CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 August 2022

 

	Notes	Period ended 31 August 2022 (unaudited) £		Period ended 31 August 2021 (unaudited) £	Year ended 28 February 2022 (audited) £
Cash flows from operating activities
Loss before taxation		(3 720 569)		(504 274)		389 798
Adjustments for:
Fair value adjustment to customer contract	5	30 726		(15 238)		(137 019)
Depreciation of property, plant and equipment	12	949 884		736 792		1 861 023
Depreciation of intangible assets	11	5 285		6 086		28 198
Share-based payments		267 401		22 527		55 793
Equity-settled transactions		-		9 672		66 101
Finance income		(21 368)		-		(6 545)
Finance costs	8	186 874		228 285		316 365
Changes in working capital:
Decrease/(increase) in receivables		1 189 937		124 981		(2 866 192)
Decrease/(increase) in inventory		57 917		(382 786)		(418 556)
Increase in payables		851 750		334 662		1 006 060
Net cash (used)/generated in operating activities		(202 163)		560 707		569 064
Cash flows from investing activities
Purchase of intangible assets		(1 606 380)		(822 753)		(1 442 774)
Purchase of property, plant and equipment		(7 466 335)		(1 511 632)		(4 543 884)
Net cash used in investing activities		(9 072 715)		(2 334 385)		(5 986 658)
Cash flows from financing activities
Finance income		21 368		-		6 545
Finance costs	8	(153 901)		(157 458)		(224 061)
Lease payments	19	(120 977)		(91 258)		(213 661)
Net proceeds from issue of shares	20	-		12 239 703		12 548 248
Settlement of convertible loan notes		-		(1 769 945)		(1 769 945)
Proceeds from borrowings	16	3 997 799		5 298 880		5 024 727
Repayment of borrowings	16	(166 932)		(8 700 696)		(3 907 086)
Net cash generated from financing activities		3 577 357		6 819 226		11 464 767
Net decrease/(increase) in cash and cash equivalents		(5 697 521)		5 045 548		6 047 173
Cash and cash equivalents at the beginning of the period		7 365 379		1 351 200		1 351 200
Exchange differences		7 387		(106 054)		(32 994)
Cash and cash equivalents at the end of the period		1 675 245		6 290 694		7 365 379

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the period ended 31 August 2022

 

1.     Corporate information and principal activities

 

AfriTin Mining Limited ("AfriTin") was incorporated and domiciled in Guernsey on 1 September 2017, and admitted to the AIM market in London on 9 November 2017. The Company's registered office is PO Box 282, Oak House, Hirzel Street, St Peter Port, Guernsey GY1 3RH and operates from Illovo Edge Office Park, 2nd Floor, Building 3, Corner Harries and Fricker Road, Illovo, Johannesburg, 2116, South Africa.

 

This financial information is for the period ended 31 August 2022 and the comparative figures for the 6 month period ended 31 August 2021 and for the year ended 28 February 2022 are shown.

 

The AfriTin Group comprises AfriTin Mining Limited and its subsidiaries as noted below.

 

AfriTin Mining Limited ("AML") is an investment holding company and holds 100% of Guernsey subsidiary, Greenhills Resources Limited ("GRL").

 

GRL is an investment holding company that holds investments in resource-based tin and tantalum exploration companies in Namibia and South Africa. The Namibian subsidiary is AfriTin Mining (Namibia) Pty Limited ("AfriTin Namibia"), in which GRL holds 100% equity interest. The South African subsidiaries are Mokopane Tin Company Pty Limited ("Mokopane") and Pamish Investments 71 Pty Limited ("Pamish 71"), in which GRL holds 100% equity interest.

 

AfriTin Namibia owns an 85% equity interest in Uis Tin Mining Company Pty Limited ("UTMC"). The minority shareholder in UTMC is The Small Miners of Uis who own 15%.

 

Mokopane owns a 74% equity interest in Renetype Pty Limited ("Renetype") and a 50% equity interest in Jaxson 641 Pty Limited ("Jaxson").

 

The minority shareholders in Renetype are African Women Enterprises Investments Pty Limited and Cannosia Trading 62 CC who own 10% and 16% respectively.

 

The minority shareholder in Jaxson is Lerama Resources Pty Limited who owns a 50% interest in Jaxson. Pamish 71 owns a 74% interest in Zaaiplaats Mining Pty Limited ("Zaaiplaats"). The minority shareholder in Zaaiplaats is Tamiforce Pty Limited who owns 26%.

 

AML holds 100% of Tantalum Investment Pty Limited, a company containing Namibian exploration licenses EPL5445 and EPL5670 for the exploration of tin, tantalum and associated minerals.

 

As at 31 August 2022, the AfriTin Group comprised:

 

Company	Equity holding and voting rights	Country of incorporation	Nature of activities
AfriTin Mining Limited	N/A	Guernsey	Ultimate holding company
Greenhills Resources Limited1	100%	Guernsey	Holding company
AfriTin Mining Pty Limited1	100%	South Africa	Group support services
Tantalum Investment Pty Limited1	100%	Namibia	Tin & tantalum exploration
AfriTin Mining (Namibia) Pty Limited2	100%	Namibia	Tin & tantalum operations
Uis Tin Mining Company Pty Limited3	85%	Namibia	Tin & tantalum operations
Mokopane Tin Company Pty Limited2	100%	South Africa	Holding company
Renetype Pty Limited4	74%	South Africa	Tin & tantalum exploration
Jaxson 641 Pty Limited4	50%	South Africa	Tin & tantalum exploration
Pamish Investments 71 Pty Limited2	100%	South Africa	Holding company
Zaaiplaats Mining Pty Limited5	74%	South Africa	Property owning

 

¹ Held directly by AfriTin Mining Limited

² Held by Greenhills Resources Limited

³ Held by AfriTin Mining (Namibia) Pty Limited

⁴ Held by Mokopane Tin Company Pty Limited

⁵ Held by Pamish Investments 71 Pty Limited

 

This financial information presented in Pound Sterling (£) because that is the currency in which the Group has raised funding on the AIM market in the United Kingdom. Furthermore, Pound Sterling (£) is the functional currency of the ultimate holding company, AfriTin Mining Limited.

The Group's key subsidiaries, AfriTin Namibia and UTMC, use the Namibian Dollar (N$) as their functional currency. The period-end spot rate used to translate all Namibian Dollar balances was £1 = N$19.84 and the average rate for the period was £1 = N$19.70.

2.     Significant accounting policies

 

Basis of accounting

 

The Consolidated interim financial information has been prepared in accordance with UK Adopted International Accounting Standards. The Consolidated interim financial information also complies with the AIM Rules for Companies, NSX Listing Requirements and the Companies (Guernsey) Law, 2008 and show a true and fair view.

 

The significant accounting policies applied in preparing this information are set out below. These policies have been consistently applied throughout the period. This information has been prepared under the historical cost convention except as where stated.

 

The interim financial information for the six months to 31 August 2022 is unaudited and does not constitute statutory financial information. The statutory accounts for the year ended 28 February 2022 are available on the Company's website.

 

Going concern

 

This interim financial information has been prepared on the basis of accounting principles applicable to a going concern which assumes the company will be able to continue in operation for the upcoming 12 months and will be able to realize its assets and discharge its liabilities in the normal course of operations.

 

At 31 August 2022, the company had cash in the bank of £1.7m. Subsequent to the period end, the group successfully concluded a successful completion of the Placing and Subscription of 396,021,660 new Ordinary Shares raising gross proceeds of £19.8 million (approximately US$22.8million).

 

Management have prepared a detailed cash flow forecast for the period to 31 October 2022 and stress tests of those forecasts. The base case forecast demonstrates that the Group will have sufficient funds to meet its liabilities as they fall due and includes the following key assumptions:

 

·      Prices have been set at $19,000 per tonne of tin.

·      The base case forecast assumes continuing steady state production for the current mining and processing facility post the successful expansion, which was commissioned in November 2022.

·      The base case forecast includes capital expenditure required for the pilot lithium and tantalum production facilities. This expenditure will be funded by the secured equity.

·      The base case forecast includes exploration drilling programme expenditure for lithium and tantalum. This expenditure will be funded by the secured equity.

 

In addition, the Board have considered downside scenarios in relation to commodity pricing and production across the period. The scenarios demonstrated that the Group will be able to maintain liquidity.

 

The group has also entered into a conditional US$30.8 million funding arrangement made up as follows:

·      US$25 million (c. £21.5m) investment with a fund managed by Orion Resource Partners ("Orion").

·      US$5.8 million (c£5m) lending facility with the Development Bank of Namibia. This was announced on 5 July 2022 (and updated by the disclosures in the Company's Annual Report) ("DBN Debt Financing")

 

Accordingly, the Directors have concluded that the going concern basis in the preparation of this financial information is appropriate and that there are no material uncertainties that would cast doubt on that basis of preparation.

 

 

 

Critical accounting estimates and judgements

 

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. In particular, information about significant areas of estimation uncertainty considered by management in preparing the interim financial information is provided below.

 

Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years.

 

i)      Going concern and liquidity

 

Significant estimates were required in forecasting cash flows used in the assessment of going concern including tin and tantalum prices, the levels of production, operating costs, and capital expenditure requirements. For further details, refer to going concern considerations laid out earlier in Note 2.

 

ii)     Decommissioning and rehabilitation obligations

 

Estimating the future costs of environmental and rehabilitation obligations is complex and requires management to make estimates and judgements, as most of the obligations will be fulfilled in the future and contracts and laws are often not clear regarding what is required. The resulting provisions (see Note 18) are further influenced by changing technologies, and by political, environmental, safety, business, and statutory considerations.

 

The Group's rehabilitation provision is based on the net present value of management's best estimates of future rehabilitation costs. Judgement is required in establishing the disturbance and associated rehabilitation costs at period end, timing of costs, discount rates, and inflation. In forming estimates of the cost of rehabilitation which are risk adjusted, the Group assessed the Environmental Management Plan and reports provided by internal and external experts. Actual costs incurred in future periods could differ materially from the estimates, and changes to environmental laws and regulations, life of mine estimates, inflation rates, and discount rates could affect the carrying amount of the provision.

 

In determining the amount attributable to the rehabilitation liability, management used a discount rate of 13% (August 2021: 12.8% and February 2022: 10%), an inflation rate of 7% (August 2021: 6% and February 2022: 5%) and an estimated mining period of 16.5 years, being the Phase 1 expansion life of mine.

 

iii)    Impairment indicator assessment for exploration and evaluation assets

 

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including specific impairment indicators prescribed in IFRS 6: Exploration for and Evaluation of Mineral Resources. If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future tin prices, future capital expenditures, environmental and regulatory restrictions, and the successful renewal of licences. The Group considers the South African exploration and evaluation assets to be non-core as it continues to primarily focus on developing its Namibian assets. Accordingly, the capitalised exploration and evaluation expenditure relating to the South African assets was impaired to nil in the prior year on the basis that the Group did not intend on incurring any further expenditure on its South African licences. The directors have concluded that there are no indications of impairment in respect of the carrying value of Namibian intangible assets at 28 February 2022 based on planned future development of the Namibian projects, and current and forecast tin prices. Exploration and evaluation assets are disclosed fully in Note 11. 

 

iv)   Impairment assessment for property, plant and equipment

 

Management have reviewed the Uis mine for indicators of impairment and have considered, among other factors, the operations to date at the Uis Tin Mine, the Phase 1 Stage II expansion of the Uis operations, forecast commodity prices, and market capitalisation of the Group. In undertaking the indicator review, management have also reviewed the underlying LoM valuation model for Uis and have concluded that no indicators of impairment have been noted at period end. The LoM valuation model is on a fair value less cost to develop basis and includes assessments of different scenarios associated with capital development and expansion opportunities.

 

The forecasts required estimates regarding forecast tin prices, ore resources and production, and operating and capital costs. The discounted cash flows use a discount rate of 8.3% post tax nominal. Under the base case forecast using a nominal consensus tin price of $25 000 per tonne, rising to $31 000 per tonne by 2028, the forecast indicates headroom as at 31 August 2022.

 

As an additional test, management performed certain sensitivity calculations. These included raising the discount rate to 11% post tax nominal, lowering the forecast tin prices by 5%, lowering plant recovery by 5% and increasing operating costs by 10%. In each of these circumstances, the forecast indicated headroom as at 31 August 2022.

 

v)    Depreciation

 

Judgement is applied in making assumptions about the depreciation charge for mining assets when using the unit-of-production method in estimating the ore tonnes held in reserves. The relevant reserves are those included in the current approved LoM plan which relates to the Phase 1 expansion. Judgement is also applied when assessing the estimated useful life of individual assets and residual values. The assumptions are reviewed at least annually by management and the judgement is based on consideration of the LoM plan, as well as the nature of the assets. The reserve assumptions included in the LoM plan are evaluated by management.

 

vi)   Capitalisation and depreciation of waste stripping

 

The Group has elected to capitalise the costs of waste stripping activities as these are necessary to allow improved access to the ore and, therefore, will result in future economic benefits. The costs of drilling, blasting and load & haul of waste material is capitalised until such time that the underlying ore is used in production. These costs are then expensed on a proportional basis. The capitalised costs are included in the mining asset in property, plant & equipment and are expensed back into the statement of comprehensive income as depreciation. Capitalisation of waste stripping requires the Group to make judgements and estimates in determining the amounts to be capitalised. These judgements and estimates include, amongst others, the expected life of mine stripping ratio for each separate open pit, the determination of what defines separate pits, and the expected volumes to be extracted from each component of a pit for which the stripping asset is depreciated.

 

vii)  Determination of ore reserves

 

The estimation of ore reserves primarily impacts the depreciation charge of evaluated mining assets, which are depreciated based on the quantity of ore reserves. Reserve volumes are also used in calculating whether an impairment charge should be recorded where an impairment indicator exists.

 

The Group estimates its ore reserves and mineral resources based on information, compiled by appropriately qualified persons, relating to geological and technical data on the size, depth, shape, and grade of the ore body and related to suitable production techniques and recovery rates. The estimate of recoverable reserves is based on factors such as tin prices, future capital requirements and production costs, along with geological assumptions and judgements made in estimating the size and grade of the ore body.

 

There are numerous uncertainties inherent in estimating ore reserves and mineral resources. Consequently, assumptions that are valid at the time of estimation may change significantly if or when new information becomes available.

 

viii) Valuation of inventories

 

Judgement is applied in making assumptions about the value of inventories and inventory stockpiles, including tin prices, plant recoveries and processing costs, to determine the extent to which the Group values inventory and inventory stockpiles. The Group uses forecast tin prices to determine the net realisable value of the ROM stockpile and the tin concentrate inventory on hand at period end. Inventory stockpiles are measured using actual mining and processing costs.

 

ix)   Determining the lease term

 

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise, or not to exercise, an extension option. Extension options are only included in the lease term where the company is reasonably certain that it will extend or will not terminate the lease when the lease expires. For all leases, the most relevant factors include:

·      Historical lease durations;

·      Costs incurred in replacing the leased asset;

·      Possible business disruption due to replacing the leased asset;

·      Likelihood of extension of the lease - if there are significant penalties to terminate, then it's reasonably certain that the Group will extend.

 

The lease term is reassessed on an ongoing basis, especially when the option to extend becomes exercisable, or on occurrence of a significant event or a significant change in circumstances which affects this assessment, and that is within the control of the Group.

 

x)    Determining the incremental borrowing rate to measure lease liabilities

 

The interest rate implicit in leases is not available, therefore the Group uses the relevant incremental borrowing rate (IBR) to measure its lease liabilities. The IBR is estimated to be the interest rate that the Group would pay to borrow:

·      over a similar term;

·      with similar security;

·      the amount necessary to obtain an asset of a similar value to the right of use asset; and

·      in a similar economic environment.

 

The IBR, therefore, is considered to be the best estimate of the incremental rate and requires management's judgement as there are no observable rates available.

 

xi)   Determining the fair value of trade receivables classified at fair value through profit or loss

 

The consideration receivable in respect of certain sales for which performance obligations have been satisfied at period end and for which the Group has received prepayment under the terms of the offtake agreement, remain subject to pricing adjustments with reference to market prices at the date of finalisation. Under the Group's accounting policies, the fair value of the consideration is determined, and the remaining receivable is adjusted to reflect fair value. Management estimated the forward price based on the LME 3-month tin price that is expected when the open shipments will be finalised. As at 31 August 2022, the tin price had declined significantly since the provisional payments received and therefore the Group recognised a negative receivable at fair value through profit or loss of £519 321 (August 2021: receivable of £465 529 and February 2022: receivable of £812 594).

 

3.     Adoption of new and revised standards

 

A number of new and amended standards and interpretations issued by IASB have become effective for the first time for financial periods beginning on (or after) 1 March 2021 and have been applied by the Group in this interim financial information. None of these new and amended standards and interpretations had a significant effect on the Group because they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.

 

Accounting standards and interpretations not applied

 

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods and which have not been adopted early.

 

4.     Segmental reporting

 

The reporting segments are identified by the management steering committee (who are considered to be the chief operating decision-makers) by the way that the Group's operations are organised. As at 31 August 2022, the Group operated within two operating segments, tin exploration and operational activities in Namibia and tin exploration activities in South Africa.

 

Segment results

 

The following is an analysis of the Group's results by reportable segment.

 

	South Africa		Namibia		Total
	£		£		£
Period ended 31 August 2022
Results
Revenue	33 478		4 693 131		4 726 609
Associated costs	(5 229)		(6 485 826)		(6 491 056)
Segmental profit/(loss)	28 249		(1 792 695)		(1 764 446)
Period ended 31 August 2021
Results
Revenue	17 778		5 055 559		5 073 337
Associated costs	(2 006)		(4 498 287)		(4 500 293)
Segmental profit	15 772		557 271		573 044
Year ended 28 February 2022
Results
Revenue	34 444		13 580 600		13 615 045
Associated costs	(30 843)		(10 693 637)		(10 724 480)
Segmental profit	3 601		2 886 963		2 890 564

 

The reconciliation of segmental gross loss to the Group's loss before tax is as follows:

 

	Period ended 31 August 2022 £	Period ended 31 August 2021 £		Year ended 28 February 2022 £
Segmental loss	(1 764 446)		573 044		2 890 564
Unallocated costs	(1 790 616)		(849 033)		(2 252 700)
Other income	-		-		61 755
Finance income	21 368		-		6 545
Finance costs	(186 874)		(228 285)		(316 365)
Profit/(loss) before tax	(3 720 569)		(504 274)		389 798

 

Unallocated costs are mainly comprised of corporate overheads and costs associated with being listed in London.

 

Other segmental information

	South Africa		Namibia		Total
	£		£		£
As at 31 August 2022
Intangible assets	12 871		6 711 027		6 723 898
Other reportable segmental assets	95 428		30 766 260		30 861 688
Other reportable segmental liabilities	(66 939)		(13 437 197		(13 504 136)
Unallocated net liabilities	-		-		1 317 576
Total consolidated net assets	41 360		24 040 089		25 399 025
As at 31 August 2021
Intangible assets	12 718		6 182 907		6 195 625
Other reportable segmental assets	98 119		17 326 294		17 424 413
Other reportable segmental liabilities	(63 974)		(2 080 988)		(2 144 962)
Unallocated net assets	-		-		5 677 317
Total consolidated net assets	46 863		21 428 214		27 152 393
As at 28 February 2022
Intangible assets	12 565		5 043 165		5 055 730
Other reportable segmental assets	70 564		24 119 470		24 190 033
Other reportable segmental liabilities	(63 006)		(4 038 840)		(4 101 846)
Unallocated net assets	-		-		2 317 939
Total consolidated net assets	20 122		25 123 795		27 461 857

 

Unallocated net assets/liabilities are mainly comprised of cash and cash equivalents and the borrowings which are managed at a corporate level.

5.     Revenue

	Period ended 31 August 2022 £		Period ended 31 August 2021 £	Year ended 28 February 2022 £
Revenue from the sale of tin	4 723 857		5 040 321		13 717 620
Revenue from the sale of sand	33 478		17 778		34 444
Total revenue from customers	4 757 335		5 058 099		13 752 064
Other revenue - change in fair value of customer contract	(30 726)		15 238		(137 019)
	4 726 609		5 073 337		13 615 045

 

6.     Cost of sales

	Period ended 31 August 2022 £		Period ended 31 August 2021 £	Year ended 28 February 2022 £
Costs of production	5 049 956		3 510 718		8 057 083
Smelter charges	339 978		268 818		748 892
Logistics costs	59 328		41 523		126 086
Government royalties	275 114		138 090		370 457
	5 724 376		3 959 149		9 302 518

 

7.     Administrative expenses

 

The loss for the period has been arrived at after charging:

 

	Period ended 31 August 2022 £		Period ended 31 August 2021 £	Year ended 28 February 2022 £
Staff costs	1 083 726		506 904		1 269 882
Depreciation of property, plant & equipment	113 185		97 166		221 948
Professional fees	443 781		132 991		621 379
Travelling expenses	150 450		56 969		96 956
Uis administration expenses	266 779		230 007		660 476
Auditor's remuneration	5 000		1 500		95 000
Other costs	494 374		364 641		709 022
	2 557 296		1 390 177		3 674 662

 

Other costs are mainly comprised of corporate overheads necessary to run the South African head office and the costs associated with being listed in London.

 

8.     Finance cost

	Period ended 31 August 2022 £		Period ended 31 August 2021 £	Year ended 28 February 2022 £
Interest on lease liability	15 882		21 060		42 630
Interest on environmental rehabilitation liability	17 209		12 173		12 080
Bank interest	95 900		60 891		102 655
Interest on loan notes	-		68 836		68 836
Amortisation of warrant charge	-		37 594		37 594
Other interest	57 882		27 731		52 570
	186 874		228 285		316 365

 

9.     Taxation

 

The tax expense represents the sum of the tax currently payable and deferred tax.

 

	Period ended 31 August 2022 £		Period ended 31 August 2021 £	Year ended 28 February 2022 £
Factors affecting tax for the period:
The tax assessed for the period at the Guernsey corporation tax charge rate of 0%, as explained below:
Loss before taxation	(3 720 569)		(504 274)		389 798
Loss before taxation multiplied by the Guernsey Corporation tax charge rate of 0%	-		-		-
Effects of:
Differences in tax rates (overseas jurisdictions)	(615 188)		(452 848)		(525 598)
Tax losses carried forward	615 188		452 848		525 598
Movement in deferred tax	888 933		-		(864 199)
Tax for the period	888 933		-		(864 199)

 

Accumulated losses in the subsidiary undertakings for which there is an unrecognised deferred tax asset are £5 131 401 (August 2021: £3 919 522 and February 2022: £4 290 665).

 

10.  Loss per share from continuing operations

 

The calculation of a basic loss per share of 0.25 pence (August 2021: loss per share of 0.07 pence and February 2022: loss per share of 0.08 pence), is calculated using the total loss for the period attributable to the owners of the Company of £2 680 820 (August 2021: £692 251 and February 2022: £815 645) and the weighted average number of shares in issue during the period of 1 064 247 295 (August 2021: 1 016 465 204 and February 2022: 1 064 247 295).

 

Due to the loss for the period, the diluted loss per share is the same as the basic loss per share. The number of potentially dilutive ordinary shares, in respect of share options, warrants and shares to be issued as at 31 August 2022 is 131 220 649 (August 2021: 84 895 572 and February 2022: 76 261 762). These potentially dilutive ordinary shares may have a dilutive effect on future earnings per share.

 

11.  Intangible assets

	Exploration and evaluation assets		Computer software		Total
Cost	£		£		£
As at 31 August 2021	6 080 069		121 637		6 201 706
Additions for the period	741 977				741 977
Transfer to mining asset	(1 058 602)				(1 058 602)
Transfer to mining asset under construction	(678 467)				(678 467)
Exchange differences	(29 248)		(1 465)		(30 713)
As at 28 February 2022	5 055 729		120 172		5 175 901
Additions for the period	1 622 407		-		1 622 407
Exchange differences	45 761		2 246		48 007
As at 31 August 2022	6 723 897		122 418		6 846 315
Accumulated Depreciation
As at 31 August 2021	-		6 081		6 081
Charge for the period	-		22 112		22 112
Exchange differences	-		(75)		(75)
As at 28 February 2022	-		28 119		28 119
Charge for the period	-		5 285		5 285
Exchange differences	-		(36)		(36)
As at 31 August 2022	-		33 368		33 368
Net Book Value
As at 31 August 2022	6 723 897		89 050		6 812 947
As at 28 February 2022	5 055 729		92 053		5 147 782
As at 31 August 2021	6 080 069		115 556		6 195 625

 

The additions to the evaluation and exploration asset during the period mainly comprise of expenses capitalised as part of the Phase 2 exploration drilling project, the metallurgical testwork programme, environmental studies and region exploration projects.