Power Metal Resources plc halved losses and increased its cash balance and projects in metal and mineral exploration across three continents.
FINANCES
The company’s portfolio includes precious, base and strategic metals in Africa, Australia and North America.
In its audited financial results for the year ended 30 September 2021, the company reported loss after tax of £622k (2020: £1.4 million).
Power Metal raised £3.6m in cash during the year from the exercise of Power Metal share warrants, including by directors.
The company’s cash balance was £1.27 million (2020: £0.91 million).
IMPAIRMENT
Power Metal’s 70% interest in the Kisinka copper-cobalt project in the DRC resulted in an impairment on its investment in full (£841,000).
“Regrettably operational progress has been difficult to secure in an acceptable manner in country, across a number of areas that we are seeking to resolve,” said the company in its report.
“We have not had adequate progress of late, or sufficient confidence to invest further at this stage, and given this underlying uncertainty have taken the current decision.”
2022 TARGETS
The company listed five aims for 2022, including advancing in-house exploration projects focusing on drill programmes targeting large-scale metal discoveries
Power Metal will also progress its spin-out model and secure independent listings of multiple vehicles.
The company will dispose further project portfolio interests to increase working capital, which alongside the value of the spin-outs, will move the company towards financial self-sustainability.
Power Metal will also invest in and focus on environmental, social and governance policies.
Finally, the company will focus on value creation first from its existing portfolio of interests, and look for new opportunities.
OUTLOOK
The company added it was now better positioned better than at any time in its history, with 14 project packages within six countries targeting 10 metals.
“Our model is highly flexible, provides long-term sustainable balance sheet growth and is driven by clear objectives, notably to do all in our power to generate high returns for shareholders, working fairly with all business partners and protecting and offering opportunity to the communities in which we operate.”