Half-year Results
H2 2024 interim results show loss of £1.022m and cash decrease to £38.8k amid asset reorganisation and cost reduction.
- Loss before income tax £1,022,322 (prior £365,705)
- Administrative expenses £222,877 (prior £433,541)
- Cash at end of period £38,821 (prior £195,157)
- Exploration & evaluation assets £79,300 (prior £192,269)
- Total equity £1,836,002 (prior £1,718,876)
- Basic loss per share 0.1p (prior 0.06p)
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Cloudbreak Discovery Plc (LSE: CDL), a leading London listed royalty company and natural resources project generator, is pleased to announce its Interim Results for the six months ended 31 December 2024 ("H2 2024" or the "Period").
Chairmans review of interim period
I am pleased to provide Cloudbreak shareholders with an update on the Company's developments in the six months ended 31 December 2024.
The period has seen the continuation of the re-organising of the assets and investments the Company has, which resulted in a desire to continue with the present undervalued asset package to build a foundation to work from and seek to prove the underlying values. Fostering and supporting the existing projects and investments should unlock some of this value.
Cloudbreak continued to also reduce capital expenditures and operational costs while seeking partnerships for the existing projects it holds. The Company will continue to focus on project generation and establishing direct involvement in early-stage projects whereby it can make a strong financial impact on acquired assets so as to realise multiples of value going forward. The continued building on the existing foundation of core assets, as well as new ones, will be how the Company proves underlying values.
Subsequent to 31 December 2023, I joined the Board as Executive Chairman, to aid the business development efforts, focusing on identifying opportunities, and driving revenue growth.
It is with cautious optimism that we look forward to the next financial period, 2024 was a difficult period of hard-won lessons, but these lessons will be valuable as we go into H2 2025.
We would like to take this opportunity to thank our shareholders for their patience and continued support, and we look forward to reporting on our progress moving forward.
Peter Huljich
Executive Chairman
| Continued operations | Note | 6 months to 31 December 2024 Unaudited £ | 6 months to 31 December 2023 Unaudited £ |
|---|---|---|---|
| Profit on disposal of exploration & evaluation asset sales | 11,732 | 88,569 | |
| Administrative expenses | (222,877) | (433,541) | |
| Foreign exchange gain/(losses) | 41,054 | (7,623) | |
| Operating loss | (170,091) | (352,595) | |
| Net finance income | 175,057 | 150,307 | |
| Other income | - | 8,242 | |
| Other gains/(losses) | (845,994) | 72,737 | |
| Gain/(Loss) on disposals of investments | 28,174 | (231,611) | |
| Impairment of loans | (123,705) | (67,303) | |
| Unrealised fair value gain/(loss) on investments | (85,763) | (11,256) | |
| Income from discontinued operations | - | 65,774 | |
| Loss before income tax | (1,022,322) | (365,705) | |
| Income tax | - | - | |
| Loss for the year attributable to owners of the Parent | (1,022,322) | (365,705) | |
| Basic and Diluted Earnings Per Share attributable to owners of the Parent during the period (expressed in pence per share) | 8 | (0.1)p | (0.06)p |
| 6 months to 31 December 2024 Unaudited £ | 6 months to 31 December 2023 Unaudited £ | ||
| Loss for the period | (1,022,322) | (365,705) |
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
| Continued operations | Note | 6 months to 31 December 2024 Unaudited £ | 6 months to 31 December 2023 Unaudited £ | |||
|---|---|---|---|---|---|---|
| Currency translation differences | (76,408) | (9,181) | ||||
| Other comprehensive income for the period, net of tax | (1,098,730) | (374,886) | ||||
| Total Comprehensive Income attributable to owners of the parent | (1,098,730) | (374,886) | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||
| Note | Share capital £ | Share premium £ | Reverse asset acquisition reserve £ | Other reserves £ | Retained losses £ | Total £ |
| Balance as at 1 July 2023 | 778,635 | 16,753,221 | (4,134,019) | 519,045 | (11,917,424) | 1,999,458 |
| Loss for the year | - | - | - | - | (365,705) | (365,705) |
| Currency translation differences | - | - | - | (9,181) | - | (9,181) |
| Total comprehensive income for the year | - | - | - | (9,181) | (365,705) | (374,886) |
| Options cancelled | - | - | - | (56,143) | 56,143 | - |
| Warrants cancelled | - | - | - | (56,795) | 56,795 | - |
| Total transactions with owners, recognised directly in equity | - | - | - | (112,938) | 112,938 | - |
| Balance as at 31 December 2023 | 778,635 | 16,753,221 | (4,134,019) | 396,926 | (12,170,191) | 1,624,572 |
| Balance as at 1 July 2024 | 900,167 | 17,239,349 | (4,134,019) | 162,365 | (12,448,986) | 1,718,876 |
| Loss for the year | - | - | - | - | (1,022,322) | (1,022,322) |
| Currency translation differences | - | - | - | (76,408) | - | (76,408) |
| Total comprehensive income for the year | - | - | - | (76,408) | (1,098,730) | |
| Issue of shares | 403,865 | 811,991 | - | - | - | 1,215,856 |
| Total transactions with owners, recognised directly in equity | 403,865 | 811,991 | - | - | - | 1,215,856 |
| Balance as at 31 December 2024 | 1,304,032 | 18,051,340 | (4,134,019) | 85,957 | (13,471,308) | 1,836,002 |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | Group | |||||
| Note | 6 months to 31 December 2024 Unaudited £ | 6 months to 31 December 2023 Unaudited £ | ||||
| Cash flows from operating activities | ||||||
| Loss before income tax | (1,022,322) | (365,705) | ||||
| Adjustments for: | ||||||
| Gain/Loss on sale of investments | (28,174) | 231,611 | ||||
| Change in fair value of investments | 85,763 | 11,256 | ||||
| Change in fair value of debentures | (10,014) | - | ||||
| Impairment of loans | 123,705 | 74,658 | ||||
| Net finance income | (175,057) | (150,307) | ||||
| Unrealised foreign exchange | (103,477) | (61,416) | ||||
| Decrease in trade and other receivables | (16,893) | (64,342) | ||||
| (Decrease)/Increase in trade and other payables | 921,855 | (439,864) | ||||
| Net cash used in operating activities | (224,614) | (764,109) | ||||
| Cash flows from investing activities | ||||||
| Funds received on sale of exploration assets | - | 42,990 | ||||
| Sale of investments | 5 | 68,278 | 69,331 | |||
| Interest received | - | 41,020 | ||||
| Net cash generated from (used in) investing activities | 68,278 | 153,341 | ||||
| Cash flows from financing activities | ||||||
| Net movement in borrowings | - | 201,993 | ||||
| Convertible loan notes | - | 325,000 | ||||
| Net cash generated from financing activities | - | 526,993 | ||||
| Net decrease in cash and cash equivalents | (156,336) | (83,775) | ||||
| Cash and cash equivalents at beginning of year | 195,157 | 244,074 | ||||
| Cash and cash equivalents at end of year | 38,821 | 160,299 | ||||
Major non-cash transactions
During the period ended 31 December 2024, the Company issued 403,864,936 shares with a total value of £1,215,856 to settle outstanding debts that were owed.
NOTES TO THE FINANCIAL STATEMENTS
- General information
- Basis of preparation of Financial Statements
The condensed interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Statements" as adopted by the United Kingdom and the Disclosure and Transparency Rules of the UK Financial Conduct Authority. The condensed interim financial statements should be read in conjunction with the annual financial statements for the period ended 30 June 2024, which have been prepared in accordance with UK-adopted international accounting standards.
Statutory financial statements for the period ended 30 June 2024 were approved by the Board of Directors on 30 January 2025 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified and concluded that a material uncertainty exists that may cast doubt on the group's ability to continue as a going concern. The condensed interim financial statements are unaudited.
Going concern
These financial statements have been prepared on the going concern basis. Given the Group's current cash position and its demonstrated ability to raise capital, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the condensed interim financial statements for the period ended 31 December 2024.
The factors that were extant at 30 June 2024 are still relevant to this report and as such reference should be made to the going concern note and disclosures in the 2024 Annual Report and Financial Statements.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2024 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.cloudbreakdiscovery.com. The key financial risks are liquidity risk, credit risk, interest rate risk and unlisted investments.
Critical accounting estimates
2.1. Accounting policies
The same accounting policies, presentation and methods of computation are followed in the interim consolidated financial information as were applied in the Group's latest annual audited financial statements except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 July 2024, and will be adopted in the 2025 annual financial statements.
Changes in accounting policy and disclosures
New standards and amendments adopted by the Group
The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended 31 December 2024 but did not result in any material changes to the financial statements of the Group or Company.
| Standard | Impact on initial application | Effective date |
| IAS 21 (Amendments) | Lack of Exchangeability | 1 January 2025 |
| IAS 9 (Amendments) | Classification and measurement of Financial Instruments | 1 January 2026 |
- Dividends
- Intangible assets
As at December 31, 2024, the Group's exploration and evaluation assets are as follows:
| Exploration & Evaluation Assets | 6 months to 31 December 2024 £ | 6 months to 31 December 2023 £ |
|---|---|---|
| South Timmins, British Columbia | 1 | 1 |
| Atlin West Property | 1 | 1 |
| Yak Property | 1 | 1 |
| Rizz Property | 1 | 1 |
| Icefall Property | 1 | 1 |
| Northern Treasure Property, British Columbia | - | 110,435 |
| Apple Bay Property, British Columbia | 1 | 1 |
| Bob Cat Property, United States | 44,863 | 47,927 |
| Rupert Property, British Columbia | 1 | 1 |
| Elk Creek Property, United States | 34,430 | 33,900 |
| As at 31 December | 79,300 | 192,269 |
As at December 31, 2024, the Group's reconciliation of exploration and evaluation assets are as follows:
Group
| Exploration & Evaluation Assets | 6 months to 31 December 2024 £ | 6 months to 31 December 2023 £ |
|---|---|---|
| Cost | ||
| As at 1 July | 80,870 | 236,518 |
| Additions | - | - |
| Disposals | - | (42,990) |
| Foreign exchange | (1,570) | (1,259) |
| As at 31 December | 79,300 | 192,269 |
Investments held by subsidiaries
Investments held by subsidiaries
Financial assets at fair value through profit or loss are as follows:
| Level 1 £ | Level 2 £ | Level 3 £ | Total £ | |
|---|---|---|---|---|
| 1 July 2024 | 417,174 | - | 43 | 417,217 |
| Additions | - | - | - | - |
| Disposals | (68,278) | - | - | (68,278) |
| Fair value changes | (85,763) | - | - | (85,763) |
| Realised gain on investments | 28,174 | - | - | 28,174 |
| Foreign exchange | (5,877) | - | (12) | (5,889) |
| 31 December 2024 | 285,430 | - | 31 | 285,461 |
Investments were classified as held for trading and recorded at their fair values based on quoted market prices (if available). Investments that do not have quoted market prices are measured at cost due to the limited amount of information available related to the fair value of the investments.
Debentures Receivable
| 6 months to 31 December 2024 £ | 6 months to 31 December 2023 £ | |
|---|---|---|
| Opening | 1,581,428 | 2,059,060 |
| Additions | - | - |
| Amount payable | - | - |
| Fair Value Movement | 10,014 | (17,025) |
| At end of period | 1,591,442 | 2,042,035 |
On 31 May 2022, the Group entered into an agreement with G2 Energy Corp. ('G2') on the Masten Unit Energy Project located in Cochran County Texas, United States. Whereby the Company will provide G2 with a $2,000,000 USD debenture on a two-year term in exchange for a 3.25% Overriding Royalty Interest in the Project. G2 will pay 12% per annum interest to the Company, calculated and paid quarterly in cash or shares at the discretion of the Company. As part of the agreement, the Group received 6,500,000 warrants for G2, however management have deemed that these warrants have no value at this stage as the assets held by G2 are predominantly made up of the early-stage exploration assets on which they have received from the Company. The group is in regular communication with G2 and is monitoring the results of its exploration activities that will be undertaken as the result of the funding by the Group to G2. As at 31 December 2024, the residual value of the debenture in pound sterling was £1,591,442.
Convertible loan notes
Group
| 6 months to 31 December 2024 £ | 6 months to 31 December 2023 £ | |
|---|---|---|
| As at 1 July | 43,248 | - |
| Additions | - | 340,000 |
| Interest on the loans (12%) | 5,190 | 20,400 |
| As at 31 December | 48,438 | 360,400 |
Earnings per share
The calculation of the basic loss per share of 0.1p (2023: 0.06p) is based on the loss attributable to equity owners of the group of £922,338 (2023: loss of £365,705), and on the weighted average number of ordinary shares of 905,140,901 (2023: 607,678,805) in issue during the period.
Events after the reporting date
On 19 March 2025, Peter Huljich was appointed as a director of the Company. He was appointed as an Executive Chairman.
- Approval of interim financial statements
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