the Company’s shareholders at a general meeting held on 30 December 2022, Denarius has the
right to acquire up to 80 per cent. ownership in the Company’s wholly owned Spanish subsidiary, Europa
Metals Iberia S.L. (“EMI”), which holds the Toral Project, in return for funding and certain expenditure on the
project and certain consideration of up to, in aggregate, US$6,000,000 over a four year period.
Most recently, on 22 March 2023, the Company announced that an initial budget for planned expenditure on
Toral of approximately US$1.8m had been agreed with Denarius for a 12 month period and confirmed that, in
aggregate, an initial sum of US$650k had been received from Denarius to facilitate our planned MLA and
enable timely completion of the planned initial work programme.
As well as progressing our flagship project, our team has continued to actively identify, evaluate and engage
with third parties with respect to our search for suitable additional assets and new project opportunities with
the potential to deliver value for all of our stakeholders.
Myles Campion
Executive Chairman and Interim-CEO
31 March 2023
Directors’ Report
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 2022 to 31 December 2022, the Group recorded a net loss after tax of A$1,220,449
(1 July 2021 to 31 December 2021: net loss of A$1,357,379).
Toral Lead-Zinc-Silver Project, Spain (“Toral” or the “Toral Project”)
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.
Currently, the Company is progressing Toral towards potential mine development with a mining licence
application due for submission by 31 July 2023.
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.
During the reporting period, Europa Metals was pleased to announce the signing of a definitive option
agreement with Canadian explorer and mine developer Denarius Metals Corp (TSXV:DSLV; OTCQB: DNSRF)
(“Denarius”) whereby Denarius will spend US$4m to earn a 51% stake in Europa Metals Iberia S.L. (“EMI”),
Europa Metals’ wholly-owned Spanish subsidiary and owner of the Toral Project.
During the reporting period, Europa Metals’ team has completed several important work programmes to
enhance our understanding of Toral, namely:
• completion of metallurgical testwork in conjunction with the completed ore-sorting programme;
• a targeted resource drilling campaign with the highest grade drill results to date; and
• publication of an independent updated JORC (2012) mineral resource estimate.
Updated Mineral Resource Estimate
On 30 November 2022, the Company announced an updated independent mineral resource estimate (“MRE”),
for Toral. The updated MRE showed a 19% increase in the Indicated Mineral resource tonnes and a 14%
increase in grade. In summary, the updated MRE represented an approximate:
• 19% increase in Indicated Mineral Resource tonnes;
• 39% increase in Indicated contained tonnes of zinc to approximately 349,000 tonnes;
• 33% increase in Indicated contained tonnes of lead to approximately 260,000 tonnes; and
• 27% increase in Indicated contained ounces of silver to approximately 6.6 million ounces.
Image 1: 3-D Block Model looking North can be viewed at the following link:
https://senspdf.jse.co.za/documents/2023/jse/isse/euze/HY2022.pdf.
Metallurgical work programme
On 4 August 2022, the Company announced further highly encouraging results from its comprehensive
metallurgical testwork programme, summarised as follows:
• Metallurgical testwork results received from Wardell Armstrong International Ltd (“WAI”) in respect of
locked cycle flotation tests (“LCT”) on products from an ore sorted bulk siliceous sample:
o Concentrate Grades 56.6% Zinc 69.6% Lead
o Overall recovery (Sort & Float) 78.6% Zinc 80.7% Lead
• Metallurgical results received for LCT from WAI on a further two carbonate samples from:
Hole TOD-025D:
o Concentrate Grades 57.4% Zinc 75.2% Lead
o Overall recovery (Sort & Float) 81.4% Zinc 94.4% Lead
Hole TOD-028:
o Concentrate Grades 60.3% Zinc 64.1% Lead
o Overall recovery (Sort & Float) 84.0% Zinc 87.3% Lead
Ore sorting process
Samples from Ore Sorting undertaken by Tomra GmbH, were submitted to WAI earlier in 2022. The samples
tested were a bulk sample of siliceous style mineralisation and two borehole composites of carbonate style
mineralisation. The siliceous sample was a composite of intersections from boreholes TOD-029, TOD-029D,
TOD-029D2, TOD-029D3, TOD-034 and TOD-034D (a total of 701.09 kg). The carbonate samples were taken
from boreholes TOD-025D and TOD-028 (96.36 kg and 50.7 kg respectively).
The ore sorting results announced previously by the Company in March 2022 were as follows:
Siliceous bulk sample
• Recovery of 95.7% Pb and 94.3% Zn metal
• 43.7% mass rejection of waste
Carbonate composite from hole TOD-025D
• Recovery of 98.9% Pb and 94.7% Zn metal
• 46.8% mass rejection of waste
Carbonate composite from hole TOD-028
• Recovery of 96.6% Pb and 96.1% Zn metal
• 47.7% mass rejection of waste
The sorter products were the subject of a recently completed campaign of locked cycle flotation with the
metallurgical results received from WAI comprising:
• Siliceous bulk sample
o Flotation Recoveries 83.4% Zinc 84.3% Lead
o Flotation Concentrate Grades 56.6% Zinc 69.6% Lead
o Overall recovery (Sort & Float) 78.6% Zinc 80.7% Lead
• Carbonate sample from hole TOD-025D
o Flotation Recovery 85.9% Zinc 95.4% Lead
o Flotation Concentrate Grades 57.4% Zinc 75.2% Lead
o Overall recovery (Sort & Float) 81.4% Zinc 94.4% Lead
• Carbonate sample from hole TOD-028
o Flotation Recovery 87.4% Zinc 90.3% Lead
o Flotation Concentrate Grades 60.3% Zinc 64.1% Lead
o Overall recovery (Sort & Float) 84.0% Zinc 87.3% Lead
Comparison with the 2019 locked cycle flotation tests on carbonate drill core
Locked cycle flotation tests simulate a full-scale plant flowsheet. Each test at WAI’s facilities was conducted
in a series of six cycles using the flowsheet shown in Figure 1 below. For the second and subsequent cycles,
lead and zinc cleaner tailings products were combined with the feed to the previous stage of flotation. For
example, lead second cleaner tails were returned to first cleaner feed. The final concentrates, zinc scavenger
tailings and zinc rougher tailings from the final two cycles, were weighed and sent for independent analysis.
The results were then used to calculate recovery and concentrate grades.
Figure 1: Locked Cycle Test Flowsheet can be viewed on the following link:
https://senspdf.jse.co.za/documents/2023/jse/isse/euze/HY2022.pdf.
Results of the 2019 and 2022 testwork programmes are summarised in Table 1 below. These results indicate
that Toral could clearly achieve excellent concentrate grades.
Table 1: Summarised Results of the 2019 and 2022 Testwork
(Note: recovery and concentration data are from the original feed)
Test Lead Concentrate Zinc Concentrate
Lead CR Conc Zinc CR Conc
Recovery (% Pb) Recovery (% Zn)
(%) (%)
2019 Carbonate 84.3 39.4 57.5 70.7 29.8 55.8
LCT1 Float
2019 Carbonate 83.7 34.9 60.0 77.0 24.9 59.1
LCT2 Float
2022 94.4 18.8 75.2 81.4 42.3 57.4
Carbonate 025D
Sort + Float
2022 87.3 51.4 64.1 84.0 24.0 60.3
Carbonate 028
Sort + Float
2022 Silicate 80.7 59.7 69.6 78.6 52.9 56.6
Sort + Float
Ore sorting and froth flotation are processes that concentrate and recover metal values. The concentration
ratio (“CR”) is defined as the weight of feed divided by the weight of concentrate. Performance of an individual
test can be judged in terms of recovery and CR. For an operating plant, daily results for recovery and CR
continually vary. However, the results generally form a trend when plotted on axes of recovery versus CR.
The same type of plot can be useful in comparing locked cycle test results.
Figure 2: Zinc Recovery vs Concentration Ratio Plot of LCT Results can be viewed at the following link:
https://senspdf.jse.co.za/documents/2023/jse/isse/euze/HY2022.pdf.
Overall results for zinc recovery (for 2022, sort & float and for 2019, just float) are shown in Figure 2. At any
given CR, higher recovery indicates improved performance, and figure 2 illustrates that the combined sort plus
float procedure has given better performance than flotation alone for the zinc concentrate.
In respect of the 2022 results, the best estimate of zinc recovery is the trendline shown in Figure 2, which is “a
least squares fit” for the three different testwork data points. This line intersects the recovery axis at 89.7%.
This intercept incorporates for zinc metal losses during the sorting process of 3.9% and also a recovery loss
during the flotation process of a further 6.4% of zinc to lead concentrate.
The equation of the trend line is as follows:
Recovery % = 89.7 - (0.21 * CR)
In practice, when a full-scale plant and concentrator are in operation the aim is to produce a saleable zinc
concentrate grade of approximately 55% to 60% Zn. To achieve this target concentrate grade, the required
concentration ratio (and achievable recovery) depends mainly on the headgrade from the deposit.
At Toral, the average resource grade (October 2021 Resource Estimate, @ 4% Zn equivalent cut off) is 3.9%
zinc, such that a future potential processing plant could operate at a CR of 17 to zinc concentrate, which would
achieve a zinc recovery of 86.1% and a concentrate grade of 57.1% zinc.
An approximate estimate of the zinc recovery improvement resulting from sorting can be made from Figure 2.
Projecting the two points from the 2019 testwork back to a CR of 17 and then comparing with the best estimate
of recovery trendline indicates a recovery improvement of approximately 4 percentage points.
Figure 3: Lead Recovery vs Concentration Ratio Plot of LCT Results can be viewed at the following link:
https://senspdf.jse.co.za/documents/2023/jse/isse/euze/HY2022.pdf.
Overall results for lead recovery (for 2022, sort & float and for 2019, just float) are shown in Figure 3, with the
combined sort plus float procedure again giving better performance than flotation alone.
In respect of the 2022 results, the best estimate of lead recovery is the trendline shown in Figure 3, which is “a
least squares fit” for the three testwork data points, intersecting the recovery axis at 97.4%. This intercept
allows for the average loss of lead during sorting of 2.6% and the equation of the trend line is as follows:
Recovery % = 97.4 - (0.24 * CR)
In practice, a concentrator would seek to produce a saleable lead concentrate grade of approximately 70%
lead. The average resource grade at Toral (October 2021 Resource Estimate) is 2.7% lead, such that a CR of
29 to lead concentrate would be required to achieve a lead recovery of 90.4% and a concentrate grade of
70.8% lead.
An approximate estimate of the lead recovery improvement resulting from sorting can be made from Figure 2.
Projecting the two points from the 2019 testwork back to a CR of 29 and then comparing with the best estimate
of recovery trendline indicates a recovery improvement of approximately 3 percentage points.
In summary, the Europa Metals’ team believes that ore sorting followed by flotation has significant cost,
performance and operational advantages compared with flotation alone.
The Company will now consider how best to utilise ore sorter rejects and flotation tailings. These waste
products will be valuable as potential cemented aggregate backfill and paste fill for underground mining
operations. Some tailings products could also be used as landfill for reclamation of an existing quarry.
Analysis of Final Concentrates Produced in the 2022 Locked Cycle Testwork
Final zinc and lead concentrates from the 2022 testwork were sent for detailed chemical analyses. The
analyses for commonly applied penalty elements are shown in Table 2 below. The concentrates were generally
below penalty levels except for mercury. High mercury levels are common for Spanish zinc concentrates and
local smelters are able to manage such feeds. As an alternative, a future plant at Toral could incorporate a
concentrate treatment process in order to reduce the mercury to below penalty levels.
Table 2: Penalty Element Analyses of Concentrates Produced in the 2022 testwork
Concentrate As Bi Cd Fe Mg Mn Hg F (ppm)
From (ppm) (ppm) (ppm) (%) (%) (ppm) (ppm)
Testwork
Siliceous 513 2.6 87 4.32 0.08 80 234 120
Lead Conc
Siliceous 104 0.2 1,325 2.72 0.06 120 2,970 40
Zinc Conc
Carbonate 80 2.6 60.8 1.04 0.29 60 96 <20
025D Lead
Conc
Carbonate 33 0.1 1,445 1.83 0.28 70 1,745 30
025D Zinc
Conc
Carbonate 212 7.9 177.5 5.6 0.17 60 197 30
028 Lead
Conc
Carbonate 16 0.1 1,635 1.75 0.08 50 1,085 20
028 Zinc
Conc
Penalty 2,000 200 2,500 8% 0.18 5,000 50 200
Level for %
Zinc Conc
Drilling Results
In November 2022, the Company announced the completion of its latest diamond drilling programme. The
drilling campaign aimed to expand on the pre-existing indicated resource envelope of 5.9Mt @ 7.1% ZnEq
(including Pb credits) and 27 g/t Ag at depth. Hole TOD-042 intersected the highest grade mineralisation to be
reported by Europa Metals to date at Toral and over a significant width. The two holes (TOD-041 and TOD-
042) taken in conjunction with nearby previous drilling provided both support and confidence to our current
resource model and the continuity of the high grade nature of the deposit at depth.
The drilling parameters for the assay results reported for hole TOD-042 are presented in the table below:
HOLE_ID EASTING NORTHING ELEVATION LENGTH COOR_SYS
TOD-042 681864 4710064 601.473 876.5 ETRS89utm29
Hole TOD-042 was drilled with a 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 Zn_% Pb_% Ag_ppm Cu_% ZnEq(PbAg)%*
(m)
TOD-042 866.35 871.6 5.25 17.87 4.46 55.69 0.03 23.24
TOD-042 868.7 871.2 2.50 36.82 5.77 101.01 0.05 44.55
(included)
* - 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 Zn Eq intercepts were generated using a 1% Zn Eq trigger value, minimum width of 1m,
maximum consecutive waste interval of 1m and minimum average Zn Eq grade >2%.
The image can be viewed at the following link: can be viewed on the following link:
https://senspdf.jse.co.za/documents/2023/jse/isse/euze/HY2022.pdf.
The cross section image above illustrates the positioning of hole TOD-042. The high grade nature of the
intersection is consistent with our current resource model and provides further support for extending the known
estimated indicated resource at that depth.
CDTI Loan Funding
On 19 October 2020, the Company announced that following an extensive submission process, an interest-
free loan by way of a grant of €466,801.50 (the “Grant”) had been awarded to the Company by the Centre for
the Development of Industrial Technology (“CDTI”) for use towards research and development (“R&D”) at Toral.
The CDTI is a public business entity in Spain, under the auspices of the Ministry of Science and Innovation,
which fosters the technological development and innovation of Spanish companies. The Grant is categorised
as a partly refundable loan (with a nil per cent. interest rate) with the funds received to be allocated towards
the development of R&D technologies relating to the recording and correction of drillhole deviation at the Toral
Project. Application for the Grant was made by Europa Metals and the AIR Institute, linked to the Salamanca
University, inconjunction with drilling contractors Sondeos y Perforaciones Industriales de Bierzo SA (“SPI”).
The Grant monies are drawable in up to three tranches, with the prior agreement of the CDTI, with the initial
tranche, comprising an amount of €163,380 (A$261,872), received by the Company towards the end of 2020.
The second tranche of €158,629 (A$241,554) was received during the previous reporting period. The Company
has submitted a request to drawdown the remaining third tranche, and awaits approval. The core objectives of
the Innovation Programme were to retrieve and process data from Toral’s drilling campaigns in order to develop
algorithmic software for use in exploration campaigns to correct drilling deviation. Biannual repayments of
€21,822 (A$33,230) begin in 2024, running for 7 years until 2031, with a fixed interest rate of nil per cent.
Accordingly, on 8 November 2021, the Company announced that the CDTI had approved the requisite work
documentation submitted in relation to the Stage 1 milestone and that the Company had therefore drawn down
and received the second tranche of the Grant being €158,629 (A$241,554).
Stage 2 involved Toral continuing to be used as a live testing environment by the partnership as the University
of Salamanca continued its analysis and any future commercial benefit from an eventual product will be shared
by the partners. The Stage 2 work was completed post the reporting period end such that the third, and final,
tranche of €144,792 (A$220,483) should be made available for draw down following a review by the CDTI and
its confirmation that the requisite criteria of the innovation programme have been met.
Once the funds advanced have demonstrably been spent on appropriate R&D exploration activity at the Toral
Project by the Company, 70 per cent. of the total Grant will be repayable with the balancing 30 per cent. then
not required to be repaid.
Corporate
Definitive Agreement with Denarius Metals Corp. (“Denarius”)
On 23 November 2022, the Company announced that, further to its announcement of 5 October 2022, it had
entered into a definitive option agreement (the “Option Agreement”) with Denarius.
Pursuant to the Option Agreement, conditional on, inter alia, the approval of Europa Metals' shareholders
(which was obtained at a general meeting held on 30 December 2022), Denarius has the right to acquire in
two stages up to an 80 per cent. ownership interest in the Company's wholly owned Spanish subsidiary, EMI,
which holds the Toral Project.
Key Terms of the Definitive Agreement
The agreement involved the formation of a joint venture via EMI between Denarius and Europa Metals for the
development of Toral, which covers both the project’s existing and any expanded investigation permit area and
potentially the adjacent historic Antonina Mine area, the former licence for which is currently terminated by the
Junta de Castilla y León (the “Junta”). In return for funding certain expenditure on the project and consideration
of up to, in aggregate, US$6,000,000, Denarius will be afforded the exclusive right to acquire up to an 80 per
cent. interest in the Toral Project by way of a two-stage option arrangement.
Subsequent to Europa Metals’ shareholders approving the transaction an initial US$100,000 payment became
due to the Company which is included in receivables as at 31 December 2022. This payment was subsequently
received in January 2023.
Capital Raising
On 8 August 2022, the Company issued 906,265 shares at a blended issue price of approximately 3.64 pence
per share to settle deferred/accrued remuneration for certain of the Company’s directors totalling A$58,420.
On 23 November 2022, the Company announced that it had conditionally raised, in aggregate, gross proceeds
of £0.58 million (A$1.03 million) through the subscription of 12,888,888 new ordinary shares by certain
institutional and other investors at a price of 4.5 pence per share (the “Subscription”). The Subscription price
represented a 60.7 per cent premium to the then last traded price of the Company’s shares on AIM.
Shareholder Meetings
On 30 November 2022, the Company held its Annual General Meeting whereby all resolutions were duly
approved by shareholders by way of a poll.
On 30 December 2022, the Company held a General Meeting whereby a resolution in respect of the grant of
a two stage option for the disposal of a majority interest in the Toral Project to Denarius was duly approved
by shareholders by way of a poll.
Events subsequent to the reporting date
On 24 January 2023, the Company announced, further to its announcement of 26 January 2022, the conversion
by certain of its directors of an aggregate amount of £42,880 (A$62,702) of deferred/accrued remuneration for
the six month period ended 31 December 2022 into new ordinary shares of no par value in the capital of the
Company (the “Fee Conversions”). Pursuant to the Fee Conversions, the Company issued, in aggregate,
1,245,988 new ordinary shares at a blended issue price of approximately 3.44 pence per share.
On 24 January 2023, the Company also announced that it had issued, in aggregate, 2,000,000 options
exercisable in three tranches to two of the Company’s Directors, Daniel Smith and Myles Campion (or their
nominees). In addition, a total of 3,500,000 performance rights (“Performance Rights”) were issued to Myles
Campion and Daniel Smith. The Performance Rights are exercisable for nil consideration and are subject to
various performance milestone conditions and expiry dates relating to specific share-price hurdles and the
continued development of Toral.
On 22 March 2023, the Company announced that an initial budget for planned expenditure on the Toral Project
of approximately US$1.8m for a 12 month period had recently been agreed between the Company and its joint
venture (“JV”) partner, Denarius. The budget will principally be applied to a combination of confirmatory and
infill drilling utilising up to two rigs. In addition, further to the receipt of shareholder approval in respect of the
definitive option agreement in relation to the JV at a general meeting of the Company held on 30 December
2022, a sum of US$100,000 had been paid to EMI, which had facilitated the advancement of the planned
mining licence application. Following a successful capital raising by Denarius earlier in March 2023, a further
US$550,000 had recently been advanced to EMI by Denarius to enable timely completion of the planned initial
work programme in accordance with the timeframe set out under the definitive agreement.
No other 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
31 March 2023
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2022
6 months to 6 months to
31 December 31 December
2022 2021
Note $ $
Revenue from continuing operations
Other Income 2 177,279 -
177,279 -
Exploration expenditure (853,355) (711,643)
Foreign exchange (loss)/gain (7,553) 22,477
Other expenses 2 (536,820) (668,213)
Loss before income tax (1,220,449) (1,357,379)
Income tax (expense)/benefit - -
Net loss after income tax (1,220,449) (1,357,379)
Other comprehensive income
Items that may be reclassified subsequently to profit or
loss:
Net exchange (loss)/gain on translation of foreign operation 34,859 8,844
Other comprehensive (loss)/profit for the period, net
of tax 34,859 8,844
Total comprehensive loss for the period (1,185,590) (1,348,535)
Net (loss) for the period attributable to shareholders of the
Company: (1,220,449) (1,357,379)
(1,220,449) (1,357,379)
Total comprehensive (loss) for the period attributable to
shareholders of the Company: (1,185,590) (1,348,535)
(1,185,590) (1,348,535)
(Loss) per share attributable to the ordinary equity holders of the Company
Cents per Cents per
Loss per share share share
- basic (loss) per share (1.48) (2.31)
- diluted (loss) per share (1.48) (2.31)
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 2022
31 December 30 June
2022 2022
Note $ $
Current Assets
Cash and short-term deposits 1,451,312 1,650,056
Trade and other receivables 3 418,356 85,420
Total Current Assets 1,869,668 1,735,476
Non-current Assets
Plant and equipment 37,270 46,877
Other receivables - 63,018
Right of use assets 42,292 42,292
Capitalised exploration 4 1,268,953 1,229,196
Total Non-current Assets 1,348,515 1,381,383
Total Assets 3,218,183 3,116,859
Current Liabilities
Trade and other payables 348,581 139,119
Lease liabilities 22,796 22,796
Unearned income - 20,937
Total Current Liabilities 371,377 182,852
Non-current Liabilities
Lease liability 1,462 12,507
Borrowings 5 205,216 186,925
Total Non-current Liabilities 206,678 199,432
Total Liabilities 578,055 382,284
NET ASSETS 2,640,128 2,734,575
Equity
Contributed equity 6 49,316,155 48,227,649
Accumulated losses (50,064,122) (48,843,673)
Reserves 3,388,095 3,350,599
TOTAL EQUITY 2,640,128 2,734,575
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 2022
Employee
Share Foreign
Issued Accumulated Incentive Option Exchange Total
Capital Losses Reserve Reserve Reserve Equity
$ $ $ $ $ $
At 1 July 2021 45,695,303 (46,380,604) 491,577 2,520,528 102,048 2,428,852
(Loss) for the period - (1,357,379) - - - (1,357,379)
Other comprehensive income (net of tax) - - - - 8,844 8,844
Total comprehensive loss (net of tax) - (1,357,379) - - 8,844 (1,348,535)
Transaction with owners in their capacity as
owners
Shares issued net of transaction costs 2,532,346 - - - - 2,532,346
Options issued to directors and management - - - 28,848 - 28,848
Options issued to brokers and corporate advisers - - - 154,314 - 154,314
At 31 December 2021 48,227,649 (47,737,983) 491,577 2,703,690 110,892 3,795,825
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
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 2022
6 months to 31 6 months to 31
December 2022 December 2021
$ $
Cash flows from operating activities
Payments to suppliers and employees (399,487) (567,590)
Payment for exploration and evaluation costs (822,588) (890,067)
Net cash flows used in operating activities (1,222,075) (1,457,657)
Cash flows from investing activities
Payments for plant and equipment - (616)
Net cash flows used in investing activities - (616)
Cash flows from financing activities
Lease principal repayments (16,601) (12,853)
Proceeds from issue of shares 1,033,155 2,760,272
Costs of capital raising - (138,369)
Proceeds from borrowings - 251,705
Net cash flows from financing activities 1,016,554 2,860,755
Net increase / (decrease) in cash and cash
equivalents (205,521) 1,402,482
Cash and cash equivalents at beginning of period 1,650,056 1,180,768
Effect of foreign exchange on cash and cash equivalents 6,777 (58,220)
Cash and cash equivalents at end of the period 1,451,312 2,525,030
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/2023/jse/isse/euze/HY2022.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
31 March 2023
JSE Sponsor to Europa Metals
Questco Corporate Advisory Proprietary Limited
Date: 31-03-2023 08:09:00
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