Power Metal Resources plc plans to focus more on creating value from its existing interests rather than on acquisitions during the remainder of 2023.
NEW PHASE
In the group’s audited financial results for the year ended 30 September 2022, Power Metal chief executive Paul Johnson said that operational targets for 2023 included “proactive exploration work” for multiple large-scale metal discoveries.
“Our focus now turns to value generation through ongoing exploration of retained interests, and through completion of those corporate activities in process, or planned.
“The next financial year we intend to report mainly on that value generation, rather than undertaking further acquisitions and therefore the business will move to a distinctly new phase in its life cycle.”
The company said that any new acquisitions would be for uranium or lithium projects.
The company reported total comprehensive loss after tax of £137k (2021: loss of £622k), partly due to costs of the capital reorganisation of its spin-out Golden Metal Resources plc.
The figure also reflected a rise in administration costs from increased business activities particularly in connection with the costs of planned IPO listings.
The group held £1.56 million cash (£1.28m) with exploration costs met by the issue of shares.
Power Metal received £2.07m from fundraising, £1.06m from the exercise of warrants, £0.03m from the exercise of options and £2.15m relating to the acquisitions of “various investments and projects”.
The company additionally holds listed company shares and warrants (cash equivalents), representing a “further pool of accessible cash” available on the sale of shares in listed companies.
Power Metal said it had also developed its internal environment, social and governance policies and procedures.
“The company will continue to prudently invest in the regions in which we have business activities, in support of the communities where we operate,” the company added.
“As an early-stage company, Power Metal is keen to employ workers from the areas in which we operate, and to operate in a safe, responsible and reasonable manner.”