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Availability of audited 2018 annual financial statements
Europa Metals Ltd
(Formerly Ferrum Crescent Limited)
(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
(“the Company”)
Final Results for the Year Ended 30 June 2018
Europa Metals, the European lead-zinc explorer, announces its final results for the year
ended 30 June 2018.
A PDF copy of the full Annual Report and Accounts is available for viewing on the following
link: http://www.europametals.com/site/news-announcements/annual-reports-archive and will be
posted to Shareholders in due course.
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
Laurence Read, Executive Director (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker
T: +44 (0)20 3621 4120
Sasfin Capital Proprietary Limited (a member of the Sasfin group)(JSE Sponsor)
Sharon Owens
T (direct): +27118097762
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams/Duncan Vasey/Heena Karani
T: +44 (0)20 7469 0930
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.
Extracts from the Company's audited Report and Accounts are set out below:
Introduction to the Group
Europa Metals Ltd ("Europa Metals", "EUZ" or the "Company") is an Australian company
listed on the Australian Securities Exchange (ASX: EUZ) and on the JSE Limited (JSE:
EUZ) and quoted on the AIM market of the London Stock Exchange plc (AIM: EUZ). During
the year, the Company undertook operational restructuring which, post period led to the
divestment of its South African iron ore operations, and now sees the Company focused on
Spanish lead-zinc operations.
In carrying out its operations during the reporting period, the Group incurred a loss after
income tax for the period from 1 July 2017 to 30 June 2018 of $1,883,446 (2017: loss of
$11,286,803). The Group had net assets of $2,484,371 (2017: $1,570,393) as set out in the
Statement of Financial Position.
Review of operations and activities
On 3 July 2017, the Company announced that it had disposed of Batavia Ltd, its wholly-
owned Mauritian subsidiary which held all of the Group’s South African assets, including the
Moonlight Iron Ore Project in Limpopo Province, northern South Africa. The disposal
effectively ended the Group’s exposure to all of the costs and commitments associated with
maintaining the Moonlight Project in good standing and enabled the Company to focus its
resources on its portfolio of European lead-zinc-silver exploration assets.
Lead-Zinc-Silver Exploration Projects, Spain
On 28 July 2017, the Company announced the initial results from its drilling programme at
the Toral Project, Spain. The near surface drilling campaign at the project, designed to
determine the presence of near surface mineralisation, returned core containing visible lead-
zinc from every one of the 6 drill holes completed. The Company announced the results of
the drill programme assays on 7 September 2017, which confirmed the presence of lead-
zinc intersections in all six holes with significant high grade lead-zinc intersections in all of
the six holes. Highlights included:
- All of the 1,046.9m drilled occurred within 200 metres of the surface.
- Intersection of lead-zinc anomalies in all six drill holes.
- Key intersections encountered (all widths given along the core):
Hole TOR17009 1 metre grading at 1.22%Pb, 9.77%Zn (10.99% combined Pb/Zn);
Hole TOR17012 3 metres grading at 0.64%Pb, 6.46%Zn (7.10% combined Pb/Zn);
Hole TOR17012 1 metre grading at 0.67%Pb, 16.10%Zn (16.77% combined Pb/Zn);
Hole TOR17013 1 metre grading at 6.51%Pb, 6.50%Zn (13.01% combined Pb/Zn); and
Hole TOR17013 3 metres grading at 6.03%Pb, 5.49%Zn (11.52% combined Pb/Zn).
On 22 November 2017, the Company announced that, following a formal application to the
Director General of Mines of the Province of Leon, the exploration licence in respect of the
Group’s Toral lead-zinc project had been renewed for a further 3 year term to November
2020.
On 11 December 2017, the Company provided an update on its work programme to define a
maiden JORC (2012) compliant resource estimate for Toral. As part of this programme,
Addison Mining Services Limited (“AMS”) had successfully undertaken a site visit, including
data location checks, data collection and analytical review procedures, including check
sampling for the purpose of verification and validation of the project’s database for use in
JORC 2012 compliant modelling and estimation. The maiden JORC (2012) compliant
resource estimate was expected to be received in early 2018.
On 6 February 2018, the Company announced a Maiden independent Inferred Mineral
Resource estimate completed in accordance with JORC (2012) in respect of the Toral
Project, Spain. A new block model combined with an initial digital geological model had
increased the level of understanding of the mineralogical and geological controls at Toral,
and the Company expressed confidence in being able to enhance and potentially expand
the resource going forwards, subject to undertaking additional drilling and exploration
activities.
Maiden JORC (2012) Independent Resource Estimate, Toral Project
The Inferred resource for the Toral Pb-Zn-Ag mineralisation located on the Toral property
had been estimated at various cut-offs (see Table below). The Company had reviewed the
new model with AMS, and concluded that a 4% cut-off was appropriate utilising estimated
mining parameters typical for similar types of projects and mineralogy, and a historical three-
year trailing average for metal prices.
Zn Price Used: US$2,400/t US$c/lb1.09
Pb Price Used: US$2,000/t US$c/lb0.91
Ag Price Used: US$17/oz
The maiden resource successfully identified potentially economic mineralisation ranging
from surface to approximately 1,100m below surface. The block model currently extends for
a strike length of 3,300m and is still open to the east long strike and also at depth where it
has not yet been closed off.
Cut-Off Zn Pb Ag Troy
Tonnes Zn_Eq Zn Eq Zn Pb Ag
Zn Eq Density Tonnes Tonnes Oz
(Millions) (Pb)% (PbAg)% % % g/t
(PbAg)% (000’s) (000’s) (Millions)
6.0 9 2.65 8.8 9.5 5.0 4.3 31 470 400 9
5.0 12 2.57 7.8 8.4 4.6 3.7 28 580 470 11
4.0 16 2.52 6.9 7.5 4.0 3.3 25 670 540 13
3.0 20 2.50 6.2 6.7 3.7 2.9 23 750 600 15
Table: Summary of Inferred mineral resources for the Toral property reported at a 4.0% Zn
equivalent cut-off grade and estimated grade and tonnages at the various cut off grades.
Outlook
On 19 June 2018, the Company announced that it had engaged the services of UK based
AMS with immediate effect, to commence an initial Scoping Study (the “Study”) on the
Company’s 100% owned Toral lead, zinc and silver project. The principal objective of the
Study is to determine first economics on the Toral Project, reported on by a fully accredited
and independent mining consultancy group. The findings of the Study will be disclosed to
the market following completion, which is currently anticipated during Q4 2018.
AMS’ Principal Geologist, James Hogg, and Associate Principal Mining Engineer, Julian
Bennett, will lead the Study project team dedicated to the Toral Project. The dedicated Study
team is working alongside the Company’s existing in-country management, under the
direction of Myles Campion, Technical Director, and Jesus Montero, principal Mining
Engineer from Mining Sense.
Competent Person's Statement
The Toral maiden and updated resource estimates were prepared by Mr J.N. Hogg, MSc.
MAIG Principal Geologist for AMS, who is an independent Competent Person within the
meaning of the JORC (2012) code and qualified person under the AIM guidance note for
Mining and Oil & Gas companies. The maiden and updated resource estimates were aided
by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS under the guidance of
the competent person. Mr Hogg has reviewed and verified the technical information that
forms the basis of, and has been used in the preparation of, the mineral resource estimates,
including all analytical data, diamond drill hole logs, QA/QC data, density measurements,
and sampling, diamond drilling and analytical techniques. Mr Hogg consents to the inclusion
in this report of the matters based on the information, in the form and context in which it
appears. Mr Hogg has also received and approved the technical information in his capacity
as a qualified person under the AIM Rules for Companies.
Corporate
Board Changes
On 26 September 2017, the Company announced that Mr Justin Tooth, Executive Chairman
had resigned from the Board of Directors of the Company with immediate effect, in order to
pursue his other business interests. Additionally, Mr Laurence Read, previously a Non-
executive Director, became an Executive Director.
On 17 October 2017, the Company announced the appointment of Mr Myles Campion as an
Executive Director. Mr Campion has a comprehensive background in all technical and
financial facets of the resources sector, specialising internationally in resource evaluation and
project assessment. This follows a 10-year career as an exploration and mine site geologist in
Australia covering base metals and gold. He holds a BSc (Hons) in Geology from University of
Wales College, Cardiff and an MSc (MinEx) from the Royal School of Mines in London, and
also holds a Graduate Diploma of Business (Finance).
On 12 January 2018, the Company announced the appointment of Mr Colin Bird as a Non-
Executive Director and Chairman of the Company. Mr Bird is a chartered mining engineer with
extensive multi-commodity mine management experience in Africa, Europe, Latin America and
the Middle East. Mr Bird’s operational and corporate experience, includes the development of
the Jubilee Metals Group production portfolio, concentrating on Platinum Group Metals in
South Africa, in addition to the successful sale of Kiwara plc.
On 16 January 2018, the Company announced the resignation of Mr Grant Button as
Company Secretary and the appointment of Mr Daniel Smith as a Non-Executive Director and
Company Secretary. Mr Smith is a member of the Australian Institute of Company Directors
and the Governance Institute of Australia and has over 10 years’ primary and secondary
capital markets expertise. On 1 February 2018, the Company announced the resignation of Mr
Grant Button as a Non-Executive Director.
Name Change
On 4 June 2018, the Company announced that the Australian Securities and Investments
Commission had approved the change of the Company’s name to Europa Metals Ltd.
Coinciding with the change of company name, the ticker code for the Company was changed
to EUZ on the ASX, AIM and JSE.
Capital Raisings
On 8 September 2017, the Company announced that it had conditionally raised in aggregate,
£193,304 (approximately A$321,590) before expenses through a placement via Peterhouse
Corporate Finance Limited, as agent to the Company, of 214,782,526 new ordinary shares of
no par value each in the capital of the Company at a price of 0.09 pence per new ordinary
share. The placement was completed on 14 September 2017.
On 2 November 2017, the Company announced that it had conditionally raised £185,250
before expenses through a placement via Beaufort Securities Limited of 370,499,858 new
ordinary shares of no par value each in the capital of the Company at a price of 0.05 pence
per new ordinary share together with the issue of 185,249,929 options exercisable at a price
of 0.075 pence per new ordinary share for a period of thirty months from their date of issue.
The placing was completed on 8 November 2017.
On 9 February 2018 the Company announced the expiry of 2,000,000 unlisted options
exercisable at GBP0.0075 and 3,000,000 unlisted options exercisable at GBP0.02 on or
before 2 February 2018, which had lapsed unexercised.
On 22 May 2018, and further to its previous announcement of 21 March 2018, the Company
announced that following shareholder approval it had issued 1,739,130,435 new ordinary
shares of no par value each in the capital of the Company at a price of 0.0575 pence per
share, raising approximately £1m (before expenses). The proceeds of the fundraising
provided necessary financing and general working capital to enable the Company to progress
the resource delineation and commissioning of an initial scoping study in respect its wholly
owned Toral lead-zinc-silver project.
Shareholder Meetings
At a General Meeting of the Company held on 18 October 2017, shareholders ratified the
Company’s previous capital raising of £225,521 completed on 23 June 2017.
At the Annual General Meeting of the Company held on 30 November 2017, shareholders
approved, inter alia, the re-election of Messrs Button, Read and Campion.
At a General Meeting of the Company held on 21 May 2018, shareholders approved, amongst
other things, the issue of shares relating to a capital raising as well as the ratification of a
previous fundraising, the issue of placing options to brokers and advisers of the Company,
incentive options to Directors of the Company, the conversion of outstanding Director’s fees
into shares, and the change of the Company’s name from Ferrum Crescent Limited to Europa
Metals Ltd.
Sponsor and Broker
On 8 September 2017, the Company announced the appointment of Peterhouse Corporate
Finance Limited as an AIM broker to the Company.
On 21 March 2018, the Company announced the appointment of Turner Pope Investments
(TPI) Limited as the Company’s joint broker on AIM.
On 2 May 2018, the Company announced that in accordance with paragraph 2.6 of the JSE
Limited Listings Requirements, Sasfin Capital Proprietary Limited had been appointed as the
Company’s JSE sponsor with effect from 1 May 2018.
Significant events after the reporting date
There are subsequent events to report, as follows:
On 16 July 2018, the Company announced that it had contracted a combination drill rig for
mobilisation to its Toral lead-zinc-silver project located in the Province of Leon, northern
Spain, during August 2018. The Combination rig and associated operating crew was to be
supplied by Sondeos y Perforaciones Industriales de Bierzo SA (“SPI”) and overseen by the
Company’s on-site exploration team. The combination rig is one of only a few of its type in
Spain and had been deployed on a series of recent, successful drilling programmes. Such
rigs are used extensively on Australian drilling programmes.
On 30 July 2018, the Company announced the expiry of 205,949,134 unlisted options
exercisable at £0.003 per share on or before 29 July 2018.
On 10 August 2018, and further to its previous announcement of 27 July 2018, the Company
announced that it had raised approximately £563,516 (approximately A$0.98m)(before
expenses), through the issue of 727,118,650 new ordinary shares of no par value each in
the capital of the Company at an issue price of 0.0775 pence per share. The new ordinary
shares were issued under the Company’s existing placement capacity under ASX Listing
Rule 7.1. The net proceeds from the fundraising are to be utilised towards funding a
planned phase 2 work programme at the Company’s Toral lead-zinc-silver project, as well as
providing additional general working capital for the Group.
On 28 August 2018, the Company announced that the abovementioned combination drill rig
had been successfully mobilised at the Toral lead-zinc-silver project. Further to the
mobilisation and arrival on site of the combination rig, drilling will initially ascertain the
potential continuation of the mineralised structure outside of the current defined JORC
(2012) resource area. With a significant inferred resource estimate already established for
the main Toral project area, the extension drilling to the East will seek to identify the
presence of further mineralisation/hosting structures. Subsequent to completion of the
extension drilling, the Company will concentrate on drilling within the upper zone of the
identified JORC (2012) resource area, before moving on to a Phase II programme, targeting
key areas within the high grade zone of the inferred resource in order to increase resource
confidence levels. In addition, the Company announced that further to an intensive 6 week
process, its new geological team had successfully relogged all priority intersections from the
historical drill core from the Toral project stored at the National Litoteca, located in
Andalucia, Spain.
On 13 September 2018, the Company announced that the Board had decided to initiate the
Change of Land Use processes needed for the potential full future development of a mine at
its Toral project and had engaged a specialist consultancy, MAGMA Soluciones Ambientales
SL, to progress the requisite applications across the three distinct municipalities overlapping
the projects licence area. The process is currently estimated to take approximately 18
months.
On 20 September 2018, the Company announced an updated JORC (2012) mineral
resource estimate for its Toral project. The abovementioned re-logging of historic drill core
held at the National Litoteca from the Toral project had resulted in significantly higher bulk
density measurements than those used for the Maiden resource estimate completed by AMS
between November 2017 and January 2018, as announced by the Company on 6 February
2018.
Accordingly, the updated mineral resource estimate for the Toral lead-zinc-silver deposit
comprised:
- 19Mt @ 6.9% Zn Equivalent (including Pb credits) and 24g/t Ag
- 720,000 tonnes of Zinc, 570,000 tonnes of Lead and 14 million ounces of Silver
On 24 September 2018, the Company announced a further change in its registered office
address.
Likely developments and expected results
The Group will continue to carry out its business plans, by:
Conducting its ongoing phase 1 extension drilling programme and thereafter proceed
on to its planned phase 2 activities at its wholly owned Toral lead-zinc-silver Project in
Spain;
Finalising an initial scoping study for the Toral Project, which will provide the Company
with the level of confidence and understanding of the technical and commercial
characteristics of the project to justify and drive further exploration and development;
Seeking and evaluating further strategic acquisition opportunities within the exploration
and mining industry to enter potentially into additional advanced projects that will add
value to the Group; and
Continuing to meet its statutory commitments relating to its exploration tenements and
carrying out exploration activities in accordance with its stated strategy, whilst carefully
conserving the Group’s cash reserves in order to be able to take advantage of
potential value adding opportunities.
There can be no guarantee either that further exploration of the Group’s projects will result in
exploration success or that any potential additional strategic acquisitions considered by the
Directors to be likely to add value to the Group will become available to the Group.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2018
2018 2017
Note $ $
Revenue from continuing operations
Revenue 3(a) 9 17,956
Other income 3(b) 71,310 175,851
Administration expenses 3(c) (1,296,517) (1,595,427)
Occupancy expenses (27,655) (60,139)
Exploration expenditure (413,393) (514,439)
Foreign exchange loss 121,513 (37,064)
Share based payments 19 (338,713) (11,057)
Loss from sale of subsidiaries 6 - (9,262,484)
Loss before taxation (1,883,446) (11,286,803)
Income tax benefit / (expense) 5 - -
Loss after income tax for the year from continuing
operations (1,883,446) (11,286,803)
Net loss for the year (1,883,446) (11,286,803)
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss
Net exchange gain/ (loss) on translation of foreign
230,474 (930,007)
operation
Other comprehensive income/ (loss) for the year,
net of tax 230,474 (930,007)
Total comprehensive loss for the year (1,652,972) (12,216,810)
Net loss for the year attributable to:
Equity holders of the Parent (1,652,972) (11,286,803)
(1,652,972) (11,286,803)
Total comprehensive loss for the period attributable
to:
Equity holders of the Parent (1,652,972) (12,216,810)
(1,652,972) (12,216,810)
Loss per share Cents per share Cents per share
Basic loss for the year attributable to ordinary equity
holders of the Parent 8 (0.06) (0.91)
Diluted loss for the year attributable to ordinary equity
holders of the Parent 8 (0.06) (0.91)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income
should be read in conjunction with the accompanying notes in the full Report and Accounts.
Consolidated Statement of Financial Position
As at 30 June 2018
2018 2017
Note $ $
Assets
Current assets
Cash and short term deposits 9 1,272,327 503,891
Trade and other receivables 10 77,510 96,147
Other current financial assets - 14,344
Total current assets 1,349,837 614,382
Non-current assets
Plant and equipment 20,192 21,865
Capitalised exploration expenditure 11 1,344,013 1,180,488
Total non-current assets 1,364,205 1,202,353
Total assets 2,714,042 1,816,735
Liabilities and equity
Current liabilities
Trade and other payables 12 229,671 242,804
Provisions - 3,538
Total current liabilities 229,671 246,342
Total liabilities 229,671 246,342
Net assets 2,484,371 1,570,393
Equity
Contributed equity 13 38,079,499 35,931,732
Accumulated losses 16 (38,367,110) (36,483,664)
Reserves 15 2,771,982 2,122,325
Total equity 2,484,371 1,570,393
This Consolidated Statement of Financial Position is to be read in conjunction with the
accompanying notes in the full Report and Accounts.
Consolidated Statement of Cash Flows
For the year ended 30 June 2018
2018 2017
Note $ $
Cash flows used in operating activities
Interest received 9 8,653
Exploration and evaluation expenditure (404,017) (463,585)
Receipts from customers - 9,303
Payments to suppliers and employees (1,031,775) (1,695,759)
Net cash flows used in operating activities 20 (1,435,783) (2,141,388)
Cash flows used in investing activities
Payments for plant and equipment (22,008) (17,679)
Sale of plant and equipment - 2,588
Payment for acquisition of GoldQuest asset - (519,821)
Cash acquired on acquisition of GoldQuest asset - 8,923
Proceeds from sale of subsidiaries 6 - 1,000
Net cash flows used in investing activities (22,008) (524,989)
Cash flows from financing activities
Proceeds from issue of shares 2,294,676 2,821,053
Transaction costs on issue of shares (135,819) (330,305)
Net cash flows from financing activities 2,158,857 2,490,748
Net increase / (decrease) in cash and cash equivalents
held 701,066 (175,629)
Net foreign exchange difference 67,370 (63,744)
Cash and cash equivalents at 1 July 503,891 743,264
Cash and cash equivalents at 30 June 9 1,272,327 503,891
The above Consolidated Statement of Cash Flows should be read in conjunction with the
accompanying notes in the full Report and Accounts which can be viewed and downloaded
via the following link: http://www.europametals.com/site/news-announcements/annual-reports-
archive
This information is provided by RNS
The company news service from the London Stock Exchange
JSE Limited Requirements
Headline earnings reconciliation 2018 2017
$ $
Loss attributable to ordinaryequityholders of the parent
entity (1,883,446) (11,286,803)
Addback IAS 16loss on the disposalof plant andequipment - (2,647)
Less profit on sale of available for sale investments - -
Total tax effects of adjustments -
Headline loss (1,883,446) (11,289,450)
Basic loss per share (1,883,446) (11,286,803)
Weighted average shares in issue 3,075,844,119 1,238,720,046
Basic loss per share (cents) (0.06) (0.91)
Headlineloss (1,883,446) (11,289,450)
Weighted average shares in issue 3,075,844,119 1,238,720,046
Headlineloss per share (cents) (0.06) (0.91)
Perth
1 October 2018
Sponsor: Sasfin Capital (a member of the Sasfin group)
Date: 01/10/2018 08:00:01 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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