ANNUAL REPORT 2017
Beowulf Mining plc Annual Report 2017
Beowulf projects and Nordic mineral
deposits/mines
Beowulf projects
Graphite
Ferrous
Polymetals
Major nearby active mines/deposits
Base metals, large
Base metals, medium
Ferrous metals
Precious metals
Special metals
Graphite
Skaland
Suurikuusikko Au
Kiirunavaara Fe
Kolari
Kevitsa
Nunasvaara
deposit
Kallak
Malmberget Fe
Joutsijärvi
Kemi Cr
Siilinjärvi
Pho
Kylylahti
Haapamäki
Pitkäjärvi
Rääpysjärvi
Viistola
SAINT PETERSBURG
HELSINKI
TALINN
Kristineberg
Woxna
OSLO
Garpenbergsfältet
Sala
STOCKHOLM
Zinkgruvan
Åtvidaberg
COPENHAGEN
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Contents
Company Profile
Company Strategy
Chairman’s Statement
Review of Operations and Activities
Board of Directors and Senior Management
Strategic Report
Report of the Directors
Remuneration Report
Corporate Governance Report
Independent Auditor’s Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Company Statement of Financial Position
Consolidated Statement of Changes in Equity
Company Statement of Changes in Equity
Consolidated Statement of Cash Flows
Company Statement of Cash flows
Notes to the Consolidated Financial Statements
Company Information
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Beowulf Mining plc Annual Report 2017 Beowulf Mining plc Annual Report 2017
(cid:36)o(cid:78)pan(cid:90) (cid:49)rofile
Beowulf Mining plc (“Beowulf” or the “Company”) is
listed on London’s Alternative Investment Market (“AIM”)
(Ticker: BEM) and Stockholm’s AktieTorget (Ticker: BEO).
The Company’s most advanced project is the Kallak
magnetite iron ore deposit located approximately 40
kilometres (“km”) west of Jokkmokk in the County
of Norrbotten, Northern Sweden. The Company is
currently going through the process of obtaining an
Exploitation Concession for Kallak North (the “Exploitation
Concession”). Testwork on Kallak ore has proved that
a ‘super’ high grade magnetite concentrate can be
produced, yielding over 71 per cent iron content, with low
levels of deleterious elements, including phosphorous and
sulphur, lending itself to pelletisation and consumption in
Direct Reduction Iron (“DRI”) facilities in Europe and the
Middle East, and attracting a potential price premium.
Local infrastructure is excellent, with all-weather gravel
roads passing through the project area, and all parts
easily reached by well used forestry tracks. A major
hydroelectric power station with associated electric power-
lines is located only a few kilometres to the south east.
The nearest railway (the Inlandsbanan or ‘Inland Railway
Line’) passes approximately 40km to the east. This railway
line is connected at Gällivare with the ‘Ore Railway Line’,
used by LKAB for delivery of its iron ore material to the
Atlantic harbour at Narvik (Norway) or to the Botnian Sea
harbour at Luleå (Sweden).
The Company has a portfolio of graphite exploration
prospects in Finland, which are controlled by its 100 per
cent owned subsidiary Oy Fennoscandian Resources AB
(“Fennoscandian”). The Aitolampi project is a priority,
with drilling and extensive metallurgical testwork being
undertaken in 2017.
The Company is also active in southern Sweden, exploring
its Åtvidaberg nr 1 (“Åtvidaberg”) exploration licence.
The exploration focus is on polymetallic discoveries, but
mainly copper and zinc. The Company also has the Sala
licence, located in Västmanland County. The licence
is prospective for lead-zinc-silver mineralisation and is
situated 200 metres (“m”) west of the former Sala silver
mine.
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Beowulf Mining plc Annual Report 2017
The management team’s approach is to build strong working relationships and partnerships with local communities and
key stakeholders in Sweden and Finland, and is encapsulated in the following mission statements:
"Visar respekt fôr alla intressenter"
"Vill samverka lokalt"
"Står fôr ansvarsfull utveckling"
"Kunnioittaa kaikkia sidosryhmiä”
“Toimia yhteistyössä paikallisten kanssa”
“Vastuullisuus”
“Showing respect to all our stakeholders”
“Becoming a local partner”
“Delivering responsible development”
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Beowulf Mining plc Annual Report 2017
Beowulf Mining plc Annual Report 2017
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The Company continues to advance its Kallak project
whilst waiting for an Exploitation Concession to be
awarded, in addition to progressing with its portfolio of
exploration assets in Sweden and Finland.
Beowulf is developing a high-quality asset base, which is
diversified by geography and commodity, enabling it to
simultaneously advance several projects up the mining
value curve and create value for investors.
The Company’s priority remains the award of the
Exploitation Concession for Kallak North and taking
the Kallak project forward thereafter. As the Company
advances work on Kallak, it will continue to consider
the introduction of a strategic partner/investor who
understands the value of Kallak as a high-quality asset,
which could be in production within four to five years.
In addition to Kallak, Beowulf has broadened its
exploration interests, and with the Aitolampi graphite
project it is making solid progress. The Company’s
ambition is to develop a graphite mining operation, within
three years, focusing on adding value to mine production,
and capturing the value usually lost to others downstream
in the supply chain. Positive cashflows will support the
Company’s other exploration activities.
The Board of Directors continues to look beyond the
Company for value creation opportunities.
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Chairman's Statement
Dear Shareholders
Introduction
During the year, we made substantial progress on our
exploration projects. At the Aitolampi graphite project in
Finland, we completed a phase one drilling programme
and undertook several rounds of metallurgical test-work
in Canada and Germany. At the Åtvidaberg exploration
licence in southern Sweden, we held a ‘technical expert’
workshop, conducted fieldwork, and 3D modelled
the historic mine workings, all of which enhanced our
understanding of its potential. Our work programmes
position us well in 2018 for defining a maiden resource
and commencing a Scoping Study at Aitolampi, and
potentially defining drill targets at Åtvidaberg.
In 2017, the Company further strengthened its case
for the award of an Exploitation Concession at Kallak
North by completing a Heritage Impact Assessment
(“HIA”). We also injected new momentum into Kallak,
first with the Copenhagen Economics’ ‘Big Picture’ study,
demonstrating the local and regional economic impact
that Kallak could have on Jokkmokk and the County of
Norrbotten, and presenting the Company’s approach to
delivering success through partnership with the community
and key infrastructure players, and secondly, with the
commencement of a Scoping Study with SRK Consulting
(UK) Ltd (“SRK”). SRK has undertaken a significant
number of technical studies for companies operating in
the Nordic Region and it has the relevant expertise to
work with the Company on designing and engineering a
modern and sustainable mining project at Kallak North,
as well as assessing the broader potential of the Kallak
South deposit.
Kallak
The Company is steadfast in its belief that the Kallak
application fully satisfies the requirements of the Swedish
Mining Act and Environmental Code, but in 2017 there
were more twists and turns in the Exploitation Concession
process.
In March 2017, the Swedish National Heritage
Board (Riksantivarieämbetet, “RAÄ”) and the Swedish
Environmental Protection Agency (Naturvårdsverket, “NV”)
completed a review on the sufficiency of information
provided in the Company’s application, with respect
to the interaction between Kallak and Laponia. They
concluded that Kallak would not directly impact Laponia
but suggested that the Company should provide more
details to describe the possible indirect effects of a mining
operation at Kallak on Laponia, the interaction of mining
and reindeer herding, and matters related to transport.
Even though the RAÄ and NV failed to be specific, as
requested by the Mining Inspectorate, as to where the
Company’s Environmental Impact Assessment (“EIA”)
might be insufficient in the detail it provides, we produced
a HIA which was submitted to the Mining Inspectorate in
April 2017.
When the County Administrative Board (“CAB”) consulted
with these two agencies later in the year, they confirmed to
the CAB that the information provided by the Company is
possibly sufficient for the CAB to provide its opinion to the
Government on whether mining is an appropriate land
use for Kallak with reference to Chapters 3 and 4 of the
Environmental Code.
The RAÄ and NV gave the Company recognition for the
additional information provided, namely a submission to
the CAB in December 2016 and the HIA. However, they
did not take any position regarding the potential impact
on reindeer herding caused by Kallak and suggested
that the CAB may wish to consult with Sametinget on this
matter. The RAÄ and NV considered that the claim by
Sametinget for a national interest for reindeer herding at
Kallak, despite being made four years after the Swedish
Geological Unit’s (“SGU”) designation, is relevant and
needs to be considered.
Material developments during the year included, in June
2017, the Mining Inspectorate returning the Company’s
application to the Government, and importantly
confirming that the Kallak North EIA is consistent, in
the detail provided, in meeting the requirements of the
Supreme Administrative Court’s (“SAC”) Norra Kärr
judgement, and later in November 2017, the latest
statement from the CAB.
In September 2017, the Company published the
Copenhagen Economics’ Study titled ‘Kallak - A real
asset, and a real opportunity to transform Jokkmokk’.
The Study built on work carried out by the Company and
others, including the 2015 independent socio-economic
study initiated by Jokkmokks Kommun, completed by
consultants Ramböll, which in its findings concluded
that a mining development at Kallak would create direct
and indirect jobs, increase tax revenues and slow down
population decline, and the 2010 study by the Economics
Unit of Luleå University of Technology, ‘Mining Investment
and Regional Development: A Scenario-based Assessment
for Northern Sweden’.
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Beowulf Mining plc Annual Report 2017 Chairman's Statement
length of at least 350m along the main conductive zone
drill-tested, dipping between 40 and 50 degrees to the
southwest. The main EM zone extends for 700m.
In October 2017, we announced high grade concentrate
results, from metallurgical testwork carried out by SGS
in Canada, on composite samples from the Aitolampi
project. For three samples, the combined grades ranged
from 96.8 per cent to 97.5 per cent Total Carbon. We
achieved a superior metallurgical response from all three
samples compared with grab samples from outcrops
analysed earlier in the year. The process flowsheet
used was simple and proved to be very efficient. The
produced concentrates were despatched for further
testwork to ProGraphite in Germany to determine
their marketability and potential applications. Results
from this work were very promising showing that both
acid and alkaline purification methods can produce a
very clean concentrate of greater than 99.41 per cent
Total Carbon. Aitolampi concentrates’ chemical and
physical properties indicate potential to serve lithium ion
battery manufacturers and could also suit many other
applications.
The focus remains to put one of our graphite projects into
production within three years, and, at this time, Aitolampi
is the front runner.
Åtvidaberg
In late April 2017, the Company held a three-day field
workshop at Åtvidaberg, which brought together the
Company’s exploration team and external experts with
major mining company exploration experience, relevant to
Bergslagen, volcanogenic massive sulphide mineralisation
and modern exploration technologies. The workshop
provided the opportunity to brainstorm ideas and develop
a plan for the year, which featured both fieldwork and
desktop studies focused on understanding historical
mining around Bersbo.
Åtvidaberg represents early stage exploration, but offers
real potential for Beowulf, as signified by past discoveries
and historic mines.
The Study showed that a mining operation at Kallak has
the potential to create 250 direct jobs and over 300
indirect jobs in Jokkmokk; jobs that could be sustained
over a period of 25 years or more. In addition, Kallak
has the potential to generate SEK 1 billion in tax revenues,
considering the case where 70 per cent of the mine’s
workforce are based locally, with annual tax revenues
of SEK 40 million over a 25 year mine life; tax revenues
which would help to develop and sustain public services
and infrastructure in Jokkmokk, which are at risk due to a
lack of new investment and job creation in the community,
a declining population, and an ageing population.
Despite the Study, and the commencement of a Scoping
Study with SRK, on 30 November 2017, the CAB
responded to questions from the Government and
recommended that an Exploitation Concession for Kallak
North not be granted. The CAB’s statement contradicted
its July 2015 position, when it supported the economic
case for Kallak, and in the Company’s opinion, the CAB
has failed to use the socio-economic assessment criteria
set out in the Environmental Code, which put emphasis
on safeguarding investment and job creation, and giving
consideration for the municipalities’ financial health.
Instead, the CAB presented a scenario of State investment
in infrastructure being necessary to support the mine,
which has never been proposed or suggested by the
Company. It is the Company’s opinion that the analysis
by the CAB is flawed, and its conclusions are biased and
cannot be supported.
The Board remains firmly committed to the responsible
development of a modern, sustainable, and innovative
mining operation at Kallak in partnership with the local
community. This remains our ambition, and we now wait
for the Government to decide on our application.
Graphite Portfolio
We made real progress on our graphite portfolio during
the year. Starting with metallurgical testwork results for
composite samples taken from the Haapamäki, Pitkäjärvi
and Aitolampi graphite prospects. We then completed
1,197m of drilling at Aitolampi. The eight-hole diamond
drill programme confirmed that the Electro-magnetic
(“EM”) anomalies identified are associated with wide
zones of graphite mineralisation, with a mineralised strike
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Beowulf Mining plc Annual Report 2017 Beowulf Mining plc Annual Report 2017
Shareholder Base
Beowulf is approximately 99 per cent owned by retail
shareholders in Sweden and the UK. The number of
Swedish shareholders on the share register continued
to grow during the year and, at 30 April 2018,
approximately 58.4 per cent of the Company was
owned by Swedish shareholders. I would like to take the
opportunity to thank our existing and new shareholders for
their continued support.
Raising Finance
Maintaining sufficient funding to continue to invest
in projects is the biggest challenge for any mining
exploration and development company, and without
investment funds we cannot create shareholder value.
During the year we undertook a single fundraising. On
17 May 2017, we announced a subscription for new
ordinary shares raising £1.5 million before expenses,
completed at a price of 6.5 pence per share.
Financial Performance
Loss before and after taxation attributable to the owners
of the parent at £1.04 million is higher than the loss
recorded in 2016 of £0.63 million, this increase is largely
attributable to impairment costs incurred of £0.18 million
and a share-based payment expense of £0.2 million. The
impairment costs assessed relate to projects Nautijaur
(£27,621) and Piippumäki (£155,510). The share-based
payment expense relates predominantly to new share
options awarded in the year.
Basic loss per share of 0.20 pence increased by 54 per
cent on last year (2016: loss per share of 0.13 pence).
Approximately £1.59 million in cash was held at the year
end. During the year £0.94 million (2016: £0.62 million)
was spent on exploration and capitalised.
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Beowulf Mining plc Annual Report 2017
Corporate
It was announced in September 2017 that Mr Bevan
Metcalf, former Non-Executive Chairman, would retire on
the appointment of a successor, and my appointment was
announced on 30 October 2017. As I commented at the
time, I am very pleased to have taken over stewardship
of Beowulf from Bevan, and I would like to reiterate my
thanks to him for his contribution to the Company.
Staff
On behalf of the Board, I would like to express my sincere
thanks to our staff for their hard work and support during
the past 12 months.
Outlook
The Company is looking forward to a busy 2018, with
exploration programmes and drilling planned at our
Aitolampi graphite project and on our Åtvidaberg licence
and broader activity planned across the rest of our
graphite portfolio. We are also maintaining a keen eye
for any merger and acquisition opportunities.
The Swedish elections may delay a final decision on
the Kallak project, but in 2017 the Company injected
momentum back into the project with the Copenhagen
Economics’ ‘Big Picture’ study, and the commencement of
a Scoping Study with SRK. Kallak is an important project,
and it is right that the Government takes its time to be
thorough in its review, and to complete a rigorous and
objective assessment of the facts.
Though shareholders may be frustrated with no definitive
timeline for a decision, Kallak is an important project for
Jokkmokk and the County of Norrbotten and should be
treated with the care and attention it deserves, and an
observance of due process.
The Government can look at the ‘Big Picture’, the
interdependencies of capital projects in the region,
mining, rail, port, and power, and the potential for Kallak
to play its part in a sustainable economic future for
Jokkmokk and the County of Norrbotten.
In Jokkmokk, no other Company has invested SEK77
million and created an opportunity like Kallak, that has
the potential to transform the town, and deliver a thriving,
diversified and sustainable economy for the people living
there.
We hope that the Government now looks objectively at
the facts, the Company’s investment, its commitment to
developing a modern and sustainable mining operation,
and the approach we have taken with all our stakeholders
in Jokkmokk, including the Saami villages, to develop
the Kallak project in partnership with them. We are
willing to take all necessary precautions to minimise the
impact on reindeer herding and have also several times
stated that any eventual remaining impact shall be fully
compensated.
Göran Färm
Non-Executive Chairman
11 May 2017
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Review of Operations
and Activities
Sweden
Permits
Beowulf, via its subsidiaries, currently holds 10 exploration permits together with one registered application for an
Exploitation Concession, as set out in the table below:
Permit Name/Minerals
Permit ID
Area (km2)
Valid From
Valid Until
Parkijaure nr3 (Fe)1,4
2011:135
Parkijaure nr2 (Fe)1
Kallak nr1 (Fe)1,3
2008:20
2006:197
4.17
2.85
5.00
11/08/2011
11/08/2017
18/01/2008
18/01/2018
28/06/2006
28/06/2021
Kallak nr2 (Fe)1,4
2011:97
22.19
22/06/2011
22/06/2017
Kallak nr3 (Fe)1
2012:100
Parkijaure nr4 (Fe)1
Parkijaure nr5 (Fe)1
Ågåsjiegge nr2 (Fe)1
2012:59
2013:36
2014:10
5.56
7.60
6.22
09/08/2012
09/08/2018
04/05/2012
04/05/2018
04/03/2013
04/03/2019
11.14
24/02/2014
24/02/2020
Åtvidaberg nr1 (Pb,Zn,Cu, Ag)2
2016:51
225.12
30/05/2016
30/05/2019
Sala nr10 (Pb,Ag,Zn)2
2016:64
10.49
29/06/2016
29/06/2019
Notes:
(1) held by the Company’s wholly owned subsidiary, Jokkmokk Iron Mines AB (“JIMAB”).
(2) held by the Company’s wholly owned subsidiary, Beowulf Mining Sweden AB.
(3) an application for the Exploitation Concession was lodged on 25 April 2013 (Mines Inspector Official Diary nr 559/2013) and an
updated, revised and expanded application was submitted in April 2014. On 21 September 2016, the Company submitted a letter
to the Mining Inspectorate of Sweden, revising its application boundary to encompass both the Concession Area, delineated by the
Kallak North orebody, and the activities necessary to support a modern and sustainable mining operation.
(4) JIMAB has appealed the Mining Inspectorate’s decision not to extend these licences and is waiting for the appeal Court’s ruling. On
11 April 2018, a hearing was held in Luleå.
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Beowulf Mining plc Annual Report 2017
Review of Operations
and Activities
Introduction
The Kallak magnetite iron ore deposit is located
approximately 40km west of Jokkmokk in the County of
Norrbotten, 80km southwest of the major iron ore mining
centre of Malmberget, and approximately 120km to the
southwest of LKAB’s Kiruna iron ore mine.
The Company is currently going through the process
of obtaining an Exploitation Concession for Kallak
North. Testwork on Kallak ore has proved that a ‘super’
high grade magnetite concentrate can be produced,
yielding over 71 per cent iron content, with low levels of
deleterious elements, including phosphorous and sulphur,
lending itself to pelletisation and consumption in DRI
facilities in Europe and the Middle East, and attracting a
potential price premium.
hydroelectric power station with associated electric power-
lines is located only a few kilometres to the south east.
The nearest railway (the Inlandsbanan or ‘Inland Railway
Line’) passes approximately 40km to the east. This railway
line is connected at Gällivare with the ‘Ore Railway Line’,
used by LKAB for delivery of its iron ore material to the
Atlantic harbour at Narvik (Norway) or to the Botnian Sea
harbour at Luleå (Sweden).
Kallak Resource
The Kallak North and Kallak South orebodies are centrally
located and cover an area approximately 3,700m in
length and 350m in width, as defined by drilling. The
mineral resource estimate for Kallak North and South is
based on drilling conducted between 2010-2014, a total
of 27,895m were drilled, including 131 drillholes.
Local infrastructure is excellent, with all-weather gravel
roads passing through the project area, and all parts
easily reached by well used forestry tracks. A major
The latest resource statement for the Kallak project was
finalised on 28 November 2014, following the guidelines
of the JORC Code 2012 edition, summary as follows:
Project
Category
Kallak North
Kallak South
Global
Notes:
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Tonnage
Mt
105.9
17.0
12.5
16.8
118.5
33.8
Fe
%
27.9
28.1
24.3
24.3
27.5
26.2
P
%
0.035
0.037
0.041
0.044
0.036
0.040
S
%
0.001
0.001
0.003
0.005
0.001
0.003
1. The effective date of the Mineral Resource Estimate is 28 November 2014.
2. Resources have been classified as Indicated or Inferred, following the guidelines of the JORC Code, 2012 edition.
3. Cut-off grade of 15 per cent Fe has been used.
4. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
5. An exploration target of 90-100Mt at 22-30 per cent Fe represents potential ore below the pit shells modelled for this resource
statement, and in the gap between drilling defined Kallak South mineralised zones.
6. The resource statement has been prepared and categorised for reporting purposes by Mr. Thomas Lindholm, of GeoVista AB, Fellow
of the MAusIMM, following the guidelines of the JORC Code, 2012.
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Beowulf Mining plc Annual Report 2017
An overview of the interpreted mineralisation is shown in the diagram below.
The mineralised area at Kallak North is approximately
1,100m long, from south to north, and, at its widest part
in the centre, is approximately 350m wide.
The deepest drillhole intercept is located some 350m
below the surface in the central part of the mineralisation.
In the southern and northern parts, the intercepts are
shallower at 150-200m. However, in the northern
part, there are no barren holes below them, so the
mineralisation could continue at depth.
The investigations at Kallak South have been divided into
two parts, the northern and southern ends respectively. In
the northern part the mineralisation extends approximately
750m from north to south and has an accumulated width
of 350m. The deepest drillhole intercept is located some
350m below the surface in the southern-most part of the
mineralisation. In the southern part, the mineralisation
extends approximately 500m from north to south and has
a maximum width of just over 300m. The deepest drillhole
intercept is located some 200m to 250m below the
surface in the central part of the mineralisation.
Approximately 800m in between the southern and
northern parts of Kallak South has not been investigated
by systematic drilling. An exploration target of 90 million
tonnes (“Mt”) to 100Mt at 22-30 per cent iron has been
assigned to the area between the southern and northern
parts.
Further to the south, within the Parkijaure exploration
permits controlled by JIMAB, there are further known
magnetite occurrences, but the current level of
investigation does not permit the estimation of mineral
resources.
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Beowulf Mining plc Annual Report 2017 Review of Operations
and Activities
Application for an Exploitation Concession
2017 Update
The Company is steadfast in its belief that the Kallak
application fully satisfies the requirements of the Swedish
Minerals Act, the Environmental Code, and Swedish law,
but there were still more twists and turns in the Exploitation
Concession process in 2017.
In March 2017, the RAÄ and the NV completed a
review on the sufficiency of information provided in the
Company’s application, with respect to the interaction
between Kallak and Laponia. They concluded that Kallak
would not directly impact Laponia, but suggested that the
Company should provide more details to describe the
possible indirect effects of a mining operation at Kallak on
Laponia, the interaction of mining and reindeer herding,
and matters related to transport.
Even though the RAÄ and NV failed to be specific,
as requested by the Mining Inspectorate, as to where
the Company’s EIA might be insufficient in the detail
it provides, the Company produced a HIA, which was
submitted to the Mining Inspectorate in April 2017. A HIA
is not typically required in the prescribed process for an
Exploitation Concession.
When the CAB consulted with these two agencies later in
the year, they confirmed to the CAB that the information
provided by the Company is possibly sufficient for
the CAB to provide its opinion to the Government on
whether mining is an appropriate land use for Kallak
with reference to Chapters 3 and 4 of the Environmental
Code.
The RAÄ and NV gave the Company recognition for the
additional information provided, namely a submission to
the CAB in December 2016 and the HIA. However, they
did not take any position regarding the potential impact
on reindeer herding caused by Kallak and suggested
that the CAB may wish to consult with Sametinget on this
matter. The RAÄ and NV considered that the claim by
Sametinget for a national interest for reindeer herding at
Kallak, despite being made four years after the Swedish
Geological Unit’s designation, is relevant and needs to be
considered.
Other material developments during the year included,
in June 2017, the Mining Inspectorate returning the
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Company’s application to the Government, and
importantly confirming that the Kallak North EIA is
consistent, in the detail provided, in meeting the
requirements of the SAC Norra Kärr judgement, and later
in November 2017, a further statement from the CAB.
In September 2017, the Company published the
Copenhagen Economics’ Study titled ‘Kallak - A real
asset, and a real opportunity to transform Jokkmokk’.
The Study built on work carried out by the Company and
others, including the 2015 independent socio-economic
study initiated by Jokkmokks Kommun, completed by
consultants Ramböll, which in its findings concluded
that a mining development at Kallak would create direct
and indirect jobs, increase tax revenues and slow down
population decline, and the 2010 study by the Economics
Unit of Luleå University of Technology, ‘Mining Investment
and Regional Development: A Scenario-based Assessment
for Northern Sweden’.
The Study showed that a mining operation at Kallak has
the potential to create 250 direct jobs and over 300
indirect jobs in Jokkmokk; jobs that could be sustained
over a period of 25 years or more. In addition, Kallak
has the potential to generate SEK 1 billion in tax revenues,
considering the case where 70 per cent of the mine’s
workforce are based locally, with annual tax revenues
of SEK 40 million over a 25 year mine life; tax revenues
which would help to develop and sustain public services
and infrastructure in Jokkmokk, which are at risk due to a
lack of new investment and job creation in the community,
a declining population, and an ageing population.
Despite the Study, and the commencement of a Scoping
Study with SRK, on 30 November 2017, the CAB
responded to questions from the Government and
recommended that an Exploitation Concession for Kallak
North not be granted. The CAB’s statement contradicted
its July 2015 position, when it supported the economic
case for Kallak, and in the Company’s opinion, the CAB
has failed to use the socio-economic assessment criteria
set out in the Environmental Code, which put emphasis
on safeguarding investment and job creation, and giving
consideration for a municipalities’ financial health.
Instead, the CAB presented a scenario of State investment
in infrastructure being necessary to support the mine,
which has never been proposed or suggested by the
Company. It is the Company’s opinion that the analysis
Beowulf Mining plc Annual Report 2017 by the CAB is flawed, and its conclusions are biased
and cannot be supported.
The Board remains firmly committed to the responsible
development of a modern, sustainable, and innovative
mining operation at Kallak in partnership with the local
community. This remains the Company’s ambition,
and we now wait for the Government to decide on our
application.
Post year end
The Company’s application for an Exploitation
Concession remains with the Government. On 1
February 2018, the Company announced that it had
provided comments to the Government on the CAB’s
statement dated 30 November 2017. The Company
summarised the main points used by the CAB to
support the CAB’s latest position that an Exploitation
Concession for Kallak North should not be awarded.
The CAB has argued that the estimated 14-year
production life of Kallak, as included in the original
application, is of such short duration, that it does not
justify Government investment in infrastructure, it does
not support a socio-economic case, and it is not a
reasonable use of natural resources. In addition, given
the 14-year production life, the CAB views reindeer
herding as the best use of land. Finally, that risks to the
World Heritage Status of Laponia remain unclear.
In its response, the Company summarised
chronologically the CAB’s handling of the Company’s
application, and the involvement of other authorities.
Also, the Company detailed its interpretation of the
Swedish Minerals Act, the Environmental Code, and
the roles of each authority, in assessing the Company’s
application for an Exploitation Concession.
Mine Production Life
The Company has argued that a mine at Kallak is likely
to be in production for much longer than 14 years,
based on existing knowledge of the orebodies at Kallak
North and Kallak South; a fact acknowledged by the
CAB in its July 2015 statement, when it supported both
the economic case for Kallak, and the Company’s
application.
In addition, the Company argues that mining projects,
in general, add to their resource inventories, and apply
for permits over time, extending their production lives.
There are examples of mines in Sweden, which have
been in production for decades, and in some cases
centuries.
Infrastructure Investment
The CAB asserts that the Swedish Government may
have to invest in infrastructure to facilitate a mine at
Kallak, and by using a 14-year mine life the CAB states
that there is no case to support this. The Company has
never suggested that the Government needs to invest in
infrastructure associated with Kallak.
It is fact, that potential infrastructure partners in the
region have their own expansion and investment
plans, including Inlandsbanan and the Port of Luleå.
Additionally, LKAB, with Trafikverket, is working on
increasing the capacity of the Ore Railway Line.
The Company also notes that the prescribed process
for handling the Kallak application, referring to the
Swedish Mineral Act and Environmental Code, and
the SAC’s judgement in the Norra Kärr case, does not
require full assessment of matters regarding transport
at this stage of permitting.
Reindeer Herding
The Company has reminded the Government that
for four years since February 2013, when Kallak was
designated by the SGU as an Area of National Interest
(“ANI”), there were no competing national interests.
Before February 2017, when Sametinget placed
national interest for reindeer herding directly on top
of Kallak, there were no conflicting national interests
for the Concession Area, or for those areas taken by
operational facilities necessary to support mining. A
fact recognised by the CAB in its July 2015 statement,
when it supported both the economic case for Kallak,
and the Company’s application.
In the CAB’s latest statement, it has given no
consideration to the years since the Company
submitted its original application, in April 2013, the
Company’s engagement with the CAB, and continued
12
13
Beowulf Mining plc Annual Report 2017 Review of Operations
and Activities
investment in Kallak, when there were no conflicting
national interests. The CAB now argues in favour of
national interest for reindeer herding.
The CAB has not acknowledged that mining and reindeer
herding can prosper side by side, despite providing
no evidence to the contrary. Previously, the Company
has stated that there are no examples in Sweden of
any reindeer herding community being closed by any
form of industrial activity, not just mining. Yet, there
are many examples of companies reaching agreements
with reindeer herding communities, as projects progress
towards eventual operation, which benefit all parties
concerned.
In the Kallak application, the Company has included
preventative, precautionary, and compensatory
frameworks, to be developed into management plans in
consultation with the reindeer herding communities, at the
appropriate time, and when details are available to have
meaningful discussions and make definitive agreements.
The Company has restated key numbers, that Kallak’s
area of 13.6 square kilometres (“km2”) compares to
Jåhkågaska tjellde’s 2,640km2 of grazing land or 0.5
per cent, and that reindeer herding in Sweden covers
220,000 km2, representing almost half of the country.
Laponia
Kallak is situated, at the closest point, approximately
34km away from Laponia. Laponia’s boundary has
been established to protect what lies within the boundary,
and not to restrict development, such as Kallak, which is
located far beyond any conceivable ‘buffer zone’. It is
the Company’s view that suggesting Kallak could have
such an impact on Laponia as to threaten Laponia’s
World Heritage Status is not a reasonable argument.
The Company’s ambition, to develop a modern and
sustainable mining operation, in partnership with the
community, protecting all interests, will further ensure that
Laponia is unaffected.
The Kallak application and the Company’s Heritage
Impact Assessment have comprehensively assessed the
direct and indirect effects of Kallak on Laponia. The
Company maintains that mining and reindeer herding
can prosper side by side, and there should be no
material impact on reindeer herding in Laponia, and
14
when it comes to transport, environmental permitting will
safeguard the interests of Laponia.
On 6 March 2018, the Company published a letter
written by Kurt Budge, CEO, to the Government. Extract
as follows:
“Subject: Bearbetningskoncession Kallak Nr 1 N2017-
04553
Thank you for giving Jokkmokk Iron Mines AB, a 100
per cent owned subsidiary of Beowulf, the opportunity to
make final comments to the Government in respect of our
application for an Exploitation Concession for the Kallak
North Iron Ore Project.
I joined Beowulf in September 2014, having worked in the
mining sector for over 20 years, in business development
with the multi-national company Rio Tinto, in operations
in the UK coal industry, and in banking and private equity.
My values are centred around working in partnership with
stakeholders and delivering sustainable development.
This is what I have done in my career, when managing
operations, permitting, and developing new mines.
Since I joined Beowulf, the Company has done everything
it can to build and strengthen relationships with the
community in Jokkmokk, and with regulators and decision
makers in Norrbotten and Stockholm. During this time,
the mayors of Jokkmokk and Luleå, and entrepreneurs
and landowners in Jokkmokk, have voiced their support
for the Kallak project. They want companies to come
to Jokkmokk and Norrbotten, to invest, to create
opportunities for job creation and economic growth;
Beowulf has done just that, and I have made it clear
that the Company’s approach is to develop Kallak in
partnership with local and regional stakeholders, in a
responsible and sustainable way, and in harmony with the
environment.
The delays and constant waiting for an authority to give
an opinion or take a decision on our application have
significantly impeded discussions with the Saami. We
share the Minister’s view that mining and reindeer herding
can coexist, and the Kallak project is no exception, as the
evidence shows for existing mines in Sweden. We see
many examples in Sweden where agreements have been
reached between companies and the Saami, and positive
working relationships have been developed; this is the
Beowulf’s intention. Despite perceived threats to reindeer
herding, studies show that reindeer herding in Sweden
Beowulf Mining plc Annual Report 2017 is on the increase, and we have found no examples of
a cooperative being forced to close because of a new
industrial development, not just mining.
Before October 2014, there was good exchange
between Länsstyrelsen in Norrbotten and the Company,
with questions being asked and answers given on our
application. By the autumn of 2014, the Company
had drilled almost 28,000m at Kallak, and on 28
November 2014 updated its mineral resource statement,
including the deposits of Kallak North and Kallak South,
indicating the potential for a global tonnage of iron ore
mineralisation of circa 250Mt. To date, Beowulf has
invested SEK 77 million in Kallak.
It is widely acknowledged that Länsstyrelsen has
consistently failed to follow the prescribed process for
assessing an Exploitation Concession application. Now it
writes about the need for State investment in infrastructure
to support Kallak; this has never been proposed or
suggested by the Company.
In Norrbotten, Inlandsbanan, the Port of Luleå, and LKAB
and Trafikverket are all looking at expanding infrastructure
capacity. As we tried to demonstrate with the
Copenhagen Economics’ project study, titled ‘Kallak - A
real asset, and a real opportunity to transform Jokkmokk’,
there is a ‘Bigger Picture’ positive impact that Kallak
can deliver, both in Jokkmokk and Norrbotten, as major
projects in the region are interlinked and interdependent.
Mining the Kallak North deposit has the potential to
provide around 250 direct jobs and SEK600 million in
additional tax revenues to the Municipality of Jokkmokk
over 14 years. If the mine life is extended with the Kallak
South deposit, then SEK1 billion in additional tax revenues
could be generated over 25 years.
A well-engineered plan is essential, so that the local
community reaps the benefits of Kallak’s potential, and
Beowulf believes that the full potential benefits will only
materialise through partnership and collaboration with
local and regional stakeholders.
Länsstyrelsen’s latest statement contradicts its July 2015
position, when it supported the economic case for Kallak,
then verbally confirmed its support to Bergsstaten for the
Company’s application, and Bergsstaten, in October
2015, recommended to the Government that the
Concession be awarded. It is based on statements such
as this, that Beowulf has continued to invest in Kallak.
Also, in July 2015, Länsstyrelsen acknowledged that there
were no conflicting national interests for the Concession
Area. This was also the case for those areas taken up
by operational facilities necessary to support mining. In
February 2013, the SGU designated Kallak an Area of
National Interest for its mining potential. Four years later,
in February 2017, Sametinget placed national interest for
reindeer herding directly on top of the Kallak Concession
Area.
Now, Länsstyrelsen gives no consideration for the
period when there were no conflicts, and it watched the
Company continue to invest in Kallak. It now chooses
to build a case around reindeer herding being the most
important national interest, but this is based on false
arguments. I would suggest that to most observers, the
fact that Sametinget asserted national interest for reindeer
herding directly on top of the Kallak Concession Area
four years after the SGU designation, and late in the
application process, would appear nothing but an attempt
to obstruct and frustrate our application.
With respect to Laponia, Kallak is 34km away at its
closest point. Existing mines operate in closer proximity
and have not threatened Laponia’s World Heritage
Status. Naturvårdsverket and Riksantivarieämbetet have
confirmed that Kallak will have no direct impact on
Laponia.
Laponia’s boundary has been established to protect what
lies within the boundary, and not to restrict development,
such as Kallak, which is located far beyond any
conceivable ‘buffer zone’. It is the Company’s view that
suggesting Kallak could have such an impact on Laponia
as to threaten Laponia’s World Heritage Status is not
a reasonable argument. The Company’s ambition, to
develop a modern and sustainable mining operation, in
partnership with local stakeholders, protecting all interests,
will further ensure that Laponia is unaffected.
The Kallak application and the Company’s Heritage
Impact Assessment have comprehensively assessed the
direct and indirect effects of Kallak on Laponia. The
Company maintains that mining and reindeer herding
can prosper side by side, and there should be no
material impact on reindeer herding in Laponia, and
when it comes to transport, environmental permitting will
safeguard the interests of Laponia.
14
15
Beowulf Mining plc Annual Report 2017
Review of Operations
and Activities
I have never during my previous career, in any country,
been involved in a permitting process where the
authorities have shown such a lack of willingness to
engage with a company on a major application. The
permitting process we have experienced has been
inefficient, slow, and unpredictable. Our application
has been passed back and forth, from one authority
to another, with no questions put to the Company, nor
feedback given on additional documentation we have
provided, nothing. No authorities have made any attempt
to reconcile the differences between the Saami villages
and the Company, or to facilitate the discussion that could
lead to an understanding between the parties. Instead
decision makers choose to sit in isolation, and determine
the fate of our application, evidently misrepresenting the
facts, and biased in their analysis.
Länsstyrelsen’s actions have so far hindered Beowulf,
the Kallak project, and, as commented by industry
participants in Sweden and mining analysts in London, are
damaging Sweden’s reputation as a place to invest and
do business.
On 22 February 2018, the Fraser Institute in Canada,
published it latest rankings on Investment Attractiveness
of mining jurisdictions globally, and Sweden has fallen
eight places to 16th. Beowulf did not take part in the
survey, but comments from another exploration company
included, “Sweden is a stable system; however, there is
still room for improvement. Investors have concerns over
permit delays, lengthy legal disputes, and inconsistent
environmental regulations”.
In January 2017, I spoke in Stockholm on the
comparative advantage of doing business in Sweden.
What should be a real advantage to Sweden, is being
damaged by uncertain application processes, a distinct
lack of respect shown by Swedish authorities for mining
companies and their permit applications, scant regard for
the significant investments being made and the potential
job opportunities being created.
I heard the Minister speak at SveMin’s Höstmöte in
Stockholm, at the end of November 2017, about the
importance of the mining industry in Sweden, and the
problems being experienced with permitting new mines.
More recently, I see that the Swedish Government has
given SEK10 million to the SGU to explore for ‘Battery
Minerals’ in Bergslagen. It may interest the Minister to
know, that Beowulf has a portfolio of graphite projects in
Finland, which we are actively exploring.
In September 2017, the Minister was quoted in the
Swedish media as saying that Swedish law is enough for
testing our application, and that the permitting process
should be “by the book”.
We hope that the Government now looks objectively at
the facts, the Company’s investment, its commitment to
developing a modern and sustainable mining operation,
and the approach we have taken with all our stakeholders
in Jokkmokk, including the Saami villages, to develop
the Kallak project in partnership with them. We are
willing to take all necessary precautions to minimise the
impact on reindeer herding and have also several times
stated that any eventual remaining impact shall be fully
compensated.
In October 2015, Bergsstaten recommended to the
Government that an Exploitation Concession be awarded
for Kallak Nr 1. Over the last three years, the prescribed
process in Sweden for an Exploitation Concession has
not changed, we have addressed specific concerns
raised by Norrbotten Länsstyrelsen regarding transport,
provided supplementary information to demonstrate that
mining and reindeer herding can prosper together, and a
Heritage Impact Assessment to dispel any concerns about
the interaction of Kallak and Laponia.
In Jokkmokk, no other Company has invested SEK77
million and created an opportunity like Kallak, that has
the potential to transform the town, and deliver a thriving,
diversified and sustainable economy for the people living
there.”
16
Beowulf Mining plc Annual Report 2017 Åtvidaberg nr 1 Exploration Licence
Sala nr 10 Exploration Licence
The Sala licence area covers 1,049ha and is in
Västmanland County, southern Sweden. The licence
is prospective for lead-zinc-silver mineralisation and
is situated 200m west of the former Sala silver mine.
Sulphide mineralisation in the area is carbonate hosted,
occurring dominantly as silver-bearing lead sulphide
(galena), and zinc sulphide (sphalerite), and to a lesser
extent as complex antimonides, sulphosalts and native
silver.
The Sala mine was once Europe’s largest silver producer,
in continuous production between the late 15th century
and 1908 and known for having some of the richest
silver ores in the world. Mining records show that Sala
was mined to a depth of approximately 300m, with
mineralisation remaining open at depth.
Mining continued in 1950-51 and between 1945-62 at
the adjacent Bronas mine.
The exploration licence for Åtvidaberg nr 1 is in southern
Sweden, to the southern end of Bergslagen, one of
Europe’s oldest mining areas. Bergslagen contains one of
the world’s main volcanogenic massive sulphide (“VMS”)
districts with deposits characterised by high contents of
zinc, lead, copper, and sometimes silver and gold, the
majority of which are small deposits. Bergslagen yielded a
substantial portion of Sweden’s mineral wealth during the
1800s to 1900s, with several large mines and hundreds
of smaller mines producing copper, zinc, lead, gold,
and silver. Current operating mines in the area include
Boliden’s Garpenberg and Lundin Mining’s Zinkgruvan
mines.
Bergslagen has seen little modern exploration, yet it hosts
Bersbo, one of Sweden’s largest early copper mines, and
Zinkgruvan, Sweden’s most important zinc mine. Other
than at Zinkgruvan, exploration activity in Bergslagen
has predominantly focused on finding new outcropping
ore bodies, with some historic mining areas not being
explored since the 1900s.
In late April 2017, the Company held a three-day field
workshop at Åtvidaberg, which brought together the
Company’s exploration team and external experts with
major mining company exploration experience, relevant to
Bergslagen, volcanogenic massive sulphide mineralisation
and modern exploration technologies. The workshop
provided the opportunity to brainstorm ideas and develop
a plan for the year, which featured both fieldwork and
desktop studies focused on understanding the historical
mining around Bersbo.
Åtvidaberg represents early stage exploration, but offers
real potential for Beowulf, as signified by past discoveries
and historic mines.
16
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Beowulf Mining plc Annual Report 2017 Review of Operations
and Activities
FINLAND
Finnish Exploration Permits
Beowulf, via its subsidiary, Fennoscandian, currently holds two exploration permits for graphite, and has applied for a
further four graphite exploration permits.
Permit Name
Permit ID
Area (km2)
Valid from
Valid until
Approved Claim Reservations:
Pitkäjärvi 1
Viistola 1
2016:0040-01
2016:0005-01
10.00
0.49
07/12/2016
07/12/2020
09/11/2017
09/11/2021
Applied for Exploration Permits
Haapamäki 1
2015:0025-01
4.77
Rääpysjärvi 1
2017:0104-01
7.16
Kolari 1
2017:0108-01
9.70
Joutsjärvi 1
2017:0122-01
5.79
Applied for
26/04/2016
Applied for
08/08/2017
Applied for
29/11/2017
Applied for
16/10/2017
18
Beowulf Mining plc Annual Report 2017
Beowulf Mining plc Annual Report 2017
Aitolampi/Pitkäjärvi – Graphite
Introduction
The Aitolampi and Pitkäjärvi graphite prospects were
new discoveries in 2016 and are eastern extensions to
the Haapamäki prospect. Pitkäjärvi and Aitolampi are
areas of graphitic schists on a fold limb, coincidental
with an extensive EM anomaly. Many of the EM zones are
obscured by glacial till, but graphite observations in road
cuttings and outcrops are also associated with abundant
EM anomalies. Haapamäki is in eastern Finland
approximately 40km southwest of the well-established
mining town of Outokumpu.
2017 Summary
The Company made real progress on its graphite portfolio
during 2017. Starting with metallurgical testwork results
for composite samples taken from the Haapamäki,
Pitkäjärvi and Aitolampi graphite prospects. The Company
then completed 1,197m of drilling at Aitolampi. The
eight-hole diamond drill programme confirmed that the
EM anomalies identified are associated with wide zones of
graphite mineralisation, with a mineralised strike length of
at least 350m along the main conductive zone drill-tested,
dipping between 40 and 50 degrees to the southwest.
The main EM zone extends for 700m.
In October 2017, the Company announced high grade
concentrate results for composite samples from the
Aitolampi project. For three samples, the combined
grades ranged from 96.8 per cent to 97.5 per cent Total
Carbon. Beowulf achieved a superior metallurgical
response from all three samples compared with grab
samples from outcrops analysed earlier in the year. The
process flowsheet used was simple and proved to be
very efficient. The produced concentrates were then sent
for further testwork to determine their marketability and
potential applications.
The focus remains to put one of Beowulf’s graphite
projects into production within three years, and, at this
time, Aitolampi is the front runner.
1(cid:25)
1(cid:26)
Beowulf Mining plc Annual Report 2017
Beowulf Mining plc Annual Report 2017
Re(cid:87)iew of (cid:48)peration(cid:84)
an(cid:69) Acti(cid:87)itie(cid:84)
Aitolampi Drilling
• Eight holes drilled, approximately 1,197m in total, with
the first four drill holes, AITDD17001-004, extending
350m along strike for the main conductive zone.
• Drill holes AITDD17005-008 tested the extent of
mineralisation down-dip of the main conductive zone.
• Substantial graphite mineralisation intersections in all
holes, including up to 113.5m down-hole width for the
longest drill hole AITDD17006, which correspond with
identified EM conductors. It should be noted that the
mineralisation intercept is the down-hole width and may
not be the true width.
• Drill holes AITDD17005-006 tested two parallel
conductors to the main conductive zone and intersected
graphite mineralisation for both conductors.
• Drill hole AITDD17006 intercepted 202.98m at 3.09
per cent Total Graphite Carbon (“TGC”) from 19.2m
depth (this includes some barren zones with no assays
and calculated as zero per cent TGC), and higher-grade
zones of 18.95m at 6.33 per cent TGC, and 14m at
6.26 per cent TGC.
• Drill hole AITDD17001 intercepted 141.86m at 3.72
per cent TGC from 19.67m depth, including a higher-
grade zone of 39.48m at 5.02 per cent TGC.
• Drill hole AITDD17008 intercepted 60.29m at 4.01 per
20
20
Beowulf Mining plc Annual Report 2017
Beowulf Mining plc Annual Report 2017
cent TGC from 8.71m depth, including 12m at 5.79
per cent TGC.
• Drill hole AITDD17005 intercepted 41.1m at 4.39 per
cent TGC from start of hole, including 28.4m at 5.1 per
cent TGC and 4m at 7.71 per cent TGC.
• It should be noted that the mineralisation intercepts
are the down-hole widths and are not the true
width of mineralisation. All samples were prepared
and analysed by ALS Finland Oy’s laboratory in
Outokumpu.
Metallurgical Testwork
• Composite samples from the drilling programme were
dispatched to SGS Mineral Services in Canada. They
included an average grade composite for the main
conductive zone, a higher-grade composite for the
main conductive zone/near-surface mineralisation, and
a higher-grade composite for the parallel conductive
zones.
• The combined grades ranged from 96.8 per cent to
97.5 per cent Total Carbon (“C(t)”) across the three
samples.
• All three samples responded similarly in terms of
concentrate grades of the various size fractions.
• Testwork achieved a superior metallurgical response
with all three samples compared with grab samples
from outcrops analysed earlier in the year.
• The process flowsheet used was simple yet proved to be
very efficient.
20
20
21
21
Review of Operations
and Activities
Post-Year End
Metallurgical Testwork/Market Assessment
• Concentrates from the SGS testwork were sent to
ProGraphite Gmbh (“ProGraphite”) based in Germany.
ProGraphite specialises in the processing and
evaluation of graphite materials.
• Alkaline purification produced 99.86 per cent C(t) for
+100-mesh concentrate and 99.82 per cent C(t) for
-100-mesh concentrate.
• Results from acid purification were also promising and
reached 99.6 per cent C(t) for the +100-mesh and
99.41 per cent for the -100-mesh concentrate.
• The alkaline and acid purification results indicate that,
with some process optimisation, Aitolampi concentrates
may meet the purity specification of 99.95 per cent C(t)
required for the lithium ion battery market.
• Aitolampi graphite shows high crystallinity, with the
degree of graphitisation measuring approximately
98 per cent, which is almost perfect crystallinity, an
important prerequisite for high tech applications, such
as lithium ion batteries.
• Volatiles are low, which is an attractive product attribute
in many applications, including refractories, lubricants,
crucibles, and foundries.
• Longest hole drilled, AITDD18014, was 235.3m, and
intercepted a total length of graphite mineralisation
of 127.4m, including a single intercept of 44.9m.
Mineralisation started 24.4m from the collar. This hole
tested all three conductive zones including the north-
western strike extension of the higher-grade parallel
graphite zones intersected in hole AITDD17006 in last
year’s drilling programme.
• Longest single intercept of graphite mineralisation, in
hole AITDD18015, was 99.4m. Total hole length was
150.0m and mineralisation started at 20.7m from the
collar.
• Infill drilling has confirmed the continuity of graphite
mineralisation between holes drilled in the 2017 drilling
programme.
• Several holes proved mineralisation down-dip from
graphite intersected in 2017 and intersected wide
mineralised zones along strike and down-dip for some
of the previously identified higher grade mineralised
zones.
• Drilling shows that mineralisation has a strike length
of at least 350m along the main conductive zone (the
main EM anomaly extends for 700m).
• For the two parallel higher-grade zones previously
identified, mineralisation has a strike length of at least
150m (the two parallel conductive zones extend for
300m and 250m).
• Mineralisation for all zones remains open along strike
• Specific Surface Area (“SSA”) is comparable to that of
and at depth.
high quality flake graphite from China.
• Oxidation behaviour is comparable with Chinese
graphite of the same flake size, used for refractories,
and other high temperature applications.
Further Drilling
• In March 2018, the Company awarded a contract to
Oy Northdrill, a Finnish drilling company.
• 10 holes have been completed and 1577.6m have
been diamond drilled.
• Within the Company’s Pitkäjärvi licence area, several
extensive EM conductors, associated with graphite
observed in surface outcrops, have yet to be drilled,
are prospective for graphite mineralisation, and offer
potential upside.
• The Company’s geologists core logged for all holes,
and samples have been sent to ALS Minerals in Finland
for assay. All samples are being assayed for Graphitic
Carbon (C-IR18), Total Carbon (C-IR07) and Total
Sulphur (S-IR08).
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Beowulf Mining plc Annual Report 2017 Beowulf Mining plc Annual Report 2017
Assay Results
• Drilling has confirmed the continuity of mineralisation
between holes drilled in 2017, wide graphite lenses
extending along strike, at least 350m along the main
conductive zone (EM anomaly extends for 700m), and
at depth.
• For the two parallel higher-grade zones previously
identified, mineralisation has a strike length of at least
150m (the two parallel conductive zones extend for
300m and 250m), and these zones seem to merge to
form one body of mineralisation.
• From northwest to southeast along strike, drill
holes AITDD18014, AITDD18016, AITDD18015,
AITDD18017 and AITD18018 (drilled on the same
profile), all intersected this higher-grade body of
mineralisation, with intercepts of 89.60m at 4.01%
TGC, 107.09m at 4.59% TGC, 108.69m at 5.04%
TGC, 121.68% at 5.00% TGC and 121.46m at 5.29%
TGC respectively.
• For these holes, intercepts showing greater than
5% TGC were as follows: AITDD18014 - 30.10m
at 5.75% TGC; AITDD18016 - 29.00m at 6.04%
TGC; AITDD18017 - 62.42m at 6.08% TGC; and
AITDD18018 - 92.46m at 6.19% TGC, including
44.00m at 7.08% TGC.
• AITDD18018 is the furthest hole drilled to the
southeast, to test the parallel higher-grade conductive
zone, which remains open in all directions.
22
2(cid:20)
Board of Directors
Göran Färm - Non-Executive Chairman
Mr Farm joined Beowulf as Non-Executive Chairman in October 2017.
Göran, born in 1949, was an elected Member of European Parliament (“MEP”) from 1999 to 2004 and, then again,
from 2007 to 2014. Göran was also Deputy Mayor of Norrköping during the 1990s.
Göran has experience in industrial policy as a former Head of the Swedish Trade Union Confederation’s unit for
economic policy and investigation, as head of business issues in the City of Norrköping and as former MEP of the
Committee of Industry, Research, and Energy of the European Parliament.
Göran has extensive experience in communications as a former journalist, Director of Information at Riksbyggen, and as
a public affairs advisor.
In 2015, Göran was elected as Chairman of Kommuninvest, a public development bank owned by Swedish
municipalities, cities, and regions.
Kurt Budge - Chief Executive Officer
MBA MEng ARSM
Mr Budge was appointed Chief Executive Officer of Beowulf Mining in October 2014 after joining the Company as a
Non-Executive Director in September 2014.
Kurt has over 20 years’ experience in the mining sector, during which he spent five years as a Business Development
Executive in Rio Tinto’s Business Evaluation Department, here he was engaged in mergers and acquisitions, divestments
and evaluated capital investments. He has also been an independent advisor to junior mining companies on
acquisitions and project development as well as a General Manager of Business Development, where he developed
strategic growth and M&A options for iron ore assets.
Kurt was Vice President of Pala Investments AG, a mining focused private equity firm based in Switzerland, and has
worked as a mining analyst in investment research.
During the earlier part of his career he held several senior operations and planning roles in the UK coal industry with RJB
Mining (UK Coal plc) and worked as a Venture Capital Executive with Schroder Ventures.
Kurt holds an M.Eng (Hons) degree in Mining Engineering from The Royal School of Mines, Imperial College London,
and an MBA from London Business School.
Christopher Davies - Non-Executive Director
BSc Hons Geology, MSc DIC Mineral Exploration
Mr Davies joined the board of Beowulf as a Non-Executive Director in April 2016. Chris, who is a Fellow of the
Australasian Institute of Mining and Metallurgy, is an exploration/economic geologist with more than 30 years’
experience in the mining industry. He has substantial knowledge of graphite and base metals, a particular skill set which
will be complimentary to Beowulf’s existing team. He was Manager for the exploration and development of a graphite
deposit in Tanzania and has been involved with due diligence studies on graphite deposits in East Africa and Sri Lanka.
Chris has worked as a geologist in many different parts of the world including Africa, Australia, Yemen, Indonesia, and
Eastern Europe. His most recent role was as a Consultant to an Australian Group seeking copper-gold assets in Africa
where he carried out technical due diligence and negotiated commercial terms for joint venture partnerships. Chris was
Operations Director of African Eagle until March 2012 and Country Manager for SAMAX Resources in Tanzania, which
was acquired by Ashanti Goldfields in 1998 for US$135m.
24
Beowulf Mining plc Annual Report 2017 Beowulf Mining plc Annual Report 2017
(cid:52)enior Manage(cid:78)ent
Liam O’Donoghue - Company Secretary
Mr O’Donoghue is a qualified corporate lawyer and director of the AIM specialist advisory and administration firm, ONE
Advisory Group Limited.
Rasmus Blomqvist - Exploration Manager
Mr. Blomqvist, the founder of Fennoscandian, was appointed Exploration Manager in January 2016. Mr. Blomqvist has
been working in exploration and mining geology for over 11 years and holds an MSc in Geology and Mineralogy from
Åbo Akademi University, Turku Finland.
Since 2012, Mr. Blomqvist has been exploring for flake graphite within the Fennoscandian shield and is one of the most
experienced graphite geologists in the Nordic region. Prior to Fennoscandian, Mr. Blomqvist was Chief Geologist for
Nussir ASA, managing its exploration team and achieving significant exploration success for the company.
Prior to Nussir, Mr. Blomqvist worked as an independent consultant for several international mining companies including
Mawson Resources, Tasman Metals and Agnico Eagle and has experience in graphite, gold, base metals and iron ore,
within the Nordic region.
Mr Blomqvist is a member of the Australasian Institute of Mining and Metallurgy (“AusIMM”).
2(cid:21)
2(cid:22)
Strategic Report
The Directors present their strategic report for the year
ended 31 December 2017.
PRINCIPAL ACTIVITY
The principal activities of the Group are the exploration
and development for iron ore, graphite and other
prospective minerals in the Nordic Region. A detailed
review of the mining activities can be found under Review
of Operations and Activities. The Group is controlled,
financed and administered within the United Kingdom
which remains the principal place of business.
REVIEW OF THE BUSINESS
The results of the Group for the year are set out in the
consolidated income statement and show a loss after
taxation attributable to the owners of the parent for
the year of £1,038,248 (2015: Loss of £632,125). A
comprehensive review of the business is given under the
Chairman’s Statement and Review of Operations and
Activities.
26
26
Beowulf Mining plc Annual Report 2017 PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the Group are detailed below:
Description
Risk
Risk rating
pre-
mitigation
Mitigating action
Risk rating
post-
mitigation
Not
obtaining an
Exploitation
Concession
at Kallak
North
The Company
does not meet
the requirements
of the prescribed
process for an
Exploitation
Concession
HIGH
In July 2015, the CAB supported the
Company’s application, and in October
2015 the Mining Inspectorate recommended
that the concession be awarded. The
CAB’s latest statement contradicts its
July 2015 position. In the Company’s
opinion, the CAB has failed to use the
socio-economic assessment criteria set
out in the Environmental Code, which put
emphasis on safeguarding investment and
job creation, and giving consideration for
the municipalities’ financial health. It is the
Board’s opinion that the Company has
fully met the requirements of the prescribed
application process, Swedish Minerals Act
and Environmental Code.
MEDIUM
Unable
to raise
sufficient
funds
Unable to raise
sufficient funds to
invest in project
portfolio and
cover corporate
costs
MEDIUM
Effectively communicate to the market. Raise
capital in a timely manner, as record of
accomplishment shows. Ensure forecasting
is accurate, and expenditure controls are in
place to optimise cash resources.
MEDIUM
Long term
adverse
changes in
commodity
prices
Prices for iron
ore, graphite, and
other commodities
may affect the
viability of the
Company’s
projects
MEDIUM
The Company identifies and invests in high
quality projects that are attractive to the
market. The Company will manage capital
and operating expenditures to maximise
shareholder returns.
MEDIUM
Not
discovering
an economic
mineral
deposit
Very few projects
go through to be
developed into
mines
HIGH
Early studies and testwork give confidence
that the Company is allocating capital
appropriately. In Kallak and Aitolampi we
have potential quality resources, benefitted
by excellent local infrastructure, and
established low-risk mining countries.
MEDIUM TO
LOW
Revocation of
licences
Licences are
subject to
conditions which,
if not satisfied,
may lead to the
revocation of the
licence
MEDIUM
The Company diligently manages its licences
to ensure full compliance. A monthly status
report is generated for monitoring purposes
and action.
LOW
27
26
26
Beowulf Mining plc Annual Report 2017 Strategic Report
PERFORMANCE MEASUREMENT
The ongoing performance of the Company is managed and monitored using a number of key financial and non-
financial indicators (“KPIs”) on a monthly basis:
Financial:
i. Administration Expenses
Overheads are managed versus budget and forecast on a monthly basis. The Company has a history of tightly
managing its expenses.
ii. Cash position
Cash is vital for an exploration company and it must be managed accordingly. Monthly, the Company, analyses the
expenditure of each subsidiary. It also manages monthly cash flow for the Group versus budget and forecast. The
financial strategy is to ensure that wherever possible there are sufficient funds to cover corporate overheads and
exploration expenditure for a 12-month period.
iii. Exploration expenditure by project
The Company controls its exploration spend by project versus budget and in relation to its available cash resources.
If the results of exploration do not meet expectations, then budgeted activities are re-evaluated or even cancelled.
Evaluation of early stage projects is approached in a cost-effective way. The Group determines whether there are any
indicators of impairment of its exploration assets on an annual basis.
iv. Share price
The Company monitors its share price on both AIM and AktieTorget monthly and versus a peer group of explorers.
Many factors outside the Company’s control can affect the share price but the Company appreciates that this KPI is
important to shareholders and the market in general in assessing the Company’s performance.
Non-financial:
v. Licence renewal compliance
It is important from a risk management perspective that the Company monitors the expiry dates of its exploration
permits. This is managed internally for its Finnish graphite permits while, in Sweden, the Company uses an external
service provider to report on the status of its permits and assist with renewal applications.
ON BEHALF OF THE BOARD:
Mr K Budge
Director
11 May 2017
28
Beowulf Mining plc Annual Report 2017
Report of Directors
The Directors present their report, together with the
audited financial statements of the Group, for the year
ended 31 December 2017.
DIRECTORS
Since 1 January 2017 the following Directors have held
office:
Mr B Metcalf
(Retired 30 October 2017)
Mr K R Budge
Mr Christopher Davies
Mr G Farm
(Appointed 30 October 2017)
DIVIDENDS
No dividends will be distributed for the year ended
31 December 2017 (2016: £nil).
GOING CONCERN
At 31 December 2017, the Group had a cash balance of
£1.59 million.
Management have prepared cash flow forecasts which
indicate that although there is no immediate funding
requirement, the Group will need to raise further funds
in the next 12 months for corporate overheads and to
advance its projects.
The Directors are confident they are taking all necessary
steps to ensure that the required finance will be available
and they have successfully raised equity finance in the
past. They have therefore concluded that it is appropriate
to prepare the financial statements on a going concern
basis. However, while they are confident of being able
to raise the new funds as they are required, there are
currently no agreements in place, and there can be no
certainty that they will be successful in raising the required
funds within the appropriate timeframe.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt over the
Group’s and the Company’s ability to continue as a going
concern and that it may be unable to realise its assets and
discharge its liabilities in the normal course of business.
The financial statements do not include any adjustments
that would result if the Company was unable to continue
as a going concern.
SUBSTANTIAL SHAREHOLDINGS
The Directors are aware of the following who were interested, directly or indirectly, in three per cent or more of the
Group’s ordinary shares on 31 December 2016:
Shareholders
Shares
Interactive Investor Services Nominees Limited – A/C SMKTNOMS 29,243,320
Barclays Direct Investing Nominees Limited
18,796,237
Interactive Investor Services Nominees Limited – A/C SMKTISAS
16,307,745
%
5.47
3.52
3.05
28
29
Beowulf Mining plc Annual Report 2017
Report of Directors
AUTHORITY TO ISSUE SHARES
Each year at the AGM the Directors seek authority to allot
shares. The authority, when granted, lasts until the next
AGM (unless renewed, varied or revoked by the Company
prior to, or on, such date). At the AGM held on 29 June
2017, shareholders gave authority for the Directors to
allot equity securities for cash up to an aggregate nominal
value of £1,314,268 (2016: £1,198,242).
SIGNIFICANT AGREEMENTS
The Companies Act 2006 requires the Company to
disclose any significant agreements which take effect, alter
or terminate upon a change of control of the Company.
The Company is not aware of, or party to, any such
agreement.
EVENTS AFTER THE REPORTING PERIOD
Information relating to events since the end of the year is
given in Note 21 to the financial statements.
The Company will look to advance both the development
of Kallak and its other exploration projects subject to
funding.
DIRECTORS’ RESPONSIBILITIES STATEMENT
The Directors are responsible for preparing the strategic
report, annual report and the financial statements in
accordance with applicable laws and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law
the Directors have elected to prepare the Group and
Company financial statements in accordance with
International Financial Reporting Standards (“IFRSs”) as
adopted by the European Union. Under company law
the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view
of the state of affairs of the Group and Company and of
the profit or loss of the Group for that year. The Directors
are also required to prepare financial statements in
accordance with the rules of the London Stock Exchange
for companies trading securities on the AIM and the rules
of the AktieTorget in Sweden.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND
POLICIES
In preparing these financial statements, the Directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether they have been prepared in accordance
with IFRSs as adopted by the European Union, subject
to any material departures disclosed and explained in
the financial statements; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
Financial risk management policies and objectives for
capital management are provided within Note 18 to the
financial statements.
FUTURE DEVELOPMENTS WITHIN THE BUSINESS
Beowulf’s strategy is to build a modern and sustainable
Nordic focused mining company, which creates
shareholder value through project development,
delivering production and generating cash flow, while
remaining opportunistic for mergers and acquisitions, and
preserving the Company’s low sovereign risk profile.
The Company continues to advance its Kallak project
whilst waiting for an Exploitation Concession to be
awarded, in addition to progressing with its portfolio of
exploration assets in Sweden and Finland.
The Company is looking forward to a busy 2018, with
exploration activity and study work planned across its
portfolio. Beowulf is also maintaining a keen eye for any
merger and acquisition opportunities.
30
Beowulf Mining plc Annual Report 2017 AUDITOR
BDO LLP has extensive experience of working with AIM
companies in the Natural Resources sector. BDO LLP
have expressed their willingness to continue in office and
a resolution to re-appoint them will be proposed at the
Group’s forthcoming Annual General Meeting.
ANNUAL GENERAL MEETING
The Group’s Annual General Meeting will be held
at 10.30 a.m. (CET) on 29 June 2018 at the offices
of Aktitorget, Master Samuelsgatan 42, 3 tr 111 57
Stockholm. The Notice of Meeting including details of the
proposed resolutions will be posted to shareholders in due
course and will appear on the Company’s website.
ON BEHALF OF THE BOARD:
Mr K Budge
Director
11 May 2017
Beowulf Mining plc Annual Report 2017
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Company’s transactions and disclose, with
reasonable accuracy, at any time the financial position
of the Company and enable them to ensure that the
financial statements comply with the requirements of
the Companies Act 2006. They are also responsible for
safeguarding the assets of the Company and hence for
taking reasonable steps for the prevention and detection
of fraud and other irregularities.
WEBSITE PUBLICATION
The Directors are responsible for ensuring the annual
report and financial statements are made available on
a website. Financial statements are published on the
Company’s website in accordance with legislation in
the United Kingdom governing the preparation and
dissemination of financial statements, which may vary
from legislation in other jurisdictions. The maintenance
and integrity of the Company’s website is the responsibility
of the Directors. The Directors’ responsibility also extends
to the ongoing integrity of the financial statements
contained therein.
STATEMENT AS TO DISCLOSURE OF INFORMATION
TO AUDITORS
So far as the Directors are aware, there is no relevant
audit information (as defined by Section 418 of the
Companies Act 2006) of which the Group’s auditors are
unaware, and each Director has taken all the steps that
they ought to have taken as a Director in order to make
themselves aware of any relevant audit information and
to establish that the Group’s auditors are aware of that
information.
(cid:20)0
(cid:20)1
(cid:20)1
Remuneration Report
Executive Directors’ terms of engagement
Mr Budge is the sole Executive Director and Chief
Executive Officer. His annual salary remained unchanged
for the year ended 31 December 17. Mr Budge’s salary
was last increased from £120,000 to £130,000 on 1
November 2016. Mr Budge has a notice period of 12
months.
Non-Executive Directors’ terms of engagement
The Non-Executive Directors have specific terms of
engagement under a letter of appointment. Their
remuneration is determined by the Board. In the event
that a Non-Executive Director undertakes additional
assignments or work for the Company, this is covered
under a separate consultancy agreement.
Mr Davies was appointed as a Non-Executive Director
on 4 April 2016. Under Mr Davies letter of appointment,
he is paid a fee of £25,000 per annum. Mr Davies
has a consultancy agreement with the Company for
the provision of exploration advice over and above his
Non-Executive duties. Mr Davies has a one month notice
period under his letter of appointment.
Mr Farm was appointed as Non-Executive Chairman on
30 October 2017. Under Mr Farms letter of appointment,
he is paid an equivalent fee in £’s of £33,975 per
annum. Mr Farm has a one month notice period under his
letter of appointment.
Indemnity Agreements
Pursuant to the Companies Act 2006 and the Company’s
articles of association, the Board may exercise the powers
of the Company to indemnify its Directors against certain
liabilities, and to provide its Directors with funds to meet
expenditure incurred, or to be incurred, in defending
certain legal proceedings or in connection with certain
applications to the court. In exercise of that power, and by
resolution of the Board on 26 July 2016, the Company
has agreed to enter into this Deed of Indemnity with each
Director.
Aggregate Directors’ Remuneration
The remuneration paid to the Directors in accordance with
their agreements, during the years ended 31 December
2017 and 31 December 2016, was as follows:
Name
Position
Salary
& Fees1
Share Gain on Benefits4 Pension5
based exercise
Payments2 of share
options
£
£
£
£
£
2017
Total
2016
Total
£
£
Mr B Metcalf3 Non-Executive Chairman 51,795
9,437 378,450
-
- 439,682 78,250
Mr K R Budge Chief Executive Officer
130,000
10,617
Mr C Davies4 Non-Executive Director
32,000 101,669
Mr G Farm
Non-Executive Chairman
4,674
-
-
-
-
300 10,833 151,750 142,901
-
-
- 133,669 22,625
-
4,674
-
Total
Notes:
218,469 121,723 378,450
300 10,833 729,775 243,776
4. Personal life insurance policy.
1. Does not include expenses reimbursed to the Directors.
5. Employer contributions to personal pension.
2. In relation to options granted in 2014, 2015 & 2017.
3. Mr Metcalf’s salary and fees above are for the period
1 January 17 to 30 October 2017, the date of his
retirement.
Each Director is also paid all reasonable expenses incurred wholly, necessarily and exclusively in the proper performance of his duties.
32
Beowulf Mining plc Annual Report 2017
Beowulf Mining plc Annual Report 2017
The beneficial and other interests of the Directors holding office on 31 December 2017 in the issued share capital of the
Company were as follows:
ORDINARY SHARES
31 December 2017
31 December 2016
Mr B Metcalf (resigned)
Mr K R Budge
-
2,249,759
2,165,841
2,249,759
Mr Davies was awarded 2,500,000 options in the year
ended 31 December 2017. Half of these options are due
to vest on the first anniversary of the grant, and half on
the second anniversary of the grant. The options are valid
for five years from the date of grant.
In the year ended 31 December 2017 Mr Metcalf
(resigned October 2017) exercised 500,000 and
8,000,000 options at 4 pence and 1.66 pence
respectively.
As 31 December 2017, 4,500,000 options have not
yet vested.
ORDINARY SHARES
UNDER OPTION
NUMBER
EXERCISE PRICE
EXPIRY DATE
Mr K R Budge
Mr K R Budge
Mr C Davies
500,000
9,000,000
2,500,000
4 pence
9 October 2019
1.66 pence
17 July 2020
12 pence
26 January 2022
(cid:20)2
(cid:20)(cid:20)
Corporate Governance Report
Corporate Governance and Board composition
As an AIM-listed company, Beowulf Mining plc is not
required to comply with the UK Corporate Governance
Code (2016). However, the Directors support high
standards of corporate governance and have established
a set of corporate governance principles based on the
Quoted Companies Alliance (“QCA”) Guidelines, which
they regard as appropriate for the size, nature and stage
of development of the Company.
Corporate governance is a key value driver for investors
and an important determinant of investment decision-
making. For this reason, shareholders must be able to
rely on appropriate corporate governance structures, risk
management systems and Board processes to safeguard
their interests and ultimately enhance shareholder value.
Some basic safeguards that help reduce investment risk
include confidence that the board and management will:
(1) release timely and reliable information about the
Company, so as to allow shareholders to react to
changing circumstances;
(2) deliver on the stated strategy and performance targets;
(3) take decisions in the interests of all investors - in other
words, without favouring insiders and controlling
shareholders;
(4) ensure that shareholdings will not be significantly and
unexpectedly diluted through non-pre-emptive issues;
and
(3) To review the Company’s compliance with regulatory
and statutory requirements as they relate to financial
statements, taxation matters and disclosure of financial
information.
In performing its duties, the Committee will maintain
effective working relationships with the Board of Directors,
management, and the external auditors and monitor
the independence and effectiveness of the auditors and
the audit. To perform his or her role effectively, each
committee member will obtain an understanding of the
responsibilities of committee membership as well as the
Company’s business, operations and risks. The Audit
Committee meets approximately four times a year.
The members of the Committee are Göran Färm (Chair)
and Chris Davies.
Remuneration Committee
The Remuneration Committee’s role is to assist the Board
of Directors to discharge its responsibilities in relation
to remuneration of the Company’s Executive Directors,
Non-Executive Directors and senior executives including
share and benefit plans and make recommendations as
and when it considers it appropriate. The Remuneration
Committee meets as and when required.
The members of the Committee are Göran Färm (Chair)
and Chris Davies.
(5) guard against shareholder value being destroyed
Nominations Committee
through significant transactions or material related-
party transactions that investors have not had a chance
to evaluate and approve.
Audit Committee
The overall purpose of the Audit Committee is:
(1) To ensure that the Company’s management has
designed and implemented an effective system of
internal financial controls;
(2) To review and report on the integrity of the
consolidated financial statements of the Company and
related financial information; and
The Board has not established a Nominations Committee
as the Board considers that a separately established
committee is not yet necessary, as its functions and
responsibilities can be adequately and efficiently
discharged by the Board as a whole.
The Board assesses the experience, knowledge and
expertise of potential Directors before any appointment is
made and adheres to the principle of establishing a Board
comprising Directors with a blend of skills, experience
and attributes appropriate to the Group and its business.
The main criterion for the appointment of Directors is an
ability to add value to the Group and its business.
All Directors appointed by the Board are subject to
election by shareholders at the next Annual General
34
Beowulf Mining plc Annual Report 2017 Meeting of the Company following their appointment.
Whistle-blower Policy
In order to discourage illegal activity and unethical
business conduct in the Company, the Board has
developed a Whistle-blower Policy. It is the responsibility
of all Directors, officers and employees (including contract
employees and consultants) to comply with the law and
the Company’s policies, and to report any wrongdoing or
violations or suspected violations, including those relating
to accounting, internal accounting controls, questionable
accounting or auditing matters, securities law and the
laws and regulations of any jurisdiction in which the
Company operates, in accordance with its Whistle-blower
Policy.
Relations with Shareholders
The Board recognises that it is accountable to
shareholders for the performance and activities of the
Group. Beowulf communicates with its shareholders
through its website at www.beowulfmining.com and the
release of announcements, trading updates and Interim
and Annual Reports through the Regulatory News Service.
Shareholders can also sign up to receive news releases
directly from the Group by email.
The Board encourages shareholders to attend Annual
General Meetings of the Company where they have the
opportunity to express their views on the Group’s business
activities and performance.
The Board will review the need for a Nominations
Committee as the Company evolves and one will be
established if, and when, it is considered appropriate.
Share dealing
Effective 3 July 2016 the Company adopted a new
policy for dealings in securities. The Policy is intended to
assist the Company and its staff in complying with their
obligations under the Market Abuse Regulation (EU)
No. 596/2014 (“MAR”) and the AIM Rules. The Policy
addresses the dealing restrictions set out in MAR and
reflects the requirements for a securities dealing policy set
out in the AIM Rules. Its purpose is to ensure that persons
discharging managerial responsibilities (“PDMRs”),
persons closely associated with them (“PCAs”) and other
Restricted Persons and their PCAs do not abuse, or place
themselves under suspicion of abusing, price-sensitive
information that they may have or be thought to have,
especially in periods leading up to an announcement of
results.
Anti-Bribery Policy
The Company has in place appropriate guidance, training
and implementation of procedures to ensure compliance
with the UK Bribery Act.
The Company is committed to the highest standards of
personal and professional ethical behaviour. This must be
reflected in every aspect of the way in which the Company
operates.
The Company takes a zero-tolerance approach to
bribery and corruption and we are committed to act
professionally, fairly and with integrity in all our business
dealings. Any breach of this policy will be regarded as a
serious matter by the Company and is likely to result in
disciplinary action and potentially the involvement of the
police.
34
35
Beowulf Mining plc Annual Report 2017
3636
Beowulf Mining plc Annual Report 2017 Independent Auditor's Report
Opinion
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit
of the financial statements section of our report. We
are independent of the group and the parent company
in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the
UK, including the FRC’s Ethical Standard as applied
to listed entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
We have audited the financial statements of Beowulf
Mining PLC (the ‘parent company’) and its subsidiaries
(the ‘group’) for the year ended 31 December 2017
which comprise the consolidated income statement,
the consolidated statement of comprehensive income,
the consolidated and company statements of financial
position, the consolidated and company statements
of changes in equity, the consolidated and company
statements of cash flows and notes to the financial
statements including a summary of significant accounting
policies. The financial reporting framework that has
been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as
adopted by the European Union and, as regards the
parent company financial statements, as applied in
accordance with the provisions of the Companies Act
2006.
In our opinion:
• the financial statements give a true and fair view of the
state of the group’s and of the parent company’s affairs
as at 31 December 2017 and of the group’s loss for the
year then ended;
• the group financial statements have been properly
prepared in accordance with IFRSs as adopted by the
European Union;
• the parent company financial statements have been
properly prepared in accordance with IFRSs as adopted
by the European Union and as applied in accordance
with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in
accordance with the requirements of the Companies Act
2006.
36
36
37
Beowulf Mining plc Annual Report 2017 Independent Auditor's Report
Material uncertainty related to going concern
Use of report
We draw attention to note 1 to the financial statements
which explains that the group will need to raise further
funds in the next 12 months for corporate overheads and
to advance its projects. Our opinion is not modified in
respect of this matter.
The matters explained in note 1 indicate that a material
uncertainty exists that may cast significant doubt on the
group’s and the parent company’s ability to continue
as a going concern. The financial statements do not
include the adjustments that would result if the group or
the parent company were unable to continue as a going
concern.
Given the conditions and uncertainties noted above we
considered going concern to be a Key Audit Matter. We
critically assessed management’s financial forecasts and
the underlying key assumptions, including operating and
capital expenditure. In doing so, we considered factors
such as commitments under licences, historical operating
expenditure and the group’s ability to raise funding in the
near future. Our assessment also included:
• Making enquiries of management of the future
financing plans and options.
• Performing sensitivity analysis in respect of key
assumptions underpinning the forecasts.
• We evaluated the adequacy of disclosure made in the
financial statements in respect of going concern.
We found the key underlying assumptions to be within
an acceptable range and the disclosures in the financial
statements in respect of going concern to be appropriate.
This report is made solely to the parent company’s
members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work
has been undertaken so that we might state to the parent
company’s members those matters we are required to
state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the
company and the parent company’s members as a body,
for our audit work, for this report, or for the opinions we
have formed.
Key audit matters
In addition to the matter described in the material
uncertainty related to going concern section, key audit
matters are those matters that, in our professional
judgment, were of most significance in our audit of the
financial statements of the current period and include the
most significant assessed risks of material misstatement
(whether or not due to fraud) we identified, including
those which had the greatest effect on: the overall audit
strategy, the allocation of resources in the audit; and
directing the efforts of the engagement team. These
matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters.
38
Beowulf Mining plc Annual Report 2017 Carrying value of exploration assets
Key Audit Matter
The group’s exploration assets represent its most significant assets and amount to £8.2
million as at 31 December 2017. Of this £7.0m relates to the Kallak North project, for
which the application for the exploitation concession is currently being reviewed by the
Swedish government.
As explained in note 1 to the financial statements the assessment of whether there are
indicators of impairment in relation to the exploration assets requires the exercise of
significant judgement by management.
Given the significance of the carrying value of the Kallak North project, the delays in the
grant of the exploitation concession and the recent decision by the County Administrative
Board (“CAB”) not to support the grant of the concession, the assessment of whether there
are indicators of impairment for the Kallak North project represented a key audit matter for
our audit.
Directors have assessed whether there is an indicator of impairment for the Kallak
North project and have concluded that this is not the case. Refer to note 7 for details of
Management’s assessment.
Audit Response
• We reviewed Management’s assessment of indicators of impairment under IFRS 6
in respect of each of the licence area, including the validity of the licences, planned
expenditure on each area and management’s intention to continue exploration work on
each licence area.
• We reviewed the status and validity of licences, including compliance to the terms of the
licences.
• We reviewed and challenged Management’s assessment and consideration of the
evidence to support the grant of exploitation concession, the delays in the grant and
the recent decision by the CAB not to support the grant of the concession. This included
review of correspondence with the various Swedish authorities involved in the process
and assessment of their views and conclusions, review of CAB’s points raised during
the application process and Management’s response and actions thereof and critical
assessment of Management’s views on CAB’s recent decision to not support the award
of the concession.
• In addition, we made inquiries of management, reviewed minutes of meetings, RNS
announcements and press releases to identify any additional information on the Kallak
North concession application and any other factors which may indicate a potential
indictor of impairment.
• We evaluated the adequacy and appropriateness of the disclosures provided within the
financial statements in notes 1 and 7.
38
39
Beowulf Mining plc Annual Report 2017
Independent Auditor's Report
Our application of materiality
We apply the concept of materiality both in planning
and performing our audit, and in evaluating the effect
of misstatements. We consider materiality to be the
magnitude by which misstatements, including omissions,
could influence the economic decisions of reasonable
users that are taken on the basis of the financial
statements. In order to reduce to an appropriately
low level the probability that any misstatements exceed
materiality, we use a lower materiality level, performance
materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not
necessarily be evaluated as immaterial as we also take
account of the nature of identified misstatements, and
the particular circumstances of their occurrence, when
evaluating their effect on the financial statements as a
whole.
Our basis for the determination of materiality has not
changed from prior year. We consider total assets to be
the most significant determinant of the group’s financial
performance used by shareholders, as the group was
engaged in exploration activities and the principal focus
of the users is likely to be the gross assets of the group.
The benchmark percentage for calculating materiality has
remained consistent in the current year at 1.5% of total
assets. Whilst materiality for the financial statements as
a whole was £150,000 (2016: £120,000) (based on
total asset figure of £10m) (2016: £9m), each significant
component of the group was audited to a lower level
of materiality. The parent company materiality was
£112,500 (2016: £90,000) with the other components
materiality set at £85,000. These materiality levels were
used to determine the financial statement areas that are
included within the scope of our audit work and the extent
of sample sizes during the audit.
Performance materiality is the application of materiality at
the individual account or balance level set at an amount
to reduce to an appropriately low level the probability
that the aggregate of uncorrected and undetected
misstatements exceeds materiality. Performance materiality
was set at 75% (2016: 75%) of the above materiality
levels given there has been limited experience of past
misstatements.
We agreed with the Audit Committee that we would report
to the committee all individual audit differences identified
during the course of our audit in excess of £7,500 (2016:
£6,000). We also agreed to report differences below
these thresholds that, in our view warranted reporting on
qualitative grounds.
No revisions were made to materiality levels during the
course of the audit.
An overview of the scope of our audit
Our group audit scope focussed on the group’s principal
operating locations and legal structure. The group has
operating entities based in the UK, Sweden and Finland.
We assessed there to be two significant components
being the Beowulf Mining Plc with operations in UK and
Jokkmokk Iron Mines AB with operations in Sweden. The
parent entity was subject to a full scope audit by the group
auditor.
A full scope audit for group reporting purposes was
performed by a non-BDO network firm on the significant
component in Sweden, Jokkmokk Iron Mines AB. Specific
procedures were completed by a non-BDO network
firm in Finland on Oy Fennoscandian Resources AB,
which holds the Finnish assets. Detailed group reporting
instructions for the testing of the significant areas were
sent to the component auditor and we discussed their
findings with the component audit partner. The group
audit team also performed audit procedures over the
significant risk areas and the consolidation.
The remaining non-significant subsidiaries of the group
were subject to analytical review procedures.
Other information
The other information comprises the information included
in the annual report, other than the financial statements
and our auditor’s report thereon. The directors are
responsible for the other information. Our opinion on the
financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in
our report, we do not express any form of assurance
conclusion thereon.
40
Beowulf Mining plc Annual Report 2017 In connection with our audit of the financial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears
to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we
are required to determine whether there is a material
misstatement in the financial statements or a material
misstatement of the other information. If, based on the
work we have performed, we conclude that there is a
material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion, based on the work undertaken in the
course of the audit:
• the information given in the strategic report and the
directors’ report for the financial year for which the
financial statements are prepared is consistent with the
financial statements; and
• the strategic report and the directors’ report have
been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by
exception
In the light of the knowledge and understanding of the
group and the parent company and its environment
obtained in the course of the audit, we have not identified
material misstatements in the strategic report or the
directors’ report.
We have nothing to report in respect of the following
matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the
parent company, or returns adequate for our audit have
not been received from branches not visited by us; or
• the parent company financial statements are not in
agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified
by law are not made; or
• we have not received all the information and
explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement, the directors are responsible for the
preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such
internal control as the directors determine is necessary to
enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are
responsible for assessing the group’s and the parent
company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the directors either intend to liquidate the group or
the parent company or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement
when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit
of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our
auditor’s report.
Stuart Barnsdall (Senior Statutory Auditor)
For and on behalf of BDO LLP,
London, UK
41
40
Beowulf Mining plc Annual Report 2017 Consolidated Income Statement
CONTINUING OPERATIONS
Administrative expenses
Impairment of exploration costs
OPERATING LOSS
Finance income
LOSS BEFORE INCOME TAX
Income tax expense
LOSS FOR THE YEAR
Loss attributable to:
Owners of the parent
Non-controlling interests
Note
2017
£
2016
£
3
4
5
(861,669)
(638,573)
(183,131)
-
(1,044,800)
(638,573)
5,234
5,344
(1,039,566)
(633,229)
-
-
(1,039,566)
(633,229)
(1,038,248)
(632,125)
(1,318)
(1,104)
(1,039,566)
(633,229)
Loss per share attributable to the ordinary equity holder of the parent:
Basic and diluted (pence)
6
(0.20)
(0.13)
The notes on pages 52 to 75 form part of these financial statements
42
Beowulf Mining plc Annual Report 2017
Consolidated Statement Of Comprehensive Income
LOSS FOR THE YEAR
(1,039,566)
(633,229)
Note
2017
£
2016
£
OTHER COMPREHENSIVE INCOME
Item that may be reclassified subsequently to profit or loss:
Exchange gains arising on translation of foreign operations
Reclassification of revaluation reserve
67,862
626,438
-
55,664
67,862
682,102
TOTAL COMPREHENSIVE LOSS/INCOME
(971,704)
48,873
Total comprehensive loss/income attributable to:
Owners of the parent
Non-controlling interests
13
(970,426)
(1,278)
49,005
(132)
(971,704)
48,873
42
43
The notes on pages 52 to 75 form part of these financial statements
Beowulf Mining plc Annual Report 2017
Consolidated Statement of Financial Position
ASSETS
NON-CURRENT ASSETS
Intangible assets
Property, plant and equipment
Loans and other financial assets
CURRENT ASSETS
Trade and other receivables
Cash and cash equivalents
TOTAL ASSETS
EQUITY
SHAREHOLDERS’ EQUITY
Share capital
Share premium
Revaluation reserve
Capital contribution reserve
Share Based Payment reserve
Merger reserve
Translation reserve
Accumulated losses
Non-controlling interests
TOTAL EQUITY
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
Note
7
8
10
2017
£
2016
£
8,191,232
28,580
5,530
7,186,576
23,511
5,503
8,225,342
7,215,590
11
12
65,032
1,589,897
51,766
1,609,219
1,654,929
1,660,985
9,880,271
8,876,575
14
16
16
16
16
16
16
16
13
5,342,072
5,026,302
18,141,271 16,879,241
25,664
46,451
237,803
137,700
(464,882)
(14,079,747) (13,067,163)
-
46,451
575,078
137,700
(397,060)
9,765,765
(159,871)
8,821,116
(158,593)
9,605,894
8,662,523
17
274,377
214,052
274,377
214,052
9,880,271
8,876,575
The financial statements were approved and authorised for issue by the Board of Directors on 11 May 2018 and were
signed on its behalf by:
Mr K Budge - Director
Company Number 02330496
The notes on pages 52 to 75 form part of these financial statements
44
Beowulf Mining plc Annual Report 2017
Company Statement of Financial Position
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Investments
Loans and other financial assets
CURRENT ASSETS
Trade and other receivables
Cash and cash equivalents
TOTAL ASSETS
EQUITY
SHAREHOLDERS’ EQUITY
Share capital
Share premium
Capital contribution reserve
Share based payment reserve
Merger reserve
Accumulated losses
TOTAL EQUITY
CURRENT LIABILITIES
Trade and other payables
TOTAL LIABILITIES
Note
2017
£
2016
£
8
9
10
11
12
14
16
16
16
16
16
-
139
479,311
345,015
8,953,625
7,805,923
9,432,936
8,151,077
40,101
34,658
1,508,321
1,567,770
1,548,422
1,602,428
10,981,358
9,753,505
5,342,072
5,026,302
18,141,271 16,879,241
46,451
575,078
137,700
46,451
237,803
137,700
(13,384,494) (12,680,024)
10,858,078
9,647,473
17
123,280
106,032
123,280
106,032
TOTAL EQUITY AND LIABILITIES
10,981,358
9,753,505
As permitted by Section 408 of the Companies Act 2006, the income statement of the parent Company is not presented
as part of these financial statements. The parent Company’s loss for the financial year was £704,470 (2016: Loss
£530,377).
These financial statements were approved and authorised for issue by the Board of Directors on 11 May 2018 and were
signed on its behalf by:
Mr K Budge - Director
Company Number 02330496
The notes on pages 52 to 75 form part of these financial statements
44
45
Beowulf Mining plc Annual Report 2017
payments
reserve
£
-
-
-
-
-
-
-
-
-
-
-
-
40,109
(31,008)
130,906
203,059
134,216
14
14
15
9
14
14
15
9
£
£
£
Non-
controlling
interest
£
Totals
£
97,796
(1,090,348)
(12,466,046)
6,048,103
(158,461)
5,889,642
(632,125)
(632,125)
55,664
625,466
(1,104)
-
972
(633,229)
55,664
626,438
625,466
625,466
(632,125)
49,005
(132)
48,873
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,534,907
(145,114)
40,109
-
294,106
31,008
1,652,800
(75,000)
203,059
134,216
-
25,664
-
-
-
-
-
-
-
-
-
-
2,534,907
(145,114)
40,109
-
294,106
1,652,800
(75,000)
203,059
134,216
-
(1,038,248)
(1,038,248)
(1,318)
(1,039,566)
67,822
67,822
40
67,862
67,822
(1,038,248)
(970,426)
(1,278)
(971,704)
Consolidated Statement of Changes in Equity
Note
Share
Share
Revaluation
capital
premium
reserve
Merger
reserve
Capital
contribution
Note
Share based
Translation
Accumulated
Totals
reserve
losses
At 1 January 2016
4,303,138
15,187,112
(30,000)
£
£
£
Loss for the year
Foreign exchange translation
Revaluations on listed investments
Total comprehensive income
Transactions with owners
Issue of share capital
Cost of issue
Equity settled share based transactions
Release of charge for lapsed options
-
-
-
-
-
-
-
-
697,664
1,837,243
-
-
-
(145,114)
-
-
-
Acquisition of subsidiary
9
25,500
-
-
55,664
55,664
-
-
-
-
-
£
-
-
-
-
-
-
-
-
-
137,700
reserve
£
46,451
-
-
-
-
-
-
-
-
-
At 31 December 2016
5,026,302
16,879,241
25,664
137,700
46,451
237,803
(464,882)
(13,067,163)
8,821,116
(158,593)
8,662,523
-
-
-
-
-
-
-
(25,664)
-
-
-
-
-
-
-
-
137,700
46,451
575,078
(397,060)
(14,079,747)
9,765,765
(159,871)
9,605,894
Loss for the year
Foreign exchange translation
Total comprehensive income
Transactions with owners
-
-
-
-
-
-
Issue of share capital
14 315,770
1,337,030
Cost of issue
14
Equity settled share based transactions
Acquisition of subsidiary
Transfer of accumulated losses
-
-
-
-
(75,000)
-
-
-
At 31 December 2017
5,342,072
18,141,271
-
-
-
-
-
-
-
-
-
The notes on pages 52 to 75 form part of these financial statements
46
Beowulf Mining plc Annual Report 2017
Note
Share
Share
Revaluation
capital
premium
reserve
Merger
reserve
Capital
contribution
£
£
£
£
Note
Share based
Translation
Accumulated
Totals
payments
reserve
£
reserve
losses
£
£
£
Non-
controlling
interest
£
Totals
£
At 1 January 2016
4,303,138
15,187,112
(30,000)
97,796
(1,090,348)
(12,466,046)
6,048,103
(158,461)
5,889,642
-
-
-
-
-
-
40,109
(31,008)
130,906
14
14
15
9
-
-
625,466
(632,125)
-
-
(632,125)
55,664
625,466
(1,104)
-
972
(633,229)
55,664
626,438
625,466
(632,125)
49,005
(132)
48,873
-
-
-
-
-
-
-
-
31,008
-
2,534,907
(145,114)
40,109
-
294,106
-
-
-
-
-
2,534,907
(145,114)
40,109
-
294,106
At 31 December 2016
5,026,302
16,879,241
25,664
137,700
46,451
237,803
(464,882)
(13,067,163)
8,821,116
(158,593)
8,662,523
-
-
-
-
-
203,059
134,216
-
14
14
15
9
-
(1,038,248)
(1,038,248)
(1,318)
(1,039,566)
67,822
-
67,822
40
67,862
67,822
(1,038,248)
(970,426)
(1,278)
(971,704)
-
-
-
-
-
-
-
-
-
25,664
1,652,800
(75,000)
203,059
134,216
-
-
-
-
-
-
1,652,800
(75,000)
203,059
134,216
-
At 31 December 2017
5,342,072
18,141,271
137,700
46,451
575,078
(397,060)
(14,079,747)
9,765,765
(159,871)
9,605,894
697,664
1,837,243
(145,114)
Acquisition of subsidiary
9
25,500
137,700
Loss for the year
Foreign exchange translation
Revaluations on listed investments
Total comprehensive income
Transactions with owners
Issue of share capital
Cost of issue
Equity settled share based transactions
Release of charge for lapsed options
Loss for the year
Foreign exchange translation
Total comprehensive income
Transactions with owners
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
55,664
55,664
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Issue of share capital
14 315,770
1,337,030
Cost of issue
14
(75,000)
Equity settled share based transactions
Acquisition of subsidiary
Transfer of accumulated losses
(25,664)
reserve
£
46,451
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
47
Capital
contribution
reserve
£
46,451
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
137,700
137,700
payments
reserve
£
-
-
-
-
-
-
-
-
-
-
40,109
(31,008)
130,906
203,059
134,216
losses
£
(530,377)
(530,377)
31,008
-
-
-
-
-
-
-
-
-
-
(530,377)
55,664
(474,713)
2,534,907
(145,114)
40,109
294,106
£
-
-
1652,800
(75,000)
203,059
134,216
46,451
237,803
(12,680,024)
9,647,473
(704,470)
(704,470)
(704,470)
(704,470)
137,700
46,451
575,078
(13,384,494)
10,858,078
Company Statement of Changes in Equity
Note
Share
capital
£
Share
premium
Revaluation
reserve
£
£
Merger
reserve
£
Share based
Accumulated
Totals
At 1 January 2016
4,303,138
15,187,112
(55,664)
97,796
(12,180,655)
7,398,178
Loss for the year
Reclassification of revaluation reserve
Total comprehensive income
Transactions with owners
Issue of share capital
Cost of issue
14
14
Equity settled share based transactions 15
Release of charge for lapsed options
-
-
-
697,664
-
-
-
Acquisition of subsidiary
9
25,500
-
-
-
1,837,243
(145,114)
-
-
-
At 31 December 2016
5,026,302
16,879,241
Loss for the year
Foreign exchange translation
Total comprehensive income
Transactions with owners
Issue of share capital
Cost of issue
14
14
Equity settled share based transactions 15
Acquisition of subsidiary
9
-
-
-
315,770
-
-
-
-
-
-
1,337,030
(75,000)
-
-
At 31 December 2017
5,342,072
18,141,271
-
55,664
55,664
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The notes on pages 52 to 75 form part of these financial statements
48
Beowulf Mining plc Annual Report 2017
Share
premium
Revaluation
reserve
Merger
reserve
£
-
-
-
-
-
-
-
-
137,700
137,700
-
-
-
-
-
-
-
Capital
contribution
reserve
£
46,451
Share based
Accumulated
Totals
payments
reserve
£
losses
£
£
97,796
(12,180,655)
7,398,178
-
-
-
-
-
-
-
-
-
-
-
-
-
40,109
(31,008)
130,906
(530,377)
-
(530,377)
-
-
-
31,008
-
(530,377)
55,664
(474,713)
2,534,907
(145,114)
40,109
-
294,106
46,451
237,803
(12,680,024)
9,647,473
-
-
-
-
-
-
-
-
-
-
-
-
203,059
134,216
(704,470)
-
(704,470)
-
-
-
-
(704,470)
-
(704,470)
1652,800
(75,000)
203,059
134,216
At 31 December 2017
5,342,072
18,141,271
137,700
46,451
575,078
(13,384,494)
10,858,078
Note
Share
capital
£
£
£
At 1 January 2016
4,303,138
15,187,112
(55,664)
Loss for the year
Reclassification of revaluation reserve
Total comprehensive income
Transactions with owners
Issue of share capital
Cost of issue
14
14
697,664
1,837,243
(145,114)
Equity settled share based transactions 15
Release of charge for lapsed options
Acquisition of subsidiary
9
25,500
At 31 December 2016
5,026,302
16,879,241
Loss for the year
Foreign exchange translation
Total comprehensive income
Transactions with owners
Issue of share capital
Cost of issue
Equity settled share based transactions 15
Acquisition of subsidiary
14
14
9
315,770
1,337,030
(75,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
55,664
55,664
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48
49
Consolidated Statement of Cash Flows
Note
2017
£
2016
£
Cash flows from operating activities
Loss before income tax
Depreciation charges
Equity-settled share-based transactions
Impairment of exploration costs
Expenses financed by issue of shares
Reclassification of revaluation reserve
Finance income
(Increase)/decrease in trade and other receivables
Decrease/(increase) in trade and other payables
Net cash used in operating activities
Cash flows from investing activities
Purchase of intangible assets
Purchase of property, plant and equipment
Sale of investments
Acquisition of subsidiary
Interest received
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue costs
Net cash from financing activities
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of foreign exchange rate changes
8
7
3
7
8
10
14
14
(1,039,566)
(633,229)
15,890
203,059
183,131
-
-
(5,234)
12,097
40,109
-
29,375
55,664
(5,344)
(642,720)
(501,328)
(12,760)
31,646
15,673
(15,557)
(639,807)
(485,239)
(943,599)
(622,817)
(20,367)
14
-
5,234
(862)
50,444
(50,482)
5,344
(958,718)
(618,373)
1,652,800
2,505,530
(75,000)
(145,114)
1,577,800
2,360,416
(20,725)
1,256,804
1,609,219
352,914
1,403
(499)
Cash and cash equivalents at end of year
1,589,897
1,609,219
The notes on pages 52 to 75 form part of these financial statements
50
Beowulf Mining plc Annual Report 2017
Company Statement of Cash Flows
Note
8
3
Cash flows from operating activities
Loss before income tax
Depreciation charges
Equity-settled share-based transactions
Finance income
Reclassification of revaluation reserve
Expenses financed by issue of shares
(Increase)/decrease in trade and other receivables
Increase in trade and other payables
Net cash used in operating activities
Cash flows from investing activities
Loans to subsidiaries
Fixed asset additions
Interest received
Acquire subsidiary
2017
£
2016
£
(704,472)
(530,377)
139
203,059
(5,234)
-
-
1,841
40,109
(5,344)
55,664
29,375
(506,508)
(408,732)
(5,522)
17,251
39,444
6,969
(494,781)
(362,319)
(1,147,702)
(737,822)
-
5,234
(862)
5,344
-
(46,000)
Net cash used in investing activities
(1,142,468)
(779,340)
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue costs
14
14
Net cash from financing activities
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
1,652,800
2,505,530
(75,000)
(145,114)
1,577,800
2,360,416
(59,449)
1,218,757
1,567,770
349,013
Cash and cash equivalents at end of year
1,508,321
1,567,770
50
51
The notes on pages 52 to 75 form part of these financial statements
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
1.
ACCOUNTING POLICIES
Nature of operations
Beowulf Mining plc (the “Company”) is domiciled in England. The Company’s registered office is 201 Temple
Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. These consolidated financial statements comprise the
Company and its subsidiaries (collectively the ‘Group’ and individually ‘Group companies’). The Group is
engaged in the acquisition, exploration and evaluation of natural resources assets and has not yet generated
revenues.
The principal accounting policies applied in the preparation of these consolidated financial statements are set
out below:
Going concern
At 31 December 2017, the Group had a cash balance of £1.59 million and the Company had a cash balance
of £1.51 million.
Management have prepared cash flow forecasts which indicate that although there is no immediate funding
requirement, the Group will need to raise further funds in the next 12 months for corporate overheads and to
advance its projects.
The Directors are confident they are taking all necessary steps to ensure that the required finance will be
available and they have successfully raised equity finance in the past. They have therefore concluded that it is
appropriate to prepare the financial statements on a going concern basis. However, while they are confident of
being able to raise the new funds as they are required, there are currently no agreements in place, and there
can be no certainty that they will be successful in raising the required funds within the appropriate timeframe.
These conditions indicate the existence of a material uncertainty which may cast significant doubt over the
Group’s and the Company’s ability to continue as a going concern and that it may be unable to realise its
assets and discharge its liabilities in the normal course of business. The financial statements do not include any
adjustments that would result if the Group and Company were unable to continue as a going concern.
Basis of preparation
The consolidated financial statements have been prepared in accordance with applicable International Financial
Reporting Standards as adopted by the European Union (“IFRS”) and with those parts of the UK Companies
Act 2006 applicable to companies reporting under IFRS as adopted by the European Union. The financial
statements are presented in GB Pounds Sterling. They are prepared on the historical cost basis or the fair value
basis where the fair valuing of relevant assets and liabilities has been applied.
New and amended standards, and interpretations issued but not yet effective for the financial year
beginning 1 January 2016 and not early adopted
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the financial
statements are listed below. The Group intends to adopt these standards, if applicable, when they become
effective. Unless stated below, there are no IFRSs or IFRIC interpretations that are not yet effective that would be
expected to have a material impact on the Group.
Standard
IFRS 15 Revenue from Contracts with Customers
IFRS 9 Financial Instruments
IFRS 16 Leases
Effective Date
01-Jan-18
01-Jan-18
01-Jan-19
52
Beowulf Mining plc Annual Report 2017
The only standard which is anticipated to be significant or relevant to the Group is IFRS 9 “Financial
Instruments”, the Group is in the process of assessing the impact of the standard on the Financial Statements.
Both IFRS 15 and IFRS 16 are not expected to have a material impact on the Group at this stage of the Group’s
operations.
For the year ending 31 December 2018, IFRS 9 ‘’Financial Instruments’’ introduces significant changes to the
classification and measurement requirements for financial instruments. The new standard will replace existing
accounting standards. It is applicable to financial assets and liabilities and will introduce changes to existing
accounting concerning classification, measurement and impairment (introducing an expected credit loss
method). This could impact on the Company balance sheet in respect of the carrying value of intercompany
debtors, because it is unlikely that the assessment of expected credit loss will support a nil exposure to credit
loss.
Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for income and expenses during the year and the amounts
reported for assets and liabilities at the balance sheet date. However, the nature of estimation means that the
actual outcomes could differ from those estimates.
The principal source of risk and estimation uncertainty is that the exploitation concession for Kallak North will
not be awarded. The board has considered the impairment indicators as outlined in the Company’s accounting
policies and having done so is of the opinion that the current situation does not qualify as an impairment
indicator and hence no impairment provision is required for this permit.(see note 7).
The other key areas of judgement and sources of estimation uncertainty that have a significant risk of causing
material adjustment to the carrying amounts of assets and liabilities within the next financial year are the
assessment of any impairment of intangible assets, the estimation of share-based payment costs and the
treatment of the acquisition of Fennoscandian. In respect of these items:
(i)
(ii)
The Group determines whether there are any indicators of impairment of intangible assets on an annual
basis (see note 7); and
The estimation of share-based payments requires the selection of an appropriate model, consideration as
to the inputs necessary for the valuation model chosen and the estimation of the number of awards that
will ultimately vest (see note 9 and 15).
Basis of consolidation
(i)
Subsidiaries and acquisitions
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries) made up to 31 December each year. Control is recognised where
an investor is exposed, or has rights, to variable returns from its investment with the investee, and has the ability
to affect these returns through its power over the investee.
On acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair value at
the date of acquisition. Any excess of the cost of the acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. If the cost of the acquisition is less than the fair value of net assets of the
subsidiary acquired, the difference is recognised directly in profit or loss.
The results of subsidiaries acquired or disposed of during the year are included in the statement of
comprehensive income from the effective date of acquisition, or up to the effective date of disposal, as
appropriate.
52
53
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
(ii)
Subsidiaries and acquisitions (continued)
Non-controlling interests in subsidiaries are presented separately from the equity attributable to equity owners of
the parent Company. When changes in ownership in a subsidiary do not result in a loss of control, the non-
controlling shareholders’ interests are initially measured at the non-controlling interests’ proportionate share of
the subsidiaries net assets. Subsequent to this, the carrying amount of non-controlling interests is the amount
of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling
interests having a deficit balance.
(ii)
Transactions eliminated on consolidation
Intra-Group balances and any unrealised gains and losses or income and expenses arising from intra-Group
transactions are eliminated in preparing the consolidated financial statements.
Intangible assets – deferred exploration costs
All costs incurred prior to the application for the legal right to undertake exploration and evaluation activities on
a project are expensed as incurred.
Exploration and evaluation costs arising following the application for the legal right, are capitalised on a
project-by-project basis, pending determination of the technical feasibility and commercial viability of the
project. Costs incurred include appropriate employee costs and costs pertaining to technical and administrative
overheads.
Exploration and evaluation activity includes:
•
researching and analysing historical exploration data;
• gathering exploration data through topographical, geochemical and geophysical studies;
• exploratory drilling, trenching and sampling;
• determining and examining the volume and grade of the resource;
•
surveying transportation and infrastructure requirements; and
• conducting market and finance studies.
Administration costs that are not directly attributable to a specific exploration area are expensed as incurred.
Deferred exploration costs are carried at historical cost less any impairment losses recognised. When a project is
deemed to no longer have commercially viable prospects to the Group, deferred exploration costs in respect of
that project are deemed to be impaired and written off to the statement of comprehensive income.
Impairment
Whenever events or changes in circumstance indicate that the carrying amount of an asset may not be
recoverable an asset is reviewed for impairment. An asset’s carrying value is written down to its estimated
recoverable amount (being the higher of the fair value less costs to sell and value in use) if that is less than the
asset’s carrying amount.
Impairment reviews for deferred exploration and evaluation expenditure are carried out on a project by
project basis, with each project representing a potential single cash generating unit. An impairment review is
undertaken when indicators of impairment arise such as:
54
Beowulf Mining plc Annual Report 2017
(i)
unexpected geological occurrences that render the resource uneconomic;
(ii)
title to the asset is compromised;
(iii)
variations in mineral prices that render the project uneconomic;
(iv)
substantive expenditure on further exploration and evaluation of mineral resources is neither budgeted nor
planned; and
(v)
the period for which the Group has the right to explore has expired and is not expected to be renewed.
Property, plant and equipment
Items of property, plant and equipment are stated at historical cost less accumulated depreciation.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life.
Plant and machinery - 25 per cent on reducing balance
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
Investments
Investments that do not have a quoted market price in an active market and whose fair value cannot be reliably
measured are recognised at cost less any provision for impairment. Fixed asset investments in subsidiary
undertakings and joint venture interests are stated at cost less provision for any impairment in value.
Financial instruments
The Group classifies financial instruments, or their component parts, on initial recognition as a financial asset,
a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.
Financial assets and liabilities are recognised in the statement of financial position when the Group becomes a
party to the contractual provisions of the instrument.
Trade and other receivables
Trade and other receivables are recorded at their nominal amount less provision for impairment.
A provision for impairment of trade receivables is established when there is objective evidence that the Group
will not be able to collect all amounts due according to the original terms of the receivable. Bad debts are
written off when identified.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short term highly
liquid investments with original maturities of three months or less.
Trade payables
Trade payables are stated at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Where equity instruments are issued as part of an acquisition they are recorded at their fair value on the date of
acquisition.
55
54
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
Taxation
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or
recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet
date.
Deferred tax is recognised, using the liability method, in respect of temporary differences between the carrying
amount of the Group’s assets and liabilities and their tax base.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority. Any remaining deferred tax asset is recognised only when, on the basis of all available
evidence, it can be regarded as probable that there will be suitable taxable profits, within the same jurisdiction,
in the foreseeable future against which the deductible temporary difference can be utilised.
Deferred tax is determined using tax rates that are expected to apply in the periods in which the asset is realised
or liability settled, based on tax rates and laws that have been enacted or substantially enacted by the balance
sheet date.
Current and deferred tax is recognised in the profit or loss, except when the tax relates to items charged or
credited directly in equity, in which case the tax is also recognised directly in equity.
Foreign currencies
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each entity are expressed in GB Pounds Sterling which is
the presentation currency for the Group and Company financial statements. The functional currency of the
Company is the GB Pounds Sterling.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the
transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at
the rates prevailing at the balance sheet date.
Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are
included in the statement of comprehensive income for the period.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign
operations are expressed in GB Pounds Sterling using exchange rates prevailing at the balance sheet date.
Income and expense items are translated at the average exchange rates for the period. Exchange differences
arising, if any, are classified as other comprehensive income and are transferred to the Group’s translation
reserve.
Foreign currency movements arising from the Group’s net investment, which comprises equity and long-term
debt, in subsidiary companies whose functional currency is not the GB Pounds Sterling are recognised in the
translation reserve, included within equity until such time as the relevant subsidiary company is sold, whereupon
the net cumulative foreign exchange difference relating to the disposal is transferred to profit and loss.
Share-based payment transactions
Where equity settled share options are awarded to employees, the fair value of the options at the date of grant
is charged to the income statement over the vesting period. Non-market vesting conditions are taken into
account by adjusting the number of equity instruments expected to vest at each balance sheet date so that,
ultimately, the cumulative amount recognised over the vesting period is based on the number of options that
eventually vest. Market vesting conditions are factored into the fair value of all options granted. As long as all
other vesting conditions are satisfied, a charge is made irrespective of whether market vesting conditions are
satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
56
Beowulf Mining plc Annual Report 2017
Where terms and conditions of options are modified before they vest, the increase in the fair value of the
options, measured immediately before and after the modification, is also charged to the income statement over
the remaining vesting period.
Where equity instruments are granted to persons other than employees, the income statement or share premium
account, if appropriate, are charged with the fair value of goods and services received.
2.
EMPLOYEES AND DIRECTORS
Group
Company
Wages and salaries
Social security costs
Bonus
Other benefits
2017
2016
395,252
112,520
-
18,203
525,975
330,778
50,197
972
-
381,947
Directors’ remuneration is as follows:
Directors emoluments, including salary and fees
Share-based payments
Gain in exercise of share options
2017
£
229,602
75,842
-
11,133
316,577
2017
£
229,602
121,723
378,450
729,775
2016
£
203,667
23,398
-
-
227,065
2016
£
203,667
40,109
-
243,776
The remuneration of the highest paid Director who served during the year was £439,682 (2016: £142,901).
The average monthly number of employees and Directors during the year was as follows:
2017
Group
2016
Group
2017
2016
Company
Company
Number
Number
Number
Number
3
2
3
2
3
2
3
2
Directors
Employees
56
57
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
3.
FINANCE INCOME AND COSTS
Finance income:
Deposit account interest
2017
2016
£
£
5,234
5,344
5,234
5,344
4.
LOSS BEFORE TAX AND AUDITOR’S REMUNERATION
a. The loss before tax is stated after charging/(crediting):
Depreciation - owned assets
Foreign exchange differences
Impairment of exploration costs
Note
2017
2016
8
7
£
15,890
(8,015)
183,131
£
12,097
(1,124)
-
Reclassification of revaluation reserve
-
55,664
b. Auditor’s remuneration
Fees payable to the Group’s auditor for the audit
of the consolidated financial statements
Fees payable to the Group auditor for other services:
- audit of subsidiaries pursuant to legislation
- tax compliance services
2017
2016
£
£
26,675
23,120
5,000
4,851
5,000
3,250
36,526
31,370
5.
INCOME TAX
Analysis of tax expense
No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2017 or for the
year ended 31 December 2016.
58
Beowulf Mining plc Annual Report 2017
Factors affecting the tax expense
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is
explained below:
Loss on ordinary activities before income tax
(1,039,566)
(633,229)
2017
£
2016
£
Tax thereon at a UK corporation tax rate
of 19.25% (2016 - 20%)
Effects of:
Expenses not deductible for tax purposes
Tax losses not recognised
Losses of overseas subsidiaries carried forward
(200,116)
(126,646)
77,213
95,693
27,210
-
30,740
80,166
15,740
-
The main rate of UK corporation tax during the year ended 31 December 2017 was 19.25 per cent (2016:
20 per cent). The Group has estimated UK losses of £10,206,937 (2016: £9,709,834) and foreign losses
of £870,263 (2016: £581,034) available to carry forward against future trading profits. The value of
unrecognised deferred tax assets in respect of the UK losses amounts to £1,964,835 (2016: £1,941,967).
The Directors believe that it would not be prudent to recognise such tax assets before such time as the Group
generates taxable income.
6.
BASIC AND DILUTED LOSS PER SHARE
The calculation of basic and diluted loss per share at 31 December 2017 was based on the loss attributable to
ordinary shareholders of £1,038,248 (2016: £632,125) and a weighted average number of Ordinary Shares
outstanding during the period ended 31 December 2017 of 518,728,856 (2016: 472,525,290) calculated as
follows:
2017
£
2016
£
Loss attributable to ordinary shareholders
(1,038,248)
(632,125)
Weighted average number of ordinary shares
Number
Number
Number of shares in issue at the beginning of the year
502,630,331
430,313,824
Effect of shares issued during year
16,098,525
42,211,466
Weighted average number of ordinary shares in issue for the year
518,728,856
472,525,290
As detailed in note 21, the Company issued 2.1 million shares post year end, these shares would have an
anti-dilutive effect. There is no difference between the diluted and non-diluted loss per share. Details of the
share options that could potentially be dilutive in future periods are set out in note 15. For the year ended 31
December 2017, the effect of the dilution is to reduce the loss per share, the diluted loss per share is considered
to be the same as the basic loss per share.
58
59
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
7.
INTANGIBLE ASSETS - Group
COST
At 1 January 2016
Additions for the year
Foreign exchange movements
At 31 December 2016
At 1 January 2017
Additions for the year
Foreign exchange movements
Impairment
At 31 December 2017
NET BOOK VALUE
At 31 December 2017
At 31 December 2016
The net book value of exploration costs is comprised of expenditure on the following projects:
Kallak
Nautijaur
Åtvidaberg
Ågåsjiegge
Sala
Haapamäki
Kolari1
Piippumäki
Viistola
Pitkäjärvi
Joutsijärvi
2017
£
6,979,844
-
253,778
7,365
2,634
231,132
151,706
-
147,784
414,372
2,617
Exploration
Costs
£
5,588,270
968,460
629,846
7,186,576
7,186,576
1,077,815
109,972
(183,131)
8,191,232
8,191,232
7,186,576
2016
£
6,438,283
24,912
153,927
7,257
2,372
141,944
99,554
119,087
107,36
91,871
-
8,191,232
7,186,576
Total Group exploration costs of £8,191,232 are currently carried at cost in the financial statements. The Group
will need to raise funds and/or bring in joint venture partners to further advance exploration and development
work. An amount of £156,382 was recorded against the projects for services provided by the Directors during
the year.
During the year an impairment provision was recognised totalling £183,131 (2016: £Nil).
60
Beowulf Mining plc Annual Report 2017
Accounting estimates and judgements are continually evaluated and are based on a number of factors,
including expectations of future events that are believed to be reasonable under the circumstances.
In accordance with its accounting policies and processes, each asset is evaluated annually at 31 December, to
determine whether there are any indications impairment exist, the board considers the indications as outlined in
IFRS 6.
The most significant risk is that an exploitation concession is declined for Kallak North. The board has
considered the impairment indicators as outlined in the Company’s accounting policies and having done so is
of the opinion that the current situation does not qualify as an impairment indicator and hence no impairment
provision is required for this permit.
Additional consideration was given to the decision by the County Administrative Board (“CAB”) on the 30
November 2017 to not recommend that an exploitation concession be awarded to the Company. It should
be noted that the CAB does not have the final decision, that rests with the Government. The CAB’s decision
included information not based on fact, flawed analysis, and biased conclusions that contradicted its previous
representations provided in July 2015. The key biases include;
• Operating outside their mandate with respect to assessing transport matters at this stage of permitting
and suggesting the need for State investment should Kallak be built. The Company has never stated
that State support would be needed. The CAB ignored infrastructure projects that are already under
consideration e.g. Inlandsbanan Railway, the Ore Railway and the Port of Luleå, all of which will bring
additional capacity to regional infrastructure, which could be utilised by Kallak.
• Disregarding Kallak’s designation as an Area of National Interest (ANI”) awarded by the SGU in
February 2013.
• Disregarding the strong economic case, that would have local, regional and national benefits, that the
CAB presented in July 2015.
The Directors therefore consider that the decision of the CAB is not an impairment indicator as the comments
and findings of the CAB represent a recommendation to Government that should have limited to no persuasive
impact due to the inaccuracies, flawed analysis and conclusions the CAB has presented.
Post year end, the Company’s application is now with the Government. The Company, and other interested
parties, were invited to provide comments on the CAB’s statement, which the Company submitted on 2 February
2018. At the date of approval of the financial statements the Government’s consideration of the application
was ongoing.
In the year an impairment provision of £183,131 (2016: £Nil) was made against costs incurred on Pippumäki
(£155,510) and Nautijaur (£27,621) on the basis that no further exploration would be carried out on those
projects. The impairment is charged as an expense and included within the consolidated income statement.
60
61
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
8.
PROPERTY, PLANT AND EQUIPMENT
Group
£
Company
£
52,995
862
5,326
5,521
862
-
59,183
6,383
59,183
20,367
1,044
6,383
-
-
80,594
6,383
21,444
12,097
2,131
4,403
1,841
-
35,672
6,244
35,672
15,890
452
6,244
139
-
52,014
6,383
28,580
-
23,511
139
COST
At 1 January 2016
Additions
Foreign exchange movements
At 31 December 2016
At 1 January 2017
Additions
Foreign exchange movements
At 31 December 2017
DEPRECIATION
At 1 January 2016
Charge for year
Foreign exchange movements
At 31 December 2016
At 1 January 2017
Charge for year
Foreign exchange movements
At 31 December 2017
NET BOOK VALUE
At 31 December 2017
At 31 December 2016
62
Beowulf Mining plc Annual Report 2017
9.
INVESTMENTS
COST OR VALUATION
At 1 January 2016
Acquisitions
At 31 December 2016
At 1 January 2017
Acquisitions
At 31 December 2017
Shares in
Group
Undertakings
£
4,909
340,106
345,015
345,015
134,296
479,311
The investment represents 100 per cent of the share capital of Fennoscandian, that was acquired during the
year ended 31 December 2016 and holds a portfolio of four early-stage graphite exploration projects. At
the time of acquisition, Beowulf paid for 100 per cent of the share capital of Fennoscandian by issuing 2.55
million ordinary shares in the Company, with two further tranches of 2.1 million ordinary shares to be issued on
achievement of certain performance milestones.
The first tranche of ordinary shares is due to be issued on the production of a maiden resource statement on
one of the graphite projects in the portfolio, or on the anniversary 24 months following completion of the
acquisition, subject to Mr Blomqvist having worked for the Company as a full-time employee during that period.
The second tranche of shares will be issued on completion of a bankable feasibility study on one of the graphite
projects in the portfolio.
The total number of ordinary shares that may be issued, if all performance milestones are achieved, is 6.75
million ordinary shares. Beowulf will issue up to a further 4.2 million additional consideration shares in the form
of a share-based payment transaction to the former owner, Rasmus Blomqvist. The share-based payments fall
within the scope of IFRS 2 and are fair valued at the grant date based on the estimated number of shares that
will vest. The fair value has been prepared using a Black-Scholes pricing model including a share price of 6.4
pence, option life of two years, volatility of 49.79 per cent and a risk-free rate of 0.698 per cent.
The consideration recognised in the financial statements as at 31 December 2017 is £480,764, (2016:
£346,547) and has been recorded in intangible assets evenly across the four acquired graphite projects. The
share-based payment charge is spread over the two-year option life, therefore, in the 12 months ended 31
December 2017, £134,216 (31 December 16: £130,907) has been recognised under intangibles.
62
63
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
Name
Incorporated
Activity
% holding % holding
2017
2016
Oy Fennoscandian Resources AB
Finland
Mineral exploration
Jokkmokk Iron Mines AB
Beowulf Mining Sweden AB(1)
Wayland Copper Limited
Wayland Sweden AB
Sweden
Sweden
UK
Sweden
Mineral exploration
Mineral exploration
100%
100%
100%
100%
100%
100%
Holding company
65.25%
65.25%
Mineral exploration
(2)(3)65.25%
(2)(3)65.25%
The Group consists of the following subsidiary undertakings:
Name
Registered office
Oy Fennoscandian Resources AB
Plåtslagarevägen 35 A 1, 20320 Turku, Finland
Jokkmokk Iron Mines AB
Beowulf Mining Sweden AB(2)
Wayland Copper Limited
Wayland Sweden AB
(1) Previously Norrbotten Mining AB
(2) Indirectly held
(3) Effective interest
Storgatan 36, 921 31, Lycksele, Sweden
Storgatan 36, 921 31, Lycksele, Sweden
201 Temple Chambers, 3-7 Temple Avenue, London
Storgatan 36, 921 31, Lycksele, Sweden
Details on the non-controlling interest in subsidiaries is given in note 13.
64
Beowulf Mining plc Annual Report 2017
10.
LOANS AND OTHER FINANCIAL ASSETS
Group
At 1 January 2016
Disposals in the year
Foreign exchange movements
At 31 December 2016
At 1 January 2017
Foreign exchange movements
Disposals
At 31 December 2017
Company
Loans to
group
undertakings
£
At 1 January 2016
Advances made in the year
7,065,318
737,821
At 31 December 2016
7,803,139
At 1 January 2017
Advances made in the year
7,803,139
1,147,702
At 31 December 2017
8,950,841
Financial
assets
£
2,784
-
2,784
2,784
-
2,784
Further details of the transactions in the year are shown within related parties disclosure note 20.
Financial
fixed
Assets
£
51,938
(50,444)
4,009
5,503
5,503
41
(14)
5,530
Totals
£
7,068,102
737,821
7,805,923
7,805,923
1,147,702
8,953,625
64
65
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
11.
TRADE AND OTHER RECEIVABLES
Other receivables
VAT
Prepayments and
accrued income
Group
Company
2017
£
22,189
15,006
2016
£
237
22,447
2017
£
-
12,264
2016
£
237
14,408
27,837
29,082
27,837
20,013
65,032
51,766
40,101
34,658
Included in other receivables is a deposit of £19,017 held by Finnish regulatory authorities.
12.
CASH AND CASH EQUIVALENTS
Group
2017
£
2016
£
2017
£
Company
2016
£
Bank accounts
1,589,897
1,609,219
1,508,321
1,567,770
1,589,897
1,609,219
1,508,321
1,567,770
13.
NON-CONTROLLING INTERESTS
Wayland Copper Limited, a 65.25 per cent owned subsidiary of the Company that has material non-controlling
interests (“NCI”).
Summarised financial information reflecting 100 per cent of the underlying subsidiary’s relevant figures is set out
below:
Administrative expenses
Loss after tax
Loss allocated to NCI
Other comprehensive income allocated to NCI
2017
£
(3,793)
2016
£
(3,178)
(3,793)
(3,178)
(1,318)
40
(1,104)
972
Total comprehensive loss allocated to NCI
(1,278)
(132)
Current assets
Current liabilities
Net (liabilities)
8,922
(468,982)
10,687
(467,069)
(460,060)
(456,382)
NCI at 34.75 per cent
(159,871)
(158,593)
66
Beowulf Mining plc Annual Report 2017
14.
SHARE CAPITAL
Allotted, called up and fully paid
At 1 January
Issued for cash
2017
Number
2017
£
2016
Number
2016
£
502,630,331
5,026,302
430,313,824
4,303,138
23,076,923
230,770
66,829,007
Issued in settlement of expenses
-
-
2,937,500
Issued in option exercise
8,500,000
85,000
-
668,289
29,375
-
Issued for acquisition of subsidiary
-
-
2,550,000
25,500
At 31 December
534,207,254
5,342,072
502,630,331
5,026,302
The par value of all Ordinary Shares in issue is £0.01.
The Company has removed the limit on the number of shares that it is authorised to issue in accordance with
the Companies Act 2006.
Shares issued in 2017
On 17 October 2017, the Company announced that Bevan Metcalf a Director, had been issued 8,500,000, as
a result of the exercise of options.
On 17 May 2017, the Company announced a subscription to raise £1.5m (before expenses) through the issue
of 23,076,923 new ordinary shares of 6.5 pence each.
Shares issued in 2016
On 11 January 2016, the Company issued 2,100,000 million new ordinary shares of 6.4 pence each, in
connection with its acquisition of Fennoscandian.
On 11 February 2016, the Company issued 729,329 new ordinary shares of 6.4 pence each. This included
the issue of 450,000 new ordinary shares being the deferred payment in connection with its acquisition of
Fennoscandian and 279,329 new ordinary shares in satisfaction of the professional fees.
On 25 February 2016, the Company announced that it had raised £1.25 million before expenses and issued
38,461,538 new ordinary shares at a price of 3.25 pence per new ordinary share.
On 2 March 2016, the Company announced that the over-allotment option announced on 25 February 2016,
was exercised on 29 March by the Company in respect of 7,692,307 new ordinary shares at a price of 3.25
pence per new ordinary share raising £0.25 million before expenses.
On 21 December 2016, the Company announced a subscription for £1million (before expenses). Pursuant to
the subscription, the Company issued to Swedish investors 20,000,000 ordinary shares of 1.0 pence each to
raise approximately £860,000 (before expenses) at a price of 0.5 SEK per ordinary share and to 3,333,333
ordinary shares to UK investors to raise approximately £140,000 (before expenses) at a price of 4.2 pence per
new ordinary share.
66
67
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
15.
SHARE-BASED PAYMENTS
During the year ended 31 December 2017, 4,500,000 options were granted (2016: Nil). The options
outstanding as at 31 December 2017 have an exercise price in the range of 4.00 pence to 12.00 pence
(2016: 1.66 pence to 4.00 pence) and a weighted average remaining contractual life of three years (2016: 3.5
years).
The equity-settled share-based payments expense for the options for the year ended 31 December 2017 was
£203,059 (2016: £40,109).
The fair value of services received during 2017 in return for share options granted was based on the fair value
of share options granted, measured using the Black-Scholes model, with the following inputs
Fair value at grant date
Share price
Exercise price
Expected volatility
Option life
Risk free interest rate
8.73p
14.38p
12.00p
70%
5 years
0.25%
The expected volatility was determined by reviewing the actual volatility of the Company’s share price in the five
years preceding the date of granting the option.
The cost of shares issued as part of the acquisition of Fennoscandian, has been calculated using a Black-
Scholes pricing model. The inputs of this model are outlined in note 9.
Reconciliation of options in issue
Outstanding at 1 January 17
Granted during the year
Exercised during the year
Outstanding at 31 December 17
Number
18,000,000
4,500,000
(8,500,000)
14,000,000
Weighted
average
exercise
price (£’s)
0.018
0.120
0.016
0.051
Exercisable at 31 December 17
9,500,000
0.018
No warrants were granted during the year (2016: Nil).
68
Beowulf Mining plc Annual Report 2017
16.
RESERVES
The following is a description of each of the reserve accounts that comprise equity shareholders’ funds:
Share capital
Share premium
The share capital comprises the issued ordinary shares of the Company
at par.
The share premium comprises the excess value recognised from the issue
of ordinary shares above par value.
Revaluation reserve
Gains/losses arising on the revaluation of the Group’s listed investments.
Prolonged declines in value at transferred to profit and loss.
Capital contribution reserve
The capital contribution reserve represents historic non-cash
contributions to the Company from equity holders.
Share-based payments reserve
Translation reserve
Merger reserve
Cumulative fair value of options charged to the consolidated income
statement net of transfers to the profit or loss reserve on exercised and
cancelled/lapsed options.
Cumulative gains and losses on translating the net assets of overseas
operations to the presentation currency.
The balance on the merger reserve represents the fair value of the
consideration given in excess of the nominal value of the ordinary
shares issued in an acquisition made by the issue of shares where the
transaction qualifies for merger relief under the Companies Act 2006.
Accumulated losses
Accumulated losses comprise the Group’s cumulative accounting profits
and losses since inception.
17.
TRADE AND OTHER PAYABLES
Current:
Trade payables
Amounts owed to participating interests
Social security and other taxes
Other payables
Accruals and deferred income
Group
Company
2017
£
165,775
-
4,321
7,614
96,667
2016
£
142,329
9,658
10,089
8,319
43,657
2017
£
53,263
-
6,393
1,725
61,899
2016
£
64,933
-
8,786
933
31,380
274,377
214,052
123,280
106,032
68
69
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
18.
FINANCIAL INSTRUMENTS
The Group and Company’s financial instruments comprise cash and cash equivalents, loans and investments,
trade receivables and trade payables that arise directly from its operations.
The Group and Company hold the following financial instruments:
Group
Company
Held at
amortised
cost
£
Total
£
Held at
amortised
cost
£
Total
£
At 31 December 2017
Financial assets
Cash and cash equivalents
1,589,897
1,589,897
1,508,321
1,508,321
Trade and other receivables
22,189
22,189
-
-
Loans to group undertakings
-
-
8,950,841
8,950,841
Other financial assets
5,530
5,530
2,784
2,784
Financial liabilities
Trade and other payables
270,056
270,056
116,887
116,887
1,617,616
1,617,616
10,461,946 10,461,946
Group
Company
Held at
amortised
cost
£
Total
£
Held at
amortised
cost
£
Total
£
At 31 December 2016
Financial assets
Cash and cash equivalents
1,609,219
1,609,219
1,567,770
1,567,770
Trade and other receivables
Loans to group undertakings
237
-
237
-
237
237
7,803,139
7,803,139
Other financial assets
5,503
5,503
2,784
2,784
1,614,959
1,614,959
9,373,930
9,373,930
Financial liabilities
Trade and other payables
203,941
203,941
97,245
97,245
70
Beowulf Mining plc Annual Report 2017
The main purpose of these financial instruments is to finance the Group’s and Company’s operations. The
Board regularly reviews and agrees policies for managing the level of risk arising from the Group’s financial
instruments as summarised below.
a) Market Risk
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates, interest
rates and equity prices will affect the Group’s and Company’s income or the value of its holdings in financial
instruments.
i) Foreign Exchange Risk
The Group operates internationally and is exposed to currency risk arising on cash and cash equivalents,
receivables and payables denominated in a currency other than the respective functional currencies of the
Group entities, which are primarily Swedish Krona, Euro and Sterling. The Group’s and Company’s net
exposure to foreign currency risk at the reporting date is as follows:
Group
Company
Net foreign currency financial
2017
(liabilities)/assets
£
Swedish Krona
Euro
(9,784)
19,543
2016
£
752,879
4,494
2017
£
24,636
15,476
2017
£
811,254
(17,667)
Total net exposure
9,759
757,373
40,112
793,587
Sensitivity analysis
A 10 per cent strengthening of sterling against the Swedish Krona at 31 December 2017 would have increased/
(decreased) equity and profit or loss by the amounts shown below:
Group
Swedish Krona
Euro
Total
Profit or loss
Equity
2017
£
978
(1,954)
2016
£
(75,288)
(449)
2017
£
978
(1,954)
2016
£
(75,288)
(449)
(976)
(75,737)
(976)
(75,737)
70
71
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
Company
Swedish Krona
Euro
Total
Profit or loss
Equity
2017
£
(2,464)
(1,548)
2016
£
(81,125)
1,767
2017
£
(2,464)
(1,548)
2016
£
(81,125)
1,767
(4,012)
(79,358)
(4,012)
(79,358)
A 10 per cent weakening of sterling against the foreign currencies at 31 December 2017 would have an equal
but opposite effect on the amounts shown above.
ii) Commodity Price Risk
The principal activity of the Group is the exploration for iron ore in Sweden and graphite in Finland, and the
principal market risk facing the Group is an adverse movement in the price of such commodities/industrial
minerals. Any long term adverse movement in market prices would affect the commercial viability of the Group’s
various projects.
iii) Interest Rate Risk
The Group’s and Company’s policy is to retain its surplus funds on the most advantageous term of deposit
available up to a 12 month maximum duration. Given that the Directors do not consider that interest income
is significant in respect of the Group’s and Company’s operations no sensitivity analysis has been provided in
respect of any potential fluctuations in interest rates.
b) Credit Risk
The Group’s principal financial assets are the cash and cash equivalents and loans and receivables, as
recognised in the statement of financial position, and which represent the Group’s maximum exposure to credit
risk in relation to financial assets. The Group and Company policy for managing its exposure to credit risk
with cash and cash equivalents is to only deposit surplus cash with financial institutions that hold a Standard &
Poor’s, BBB- rating as a minimum.
The Company has made unsecured interest-free loans to its subsidiaries. Although they are repayable on
demand, they are unlikely to be repaid until the projects becomes successful and the subsidiaries start to
generate revenues.
The amounts used by the subsidiaries are as follows:
Jokkmokk Iron Mines AB
Beowulf Sweden AB
Wayland Copper Ltd
Oy Fennoscandian Resources AB
72
2017
£
2016
£
8,006,577
243,535
-
700,728
7,400,249
162,965
2,300
237,625
8,950,840
7,803,139
Beowulf Mining plc Annual Report 2017
c) Liquidity Risk
To date the Group and Company have relied on shareholder funding to finance operations. As the Group and
Company have finite cash resources and no material income, the liquidity risk is significant and is managed
by controls over expenditure and cash resources. In addition, the Group and Company do not have any
borrowings and only have trade and other payables with a maturity of less than one year. The rationale for the
preparation of the accounts on a going concern basis is detailed in the Report of the Directors.
d) Capital Management
The Groups capital structure consists of issued capital and reserves, accumulated losses and non-controlling
interest. The Board’s policy is to preserve a strong capital base in order to maintain investor, creditor and market
confidence and to safeguard the future development of the business, whilst balancing these objectives with the
efficient use of capital.
Net debt
Group
Cash and cash equivalents
Trade payables
Net cash / (debt)
Total equity
2017
£
1,589,897
(274,377)
2016
£
1,609,219
(214,052)
1,315,520
1,395,167
10,858,078
9,647,473
Net cash to equity ratio
12.12%
14.46%
19.
SEGEMENT REPORTING
The Group’s only reportable segment is the exploration for, and the development of iron ore, graphite and
other mineral deposits. The Group also reports by geographical reportable segment in the countries in
which it operates. The Group’s exploration and development activities are focused on two countries, Sweden
and Finland, with support provided from the UK headquarters. In presenting information on the basis of
geographical reportable segments, the loss for the year, key statement of financial position data, property,
plant and equipment additions and deferred exploration additions is based on the geographical location of
the assets. The Group has adopted IFRS 8 ‘Operating Segments’. IFRS 8 requires operating segments to be
identified on the basis of internal reports that are regularly reviewed by the chief operating decision maker to
allocate resources and assets.
2017
Sweden
£
Licence and Exploration
Other non-current assets
Current assets
Liabilities
Expenses
Loss for the year
Other comprehensive income
7,243,622
15,745
47,978
(83,286)
(136,073)
(136,073)
91,353
Finland
£
947,610
15,581
57,639
(67,961)
(188,409)
(188,409)
(23,493)
UK
£
Total
£
-
2,784
1,549,312
(123,130)
(720,318)
(715,084)
-
8,191,232
34,110
1,654,929
(274,377)
(1,044,800)
(1,039,566)
67,860
72
73
Beowulf Mining plc Annual Report 2017
Notes to the Consolidated Financial Statements
2016
Licence and Exploration
Other non-current assets
Current assets
Liabilities
Finance income
Expenses
Loss for the year
Other comprehensive income
Sweden
£
6,626,751
26,091
28,194
(86,529)
-
(83,485)
(83,485)
623,926
Finland
£
559,825
-
29,412
(21,883)
-
(5,946)
(5,946)
2,512
UK
£
Total
£
-
2,923
1,603,379
(105,640)
5,344
(549,142)
(543,798)
55,664
7,186,576
29,014
1,660,985
(214,052)
5,344
(638,573)
(633,229)
682,102
20.
RELATED PARTY DISCLOSURES
Transactions with subsidiaries
During the year, cash advances of £369,390 (2016: £233,079) were made to Jokkmokk Iron Mines AB and
incurred costs of £236,938 that were paid on behalf by the Company (2016: £101,853). The advances are
held on an interest free inter-group loan which has no terms for repayment. At the year end the inter-Group
loan amounted to £8,006,577 (2016: £7,400,249).
Beowulf Sweden AB received cash advances of £13,192 (2016: £74,699) and incurred costs of £67,379
(2016: £88,266) that were paid on behalf by the Company. The advances are held on an interest free inter-
Group loan which has no terms for repayment. At the year end the inter-Group loan amounted to £243,535
(2016: £162,965).
In the year ended 31 December 2017, cash advances of £Nil (2016: £2,300) were made to Wayland Copper
Group, formerly a joint venture entity which became a subsidiary on 1 October 2014. These advances have no
repayment term and are interest free.
OY Fennoscandian AB received cash advances of £433,181 (2016: £196,975) and incurred costs of £29,923
(£Nil) that were paid on behalf by the Company. The advances are held on an interest free inter-Group loan
which has no terms for repayment. At the year end the inter-Group loan amounted to £700,728.
In accordance with its service agreement, Fennoscandian charges Beowulf Mining plc for time incurred by its
staff on exploration projects held by other entities in the Group. In turn Beowulf Mining plc recharges the other
entities involved. In addition Beowulf Mining plc charges entities in the Group for time and expenses spent by
Directors on providing services. An arm’s length margin has been included, but subsequently eliminated on
consolidation.
74
Beowulf Mining plc Annual Report 2017
Transactions with other related parties
The aggregate compensation paid to key management personnel of the Company is set out below:
Short-term employee benefits (including
employers’ national insurance contributions)
Post-retirement benefits
Share based payments
Insurance
2017
£
2016
£
362,985
26,782
337,275
300
300,866
15,884
334,216
-
727,342
650,966
Mr Rasmus Blomqvist, who currently acts as Exploration Manager incurred a share-based payment charge of
£134,216 (2016: £294,107) as a result of the fair valuing of shares to be issued in respect of the acquisition of
Fennoscandian.
Mr Blomqvist incurred a separate charge of £81,335, with respect to the 2,000,000 options granted during the
year (2016: Nil).
Mr Bevan Metcalf, a Director who served during the year until his resignation, made a gain of £378,450 on
options he exercised on 10 October 2017. The options exercised were issued in July 2015 and had an exercise
price of 1.66p.
Mr Rasmus Blomqvist is the Managing Director of Oy Fennoscandian Investment Group AB (‘FIG’), which
during the year, the Company paid £16,775, in accordance with a memorandum of understanding between
FIG and the Company, that the Company would have the right of first refusal to develop several assets under
investigation by FIG.
Mr Budge, a Director who served during the year had no amounts outstanding in relation to reimbursement,
(2016: £1,813).
21.
EVENTS AFTER THE REPORTING DATE
On 22 February 2018, 2.1 million ordinary shares of 1.0 pence were issued to Rasmus Blomqvist, the
Company’s Exploration Manager, as a first tranche of deferred consideration pursuant to the acquisition of
Oy Fennoscandian Resources AB. The second and final tranche of 2.1 million ordinary shares of 1.0 pence
will be issued subject to competition of a bankable feasibility study on one of the graphite projects in the
Fennoscandian portfolio.
74
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Beowulf Mining plc Annual Report 2017
Beowulf Mining plc Annual Report 2017
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Directors
Mr C Davies
Mr K R Budge
Mr G Farm
Secretary
Mr L O’Donoghue
Auditors
BDO LLP
55 Baker Street
London
W1U 7EU
Public Relations UK
Blytheweigh Communications Limited
4-5 Castle Court
London
EC3V 9DL
Registered Number & Office
Nominated Adviser & Broker
Public Relations Sweden
02330496 (England & Wales)
Cantor Fitzgerald Europe
Diplomat Communications
Beowulf Mining plc
201 Temple Chambers
3-7 Temple Avenue
London EC4Y 0DT
1 Churchill Place
Level 20
Canary Wharf
London
E14 5RB
Nybrogatan 12
SE-114 39 Stockholm
Sweden
Finnish Office
Swedish Custodian Bank
Solicitors
Spearing Waite LLP
34 Pocklingtons Walk
Leicester
LE1 6BU
Website
www.beowulfmining.com
Oy Fennoscandian Resources AB
Plåtslagarevägen 35 A 1
Skandinaviska
Banken AB
20320 Turku
Finland
SEB Securities Services
106 40 Stockholm
Sweden
Swedish Registered Address
UK Bank
The Royal Bank of
Scotland
Piccadilly Circus Branch
48 Haymarket
London
SW1Y 4SE
All subsidiary companies
Storgatan 36,
921 31 LYCKSELE
Sweden
Registrars
Neville Registrars Ltd
Neville House,
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
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www.beowulfmining.com