Alexander Mining plc ('Alexander' or 'the Company'), an AIM listed mining and mineral processing technologies company, announces its unaudited results for the six months ended 30 June 2019.
The Company's business objective historically up to the date of the reporting period has been to become a successful company focused on the mining and processing of mineralised materials for the production of base metals, which are integral to the delivery of technologies and products of the future. This was to be achieved from the commercialisation of its proprietary mineral processing technologies and potential strategic partnerships in producing mines and through equity and/ or royalty positions in advanced projects.
While the Company's strategy has had some positive progress and developments, the Board decided that it was necessary to complete a review of its operations. As a result and as announced on 25 September 2019, it concluded that it was no longer in Shareholders' interests for the Company to continue to provide financial support indefinitely for its mineral processing technology activities, which are carried out by the Company's wholly owned subsidiary, MetaLeach Limited ('MetaLeach').
Chairman's Statement & Review of the Half-Year
Dear Shareholders and Investors
Herewith I take pleasure on behalf of your Board of Directors in presenting the Company's unaudited interim results for the half-year ended 30 June 2019, along with commentary on the operating environment and related outlook, including details of a change in Company strategy following a strategic review of the Company's business by your Board and Management.
The period under review was generally a volatile one for the metals and mining sector, largely due to concerns about the direction of the global economy and the USA/China trade war.
Although, in our opinion, the mid- to longer-term outlook appears positive for Alexander's mineral processing technology, the Company has had to take a view on the realistic prospect in the short term of achieving sufficient revenue from licencing its technology and or consultancy fees to cover its cost base.
Accordingly, as announced on 25 September 2019, the Board decided to conduct a thorough review of its business activities and strategy. As a result, the Board concluded that it is no longer in shareholders' best interests for the Company to continue to provide financial support indefinitely for its mineral processing technology commercialisation activities. The Board has therefore announced that it proposes to dispose of MetaLeach and change the Company's business strategy. The Company intends to become an AIM Rule 15 cash shell and to complete a suitable reverse takeover in accordance with the AIM Rules as soon as practically possible.
The Company has continued to be assiduous in keeping its overheads to the minimum necessary, whilst maintaining required expenditure on business development and intellectual property protection. The Company's cash position at 30 June 2019 was GBP195,000. In August 2019, post the period end, the Company raised GBP475,000 before expenses.
Based on the current budget, the Company should have adequate working capital through until the end of June 2020.
As usual, I would like to thank you, Alexander's valued shareholders, for your continuing support and our employees, directors, consultants and advisers for their continued commitment.
Tel: +44 (0) 7770 865 341
This news release contains forward looking or future-oriented financial information, being information, which is not historical fact, including, without limitation, statements regarding potential results of metallurgical testwork, anticipated applications for the Company's intellectual property and discussions of future plans and objectives. Although the Company believes that the expectations reflected by such information are reasonable, these statements are based on assumptions and factors concerning future events that may prove to be inaccurate. Such statements are necessarily based upon a number of estimates and assumptions based on information available to the Company about itself and the business in which it operates. Information used in developing forward-looking information has been acquired from various sources including third party consultants, suppliers, regulators and other sources and is subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are the continuing availability of capital resources to fund the commercialisation of Alexander's technologies; continued positive results from trials and applications of Alexander's AmmLeach and HyperLeach technologies and other factors as disclosed in Company documents filed from time to time. Management uses forward-looking statements because it believes they provide useful information to the shareholders with respect to proposed transactions involving Alexander, and cautions readers that the information may not be appropriate for other purposes and should not be read as guarantees of future performance or results. The Company disclaims any intention or obligation to revise or update such statements unless required by law.