BEOWULF MINING PLC
ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Company Number 02330496
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
CONTENTS
COMPANY PROFILE .................................................................................................................................................. 2
CHAIRMAN’S STATEMENT ....................................................................................................................................... 4
REVIEW OF OPERATIONS AND ACTIVITIES .............................................................................................................. 5
BOARD OF DIRECTORS AND SENIOR MANAGEMENT ............................................................................................ 17
STRATEGIC REPORT ............................................................................................................................................... 19
DIRECTORS’ REPORT .............................................................................................................................................. 27
DIRECTORS’ REMUNERATION REPORT .................................................................................................................. 31
CORPORATE GOVERNANCE STATEMENT ............................................................................................................... 34
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC .............................................. 38
CONSOLIDATED INCOME STATEMENT .................................................................................................................. 45
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ................................................................................ 46
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................................................... 47
COMPANY STATEMENT OF FINANCIAL POSITION ................................................................................................. 48
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.......................................................................................... 49
COMPANY STATEMENT OF CHANGES IN EQUITY .................................................................................................. 50
CONSOLIDATED STATEMENT OF CASH FLOWS...................................................................................................... 51
COMPANY STATEMENT OF CASH FLOWS .............................................................................................................. 52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .................................................................................... 53
COMPANY INFORMATION ..................................................................................................................................... 90
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
2
COMPANY PROFILE
Beowulf Mining plc (“Beowulf” or the “Company”) is listed on London’s Alternative Investment Market (“AIM”)
(Ticker: BEM) and Stockholm’s Spotlight Exchange (Ticker: BEO).
Beowulf is a mineral exploration and development company focused on becoming a European supplier of
minerals required for the green transition.
The Company is advancing the Kallak iron ore project (“Kallak”) located approximately 40 kilometres (“km”) west
of Jokkmokk in the County of Norrbotten, Northern Sweden, 80 km southwest of the major iron ore mining
centre of Malmberget, and approximately 120 km to the southwest of LKAB’s Kiruna iron ore mine. Metallurgical
test-work has demonstrated that Kallak has the potential to produce a market-leading high-grade iron
concentrate that is expected to be highly sought-after to support the decarbonisation of the steel industry in
Europe and further afield.
On 22 March 2022, the Company’s wholly-owned subsidiary, Jokkmokk Iron Mines AB (“Jokkmokk Iron”), was
awarded an Exploitation Concession for the Kallak North deposit (“Kallak North”). This permit provides exclusive
mining rights in the defined areas for a period of 25 years. Kallak North has an estimated Mineral Resource of
111 million tonnes (Mt) in the Measured and Indicated category, with an average grade of 28 per cent iron
content and a further 25 Mt in the Inferred category, with an average grade of 28.3 per cent iron content. In the
Kallak area, the Company has additional defined Mineral Resources and exploration targets which could support
a longer life mining operation beyond Kallak North. On 24 January 2023, Beowulf released a Scoping Study from
Kallak North demonstrating the preliminary technical and economic viability of Kallak. The Scoping Study
envisaged an open pit mining operation producing an average of 2.5 Mt per year of concentrate with an average
grade of 69 per cent iron content over an initial 14 year mine life. A Preliminary Feasibility Study (“PFS”) for Kallak
was initiated on 24 October 2023. Significant progress has been made towards the completion of the PFS
including updated metallurgical test-work which demonstrated the potential for Kallak to produce 2.7 Mt per
year of a concentrate with a grade of over 70 per cent iron content and assisted in defining the updated process
flowsheet. Environmental baseline studies were progressed through the year and the formal consultation
process was initiated in preparation for the Environmental Impact Assessment (“EIA”) and subsequent
Environmental Permit application.
Beowulf’s 100 per cent owned subsidiary, Grafintec Oy (“Grafintec”), is focused on developing a graphite anode
material processing plant (“GAMP”) in Finland. In March 2025, the Company announced robust economics from
a PFS for the GAMP with an after-tax net present value of US$924 million and an internal rate of return of 37 per
cent. The GAMP PFS considers a three-stage process involving spheronisation, purification and coating with
initial production of 25,000 tonnes of Coated Spherical Purified Graphite (“CSPG”) per year with the potential to
expand to an annual production of 75,000 tonnes of CSPG delivering further economic upside. The Company
continues to receive support from Business Finland, the Finnish governmental organisation for innovation
funding and investments and is also well located to benefit from further EU and Finnish initiatives to support the
clean energy transition. Grafintec also holds a number of exploration properties, including Aitolampi, which is
one of Europe’s largest flake graphite resources, with a Mineral Resource Estimate of 26.7 Mt at 4.8 per cent
total graphic carbon (“TGC”) for 1,275,000 tonnes of contained graphite. Additionally, the Rääpysjärvi
exploration permit, which is located 8 km from Aitolampi, is early stage but appears to have a similar potential
scale as Aitolampi and also has significant high-grade potential based on surface sampling. Both projects could
represent future feed for the GAMP, thereby creating a fully vertically integrated Finnish graphite business.
Beowulf also holds a number of prospective exploration assets both in Kosovo, through its wholly owned
subsidiary Vardar Minerals Ltd (“Vardar”), as well as in the Nordics. At the end of 2023, Beowulf owned a 61.1
per cent interest in Vardar but on 4 March 2024, the Company announced that it had reached agreement with
the minority holders of Vardar to consolidate 100 per cent of Vardar and its subsidiaries through the issue of
new Beowulf shares. The transaction was concluded on 8 April 2024. During 2024, Vardar’s exploration
programme consisted of geological mapping, surface sampling and drone magnetic surveys over its extensive
exploration licences.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
3
COMPANY PROFILE (continued)
Company’s Purpose
The Company’s purpose is to be a responsible and innovative resource company that creates value for our
shareholders, local stakeholders, wider society, and the environment, through sustainably producing critical raw
materials, which includes iron ore and graphite, needed for the transition to a Green Economy.
The Company’s approach is to work in partnership with local communities and stakeholders.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
4
CHAIRMAN’S STATEMENT
Dear Shareholders,
I am pleased to introduce the Annual Report for 2024.
The Company has continued to make excellent progress at its two core assets. At the Kallak project, significant
progress has been made with the PFS. Metallurgical test-work has demonstrated that Kallak has the potential to
produce a market-leading concentrate that should command a significant premium as the steel industry
continues towards decarbonisation. Other elements of the PFS have been concluded or significantly advanced
including the mineral processing, site infrastructure and waste management. Preparation for the Environmental
Permit application has also continued apace with the initiation of the public consultation process. It was a
personal pleasure and honour to attend the town-hall meeting in Jokkmokk led by Kallak Project Director,
Dmytro Siergieiev, and the Jokkmokk Iron team, supported by our consultants. Engaging with the local
community is critical to the future success of the project to enable us to ensure that Kallak is developed into a
world class modern mine for the benefit of all stakeholders.
The conclusion of the GAMP PFS in Finland following the year end marks a major milestone for Grafintec. The
project has demonstrated the potential to produce battery grade CSPG, reduce energy costs and reagent usage
and deliver extremely robust economics. We continue to review optimal sites for the GAMP and progress with
the EIA ahead of the environmental permit application. The next phase of development for the GAMP is to
undertake pilot testing and complete a Definitive Feasibility Study (“DFS”). In parallel we are continuing to
engage with a number of potential strategic partners.
In Kosovo and on our Nordic exploration licences, we have continued to develop and refine exploration targets
through low-cost mapping and surface sampling. With the focus on advancing our core assets, we are continuing
discussions with a number of potential joint venture partners including both large and intermediate mining
companies.
On 8 May 2025, we announced that we had successfully raised SEK 28.1 million (approximately £2.2 million)
before transaction related costs in new equity to advance the Company’s assets. The objective continues to be
to demonstrate the technical and economic viability of our assets, as we have demonstrated with the GAMP PFS,
and ultimately unlock their underlying value. The market has been challenging but the Company and its assets
continue to make significant strides and I remain confident that with the support of our shareholders and
stakeholders, the future for Beowulf is bright.
I would like to thank our shareholders and stakeholders for their continuing support.
J Röstin
Non-Executive Chairman
22 May 2025
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
5
REVIEW OF OPERATIONS AND ACTIVITIES
Sweden
Permits
Beowulf, via its subsidiary Jokkmokk Iron Mines AB (“JIMAB”), held five exploration permits in Sweden with one
having an application for its extension lodged, and one Exploitation Concession, at the end of 2024, as set out in
the table below:
Exploration Permit
Name
Licence no.
Area
(hectares)
Valid from
Valid to
Kallak nr 101
2023:165
397
26/10/2023
26/10/2026
Kallak nr 1021
2025:38
285
09/04/2025
09/04/2028
Parkijaure nr 62
2019:81
999
10/10/2019
10/10/2027
Parkijaure nr 7
2021:47
2,212
16/06/2021
16/06/2027
Parkijaure nr 8
2024:30
2,440
27/02/2024
27/02/2027
Exploitation
Concession Name
Licence no.
Area
(hectares)
Valid from
Valid to
Kallak K nr 13
BK-2022:1
103
22/03/2013
22/03/2047
Notes:
(1) Following the expiry of licence Parkijaure nr 2 on 18/01/2025, an exemption from the moratorium which follows the end of the full term
of a licence, was applied for and granted and new licence Kallak nr 102 covering the same area was granted on 09/04/2025.
(2) The licence expired on 10/10/2024 and an application for a licence extension was lodged and approved following the year end.
(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. On 22 March 2022, the Minister of Enterprise and
Innovation, announced the award of the Concession for Kallak nr 1.
Kallak Introduction
The Kallak iron ore deposit is located approximately 40 km west of Jokkmokk in the County of Norrbotten,
northern Sweden, 80 km southwest of the major iron ore mining centre of Malmberget, and approximately 120
km to the southwest of LKAB’s Kiruna iron ore mine.
Kallak has the benefit of local infrastructure with all-weather gravel roads passing through the project and
forestry tracks allowing for easy access throughout the licence. A major hydroelectric power station, with
associated electric powerlines, is located only a few kilometres to the southeast. The nearest railway, the
Inlandsbanan, passes approximately 40 km to the east. The Inlandsbanan meets the Malmbanan railway at
Gällivare, which provides routes to the Atlantic port at Narvik in Norway or to various ports on the Bothnian Sea
in Sweden.
Kallak is well positioned as a potential secure and sustainable supplier of market-leading high-grade iron
concentrate to support the decarbonisation of the steel sector.
Kallak Resource
Kallak was discovered by The Swedish Geological Survey (“SGU”) in the 1940s. The first exploration licence for
the project was awarded by the Mining Inspectorate of Sweden in 2006. Drilling was conducted at Kallak
between 2010 and 2014 with a total of 131 holes and 27,895 metres (“m”).
On 25 May 2021, the Company published a Mineral Resource Estimate (“MRE”) and Exploration Target Upgrade,
prepared by independent consultant Baker Geological Services (“BGS”). For Kallak North, a Measured and
Indicated Resource of 111 Mt grading 28 per cent iron content was defined, with an additional Inferred Resource
of 25 Mt grading 28.3 per cent iron.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
6
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
For Kallak North and South combined, BGS derived a Measured and Indicated Mineral Resource of 132 Mt
grading 27.8 per cent iron and an Inferred Mineral Resource of 39 Mt grading 27.1 per cent iron. In addition to
the figures above, exploration targets were reported for Kallak South and the Company's Parkijaure licences.
BGS prepared a Technical Report which serves as an independent report prepared by the Competent Person
(“CP”) as defined by the Pan-European Reserves and Resources Reporting Committee (“PERC”) Standard for
Reporting of Exploration Results, Mineral Resources and Mineral Reserves. PERC sets out minimum standards,
recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral
Reserves in Europe. PERC is a member of CRIRSCO, the Committee for Mineral Reserves International Reporting
Standards, and the PERC Reporting Standard is fully aligned with the CRIRSCO Reporting Template.
Below is a table showing the Mineral Resource Statement for the Kallak Project at a 0 per cent iron (“Fe”) cut-
off grade:
Deposit
Classification
Million
Tonnes
Density
(g/cm3)
Fe
(%)
FeO
(%)
SiO2
(%)
Al2O3
(%)
P
(%)
S
(%)
Kallak North
Measured
16
3.5
33.6
10.5
43.4
2.9
0.04
0.002
Indicated
95
3.3
27.0
7.1
49.8
4.5
0.03
0.002
Sub-Total
111
3.3
28.0
7.6
48.9
4.3
0.03
0.002
Inferred
25
3.4
28.3
7.8
48.1
4.2
0.04
0.002
Kallak South
North
Measured
Indicated
21
3.3
26.9
7.2
49.3
4.9
0.04
0.003
Sub-Total
21
3.3
26.9
7.2
49.3
4.9
0.04
0.003
Inferred
6
3.2
23.4
6.5
50.1
6.6
0.05
0.004
Kallak South
South
Measured
Indicated
Sub-Total
Inferred
8
3.3
26.1
12.0
50.1
5.2
0.05
0.009
Total
Measured
16
3.5
33.6
10.5
43.4
2.9
0.04
0.002
Indicated
116
3.3
27.0
7.1
49.7
4.6
0.03
0.002
Sub-Total
132
3.3
27.8
7.5
48.9
4.4
0.03
0.002
Inferred
39
3.3
27.1
8.5
48.8
4.8
0.04
0.004
Notes:
(1) Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
(2) The effective date of the Mineral Resource is 9 May 2021.
(3) The Open Pit Mineral Resource Estimate was constrained within lithological and grade-based solids and within an optimised pit shell
defined by the following assumptions; base case metal price of USD130 / tonne for a 65 per cent Fe concentrate; Fe recovery of 71 per cent
at Kallak North, 86 per cent at Kallak South North and 94 per cent at Kallak South South; Fe concentrate grades of 68 per cent at Kallak North,
70 per cent at Kallak South North and 69 per cent at Kallak South South; Processing costs of USD6.8 / t wet; Selling cost of USD21.0 / t wet
concentrate; Mining cost of Ore of USD3.3 / t, mining cost of waste of USD3.0 / t and an incremental mining cost per 10 m bench of USD0.05 /
t; Wall angles of 30° within the overburden and 47.5° in the fresh rock.
(4) Mineral Resources have been classified according to the PERC Standards 2017, by Howard Baker (FAusIMM(CP)), an independent
Competent Person as defined in the PERC Standard 2017.
(5) FeO refers to the iron oxide, magnetite (Fe3O4 or FeO.Fe2O3) and not haematite (Fe2O3), SiO2 refers to silica, the chemically resistant dioxide
of silicon, Al2O3 refers to alumina, an oxide of aluminium, p refers to phosphorous and S refers to sulphur.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
7
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
BGS reported an Exploration Target in an untested gap between Kallak South North and Kallak South South, of
between 25 Mt and 75 Mt grading between 20 per cent iron to 30 per cent iron. In addition, an Exploration
Target of between 45 Mt and 135 Mt grading between 20 per cent iron to 30 per cent iron at has been reported
at Parkijaure. The potential quantity and grade are conceptual in nature as there has been insufficient
exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of
a Mineral Resource.
On 22 March 2022, the Swedish Government awarded an Exploitation Concession for Kallak North; attached to
the decision were 12 conditions for the Company to comply with. The Company's legal advisers reviewed the
Government's decision and the conditions attached to it and, with respect to the conditions, were satisfied that
these were matters the Company would naturally expect to address during project development and the
Environmental Court process.
An application was subsequently filed with the Supreme Administrative Court by two Sami villages, Jåhkågasska
tjiellde and Sirges, and Naturskyddsföreningen, associations for the protection of the environment, at
municipality, county and country level, for a judicial review of the Government's awarding of the Exploitation
Concession. They argued that the Government did not have the right to make the decision in question, with
reference to the fact that it would be contrary to legal rules in support of nature conservation and the national
interest of reindeer husbandry. They argued that the government's decision had no legal basis and that the Court
should therefore declare the decision invalid.
2023 Update
On 24 January 2023, Beowulf announced the positive economic results of the Kallak North Scoping Study, forming
part of the larger Kallak project, prepared by independent consulting firm SRK Consulting (UK) Ltd. The Scoping
Study presented a ‘Base Case’ solely focused on the Kallak North deposit, incorporating a MRE with effective
date of 9 May 2021 and an economic assessment for a mining operation producing up to 2.7 Mt per annum of
high-grade iron concentrate over a production life of 14 years. The scoping study economic highlights include a
Net Present Value at a discount rate of 8 per cent (NPV8) of US$177 million, Internal Rate of Return of 14.5 per
cent and a Payback Period of approximately 4.5 years from commencement of construction activity. The 'Base
Case' assumes two-thirds of Kallak production is sold to the Blast furnace market and one-third is sold to the
higher premium Direct Reduction market, consistent over the 14 years production life.
Prior to the initiation of the PFS for Kallak, a strategic review was completed to properly consider the results of
the Scoping Study, identify any shortfalls and ensure the scope of the PFS was appropriate and would deliver a
robust study. The PFS was subsequently initiated on 24 October 2023 following the appointment of lead
consultant SLR Consulting. Environmental baseline studies, including cultural heritage surveys, nature values and
biodiversity assessment, sound and vibration monitoring, were progressed through the year in preparation for
the EIA and subsequent Environmental Impact application.
An oral hearing was held by the Supreme Administrative Court in September 2023, following which the applicant
(the lawyer representing the Sami villages) filed a further submission and to which the Court invited the
Government to respond. The submission primarily related to environmental impacts, a number of which are
subject to the ongoing environmental baseline studies and will form part of the Environmental Impact
Assessment and subsequent Environmental Permit application.
2024 Update
On 18 January 2024 the Swedish Government provided the Supreme Administrative Court with a formal response
to the applicant’s previous submission. In a comprehensive response the Government endorsed the original
decision to award the Exploitation Concession. The Government further emphasised its support for the project
stating that the Kallak Project is of national interest.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
8
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
On the 25 June 2024 the Supreme Administrative Court delivered its verdict, upholding the Government's
awarding of the Exploitation Concession for Kallak and therefore the concession and all attaching conditions
remain in full force.
Over the course of 2024, JIMAB continued to make significant progress in the preparation of the Kallak PFS and
Environmental Permit application under the leadership of Dmytro Siergieiev, who was appointed as Project
Director, Jokkmokk Iron, in May 2024. Dmytro is supported across both the technical and environmental
workstreams by a team of consultants who are industry-leading experts in their respective disciplines.
Studies undertaken in preparation for the Environmental Permit application include nature values and
biodiversity inventories, hydrogeology, waste characterisation, air quality and cultural heritage assessments. The
Consultation Process, a key element of the Kallak EIA and Environmental Permit application, was initiated in
September 2024. The objective of the Consultation Process is to enable Jokkmokk Iron to capture the views of
local stakeholders and Government agencies and authorities to better understand, minimise and mitigate
impacts relating to the future development of Kallak.
Various technical work streams that will feed into the PFS have also been progressed. Metallurgical test-work
demonstrated the ability for Kallak to produce a market leading concentrate with >70 per cent Fe content and
very low impurities making it a suitable feedstock for the decarbonisation of the steel industry. Importantly, test-
work has indicated that this concentrate can be produced through physical separation with no chemicals used in
the upgrading process. Geotechnical investigative studies were completed on the planned open pit and the site
for the tailings management facility, the waste rock dump, the beneficiation plant and other critical on-site
infrastructure. A trade-off study was initiated on potential transportation solutions from the mine to the planned
rail terminal, approximately 40 km away on the Inlandsbanan with options including trucking, a conveyor and a
pipeline. The pipeline was selected as the preferred option due to its minimal social and environmental impact,
high reliability and low operating costs that more than off-set the initial capital cost.
A modest drilling programme, designed to convert some Inferred category resource into the higher confidence
Measured and Indicated categories, was deferred into 2025 to allow the Company to focus resources on the
critical Environmental Permit related workstreams.
The Environmental Permit process is expected to determine the overall timeframe for the ultimate development
of Kallak and therefore workstreams directly relating to the application have been prioritised. The Company has
made significant progress in developing an open and transparent dialogue with local stakeholders and
Government authorities and agencies and remains committed to maintaining this approach.
Finland
Graphite Anode Material Plant (“GAMP”)
Introduction
In January 2023, Grafintec awarded a PFS contract to engineering consultant, RB Plant, to assess the technical,
economic, statutory, regulatory and commercial options for a natural flake graphite anode material plant in
Finland. The study focused on the Coating stage of the anode material processing and was aligned with the
objectives of the funding received from Business Finland as part of the BATCircle2.0 consortium, Business
Finland’s Circular Ecosystem of Battery Metals project and a component of the Business Finland Smart Mobility
and Batteries programme.
2023 Update
The results of the PFS were announced on 20 July 2023, envisaging importing Spherical Purified Graphite (“SPG”)
and producing an initial 20,000 tonne per annum of Coated Spherical Graphite (“CSPG”), for sale to anode
manufacturers. The economics of the study were extremely positive with an after-tax NPV8 of US$242 million,
an Internal Rate of Return of 39 per cent, and a Payback Period of 2.4 years.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
9
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
The development plan for GAMP, announced on 26 September 2023, considered a three-phase development
with the initial phase focused on the final processing stage in the production of graphite anode materials, namely
the Coating stage. The second phase of the development plan was to incorporate the full process comprising
three stages into the plant. Graphite concentrate would be imported from third parties and this would then be
Spheronised, Purified and Coated, producing 20,000 tonnes per year of CSPG. The final phase 3 of the original
plan envisaged an expansion of production to 60,000 tonnes of CSPG per year of product.
The Company signed an agreement with the municipality of Korsholm to secure a new site at the GigaVaasa
industrial hub (Plot 1, Block 3017) to establish a GAMP in February 2023, renewed the agreement for a further
six months in June 2023 and again in February 2024.
With the introduction of export controls by China on 1 December 2023, the Company updated its strategy,
adopting a fast-track development of the full GAMP. Independent consultant Dorfner Anzaplan GmbH
("Anzaplan"), who were already undertaking test-work on behalf of the Company, were appointed as lead
consultant to update and enhance the Coating stage PFS and complete a PFS for the full process route, namely
Spheronisation, Purification and Coating.
2024 Update
On 17 January 2024, the Company announced an updated strategy for GAMP to build the three-stage processing
plant at the outset comprising Spheronisation, Purification and Coating. Graphite concentrate feed will initially
be sourced from third-party mines and the GAMP will then process this material and produce CSPG.
Test-work in support of the GAMP PFS continued during 2024, initially demonstrating the ability to micronise
and spheronize the graphite concentrate to form uniform Spherical Graphite (“SG”). Optimisation work improved
the yield of the process from ~50 per cent to 60 per cent and thereby increased the overall planned output of
the plant from an initial target of 20,000 tonnes per year to ~25,000 tonnes per year with both medium SG and
fine SG fractions. Purification test-work was subsequently completed on the SG to remove impurities an increase
the fixed carbon content to >99.95 per cent required for battery applications producing SPG. Optimisation of the
caustic baking process demonstrated the potential to achieve battery-grade material at lower temperatures and
with less reagents, indicating the potential to significantly reduce operating costs.
Further test-work on the wastewater stream, a secondary process, demonstrated the ability to recover and
recycle over 90 per cent of sodium hydroxide, the critical reagent in the process. This not only reduces the need
for primary sodium hydroxide but also the overall environmental footprint of the plant. High quality calcium
carbonate is produced as a by-product of this wastewater treatment and may be used for neutralisation of the
acidic wastewater or potentially sold to other industries.
Coating and further electro-chemical test-work was initiated on the SPG and concluded in early 2025.
Grafintec was successful in completing the BATCircle2.0 project with €530,000 grant funding received from
Business Finland and was subsequently awarded a further €232,000 grant funding from Business Finland, as part
of the BATCircle3.0 consortium, in support of the development of GAMP. The site reservation in the GigaVaasa
industrial hub expired in August 2024 and, following positive and constructive ongoing discussions with the
municipality of Korsholm and the GigaVaasa team, Grafintec has opted not to apply for an extension. The
Company continues to engage in constructive dialogue with GigaVaasa as well as a number of other potential
sites in Finland.
2025 Update
The PFS was completed and the financial results were announced on the 10 March 2025 demonstrating
extremely positive economics with a Phase 1 post-tax NPV8 of €924 million and post-tax IRR of 37 per cent over
25 years with initial capital cost of €225 million with a pay-back period of 3 years from initial production. Further
upside is demonstrated with the Phase 2 expansion to 75,000 tonnes per year of CSPG production with a post-
tax NPV8 of €2.2 billion and post-tax IRR of 38 per cent over 25 years.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
10
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
Exploration Permits
Beowulf, via its wholly-owned subsidiary, Grafintec, held five exploration permits in Finland at the end of 2024,
as set out in the table below:
Exploration
Permit Name
Licence no.
Area
(hectares)
Notes
Pitkäjärvi 1
ML2016:0040-02
407
Extension permit granted by TUKES on 27/42021
which remained valid until 26/4/2024. A further
extension to the licence was applied for on
15/3/2024 and was granted on 26/6/2024. This
decision was appealed by Heinävesi Municipality
although the appeal was rejected by the Eastern
Finland Administrative Court on 9 April 2025. No
further appeals have been received and therefore
the permit became legally binding for 3 years
effective from 9 April 2025.
Rääpysjärvi 1
ML2017:0104
716
Exploration permit granted. The permit gained legal
force 21/6/2021 and is valid to 20/6/2025.
Karhunmäki 1
ML2019:0113
889
Permit relinquish notification was submitted to
TUKES on 12/12/2024 and became effective on
15/1/2025.
Luopioinen 1
ML2022:0004
217
Exploration permit application submitted 28/1/2022
and remains subject to review and approval by
TUKES. The permit has therefore not gained legal
force yet.
Emas 1
VA2022:0077 /
ML2023:0076
2,565 /
1,569
Approved reservation granted by TUKES on
17/1/2023 and valid until 17/1/2024.
Application for exploration permit submitted
28/2/2022 and remains subject to review and
approval by TUKES. The permit has therefore not yet
gained legal force.
Pirttikoski 1
VA2024:0052
1,813
Approved reservation granted by TUKES 7/11/2024.
Exploration permit application to be submitted
before reservation expiry on 17/10/2025.
Grafintec's exploration programme is targeted at securing long-term sustainably produced primary raw material
supply to support a Finnish graphite anode value chain. The Company has a rolling programme of exploration
permit and claim reservation applications and exploration permit renewals. TUKES (the permitting authority)
processes the Company’s applications, which if deemed satisfactory, are published as a ‘Hearing’ for one month,
during which time appeals can be submitted.
Aitolampi (Pitkäjärvi 1 Exploration Permit) – Graphite
Introduction
The Aitolampi graphite project sits within the Pitkäjärvi 1 licence and is located in eastern Finland, approximately
40 km southwest of the well-established mining town of Outokumpu, and an eastern extension of known historic
graphite workings. Infrastructure in the area is excellent, with road access and good availability of high voltage
power.
Discovered in 2016, the licence covers an area of graphitic schists on a fold limb, coincidental with an extensive
electromagnetic (“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.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
11
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
The resource contains graphite of almost perfect crystallinity, and a high proportion of fine and medium flake,
which is an important prerequisite for high tech applications, such as anode materials for lithium-ion batteries.
Purification results indicate that concentrates meet the purity specification of 99.95 per cent Total Carbon (C(t))
for lithium-ion batteries.
Mineral Resource Estimate
In 2019, Grafintec delivered an upgraded MRE for Aitolampi, with an 81 per cent increase in contained graphite
(compared to the 2018 MRE) for the higher-grade western zone with an Indicated and Inferred Mineral Resource
of 17.2 Mt at 5.2 per cent Total Graphitic Carbon (“TGC”) containing 887,000 tonnes of contained graphite.
An unchanged Indicated and Inferred Mineral Resource of 9.5 Mt at 4.1 per cent TGC for 388,000 tonnes of
contained graphite was reported for the eastern lens.
In total, an Indicated and Inferred Mineral Resource of 26.7 Mt at 4.8 per cent TGC for 1,275,000 tonnes of
contained graphite was reported. All material is contained within two graphite mineralised zones, the eastern
and western lenses, interpreted above a nominal 3 per cent TGC cut-off grade. At a cut-off grade of 5 per cent
TGC cut, an Indicated and Inferred Mineral Resource of 11.1 Mt at 5.7 per cent TGC for 630,000 tonnes of
contained graphite was defined based on the grade-tonnage curve for the resource.
The Mineral Resource was estimated by CSA Global of Australia in accordance with the JORC Code, 2012 Edition.
See table below:
Zone
Classification
Million
Tonnes
TGC %
S %
Density
(t/m3)
Contained
graphite (kt)
Western lens
Indicated
9.2
5.1
5
2.8
468
Inferred
8
5.2
4.7
2.8
419
Indicated + Inferred
17.2
5.2
4.8
2.8
887
Eastern lens
Indicated
1.8
4.1
4.4
2.82
74
Inferred
7.7
4.1
4.5
2.82
314
Indicated + Inferred
9.5
4.1
4.5
2.82
388
Total
Indicated
11
4.9
4.9
2.8
542
Inferred
15.7
4.7
4.6
2.8
733
Indicated + Inferred
26.7
4.8
4.7
2.81
1,275
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
12
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
Kosovo
Vardar Minerals Limited (“Vardar”)
Beowulf’s investment in Vardar gives the Company exposure to base metals and precious metals exploration in
the highly prospective Tethyan Belt.
Vardar has a rolling programme of exploration permit applications and renewals, see table below:
Licence
Number
Term1
Licence
Valid From
Valid To
Area (km2)
2879
2nd
Mitrovica
11/03/2022
27/01/2024
27.1
33182
1st
Mitrovica Pending
2025
2028
27.1
2878
2nd
ViƟ N
22/03/2022
27/01/2024
35.5
33192
1st
ViƟ N Pending
2025
2028
29.7
2912
2nd
ViƟ E
11/03/2022
27/01/2024
44.1
33172
1st
ViƟ E Pending
2025
2028
38.8
2935
1st
Shala
11/03/2022
25/02/2025
87.5
34362
2nd
Shala
2025
2028
43.7
3122
1st
Shala East
06/09/2022
17/08/2025
78.8
3123
1st
Shala West
22/10/2022
11/10/2025
36.2
3054
2nd
Zvecan
27/06/2022
14/05/2024
0.64
33502
1st
Zvecan Pending
2025
2028
1.3
1 Refers to whether the licence has been renewed e.g. 2nd means licence has been renewed after its 1st term.
2 Refers to licences that are currently under applicaƟon. See explanaƟon below.
The original Mitrovica, Viti North and Viti East licences expired on 24 January 2024 and Zvecan on 14 May 2024
in accordance with their terms. Following dialogue with the Independent Commission for Mines and Minerals
(“ICMM”) in Kosovo, applications for new licences were submitted and formal confirmation of receipt was
provided by the ICMM for the initial three on 22 February 2024 and Zvecan on 14 May 2024. Exploration licence
applications are reviewed by the ICMM in Kosovo and ultimately granted by the Board of ICMM. The Government
disbanded the Board of ICMM in October 2023 thus the licence applications remain pending until the new Board
is appointed. With the licence applications formally lodged with ICMM, no other party may apply for licences
over the same area. The Company is confident that the licences will be granted by ICMM in due course and will
update the market accordingly. As these applications are for new licences, they will be valid for an initial three-
year period from the date of granting after which they may be extended twice, for two-year periods with a
reduction in the land holding of 50 per cent on each occasion.
Following the end of 2024, the Shala licence expired. A renewal application for approximately 50 per cent of the
licence was formally lodged with ICMM although remains pending.
Exploration Overview
Vardar’s exploration permits are located in Kosovo, within the Tethyan Belt, a major orogenic metallogenic
province for gold and base metals which extends from the Alps (Carpathians/Balkans) to Turkey, Iran and
Indochina, and contains a number of world class discoveries.
The Tethyan Belt of south-east Europe can be regarded as Europe's chief copper-gold (lead-zinc-silver)
province. Kosovo has seen very limited exploration since the 1980s. The Mitrovica, Shala and Viti licences occur
within calc-alkaline magmatic arc(s) which developed during the closure of the Neotethys Ocean, and are
prospective for epithermal gold, lead-zinc-silver replacement deposits and porphyry related copper-gold
mineralisation.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
13
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
Mitrovica
The Mitrovica licence is located immediately to the west and north west of the world class Stan Terg former lead-
zinc-silver mine, which dates back to the 1930s; with current reported reserves of 29 Mt of ore at 3.45 per cent
lead, 2.30 per cent zinc, and 80 grammes per tonne (“g/t”) silver (ITT/UNMIK 2001 report), together with the
past production of approximately 34 Mt of ore, the deposit represents an important source of metals in the south
eastern part of Europe (Source: Strmić Palinkaš S., Palinkaš L.A et al, 2013. Metallogenic Model of the Trepča Pb-
Zn-Ag Skarn Deposit, Kosovo: Evidence from Fluid Inclusions, Rare Earth Elements, and Stable Isotope Data.
Economic Geology, 108, 135-162). The licence has potential to host a range of porphyry related mineralisation
types.
Shala
During 2022, three Shala exploration licences were approved, extending to the north and northeast of the
Mitrovica licence, its polymetallic epithermal system and associated lead-zinc-silver and gold-silver-copper
mineralisation. The new areas are situated in the prospective Vardar lead-zinc-silver belt along trend from
historical mining districts.
The new licences include prospective carbonate host rocks along with Oligocene magmatic rocks which provide
the heat and metal source in the surrounding lead-zinc ore districts; alteration and gossan outcrops have been
noted in early reconnaissance mapping further demonstrating the potential for lead-zinc-silver mineralisation in
each of the licences.
Viti
In 2020, the Company reported results from detailed 3D IP and resistivity surveys undertaken over the Metal
Creek prospect, which forms part of the Viti project. High chargeability anomalies associated with an extensive
north-northwest trending zone of alteration and anomalous multi-element soil sample and rock grab sample
results were delineated. The newly defined high chargeability anomalies sit near gold and copper mineralisation,
associated with altered porphyritic trachyte dykes, intersected by previous stratigraphic drilling. These
anomalies could represent higher grade mineralised zones.
Zvecan
The Zvecan licence is a small extension licence east of the main Mitrovica project and was created by changes in
municipality boundaries.
2024 Update
On 4 March 2024, Beowulf announced that agreement had been reached with the minority holders of Vardar to
acquire their shares and move from the 61.1 per cent to 100 per cent ownership in an all-share transaction. The
transaction was concluded on 9 April 2024 with the issue of 52,326,761 Beowulf shares to the Vardar minority
holders. The new Beowulf shares remain subject to a 12-month lock-in agreement.
The consolidation provides Beowulf with full control and flexibility to drive the development of Vardar including
reviewing acquisition, divestment, joint venture and strategic investment opportunities. In connection with the
transaction, Ismet Krasniqi, Vardar's local partner in Kosovo, was appointed to the Board of Vardar and continues
to support the company's development.
During the year, exploration activity focused on the Shala licences with the Mitrovica, Viti and Zvecan licences
subject to renewal. Low-cost mapping and surface sampling to define and refine exploration targets was
undertaken during the year.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
14
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
ESG
The Company’s overall purpose is to be a responsible and innovative company that creates value for its
shareholders, local stakeholders, the wider society and the environment through sustainably producing critical
raw materials needed for the global green transition.
The Company wants to be recognised for living its values of Respect, Partnership and Responsibility. In its recent
ESG work it has identified, as material to the Company's activities, the following the UN’s Sustainable
Development Goals and relevant actions under each goal which the Company will contribute to:
Goal 7: Affordable and Clean Energy
o
Target 7.2 - By 2030, increase substantially the share of renewable energy in the global energy mix.
Through the production of graphite anode material for use in the manufacture of lithium-ion batteries,
the Company intends to support the growth in energy storage capacity, a critical element of the
transition to renewable energy.
Goal 8: Decent work and economic growth
o
Target 8.2 - Achieve higher levels of economic productivity through diversification, technological
upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.
o
Target 8.4 - Improve progressively, through to 2030, global resource efficiency in consumption and
production and endeavour to decouple economic growth from environmental degradation, in
accordance with the 10-year framework of programmes on sustainable consumption and production,
with developed countries taking the lead.
o
Target 8.5 - By 2030, achieve full and productive employment and decent work for all women and men,
including young people and persons with disabilities, and equal pay for work of equal value.
Beowulf is focused on developing the Graphite Anode Material Plant (“GAMP”) in Finland, an innovative
processing facility to produce anode material for the lithium-ion battery sector. The processing facility
will utilise technology that has significant environmental advantages over the currently employed
methodologies including using less energy and avoiding the use of extremely toxic reagents.
Through extensive test-work undertaken in preparation for the development of the GAMP, the
Company has demonstrated that a significant proportion of the regents used in the process may be
recycled, thereby improving the overall efficiency of the operation and reducing the waste material.
Phase 1 production is expected to employ a total of 85 personnel with the majority being in highly-
skilled technical roles, including metallurgical and process engineers, and plant operators. There will
also be management and administrative roles. The Phase 2 expansion from an output of 25,000 tonnes
per year to 75,000 tonnes per year, will see at least a doubling of the work-force.
In addition to the GAMP development, Beowulf is planning to develop the Kallak Iron Ore Project in
northern Sweden (the “Kallak Project”). As a greenfield operation, the Company is able to consider all
new innovation and technology in the development plan for the mine with the objective of improving
efficiency and productivity, whilst also enhancing safety and the environmental impact of the mine. For
example, the Company is actively engaging with a number of innovative Nordic vehicle manufacturing
companies who are developing autonomous battery-operated mining trucks. These trucks are generally
significantly smaller than conventional mining trucks and have the advantage of being safer and more
reliable, reducing the environmental impact of a diesel mining fleet and further require smaller mine
site infrastructure including ramps and roadways, thereby making the whole operation more efficient.
A further innovation that is being considered is the use of nitrate-free explosives. The Company has
signed a Memorandum of Understanding with Hypex Bio to further investigate the use of its developed
and patented hydrogen-peroxide based explosives.
The Company intends to establish a diversity and equality employment policy and framework to ensure
that it offers a positive working environment and opportunities for all people.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
15
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
Goal 9: Industry, innovation and infrastructure
o
Target 9.1 - Develop quality, reliable, sustainable and resilient infrastructure, including regional and
transborder infrastructure, to support economic development and human well-being, with a focus on
affordable and equitable access for all.
o
Target 9.4 - By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with
increased resource-use efficiency and greater adoption of clean and environmentally sound
technologies and industrial processes, with all countries taking action in accordance with their
respective capabilities.
The development of the GAMP will be a major industrial development, employing new innovative
technology with significant environmental benefits over the current conventional anode production
technologies.
At the Kallak Project a number of innovations are being considered. Amongst these is to use a pipeline
to transport the product in slurry form from the mine site to the railway approximately 40 km away. The
conventional approach would be to use a fleet of road trucks although this comes with significant social
and environmental impacts. Kallak is forecast to produce a total of 2.7 million tonnes of concentrate per
year. If trucks were used this would equate to a 90 tonne truck passing along the road every six minutes
in each direction for 20 hours of every day. Electric truck solutions had been considered but there would
be significant impact both on those living along and using the 40 km stretch of road as well as the
indigenous reindeer herders. The pipeline therefore offers an excellent solution and has the added
benefit of being extremely reliable and low cost although there is a higher initial capital cost.
Goal 12: Responsible production and consumption
o
Target 12.2 - By 2030, achieve the sustainable management and efficient use of natural resources.
o
Target 12.5 - By 2030, substantially reduce waste generation through prevention, reduction, recycling
and reuse.
o
Target 12.6 - Encourage companies, especially large and transnational companies, to adopt sustainable
practices and to integrate sustainability information into their reporting cycle.
Optimisation studies undertaken on the GAMP have demonstrated the ability to reduce the
temperature of the process and recycle a significant proportion of reagents. This reduces the primary
reagent requirement and energy consumption with significant environmental benefits.
Goal 13: Climate Action
o
Target 13.2 - Integrate climate change measures into national policies, strategies and planning.
The GAMP is focused on supporting the lithium-ion battery sector so directly supporting the transition
to renewable energy and reducing the reliance on carbon dioxide emitting fossil-fuels. The process
demonstrated by the Pre-Feasibility Study has the advantage of having a significantly lower carbon
dioxide footprint when compared with synthetic graphite and conventional natural graphite processes.
As discussed above, a range of solutions are being considered for the development of Kallak including
the use of battery-operated mining trucks. Further, the pipeline solution further reduces the reliance on
fossil fuels.
Goal 15: Life on Land
o
Target 15.1: Ensure the conservation, restoration and sustainable use of terrestrial and inland
freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in
line with obligations under international agreements.
o
Target 15.2: Promote the implementation of sustainable management of all types of forests, halt
deforestation, restore degraded forests and substantially increase afforestation and reforestation
globally.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
16
REVIEW OF OPERATIONS AND ACTIVITIES (continued)
o
Target 15.4: By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in
order to enhance their capacity to provide benefits that are essential for sustainable development.
o
Target 15.5: Take urgent and significant action to reduce the degradation of natural habitats, halt the
loss of biodiversity and protect and prevent the extinction of threatened species.
o
Target 15.6: Promote fair and equitable sharing of the benefits arising from the utilisation of genetic
resources and promote appropriate access to such resources, as internationally agreed.
Beowulf is committed to responsible stewardship of the natural environment in which it operates. While
the GAMP will be developed within an industrial site, the process being employed is more
environmentally sustainable than the conventional process which uses hydrofluoric acid.
At the Kallak project, managing the natural environment is particularly critical. The project is located in
an area with a number of competing interest including forestry, hunting and berry picking but it is also
used by the Sami for reindeer migration and grazing. Beowulf has completed significant baseline
inventory studies and is working closely with local stakeholders to ensure we understand the likely
impacts a mining operation will have and to find solutions to mitigate these impacts if they cannot be
avoided. The Company has a collaboration agreement with the Sami village to support a Reindeer
Herding Analysis which aims to identify the specific issues for the Sami. In addition, the Company will
complete a World Heritage Impact Assessment to assess the potential direct and indirect impacts the
mine development would have on the Laponia World Heritage Site which lies to the north of the project.
When it comes to the development of the Company's projects, the above goals and our future compliance with
The Equator Principles are being factored into our thinking, design, engineering, and planning of our operations
and management systems.
The Company's ESG Policy is available on the website following the link:
https://beowulfmining.com/aboutus/esg-policy/
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
17
BOARD OF DIRECTORS AND SENIOR MANAGEMENT
Ed Bowie – Chief Executive Officer (“CEO”)
Mr Bowie was appointed as CEO on 7 August 2023. He has over 25 years' experience in the natural resources
sector having worked in corporate, advisory and fund management roles and across a broad range of
commodities and jurisdictions.
Ed began his career as an exploration geologist for SAMAX Gold in Tanzania and was involved in the discovery of
the Kukuluma and Matandani orebodies that led to SAMAX’s acquisition by Ashanti Goldfields in 1998. On
returning to the UK, he worked in equity research and investment banking before launching the London-listed
Altus Resource Capital fund in 2009. Ed managed the fund until the end of 2014 out-performing the FTSE Gold
Mines and S&P/ TSX Global Gold Mining indices over the period. In 2015 Ed joined AIM-listed Amara Mining plc
in a corporate development role, establishing and running the process that led to the company’s acquisition by
Perseus Mining in 2016. More recently Ed has supported AIM- and TSX- listed Brazilian gold miner, Serabi Gold
plc, in a corporate development capacity.
Ed is the Non-Executive Chairman of AIM-listed Cora Gold Ltd, the Mali focused gold development company and
a member of the investment committee of The Impact Facility, an impact investment vehicle focused on artisanal
and small-scale gold mining in East Africa. He holds an MA in Earth Sciences from Oxford University having been
awarded a scholarship and an MSc in Mineral Deposit Evaluation achieving distinction and having been awarded
a scholarship from Imperial College, London.
Johan Röstin – Non-Executive Chairman
Mr Röstin was appointed to the Beowulf Mining Board on 7 November 2022. On 3 May 2023 Johan assumed the
role of Interim CEO and Executive Chairman following the resignation of Kurt Budge, former CEO, until Ed Bowie
was appointed on 7 August 2023.
Johan spent three years as CEO of ferry operator ForSea between 2017-2020, and before that was CEO of
Copenhagen Malmo Port AB, 2009-2017. He has significant experience in infrastructure, logistics, capital
investments and permitting processes, and has held Board, executive and senior management positions during
his career.
In his role at ForSea, Mr Röstin led the company to create a new brand, a stronger organisation and set the
company on its sustainability journey.
Christopher Davies - Non-Executive Director
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 Resources until March 2012 and Country Manager
for SAMAX Resources in Tanzania, which was acquired by Ashanti Goldfields in 1998 for US$135 million.
Chris holds a BSc Hons Geology from Aberystwyth University in Wales, and an MSc DIC Mineral Exploration from
Imperial College, London. He is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusImm).
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
18
BOARD OF DIRECTORS AND SENIOR MANAGEMENT (continued)
Mikael Schauman – Non-Executive Director
Mr Schauman joined the board of Beowulf on 7 July 2023. Mikael, a Swedish national, has been involved in base
metals for the past 40 years. Mikael is versed in the field of mining, management of mining companies as well
as the commercialisation of the products.
Mikael holds a BSc in Finance from Stockholm School of Economics. He started his career at Boliden and
subsequently spent 18 years at various commodity trading companies. For the past 16 years he served in the
senior management of Lundin Mining Corporation as VP and SVP Commercial. In this role he had sole
responsibility for the company’s commercial organisation and world-wide sales. Mikael, at the same time,
actively contributed to increasing growth within Lundin Mining, for example via the acquisitions and mergers
made over the years. In the role of senior manager, he has also contributed to developing the groups
sustainability work.
Senior management
Rasmus Blomqvist – Managing Director Grafintec
Mr. Blomqvist, the founder of Grafintec (formerly Fennoscandian Resources), joined the Company in January
2016. Mr. Blomqvist has been working in exploration and mining geology for over 13 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 Grafintec, 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”).
Dmytro Siergieiev – Project Director Jokkmokk Iron Mines AB
Originally from Ukraine, Dmytro has been residing in Northern Sweden since 2007 and is fluent in Swedish. He
holds an MSc in Hydrogeology from Kyiv National University, an MSc in Geochemistry, and a PhD in Applied
Geology from the Luleå University of Technology.
Since 2015, Dmytro has been working at Sweco, the leading architecture and engineering consultancy, focusing
solely on mine environment projects in Scandinavia and internationally. During this time, he has served as
assignment leader, business development manager, and most recently team leader for Sweco’s mine
environment unit. Within this role, Dmytro has overseen a broad range of assignments focused on mine
development, operation and permitting.
Dmytro is an accomplished project manager with a strong technical background and excellent interpersonal
skills. His immediate tasks will be to oversee and propel the ongoing Pre-Feasibility Study and environmental
work in preparation for the environmental permitting process.
Company secretary
One Advisory
ONE Advisory Limited is an AIM specialist advisory and administration firm, responsible for ensuring that Board
procedures are followed and that the Company applies with all applicable rules, regulations and obligations
governing its operation, as well as helping the Chair to maintain excellent standards of corporate governance.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
19
STRATEGIC REPORT
The Directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activities of the Group are the exploration, development and processing of iron ore, graphite, base
and precious metals in the Nordic Region and Kosovo. A detailed review of the mining activities can be found
under Review of Operations and Activities on pages 5 to 16. The Group is registered in and controlled from the
United Kingdom.
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 £1,771,325 (2023: loss of £2,863,959). A
comprehensive review of the business is given under the Chairman’s Statement on page 4 and Review of
Operations and Activities on pages 5 to 16.
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
Political Risk
The Company could be
exposed to macro-political
risk or sovereign risk.
MEDIUM
The Company actively monitors
developments on the geopolitical
stage, and where appropriate
engages advisers and the British
Embassy to support its in-country
operations. It is not foreseeable
that events in Ukraine will
negatively impact the Company’s
business.
China has a dominant position in
many commodity markets and
can, as evidenced by the export
controls imposed on graphite in
December 2023, impact trade
and pricing of certain
commodities. While this may
cause market uncertainty, the
Company’s portfolio of assets,
focusing on supplying the
European market with raw
materials, is aligned with the EU’s
Critical Raw Materials Act and
should ultimately be a beneficiary
of the desire to improve supply
chain security for domestic
markets.
The Nordics are seen to be low-
risk countries by investors. As
Kosovo is seeking EU accession its
institutions are well supported by
the EU and the UK.
LOW
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
20
STRATEGIC REPORT (continued)
Principal risks and uncertainties (continued)
Climate
Emergency
The Company’s activities
could be negatively
impacted by adverse climate
events.
MEDIUM
The Company operates in
relatively hospitable
environments and its activities
are unlikely to be directly
impacted by adverse climate
events. Further the Company,
particularly on the more
advanced Kallak and GAMP
projects, monitors weather and
climate conditions and will
therefore be able to react and
adapt its activities.
LOW
European
Climate Law
EU countries must cut
greenhouse gas emissions
by at least 55 per cent by
2030, compared to 1990
levels, and to become
climate-neutral by 2050.
There is a risk that electrical
vehicles and machines are
not available.
LOW
Mining operations will have Net
Zero Emissions by using electrical
vehicles and fossil free electricity.
LOW
Unable to
raise sufficient
funds
Unable to raise sufficient
funds to invest in project
portfolio and cover
corporate costs
MEDIUM
Raise capital in a timely manner,
as evidenced by current
management’s track record.
Ensure forecasting is accurate,
and expenditure controls are in
place to optimise cash resources.
The £4.3 million capital raise
completed in April 2024,
increased the Company’s cash
resources as will the capital raise
announced on 21 March 2025.
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.
When it comes to iron ore and
graphite, these commodities will
be needed for the Green
Transition.
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.
With Kallak Iron Ore Project and
Grafintec we have quality assets,
benefitted by excellent
infrastructure, including access to
renewable power, and positioned
in proximity to European markets
in need of primary raw material
supply to achieve a Green
Transition.
MEDIUM
TO LOW
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
21
STRATEGIC REPORT (continued)
Principal risks and uncertainties (continued)
Revocation of,
and failure to
renew
licences
Licence awards can be
appealed and subject to
conditions which, if not
satisfied, may lead to the
revocation of the licence.
With respect to the Kallak
North Exploitation
Concession, the
Government's decision to
grant the Exploitation
Concession was initially
appealed but the original
decision was ultimately
upheld by the Supreme
Administrative Court
following in June 2024.
In Finland, the extension of
the Pitkäjärvi permit
granted by TUKES in June
2024 was appealed but on 9
April 2025, the Eastern
Finland Administrative Court
rejected the appeal.
In Kosovo, a number of
licence applications have
been submitted but remain
subject to approval by
ICMM. Further, on a number
of existing licences, the
minimum expenditure
requirements have not been
met over the last year.
Whilst there has been no
prior experience of penalties
incurred as a result of not
meeting minimum
expenditure requirements,
there is no certainty that
penalties won’t be
introduced going forward.
MEDIUM
In all cases, the Company
diligently manages its licences to
ensure full compliance. A
monthly status report is
generated for monitoring
purposes and action.
In both Sweden and Finland,
opposition to mining
development is generating
appeal/court induced delays into
permitting processes. In Kosovo,
slow administrative processes
have caused delays in the receipt
of licence renewals. Close
dialogue is maintained with
authorities and the minimum
expenditure requirements are
being more closely monitored.
In all cases, the Company aims to
satisfy application requirements
and, although there may be
delays, the expectations remains
that all permits and renewals will
ultimately be received.
LOW
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
22
STRATEGIC REPORT (continued)
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. The underlying group overhead expenses were lower than the previous year at
£1,658,763 (2023: £2,501,263), the decrease in administrative expenses was due to the following: salary costs
of £241,407 (2023: £483,221), primarily due to group directorship changes in the prior year; legal and
professional fees of £518,604 (2023: £782,175), primarily due to non-recurring advisor fees in relation to the
group directorship changes within the prior year; downstream processing costs of £71,731 (2023: £212,762),
due to the development costs meeting the criteria for capitalisation during the year; foreign currency loss of
£98,083 (2023: £150,224), primarily due to revaluation of foreign currency denominated bank accounts; PR costs
of £49,899 (2023: £97,515); audit and accountancy fees of £87,188 (2023: £122,174); and share-based payment
expense of £326,627 (2023: £387,668). The Company recognised an expected credit loss of £467,651 (2023:
£1,001,537), which was lower than the previous year due to a reasonable change of the probabilities in the prior
year.
ii.
Cash position
The Company analyses the expenditure of each subsidiary on a monthly basis. It also manages monthly cash flow
for the Group versus budget and forecast. The financial strategy is to ensure that the Company at a minimum
has sufficient funds to undertake its committed expenditure and meet its financial obligations.
With the ongoing PFS and environmental work streams at Kallak and ongoing activity at GAMP, the key objective
of the Company was to ensure capital was available to fund this activity and maintain the tight timelines. The
Group demonstrates a commitment to financial stability as shown by a year-end cash position of £0.88 million
(2023: £0.91 million), and following the announcement of the Placing, SDR Rights Issue and UK Retail Offer in
March 2025 with an objective to raise a minimum of £2.1m and up to a total of £4.5 million, along with the
Company securing a short-term bridging loan of SEK 10 million (approx. £740k) to continue advancing its projects
ahead of the capital raise being finalised, the Company has sufficient funding for project development activities
and general working capital. The current management team has a consistent track record of raising capital in a
timely manner.
iii.
Exploration expenditure by project
The Company controls its exploration and development 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. This
approach is best evidenced through the oversight at a board level. The Company has identified that the project
held at Karhunmäki does not justify continued investments, and as such has recorded an impairment charge for
its carrying value of £72,563 in the year.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
23
STRATEGIC REPORT (continued)
Non-financial:
iv.
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 although the Company does use external service providers to assist with
renewal applications and specific permitting issues in Sweden and Finland. In Kosovo, licences are awarded with
minimum expenditure requirements. Vardar has not always met these requirements and in theory, ICMM could
impose fines for failure to meet minimum expenditure requirements although this has never been done
previously. At the date of signing of this report, while some licence applications remain pending and certain
licences in Kosovo have not met their minimum expenditure requirements, the overall status for all licences is
good.
Section 172 Companies Act Statement
This section serves as our s172 Statement and should be read in conjunction with the Strategic Report and the
Company’s Corporate Governance Statement contained within this Annual Report.
The Board of Directors confirms that during the year under review, it has acted to promote the long-term success
of the Group for the benefit of shareholders, whilst having due regard to the matters set out in Section 172(1)(a)
to (f) of the Companies Act 2006, being:
(a) the likely consequences of any decision in the long term;
(b) the interests of employees;
(c) the need to foster the business relationships with suppliers, customers and others;
(d) the impact of the Group’s operations on the community and the environment;
(e) the desirability of maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly between all shareholders.
This statement describes how the Directors have regard for s172 Matters.
The Company Secretary sets out the s172 Matters in all Board meeting packs to ensure these are front of mind,
and the Directors are reminded of their duty under s172(1) at the start of each Board meeting. Consideration of
the broader s172 matters forms an integral part of Board discussion; the Directors as a matter of course have
regard to the need to maintain a reputation for high standards of business conduct, the need to act fairly
between shareholders, and the long-term consequences of their decisions. Stakeholder considerations on the
whole will be brought to the Board’s attention through reports and presentations given during the Board
meetings. These considerations are referenced in meeting papers as relevant, and discussions recorded in the
meeting minutes.
Engagement with our shareholders and wider stakeholder groups plays an essential role throughout our
business. We recognise the importance of open and transparent communication with each of our stakeholder
groups, so that we can understand their specific interests, and foster effective and mutually beneficial
relationships. We understand that each stakeholder group requires a tailored engagement approach to foster
effective and mutually beneficial relationships. We seek to maximise the benefits to host communities in which
we operate, while minimising negative impacts to effectively manage issues of concern.
The Board makes a conscious effort to understand the principal issues that matter to each stakeholder group
and any conflicting interests. Our understanding of stakeholders is then factored into boardroom discussions,
regarding the potential long-term impacts of our strategic decisions on each group, and how we might best
address their needs and concerns.
The Board regularly reviews our principal stakeholders and how we engage with them. The stakeholder voice is
brought into the boardroom by the Director’s direct engagement with senior operations management on matters
in need of attention.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
24
STRATEGIC REPORT (continued)
Section 172 Companies Act Statement (continued)
The relevance of each stakeholder group may increase or decrease depending on the matter or issue in question,
so the Board seeks to consider the needs and priorities of each stakeholder group during its discussions and as
part of its decision making. The Company remains committed to working constructively - and in good faith - with
all stakeholders and engaging in meaningful dialogue.
Shareholders have the opportunity to discuss issues with the Board and provide feedback at any time. Further
information is available on the Company’s website https://beowulfmining.com/.
The table below acts as our s172(1) statement by setting out the key stakeholder groups, their interests and
how Beowulf has engaged with them over the reporting period. However, given the importance of stakeholder
focus, long-term strategy and reputation, these themes are also discussed throughout this Annual Report.
Stakeholder
Why is this stakeholder group
important for the Company’s long-
term success and what are their
interests?
How we engage
Investors
Our shareholders expect us to operate
efficiently and cost effectively to
maximise long-term value creation.
Ultimately, the Company operates for
the long-term benefit of its
shareholders.
Their Interests:
Sustainability
ESG performance
Ethical behaviour
Company reputation
Comprehensive review of financial
performance of the business over the
long-term
Awareness of long-term strategy and
direction
•Transparency in all communications
• Regular updates from Executive and non-
executive directors, as well as from
advisers and investment banks who have
the relationships with certain of the
underlying shareholders and meetings
with investors.
• The AGM, investor roadshows and other
conferences
represent
further
opportunities
for
direct
shareholder
engagement with the Board.
• Keeping shareholders up to date with
the Company’s activities through our
Annual Report, Company’s website, stock
exchange announcements, press releases
and regular reports and analyses for
investors and shareholders.
Employees and
contractors
Our employees play a central role in
delivering the Group’s long-term
strategy and in delivering the standards
of service our customers expect.
Their Interests:
Terms and conditions of contract
Health and safety
Human rights and modern slavery
• The Board constantly seek opportunities
to engage with the wider workforce
directly, either through site visits to the
various projects or employee attendance
at Board meetings.
• The Company provides ongoing training
and development opportunities to certain
employees and have taken appropriate
steps for having policies relating to
Modern Slavery and whistleblowing to
discourage unethical business conduct,
thus ensuring its employees are
protected.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
25
STRATEGIC REPORT (continued)
Section 172 Companies Act Statement (continued)
Government and
regulatory bodies
Compliance with all applicable legal and
regulatory obligations is key to our long-
term success
Their Interests:
Compliance with regulations
Employee pay, conditions and welfare
Health and Safety
Company reputation
Environmental impact
Insurance
• We
ensure our
demonstrable
compliance with established national
and international environmental social
governance and ethical standards.
• Establish and maintain good relations
with
responsible
authorities
and
always seek dialogue with them to fulfil
our obligations.
• Ongoing communication with the
Swedish Government
•
Engagement
with
the
Mining
Inspectorate of Sweden
• Kallak Consultation Process
• Monthly KPIs on licence conditions
compliance
Environmental
agencies and interest
groups
We have an important role to play as a
custodian of exploration and mining
land ensuring that our long-term growth
is sustainable and minimises our
environmental footprint.
Their Interests:
Sustainability
Biodiversity, energy, water and waste
management
Climate change
• The Board takes its ESG responsibilities
seriously as set out in the review of
operations on page 14 of this report.
• The board receives periodic reports on
our broader ESG activities. We appreciate
that societal expectations on corporates to
tackle climate change continue to change,
and we will continue to look at new and
innovative ways of reducing our carbon
footprint.
• We will implement an ESG management
framework to govern the whole life cycle of
the mine development – from initial
conceptual and feasibility studies, through
operation, to progressive closure and
restoration.
• We will require our supply chain to meet
our ESG standards as part of our
sustainable and responsible procurement
and codes of conduct.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
26
STRATEGIC REPORT (continued)
Section 172 Companies Act Statement (continued)
Community
We have an important role to play in
supporting the communities in which we
operate.
Sustainability
Community engagement
Human Rights
•
The
Company
is
completing
Environmental Impact Assessments at
Kallak and GAMP, both of which include
measuring baseline environmental data so
that future impacts of the Company’s
activity can be measured and mitigated. As
part of this process, we consult with local
communities to ensure we are transparent
with our development plans and to build a
collaborative approach to growing our
businesses.
• As part of this ongoing consultation
process, we arrange meetings with the
Sami villages in the Kallak area on at least
a quarterly basis to appraise them of our
activity and future plans.
On behalf of the board:
Mr E Bowie
Chief Executive Officer
22 May 2025
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
27
DIRECTORS’ REPORT
The Directors present their report, together with the audited financial statements of the Group and Company,
for the year ended 31 December 2024.
Directors
Since 1 January 2024, the following Directors have held office:
Mr E Bowie
Mr C Davies
Mr J Röstin
Mr M Schauman
Dividends
No dividends will be distributed for the year ended 31 December 2024 (2023: Nil).
Going concern
As at 31 December 2024, the Group had a cash balance of £0.88 million (2023: £0.91 million) and the Company
had a cash balance of £0.71 million (2023: £0.79 million).
As disclosed in Note 28, on 21 March 2025, in conjunction with the Company’s announced right issue, the
Company entered into a short-term bridging loan of SEK 10 million (approx. £740k) with the underwriters of the
rights issue to ensure that the Company has sufficient financial resources to continue advancing its projects
ahead of the rights issue and broader capital raise being finalised. The bridging loan accrues interest of 1.5 per
cent per 30-day period, has an administrative charge of 5 per cent and is repayable on 30 June 2025. The bridging
loan is due to be repaid using part of the proceeds from the capital raise on the right issue, noted below.
On 8 May 2025 the Company announced the completion of the capital raise with a total of £2.2 million (SEK 28.1
million) gross raised to fund the development of the Company’s assets through their next key valuation
milestones. The net funds raised after the loan repayment and share issue transaction costs are £1.0 million (see
note 28).
Therefore, at the date of this report, based on management prepared cashflow forecasts, further funding will be
required within the next 12 months to allow the Group and Company to realise its assets and discharge its
liabilities in the normal course of business. There are currently no agreements in place and there is no certainty
that the funds will be raised 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
going concerns and therefore, the Group and the Company may be unable to realise their assets and discharge
their liabilities in the normal course of business. The Directors will continue to explore funding opportunities at
both asset and corporate levels. The Directors have a reasonable expectation that funding will be forthcoming
based on their past experience and therefore believe that the going concern basis of preparation is deemed
appropriate and as such the financial statements have been prepared on a going concern basis. The financial
statements do not include any adjustments that would result if the Group and the Company were unable to
continue as going concerns.
Directors’ and officers’ indemnity insurance
The Group has made qualifying third-party indemnity provisions for the benefit of its Directors and Officers.
These were made during the period and remain in force at the date of this report. Further details of these
agreements can be found in the remuneration report on page 31.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
28
DIRECTORS’ REPORT (continued)
Significant shareholdings
The Directors are aware of the following interests, directly or indirectly, in three per cent or more of the Group’s
ordinary shares as at 31 December 2024:
Shareholders
Shares
%
Brian Wolfgang Jensen
2,519,408
6.49
The number above has not been updated for the results of the Capital Raise as at the date of signing the exact
number of shares was unknown.
Authority to issue shares
Each year at the Company’s Annual General Meeting (AGM) the Directors seek authority to allot ordinary
shares.
The authority, when granted, lasts until the conclusion of the next AGM (unless renewed, varied or revoked by
the Company prior to, or on, such date). At the AGM held on 14 June 2024, the Directors were granted authority
to allot ordinary shares generally up to an aggregate nominal value of £1,294,826, and authority to allot ordinary
shares for cash on a non-pre-emptive basis up to an aggregate nominal value of £388,448 (2023: £231,437).
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. Under the Service Agreement between the Company and
Ed Bowie, in the event of a change of control, Mr Bowie is eligible to receive up to two years annual salary.
Other than the above, 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 28 to the financial statements.
Financial risk management objectives and policies
Financial risk management policies and objectives for capital management are provided within Note 23 to the
financial statements.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
29
DIRECTORS’ REPORT (continued)
Future developments within the business
Since the award of the Exploitation Concession for Kallak North, the Company is focused on project development,
environmental permitting, de-risking the project and increasing value, while delivering on environmental and
social goals, balancing cost and benefit.
The Company's overall objective is to have Kallak in production, developing the mine alone or in partnership.
The present Government of Sweden has promised to shorten and simplify the processes for environmental
permits to secure the pace of the Climate Emergency and the Green transition. The Company will be doing all it
can to make the ambitious timeline achievable.
Grafintec's strategy remains to build an anode value chain in Finland. The Company’s exploration programme is
targeted at securing long-term sustainably produced primary raw material supply to feed downstream
processing. Grafintec completed the PFS for the GAMP in March 2025. Further pilot test work, the DFS, and
environmental permitting will be advanced during 2025 and 2026 which would allow construction to take place
during 2027 and 2028 and production from 2028 to 2029.
The Company’s ownership of Vardar provides diversification, in geography and commodity exposure, to highly
prospective exploration opportunities in the Tethyan Belt. The consolidation of 100 per cent of Vardar during
2024 provided the Company with full control and increased optionality to consider value accretive ways to grow
Vardar including through acquisitions, divestments or joint ventures. The Company’s investment priorities across
its portfolio remain subject to funding being available.
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.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
30
DIRECTORS’ REPORT (continued)
Directors’ responsibilities statement
The Directors are responsible for preparing the strategic report, directors’ 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 UK adopted
International Accounting Standards (“UK-IAS”). 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 Spotlight Stock Market in Sweden.
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 UK-adopted International Accounting
Standards, 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.
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.
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.
Auditor
PKF Littlejohn LLP were appointed as auditor during the year and a resolution to re-appoint them will be
proposed at the Group’s forthcoming Annual General Meeting.
Annual general meeting
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 E Bowie
Chief Executive Officer
22 May 2025
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
31
DIRECTORS’ REMUNERATION REPORT
The Directors have chosen to voluntarily present an unaudited remuneration report although is not required by
the Companies Act 2006. Details of the Remuneration Committee’s composition and responsibilities are set out
in the Corporate Governance Report and its terms of reference can be found on the Group’s website:
https://beowulfmining.com
Executive Directors’ terms of engagement
Mr Bowie held the role of Chief Executive Officer for the year ended 31 December 2024. His annual salary was
£210,000.
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 Röstin annual fee is 500,000 SEK per annum (approx. £37,000) (2023: £38,000). Mr Röstin has a consultancy
agreement with the Company for the provision of advice over and above his Non-Executive duties. In 2024, he
was paid £42,451 (2023: £144,711) under this agreement. Mr Röstin has a one month notice period under his
letter of appointment.
Mr Davies annual fee is £36,000 per annum (2023: £36,000). Mr Davies has a consultancy agreement with the
Company for the provision of exploration advice over and above his Non-Executive duties. In 2024, he was paid
£6,000 (2023: £20,750) under this agreement. Mr Davies has a one month notice period under his letter of
appointment.
Mr Schauman annual fee is £33,000 per annum (2023: £33,000). Mr Schauman has a notice period of one month
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.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
32
DIRECTORS’ REMUNERATION REPORT (continued)
Aggregate Directors’ Remuneration
The remuneration paid to the Directors in accordance with their agreements are outlined per the years below:
31 December 2024
Name
Position
Salary &
Fees1
Benefits
Pension3
Share-
based
payments
2024
Total
£
£
£
£
£
Mr E Bowie
Chief Executive Officer
210,000
-
10,500
110,242
330,742
Mr C Davies
Non-Executive Director
42,000
-
-
32,839
74,839
Mr J Rostin
Non-Executive Director
79,350
-
-
39,687
119,037
Mr M Schauman
Non-Executive Director
33,000
-
-
19,843
52,843
Total
364,350
-
10,500
202,611
577,461
31 December 2023
Name
Position
Salary &
Fees1
Loss of
office4
Benefits2 Pension3
Share-
based
payments
2023
Total
£
£
£
£
£
£
Mr E Bowie
Chief Executive Officer
84,457
-
-
4,375
-
88,832
Mr C Davies
Non-Executive Director
56,750
-
-
-
31,122
87,872
Mr J Rostin
Non-Executive Director
182,539
-
-
-
- 182,539
Mr K Budge4
Chief Executive Officer
87,510
210,000
526
10,500
290,412 598,948
Mr M Schauman
Non-Executive Director
16,500
-
-
-
-
16,500
Total
427,756
210,000
526
14,875
321,534 974,691
Notes:
(1) Does not include expenses reimbursed to the Directors.
(2) Personal life insurance policy
(3) Employer contributions to personal pension.
(4) Kurt Budge resigned as CEO effective 3 May 2023. The payment for loss of office represents the payment of his notice period of 12 months.
Each Director is also paid all reasonable expenses incurred wholly, necessarily, and exclusively in the proper
performance of his duties.
The beneficial and other interests of the Directors holding office on 31 December 2024 in the issued share capital
of the Company were as follows:
Ordinary shares
31 December
2024
31 December
2023
Mr E Bowie
261,890
-
Mr C Davies
26,668
3,718
Mr J Rostin
206,547
-
Mr M Schauman
62,500
-
The number of shares in the comparative year have been adjusted for the effect of a 50 to 1 share consolidation
(refer to Note 16).
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
33
DIRECTORS’ REMUNERATION REPORT (continued)
As at 31 December 2024, the following options were held by Directors, of which 511,667 options have vested.
Ordinary shares under option
Number
Exercise price
Expiry date
Mr E Bowie
1,000,000
37.5 pence
17 April 2034
Mr J Rostin
360,000
37.5 pence
17 April 2034
Mr C Davies
180,000
37.5 pence
17 April 2034
Mr M Schauman
180,000
37.5 pence
17 April 2034
Mr C Davies
40,000
262.5 pence
27 September 2032
As at 31 December 2023, the following options were held by Directors, of which, 745,000 options have vested.
Ordinary shares under option
Number
Exercise price
Expiry date
Mr K Budge
70,000
367.5 pence
14 January 2024
Mr K Budge
190,000
262.5 pence
27 September 2032
Mr K Budge
40,000
5 pence
27 September 2032
Mr K Budge1
245,000
103 pence
27 July 2028
Mr C Davies
50,000
367.5 pence
14 January 2024
Mr C Davies
40,000
262.5 pence
27 September 2032
1Kurt Budge was granted options as part of the settlement amount agreed following his resignation on 3 May 2023.
The number of options in the prior year have been adjusted for the effect of a 50 to 1 share consolidation (refer
to Note 16).
On behalf of the remuneration committee
Chris Davies
Non-Executive Director
22 May 2025
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
34
CORPORATE GOVERNANCE STATEMENT
It is the responsibility of the Chairman of the Board of Directors of the Company to ensure that the Group has
both sound corporate governance and an effective Board. The Chairman’s principal responsibilities are to ensure
that the Group and the Board are acting in the best interests of shareholders, and by making sure that the Board
discharges its responsibilities appropriately. This includes creating the right Board dynamic and ensuring that all
important matters and strategic decisions receive adequate time and attention at Board meetings.
The Company formally adopted the Quoted Companies Alliance Corporate Governance (“QCA Code”) in
September 2018. This report follows the QCA Code guidelines and explains how we have applied the guidance.
The Board considers that the Group complies with the QCA Code so far as it is practicable having regard to the
size, nature and current stage of development of the Company. The Board recognises that the Company does
not fully comply with the 10 principles and general provisions of the QCA Code but does use it as a benchmark
in assessing its corporate governance standards. Areas of non-compliance are disclosed in the text below. Further
details of the Company’s compliance with the QCA code can be found in the Corporate Governance section of
the Company’s website: https://beowulfmining.com/wp-content/uploads/2024/02/BEM-QCA-Code-Chairs-
Statement-Feb24.pdf
The Board believes that application of the QCA Code supports the Company’s medium to long-term development
whilst managing risks, as well as providing an underlying framework of commitment and transparent
communications with stakeholders. It also seeks to develop the knowledge shared between the Company and
its stakeholders.
During 2024, the key corporate governance activity undertaken by the Company was the development of a new
remuneration policy for the Company (Policy). The Policy was reviewed and recommended to the Board by the
Remuneration Committee and approved by the Board of Directors. The Board is of the opinion that the Policy is
commensurate with the size, nature and current stage of development of the Company.
In preparation for the application of the 2023 QCA Code, which will be adopted in the next financial year, the
Board also approved an updated Terms of Reference for the Remuneration Committee. Further description of
the changes to these Terms of Reference are set out under ‘Remuneration Committee’ below.
Strategy, Risk Management and Responsibility
A description of the Company’s business model and strategy can be found on page 3, and the key challenges in
their execution can be found on pages 19 to 21.
The Board is responsible for the monitoring of financial performance against budget and forecast and the
formulation of the Group’s risk appetite including the identification, assessment and monitoring of the
Company’s principal risks. The Audit Committee (see page 36) has delegated responsibility for the oversight of
the Company’s risk management and internal controls and procedures and for determining the adequacy and
efficiency of internal control and risk management systems. The Board monitors its internal control procedures
and risk management mechanisms and conducts an annual review, when it assesses both for effectiveness. This
process enables the Board to determine if the risk exposure has changed during the year and these disclosures
are included on pages 19 to 21.
In setting and implementing the Company’s strategies, the Board, having identified the risks, seeks to limit the
extent of the Company’s exposure to them having regard to both its risk tolerance and risk appetite.
Directors
The Board comprises the Non-Executive Chairman, Johan Röstin, Chief Executive Officer, Ed Bowie and
Independent Non-Executive Directors, Chris Davies and Mikael Schauman. The Board considers that the current
size and composition of the Board is aligned to the QCA principles is appropriate for the complexity of the
business and its strategy.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
35
CORPORATE GOVERNANCE STATEMENT (continued)
For the year under review Chris Davies held 26,668 Ordinary Shares (2023: 3,718) and held 220,000 options
(2023: 90,000 options) over Ordinary Shares. Chris Davies entered into a consultancy agreement with the
Company in 2017. The agreement compensates Chris Davies for the support that he gives, beyond his role as an
Independent Non-Executive Director, where the Company is undertaking M&A due diligence and where a review
of exploration activities is required. The level of compensation Chris Davies received under the consultancy
agreement for the period under review is not material. Neither Chris Davies nor the other Directors believe his
options or consultancy agreement are significant in assessing his independence.
All Directors are encouraged to challenge and to bring independent judgement to bear on all matters, both
strategic and operational. Biographical details of the Directors can be found on the Group’s website
www.beowulfmining.com.
During the reporting period as Independent Non-Executive Chairman, Johan Röstin, and the other Independent
Non-Executive Directors, Chris Davies and Mikael Schauman, dedicated approximately between two to four days
per month to the Group’s business. The Board is satisfied that each of the Directors are able to allocate sufficient
time to the Group to discharge their responsibilities effectively. The Board met formally on nine scheduled
occasions and five unscheduled occasions during the year. All meetings, with the exception of two of the
unscheduled occasions, were attended by all Directors. The Board’s sub-committees, the Audit and
Remuneration Committees, each met twice during the year
The Directors believe that the Board, as a whole, has a broad range of commercial and professional skills,
enabling it to discharge its duties and responsibilities effectively and that the Non-Executive Directors have a
sufficient range of experience and skills to enable them to provide the necessary guidance, oversight and advice
for the Board to operate effectively. All Directors are encouraged to use their independent judgement and to
challenge all matters, whether strategic or operational.
The Board annually reviews the appropriateness and opportunity for continuing professional development,
whether formal or informal. The Directors also endeavour to ensure that their knowledge of best practices and
regulatory developments is continually up to date by attending relevant seminars and conferences.
The Directors consider that the Company and Board are not yet of a sufficient size for a full Board evaluation to
make commercial and practical sense. Therefore, the Board accepts that the Company does not comply with this
aspect of the QCA Code, although in frequent Board meetings/calls, the Directors can discuss any areas where
they feel a change would be beneficial for the Company, and the Company Secretary remains on hand to provide
impartial advice. As the Company grows, it intends to expand the Board and, with expansion, re-consider the
need for a formal Board evaluation.
Advisers
One Advisory Limited has been contracted by the Company to act as Company Secretary and has been given the
responsibility for ensuring that Board procedures are followed and that the Company complies with all applicable
rules, regulations and obligations governing its operation, including assistance with Board and shareholder
meetings and Market Abuse Regulations (“MAR”) compliance. One Advisory Limited also supports the Board in
its development of the Company’s corporate governance responsibilities, assisting with the Company’s
application of the QCA Code and compliance in relation to disclosures required on the Company’s website under
AIM Rule 26.
The Company’s Nomad is consulted on all relevant matters and all Directors have access to independent
professional advice, if required.
Neither the Board nor its Committees have sought external advice on a significant matter during the year under
review.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
36
CORPORATE GOVERNANCE STATEMENT (continued)
Culture
The Directors consider that at present the Company has an open culture facilitating comprehensive dialogue and
feedback and enabling positive and constructive challenge.
The Board recognises that its decisions regarding strategy and risk will impact the corporate culture of the
Company as a whole and that this will in turn affect the performance of the Company. The Directors are also
aware that the tone and culture set by the Board will greatly affect all aspects of the Company. The corporate
governance arrangements that the Board has adopted are designed to ensure that the Company delivers long-
term value to its shareholders, and that shareholders have the opportunity to express their views and
expectations for the Company in a manner that encourages open dialogue with the Board. The Company seeks
to provide effective communication through Interim and Annual Reports, along with Regulatory News Service
announcements and trading updates on the Company’s website, www.beowulfmining.com. Shareholders can
also sign up to receive news releases directly from Beowulf by email. In normal circumstances Beowulf also
maintains a dialogue with shareholders through formal meetings such as the AGM, which provides an
opportunity to meet, listen and present to shareholders.
The Company is open to receiving feedback from key stakeholders and will take action where appropriate. The
key contact for shareholder liaison at the time of writing is Ed Bowie. Information on the Investor Relations
section of the Group’s website (www.beowulfmining.com) is kept updated and contains details of relevant
developments, presentations and other key information.
The Company has implemented, inter alia, the following policies to help ensure appropriate values and
behaviours:
-
an Anti-Bribery and Corruption Policy;
-
a Whistleblowing Policy;
-
a Social Media Policy;
-
a Securities Dealing Policy; and
-
an Inside Information and Delayed Disclosure Policy.
A large part of the Company’s activities is centred upon an open and respectful dialogue with shareholders,
contractors, regulators and other stakeholders. Therefore, the importance of sound ethical values and
behaviours is crucial to the ability of the Company to successfully achieve its corporate objectives. The Board
places great importance on this aspect of corporate life and seeks to ensure that this flows through all that the
Company does.
The Directors consider that at present the Company has an open culture facilitating comprehensive dialogue and
feedback and enabling positive and constructive challenge.
The Company has close ongoing relationships with a broad range of its stakeholders such as local indigenous
communities and adjacent landowners and through constructive dialogue provides them with the opportunity
to raise issues and provide feedback to the Company. The Company works closely with the communities in which
it operates, sharing its plans and ideas for the projects being developed, and listening to any concerns and
addressing any issues raised. Beowulf remains firmly committed to the responsible development of a modern,
sustainable and innovative mining operation in partnership with the local community.
Audit Committee
The Audit Committee is formed of Johan Rostin and Mikael Schauman, who chairs the Committee. The
Committee is responsible for ensuring that the financial performance, position and prospects of the Group are
properly monitored and reported on and for meeting the auditor and reviewing audit reports relating to the
accounts. The Audit Committee meet as and when required, at appropriate times in the reporting and audit
cycle. The Audit Committee is required to report formally to the Board on its proceedings after each meeting on
all matters for which it has responsibility. The Committee’s Terms of Reference are available to view on the
Company’s website at www.beowulfmining.com.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
37
CORPORATE GOVERNANCE STATEMENT (continued)
The Board notes that additional information supplied by the Audit Committee has been disseminated across the
whole of this Annual Report, rather than included as a separate Committee Report.
Remuneration Committee
The Remuneration Committee comprises Johan Röstin and Chris Davies, who chairs the Committee. The
Committee met twice during the year under review. The Committee is responsible for the review and
recommendation of the scale and structure of remuneration for senior management, including any bonus
arrangements or the award of share options with due regard to the interests of shareholders and the
performance of the Company. As described above, during 2024 the Committee reviewed and recommended to
the Board a Remuneration Policy which is commensurate with the size, nature and current stage of development
of the Company.
A Remuneration Committee Report is included on pages 31 to 33. The Committee’s Terms of Reference are
available to view on the Company’s website at www.beowulfmining.com. The Terms of Reference of the
Committee were recommended to and approved by the Board of Directors during the year in preparation for the
Company’s transition to the 2023 QCA Code. The updates to the Terms of Reference centred around that
Committees responsibilities in relation to the Remuneration Policy and explicitly highlight the considerations of
the Committee when proposing the Policy.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
38
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC
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 2024 which comprise 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 significant accounting policies. The financial reporting framework that has been
applied in their preparation is applicable law and UK-adopted international accounting standards 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 2024 and of the Group’s loss for the year then ended;
the Group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards;
the Parent Company financial statements have been properly prepared in accordance with UK-adopted
international accounting standards 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.
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 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.
Material uncertainty related to going concern
We draw attention to note 1 in the financial statements, which indicates that the Group and Parent Company
will need to raise further funds within the 12 months following the date of approval of the financial statements,
in order to continue to realise assets and meet liabilities as they fall due in the normal course of business. As
stated in note 1, these events or conditions indicate that a material uncertainty exists that may cast significant
doubt on the Group’s and Parent Company’s ability to continue as a going concern. Our opinion is not modified
in respect of this matter.
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’
assessment of the Group’s and Parent Company’s ability to continue to adopt the going concern basis of
accounting included:
critically reviewing the cashflow forecasts and budgets prepared by management for the 12 month
period to 31 May 2026, corroborating and providing challenge to key assumptions and inputs used,
including reviewing license agreements to confirm that committed expenditure is appropriately
included in forecasts;
comparing forecast expenditures to current year actual results and corroborating any significant
variances;
obtaining an understanding of cash preservation measures, and corroborating to supporting
documentation where applicable;
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
39
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC (continued)
comparing historic forecasts to the actual results in the year to assess the accuracy of the forecasting
process; and
reviewing post year-end bank statements and management information to ascertain the Group’s and
the Parent Company’s latest financial position and post year-end performance, and comparing this to
the forecasts.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Our application of materiality
The scope of our audit was influenced by our application of materiality. The quantitative and qualitative
thresholds for materiality determine the scope of our audit and the nature, timing and extent of our audit
procedures.
We determined materiality for the Group and Parent Company financial statements to be:
Group
Parent Company
£
Basis
£
Basis
Overall materiality
258,000
1.5% of gross assets
250,000
1.25% of gross assets
Performance materiality
154,000
60% of materiality
150,000
60% of materiality
Triviality
12,000
5% of materiality
12,000
Group triviality
In determining Group materiality, we consider gross assets to be the main driver of the business as the Group is
in the exploration stage and no revenues are currently being generated. The percentage applied to this
benchmark of 1.5% has been selected to bring into scope all significant classes of transactions, account balances
and disclosures relevant for the shareholders, and also to ensure that matters that would have a significant
impact on the financial statements were appropriately considered.
In determining Parent Company materiality, we consider gross assets to be the primary measure used by the
shareholders in assessing the performance. As the Parent Company does not generate revenue, its primary
balance consists of investments in subsidiaries. A 1.25% threshold has been selected to ensure that all significant
transaction classes, account balances, and disclosures relevant to shareholders are appropriately included.
Additionally, this benchmark ensures that matters with a significant impact on the financial statements are
properly considered.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance
materiality in determining the scope of our audit and the nature and extent of our testing of account balances,
classes of transactions and disclosures. We set the performance materiality at 60% of materiality for both the
Group and Parent Company.
In determining performance materiality, we considered the following factors:
Our knowledge of the Group and Parent Company and its environment, including industry specific
trends;
Significant transactions during the year; and
The level of judgement required in respect of the key accounting estimates.
We agreed with the audit committee that we would report all individual audit differences identified for the Group
during the course of our audit in excess of £12,000 (Parent Company: £12,000) together with any other audit
misstatements below that threshold that we believe warranted reporting on qualitative grounds.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
40
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC (continued)
Whilst performance materiality for the Group was set at £154,000, we also assessed performance materiality for
in-scope entities. We assessed there to be four material entities in the group, one in the UK, one in Sweden, one
in Finland and one in Kosovo. Full scope audits were performed on the UK Parent Company by us as group
auditor, and on the Swedish and Finnish entities by component auditors in each jurisdiction. Audit procedures
on certain account balances and classes of transaction were performed on the Kosovan entity by us as group
auditor. Aside from the Parent Company, materiality for which is detailed above, these three entities were
audited to a performance materiality ranging from £77,000 to £115,500, representing an appropriate percentage
of the Group’s performance materiality according to their relative asset contribution and our assessment of
inherent risk. Therefore, we conclude that this approach provides sufficient coverage of both significant and
residual risks. The concept of materiality was applied throughout the audit, from planning to execution, as well
as in evaluating the impact of misstatements.
Our approach to the audit
In designing our audit approach, we determined materiality and assessed the risk of material misstatement in
the financial statements. In particular, we assessed the areas requiring the board and management to make
subjective judgements, for example in respect of significant accounting estimates including the carrying value of
intangible assets and management override of controls.
An audit was performed on the financial information of the Group’s four in-scope components as detailed in the
previous section. Two of the four components, Sweden and Finland, were audited by component auditors.
The Group audit team provided instructions to component auditors regarding significant areas to be covered,
including the relevant risks described below, and the required reporting information. The Group team visited the
two component locations in Sweden and Finland to assess audit risk and strategy, conducting component file
reviews accordingly. Discussions were held at all stages of the process with component auditors across all
locations, and appropriate reporting appendices were received and reviewed in accordance with our
instructions.
The audit of the Kosovan component, the Parent Company and the Group consolidation were performed in the
United Kingdom by the Group audit team. Additionally, the Group audit team performed top-up work the Key
Audit Matter relating to impairment of intangible assets, supplementing the work conducted by the Swedish and
Finnish component auditors.
Key audit matters
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.
In addition to the matter described in the Material uncertainty related to going concern section of our report,
we have determined the matters described below to be the key audit matters to be communicated in our report
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
41
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC (continued)
Key Audit Matter
How our scope addressed this matter
Carrying value and assessment of impairment of
intangible exploration evaluation assets (Note 8)
The intangible exploration and evaluation asset
represents capitalised exploration costs in respect
of the Group’s key projects in Finland, Sweden and
Kosovo, and is the most significant asset on the
Group’s statement of financial position at the year
end. There is a risk that the carrying value of
intangible assets is not recoverable and an
impairment charge is required.
Given the early stage of development of the
projects, management is required to exercise
significant judgement in assessing the recoverability
of these assets. As a result of the level of judgement
required, we have determined this to be a key audit
matter.
Our work is this area included:
Obtaining confirmation that the Group has good
title to the applicable exploration licences;
Reviewing management’s assessment of
impairment in accordance with the
requirements of IFRS 6, providing challenge to,
and corroborating, key assumptions made in the
assessment;
Holding discussions with management,
reviewing publicly available information,
including Regulatory News Service (‘RNS’)
announcements and available technical reports,
and reviewing Board Minutes to understand
developments in the year and future plans at
each project, and to identify potential indicators
of impairment;
Where an impairment has been recorded during
the year in respect of one or more licences,
reviewing the circumstances leading to the
impairment and ensuring this has been recorded
at an appropriate amount; and
Reviewing disclosures in the financial statements
to ensure that they are complete and in
accordance with IFRS 6.
Key observations
Based on the audit work performed, we do not
consider the carrying value of intangible assets at the
year end to be materially misstated.
However, we draw attention to the disclosures made
in the “Review of Operations and Activities” section
of the Annual Report in relation to the status of
Kosovan licences, a number of which are currently
under application. Should the renewals be
unsuccessful for any reason, this would result in
impairment to the related intangible assets.
Valuation of investments and intercompany
receivables (Notes 10 and 11)
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
42
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC (continued)
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 contained
within the annual report. Our opinion on the Group and Parent Company 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. 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 course of 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 this gives rise to a
material misstatement in the financial statements themselves. 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 their 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 holds £4,094k of investments in
subsidiaries and £14,993k of intercompany loans
relating to its interest in Jokkmokk Iron Mines AB,
Grafintec Oy and Vardar Minerals Ltd. These are the
most significant assets on the Parent Company’s
statement of financial position.
There is a risk of material misstatement surrounding
the recoverability of investments in subsidiaries and
intercompany receivables. The carrying value of
these investments and receivables is ultimately
dependent on the value of the underlying assets. The
key underlying assets are exploration projects which
are at an early stage of exploration making it difficult
to definitively determine their value. As a result of
the level of judgement required, we have determined
this to be a key audit matter.
Our work in this area included:
Confirming ownership of investments;
Reviewing the investment balances for
indicators of impairment in accordance with IAS
36;
Considering the appropriateness of the
methodology applied by management in their
assessment of the recoverable amount of
intragroup loans, and the calculation of any
expected credit loss provisions against these
balances, in accordance with the requirements
of IFRS 9;
Evaluating the recoverability of investments and
intragroup loans by reference to underlying net
asset values and exploration projects; and
Evaluating the presentation and disclosures in
the financial statements in accordance with IFRS.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
43
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC (continued)
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 Group and Parent Company 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 Group and Parent Company financial statements, the directors are responsible for assessing the
Group 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
detailed below:
We obtained an understanding of the Group and Parent Company and the sector in which they operate
to identify laws and regulations that could reasonably be expected to have a direct effect on the financial
statements. We obtained our understanding in this regard through detailed discussions with
management about and potential instances of non-compliance with laws and regulations both in the
UK and in overseas subsidiaries. We also selected a specific audit team based on experience with
auditing entities within this industry of a similar size.
We determined the principal laws and regulations relevant to the Group and Parent Company in this
regard to be those arising from:
o
Companies Act 2006;
o
AIM Listing Rules;
o
Quoted Companies Alliance (QCA) Corporate Governance code;
o
UK tax and employment law;
o
Anti-bribery and money laundering regulations; and
o
Local mining laws and regulations in Sweden, Finland and Kosovo.
We designed our audit procedures to ensure the audit team considered whether there were any
indications of non-compliance by the Group and Parent Company with those laws and regulations.
These procedures included, but were not limited to:
o
Making enquiries of management;
o
Reviewing legal and professional fees to understand the nature of the costs and the existence
of any non-compliance with laws and regulations; and
o
Reviewing minutes of meetings of those charged with governance and Regulatory News Service
announcements.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
44
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEOWULF MINING PLC (continued)
We also identified the risks of material misstatement of the financial statements due to fraud. We
considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management
override of controls, that the potential for management bias was identified in relation to the carrying
value and assessment of impairment of intangible exploration assets, and the valuation of investments
and intercompany receivables. We addressed this by challenging the assumptions and judgements
made by management in relation to this balance. The work performed on this area is disclosed above.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by
performing audit procedures which included, but were not limited to: the testing of journals; reviewing
accounting estimates for evidence of bias; evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business; and reviewing significant
transactions in the banks statements to identify potentially large or unusual transactions that do not
appear to be in line with our understanding of business operations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Use of our report
This report is made solely to the 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 Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Imogen Massey (Senior Statutory Auditor)
15 Westferry Circus
For and on behalf of PKF Littlejohn LLP
Canary Wharf
Statutory Auditor
London E14 4HD
22 May 2025
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
45
CONSOLIDATED INCOME STATEMENT
2024
2023
Note
£
£
Continuing operations
Administrative expenses
(1,658,763)
(2,501,263)
Impairment of exploration assets
8
(72,563)
(350,158)
Operating loss
(1,731,326)
(2,851,421)
Finance costs
3
(61,334)
(197,724)
Finance income
3
3,404
7,923
Grant income
6
3,561
96,750
Fair value loss on listed investment
10
(3,313)
-
Recovery of impairment on listed investment
-
6,563
Loss before tax
(1,789,008)
(2,937,909)
Tax expense
5
-
-
Loss for the year
(1,789,008)
(2,937,909)
Loss attributable to:
Owners of the parent
(1,771,325)
(2,863,959)
Non-controlling interests
15
(17,683)
(73,950)
(1,789,008)
(2,937,909)
Loss per share attributable to the ordinary equity holder of the
parent:
Basic and diluted (pence)
7
(5.13)
(13.20)
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
46
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2024
2023
Note
£
£
Loss for the year
(1,789,008)
(2,937,909)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange losses arising on translation of foreign operations
(958,163)
(196,950)
(958,163)
(196,950)
Total comprehensive loss
(2,747,171)
(3,134,859)
Total comprehensive loss attributable to:
Owners of the parent
(2,709,387)
(3,032,416)
Non-controlling interests
15
(37,784)
(102,443)
(2,747,171)
(3,134,859)
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
47
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Company Number 02330496
Note
2024
2023
£
£
ASSETS
NON-CURRENT ASSETS
Intangible assets
8
16,023,022
14,873,326
Property, plant and equipment
9
56,685
87,755
Investments held at fair value through profit or loss
10
3,250
6,563
Loans and other financial assets
11
5,138
5,209
Right-of-use assets
12
48,333
63,158
16,136,428
15,036,011
CURRENT ASSETS
Trade and other receivables
13
192,512
152,004
Cash and cash equivalents
14
881,349
905,555
1,073,861
1,057,559
TOTAL ASSETS
17,210,289
16,093,570
EQUITY
SHAREHOLDERS' EQUITY
Share capital
16
12,356,927
11,571,875
Share premium
18
29,878,404
27,141,444
Capital contribution reserve
18
46,451
46,451
Share based payment reserve
18
1,124,131
903,766
Merger reserve
18
425,497
137,700
Translation reserve
18
(2,395,934)
(1,457,872)
Accumulated losses
18
(24,764,054)
(23,235,514)
16,671,422
15,107,850
Non-controlling interests
15
-
514,430
TOTAL EQUITY
16,671,422
15,622,280
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
19
508,124
433,662
Lease liabilities
20
20,727
22,575
Borrowings
21
-
-
528,851
456,237
NON-CURRENT LIABILITIES
Lease liabilities
20
10,016
15,053
10,016
15,053
TOTAL LIABILITIES
538,867
471,290
TOTAL EQUITY AND LIABILITIES
17,210,289
16,093,570
The financial statements were approved and authorised for issue by the Board of Directors on 22 May 2025 and
were signed on its behalf by:
Mr Ed Bowie – Director
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
48
COMPANY STATEMENT OF FINANCIAL POSITION
Company Number 02330496
Note
2024
2023
£
£
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
9
723
964
Investments in subsidiaries
10
4,093,692
3,961,315
Investments held at fair value through profit or loss
10
3,250
6,563
Loans and other financial assets
11
14,995,747
12,839,865
19,093,412
16,808,707
CURRENT ASSETS
Trade and other receivables
13
20,150
49,155
Cash and cash equivalents
14
714,339
794,909
734,489
844,064
TOTAL ASSETS
19,827,901
17,652,771
EQUITY
SHAREHOLDERS' EQUITY
Share capital
16
12,356,927
11,571,875
Share premium
18
29,878,404
27,141,444
Capital contribution reserve
18
46,451
46,451
Share based payment reserve
18
1,124,131
903,766
Merger reserve
18
425,497
137,700
Accumulated losses
18
(24,127,038)
(22,276,683)
TOTAL EQUITY
19,704,372
17,524,553
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
19
123,529
128,218
Borrowings
21
-
-
TOTAL LIABILITIES
123,529
128,218
TOTAL EQUITY AND LIABILITIES
19,827,901
17,652,771
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 £1,956,618
(2023: loss of £2,959,228).
These financial statements were approved and authorised for issue by the Board of Directors on 22 May 2025
and were signed on its behalf by:
Mr Ed Bowie – Director
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
49
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Note
Share capital
£
Share
premium
£
Capital
contribution
reserve
£
Share based
payment
reserve
£
Merger
reserve
£
Translation
reserve
£
Accumulated
losses
£
Totals
£
Non –
controlling
interests
£
Total
equity
£
At 1 January 2023
8,317,106
24,689,311
46,451
516,098
137,700
(1,289,415)
(20,323,414)
12,093,837
568,732
12,662,569
Loss for the year
-
-
-
-
-
-
(2,863,959)
(2,863,959)
(73,950)
(2,937,909)
Foreign exchange translation
-
-
-
-
-
(168,457)
-
(168,457)
(28,493)
(196,950)
Total comprehensive income
-
-
-
-
-
(168,457)
(2,863,959)
(3,032,416)
(102,443)
(3,134,859)
Transactions with owners
Issue of share capital
3,254,769
3,654,829
-
-
-
-
-
6,909,598
-
6,909,598
Cost of issue
-
(1,202,696)
-
-
-
-
-
(1,202,696)
-
(1,202,696)
Equity-settled share-based
payment transactions
17
-
-
-
387,668
-
-
-
387,668
-
387,668
Step up interest in subsidiary
10
-
-
-
-
-
-
(48,141)
(48,141)
48,141
-
At 31 December 2023
11,571,875
27,141,444
46,451
903,766
137,700
(1,457,872)
(23,235,514)
15,107,850
514,430
15,622,280
Loss for the year
-
-
-
-
-
-
(1,771,325)
(1,771,325)
(17,683)
(1,789,008)
Foreign exchange translation
-
-
-
-
-
(938,062)
-
(938,062)
(20,101)
(958,163)
Total comprehensive income
-
-
-
-
-
(938,062)
(1,771,325)
(2,709,387)
(37,784)
(2,747,171)
Transactions with owners
Issue of share capital
732,725
3,657,859
-
-
-
-
-
4,390,584
-
4,390,584
Cost of issue
-
(920,899)
-
-
-
-
-
(920,899)
-
(920,899)
Issue of share capital for
acquisition of NCI
52,327
-
-
-
287,797
-
-
340,124
-
340,124
Equity-settled share-based
payment transactions
17
-
-
-
326,628
-
-
-
326,628
-
326,628
Step up interest in subsidiary
10
-
-
-
-
-
-
136,522
136,522
(476,646)
(340,124)
Transfer on lapse of options
-
-
-
(106,263)
-
106,263
-
-
-
At 31 December 2024
12,356,927
29,878,404
46,451
1,124,131
425,497
(2,395,934)
(24,764,054)
16,671,422
-
16,671,422
The nature and purpose of the reserves are detailed in Note 18.
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
50
COMPANY STATEMENT OF CHANGES IN EQUITY
Note
Share
capital
£
Share
premium
£
Capital
contribution
reserve
£
Share based
payment
reserve
£
Merger
reserve
£
Accumulated
losses
£
Total
equity
£
At 1 January 2023
8,317,106
24,689,311
46,451
516,098
137,700
(19,317,455)
14,389,211
Loss for the year
-
-
-
-
-
(2,959,228)
(2,959,228)
Total comprehensive income
-
-
-
-
-
(2,959,228)
(2,959,228)
Transactions with owners
Issue of share capital
3,254,769
3,654,829
-
-
-
-
6,909,598
Cost of issue
-
(1,202,696)
(1,202,696)
Equity-settled share-based payment
transactions
17
-
-
-
387,668
-
-
387,668
At 31 December 2023
11,571,875
27,141,444
46,451
903,766
137,700
(22,276,683)
17,524,553
Loss for the year
-
-
-
-
-
(1,956,618)
(1,956,618)
Total comprehensive income
-
-
-
-
-
(1,956,618)
(1,956,618)
Transactions with owners
Issue of share capital
732,725
3,657,859
-
-
-
-
4,390,584
Cost of issue
-
(920,899)
-
-
-
-
(920,899)
Issue of share capital for acquisition of NCI
52,327
-
-
-
287,797
-
340,124
Equity-settled share-based payment
transactions
17
-
-
-
326,628
-
-
326,628
Transfer on lapse of options
-
-
-
(106,263)
-
106,263
-
At 31 December 2024
12,356,927
29,878,404
46,451
1,124,131
425,497
(24,127,038)
19,704,372
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
51
CONSOLIDATED STATEMENT OF CASH FLOWS
2024
2023
Note
£
£
Cash flows from operating activities
Loss before income tax
(1,789,008)
(2,937,909)
Depreciation of property, plant and equipment
4
26,127
43,276
Amortisation of right-of-use assets
12
37,205
29,478
Equity-settled share-based transactions
17
326,628
387,668
Impairment of exploration costs
4
72,563
350,158
Loss on disposal of property, plant and equipment
9
778
643
Gain on disposal of right of use assets
-
(58)
Finance income
3
(3,404)
(7,923)
Finance cost
3
61,334
197,724
Grant income
6
-
(96,750)
Fair value loss on listed investment
10
3,313
-
Unrealised foreign exchange losses
102,813
86,637
Recovery of impairment on listed investment
-
(6,563)
(1,161,651)
(1,953,619)
(Increase)/decrease in trade and other receivables
(39,177)
61,395
Increase/(decrease) in trade and other payables
8,545
(277,400)
Net cash used in operating activities
(1,192,283)
(2,169,624)
Cash flows from investing activities
Purchase of intangible assets
8
(2,265,113)
(2,308,473)
Purchase of property, plant and equipment
9
-
(7,052)
Initial payments for right of use assets
(6,108)
(33,121)
Grant receipt
6
152,941
96,750
Interest received
3
3,404
7,923
Net cash used in investing activities
(2,114,876)
(2,243,973)
Cash flows from financing activities
Proceeds from issue of shares
4,246,105
4,373,056
Payment of share issue costs
16
(776,421)
(704,587)
Lease principal
20
(24,945)
(21,228)
Lease interest paid
20
(2,187)
(2,420)
Proceeds from borrowings, net of issue costs
21
723,881
-
Repayment of loan principal
21
(699,172)
-
Interest paid
21
(59,147)
-
Net cash generated from financing activities
3,408,114
3,644,821
Increase/(decrease) in cash and cash equivalents
100,955
(768,776)
Cash and cash equivalents at beginning of year
905,555
1,776,556
Effect of foreign exchange rate changes
(125,161)
(102,225)
Cash and cash equivalents at end of year
881,349
905,555
Major non-cash transactions
On 9 April 2024, the Company acquired 100% of the share capital of Vardar Minerals Limited in
exchange for shares in the Company. The fair value of the consideration was £340,124.
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
52
COMPANY STATEMENT OF CASH FLOWS
2024
2023
Note
£
£
Cash flows from operating activities
Loss before income tax
(1,956,618)
(2,959,228)
Expected credit losses
11
467,651
1,001,537
Equity-settled share-based transactions
202,611
321,534
Depreciation of property, plant and equipment
9
241
233
Loss on disposal of property, plant and equipment
-
643
Impairment of investments in subsidiaries
10
331,764
-
Finance income
3
(3,207)
(7,655)
Finance cost
3
59,147
195,304
Fair value loss on listed investment
10
3,313
-
Unrealised foreign exchange losses
102,813
86,637
Recovery of impairment on listed investment
-
(6,563)
(792,285)
(1,367,558)
Decrease/(increase) in trade and other receivables
29,007
4,129
(Decrease)/increase in trade and other payables
(4,689)
(88,052)
Net cash used in operating activities
(767,967)
(1,451,481)
Cash flows from investing activities
Loans to subsidiaries
11
(2,633,108)
(2,757,113)
Interest received
3,207
7,655
Financing of subsidiary
10
-
(250,000)
Purchase of property, plant and equipment
-
(1,006)
Net cash used in investing activities
(2,629,901)
(3,000,464)
Cash flows from financing activities
Proceeds from issue of shares
4,246,105
4,373,056
Payment of share issue costs
16
(776,421)
(704,587)
Proceeds from borrowings, net of issue costs
21
723,881
-
Repayment of loan principal
21
(699,172)
-
Interest paid
21
(59,147)
-
Net cash from financing activities
3,435,246
3,668,469
Decrease in cash and cash equivalents
37,378
(783,476)
Cash and cash equivalents at beginning of year
794,909
1,667,840
Effect of foreign exchange rate changes
(117,948)
(89,455)
Cash and cash equivalents at end of year
714,339
794,909
Non-cash transactions
Non-cash transactions are as disclosed in the Group Statement of Cash Flow.
The notes on pages 53 to 89 form part of these financial statements
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Material accounting policy information
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
As at 31 December 2024, the Group had a cash balance of £0.88 million (2023: £0.91 million) and the Company
had a cash balance of £0.71 million (2023: 0.79 million).
On 21 March 2025, in conjunction with the Company’s right issue, the Company entered into a short-term
bridging loan of SEK 10 million (approx. £740k) with the underwriters of the rights issue to ensure that the
Company has sufficient financial resources to continue advancing its projects ahead of the right issue being
finalised. The bridging loan accrues interest of 1.5% per 30-day period, is subject to a 5% administrative charge
and is repayable on 30 June 2025. The bridging loan is due to be repaid using part of the proceeds from the
capital raise on the right issue, noted below.
On 8 May 2025 the Company announced the completion of the capital raise with a total of £2.2 million (SEK 28.1
million) gross raised to fund the development of the Company’s assets through their next key valuation
milestones. The net funds raised after the loan repayment and share issue transaction costs are £1.0 million (see
note 28).
Therefore, at the date of this report, based on management prepared cashflow forecasts, further funding will be
required within the next 12 months to allow the Group and Company to realise its assets and discharge its
liabilities in the normal course of business. There are currently no agreements in place and there is no certainty
that the funds will be raised 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
going concerns and therefore, the Group and the Company may be unable to realise their assets and discharge
their liabilities in the normal course of business. The Directors will continue to explore funding opportunities at
both asset and corporate levels. The Directors have a reasonable expectation that funding will be forthcoming
based on their past experience and therefore believe that the going concern basis of preparation is deemed
appropriate and as such the financial statements have been prepared on a going concern basis. The financial
statements do not include any adjustments that would result if the Group and the Company were unable to
continue as going concerns.
Basis of preparation
The consolidated and individual Company financial statements have been prepared in accordance with UK
adopted international accounting standards. The policies have been consistently applied to both the parent
Company and Group. 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.
Merger relief under s612 of the Companies Act 2006 removes the requirement to credit the share premium
account and where the conditions are met, the relief must be applied. However, it allows the investment to be
accounted for at the nominal value of the shares issued or the fair value of the consideration. Where the
investment is to be recorded at fair value, then the credit will be to the merger relief reserve.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Material accounting policy information (continued)
The conditions to qualify for merger relief are:
the consideration for shares in another company includes issued shares;
on completion of the transaction, the company issuing the shares will have secured at least a 90% equity
holding in the other company.
Merger relief was applied in acquisition of Grafintec and Vardar, in which the Company obtained 100% of the
share capital of Grafintec and Vardar for shares issued by the Company. Further details of these acquisitions are
outlined in note 10.
New standards, amendments and interpretations
Standards and interpretations adopted during the year
Information on new standards, amendments and interpretations that are relevant to the Group and Company
annual report and accounts is provided below:
Amendments to IAS 1 Presentation of Financial Statements (Classification of Liabilities as Current or
Non-current and Non-current Liabilities with Covenants)
Amendments to IFRS 16 Leases (Lease Liability in a Sale and Leaseback)
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures (Supplier
Finance Arrangements)
The Group did not have to change its accounting policies or make retrospective adjustments as a result of
adopting these new standards and amendments and they did not have a material impact.
Standards, amendments and interpretations that are not yet effective
There are a number of standards, amendments to standards, and interpretations which have been issued by the
IASB that are effective in future accounting periods that the Group has decided not to adopt early.
The following amendments are effective for the period beginning 1 January 2025:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability)
The following amendments are effective for the period beginning 1 January 2026:
Amendments to IFRS 9 Financial Instruments (Amendments to the Classification and Measurement of
Financial Instruments)
Amendments to IFRS 9 and IFRS 7 (Contracts Referencing Nature-dependent Electricity)
The following amendments are effective for the period beginning 1 January 2027:
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 19 Subsidiaries Without Public Accountability
Beowulf Mining Plc is currently assessing the impact of these new accounting standards and amendments.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 estimates and underlying assumptions are reviewed on
an on-going basis. Revisions to accounting estimates are recognised in the period in which the revision is made.
Sources of estimation and uncertainty
Exploration assets
The Pitkäjärvi licence was renewed in 2021, expired on 26 April 2024 with a further extension granted on 26 June
2024. However, this was appealed but on 9 April 2025, the Eastern Finland Administrative Court rejected the
appeal.
The licences for Mitrovica and Viti expired on 27 January 2024. New licence applications were submitted, and
confirmation of receipt was provided on 22 February 2024, which remain subject to approval. With the licence
applications formally lodged with ICMM, no other party may apply for licences over the same area.
Management considers that in the majority of cases the conditions have been met and are confident applications
or renewals will be accepted by receiving authorities. Therefore, no impairment is considered necessary.
The Board has considered the impairment indicators as outlined in the Group’s accounting policies and having
done so is of the opinion that no impairment provisions are required for Group’s main assets, Kallak, Aitolampi,
Mitrovica and Viti.
The licence for Karhunmäki was not renewed when it expired on 12 December 2024 and therefore has been fully
impaired in the year (see note 8).
Development costs
Expenditure incurred on internal development projects is capitalised as an intangible asset to the extent that the
technical, commercial and financial feasibility can be demonstrated by the Group. The Group have assessed that
the GAMP project reached the development phase following the completion of the PFS in July 2023 and therefore
all costs have been capitalised from this date. Management consider the carrying amount to be less than
recoverable amount of the asset and therefore no impairment is considered necessary.
Valuation of share-based payments
Accounting for some equity-settled share-based payment awards required the use of valuation models to
estimate the future share price performance of the Company. These models require the Directors to make
assumptions regarding the share price volatility, risk free rate and expected life of awards in order to determine
the fair values of the awards at grant date (see note 17).
Expected credit losses
The Company, in applying the ECL model under IFRS 9, must make assumptions when implementing the forward-
looking ECL model. This model is required to be used to assess the intercompany loans receivable from
subsidiaries for impairment.
Estimations were made regarding the credit risk of the counterparty and the underlying probability of default in
each of the credit loss scenarios. The scenarios identified by management included Production, Divestment, Fire-
sale and Failure. These scenarios considered technical data, necessary licences to be awarded, the Company’s
ability to raise finance, and ability to sell the project. A reasonable change in the probability weightings of both
the downside scenarios of failure and fire-sale of 3% would result in further impairment of £923,585 (2023:
£789,297).
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Material accounting policy information (continued)
Basis of consolidation
(i)
Subsidiaries and acquisitions
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (and 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.
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.
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.
When the subsidiary is fully consolidated, the difference of the carrying amount of the non-controlling interest
and the consideration paid is recognised directly in equity, attributable to the parent (Refer to note 15). 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. Each asset is evaluated annually at 31 December, to determine whether there
are any indications that impairment exists.
Exploration and evaluation costs arising following the application and granting of 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 activities include:
•
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.
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, exploration costs in respect of that project are
deemed to be impaired and written off to the statement of comprehensive income. Once the decision for
investment is taken, the assets will be assessed for impairment and to the extent that these are not impaired,
will be classified as development assets. At the point that production commences these assets will be
depreciated.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Material accounting policy information (continued)
Intangible assets – capitalised development costs
Development costs that are directly attributable to the graphite anode material processing plant (“GAMP”)
project are recognised as intangible assets where the following criteria are met:
it is technically feasible to complete the intangible asset so that it will be available for use;
management intends to complete the intangible asset and use or sell it;
there is an ability to use or sell the intangible asset;
it can be demonstrated how the intangible asset will generate probable future economic benefits;
adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset are available, and;
the expenditure attributable to the intangible asset during its development can be reliably measured.
Directly attributable costs that are capitalised as part of intangible assets include employee costs and an
appropriate portion of relevant overheads.
Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset
is ready for use.
Impairment
Exploration assets
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 exploration costs 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:
(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.
Development costs
Capitalised development costs are reviewed for impairment where there is an indication that the asset may be
impaired. Impairment indicators include internal and external sources of information.
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.
Office equipment
-
25 per cent on reducing balance
Computer equipment
-
25 per cent on reducing balance
Motor vehicles
-
20 per cent on reducing balance
Machinery and equipment -
20 to 25 per cent on reducing balance
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Material accounting policy information (continued)
Leased assets
When entering into a contract the Group assesses whether or not a lease exists. A lease exists if a contract
conveys a right to control the use of an identified asset under a period of time in exchange for consideration.
Leases of low value items and short-term leases (leases of less than 12 months at the commencement date) are
charged to the profit or loss on a straight-line basis over the lease term in administrative expenses.
The Group recognises right-of-use assets at cost and lease liabilities at the lease commencement date based on
the present value of future lease payments. The right-of-use assets are amortised on a straight-line basis over
the length of the lease term. The lease liabilities are recognised at amortised cost using the effective interest rate
method. Discount rates used reflect the incremental borrowing rate specific to the lease.
Investments in subsidiaries
Investments in subsidiary undertakings are stated at cost less provision for any impairment in value.
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.
Financial assets
The Group classifies its financial assets at amortised cost and at fair value through profit or loss. Management
determines the classification of its financial assets at initial recognition.
Amortised cost
The Group’s financial assets held at amortised cost comprise trade and other receivables, cash and cash
equivalents and loans and other financial assets in the consolidated statement of financial position.
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They arise principally through financial assets where the objective is to hold their assets in order
to collect contractual cash flows and the contractual cash flows are solely payments of the principal and interest.
They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition
or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision
for impairment.
Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9 using
the lifetime ECLs. During this process the probability of the non-payment of the trade receivables is assessed.
This probability is then multiplied by the amount of the expected loss arising from default to determine the
lifetime ECL for the trade receivables. For trade receivables, which are reported net; such provisions are recorded
in a separate provision account with the loss being recognised within administrative expenses in the consolidated
statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross
carrying value of the asset is written off against the associated provision.
Expected credit loss provisions for other receivables are recognised based on a forward-looking expected credit
loss model. The methodology used to determine the amount of the provision is based on whether there has been
a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk
has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses
along with gross interest income are recognised. For those for which credit risk has increased significantly,
lifetime expected credit losses along with the gross interest income are recognised. For those that are
determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are
recognised.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Material accounting policy information (continued)
Fair value through profit or loss
The Group’s financial assets held at fair value through profit or loss comprise equity investments held. These are
carried in the statement of financial position at fair value (refer to fair value hierarchy below). Subsequent to
initial recognition, changes in fair value are recognised in the statement of comprehensive income.
Financial liabilities
The Group’s financial liabilities include trade and other payables and borrowings. All financial liabilities are
recognised initially at fair value, net of transaction costs incurred, and are subsequently stated at amortised cost,
using the effective interest method.
Borrowings include convertible debt with settlement terms that fail the fixed for fixed criterion and are treated
as containing an embedded derivative liability, where this is recognised the loan value is allocated between the
derivative value and the loan residual which is carried at amortised cost. Borrowings are derecognised when the
obligation is extinguished.
Unless otherwise indicated, the carrying values of the Group’s financial liabilities measured at amortised cost
represents a reasonable approximation of their fair values.
Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the
definition of a financial liability or financial asset.
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.
The Group's ordinary shares are classified as equity instruments.
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 substantively 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.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
1. Material accounting policy information (continued)
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.
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. Where the
equity instrument is cancelled or lapsed, the Group shall account for the cancellation as an acceleration of
vesting, and shall therefore recognise immediately the amount that otherwise would have been recognised for
services received over the remainder of the vesting period.
Government grants
Government grants received on capital expenditure are generally deducted in arriving at the carrying amount of
the asset purchased. Grants for revenue expenditure are recorded gross in the Group income statement.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Employees and directors
Directors’ remuneration is as follows:
2024
2023
£
£
Directors’ emoluments, including salary and fees
374,850
443,157
Payments for loss of office
-
210,000
Share-based payments
202,611
321,534
577,461
974,691
Further details pertaining to Directors’ remuneration can be found in the Directors’ remuneration report on
page 32.
The remuneration of the highest paid Director who served during the year was Ed Bowie which consisted of
base salary of £210,000 (2023: £210,000).
The average monthly number of employees and Directors during the year was as follows:
Group
Group
Company
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
4
3
4
3
Employees
12
12
-
-
3. Finance income and costs
Group
Company
2024
2023
2024
2023
£
£
£
£
Finance income:
Deposit account interest
3,404
7,923
3,207
7,655
3,404
7,923
3,207
7,655
Finance costs:
Interest on lease liabilities
2,187
2,420
-
-
Interest on loans and borrowings
59,147
195,304
59,147
195,304
61,334
197,724
59,147
195,304
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
737,809
1,156,604
364,350
637,755
Social security costs
135,158
182,611
42,989
56,454
Other benefits
14,947
20,832
10,500
15,401
887,914
1,360,047
417,839
709,610
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Loss before tax and auditor’s remuneration
a.
The loss before tax is stated after charging:
2024
2023
£
£
Depreciation of property, plant and equipment (note 9)
26,127
43,276
Amortisation of right-of-use asset (note 12)
37,205
29,478
Share-based payment expense (note 17)
326,628
387,668
Foreign exchange differences
(7,792)
58,035
Loss on disposal of property, plant and equipment (note 9)
778
643
Gain on disposal of right of use assets (note 12)
-
(58)
Fair value loss on listed investment (note 10)
3,313
-
Recovery of impairment on listed investments1
-
(6,653)
Impairment of exploration costs (note 8)
72,563
350,158
1Recovery of impairment on listed investments related to shares held in Marula Mining Plc, which were previously impaired in
full.
b. Auditor’s remuneration
2024
2023
£
£
Fees payable to the Group’s auditor for the audit of the consolidated
financial statements
74,260
103,290
Fees payable to the Group auditor for other services:
- review of quarterly financial statements
3,730
3,240
77,990
106,530
5. Income tax
Analysis of tax expense
No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2024 or for the
year ended 31 December 2023.
Factors affecting the tax expense
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is
explained below:
2024
2023
£
£
Loss on ordinary activities before income tax
(1,789,008)
(2,937,909)
Tax thereon at a UK corporation tax rate of 25% (2023: 23.5%)
(447,252)
(690,409)
Effects of:
Non-deductible expenditure
50,713
75,615
Tax losses not recognised
247,705
390,715
Losses of overseas subsidiaries to be carried forward
148,834
224,079
-
-
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
5. Income tax (continued)
The main rate of UK corporation tax for the year ended 31 December 2024 was 25 per cent. The main rate of UK
corporation tax for the year ended 31 December 2023 and up to 1 April 2023 was 19 per cent. From 1 April 2023,
the main rate of UK corporation tax increased to 25 per cent, resulting in an effective tax rate of 23.5% for the
year ended 31 December 2024. The Group has estimated UK losses of £17,647,092 (2023: £16,656,271) and
foreign losses of £7,213,879 (2023: £5,780,656) available to carry forward against future trading profits. The
value of unrecognised deferred tax assets in respect of the UK losses amounts to £4,411,773 (2023: £4,164,068)
and foreign losses of £1,219,080 (2023: £1,041,936). The Directors believe that due to the uncertainty over when
the tax losses will be utilised it is appropriate not to recognise a deferred tax asset at this time.
6. Grant income
2024
2023
£
£
Business Finland
3,395
96,750
Other
166
-
3,561
96,750
Grafintec is participating in project titled “BATCircle – the development of a Finland-based Circular Ecosystem of
Battery Metals”. BATCircle is part of the European Union (“EU”) Strategic Energy Technology Programme. The
project is administered by Business Finland and contributes 50 per cent towards a budget of €791,000
(approximately £700,000) for Phase 2. The funding is released by the administrator as incurred with Phase 2
running for the initial period from 1 January 2021 to 31 December 2023, however, this was extended to 31
October 2024. A total of €530,000 grant funding was received from Business Finland for Phase 2. In the year to
31 December 2024, £3,395 has been recognised as grant income (2023: £96,750), this has decreased from the
prior year due to grant income being capitalised against the related development costs, which met the criteria
for capitalisation during the year (see note 8).
7. Basic and diluted loss per share
The calculation of basic and diluted loss per share at 31 December 2024 was based on the loss attributable to
ordinary shareholders of £1,771,315 (2023: £2,863,959) and a weighted average number of Ordinary Shares
outstanding during the year ended 31 December 2024 of 34,550,117 (2023: 21,699,167) calculated as follows:
2024
2023
£
£
Loss attributable to ordinary shareholders
(1,771,315)
(2,863,959)
Weighted average number of ordinary shares
2024
2023
Number
Number
Number of shares in issue at the beginning of the year
21,699,167
16,634,213
Effect of shares issued during year
12,850,950
5,064,954
Weighted average number of ordinary shares in issue for the year
34,550,117
21,699,167
The diluted earnings per share is identical to the basic loss per share as the exercise of warrants and options
would be anti-dilutive.
The weighted average number presented for the year ended 31 December 2023 above and the year ending 31
December 2023 in the statement of comprehensive income have been adjusted for the effect of a 50 to 1 share
consolidation.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
8. Intangible assets – Group
Exploration
costs
Other
intangible
assets
Total
£
£
£
COST
At 1 January 2023
13,002,465
-
13,002,465
Additions for the year – cash
2,232,694
75,779
2,308,473
Additions for the year – non-cash
98,208
-
98,208
Foreign exchange movements
(185,376)
(286)
(185,662)
Impairment
(350,158)
-
(350,158)
At 31 December 2023
14,797,833
75,493
14,873,326
At 1 January 2024
14,797,833
75,493
14,873,326
Additions for the year – cash
1,644,552
620,561
2,265,113
Additions for the year – non-cash
107,402
-
107,402
Grant income received
-
(180,644)
(180,644)
Foreign exchange movements
(955,907)
(13,705)
(969,612)
Impairment
(72,563)
-
(72,563)
At 31 December 2024
15,521,317
501,705
16,023,022
NET BOOK VALUE
At 31 December 2024
15,521,317
501,705
16,023,022
At 31 December 2023
14,797,833
75,493
14,873,326
The net book value of exploration costs is comprised of expenditure on the following projects:
2024
2023
£
£
Kallak
10,271,536
9,481,130
Pitkäjärvi
1,627,258
1,667,854
Karhunmaki
-
55,935
Rääpysjärvi
188,016
174,060
Luopioinen
7,157
4,812
Emas
48,898
41,693
Pirttikoski
7,347
-
Mitrovica
2,425,900
2,527,239
Viti
663,106
680,331
Shala
282,099
164,779
15,521,317
14,797,833
Total Group exploration costs of £15,521,317 (2023: £14,797,833) 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 £236,112 was recorded against the projects for services
provided by the Directors during the year (2023: £183,034).
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
8. Intangible assets – Group (continued)
In Sweden, during the year, the Supreme Administrative Court delivered the verdict to uphold the Government’s
awarding of the Exploitation Concession for Kallak. Management have considered that there is no current risk
associated with Kallak and thus have not impaired the project.
In Finland, the development of downstream capabilities is a key part of Grafintec's strategy. During the year, test
work in support of the GAMP PFS continued, with the PFS results announced in early 2025, demonstrating
extremely positive economics.
To support a sustainable graphite anode value chain in Finland, Grafintec is focused on expanding its resource
footprint and increasing its raw materials' inventory, primary and recycled, feeding downstream processing,
leveraging renewable power, targeting net zero CO2 emissions across the supply chain.
The Company's most advanced natural flake graphite project, Aitolampi, has an Indicated and Inferred Mineral
Resource of 26.7 Mt at 4.8 per cent TGC for 1,275,000 tonnes of contained graphite.
In Kosovo, Vardar has three exploration licence areas, Mitrovica, Viti and Shala. Progress continues to be made
in Kosovo, with the focus on the Shala area. During the year ended 31 December 2024 the Company has also
consolidated 100% interest in Vardar, providing full operational control.
The focus of activity in 2024 was low-cost mapping and surface sampling to define and refine exploration targets.
In the year, an impairment provision of £72,563 was recognised for project costs capitalised for projects at
Karhunmäki (2023: £350,158 in projects Ågåsjiegge and Åtvidaberg). In respect of the other licence areas, no
impairment indicators have been identified. The impairment is charged as an expense and included within the
consolidated income statement.
Other intangible assets capitalised are development costs incurred following the feasibility of GAMP project. This
development has attained a stage that it satisfies the requirements of IAS 38 to be recognised as intangible asset
in that it has the potential to completed and used, provide future economic benefits, its costs can be measured
reliably and there is the intention and ability to complete. The development costs will be held at cost less
impairment until the completion of the GAMP project at which stage they will be transferred to the value of the
Plant and depreciated.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
9. Property, plant and equipment
Group
Office
equipment
Motor
vehicles
Machinery
&
equipment
Computer
equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
2,953
148,696
133,846
1,499
286,994
Additions
-
-
6,046
1,006
7,052
Disposals
-
-
-
(1,499)
(1,499)
Reclassification
1,806
(7,330)
5,524
-
-
Foreign exchange movements
(126)
(6,151)
(5,255)
-
(11,532)
At 31 December 2023
4,633
135,215
140,161
1,006
281,015
Depreciation
At 1 January 2023
2,829
79,589
74,197
665
157,280
Charge for year
741
19,416
22,886
233
43,276
Disposals
-
-
-
(856)
(856)
Foreign exchange movements
(102)
(3,586)
(2,752)
-
(6,440)
At 31 December 2023
3,468
95,419
94,331
42
193,260
Group
Office
equipment
Motor
vehicles
Machinery
&
equipment
Computer
equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
4,633
135,215
140,161
1,006
281,015
Disposals
(3,179)
-
(1,950)
-
(5,129)
Foreign exchange movements
(146)
(7,664)
(8,318)
-
(16,128)
At 31 December 2024
1,308
127,551
129,893
1,006
259,758
Depreciation
At 1 January 2024
3,468
95,419
94,331
42
193,260
Charge for year
390
12,069
13,427
241
26,127
Disposals
(2,401)
-
(1,950)
-
(4,351)
Foreign exchange movements
(149)
(5,416)
(6,398)
-
(11,963)
At 31 December 2024
1,308
102,072
99,410
283
203,073
Net book value
At 31 December 2024
-
25,479
30,483
723
56,685
At 31 December 2023
1,165
39,796
45,830
964
87,755
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
9. Property, plant and equipment (continued)
Company
Computer
equipment
Total
£
£
Cost
At 1 January 2023
1,499
1,499
Additions
1,006
1,006
Disposals
(1,499)
(1,499)
At 31 December 2023
1,006
1,006
Depreciation
At 1 January 2023
665
665
Charge for year
233
233
Disposals
(856)
(856)
At 31 December 2023
42
42
Company
Computer
equipment
Total
£
£
Cost
At 1 January 2024
1,006
1,006
At 31 December 2024
1,006
1,006
Depreciation
At 1 January 2024
42
42
Charge for year
241
241
At 31 December 2024
283
283
Net book value
At 31 December 2024
723
723
At 31 December 2023
964
964
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Investments
Group and
Company
Company
listed
shares in
investments
subsidiaries
£
£
Cost
At 1 January 2023
-
3,645,181
Acquisitions
-
316,134
Recovery of impairment
6,563
-
At 31 December 2023
6,563
3,961,315
At 1 January 2024
6,563
3,961,315
Acquisitions
-
464,141
Impairment
-
(331,764)
Fair value losses
(3,313)
-
At 31 December 2024
3,250
4,093,692
Listed investments
The listed investment includes equity investment in Marula Mining Plc which is held at fair value.
Shares in subsidiaries
Further investments in the share capital of subsidiaries of Vardar constitute additions during the year of £340,124
(2023: £250,000) to increase the Company’s shareholding in Vardar from 61.1% to 100%. The share capital of
Vardar was reclassified to share capital of subsidiaries following control being obtained on 1 April 2019. The basis
for control was assessed on the on the Group’s ability to exercise power over Vardar through combination of the
increased investment in Vardar and the appointment of the CEO as Investor Director, which conveyed
substantive rights to direct the actions of Vardar that would ultimately affect the returns of the investee.
The additional investment during the year includes a share-based payment expense of £124,017 in relation to
share options granted to employees of the Company’s subsidiaries Grafintec, JIMAB and Vardar.
Included within the brought forward investment is 100 per cent of the share capital of Grafintec, 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 Grafintec 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 2.1 million ordinary shares was issued on the anniversary of 24 months from the date of the
acquisition, in accordance and 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 2.1 million additional consideration shares in the form
of a share-based payment transaction to the former owner, Rasmus Blomqvist at the time the performance
milestone is met. 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.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Investments (continued)
There was nil consideration recognised in the financial statements for the year ended 31 December 2024, (2023:
£Nil). No further share-based payment expense for the consideration shares was recognised in the year ended
31 December 2024 (2023: £Nil).
The remaining investment in subsidiaries includes the share capital of the Company’s directly owned subsidiaries,
listed below.
Step up interest in Vardar Minerals
The completion of the Vardar acquisition gives the Company exposure to a portfolio of exploration licences
situated in the European Tertiary calc-alkaline Tethys Arc most notable for its lead-zinc-silver mining districts, as
well as recent porphyry related copper and gold discoveries. On 9 April 2024, a further investment of £340,124
paid by shares was made to increase the Company’s shareholding in Vardar from 61.1% to 100% (refer to Note
16).
Further investment in Vardar was recognised as a decrease to accumulated losses of £433,026 (2023: increase
of £48,141).
£
Carrying value of non-controlling interest
773,150
Fair value of consideration
(340,124)
Movement in retained earnings
443,026
The Group consists of the following subsidiary undertakings:
2024
2023
Name
Incorporated
Activity
% holding
% holding
Grafintec Oy
Finland
Mineral exploration
100%
100%
Jokkmokk Iron Mines AB
Sweden
Mineral exploration
100%
100%
Beowulf Mining Sweden AB
Sweden
Mineral exploration
100%
100%
Wayland Copper Limited
UK
Holding company
100%
65.25%
Wayland Sweden AB
Sweden
Mineral exploration
100%
(1)(2)65.25%
Vardar Minerals Ltd
UK
Mineral exploration
100%
61.1%
UAV Geophysics (UK) Ltd
UK
Dormant
100%
(1)(2) 61.1%
Vardar Geoscience BVI Ltd
British Virgin Islands
Holding company
100%
(1)(2) 61.1%
Vardar Geoscience Kosovo L.L.C
Kosovo
Mineral exploration
100%
(1)(2) 61.1%
Vardar Exploration Kosovo L.L.C
Kosovo
Mineral exploration
100%
(1)(2) 61.1%
(1) Indirectly held
(2) Effective interest
The registered offices of the subsidiary undertakings as are follows:
Name
Registered office
Grafintec Oy
Plåtslagarevägen 35 A 1, 20320 Turku, Finland
Jokkmokk Iron Mines AB
Berggatan 14, 962 32, Jokkmokk, Sweden
Beowulf Mining Sweden AB
Berggatan 14, 962 32, Jokkmokk, Sweden
Wayland Copper Limited
201 Temple Chambers, 3-7 Temple Avenue, London
Wayland Sweden AB
Berggatan 14, 962 32, Jokkmokk, Sweden
Vardar Minerals Limited
201 Temple Chambers, 3-7 Temple Avenue, London
UAV Geophysics (UK) Ltd
201 Temple Chambers, 3-7 Temple Avenue, London
Vardar Geoscience BVI Ltd
Trident Chambers, P.O. Box 146, Wickhams Cay 1 Road Town,
British Virgin Islands
Vardar Geoscience Kosovo L.L.C
Rifat Berisha 23/10, Pristina, Republic of Kosovo
Vardar Exploration Kosovo L.L.C
Rifat Berisha 23/10, Pristina, Republic of Kosovo
Details on the non-controlling interest in subsidiaries is given in note 15.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
11. Loans and other financial assets
Group
Financial
fixed
assets
£
At 1 January 2023
5,181
Foreign exchange movements
28
At 31 December 2023
5,209
At 1 January 2024
5,209
Foreign exchange movements
(71)
At 31 December 2024
5,138
Company
Loans to
group
undertakings
Financial
assets
Total
£
£
£
At 1 January 2023
11,081,505
2,784
11,084,289
Advances made in the year
2,757,113
-
2,757,113
ECLs in year
(1,001,537)
-
(1,001,537)
At 31 December 2023
12,837,081
2,784
12,839,865
At 1 January 2024
12,837,081
2,784
12,839,865
Advances made in the year
2,633,108
-
2,633,108
ECLs in year
(477,226)
-
(477,226)
At 31 December 2024
14,992,963
2,784
14,995,747
Reconciliation of provisions against receivables arising from lifetime ECLs
31
December
2023
Current year
movement
31
December
2024
£
£
£
ECLs
3,107,786
467,651
3,575,437
Total provision arising from ECLs
3,107,786
467,651
3,575,437
The Directors have also assessed the cash flow scenarios of the above considerations. Estimations were made
regarding the credit risk of the counterparty and the underlying probability of default in each of the credit loss
scenarios. The scenarios identified by management included Production, Divestment, Fire-sale and Failure. These
scenarios considered technical data, necessary licences to be awarded, the Company’s ability to raise finance,
and ability to sell the project. The expected credit loss is calculated based on the Fire-Sale and Failure outcomes,
being the outcomes with an expected value of less than the carrying value of loans. A reasonable change in the
probability weightings of 3% to failure and fire-sale would result in further impairment of £923,585 (2023:
£789,297).
Further details of the transactions in the year are shown within related parties disclosure note 25.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
12. Right of use assets
Group
Motor
vehicles
Buildings
Total
£
£
£
Cost
At 1 January 2023
-
29,774
29,774
Additions
-
77,924
77,924
Disposals
-
(11,493)
(11,493)
Foreign exchange movements
-
(2,305)
(2,305)
At 31 December 2023
-
93,900
93,900
Amortisation
At 1 January 2023
-
10,496
10,496
Charge
-
29,478
29,478
Disposals
-
(9,577)
(9,577)
Foreign exchange movements
-
345
345
At 31 December 2023
-
30,742
30,742
Cost
At 1 January 2024
-
93,900
93,900
Additions
28,572
-
28,572
Disposals
-
(16,868)
(16,868)
Foreign exchange movements
(2,673)
(6,396)
(9,069)
At 31 December 2024
25,899
70,636
96,535
Amortisation
At 1 January 2024
-
30,742
30,742
Charge
5,165
32,040
37,205
Disposals
-
(16,868)
(16,868)
Foreign exchange movements
(129)
(2,748)
(2,877)
At 31 December 2024
5,036
43,166
48,202
Net book value
At 31 December 2024
20,863
27,470
48,333
At 31 December 2023
-
63,158
63,158
13. Trade and other receivables
Group
Company
2024
2023
2024
2023
£
£
£
£
Other receivables
126,981
88,180
-
-
VAT
55,249
51,315
10,832
37,515
Prepayments and accrued income
10,282
12,509
9,318
11,640
192,512
152,004
20,150
49,155
Included in other receivables is a deposit of £19,026 held by Finnish regulatory authorities (2023: £17,724).
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
14. Cash and cash equivalents
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank accounts
881,349
905,555
714,339
794,909
881,349
905,555
714,339
794,909
15. Non-controlling interests
The Group had material non-controlling interests arising from its subsidiaries Wayland Copper Limited and Vardar
Minerals Limited, which were both consolidated from 12 November 2024 and 9 April 2024, respectively. These
non-controlling interests can be summarised as follows;
2024
2023
£
£
Balance at 1 January
514,430
568,732
Total comprehensive loss allocated to NCI
(37,784)
(102,443)
Effect of step acquisitions
(476,646)
48,141
Total
-
514,430
2024
2023
£
£
Wayland Copper Limited
-
(164,573)
Vardar Minerals Limited
-
679,003
Total
-
514,430
Wayland Copper Limited is a 100% per cent owned subsidiary of the Company that had a material non-controlling
interest (“NCI”) prior to the acquisition of the remaining NCI during the year. Prior to the acquisition the Company
owned 65.25% of Wayland Copper Limited.
Summarised financial information reflecting 100 per cent of Wayland’s relevant figures is set out below:
2024
2023
£
£
Administrative expenses
(2,039)
(2,315)
Loss after tax
(2,039)
(2,315)
Loss allocated to NCI
(709)
(805)
Other comprehensive loss allocated to NCI
(247)
(102)
Total comprehensive loss allocated to NCI
(956)
(907)
Current assets
10,159
12,973
Current liabilities
(486,498)
(486,563)
Net liabilities
(476,339)
(473,590)
Net cash outflow
-
-
Non-controlling interest
-
(164,573)
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
15. Non-controlling interests (continued)
Vardar Minerals Limited is a 100% per cent owned subsidiary of the Company that had a material non-controlling
interest (“NCI”) prior to the acquisition on 9 April 2024. Prior to the acquisition the Company owned 61.1% of
Vardar Minerals Limited.
Summarised financial information reflecting 100 per cent of the Vardar Minerals relevant figures is set out below:
2024
2023
£
£
Administrative expenses
(117,311)
(112,400)
Loss after tax
(117,311)
(112,400)
Loss allocated to NCI
(16,974)
(73,145)
Other comprehensive income allocated to NCI
(19,852)
(28,391)
Total comprehensive loss allocated to NCI
(36,826)
(101,536)
Current assets
14,436
20,195
Non-current assets
2,349,391
2,388,133
Current liabilities
(425,333)
(142,686)
Net assets
1,938,494
2,265,642
Net cash inflow/(outflow)
1,636
(51,783)
Non-controlling interest
-
679,003
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
16. Share capital
31 December
2024
31 December
2023
£
£
Allotted, issued and fully paid
Ordinary shares of 1p each
-
11,571,875
Ordinary shares of 5p each
1,942,240
-
Deferred A shares of 0.9p each
10,414,687
-
12,356,927
11,571,875
The number of shares in issue was as follows:
Number
of Ordinary
shares
Balance at 1 January 2023
831,710,636
Issued during the year
325,476,827
Balance at 31 December 2023
1,157,187,463
Effect of share consolidation
(1,134,043,714)
Balance after share consolidation
23,143,749
Issued during the year
15,701,041
Balance at 31 December 2024
38,844,790
Number
of Deferred A
shares
Balance at 1 January 2023
-
Issued during the year
-
Balance at 31 December 2023
-
Issued during the year
1,157,187,463
Balance at 31 December 2024
1,157,187,463
On 5 March 2024, each of the existing ordinary shares of 1p each in capital of the Company was sub-divided and
re-classified into 0.1p New Ordinary Share and 0.9p Deferred A Share. The deferred A shares do not entitle the
holders thereof to receive notice of or attend and vote at any general meeting of the Company or to receive
dividends or other distributions or to participate in any return on capital on a winding up unless the assets of the
Company are in excess of £100,000,000. The Company retains the right to purchase the deferred shares from
any shareholder for a consideration of one pound in aggregate for all that shareholder's deferred shares.
On 3 April 2024, the Company announced the completion of the Rights Issue with 12,500,000 ordinary shares
issued raising £3.8 million before expenses. In addition to this, 1,571,172 ordinary shares were issued as part of
a PrimaryBid offer to existing UK retail investors and a subscription by Board and management raising a total of
£0.48 million before expenses.
On 9 April 2024, the Company issued 1,046,535 ordinary shares to the Vardar minority holders for the
consolidation of 100 per cent ownership of Vardar.
On 14 June 2024, the Company consolidated its ordinary share capital resulting in every 50 existing ordinary
shares of £0.001 each being consolidated into 1 new ordinary share of £0.05 each. On 31 December 2024, the
Company had 38,844,790 Ordinary Shares in issue (31 December 2023: 23,143,749).
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
16. Share capital (continued)
Share capital
Share
premium
Total
£
£
£
At 1 January 2024
11,571,875
27,141,444
38,713,319
Issue of new shares – cash
732,725
2,736,9601
3,469,685
Issue of new shares – acquisition
52,327
-
52,327
At 31 December 2024
12,356,927
29,878,404
42,235,331
Share capital
Share
premium
Total
£
£
£
At 1 January 2023
8,317,106
24,689,311
33,006,417
Issue of new shares
3,254,769
2,452,1332
5,706,902
At 31 December 2023
11,571,875
27,141,444
38,713,319
All issues are for cash unless otherwise stated.
1Stated net of issue costs of £920,900 of which £776,421 was paid in cash and £144,479 in ordinary shares of the
company.
2Stated net of issue costs of £1,202,696 of which £704,587 was paid in cash and £498,109 in ordinary shares of
the company.
The Company has removed the limit on the number of shares that it is authorised to issue in accordance with the
Companies Act 2006.
There were 15,701,041 shares issued in 2024. There were 6,509,537 shares issued in 2023.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
17. Share-based payments
During the year ended 31 December 2024, 2,560,000 options were granted (year ended 31 December 2023:
245,000). The options outstanding as at 31 December 2024 have an exercise price in the range of 37.5 pence to
262.5 pence (31 December 2023: 50.00 pence to 367.5 pence) and a weighted average remaining contractual life
of 8 years, 284 days (2023: 5 years, 294 days).
The share-based payments expense for the options for the year ended 31 December 2024 was £326,628 (2023:
£387,668).
The fair value of share options granted and outstanding were measured using the Black-Scholes model, with the
following inputs:
2024
2024
2024
2023
2022
2022
Fair value at grant date
24p
25.5p
15p
26p
179.5p
156p
Share price
35p
36.5p
35p
84p
200p
200p
Exercise price
37.5p
37.5p
37.5p
103p
50p
262.5p
Expected volatility
77.5%
79.9%
77.5%
55.2%
100.0%
100.0%
Expected option life
6 years
6 years
2 years
2.5 years
5 years
6 years
Contractual option life
10 years
10 years
10 years
5 years
10 years
10 years
Risk free interest rate
4.080%
4.100%
4.480%
4.800%
4.520%
4.480%
The inputs above have been adjusted for the effect of a 50 to 1 share consolidation.
The options issued will be settled in the equity of the Company when exercised and have a vesting period of one
year from date of grant.
Reconciliation of options in issue
Number
Weighted
average
exercise
price(£’s)
Outstanding at 1 January 2023
650,000
2.75
Granted during the period
245,000
1.05
Outstanding at 31 December 2023
895,000
2.30
Exercisable at 31 December 2023
745,000
2.10
Reconciliation of options in issue
Number
Weighted
average
exercise
price(£’s)
Outstanding at 1 January 2024
895,000
2.30
Granted during the period
2,560,000
0.38
Lapsed during the period
(285,000)
3.31
Outstanding at 31 December 2024
3,170,000
0.65
Exercisable at 31 December 2024
688,333
1.51
No warrants were granted during the year (2023: Nil).
The reconciliation of options in issue presented for the year ended 31 December 2023 has been retrospectively
adjusted for the effect of a 50 to 1 share consolidation.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
18. Reserves
The following is a description of each of the reserve accounts that comprise equity shareholders'
funds:
Share capital
The share capital comprises the issued ordinary shares of the Company at par.
Share premium
The share premium comprises the excess value recognised from the issue of ordinary
shares above par value.
Capital contribution reserve
The capital contribution reserve represents historic non-cash contributions to the
Company from equity holders.
Share-based payment 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.
Translation reserve
Cumulative gains and losses on translating the net assets of overseas operations to
the presentation currency.
Merger reserve
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
Section 612 of the Companies Act 2006.
Accumulated losses
Accumulated losses comprise the Group's cumulative accounting profits and losses
since inception.
19. Trade and other payables
Group
Company
2024
2023
2024
2023
£
£
£
£
Current:
Trade payables
378,868
307,909
20,873
43,511
Other payables
11,036
29,900
2,601
851
Social security and other taxes
22,264
14,631
10,685
13,224
Accruals
95,956
81,222
89,370
70,632
508,124
433,662
123,529
128,218
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
20. Lease liabilities
Nature of leasing activities
Vardar Geoscience leases buildings located in Str. Highway Prishtina Mitrovice Village Shupkove No.2, Kosovo.
This lease ended during the year and the contract changed to a monthly rolling lease which has been considered
exempt under IFRS 16 based on the short-term lease exemption.
Jokkmokk Mining leases office premises located in 962 31 Jokkmokk, Sweden and motor vehicles for use by
employees.
2024
2023
No.
No.
Number of active leases
2
2
Lease liabilities at year end
Group
2024
2023
£
£
Current
Lease liabilities
10,016
22,575
Non-current
Lease liabilities
20,727
15,053
Total lease liabilities
30,743
37,628
Analysis of lease liabilities
Group
Motor
vehicles
Buildings
Total
£
£
£
At 1 January 2023
-
19,377
19,377
Additions
-
43,126
43,126
Interest expense
-
2,420
2,420
Lease payments
-
(23,648)
(23,648)
Lease disposals
-
(1,974)
(1,974)
Foreign exchange movements
-
(1,673)
(1,673)
At 31 December 2023
-
37,628
37,628
Additions
22,001
-
22,001
Interest expense
648
1,539
2,187
Lease payments
(3,879)
(23,253)
(27,132)
Foreign exchange movements
(1,978)
(1,963)
(3,941)
At 31 December 2024
16,792
13,951
30,743
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
20. Lease liabilities (continued)
Analysis of gross value of lease liabilities
Maturity of the lease liabilities is analysed as follows:
2024
£
Within 1 year
10,016
Later than 1 year and less than 5 years
20,727
After 5 years
-
At 31 December 2024
30,743
The total cash outflow for leases in 2024 was £27,133 (2023: £25,637).
21. Borrowings
Group
Company
2024
2023
2024
2023
£
£
£
£
Opening balance
-
1,845,947
-
1,845,947
Funds advanced, net of commission
and transaction costs
723,881
-
723,881
-
Finance costs
59,147
195,304
59,147
195,304
Effect of FX
(24,709)
(2,818)
(24,709)
(2,818)
Funds repaid
(758,319)
(2,038,433)
(758,319)
(2,038,433)
-
-
-
-
On 14 February 2024, the Company secured a Bridging loan from Nordic investors of SEK 10.0 million
(approximately £0.76 million). The Loan had a fixed interest rate of 1.5 per cent per stated 30-day period during
the duration. Accrued interest was compounding. The Loan had a commitment fee of 5.0 per cent and a Maturity
Date of 31 May 2024. The bridging loan principal and interest totalling £0.758 was repaid early in April 2024 using
part of the proceeds from the capital raise on the right issue.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
22. Changes in liabilities from financing activities
Group
Leases
Borrowings
Total
£
£
£
Opening balance 1 January 2024
37,628
37,628
Cash movements
Borrowings advancements
-
723,881
723,881
Lease payments
(27,132)
-
(27,132)
Funds repaid
-
(758,319)
(758,319)
Finance cost
2,187
59,147
61,334
Effect of FX
(3,941)
(24,709)
(28,650)
Total
8,742
-
8,742
Non-cash movements
Lease additions
22,001
-
22,001
Closing balance 31 December 2024
30,743
-
30,743
Group
Leases
Borrowings
Total
£
£
£
Opening balance 1 January 2023
19,377
1,845,947
1,865,324
Cash movements
Lease payments
(23,648)
-
(23,648)
Total
(4,271)
1,845,947
1,841,676
Non-cash movements
Lease additions
43,126
-
43,126
Lease disposals
(1,974)
-
(1,974)
Finance cost
2,420
195,304
197,724
Funds repaid
-
(2,038,433)
(2,038,433)
Effect of FX
(1,673)
(2,818)
(4,491)
Closing balance 31 December 2023
37,628
-
37,628
Company
Borrowings
Total
£
£
Opening balance 1 January 2024
-
-
Cash movements
Borrowings advancements
723,881
723,881
Finance cost
59,147
59,147
Funds repaid
(758,319)
(758,319)
Effect of FX
(24,709)
(24,709)
723,881
723,881
Closing balance 31 December 2024
-
-
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
22. Changes in liabilities from financing activities (continued)
Company
Borrowings
Total
£
£
Opening balance 1 January 2023
1,845,947
1,845,947
Non-cash movements
Funds repaid
(2,038,433)
(2,038,433)
Finance cost
195,304
195,304
Effect of FX
(2,818)
(2,818)
Closing balance 31 December 2023
-
-
23. Financial instruments
The Group and Company’s financial instruments comprise cash and cash equivalents, loans and other financial
assets, trade and other receivables, trade and other payables, borrowings and lease liabilities that arise directly
from its operations.
The Group and Company hold the following financial instruments:
Group
At 31 December 2024
Held at
amortised cost
Fair value
through profit
and loss
Total
£
£
£
Financial assets
Cash and cash equivalents
881,349
-
881,349
Trade and other receivables
126,982
-
126,982
Other financial assets
5,138
3,250
8,388
1,013,469
3,250
1,016,719
Financial liabilities
Trade and other payables
485,865
-
485,865
Lease liability
30,743
-
30,743
516,608
-
516,608
Company
At 31 December 2024
Held at
amortised cost
Fair value
through profit
and loss
Total
£
£
£
Financial assets
Cash and cash equivalents
714,339
-
714,339
Loans to group undertakings
14,992,963
-
14,992,963
Other financial assets
2,784
3,250
6,034
15,710,086
3,250
15,713,336
Financial liabilities
Trade and other payables
112,844
-
112,844
112,844
-
112,844
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
23. Financial instruments (continued)
Group
At 31 December 2023
Held at
amortised cost
Fair value
through profit
and loss
Total
£
£
£
Financial assets
Cash and cash equivalents
905,555
-
905,555
Trade and other receivables
90,965
-
90,965
Other financial assets
5,209
6,563
11,772
1,001,729
6,563
1,008,292
Financial liabilities
Trade and other payables
420,808
-
420,808
Lease liability
37,628
-
37,628
458,436
-
458,436
Company
At 31 December 2023
Held at
amortised cost
Fair value
through profit
and loss
Total
£
£
£
Financial assets
Cash and cash equivalents
794,909
-
794,909
Loans to group undertakings
12,837,080
-
12,837,080
Other financial assets
2,784
6,563
9,347
13,634,773
6,563
13,641,336
Financial liabilities
Trade and other payables
116,743
-
116,743
116,743
-
116,743
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
23. Financial instruments (continued)
The carrying values of the Group’s financial liabilities measured at amortised cost represents a reasonable
approximation of their fair values.
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 manages foreign currency risk by
paying for foreign denominated invoices in the currency in which they are denominated. The Group’s and
Company’s net exposure to foreign currency risk at the reporting date is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Net foreign currency financial
assets:
Swedish Krona
581,691
427,207
596,681
484,839
Euro
37,386
(25,804)
56,391
(2,960)
Total net exposure
619,077
401,403
653,072
481,879
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
23. Financial instruments (continued)
Sensitivity analysis
A 10 per cent strengthening of sterling against the Group’s primary currencies at 31 December 2024 would have
decreased equity and profit or loss by the amounts shown below:
Group
Profit or loss
Equity
2024
2023
2024
2023
£
£
£
£
Swedish Krona
(58,169)
(42,721)
(58,169)
(42,721)
Euro
(3,739)
2,580
(3,739)
2,580
Total
(61,908)
(40,141)
(61,908)
(40,141)
Company
Profit or loss
Equity
2024
2023
2024
2023
£
£
£
£
Swedish Krona
(59,668)
(48,484)
(59,668)
(48,484)
Euro
(5,639)
296
(5,639)
296
Total
(65,307)
(48,188)
(65,307)
(48,188)
A 10 per cent weakening of sterling against the Group’s primary currencies at 31 December 2024 would have
an equal but opposite effect on the amounts shown above.
ii) 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.
Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the instrument
will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial
assets and liabilities that the Group uses. The Group’s interest-bearing financial liability in the year is the bridging
loan finance entered into in the prior year and repaid in the current year; this was at a fixed rate of interest. The
interest-bearing financial liability in the prior year was the bridging loan finance, which was at a fixed rate of
interest.
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 are successful and the subsidiaries start to generate
revenues. An assessment of the expected credit loss arising on intercompany loans is detailed in note 11.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
23. Financial instruments (continued)
The amounts used by the subsidiaries are as follows:
2024
2023
£
£
Jokkmokk Iron Mines AB
11,511,283
10,105,806
Vardar Minerals Limited
240,568
-
Grafintec Oy
3,241,111
2,656,618
Total
14,992,962
12,762,424
Reconciliation of provisions against receivables arising from lifetime ECLs
1 January
2023
Movement
in the year
31
December
2023
£
£
£
ECLs
2,106,249
1,001,537
3,107,786
Total provision arising from ECLs
2,106,249
1,001,537
3,107,786
i)
Commodity price risk
The principal activity of the Group is the exploration for iron ore in Sweden, graphite in Finland and other
prospective minerals in Kosovo, 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. The Board looks to mitigate this risk through the
diversification of different prospective minerals.
c)
Liquidity risk
To date the Group and Company have relied on shareholder funding and loan 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. The Group and Company have minimal exposure to
liquidity risk as trade and other payables all have a maturity of less than one year, the only exception being the
lease liability per note 20. The rationale for the preparation of the accounts on a going concern basis is detailed
in the Report of the Directors.
1 January
2024
Movement
in the year
31
December
2024
£
£
£
ECLs
3,107,786
467,651
3,575,437
Total provision arising from ECLs
3,107,786
467,651
3,575,437
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
23. Financial instruments (continued)
The undiscounted contractual maturities of the Group’s financial liabilities are set out below:
31 December 2024
Less than 3
months
Between 3
and 12
months
Between 1
and 2 years
£
£
£
Trade and other payables
508,124
-
-
Lease liabilities
5,505
15,222
10,016
513,629
15,222
10,016
31 December 2023
Less than 3
months
Between 3
and 12
months
Between 1
and 2 years
£
£
£
Trade and other payables
433,662
-
-
Lease liabilities
6,282
17,940
15,597
439,944
17,940
15,597
d) Capital management
The Groups capital structure consists of issued capital and reserves and accumulated losses. 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.
The Group does not have any externally imposed capital requirements.
Group
Net working capital
2024
2023
£
£
Cash and cash equivalents
881,349
905,555
Trade and other payables
(508,124)
(433,662)
Lease liabilities
(30,733)
(37,628)
Net cash
342,492
434,265
Total equity
16,671,432
15,622,280
Net cash to equity ratio
2.05%
2.78%
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
23. Financial instruments (continued)
Company
Net working capital
2024
2023
£
£
Cash and cash equivalents
714,339
794,909
Trade and other payables
(123,529)
(128,218)
Net cash
590,810
666,691
Total equity
20,036,136
17,524,553
Net cash to equity ratio
2.95%
3.80%
24. Segment reporting
The Group has only one primary business activity being 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 three countries, Sweden,
Finland and Kosovo, 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.
2024
Sweden
Finland
Kosovo
UK
Total
£
£
£
£
£
Intangible assets
10,271,531
2,380,385
3,371,106
-
16,023,022
Other non-current assets
50,940
-
55,708
6,758
113,406
Current assets
204,306
128,771
12,146
728,638
1,073,861
Liabilities
(249,938)
(60,723)
(99,209)
(128,997)
(538,867)
Finance income
(197)
-
-
(3,207)
(3,404)
Finance costs
1,957
-
230
59,147
61,334
Grant income
(166)
(3,395)
-
-
(3,561)
Intangible asset additions
1,527,012
537,307
127,552
-
2,191,871
Impairment
-
72,563
-
-
72,563
Expenses1
127,033
370,779
79,811
1,218,350
1,795,973
Loss for the year
126,670
367,384
79,811
1,215,143
1,789,008
Total comprehensive loss
850,690
473,230
208,107
1,215,144
2,747,171
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
24. Segment reporting (continued)
1Expenses include administrative expenses, impairment and finance costs.
25. Related party disclosures
Transactions with subsidiaries
During the year, cash advances of £1,633,485 (2023: £2,153,998) were made to Jokkmokk Iron Mines AB and the
company net settled costs of £59,861 (2023: net settled costs £33,643). The advances are held on an interest
free intragroup loan which has no terms for repayment. At the year end the intragroup loan amounted to
£13,872,661 (2023: £12,179,315).
Beowulf Mining Sweden AB received cash advances of £Nil (2023: £31,879) and the company net settled costs
of £Nil (2023: net settled costs of £22,318). The advances are held on an interest free intragroup loan which has
no terms for repayment. At the year end the intragroup loan amounted to £790,632 (2023: £790,632).
Grafintec Oy received cash advances of £650,683 (2023: £430,213) and net settled costs of £53,525 (2023: net
settled costs of £30,918) with the Company. The advances are held on an interest free intragroup loan which has
no terms for repayment. At the year end the intragroup loan amounted to £3,906,643 (2023: £3,202,436).
Vardar received cash advances of £169,010 (2023: £68,572) and net settled costs of £53,324 (2023: £1,374) with
the Company. The advances are held on an interest free intragroup loan which has no terms for repayment. At
the year end the intragroup loan amounted to £326,133 (2023: £100,155).
In accordance with its service agreement, Grafintec 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 at entity level, but this is subsequently eliminated
on consolidation.
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. An assessment of the expected credit loss arising on intercompany loans is detailed in note
11.
2023
Sweden
Finland
Kosovo
UK
Total
£
£
£
£
£
Intangible assets
9,481,130
1,944,354
3,372,349
-
14,797,833
Other non-current assets
57,747
-
93,721
11,217
162,685
Current assets
72,699
132,412
6,218
846,230
1,057,559
Liabilities
(159,504)
(39,950)
(114,247)
(157,589)
(471,290)
Finance income
(268)
-
-
(7,655)
(7,923)
Finance costs
1,686
-
734
195,304
197,724
Grant income
-
(96,750)
-
-
(96,750)
Gain on disposal of investment
-
-
-
(6,563)
(6,563)
Intangible asset additions
1,898,312
208,876
299,493
-
2,406,681
Impairment
350,158
-
-
-
350,158
Expenses1
549,084
404,362
85,707
2,009,992
3,049,145
Loss for the year
548,816
307,612
85,707
1,995,774
2,937,909
Total comprehensive loss
660,187
345,386
133,511
1,995,775
3,134,859
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
25. Related party disclosures (continued)
Transactions with other related parties
Key management personnel include all Directors and those who have authority and responsibility for planning,
directing and controlling the activities of the entity, the aggregate compensation paid to key management
personnel of the Company is set below.
2024
2023
£
£
Short-term employee benefits (including employers’ national insurance
contributions)
587,392
847,791
Loss of office
-
210,000
Post-retirement benefits
54,721
67,288
Share-based payments
299,706
321,534
Insurance
-
526
941,819
1,447,139
Short-term benefits include £42,451 (2023: £144,711) paid to Holistic Push AB, a Company controlled by Johan
Röstin. The amount owed at year end was £Nil (2023: £Nil).
Loss of office in the prior year comprises a settlement amount in relation to Kurt Budge’s resignation, which was
agreed on 21 July 2023. It represents the remainder of the notice period due to Mr Budge as he continued to be
paid until the date the agreement was reached.
26. Capital commitments
As an exploration and development company, the Company has a portfolio of exploration projects held through
subsidiary companies relevant to the local operations of the business. All of the Company’s business interests
carry financial commitments to remain in good standing which are funded directly by the Company.
All the subsidiary companies require timely submission of regulatory filings, financial accounts and tax
submissions. All exploration projects are held under exploration licences and permits, against which during the
year renewals are expected to be processed with associated renewal fees attaching.
27. Contingent liabilities
At 31 December 2024, the Company has a possible obligation to pay up to two years annual salary (£420,000)
to Ed Bowie in the event of a change in control.
28. Events after the reporting date
On 21 March 2025, in conjunction with the Company’s right issue, the Company entered into a short-term
bridging loan of SEK 10 million (approx. £740k) with the underwriters of the rights issue to ensure that the
Company had sufficient financial resources to continue advancing its projects ahead of the right issue being
finalised. The bridging loan accrues interest of 1.5 per cent per 30-day period, has an administrative charge of 5
per cent and is repayable on 30 June 2025.
On 8 May 2025 the Company announced the completion of the capital raise with a total of £2.2 million (SEK 28.1
million) gross raised to fund the development of the Company’s assets through their next key valuation
milestones. The net funds raised after the loan repayment and share issue transaction costs are £1.0 million.
BEOWULF MINING PLC
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
90
COMPANY INFORMATION
Directors
Secretary
Registered Number & Office
Incorporated in England and Wales
Mr E Bowie
Mr C Davies
Mr J Röstin
Mr M Schauman
ONE Advisory Limited
02330496 (England & Wales)
Beowulf Mining plc
201 Temple Chambers
3-7 Temple Avenue
London EC4Y 0DT
Finnish Office
Swedish Registered Address
Registrars
Grafintec Oy
Linnankatu 36 A7
FI-20100 Turku
FINLAND
All subsidiary companies
Berggatan 14
962 32 Jokkmokk
Sweden
Neville Registrars Ltd
Neville House,18 Laurel Lane
Halesowen
West Midlands
B63 3DA
Auditors
Nominated Adviser & Broker
Joint Broker
PKF Littlejohn LLP
15 Westferry Circus
London
E14 4HD
SP Angel Corporate Finance LLP
Prince Frederick House
35-39 Maddox Street
London
W1S 2PP
Shard Capital Partners LLP t/a Alternative
Resource Capital
8-10 Hill Street
London
W1J 5NQ
UK Bank
Public Relations UK
Swedish Custodian Bank
The Royal Bank of
Scotland
Piccadilly Circus Branch
48 Haymarket
London
SW1Y 4SE
BlytheRay Communications
Limited
4-5 Castle Court
London
EC3V 9DL
Skandinaviska Enskilda
Banken AB
ST M7
106 40 Stockholm
Sweden
Solicitors
BHW Solicitors
1 Smith Way
Grove Park
Enderby
Leicestershire
LE19 1SX
Website:
https://beowulfmining.com/