West Cumbria Mining Ltd said it would need “substantial” additional financing to develop and construct its underground coal mine and Woodhouse colliery in Whitehaven, Cumbria.
EXPECTATION
WCM’s 2023 annual report states that as at 31 December 2023, the group held cash reserves of £6.8 million which had fallen to £5.6m as at 5 April 2024 when its accounts were signed.
The company has sufficient money for the next 12 months, after which it would need to raise more capital during H2 2025, although the existing funds could be extended.
The report added that lack of sufficient funds raised a material uncertainty for the company to continue as a going concern, but that the directors had a “reasonable expectation” that the uncertainty could be managed.
WCM depends on funds from parent WCM (Holdings) Ltd, which at the end of 2023 recorded a rise in loss to £5,446,937 compared with £3,113,435 the previous year.
The increase was as a result of administrative expenses increasing to £5,252,554 (2022: £1,012,294).
WCM received planning permission for the coal mine and associated workings in 2022, with certain conditions.
The company still awaits its “rolled-up hearing” for consideration of legal challenges in January 2023 against the Government’s grant of permission for the mine.
Scheduled for October 2023, the hearing was deferred until after the Supreme Court’s decision on a separate, long-running hearing over UK Oil & Gas plc’s Horse Hill operations.
The controlling party of WCM Holdings is now Woodhouse Colliery Pte Ltd, formerly EMR Capital Investment.
Woodhouse Investment is resident in Singapore and increased its ownership of WCM Holdings from 81.3% in 2022 to 90.76% by the end of 2023.
The ultimate parent of Woodhouse Investment is EMR Capital Resources Fund 1 LLP, resident in the Cayman Islands.