SABLE EXPLORATION AND MINING LIMITED
(Incorporated in the Republic of South Africa) (Registration Number: 2001/006539/06)
JSE share code: SXM ISIN: ZAE000303319
(“SEAM” or “the company” or “the group”)
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 AUGUST 2024
| CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2024 | |||
| Assets | 31 Aug 2024 | 29 Feb 2024 | 31 Aug 2023 |
| Non-Current Assets | |||
| Property, plant and equipment | 11,979,418 | 12,186,780 | – |
| Other Financial Assets | 4,799,370 | 4,499,370 | |
| Current Assets | |||
| Trade and other receivables | 789,909 | 668,362 | 1,370,241 |
| Cash and cash equivalents | 613,689 | 3,186,068 | 6,385 |
| Total Assets | 18,182,386 | 20 540 580 | 1,376,626 |
| Equity and Liabilities Equity | |||
| Share Capital | 151,682,043 | 151,682,043 | 99,468,435 |
| Accumulated loss | (151,149,531) | (146,125,800) | (134,886,183) |
| Equity attributable to owners of the parent | 532,512 | 5,556,243 | (35,417,748) |
| Non-controlling interest | (1,161) | (1,161) | (1,161) |
| Total equity | 531,351 | 5,555,082 | (35,418,909) |
| Liabilities | |||
| Non-Current Liabilities | |||
| Other financial liabilities | 19,999 | 169,999 | 35,903,434 |
| Current Liabilities | |||
| Trade and other payables | 14 805 278 | 12 025 564 | |
| Loans from directors | 2 789 935 | 2 789 935 | 892,101 |
| Current tax payables | 35 823 | – | – |
| Bank overdraft | – | – | – |
| Total Liabilities | 17,651,035 | 14 985 498 | 36,795,535 |
| Total Equity and Liabilities | 18,182,386 | 20 540 580 | 1,376,626 |
| Repayments of loans from directors | – | 1,970,000 | |
| Proceeds/(Repayments) from financial liabilities | (150,000) | 23,025,583 | 3,092,162 |
| Net cash from financing activities | (150,000) | 25,717,749 | 3,092,162 |
| Total cash movement for the year | (2,572,378) | 3,118,853 | (61,033) |
| Cash at the beginning of the year | 3,186,068 | 67,215 | 67,418 |
| Cash at the end of the year | 613,689 | 3,186,068 | 6,385 |
OPERATIONS, MARKETS AND FINANCIAL PERFORMANCE
Financial performance
The Group is still in the exploration phase and is investigating various acquisitions and therefore does not currently generate cash from its activities.
The Company’s expenses mainly consist of management fees and general costs related to a listed entity. Management monitors the cash flow situation on an ongoing basis.
As is common with many junior exploration and mining companies, the Group raises capital for exploration and other projects as and when required.
TRANSACTIONS
There were no transactions during the reporting period.
The company previously announced that it had entered into an agreement with IPace (Pty) Ltd (“IPace”) for the establishment of an unincorporated joint venture to conduct the business of commissioning, operating and maintaining of a Dense Medium Separation (“DMS”) plant to produce DMS grade magnetite for sale into the coal industry.
The Lapon plant’s commissioning has been delayed due to a lack of funding from SEAM’s JV partner, IPace. This lack of performance according to the agreement has forced SEAM to initiate arbitration processes with IPace regarding SEAM’s view of IPace’s non-performance. This process is ongoing and expected to be completed within H1 2025.
The delay in the commissioning of the plant has placed strain on SEAM’s financial performance but the management team as well as the board is confident that SEAM’s turnaround is imminent.
The CEO, Mr James Allan’s Employment Contract with the Company expired on 31 October 2024 and was not renewed. The Company is in the process of finalising the appointment of a new CEO.
Management continues to review potential business opportunities for the Group.
RIGHTS OFFER
The Rights Offer was successfully concluded and raised R52,2 million before any costs.
SEGMENT REPORTING
Whilst the Company retains application for various vanadium and iron ore prospecting rights, during the period the Group currently operated in one segment relating to the expenditure on acquisitions in the mining sector.
BASIS OF PREPARATION
The Groups financial results for the 6 months ended 31 August 2024 constitute a summary prepared in accordance with the JSE Listings Requirements, the South African Companies Act, 2008 as amended (the Companies Act), and the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and the presentation and disclosure requirements of IAS 34 and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee or its successor of the Group’s audited financial statements.
The accounting policies applied in the preparation of these condensed consolidated interim financial statements comply with IFRS and are consistent with those used in the annual financial statements for the year ended 29 February 2024.
The interim financial statements have been prepared by Ulrich Bester.
GOING CONCERN
The interim results have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments, will occur in the ordinary course of business.
The Group incurred a loss for the 6-month period ended 31 August 2024 and, as of that date, the Group’s total liabilities exceeded its total assets. The Group has the right to defer a payment of non-current liabilities of R23,184,629.00 until such time as the Group is able to repay the loans from available cash resources.
These events or conditions indicate that a material uncertainty continues to exist that may cast significant doubt on the Group’s ability to continue as a going concern.
The directors continue to source financial resources for the Group to continue as a going concern despite the historical losses incurred. The ability of the Group to be a going concern is dependent on the IPace transaction detailed above and securing additional projects.