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Interim Results for the six months to 30 June 2023

25 September 2023

SHUKA MINERALS PLC

("Shuka" or the "Company")

Interim Results for the six months to 30 June 2023

Shuka Minerals plc (AIM: SKA), an African focused mine operator and developer, announces the Company's unaudited interim results for the six months ended 30 June 2023.

CEO's report

I am pleased to present the Company's Interim Results for the six-month period from 1 January 2023 to 30 June 2023. The period was a transformative one for the Company, particularly from a corporate perspective with a strategic investment of £1.47 million secured from two African focused mining investment groups, an intended significant restructuring of the Board of Directors, a change of name to Shuka Minerals plc (which was successfully approved by shareholders subsequent to the end of the period) and the application of the funds raised to not only fund its ongoing working capital requirements at its operating Rukwa Coal Mine, but also to fund due diligence costs associated with ongoing review work of potential new and strategically complimentary projects in Africa.

The most notable development during the six-month period, was the strategic investment that the Company was able to secure with Q Global Commodities Group, one of South Africa's leading independent commodity, mining, logistics and investment funds and with Gathoni Muchai Investments Limited, an East Africa based mining investment group. As part of this investment, the Company received an aggregate £1.47 million of new funding, with £575,000 received in June 2023, and the £893,000 balance received in September 2023 following shareholder approval at the Annual General Meeting held on 3 August 2023.

In conjunction with this strategic investment, the Company commenced a major restructuring and strengthening of its Board, and I was pleased to confirm the appointment of Mr Jason Brewer, a director of Gathoni Muchai Investments and the CEO of London-listed Marula Mining Plc, as Executive Director of the Company in June 2023. I am also looking forward to the proposed appointment of Mr Quinton van der Burgh later this year, who is the founder and CEO of Q Global Commodities and one of South Africa's leading mining entrepreneurs, and who will join the Company as Director and Non-Executive Chairman, subject to satisfactory completion of customary due diligence by the Company's Nominated Adviser. Mr Nicholas von Schirnding, resigned as a director of the Company, with effect from 31 October 2023. I would like to thank Nick for his work and commitment to the Company over the years and would like to welcome Jason and, in due course, Quinton to the Board, whom I believe will be transformative appointments for the Company as it looks to re-establish itself over the coming months as a leading African focused mining and development company.

During the period and while the Company completed its corporate restructuring and recapitalisation, the Company continued to manage day-to-day operations at its wholly owned Rukwa Coal Mine in Tanzania. Operations during the period were quite challenging as a result of the high moisture content in the run-of-mine ("ROM") coal stockpile, which impacted on the coal washing process and coal production over the period. As a result of the wash plant performance and ongoing maintenance work on plant and equipment during the period, only limited coal sales were made into the regional markets during the period. The Company continues to review its ongoing investment in the Rukwa Coal Mine and targeted production rates. In parallel with its operational activities, the Company continued in its discussions with the Mining Commission in Tanzania, to ensure ongoing compliance with local regulations, and to address previously disclosed outstanding legacy matters concerning claims and litigation and the status of the mining licence.

The strategic investment received from Gathoni Muchai Investments and Q Global Commodities has ensured that the Company has been able to fund its ongoing working capital needs and corporate and mining development activities, and importantly fund costs associated with the evaluation of potential complementary advanced mining and mine development projects across Africa with the support and active involvement of these two new major shareholders.

I look forward to providing further updates as we progress our strategy and to operating under our new company name of Shuka Minerals plc which was approved by shareholders at the Annual General Meeting held on 3 August 2023, and officially announced on 1 September 2023. This is a name which certainly reflects our position as a mine operator in east Africa and as a truly African focused mining and development company that is committed to ensuring its activities demonstrate a commitment to environmental sustainability, community engagement, and responsible mining practices.

I would like to thank all our shareholders for their ongoing support and I look forward to working alongside my fellow directors and all key stakeholders over the rest of 2023.


Noel Lyons

Chief Executive Officer.


For further information please contact:

Shuka Minerals Plc

Jason Brewer - Executive Director


Noel Lyons - Chief Executive Officer




Strand Hanson Limited

+44 (0) 20 7409 3494

(Financial and Nominated Adviser)


James Harris


Richard Johnson




Tavira Securities Limited

+44 (0) 20 7100 5100

(Joint Broker)


Oliver Stansfield


Jonathan Evans




Peterhouse Capital Limited

+44 (0) 20 3934 6630

(Joint Broker)


Charles Goodfellow


Duncan Vasey



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



The income for the period arises from the Group's continuing operations.



CONSOLIDATED statement of financial position

as at 30 June 2023


As at

30 June 23 unaudited

As at

30 June 22 unaudited

As at

31 Dec 22 unaudited

Note

£


£


£


Non-current assets

​Property, plant and equipment

​4

​5,568,304

5,906,709

5,911,876

​Intangible assets

​5

​333,907

​349,607

352,627

5,902,211

6,256,316


​6,264,503

Current assets

Inventories

111,516

180,124


117,766

Trade and other receivables


309,778

353,457

347,984

Cash and cash equivalents


​440,655

477,438

237,300

861,949

1,011,019

​703,050

Current liabilities


Trade and other payables


(745,718)

​(308,174)

(402,200)

Borrowings

(27,817)


​(5,206)

(29,376)

Current assets less current liabilities

88,414

​697,639

271,474


Total assets less current liabilities


5,990,625

6,953,955

6,535,977

Non - current liabilities


Borrowings

​(52,375)

-

​(67,128)

​Environmental rehabilitation liability


​(28,984)

​(27,339)

(30,609)

Net assets


5,909,266

6,926,616


6,438,240


Capital and reserves

Called-up share capital

4,176,601

4,176,601

​4,233,744

​Share premium account

23,009,976

​22,254,317


​22,569,976

​Share based payment reserve

​210,037

346,774

​​277,654

Foreign currency translation reserve

​937,960

​1,205,354

​1,272,993


​Retained earnings


​(22,574,502)

(21,038,103)

(21,896,430)

​Issued capital and reserves attributable to owners of the parent company

​5,932,215


​6,944,943


​6,457,937

Non-controlling interest


​(22,949)

​(18,327)


(19,697)

Total equity

5,909,266

​6,926,616

​6,438,240

CONSOLIDATED statement of changes in equity



Equity Interests

Share Capital

Share Premium

Retained Earnings Account

Share Option Reserve

Foreign Currency

Translation Reserve

Total

Non-controlling interest

Total

£

£

£

£

£

£

£

£

At 1 January 2023

​4,233,744

​22,569,976

​(21,896,430)

​277,654

​1,272,993

​6,457,937


​(19,697)

​6,438,240

Comprehensive Income for the year


Foreign currency translation

​(335,033)

​(335,033)

​(2,464)

​(337,497)

​Loss for the year

​-

​-

​(745,689)


​-

​-

​(745,689)

​(634)

​(746,323)

Total comprehensive income for the year

-

​-

(745,689)

-

(335,033)

(1,080,722)

(3,098)

(1,083,820)

Transactions with owners

​Issue of share capita

​115,000

​460,000


​-

​-

​-

​575,000


​-

​575,000


​Share issue costs

-

​(20,000)

​-

-

​-

​(20,000)

​-

​(20,000)

Lapsed share options

-

​67,617

​(67,617)


Total transactions with owners

115,000

440,000

67,617

67,617

​-

555,000

​-

555,000

​Non- controlling interest share of goodwill

​-

​-

​-

​-

​-

​-

(154)

​(154)

At 30 June 2023

​4,348,744

​23,009,976

​(22,574,502)

​210,037

​937,960

​5,932,215

​(22,949)

​5,909,266


Equity Interests

​​Share Capital

Share Premium


Retained Earnings Account

Share Option Reserve

Foreign Currency

Translation Reserve

Total

Non-controlling interest

Total

£

£

£

£

£

£

£

£

At 1 January 2022

​4,176,601

​22,254,317

​(20,325,577)


​-

​453,614 581,143


7,140,098

(17,328)

​7,122,770

Comprehensive Income for the year

​Foreign currency translation

624,211

​624,211

​624,211

​Loss for the year

​(819,366)

​-

​-

​(819,366)

​(1,274)


​(820,640)


Total comprehensive income for the year

​-

​-

(819,366)

624,211

(195,155)

(1,274)

(196,429)


Transactions with owners

Lapsed share options

​106,840

​(106,840)

Total transactions with owners

​Non- controlling interest share of goodwill

At 30 June 2022

​4,176,601

​22,254,317

​(21,038,103)

​346,774

​1,205,354

​6,944,943


(18,327)


Equity Interests


Share Capital

Share Premium

Retained Earnings Account

Share Option Reserve

Foreign Currency

Translation Reserve

Total

Non-controlling interest


Total


£

£

£

£

£

£

​​£

£

At 1 January 2022

4,176,601

​22,254,317

​(20,325,577)

​453,614

​581,143

​7,140,098

​(17,328)


​7,122,770

Comprehensive Income for the year

​Foreign currency translation

​691,850

​691,850

​691,850

​Loss for the year

​(1,754,011)

​(1,754,011)

​(2,668)

​(1,756,679)

Total comprehensive income for the year

(1,754,011)

​-

691,850

(1,062,161)

​​(2,668)

(1,064,829)


Transactions with owners

Issue of share capital

​57,143

​342,857


​-

​-

-

​400,000

-

400,000

​Share issue costs

​(20,000)

​-

​-

​-

​(20,000)

-

​(20,000)

​Share options/warrants charge

​(7,198)

​7,198

-

​Lapse of share options/warrants


​183,158

(​183,158)

Total transactions

57,143


315,659

183,158

(175,960)


380,000


380,000


​Non- controlling interest share of goodwill

​299

​299

At 31 December 2022


4,233,744

22,569,976

​(21,896,430)

​277,654

​1,272,993

6,457,937

​(19,697)

​6,438,240


CONSOLIDATED CASH FLOW STATEMENT


Six months

ended

30 June 23 Unaudited

​​Six months

ended

30 June 22 Unaudited

​​Six months

ended

31 Dec 22 Unaudited

Cash flows from operating activities

£

£

£

​Operating loss

(738,761)

​(819,965)

​(1,751,083)

​Depreciation

​30,542

​144,039

​324,790

​Movement in inventories

​-

​(20,310)

​40,903

​Movement in trade and other receivables

​(16,825)


​185,761

​(92,615)

​Movement in trade and other payables

358,750

​(112,135)

​(26,820)

Loss on foreign exchange

(1,977)


​(115,391)

​(4,614)

​Expected credit losses

​-

-

​242,780

Net cash used in operating activities

​(368,271)

​(738,001)

​1,266,659

Tax Paid

​-

​(1,319)



Cash flows from investing activities

​Purchase of property, plant and equipment



​​(41,236)

Finance income


​​48

​68

Net cash used in investing activities


48

​​(41,168)

Cash flows from financing activities

​Repayment of lease liabilities

​(11,536)

​(14,078)

(22,138)

​Lease interest

​(4,483)

​(723)

(1,793)

​Other interest paid

(3,079)

​Proceeds on issue of ordinary shares

614,850

​360,150

Share issue costs

(20,000)

​20,000

Net cash generated from financing activities

​575,752

​(14,801)

​316,219

Net increase/(decrease) in cash and cash equivalents

​207,481

​(752,754)

​(992,927)


​Cash and cash equivalents at beginning of year

​237,300

​1,229,801

​1,229,801


​Exchange losses on cash and cash equivalents

​(4,126)


​391

​426


Cash and cash equivalents at end of year

​440,655

​477,438

​237,300


NOTES TO THE INTERIM REPORT

1. Financial information and basis of preparation

The interim financial statements of Shuka Minerals Plc are unaudited consolidated financial statements for the six months ended 30 June 2023 which have been prepared in accordance with UK adopted international accounting standards. They include unaudited comparatives for the six months ended 30 June 2022 together with audited comparatives for the year ended 31 December 2022.

The interim financial statements do not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2022 have been reported on by the company's auditors and have been filed with the Registrar of Companies. The report of the auditors contained a qualified opinion and an Emphasis of mater paragraph on Operationalisation of up to 16% Government of Tanzania non-dilutive free carried share interest and the recoverability of VAT in Tanzania. Aside from the Qualification and Emphasis of matter paragraphs above, the auditor's report did not contain any statement under section 498 of the Companies Act 2006.

The interim consolidated financial statements for the six months ended 30 June 2023 have been prepared on the basis of accounting policies expected to be adopted for the year ended 31 December 2023. These are anticipated to be consistent with those set out in the Group's latest financial statements for the year ended 31 December 2022. These accounting policies are drawn up in accordance with adopted International Accounting Standards ("IAS") and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

2. Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

30 June 23


30 June 22

31 December 22

£

£

£

​Loss after taxation

​(1,756,679)

(820,640)

​(1,756,679)

​Weighted average number of shares in the period

​29,329,474

21,645,575

​22,036,964

​Basic and diluted loss per share (pence)

​(7.97)

​(3.79)

​(7.97)

The loss attributable to equity shareholders and weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of share options and warrants would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.


3. Dividends

No dividends are proposed for the six months ended 30 June 2022 (six months ended 30 June 2021: £nil, year ended 31 December 2021: £nil).


4. Property, plant and equipment

Coal Production assets

Plant & machinery

Fixtures & fittings

Motor vehicles

Total

£

£

£

£

£

Cost or valuation

​As at 1 January 2023

​5,855,019

​1,344,491

​(70,984)

328,480

​7,535,544

​Foreign exchange adjustment

​(310.858)

​(70,984)

​(180)


​(16,553)


(398,575)

At 30 June 2023

​5,544,161

​1,273,507

​7,374

​311,927

​7,136,969







7. Distribution of interim report to shareholders

The interim report will be available for inspection by the public at the registered office of the Company during normal business hours on any weekday and from the Company's website http://www.shukaminerals.com/. Further copies are available on request.

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