Registered number: 05389216
BLUEJAY MINING PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
BLUEJAY MINING PLC
CONTENTS
Company Information
Chairman’s Report
Strategic Report
Directors’ Report
Statement of Directors’ Responsibilities
Corporate Governance Report
Independent Auditor’s Report
Statements of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Company Statement of Changes in Equity
Statements of Cash Flows
Notes to the Financial Statements
Page
2
3
6
9
11
12
17
22
23
24
25
26
27
28
BLUEJAY MINING PLC
COMPANY INFORMATION
Directors
Roderick McIllree (Executive Chairman)
Bo Stensgaard (Chief Executive Officer)
Eric Sondergaard (Executive Director) – appointed 27 January 2022
Peter Waugh (Non-Executive Director)
Michael Hutchinson (Non-Executive Director)
Johannus Egholm Hansen (Non-Executive Director) – appointed on 15 March
2021
Ian Henderson (Non-Executive Director) – resigned 5 January 2021
Company Secretary
Westend Corporate LLP
Registered Office
Suite 1
15 Ingestre Place
London
W1F 0DU
Company Number
05389216
Bankers
Nominated Adviser
Broker
Independent Auditor
Solicitors
HSBC Bank plc
129 New Bond Street
London
W1J 2JA
S.P. Angel Corporate Finance LLP
Prince Frederick House
35-39 Maddox Street
London
W1S 2PP
Hannam & Partners (Advisory) LLP
2 Park Street
London
W1K 2HX
PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
London
E14 4HD
Hill Dickinson LLP
The Broadgate Tower
20 Primrose Street
London
EC2A 2EW
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BLUEJAY MINING PLC
CHAIRMAN’S REPORT
2021 marked another year that saw disruptions and difficult conditions relating to COVID-19 regulations and restrictions.
However, the Company was still able to deliver on several key milestones and make significant progress across all its projects
and business areas. During the year the Company signed a $20 million Joint Venture (‘JV’) and earn-in agreement on one of
its nickel projects in Finland with one of the world’s largest mining companies. We also strengthened our Board with the
appointments of Johannus Egholm Hansen as Non-Executive Director and post year-end, Eric Sondergaard as Executive
Director. In addition, Peter Davis was appointed as Project Manager for the Dundas Ilmenite Project (‘Dundas’). Peter has
extensive experience in mineral sands and titanium dioxide pigment operations. These additions undoubtedly leave us in a
strong position going forward with the Board and management team well equipped with the experience and knowhow to drive
the Company forward and deliver on its stated objectives.
One of the most significant developments during the Period was the signing of a JV agreement at the Disko-Nuussuaq
magmatic massive sulphide nickel-copper-platinum-cobalt project
in Greenland with KoBold Metals
(‘KoBold’), whereby KoBold will fund exploration on the project. KoBold’s principal investor is Breakthrough Energy Ventures,
which is overseen by Bill Gates, and is committed to identifying sustainable supplies of critical and battery metals using their
proprietary AI Technology. KoBold recently completed a $192.5 million fundraise, which will fund its work on Disko as well as
their other exploration assets. Over the Period, Bluejay also reached agreement to spin out its Finnish Black Shales Assets
to Metals One for circa £4 million in cash and shares.
(‘Disko’)
During 2022 the Company will focus on the continued development of its various assets specifically advancing Dundas to
production, supported by early site development and geotechnical work for infrastructure as well as progressing project
financing.
Greenland
Most notably, during the Period, we entered a strategic partnership with KoBold on the Disko project. KoBold may earn up to
51% of the project through significant expenditure over a three-year period. It is of particular significance that KoBold is aligned
with our goals to develop critical materials needed for the green transition sourced in an ethical and sustainable manner.
In the post period the Company and KoBold released the 2022 work programme plan for Disko. This is the first major
exploration campaign to be undertaken by the JV, and will incorporate KoBold’s cutting-edge technology and Bluejay’s
operational and local expertise with the objective of targeting massive nickel, copper, cobalt and platinum group metals
bearing sulphides. The 2022-programme will include 9,500-line kilometres (‘km’) of fixed-wing/helicopter/drone supported
geophysical surveys, and 4,000 geochemical sample locations covering 200-line km of soil sampling. Work is expected to
commence in early June with the mobilisation and build-up of the exploration camp starting in mid-May.
KoBold’s cutting-edge technology will provide a high degree of confidence in targeting which, alongside Bluejay’s operational
expertise in Greenland, increases confidence of a major discovery and the recognition of a new mineral province in West
Greenland. The geopolitical turmoil experienced this year has exposed supply risks, and the need to identify and develop new
deposits in stable jurisdictions, such as Greenland, has never been greater.
Last year Bluejay received approval for the Exploration and Closure Plan for Dundas from the Government of Greenland, the
final Government approval. This follows the awarding of the project’s Exploration Licence that was announced in December
2020. On a technical front we continue to progress the engineering optimisation and cost saving studies for Dundas. The
£5.2 million of net proceeds received from the placing in March 2022 will be utilised to complete the feasibility study at Dundas
to the level required for financial sign-off by a project finance lending syndicate. The Company will commence works this
forthcoming field season, completing the necessary engineering, geo-technical and planning activities, including an optimised
mine schedule for production. Additionally, the Company has received Letters of Interest from four International Export Credit
Agencies, which could form part of the lending syndicate along with commercial banks, and industrial entities that Bluejay has
been engaged in communication with over the last 12 months. The syndicate will be led by our Lead Arranger, a leading
global investment bank, all within a backdrop of robust ilmenite prices.
Following the restart of the pilot plant and commencement of processing in early 2021, the final samples from the pilot plant
in Canada were produced in co-operation with the Company’s distribution partner, a large, long established Asian international
industrial and trading company. The parcels will be used to target key end consumers identified by our distribution partner,
with the aim of consolidating and extending the existing distribution agreement.
The pilot processing plant in Canada was successfully restarted in 2021 following its closure in 2020 due to COVID
restrictions. This enabled the remaining material shipped from Greenland to be processed to produce concentrate suitable for
larger scale testing by key customers. The test work also provided additional valuable data for the detailed design of the
industrial scale plant. The pilot plant was decommissioned and closed in December 2021. The output from the pilot plant was
shipped for potential customers of the Company’s distribution partner. Feedback in 2022 will enable negotiations to
consolidate and extend the existing distribution agreement.
Post period, the Danish Geodata Agency, Geodatastyrelsen, published the Electronic Nautical Charts which cover the key
seaward approach and coastal waters for shipping to and from Dundas. The charts provide important navigational and
3
BLUEJAY MINING PLC
CHAIRMAN’S REPORT
bathymetric data which will be utilised during the construction period and the production phase of the project to ensure future
safe shipping operation. This enables us to advance discussions with potential bulk-carrier companies regarding the transport
of our products from the mine area.
Turning to Thunderstone, we received, in late January, initial exploration results from our maiden field programme. These
initial results justify continued work to further assess the newly identified gold-silver anomalies as well as other high tenor
base-metal results (Cu-Au-Ag-Mo-Zn and Cu-Ni-Cr-Co±Pt, Pd anomalies). Future work will focus on these newly identified
anomalies.
Additionally, during the year, Greenland held a general election and formed a new coalition Government. Our newly
appointed CEO, Bo Stensgaard, met with the newly appointed Minister for Housing, Infrastructure, Mineral Resources and
Gender Equality, Ms Naaja Nathanielsen in May 2021. During this meeting the Minister confirmed that the Greenland
Government continues to support the Mineral Strategy 2020-2024, which provides the framework for further development of
mineral resources in the country.
Finland
In 2021, the Company entered into a JV and earn-in agreement with Rio Tinto Mining and Exploration Ltd (‘Rio Tinto’) at the
Company’s Enonkoski nickel-copper-cobalt-PGM project (‘Enonkoski’). During the year an initial diamond drill programme of
3,000m was completed. The programme targeted mineralisation in the near-mine areas Tevanjoki and Laukunsuo and
included a top of bedrock sampling programme with a total of 99 drill holes and downhole electromagnetic surveys on 22 drill
holes. All diamond drill cores and top of bedrock core samples have been submitted for analysis with assay results pending.
In September, Rio Tinto approved and extended further exploration expenditure which resulted in a further 12 diamond drill
holes and one drill hole extension for a total of 4149.45m of drilling. This approval showcased Rio Tinto’s confidence in the
project and emphasised the potential of Enonkoski to be a profitable project. From the drill programme, intersections of nickel-
copper sulphide droplet zones logged in mafic intrusions were identified, which indicates promising results as these were
analogous features of the former mine close to the orebody.
Following on from the work carried out in 2021, further confidence in the project was demonstrated when the JV recently
announced its planned work programme for 2022. Preliminary plans include 1,500m follow-up diamond drilling at targets
drilled last year, up to 60 top of bedrock drill holes focused on new targets and infill sampling, as well as geological mapping
and sampling.
In July the Company provided an update on its Outokumpu copper-cobalt-gold-silver project (‘Outokumpu’) where Bluejay’s
100% owned subsidiary, FinnAust Mining Finland Oy (‘FinnAust’) identified five drill targets on the Outokumpu Belt. The first
stage of the drill programme is focusing on the Haapovaara target with 1,500m of drilling and the Haaponiemi target, a deep
target with 2,500m of drilling. The Company is in early discussions with various parties interested in partnering on the project,
adding a further potential asset to the Company’s value realisation strategy to monetise its non-flagship assets. The
compelling nature of this project’s exploration targets are emphasised by the global demand for base metals to be used within
the battery industrial ecosystem, the electrification movement and in the green transition. As a result, the five targets identified
at Outokumpu provide an exciting outlook for the project that will, and have, drawn interest from potential partners.
Bluejay went on to sign a binding term sheet and entered into a conditional agreement for the sale of its Paltamo and
Rautavaara nickel-zinc-copper-cobalt projects (collectively known as The Black Shales Project) to Metals One plc for a
combination of cash and shares totalling more than £4 million, further monetising the Company’s portfolio of high-quality
mineral projects. This agreement operates in line with a key aspect of the Company’s strategy to develop its range of assets
and attract potential partners.
Financial
Following a period of cash preservation during the peak of the COVID-19 Pandemic, the Company has accelerated activities.
The Group’s cash balance at year-end was £2.7 million and has been bolstered following the post-period placing in March.
The additional $7 million (£5.38 million before fees) fundraise supported by the Company’s existing institutional shareholders,
will enable the Company to complete the feasibility study that is required for Dundas to continue to progress the project into
production. Over the year Bluejay has continued its extensive optimisation process to maximise project economics, identify
lower cost options for infrastructure, mine, and processing solutions.
We ended the year with the receival of the VAT refund, of approximately £1.1 million, from our activities in Finland and
Greenland . This was a result of Her Majesty’s Revenue and Customs (‘HMRC’) withdrawing its appeal on the First-Tier
Tribunal’s decision. With the case closed, Bluejay can continue to reclaim VAT on its future activities.
Outlook
The past year saw the Company complete and further develop the portfolio, as well as monetise Company assets with the
conditional sale of the Black Shales. The JV agreement with KoBold marked a notable step towards the development of the
Disko project with secure funding and world class technology being utilised at the project.
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BLUEJAY MINING PLC
CHAIRMAN’S REPORT
The backing of KoBold supports a key part of Bluejay’s strategy to focus on sustainable operations with the highest of
Environmental, Social and Governance standards, and developing a supply chain of sustainable battery metals to aid the
green transition. The Company’s strategy continues to be based around developing and delivering high-grade, high-tonnage,
scalable deposits, with simple processing routes in supportive jurisdictions. The Company has followed this strategy
throughout the year and is making good progress, and the successful raise post period will enhance this progress with the
completion of the feasibility study at Dundas. In addition, the Company anticipates the receipt of fee income, for its role as
field work manager at both Enonkoski and Disko in 2022.
The Company, post period, also replenished its balance sheet with our successful $7 million equity raise that will ensure the
completion of the feasibility study at Dundas to the point of Project Finance sign off.
The outlook at Dundas has grown throughout 2021, the developments made have further outlined the importance and
potential of our flagship project. The appointment of the Lead Arranger of the project financing will help move the project
towards construction and then commercial production. To further support the financing and development of Dundas, the
addition of Peter Davies as Project Manager will provide significant experience, specifically, in mineral sands and titanium
dioxide pigment operations. His experience in this industry will aid in the completion of the preparatory works and the
necessary requirements for the Lead Arranger to financially sign off pre-construction works. The team has also, already this
year, secured the funds to ensure the completion of the feasibility study.
Furthering the credentials of the Dundas project, the ERMA announced its official support for Dundas, this will enable it to
help secure Dundas ilmenite for end users within the European Union (‘UN’), creating a secure supply chain option for titanium
ore and concentrate. The recognition and support of the project from ERMA adds to the support already received from the
government of Greenland and the financial support from a leading global investment bank.
Conversations with the Deputy Minister for the Ministry of Mineral Resources and the Minister for Housing, Infrastructure,
Minerals Resources and Gender Equality in Greenland in 2021 demonstrates the Greenlandic Government’s support for the
Company’s projects and ambitions in the country. This continued relationship between the Company and Greenland’s
government opens avenues for Bluejay to develop its projects on schedule and allows the Company to provide economic and
social benefits to all its stakeholders, including the local communities.
The conditional partial divestment of the Black Shale assets in Finland continued the Company’s focus on maintaining its
cash flow by monetising certain assets within its portfolio, maintaining our strategy of partnering projects to optimise the best
expenditure and ownership outcome for shareholders. On this note we were delighted that our JV partner Rio Tinto confirmed
the planned field activities for 2022 at Enonkoski, expected to recommence imminently. We will continue to look for
opportunities to further monetise these types of assets to provide further funds to develop our flagship projects.
Bluejay’s operating jurisdictions remain supportive, it has large scale resources, high grades, low costs, strong economics,
institutional and industry backers, an experienced team and access to end markets. As a result, the outlook for the Company
remains extremely positive for the upcoming year.
I am grateful to all of the communities in which we operate, our strategic partners, stakeholders, advisors and the entire
Bluejay team for their continued support and tireless work. Whilst the immediate global outlook continues to be dominated by
COVID and the war in Ukraine we are focused on delivering our key milestones and continuing to progress our portfolio, and
look forward to another productive and promising year. In the meantime, we hope everyone continues to stay safe and well
and we look forward to providing further updates on Bluejay’s successes in 2022.
Roderick McIllree
Chairman
18 May 2022
5
BLUEJAY MINING PLC
STRATEGIC REPORT
The Directors of the Company present their Strategic Report on the Group for the year ended 31 December 2021.
Strategic approach
The Group’s aim is to create value for shareholders through the discovery and development of economic mineral deposits.
The Group’s strategy is to continue to progress the development of its existing projects in Greenland and to evaluate its
existing and new mineral resource opportunities with a view to potential joint venture arrangements and/or other corporate
activities.
Organisation overview
The Group’s business is directed by the Board and is managed on a day-to-day basis by the Chief Executive Officer. The
Board monitors compliance with objectives and policies of the Group through monthly performance reporting, budget updates
and periodic operational reviews.
The Board comprises of three Executive Directors and three Non-Executive Directors.
The Corporate Head Office of the Group is located in London, UK, and provides corporate support services to the overseas
operations. Overseas operations are managed out of the Group’s office in Outokumpu, Finland and Nuuk, Greenland.
Review of business
Throughout the year, due to the COVID-19 pandemic, the UK, Greenland, Finland and Canadian governments all imposed
restrictions on air travel and non-essential work. Bluejay postponed 2021 field work in Greenland on recommendation of the
governments and in order to ensure the safety of its employees, contractors and supply chain. In Greenland, the Government
have advised that they will be relieving all spending commitments associated with exploration licences in 2021.
Alongside Dundas, the Group has a wider portfolio of prospective assets situated in Finland and the Disko area of
Greenland. At Disko, the Group signed a joint venture with KoBold Metals to explore the Disko Nuussuaq project in August
2021. In Finland, a drill programme begun at the Hammaslahti Copper-Gold-Zinc Project in May 2021 and was extended in
September 2021.
Looking forward, Bluejay will commence a 2022 field programme at Disko-Nuussuaq and at Dundas, will complete the
bankable feasibility study to continue to progress the project into Production. Bluejay currently has active drill programs in
Finland being undertaken by its in-country team.
Financial performance review
The loss of the Group for the year ended 31 December 2021 before taxation amounts to £2,706,833 (31 December 2020:
£2,487,563).
The Board monitors the activities and performance of the Group on a regular basis. The Board uses financial indicators based
on budget versus actual to assess the performance of the Group. The indicators set out below will continue to be used by the
Board to assess performance over the period to 31 December 2021.
The three main KPIs for the Group are as follows. These allow the Group to monitor costs and plan future exploration and
development activities:
KPI
Cash and cash equivalents
Administrative expenses as a percentage of total assets
Exploration costs capitalised during the period
2021
2020
2,701,792
£5,942,848
8.15%
6.81%
£2,887,110
£2,471,136
Cash has been used to fund the Group’s operations and facilitate its investment activities (refer to the Statements of Cash
Flows on page 26).
Administrative expenses are the expenses related to the Group’s ability to run the corporate functions to ensure they can
perform their operational commitments.
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BLUEJAY MINING PLC
STRATEGIC REPORT
Exploration costs capitalised during the period consist of exploration expenditure on the Group’s exploration licences net of
foreign exchange rate movements.
Principal risks and uncertainties
The management of the business and the execution of the Group’s strategy are subject to a number of risks. The key business
risks affecting the Group are set out below.
Risks are formally reviewed by the Board, and appropriate processes are put in place to monitor and mitigate them. If more
than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on
the Group.
Exploration risks
The exploration and mining business is controlled by a number of global factors, principally supply and demand which in turn
is a key driver of global mineral prices; these factors are beyond the control of the Group. Exploration is a high-risk business
and there can be no guarantee that any mineralisation discovered will result in proven and probable reserves or go on to be
an operating mine. At every stage of the exploration process the projects are rigorously reviewed to determine if the results
justify the next stage of exploration expenditure ensuring that funds are only applied to high priority targets.
The principal assets of the Group comprising the mineral exploration licences are subject to certain financial and legal
commitments. If these commitments are not fulfilled the licences could be revoked. They are also subject to legislation defined
by the Government; if this legislation is changed it could adversely affect the value of the Group’s assets.
Dependence on key personnel
The Group and Company is dependent upon its executive management team and various technical consultants. Whilst it has
entered into contractual agreements with the aim of securing the services of these personnel, the retention of their services
cannot be guaranteed. The development and success of the Group depends on its ability to recruit and retain high quality and
experienced staff. The loss of the service of key personnel or the inability to attract additional qualified personnel as the Group
grows could have an adverse effect on future business and financial conditions.
Uninsured risk
The Group, as a participant in exploration and development programmes, may become subject to liability for hazards that
cannot be insured against or third party claims that exceed the insurance cover. The Group may also be disrupted by a variety
of risks and hazards that are beyond control, including geological, geotechnical and seismic factors, environmental hazards,
industrial accidents, occupational and health hazards and weather conditions or other acts of God.
Funding risk
The only sources of funding currently available to the Group are through the issue of additional equity capital in the parent
company or through bringing in partners to fund exploration and development costs. The Company’s ability to raise further
funds will depend on the success of the Group’s exploration activities and its investment strategy. The Company may not be
successful in procuring funds on terms which are attractive and, if such funding is unavailable, the Group may be required to
reduce the scope of its exploration activities or relinquish some of the exploration licences held for which it may incur fines or
penalties.
Financial risks
The Group’s operations expose it to a variety of financial risks that can include market risk (including foreign currency, price
and interest rate risk), credit risk, and liquidity risk. The Group has a risk management programme in place that seeks to limit
the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance
costs. The Group does not use derivative financial instruments to manage interest rate costs and, as such, no hedge
accounting is applied.
COVID-19
The outbreak of the global COVID-19 virus resulted in business disruption and stock market volatility. The Group implemented
extensive business continuity procedures and contingency arrangements to ensure they were able to continue to operate.
Details of the Group’s financial risk management policies are set out in Note 3 to the Financial Statements.
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BLUEJAY MINING PLC
STRATEGIC REPORT
Section 172(1) Statement - Promotion of the Company for the benefit of the members as a whole
The Directors believe they have acted in the way most likely to promote the success of the Company for the benefit of its
members as a whole, as required by s172 of the Companies Act 2006.
The requirements of s172 are for the Directors to:
• Consider the likely consequences of any decision in the long term,
• Act fairly between the members of the Company,
• Maintain a reputation for high standards of business conduct,
• Consider the interests of the Company’s employees,
•
• Consider the impact of the Company’s operations on the community and the environment.
Foster the Company’s relationships with suppliers, customers and others, and
The Company continues to progress the development of its existing projects in Greenland, which is inherently speculative in
nature and, without regular income, is dependent upon fund-raising for its continued operation. The pre-revenue nature of the
business is important to the understanding of the Company by its members, employees and suppliers, and the Directors are
as transparent about the cash position and funding requirements as is allowed under AIM Rules for Companies.
The application of the s172 requirements can be demonstrated in relation to the some of the key decisions made during 2021:
Finalising the pre-feasibility studies as part of the exploitation licence process;
• Continuing evaluation of existing license areas and assessment of targets;
•
• Expanding the licensed land area;
•
•
• Continued assessment of corporate overheads, expenditure levels and wider market conditions.
Identifying and refining both new and previously defined drill targets;
Further identification of drill targets and preparation for a percussion drill program;
As a mining Group operating in Greenland and Finland, the Board takes seriously its ethical responsibilities to the communities
and environment in which it works. We abide by the local and relevant UK laws on anti-corruption & bribery. Wherever
possible, local communities are engaged in the geological operations & support functions required for field operations,
providing much needed employment and wider economic benefits to the local communities. In addition, we follow international
best practise on environmental aspects of our work. Our goal is to meet or exceed standards, in order to ensure we maintain
our social licence to operate from the communities with which we interact. The interests of our employees are a primary
consideration for the Board. Personal development opportunities are supported and a health and security support network is
in place to assist with any issues that may arise on field expeditions.
The Group Strategic Report was approved by the Board on 18 May 2022.
Bo Stensgaard
CEO
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BLUEJAY MINING PLC
DIRECTORS’ REPORT
The Directors present the Annual Report on the affairs of Bluejay Mining plc together with the Financial Statements for the
year ended 31 December 2021.
Dividends
The Directors do not recommend the payment of a dividend for the year (31 December 2020: £nil).
Directors & Directors’ interests
The Directors who served during the year ended 31 December 2021 are shown below and had, at that time the following
beneficial interests in the shares of the Company:
Roderick McIllree
Peter Waugh
Michael Hutchinson
Bo Stensgaard
Johannus Hansen
31 December 2021
31 December 2020
Ordinary
Shares
74,677,778
140,224
-
Options
-
-
-
135,000
16,100,000
220,000
-
Ordinary
Shares
74,677,778
140,224
-
-
-
Options
-
-
-
4,100,000
-
Further details on options can be found in Note 15 to the Financial Statements.
Substantial shareholders
The substantial shareholders with more than a 5% shareholding at 18 May 2022 are shown below:
Sandgrove Capital Management LLP
M&G Plc
Roderick McIllree
HSBC Bank Plc
Corporate responsibility
18 May 2022
Holding
Percentage
162,234,872
142,850,649
75,820,635
66,304,298
15.46 %
13.61 %
7.22 %
6.32 %
Environmental
The Company undertakes its exploration activities in a manner that minimises or eliminates negative environmental impacts
and maximises positive impacts of an environmental nature. Bluejay is a mineral explorer, not a mining company. Hence, the
environmental impact associated with its activities is minimal. To ensure proper environmental stewardship on its projects,
Bluejay conducts certified baseline studies prior to all drill programmes and ensures that areas explored are properly
maintained and conserved.
Health and safety
Bluejay operates a comprehensive health and safety programme to ensure the wellness and security of its employees. The
control and eventual elimination of all work related hazards requires a dedicated team effort involving the active participation
of all employees. A comprehensive health and safety programme is the primary means for delivering best practices in health
and safety management. This programme is regularly updated to incorporate employee suggestions, lessons learned from
past incidents and new guidelines related to new projects with the aim of identifying areas for further improvement of health
and safety management. This results in continuous improvement of the health and safety programme. Employee involvement
is regarded as fundamental in recognising and reporting unsafe conditions and avoiding events that may result in injuries and
accidents.
Internal controls
The Board recognises the importance of both financial and non-financial controls and has reviewed the Group’s control
environment and any related shortfalls during the period. Since the Group was established, the Directors are satisfied that,
given the current size and activities of the Group, adequate internal controls have been implemented. Whilst they are aware
9
BLUEJAY MINING PLC
DIRECTORS’ REPORT
that no system can provide absolute assurance against material misstatement or loss, in light of the current activity and
proposed future development of the Group, continuing reviews of internal controls will be undertaken to ensure that they are
adequate and effective.
Further details of corporate governance can be found in the Corporate Governance Report on page 12.
Supplier payment policy
The Group's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are
available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The Group's current policy concerning the payment of trade creditors is to:
•
•
•
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the Group's contractual and other legal obligations.
Going concern
The Consolidated Financial Statements have been prepared on a going concern basis. Although the Group’s assets are not
generating revenues and an operating loss has been reported, the Directors are of the view that the Group has sufficient
funds to meet all committed and contractual expenditure within the next 12 months and to maintain good title to the exploration
licences. This will ensure they will still be in a strong financial position once they are able to re-commence exploration activity.
The Group’s business activities together with the additional factors likely to affect its future development, performance and
position are set out in the Chairman’s Report on pages 3-5. In addition, Note 3 to the Consolidated Financial Statements
includes the Group’s objectives, policies and processes for managing its capital; its financial risk management objectives;
details of its financial instruments and its exposure to market, credit and liquidity risk.
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.
Financial Risk Management Objectives
The Group has disclosed the financial risk management objectives within Note 3 to these Financial Statements.
Events after the reporting period
Events after the reporting period are set out in Note 27 to the Financial Statements.
Future developments
Details of future developments for the Group are disclosed in the Chairman’s Report on page 3.
Provision of information to Auditor
So far as each of the Directors is aware at the time this report is approved:
•
•
there is no relevant audit information of which the Company's auditor is unaware; and
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit
information and to establish that the auditor is aware of that information.
Auditor
PKF Littlejohn LLP has signified its willingness to continue in office as auditor.
This report was approved by the Board on 18 May 2022 and signed on its behalf.
Bo Stensgaard
Director
10
BLUEJAY MINING PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable
law and regulations, including the AIM Rules for Companies.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have
elected to prepare the Group and Company Financial Statements in accordance with International Financial Reporting
Standards (IFRSs) in conformity with the requirements of the Companies Act 2006. 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 period. In preparing these Financial Statements, the
Directors are required to:
•
select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
•
•
state whether applicable IFRSs in conformity with the requirements of the Companies Act 2006 have been followed,
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 Group will
continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s
and Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and
Company, and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Group and Company, and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the
Company’s website, www.sigmaroc.com. Legislation in the United Kingdom governing the preparation and dissemination of
the Financial Statements may differ from legislation in other jurisdictions.
The Company is compliant with AIM Rule 26 regarding the Company’s website.
The Directors confirm that they have complied with the above requirements in preparing the Financial Statements.
11
BLUEJAY MINING PLC
CORPORATE GOVERNANCE REPORT
The Board of Bluejay Mining plc had adopted the QCA Corporate Governance Code (‘the Code’) as its code of corporate
goverance. The Code is published by the Quoted Companies Allicance (‘QCA’) and is available at www.theqca.com. The key
governance related matter that occurred during the financial year ended 31 December 2021 was the completion and
submission of the Environmental Impact Assessment and Social Impact Assessment reports at the Dundas project, both of
which have been confirmed compliant for the Public Consultation phase.
Corporate Governance Report
The QCA Code sets out 10 principles that should be applied. These are listed below together with a short explanation of how
the Company applies each of the principles:
Principle One
Business Model and Strategy
The Board has concluded that the highest medium and long term value can be delivered to its shareholders by the adoption
of a single strategy for the Company. The principal activity of the Group is the exploration and development of precious and
base metals and the aim is to create value for shareholders through the discovery and development of economic resource
deposits.
The Board implements this strategy by focusing investment into the exploration of world-class mineralised domains,
establishing a strict criteria for project selection, utilising industry recognised methods of exploration, developing a results-
driven exploration approach, actively monitoring operational and financial performance, measured against deliverable targets
and budgets and considering alternative commercial options for projects which no longer meet the established criteria of the
Group. This can be summarised as follows:
• Continued development of the Dundas ilmenite project in Greenland toward commercialisation. Key milestones
recently achieved include approval of the exploration and closure plan. Further detail is included in the Chairman’s
Report on pages 3-5.
• Entered into a joint venture agreement at Disko-Nuussuaq project in Greenland
• Drilling at the Enonkoski project with its joint venture partner
Principle Two
Understanding Shareholder Needs and Expectations
The Board is committed to maintaining good communication and having constructive dialogue with its shareholders. The
Company has close ongoing relationships with its private shareholders. Institutional shareholders and analysts have the
opportunity to discuss issues and provide feedback at meetings with the Company. In addition, all shareholders are
encouraged to attend the Company’s Annual General Meeting. Investors also have access to current information on the
Company though its website, www.bluejaymining.com, and via Kevin Sheil, Head of Corporate Development and Strategy or
the Company’s PR advisors, BlytheRay who are available to answer investor relations enquiries.
Principle Three
Considering Wider Stakeholder and Social Responsibilities
The Board recognises that the long term success of the Company is reliant upon the efforts of the employees of the Company
and its contractors, suppliers, regulators and other stakeholders. The Board has put in place a range of processes and
systems to ensure that there is close oversight and contact with its key resources and relationships. The Company has close
ongoing relationships with a broad range of its stakeholders and provides them with the opportunity to raise issues and provide
feedback to the Company.
Principle Four
Risk Management
In addition to its other roles and responsibilities, the Audit Committee is responsible to the Board for ensuring that procedures
are in place and are being implemented effectively to identify, evaluate and manage the significant risks faced by the
Company. The risk assessment matrix below sets out those risks, and identifies their ownership and the controls that are in
place. This matrix is updated as changes arise in the nature of risks or the controls that are implemented to mitigate them.
12
BLUEJAY MINING PLC
CORPORATE GOVERNANCE REPORT
The Audit Committee reviews the risk matrix and the effectiveness of scenario testing on a regular basis. The following
principal risks and controls to mitigate them, have been identified:
Activity
Operation
Risk
Injury to staff
Regulatory adherence
Breach of rules
Strategic
Market downturn
Failure to deliver
commerciality
Impact
Control(s)
Injury to staff whilst
operating heavy
machinery in remote
location
Censure or withdrawal of
authorisation
Change in Macro
economic conditions
Creating a safe working
environment through
strict procedures and
regular training
Strong compliance
regime instilled at all
levels of the Company
Ongoing monitoring of
economic events and
markets.
Inability to secure offtake
agreements
Active marketing and
experienced
management
Financial
Misappropriation of
Funds
Fraudulent activity and
loss of funds
Robust financial controls
and split of duties
IT Security
Loss of critical financial
data
Regular back up of data
online and locally
The Directors have established procedures, as represented by this statement, for the purpose of providing a system of internal
control. An internal audit function is not considered necessary or practical due to the size of the Company and the close day
to day control exercised by the executive Directors. However, the Board will continue to monitor the need for an internal audit
function. The Board works closely with and has regular ongoing dialogue with the outsourced finance function and has
established appropriate reporting and control mechanisms to ensure the effectiveness of its control systems.
Principle Five
A Well Functioning Board of Directors
As at the date hereof the Board comprised, the CEO Bo Stensgaard, the Executive Chairman Roderick McIllree, COO Eric
Sondergaard and three Non-Executive Directors, Peter Waugh, Michael Hutchinson and Johannus Hansen. Biographical
details of the current Directors are set out within Principle Six below. Executive and Non-Executive Directors are subject to
re-election at intervals of no more than three years. The letters of appointment of all Directors are available for inspection at
the Company’s registered office during normal business hours.
The Board meets at least three times per annum. It has established an Audit Committee, Remuneration Committee and AIM
Compliance Committee, particulars of which appear hereafter. The Board has agreed that appointments to the Board are
made by the Board as a whole and so has not created a Nominations Committee. The Non-Executive Directors are considered
to be part time but are expected to provide as much time to the Company as is required. The Board considers that this is
appropriate given the Company’s current stage of operations. It shall continue to monitor the need to match resources to its
operational performance and costs and the matter will be kept under review going forward. Michael Hutchinson, Peter Waugh
and Johannus Hansen are considered to be Independent Directors.
The Company shall report annually on the number of Board and committee meetings held during the year and the attendance
record of individual Directors. In order to be efficient, the Directors meet formally and informally both in person and by
telephone. To date there have been at least quarterly formal and informal meetings of the Board, and the volume and
frequency of such meetings is expected to continue at this rate.
13
BLUEJAY MINING PLC
CORPORATE GOVERNANCE REPORT
Details of the Directors’ attendance at the Board meetings are set out below:
Meetings Attended
3
3
4
4
3
-
Meetings eligible to
attend
4
4
4
4
3
-
Roderick McIllree
Michael Hutchinson
Peter Waugh
Bo Stensgaard
Johannus Egholm Hansen (1)
Eric Sondergaard (2)
Johannus Egholm Hansen was appointed on 15 March 2021
(1)
(2) Eric Sondergaard was appointed on 27 January 2022
Principle Six
Appropriate Skills and Experience of the Directors
The Board currently consists of six Directors and, in addition, the Company has employed the services of Westend Corporate
LLP to act as the Company Secretary. The Company is satisfied that given its size and stage of development, between the
Directors, it has an effective and appropriate balance of skills and experience across technical, commercial and financial
disciplines. The Director’s experience and skills are listed on the companies website, www.bluejaymining.com,
The Board shall review annually the appropriateness and opportunity for continuing professional development whether formal
or informal.
Roderick McIllree
Executive Chairman
Bo Stensgaard
Chief Executive Officer
Eric Sondergaard
Chief Operations Officer
Micheal Hutchinson
Non-Executive Director
Chairman of the Remuneration Committee and Member of the Audit Committee and AIM Compliance Committee.
Peter Waugh
Independent Non-Executive Director
Chairman of the AIM Compliance Committee, Audit committee and member of the Remuneration Committee.
Johannus Egholm Hansen
Independent Non-Executive Director
Member of the Audit Committee, AIM Compliance Committee and Remuneration Committee.
Where necessary the Board has engaged external professional consultants on an ongoing basis to ensure the Company is
meeting it’s strategies. The key advisers to the Company are SP Angel Corporate Finance LLP, H&P Advisory Ltd, BlytheRay
and Hill Dickinson.
The Board have ensured that the all external advisers are knowledgable and provide the required skillset.
Principle Seven
Evaluation of Board Performance
Internal evaluation of the Board, the Committees and individual Directors is to be undertaken on an annual basis and on a
three-yearly cycle the evaluations may be facilitated by an independent evaluator. The Board has not yet had any internal
reviews. The internal reviews will be in the form of peer appraisal and discussions to determine the effectiveness and
performance of the various governance components, as well as the Directors’ continued independence.
The results and recommendations that come out of the appraisals for the Directors shall identify the key corporate and
financial targets that are relevant to each Director and their personal targets in terms of career development and training.
Progress against previous targets shall also be assessed where relevant.
14
BLUEJAY MINING PLC
CORPORATE GOVERNANCE REPORT
Principle Eight
Corporate Culture
The Board recognises that their decisions regarding strategy and risk will impact the corporate culture of the Company as a
whole and that this will impact the performance of the Company. The Board is very aware that the tone and culture set by the
Board will greatly impact all aspects of the Company as a whole and the way that employees behave. 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. A large part of the Company’s activities are centred upon what needs
to be an open and respectful dialogue with employees, clients 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
adopted, with effect from the date on which its shares were admitted to AIM, a code for Directors’ and employees’ dealings
in securities which is appropriate for a company whose securities are traded on AIM and is in accordance with the
requirements of the Market Abuse Regulation which came into effect in 2016.
Principle Nine
Maintenance of Governance Structures and Processes
Ultimate authority for all aspects of the Company’s activities rests with the Board, the respective responsibilities of the
Chairman and Chief Executive Officer arising as a consequence of delegation by the Board. The Board has adopted
appropriate delegations of authority which set out matters which are reserved to the Board. The Chairman is responsible for
the effectiveness of the Board, while management of the Company’s business and primary contact with shareholders has
been delegated by the Board to the Chief Executive Officer.
Audit Committee
The Audit Committee comprises Peter Waugh, Johannus Egholm Hansen and Michael Hutchinson, and Peter Waugh chairs
this committee. This committee has primary responsibility for monitoring the quality of internal controls and ensuring that the
financial performance of the Company is properly measured and reported. It receives reports from the executive management
and auditors relating to the interim and annual accounts and the accounting and internal control systems in use throughout
the Company. The Audit and Committee shall meet not less than twice in each financial year and it has unrestricted access
to the Company’s auditors.
Remuneration Committee
The Remuneration Committee comprises Peter Waugh, Johannus Egholm Hansen and Michael Hutchinson, and Michael
Hutchinson chairs this committee. The Remuneration Committee reviews the performance of the executive Directors and
employees and makes recommendations to the Board on matters relating to their remuneration and terms of employment.
The Remuneration Committee also considers and approves bonuses, the granting of share options pursuant to the share
option plan and the award of shares in lieu of bonuses pursuant to the Company’s Remuneration Policy.
AIM Compliance Committee
The AIM Compliance Committee comprises Michael Hutchinson, Johannus Egholm Hansen and Peter Waugh. Peter Waugh
chairs this committee. The AIM Compliance Committee is responsible for the coordinating and monitoring the Company’s
regulatory responsibilities including liaising with the Nomad and the London Stock Exchange as necessary. The purpose of
the AIM compliance committee is to designate responsibility of ensuring best practice and application of the defined corporate
governance procedures.
Nominations Committee
The Board has agreed that appointments to the Board will be made by the Board as a whole and so has not created a
Nominations Committee.
Non-Executive Directors
The Board has adopted guidelines for the appointment of Non-Executive Directors which have been in place and which have
been observed throughout the year. These provide for the orderly and constructive succession and rotation of the Chairman
and non-executive Directors insofar as both the Chairman and non-executive Directors will be appointed for an initial term of
three years and may, at the Board’s discretion believing it to be in the best interests of the Company, be appointed for
subsequent terms. The Chairman may serve as a Non-Executive Director before commencing a first term as Chairman.
In accordance with the Companies Act 2006, the Board complies with: a duty to act within their powers; a duty to promote the
success of the Company; a duty to exercise independent judgement; a duty to exercise reasonable care, skill and diligence;
a duty to avoid conflicts of interest; a duty not to accept benefits from third parties and a duty to declare any interest in a
proposed transaction or arrangement.
15
BLUEJAY MINING PLC
CORPORATE GOVERNANCE REPORT
Principle Ten
Shareholder Communication
The Board is committed to maintaining good communication and having constructive dialogue with its shareholders. The
Company has close ongoing relationships with its private shareholders. Institutional shareholders and analysts have the
opportunity to discuss issues and provide feedback at meetings with the Company. In addition, all shareholders are
encouraged to attend the Company’s Annual General Meeting.
Investors also have access to current information on the Company though its website, www.bluejaymining.com, and via Kevin
Sheil, Head of Corporate Development and Strategy or the Company’s PR advisors, BlytheRay who are available to answer
investor relations enquiries.
The Company shall include, when relevant, in its annual report, any matters of note arising from the Audit or Remuneration
committees.
Peter Waugh
Non-Executive Director
18 May 2022
16
BLUEJAY MINING PLC
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2020
Opinion
Company number: 05389216
We have audited the financial statements of Bluejay Mining Plc (the ‘parent company’) and its subsidiaries (the ‘group’) for
the year ended 31 December 2021 which comprise the Consolidated and Parent Company Statement of Financial Position,
the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated and Parent
Company Statement of Changes in Equity, the Consolidated and Parent 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 2021 and of the group’s and parent company’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.
Conclusions relating to going concern
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:
a) Reviewing management’s assessment of going concern.
b) Determining if all relevant information has been included in the assessment of going concern including completeness
of forecast expenditure.
c) Analysing cash flow forecasts and budgets, reviewing the underlying assumptions in relation to expenditure and
checking mathematical accuracy.
d) Considering the cash position at and after the year end.
e) Reviewing the reasonable worst-case forecast scenario prepared by management and the financial resources
available to deal with this outcome.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group's or parent company’s ability to continue as a going concern
for a period of at least twelve months from when the financial statements are authorised for issue.
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 quantitative and qualitative thresholds for materiality determine the scope of our audit and the nature, timing and extent
of our audit procedures. The materiality for the financial statements as a whole applied to the group financial statements was
£328,000 (2020: £360,000) based on 1% of gross assets. We based the materiality on gross assets because we consider
this to be the most relevant performance indicator for a mining group in the exploration phase. The performance materiality
for the group was £196,800 (2020: £216,000). The materiality for the financial statements as a whole applied to the parent
company financial statements was £39,000 (2020: £42,000) based on 2% of the expenses. The performance materiality for
the parent company was £23,400 (2020: £25,200). For each component in the scope of our group audit, we allocated a
materiality that was less than our overall group materiality. 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,
The Notes on pages 28 to 50 form part of these Financial Statements.
17
BLUEJAY MINING PLC
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2020
Company number: 05389216
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, for example in determining sample sizes. As a group whose trade is in the
process of expanding through product development and existing product revenue streams, loss before tax was considered
the most appropriate benchmark to shareholders.
We agreed with those charged with governance that we would report all differences identified during the course of our audit
in excess of £16,400 (2020: £18,000) for the group and £1,950 (2020 : 2,100) for the parent company.
Our approach to the audit
In designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
In particular we looked at areas involving significant accounting estimates and judgements by the directors and considered
future events that are inherently uncertain, including review of group’s future exploration plans to support impairment
assessment of intangible assets. As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Of the 8 components of the group, a full scope audit was performed on the complete financial information of 3 components,
a limited scope review was performed on a component assessed as material and the remaining components were subject to
analytical review as they were not significant or material to the group.
Of the 8 reporting components of the group, 2 are located in Finland and audited by a network firm operating under our
instruction, 1 component is located in Greenland and audited by a component auditor operating under our instruction and the
audit of the remaining components were performed in London, conducted by PKF Littlejohn LLP using a team with specific
experience of auditing mining exploration entities and publicly listed entities. The Senior Statutory Auditor interacted regularly
with the component audit teams during all stages of the audit and was responsible for the scope and direction of the audit
process. This, in conjunction with additional procedures performed, gave us appropriate evidence for our opinion on the group
and parent company financial statements.
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.
Key Audit Matter
How our scope addressed this matter
Carrying value of intangible assets (refer note 7)
The group holds exploration and evaluation assets
of £27,922,589 which relate to the Dundas Titanium
Project in Greenland and a portfolio of copper, zinc
and nickel projects in Finland. Intangible assets
represent c. 85% of the group’s total assets. The
carrying value and recoverability of these assets
are tested annually for impairment. The estimated
recoverable amount of this balance is subjective due to
the inherent uncertainty involved in the
assessment of exploration projects.
the directors’
We obtained and critically assessed
impairment review of intangible assets which considered the
areas listed as indicators of impairment under IFRS 6. Our
work included the
following:
• Obtaining the exploration and exploitation licenses
and ensuring they remain valid;
• Reviewing the responses of component auditors to
their working
instructions and reviewing
our
papers;
• Reviewing key external reports for indicators of
impairment;
• Considering the group’s future plans for the
that activity and
exploration projects and
expenditure thereto was planned; and
• Considering whether there was an indicator that
the carrying amount of capitalised expenditure was
not recoverable.
The Notes on pages 28 to 50 form part of these Financial Statements.
18
BLUEJAY MINING PLC
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2020
investments
Net
in subsidiaries,
intercompany receivables (refer note 8)
including
in
The parent company’s net investment in subsidiaries is
£34,509,322. The carrying value of the net investment in
subsidiaries is ultimately dependent on the value of the
underlying assets. Many of the underlying assets are
exploration projects which are at an early stage of
exploration making it difficult to determine their value.
Valuations for these sites are therefore based on
judgments and estimates made by the directors - which
leads to a risk of misstatement.
Company number: 05389216
We have obtained and critically assessed the directors’
impairment review of the carrying value of the parent
company’s net investment in the subsidiaries. Our work
included:
• Reviewing the impairment indicators listed in IFRS
6 including specific consideration regarding the
renewal of the exploration licenses;
• Obtaining and reviewing available key external
reports;
• Reviewing the audit working papers of certain
components to assess impairment considerations
of exploration assets made by their auditors; and
for
impairment or non-impairment of investment in
subsidiaries
from
loans
subsidiaries.
• Discussing with management
the basis
receivable
and
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 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.
The Notes on pages 28 to 50 form part of these Financial Statements.
19
BLUEJAY MINING PLC
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2020
Responsibilities of directors
Company number: 05389216
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 discussions with management and the application of our
cumulative audit knowledge and experience of the sector.
• We determined the principal laws and regulations relevant to the group and parent company in this regard to be
those arising from AIM rules and the Companies Act 2006 and local mining and exploration regulations applicable
to the subsidiaries.
• 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 enquiries of management, review of minutes and RNS announcements and review of legal and
regulatory correspondence.
• 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 impairment assessment of intangible assets. We
addressed this by challenging the assumptions and judgements made by management when evaluating any
indicators of impairment.
• 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; and evaluating the business rationale of any significant transactions that are unusual or outside
the normal course of business.
• As part of the group audit, we have communicated with component auditors the fraud risks associated with the group
and the need for the component auditors to address the risk of fraud in their testing. To ensure that this has been
completed, we have reviewed component auditor working papers in this area and obtained responses to our group
instructions from the component auditors.
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.
The Notes on pages 28 to 50 form part of these Financial Statements.
20
BLUEJAY MINING PLC
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2020
Use of our report
Company number: 05389216
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 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.
Zahir Khaki (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
18 May 2022
15 Westferry Circus
Canary Wharf
London E14 4HD
The Notes on pages 28 to 50 form part of these Financial Statements.
21
BLUEJAY MINING PLC
STATEMENT OF FINANCIAL POSITION
As at 31 December 2021
Group
Company
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Note
£
£
£
£
6
7
8
1,802,379
27,922,589
-
2,556,911
26,768,227
-
30,651
-
34,509,322
91,862
-
33,168,092
29,724,968
29,325,138
34,539,973
33,259,954
Non-Current Assets
Property, plant and equipment
Intangible assets
Investment in subsidiaries
Current Assets
Financial assets at fair value through profit or loss
Trade and other receivables
Cash and cash equivalents
9
10
-
228,909
2,701,792
100,000
1,503,896
5,942,848
-
564,181
2,534,964
100,000
1,248,085
5,649,030
Total Assets
Non-Current Liabilities
2,930,701
7,546,744
3,099,145
6,997,115
32,655,669
36,871,882
37,639,118
40,257,069
Deferred tax liabilities
12
496,045
496,045
496,045
496,045
-
-
-
-
Current Liabilities
Lease liabilities
Trade and other payables
11
-
630,833
62,220
1,179,694
-
365,175
62,220
175,928
630,833
1,241,914
365,175
238,148
Total Liabilities
1,126,878
1,737,959
365,175
238,148
Net Assets
31,528,791
35,133,923
37,273,943
40,018,921
Equity attributable to owners of the Parent
Share capital
Share premium
Other reserves
Retained losses
Total Equity
14
14
16
7,484,355
55,705,882
(7,213,274)
(24,448,172)
7,484,232
55,620,034
(6,220,719)
(21,749,624)
7,484,355
55,705,882
1,292,323
(27,208,617)
7,484,232
55,620,034
644,738
(23,730,083)
31,528,791
35,133,923
37,273,943
40,018,921
The Company has elected to take the exemption under Section 408 of the Companies Act 2006 from presenting the Parent
Company Income Statement and Statement of Comprehensive Income. The loss for the Company for the year ended 31
December 2021 was £3,486,819 (profit for year ended 31 December 2020: £773,890).
The Financial Statements were approved and authorised for issue by the Board of Directors on 18 May 2022 and were signed
on its behalf by:
Bo Stensgaard
Chief Executive Officer
The Notes on pages 28 to 50 form part of these Financial Statements.
22
BLUEJAY MINING PLC
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2021
Continued operations
Revenue
Cost of sales
Gross profit
Administrative expenses
Other (losses)/gains
Foreign exchange gain/(losses)
Operating loss
Finance (expense)/income
Other income
Loss before income tax
Income tax
Loss for the year attributable to owners of the Parent
Basic and Diluted Earnings Per Share attributable to owners of the
Parent during the period (expressed in pence per share)
Year ended
31 December
2021
Year ended 31
December
2020
£
-
(199,844)
(199,844)
(2,662,046)
(46,072)
18,235
(2,889,727)
(4,251)
187,145
(2,706,833)
-
£
-
-
-
(2,510,820)
49,360
(65,019)
(2,526,479)
1,968
36,949
(2,487,562)
229,963
(2,706,833)
(2,257,599)
(0.28)p
(0.23)p
Note
23
23
20
19
21
22
The Notes on pages 28 to 50 form part of these Financial Statements.
23
BLUEJAY MINING PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2021
Loss for the year
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
Currency translation differences
Other comprehensive income for the year, net of tax
Total Comprehensive Income attributable to owners of the Parent
Year ended 31
December 2021
£
Year ended 31
December
2020
£
(2,706,833)
(2,257,599)
(1,640,140)
1,399,646
(4,346,973)
1,399,646
(4,346,973)
(857,953)
The Notes on pages 28 to 50 form part of these Financial Statements.
24
BLUEJAY MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
Balance as at 1 January 2020
7,484,066
55,463,656
(7,604,567)
(19,543,695)
35,799,460
Share capital
Share premium
Other reserves
Retained losses
Note
£
£
£
£
Total
£
Loss for the year
Other comprehensive income for the year
Items that may be subsequently
reclassified to profit or loss
Currency translation differences
Total comprehensive income for the year
-
-
-
-
-
-
-
(2,257,599)
(2,257,599)
1,399,646
-
1,399,646
1,399,646
(2,257,599)
(857,953)
Share based payments
Issued Options
Expired options
15
14
14
166
156,378
-
-
-
35,872
(51,670)
-
-
51,670
156,544
35,872
-
Total transactions with owners, recognised
directly in equity
166
156,378
(15,798)
51,670
192,416
Balance as at 31 December 2020
7,484,232
55,620,034
(6,220,719)
(21,749,624)
35,133,923
Balance as at 1 January 2021
7,484,232
55,620,034
(6,220,719)
(21,749,624)
35,133,923
-
(2,706,833)
(2,706,833)
Loss for the year
Other comprehensive income for the year
Items that may be subsequently
reclassified to profit or loss
Currency translation differences
Total comprehensive income for the year
Share based payments
Issued Options
Exercised options
Total transactions with owners, recognised
directly in equity
15
14
14
-
-
-
123
-
123
-
-
-
85,848
-
(1,640,140)
(1,640,140)
-
655,870
(8,285)
-
(1,640,140)
(2,706,833)
(4,346,973)
-
-
8,285
8,285
85,971
655,870
-
741,841
85,848
647,585
Balance as at 31 December 2021
7,484,355
55,705,882
(7,213,274)
(24,448,172)
31,528,791
The Notes on pages 28 to 50 form part of these Financial Statements.
25
BLUEJAY MINING PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
Share capital
Note
£
Share
premium
£
Other reserves
Retained losses
Total equity
£
£
£
Balance as at 1 January 2020
7,484,066
55,463,656
660,536
(24,555,643)
39,052,615
Profit for the year
Total comprehensive income for the year
Share based payments
Issued Options
Expired Options
Total transactions with owners, recognised
directly in equity
-
-
-
-
15
14
14
166
156,378
-
-
-
-
-
35,872
(51,670)
773,890
773,890
773,890
-
-
51,670
773,890
156,544
35,872
-
166
156,378
(15,798)
51,670
192,416
Balance as at 31 December 2020
7,484,232
55,620,034
644,738
(23,730,083)
40,018,921
Balance as at 1 January 2021
7,484,232
55,620,034
644,738
(23,730,083)
40,018,921
Loss for the year
Total comprehensive income for the year
-
-
-
-
Share based payments
Issued Options
Exercised options
15
14
14
123
85,848
-
-
-
-
-
655,870
(8,285)
(3,486,819)
(3,486,819)
(3,486,819)
(3,486,819)
-
-
8,285
85,971
655,870
-
Total transactions with owners, recognised
directly in equity
123
85,848
(647,585)
8,285
741,841
Balance as at 31 December 2021
7,484,355
55,705,882
1,292,323
(27,208,617)
37,273,943
The Notes on pages 28 to 50 form part of these Financial Statements.
26
BLUEJAY MINING PLC
STATEMENTS OF CASH FLOWS
For the year ended 31 December 2021
Cash flows from operating activities
Profit/(Loss) before income tax
Adjustments for:
Depreciation
Gain on sale of financial assets at FVTPL
Share options expense
Share based payments
Intercompany management fees
Net finance (income)/costs
Non cash loss/(gain)
Impairments
Income tax received
Changes in working capital:
Decrease in trade and other receivables
Increase/(Decrease) in trade and other payables
Net cash used in operating activities
Cash flows from investing activities
Purchase of property plant and equipment
Sale/(purchase) of financial assets at FVTPL
Sale of property, plant and equipment
Purchase of intangible assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Transaction costs of share issue
Net loans granted to subsidiary undertakings
Repayment of loans
Interest paid
Net cash generated from financing activities
Group
Company
Year ended
Year ended
31 December
2021
31 December
2020
Year ended
31 December
2021
Year ended 31
December
2020
Note
£
£
£
£
6
15
19
21
9
11
6
6
7
14
14
(2,706,833)
(2,487,563)
(3,486,826)
773,890
460,713
(75,497)
655,870
-
-
4,251
454
-
-
606,585
-
35,872
156,544
-
(1,968)
4,371
14,299
229,963
83,645
(75,497)
655,870
-
(722,716)
(668,198)
103,308
-
35,872
156,544
(574,921)
(641,556)
2,329,977
(1,648,862)
-
-
-
-
1,377,664
305,100
1,413,873
1,054,892
(321,408)
(345,257)
171,081
(820,248)
(604,786)
(1,482,054)
(298,791)
(1,561,081)
(26,037)
75,497
179,245
(243,854)
(100,000)
-
(2,887,110)
(2,471,136)
379
6,697
(22,433)
(17,331)
75,497
(100,000)
-
-
379
-
-
6,697
(2,658,026)
(2,808,293)
53,443
(110,634)
85,970
-
-
(62,220)
(252)
23,498
-
-
-
(80,814)
(1,528)
(82,342)
85,970
-
-
-
(2,892,470)
(2,795,805)
(62,220)
(80,814)
-
-
(2,868,720)
(2,876,619)
Net decrease/(increase) in cash and cash equivalents
(3,239,314)
(4,372,689)
(3,114,068)
(4,548,334)
Cash and cash equivalents at beginning of year
5,942,848
10,314,701
5,649,030
10,197,337
Exchange gain on cash and cash equivalents
(1,742)
836
2
27
Cash and cash equivalents at end of year
10
2,701,792
5,942,848
2,534,964
5,649,030
The Notes on pages 28 to 50 form part of these Financial Statements.
27
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
1. General information
The principal activity of Bluejay Mining plc (the ‘Company’) and its subsidiaries (together the ‘Group’) is the exploration and
development of precious and base metals. The Company’s shares are listed on the AIM of the London Stock Exchange and
the open market of the Frankfurt Stock Exchange. The Company is incorporated and domiciled in England.
The address of its registered office is Suite 1, 15 Ingestre Place, London, W1F 0DU.
2. Summary of significant Accounting Policies
The principal Accounting Policies applied in the preparation of these Consolidated Financial Statements are set out below.
These Policies have been consistently applied to all the periods presented, unless otherwise stated.
2.1. Basis of preparation of Financial Statements
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB) in conformity with the Companies Act 2006. The
Consolidated Financial Statements have also been prepared under the historical cost convention, except as modified for
assets and liabilities recognised at fair value on business combination.
The Financial Statements are presented in Pound Sterling rounded to the nearest pound.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the Accounting Policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Consolidated
Financial Statements are disclosed in Note 4.
2.2. New and amended standards
(a) New and amended standards mandatory for the first time for the financial periods beginning on or after 1 January 2021
The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended 31
December 2021 but did not result in any material changes to the financial statements of the Group or Company.
ii) New standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:
Standard
IFRS 3
IAS 37
IAS 16
Annual improvements
IAS 8
IAS 1
Impact on initial application
Reference to Conceptual Framework
Onerous contracts
Proceeds before intended use
2018-2020 Cycle
Accounting estimates
Classification of Liabilities as Current or Non-
Current.
Effective date
1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2023
1 January 2023
The Group is evaluating the impact of the new and amended standards above which are not expected to have a material
impact on the Group’s results or shareholders’ funds
2.3. Basis of Consolidation
The Consolidated Financial Statements consolidate the financial statements of the Company and its subsidiaries made up to
31 December. Subsidiaries are entities over which the Group has control. Control is achieved when the Group is exposed, or
has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the
Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee;
•
• Rights arising from other contractual arrangements; and
28
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
•
The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group. They are deconsolidated from the date that control ceases. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the period are included in the consolidated financial statements from the date the
Group gains control until the date the Group ceases to control the subsidiary.
Investments in subsidiaries are accounted for at cost less impairment within the parent company financial statements. Where
necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with
those used by other members of the Group. All significant intercompany transactions and balances between Group
enterprises are eliminated on consolidation.
2.4. Going concern
The Consolidated Financial Statements have been prepared on a going concern basis. Although the Group’s assets are not
generating revenues and an operating loss has been reported, the Directors are of the view that the Group has sufficient
funds to meet all committed and contractual expenditure within the next 12 months and to maintain good title to the exploration
licences. This will ensure they will still be in a strong financial position once they are able to re-commence exploration activity.
The Group’s business activities together with the additional factors likely to affect its future development, performance and
position are set out in the Chairman’s Report on pages 3-5. In addition, Note 3 to the Consolidated Financial Statements
includes the Group’s objectives, policies and processes for managing its capital; its financial risk management objectives;
details of its financial instruments and its exposure to market, credit and liquidity risk.
The Directors have a reasonable expectation that the Group and Company have sufficient resources to continue in the current
economic climate and for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in
preparing the Group and Company Financial Statements.
2.5. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors that makes strategic decisions.
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
2.6. Foreign currencies
(a) Functional and presentation currency
Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the ‘functional currency’). The functional currency of the UK parent
entity and UK subsidiary is Pound Sterling, the functional currency of the Finnish subsidiaries is Euros and the functional
currency of the Greenlandic subsidiaries is Danish Krone. The Financial Statements are presented in Pounds Sterling
which is the Company’s functional and Group’s presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions or valuation where such items are re-measured. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement.
(c) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
• assets and liabilities for each period end date presented are translated at the period-end closing rate;
•
income and expenses for each Income Statement are translated at average exchange rates (unless this average is
not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the dates of the transactions); and
• all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of
monetary items receivable from foreign subsidiaries for which settlement is neither planned nor likely to occur in the
29
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
foreseeable future, are taken to other comprehensive income. When a foreign operation is sold, such exchange
differences are recognised in the Income Statement as part of the gain or loss on sale.
2.7. Intangible assets
Exploration and evaluation assets
The Group recognises expenditure as exploration and evaluation assets when it determines that those assets will be
successful in finding specific mineral resources. Expenditure included in the initial measurement of exploration and evaluation
assets and which are classified as intangible assets relate to the acquisition of rights to explore, topographical, geological,
geochemical and geophysical studies, exploratory drilling, trenching, sampling and activities to evaluate the technical
feasibility and commercial viability of extracting a mineral resource. Capitalisation of pre-production expenditure ceases when
the mining property is capable of commercial production.
Exploration and evaluation assets are recorded and held at cost
Exploration and evaluation assets are not subject to amortisation, as such at the year-end all intangibles held have an
indefinite life, but are assessed annually for impairment. The assessment is carried out by allocating exploration and
evaluation assets to cash generating units (‘CGU’s’), which are based on specific projects or geographical areas. The CGU’s
are then assessed for impairment using a variety of methods including those specified in IFRS 6.
Whenever the exploration for and evaluation of mineral resources in cash generating units does not lead to the discovery of
commercially viable quantities of mineral resources and the Group has decided to discontinue such activities of that unit, the
associated expenditures are written off to the Income Statement.
Exploration and evaluation assets recorded at fair-value on business combination
Exploration assets which are acquired as part of a business combination are recognised at fair value in accordance with IFRS
3. When a business combination results in the acquisition of an entity whose only significant assets are its exploration asset
and/or rights to explore, the Directors consider that the fair value of the exploration assets is equal to the consideration. Any
excess of the consideration over the capitalised exploration asset is attributed to the fair value of the exploration asset.
2.8. Investments in subsidiaries
Investments in Group undertakings are stated at cost, which is the fair value of the consideration paid, less any impairment
provision.
2.9. Property, plant and equipment
Property, Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is provided on all property, plant and equipment to write off the cost less estimated residual value of each asset
over its expected useful economic life on a straight line basis at the following annual rates:
Office Equipment – 5 years
Machinery and Equipment – 5 to 15 years
Software – 2 years
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged
to the income statement during the financial period in which they are incurred.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount. If an impairment review is conducted following an indicator of impairment, assets
which are not able to be assessed for impairment individually are assessed in combination with other assets within a cash
generating unit.
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within
‘Other (losses)/gains’ in the Income Statement.
2.10.
Impairment of non-financial assets
Assets that have an indefinite useful life, for example, intangible assets not ready to use, and goodwill, are not subject to
amortisation and are tested annually for impairment. Property, plant and equipment is reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
30
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets
that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
2.11.
Financial assets
(a) Classification
The Group classifies its financial assets at amortised cost and at fair value through the profit or loss. The classification depends
on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets
at initial recognition.
(b) Recognition and measurement
Amortised cost
Regular purchases and sales of financial assets are recognised on the trade date at cost – the date on which the Group
commits to purchasing or selling the asset. Financial assets are derecognized when the rights to receive cash flows from the
assets have expired or have been transferred, and the Group has transferred substantially all of the risks and rewards of
ownership.
Fair value through the profit or loss
Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at FVTPL.The
Group holds equity instruments that are classified as FVTPL as these were acquired principally for the purpose of selling in
the near term.
Financial assets at FTVPL, are measured at fair value at the end of each reporting period, with any fair value gains or losses
recognised in profit or loss. Fair value is determined by using market observable inputs and data as far as possible. Inputs
used in determining fair value measurements are categorised into different levels based on how observable the inputs used
in the valuation technique utilised are (the ‘fair value hierarchy’):
- Level 1: Quoted prices in active markets for identical items (unadjusted)
- Level 2: Observable direct or indirect inputs other than Level 1 inputs
- Level 3: Unobservable inputs (i.e. not derived from market data).
The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect
on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur.
The Group measures its investments in quoted shares using the quoted market price.
(c) Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Group expects to receive, discounted at an approximation of the original EIR. The expected cash
flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
For trade receivables (not subject to provisional pricing) and other receivables due in less than 12 months, the Group applies
the simplified approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Group does not track changes in credit
risk, but instead, recognises a loss allowance based on the financial asset’s lifetime ECL at each reporting date.
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases,
the Group may also consider a financial asset to be in default when internal or external information indicates that the Group
is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by
the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows
and usually occurs when past due for more than one year and not subject to enforcement activity.
31
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit impaired. A financial
asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the
financial asset have occurred.
(d) Derecognition
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and
the sum of the consideration received and receivable is recognised in profit or loss. This is the same treatment for a financial
asset measured at FVTPL.
2.12.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial
liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable
transaction costs. The Group’s financial liabilities include trade and other payables and loans.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial
instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by
IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss and other
comprehensive income.
Trade and other payables
After initial recognition, trade and other payables are subsequently measured at amortised cost using the EIR method. Gains
and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are
derecognised, as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss and other
comprehensive income.
Derecognition
A financial liability is derecognised when the associated obligation is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit
or loss and other comprehensive income.
Liabilities within the scope of IFRS 9 are classified as financial liabilities at fair value through profit and loss or other liabilities,
as appropriate.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Financial liabilities included in trade and other payables are recognised initially at fair value and subsequently at amortised
cost.
2.13.
Leases
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
•
Fixed payments, less any lease incentives receivable;
32
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
• Variable lease payment that are based on an index or a rate, initially measured using the index or the rate as at the
commencement date;
The exercise price of a purchase option; and
•
• Payment of penalties for terminating the lease.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the
lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary
to obtain an asset of similar value to the right-ofuse asset in a similar economic environment with similar terms, security and
conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each
period.
Assets obtained under finance leases are depreciated over their useful lives.
Rent payable under operating leases on which the short term exemption has been taken, less any lease incentives received,
is charged to the income statement on a straight-line basis over the term of the relevant lease except where another more
systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
2.14.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
2.15.
Equity
Equity comprises the following:
•
•
•
“Share capital” represents the nominal value of the Ordinary shares;
“Share Premium” represents consideration less nominal value of issued shares and costs directly attributable to
the issue of new shares;
“Other reserves” represents the merger reserve, foreign currency translation reserve, redemption reserve and
share option reserve where;
o
o
o
o
o
“Merger reserve” represents the difference between the fair value of an acquisition and the nominal
value of the shares allotted in a share exchange;
“Foreign currency translation reserve” represents the translation differences arising from translating the
financial statement items from functional currency to presentational currency;
“Reverse acquisition reserve” represents a non-distributable reserve arising on the acquisition of
Finland Investments Limited;
“Redemption reserve” represents a non-distributable reserve made up of share capital;
“Share option reserve" represents share options awarded by the group;
•
“Retained earnings” represents retained losses.
2.16.
Share capital, share premium and deferred shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity, as a deduction, net of tax, from the proceeds provided there is sufficient premium available. Should sufficient
premium not be available placing costs are recognised in the Income Statement.
Deferred shares are classified as equity. Deferred shares have no rights to receive dividends, or to attend or vote at general
meetings of the Company and are only entitled to a return of capital after payment to holders of new ordinary shares of
£100,000 per each share held.
2.17.
Share based payments
The Group operates a number of equity-settled, share-based schemes, under which the Group receives services from
employees or third party suppliers as consideration for equity instruments (options and warrants) of the Group. The fair value
of the third party suppliers’ services received in exchange for the grant of the options is recognised as an expense in the
Income Statement or charged to equity depending on the nature of the service provided. The value of the employee services
received is expensed in the Income Statement and its value is determined by reference to the fair value of the options granted:
•
•
•
including any market performance conditions;
excluding the impact of any service and non-market performance vesting conditions (for example, profitability or sales
growth targets, or remaining an employee of the entity over a specified time period); and
including the impact of any non-vesting conditions (for example, the requirement for employees to save).
The fair value of the share options and warrants are determined using the Black Scholes valuation model.
33
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total
expense or charge is recognised over the vesting period, which is the period over which all of the specified vesting conditions
are to be satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are
expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if
any, in the Income Statement or equity as appropriate, with a corresponding adjustment to a separate reserve in equity.
When the options are exercised, the Group issues new shares. The proceeds received, net of any directly attributable
transaction costs, are credited to share capital (nominal value) and share premium when the options are exercised.
2.18.
Taxation
No current tax is yet payable in view of the losses to date.
Deferred tax is recognised for using the liability method in respect of temporary differences arising from differences between
the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in
the computation of taxable profit. However, deferred tax liabilities are not recognised if they arise from the initial recognition
of goodwill; deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.
In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets (including
those arising from investments in subsidiaries), are recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised.
Deferred income tax assets are recognised on deductible temporary differences arising from investments in subsidiaries only
to the extent that it is probable the temporary difference will reverse in the future and there is sufficient taxable profit available
against which the temporary difference can be used.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in except where the Group is
able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current
tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on
either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Deferred tax is calculated at the tax rates (and laws) that have been enacted or substantively enacted by the statement of
financial position date and are expected to apply to the period when the deferred tax asset is realised or the deferred tax
liability is settled.
Deferred tax assets and liabilities are not discounted.
3. Financial risk management
3.1. Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (foreign currency risk, price risk and interest rate
risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the Group’s financial performance. None of these risks are
hedged.
Risk management is carried out by the London based management team under policies approved by the Board of Directors.
Market risk
(a) Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily
with respect to the Euro, Danish Krone and the British Pound. Foreign exchange risk arises from future commercial
transactions, recognised assets and liabilities and net investments in foreign operations.
The Group negotiates all material contracts for activities in relation to its subsidiaries in either British Pounds, Euros, USD or
Danish Krone. The Group does not hedge against the risks of fluctuations in exchange rates. The volume of transactions is
not deemed sufficient to enter into forward contracts as most of the foreign exchange movements result from the retranslation
of inter company loans. The Group has sensitised the figures for fluctuations in foreign exchange rates, as the Directors
acknowledge that, at the present time, the foreign exchange retranslations have resulted in rather higher than normal
34
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
fluctuations which are separately disclosed, and is predominantly due to the exceptional nature of the Euro exchange rate in
the last two years in the current economic climate. Further detail is in note 3.3
(b) Price risk
The Group is not exposed to commodity price risk as a result of its operations, which are still in the exploration phase. The
Directors will revisit the appropriateness of this policy should the Group’s operations change in size or nature.
The Group has exposure to equity securities price risk, as it holds listed equity investments.
Credit risk
Credit risk arises from cash and cash equivalents as well as outstanding receivables. Management does not expect any
losses from non-performance of these receivables. The amount of exposure to any individual counter party is subject to a
limit, which is assessed by the Board.
The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.
Liquidity risk
In keeping with similar sized mineral exploration groups, the Group’s continued future operations depend on the ability to
raise sufficient working capital through the issue of equity share capital or debt. The Directors are reasonably confident that
adequate funding will be forthcoming with which to finance operations. Controls over expenditure are carefully managed.
With exception to deferred taxation, financial liabilities are all due within one year.
3.2. Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, to enable
the Group to continue its exploration and evaluation activities, and to maintain an optimal capital structure to reduce the cost
of capital. In order to maintain or adjust the capital structure, the Group may adjust the issue of shares or sell assets to reduce
debts.
At 31 December 2021 the Group had borrowings of £nil (31 December 2020: £nil) and defines capital based on the total
equity of the Company. The Group monitors its level of cash resources available against future planned exploration and
evaluation activities and may issue new shares in order to raise further funds from time to time.
Given the Group’s level of debt versus its cash at bank and cash equivalents, the gearing ratio is immaterial.
3.3. Sensitivity analysis
On the assumption that all other variables were held constant, and in respect of the Group and the Company’s expenses the
potential impact of a 10% increase/decrease in the UK Sterling:Euro and UK Sterling:DKK Foreign exchange rates on the
Group’s loss for the period and on equity is as follows:
Potential impact on Euro
expenses: 2021
(Loss)/profit before tax for the year ended
31 December 2021
Equity before tax for the year ended
31 December 2021
Group
Company
Group
Company
Increase/(decrease)
foreign exchange rate
in
10%
-10%
£
(2,500,119)
(2,482,004)
£
(3,486,819)
(3,486,819)
£
32,660,976
30,817,450
£
37,273,943
37,273,943
Potential impact on DKK
expenses: 2021
Loss before tax for the year ended
31 December 2021
Equity before tax for the year ended
31 December 2021
Group
Company
Group
Company
Increase/(decrease)
foreign exchange rate
in
10%
-10%
£
(2,599,449)
(2,382,675)
£
(3,486,819)
(3,486,819)
£
33,704,713
29,773,713
£
37,273,943
37,273,943
35
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
4. Critical accounting estimates and judgements
The preparation of the Financial Statements in conformity with IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amount of expenses during the period. Actual results may vary from the
estimates used to produce these Financial Statements.
Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
Items subject to such estimates and assumptions, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial years, include but are not limited to:
Impairment of intangible assets – exploration and evaluation costs
Exploration and evaluation costs have a carrying value at 31 December 2021 of £28,111,021 (2020: £26,768,227) Such
assets have an indefinite useful life as the Group has a right to renew exploration licences and the asset is only amortised
once extraction of the resource commences. Management tests for impairment annually whether exploration projects have
future economic value in accordance with the accounting policy stated in Note 2.7. Each exploration project is subject to an
annual review by either a consultant or senior company geologist to determine if the exploration results returned during the
period warrant further exploration expenditure and have the potential to result in an economic discovery. This review takes
into consideration long term metal prices, anticipated resource volumes and supply and demand outlook. In the event that a
project does not represent an economic exploration target and results indicate there is no additional upside a decision will be
made to discontinue exploration; an impairment charge will then be recognised in the Income Statement.
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic
lives and residual values of the assets, taking into account that the assets are not used throughout the whole year due to the
seasonality of the licence locations. The useful economic lives and residual values are re-assessed annually. They are
amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets.
See note 6 for the carrying amount of the property plant and equipment and note 2.9 for the useful economic lives for each
class of assets.
Share based payment transactions
The Group has made awards of options and warrants over its unissued share capital to certain Directors as part of their
remuneration package. Certain warrants have also been issued to shareholders as part of their subscription for shares and
suppliers for various services received. No share options or warrants were issued in the current year.
The valuation of these options and warrants involves making a number of critical estimates relating to price volatility, future
dividend yields, expected life of the options and forfeiture rates. These assumptions have been described in more detail in
Note 16.
5. Segment information
Management has determined the operating segments based on reports reviewed by the Board of Directors that are used to
make strategic decisions. During the period the Group had interests in three geographical segments; the United Kingdom,
Greenland and Finland. Activities in the UK are mainly administrative in nature whilst the activities in Greenland and Finland
relate to exploration and evaluation work.
The Group had no turnover during the period.
2021
Revenue
Administrative expenses
Foreign exchange
Finance expense
Other income
Loss before tax per reportable segment
Additions to PP&E
Additions to intangible asset
Reportable segment assets
Greenland
£
-
550,576
31,404
2,055
30,105
1,291,644
3,604
2,668,436
25,257,377
36
Finland
£
-
88,335
-
1,795
155,540
90,575
-
218,674
4,777,642
UK
£
-
2,023,135
(13,169)
401
1,500
1,324,614
22,433
-
2,620,650
Total
£
-
2,662,046
18,235
4,251
187,145
2,706,833
26,037
2,887,110
32,655,669
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
2020
Revenue
Administrative expenses
Foreign exchange
Finance income
Other income
Loss before tax per reportable segment
Tax refund
Additions to PP&E
Additions to intangible asset
Reportable segment assets
6. Property, plant and equipment
Group
Cost
As at 1 January 2020
Exchange Differences
Additions
Greenland
£
-
616,555
49,380
3,511
23,613
632,639
-
226,523
2,049,686
25,088,651
Finland
£
-
81,831
-
(17)
13,336
39,760
-
-
421,450
4,903,362
UK
£
-
1,788,719
15,638
(1,526)
-
1,815,164
229,963
17,331
-
6,856,661
Total
£
-
2,487,105
65,018
1,968
36,949
2,487,563
229,963
243,854
2,471,136
36,848,674
Right of
use assets
£
Software
£
Machinery &
equipment
Office
equipment
£
£
Total
£
182,542
-
-
37,093
-
9,221
3,255,384
192,414
226,523
52,931
182
8,110
3,527,950
192,596
243,854
As at 31 December 2020
182,542
46,314
3,674,321
61,223
3,964,400
As at 1 January 2021
Exchange Differences
Additions
Disposals
As at 31 December 2021
Depreciation
As at 1 January 2020
Charge for the year
Exchange differences
182,542
-
-
(182,542)
46,314
-
7,503
-
3,674,321
(224,094)
3,604
(250,093)
61,223
2
14,930
-
3,964,400
(224,092)
26,037
(432,635)
-
53,817
3,203,738
76,155
3,333,710
40,565
81,130
-
25,272
11,089
-
665,389
502,650
41,232
28,301
11,716
145
759,527
606,585
41,377
As at 31 December 2020
121,695
36,361
1,209,271
40,162
1,407,489
As at 1 January 2021
Charge for the year
Disposals
Exchange differences
121,695
60,847
(182,542)
-
36,361
9,020
-
-
1,209,271
377,068
(70,848)
(83,481)
40,162
13,778
-
-
1,407,489
460,713
(253,390)
(83,481)
As at 31 December 2021
-
45,381
1,432,010
53,940
1,531,331
Net book value as at 31 December 2020
60,847
9,953
2,465,050
21,061
2,556,911
Net book value as at 31 December 2021
-
8,436
1,771,728
22,215
1,802,379
Depreciation expense of £460,713 (31 December 2020: £606,585) for the Group has been charged in administration
expenses.
37
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Company
Cost
As at 1 January 2020
Additions
As at 31 December 2020
As at 1 January 2021
Additions
Disposals
As at 31 December 2021
Depreciation
As at 1 January 2020
Charge for the year
As at 31 December 2020
As at 1 January 2021
Charge for the year
Disposals
As at 31 December 2021
Net book value as at 31 December 2020
Net book value as at 31 December 2021
Right of
use assets
Software
Office
equipment
£
£
£
Total
£
182,542
-
37,093
9,221
45,832
8,110
265,467
17,331
182,542
46,314
53,942
282,798
182,542
-
(182,542)
46,314
7,503
-
53,942
14,930
-
282,798
22,433
(182,542)
-
53,817
68,873
122,689
40,565
25,272
21,791
87,628
81,130
11,089
11,088
103,307
121,695
36,361
32,879
190,935
121,695
60,847
(182,542)
36,361
9,020
-
32,879
13,778
-
190,935
83,645
(182,542)
-
45,381
46,657
92,038
60,847
-
9,953
8,436
21,062
91,862
22,215
30,651
Depreciation expense of £83,645 (31 December 2020: £103,307) for the Company has been charged in administration
expenses.
7.
Intangible assets
Intangible assets comprise exploration and evaluation costs. Exploration and evaluation assets are all internally generated.
These are measured at cost and have an indefinite asset life. Once the pre-production phase has been entered into, the
exploration and evaluation assets will cease to be capitalised and commence amortisation.
Group
31 December
31 December
Exploration & Evaluation Assets - Cost and Net Book Value
Cost
As at 1 January
Additions
Exchange differences
As at year end
Provision for impairment
As at 1 January
Impairments
As at year end
Net book value
38
2021
£
35,641,812
2,887,110
(1,732,748)
36,796,174
8,873,585
-
8,873,585
27,922,589
2020
£
32,012,092
2,471,136
1,158,584
35,641,812
8,873,585
-
8,873,585
26,768,227
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
The Dundas project in Greenland has a current JORC compliant mineral resource of 117 million tonnes at 6.1% ilmenite (in-
situ) and has been confirmed as the highest-grade mineral sand ilmenite project globally. Exploration projects in Finland and
the Disko project in Greenland are at an early stage of development and there are no JORC (Joint Ore Reserves Committee)
or non-JORC compliant resource estimates available to enable value in use calculations to be prepared. The Directors
therefore undertook an assessment of the following areas and circumstances that could indicate the existence of impairment:
• The Group’s right to explore in an area has expired, or will expire in the near future without renewal;
• No further exploration or evaluation is planned or budgeted for;
• A decision has been taken by the Board to discontinue exploration and evaluation in an area due to the absence of a
commercial level of reserves; or
• Sufficient data exists to indicate that the book value will not be fully recovered from future development and production.
Following their assessment, the Directors concluded that no impairment charge was required at 31 December 2021.
8.
Investments in subsidiary undertakings
Shares in Group Undertakings
At beginning of period
At end of period
Loans to Group undertakings
Total
Company
31 December
2021
31 December
2020
£
£
558,342
558,342
558,342
558,342
33,950,980
32,609,750
34,509,322
33,168,092
Investments in Group undertakings are stated at cost, which is the fair value of the consideration paid, less any impairment
provision.
Subsidiaries
Country of
incorporation
and place of
business
Proportion of
ordinary
shares held
by parent (%)
Proportion of
ordinary shares
held by the
Group (%)
Nature of
business
Name of subsidiary
Registered office address
Centurion Mining
Limited
Suite 1, 15 Ingestre Place,
London, England, W1F 0DU
Centurion Universal
Limited
Suite 1, 15 Ingestre Place,
London, England, W1F 0DU
Finland Investments
Limited
Suite 1, 15 Ingestre Place,
London, England, W1F 0DU
FinnAust Mining
Finland Oy
FinnAust Mining
Northern Oy
Kummunkatu 23,
FI-83500 Outokumpu, Finland
Kummunkatu 23,
FI-83500 Outokumpu, Finland
Finland
United
Kingdom
United
Kingdom
United
Kingdom
Finland
100%
100%
Dormant
100%
100%
Holding
100%
100%
Holding
Nil
Nil
100%
Exploration
100%
Exploration
Disko Exploration
Limited
Suite 1, 15 Ingestre Place,
London, England, W1F 0DU
United
Kingdom
100%
100%
Exploration
Dundas Titanium A/S
c/o Nuna Advokater ApS,
Qullilerfik 2, 6, Postboks 59,
Nuuk 3900, Greenland
All subsidiary undertakings are included in the consolidation.
Greenland
Nil
100%
Exploration
39
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
The proportion of the voting rights in the subsidiary undertakings held directly by the parent company do not differ from the
proportion of ordinary shares held.
9. Trade and other receivables
Current
Trade receivables
Amounts owed by Group undertakings
Prepayments
VAT receivable
Other receivables
Total
Group
Company
31 December
2021
31 December
2020
31 December
2021
31 December
2020
£
£
4,300
317,502
£
4,306
£
4,620
-
75,187
82,858
66,564
-
484,476
172,400
99,353
794,532
292,509
70,239
-
5,160
96,040
737,059
237,966
228,909
1,503,896
564,181
1,248,085
The fair value of all receivables is the same as their carrying values stated above.
At 31 December 2021 all trade and other receivables were fully performing. No ageing analysis is considered necessary as
the Group has no significant trade receivable receivables which would require such an analysis to be disclosed under the
requirements of IFRS 7.
The carrying amounts of the Group and Company’s trade and other receivables are denominated in the following currencies:
UK Pounds
Euros
Danish Krone
2021
£
94,946
106,173
27,790
2020
£
1,039,017
71,770
393,109
Group
Company
31 December
31 December
31 December
31
December
2020
£
2021
£
564,181
-
-
1,248,085
-
-
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.
The Group does not hold any collateral as security.
228,909
1,503,896
564,181
1,248,085
10. Cash and cash equivalents
Group
Company
31 December
31 December
31 December
31 December
2021
£
2020
£
2021
£
2020
£
Cash at bank and in hand
2,701,792
5,942,848
2,534,964
5,649,030
All of the UK entities cash at bank is held with institutions with an AA- credit rating. The Finland and Greenland entities cash
at bank is held with institutions whose credit rating is unknown.
40
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
The carrying amounts of the Group and Company’s cash and cash equivalents are denominated in the following currencies:
UK Pounds
Euros
Danish Krone
11. Trade and other payables
Trade payables
Accrued expenses
Other creditors
Group
Company
31 December
31 December
31 December
31 December
2021
£
2020
£
2021
£
2020
£
2,571,644
5,668,404
2,534,964
5,649,030
85,168
44,980
240,283
34,161
-
-
-
-
2,701,792
5,942,848
2,534,964
5,649,030
Group
Company
31 December
31 December
31 December
31 December
2021
£
409,282
131,048
90,503
2020
£
377,026
350,576
452,092
2021
£
250,928
60,676
53,571
2020
£
78,448
83,764
13,716
630,833
1,179,694
365,175
175,928
Trade payables include amounts due of £225,538 in relation to exploration and evaluation activities.
The carrying amounts of the Group and Company’s trade and other payables are denominated in the following currencies:
UK Pounds
Euros
Danish Krone
Group
Company
31 December
31 December
31 December
31 December
2021
£
351,688
173,781
105,364
2020
£
231,456
529,326
418,912
2021
£
365,175
-
-
2020
£
175,928
-
-
630,833
1,179,694
365,175
175,928
12. Deferred tax
An analysis of deferred tax liabilities is set out below.
Group
2021
£
Company
2020
£
2021
£
2020
£
Deferred tax liabilities
- Deferred tax liability after more than 12 months
496,045
496,045
Deferred tax liabilities
496,045
496,045
-
-
-
-
The Group has additional capital losses of approximately £8,704,033 (2020: £8,793,930) and other losses of approximately
£7,234,636 (2020: £6,719,484) available to carry forward against future taxable profits. No deferred tax asset has been
recognised in respect of these tax losses because of uncertainty over the timing of future taxable profits against which the
losses may be offset.
41
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
13. Financial Instruments by Category
Group
31 December 2021
31 December 2020
Assets per Statement of Financial Performance
receivables
Trade and other
prepayments)
Financial assets at fair value through profit or loss
Cash and cash equivalents
(excluding
Amortised
cost
£
153,722
-
2,701,792
2,855,514
FVTPL
£
-
-
-
-
Total
£
Amortised
cost
£
FVTPL
£
153,722
-
2,701,792
1,404,543
5,942,848
-
- 100,000
-
Total
£
1,404,543
100,000
5,942,848
2,855,514
7,347,391 100,000
7,447,391
Liabilities per Statement of Financial
Performance
Trade and other payables (excluding non-
financial liabilities)
Finance lease liability
31 December 2021
31 December 2020
Amortised
cost
Total
Amortised
cost
Total
£
£
£
£
630,833
-
630,833
630,833
-
630,833
1,179,690 1,179,690
62,220
1,241,910 1,241,910
62,220
Company
Assets
per
Financial Performance
Statement
of
Trade and other receivables
(excluding prepayments)
Financial assets at fair value
through profit or loss
Cash and cash equivalents
31 December 2021
31 December 2020
Amortised
cost
£
493,492
-
2,534,964
3,028,456
FVTPL
Total
Amortised cost
FVTPL
Total
£
-
£
£
493,492
1,152,045
£
-
-
-
- 2,534,964
- 3,028,456
-
5,649,030
6,801,075
100,000
-
100,000
£
1,152,045
100,000
5,649,030
6,901,075
Liabilities per Statement of
Financial Performance
Trade and other payables
non-financial
(excluding
liabilities)
Finance lease liability
31 December 2021
31 December 2020
At amortised
cost
Total
At amortised
cost
£
£
£
Total
£
365,175
365,175
175,928
175,928
-
-
365,175
365,175
62,220
238,148
62,220
238,148
42
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
14. Share capital and premium
Group and Company
Number of shares
Share capital
Ordinary shares
Deferred shares
Deferred A shares
Total
31 December 2021
31 December 2020
972,857,613
971,629,460
31 December
2021
97,285
31 December
2020
97,162
558,104,193
558,104,193
558,104
558,104
68,289,656,190
68,289,656,190
6,828,966
6,828,966
69,820,617,996
69,819,389,843
7,484,355
7,484,232
Issued at 0.01 pence per share
Number of
Ordinary shares
Share capital
Share premium
£
£
Total
£
As at 1 January 2020
969,969,397
96,996
55,463,656
55,560,652
Issue of new shares – 10 November 2020
As at 31 December 2020
As at 1 January 2021
Exercise of warrants – 23 December 2021
1,660,063
971,629,460
971,629,460
1,228,153
166
97,162
97,162
123
156,378
156,544
55,620,034
55,717,196
55,620,034
55,717,196
85,848
85,971
As at 31 December 2021
972,857,613
97,285
55,705,882
55,803,167
Deferred Shares (nominal value of 0.1 pence per share)
As at 1 January 2020
As at 31 December 2020
As at 1 January 2021
As at 31 December 2021
Deferred A Shares (nominal value of 0.1 pence per share)
As at 1 January 2020
As at 31 December 2020
As at 1 January 2021
As at 31 December 2021
Number of Deferred
shares
558,104,193
558,104,193
558,104,193
558,104,193
Number of Deferred A
shares
68,289,656,190
68,289,656,190
68,289,656,190
68,289,656,190
Share capital
£
558,104
558,104
558,104
558,104
Share capital
£
6,828,966
6,828,966
6,828,966
6,828,966
On 23 December 2021, the Company issued and allotted 1,228,153 new Ordinary Shares at a price of 7 pence per share as
an exercise of warrants.
43
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
15. Share based payments
The Company has established a share option scheme for Directors, employees and consultants to the Group. Share options
and warrants outstanding and exercisable at the end of the period have the following expiry dates and exercise prices:
Grant Date
Expiry Date
Exercise price in £ per share
17 December 2016
17 December 2021
9 June 2017
23 July 2019
23 July 2019
23 July 2019
10 July 2020
10 July 2020
9 June 2022
23 July 2023
23 July 2023
23 July 2023
30 July 2025
30 July 2025
15 February 2021
15 February 2021
15 February 2021
15 February 2025
15 February 2025
15 February 2025
0.07
0.165
0.10
0.15
0.20
0.10
0.15
0.15
0.20
0.25
Options & Warrants
31 December
2021
31 December
2020
-
1,025,000
5,200,000
5,200,000
5,600,000
5,150,000
2,100,000
11,000,000
11,000,000
11,000,000
1,228,153
1,025,000
5,200,000
5,200,000
5,600,000
5,150,000
2,100,000
-
-
-
57,275,000
25,503,153
The Company and Group have no legal or constructive obligation to settle or repurchase the options or warrants in cash.
The fair value of the share options and warrants was determined using the Black Scholes valuation model. The parameters
used are detailed below:
2017 Options
2019 Options
2019 Options
2019 Options
Granted on:
Life (years)
Share price (pence per share)
Risk free rate
Expected volatility
Expected dividend yield
Marketability discount
Total fair value (£000)
Granted on:
Life (years)
Share price (pence per share)
Risk free rate
Expected volatility
Expected dividend yield
Marketability discount
Total fair value (£000)
Granted on:
Life (years)
Share price (pence per share)
Risk free rate
Expected volatility
Expected dividend yield
Marketability discount
Total fair value (£000)
9/6/2017
5 years
15.5p
0.56%
31.83%
-
20%
34
23/7/2019
4 years
7.45p
0.5%
21.64%
-
20%
31
23/7/2019
4 years
7.45p
0.5%
21.64%
-
20%
5
23/7/2019
4 years
7.45p
0.5%
21.64%
-
20%
1
2020 Options
2020 Options
2021 Options
2021 Options
10/7/2020
5 years
6.16p
0.5%
30.24%
-
20%
5
15/2/2021
4 years
9.20p
0.5%
61.47%
-
20%
270
15/2/2021
4 years
9.20p
0.5%
61.47%
-
20%
213
10/7/2020
5 years
6.16p
0.5%
30.24%
-
20%
31
2021 Options
15/2/2021
4 years
9.20p
0.5%
30.24%
-
20%
173
44
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
The expected volatility of the options is based on historical volatility for the six months prior to the date of granting.
The risk-free rate of return is based on zero yield government bonds for a term consistent with the option life.
A reconciliation of options and warrants granted over the year to 31 December 2021 is shown below:
Outstanding at beginning of period
Expired
Exercised
Granted
Outstanding as at period end
Exercisable at period end
2021
2020
Weighted
average
exercise price
(£)
0.1556
-
0.0700
0.2000
0.1830
0.1830
Number
25,503,153
-
(1,228,153)
33,000,000
57,275,000
57,275,000
Weighted
average
exercise price
(£)
0.1898
-
-
0.125
0.1556
0.1556
Number
34,303,153
(16,050,000)
-
7,250,000
25,503,153
25,503,153
2021
2020
of
Range
exercise
prices (£)
Weighted
average
exercise
price (£)
Number of
shares
Weighted
average
remaining
life
expected
(years)
Weighted
average
remaining
life
contracted
(years)
Weighted
average
exercise
price (£)
Number of
shares
Weighted
average
remaining
life
expected
(years)
Weighted
average
remaining
life
contracted
(years)
0 – 0.05
-
-
0.05 – 2.00
0.1830
57,275,000
-
3.18
-
3.18
-
-
0.1574
25,503,153
-
3.68
-
3.68
During the period there was a charge of £655,870 (2020: £35,872) in respect of share options.
16. Other reserves
Group
Foreign
currency
translation
reserve
Reverse
acquisition
reserve
Redemption
reserve
£
£
£
Merger
reserve
£
Share
option
reserve
£
Total
£
At 31 December 2020
166,000
1,205,544
(8,071,001)
364,630
114,108
(6,220,719)
Currency translation differences
Expired Options
Issued Options
-
-
-
(1,640,140)
-
-
-
-
-
-
-
-
-
(8,285)
(1,640,140)
(8,285)
655,870
655,870
At 31 December 2021
166,000
(434,596)
(8,071,001)
364,630
761,693
(7,213,274)
45
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
17. Employee benefit expense
Group
Company
Year ended
31 December
2021
Year ended
31 December
2020
Year ended
31 December
2021
Year ended
31 December
2020
Staff costs (excluding Directors)
£
£
£
£
Salaries and wages
Social security costs
Retirement benefit costs
Other employment costs
369,708
99,068
2,049
27,425
498,250
597,146
69,984
6,621
523
674,274
360,134
64,356
2,049
2,093
428,632
317,044
40,011
6,098
523
363,676
The average monthly number of employees for the Group during the year was 11 (year ended 31 December 2020: 13) and
the average monthly number of employees for the Company was 7 (year ended 31 December 2020: 9).
Of the above Group staff costs, £245,743 (year ended 31 December 2020: £455,385) has been capitalised in accordance
with IFRS 6 as exploratory related costs and are shown as an intangible addition in the year.
18. Directors' remuneration
Executive Directors
Roderick McIllree
Bo Stensgaard
Non-executive Directors
Ian Henderson 1
Johannus Hansen 2
Peter Waugh
Michael Hutchinson
(1) Resigned on 5 January 2021
(2) Appointed on 15 March 2021
Year ended 31 December 2021
Short-term
benefits
Post-
employment
benefits
Share based
payments
£
£
£
Total
£
196,534
221,800
18,500
-
-
238,498
215,034
460,298
12,879
23,309
24,000
38,750
-
-
533
-
-
-
-
-
12,879
23,309
24,533
38,750
517,272
19,033
238,498
774,803
Of the above Group directors’ remuneration, £338,296 (31 December 2020: £123,683) has been capitalised in accordance
with IFRS 6 as exploratory related costs and are shown as an intangible addition in the year.
The above figures do not include employer portion of NIC. These have been included in note 17.
46
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Executive Directors
Roderick McIllree
Bo Stensgaard
Non-executive Directors
Ian Henderson
Peter Waugh
Michael Hutchinson
Year ended 31 December 2020
Short-term
benefits
Post-
employment
benefits
£
£
53,391
106,250
38,750
18,600
90,375
2,421
-
-
867
-
307,366
3,288
Share based
payments
£
-
-
-
-
-
-
Total
£
55,812
106,250
38,750
19,467
90,375
310,654
Details of fees paid to Companies and Partnerships of which the Directors detailed above are Directors and Partners have
been disclosed in Note 25.
The remuneration of Directors and key executives is determined by the remuneration committee having regard to the
performance of individuals and market trends.
19. Finance income
Group
Year ended
Year ended
31 December
31 December
2021
£
(4,251)
(4,251)
2020
£
1,968
1,968
Group
Year ended
Year ended
31 December
31 December
2021
£
46,072
46,072
2020
£
49,360
49,360
Interest income/(expense) from cash and cash equivalents
Finance Income/(expense)
20. Other gain/(losses)
Other gains
Other gain/(losses)
21. Income tax expense
No charge to taxation arises due to the losses incurred.
The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the weighted average tax
rate applicable to the losses of the consolidated entities as follows:
47
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Loss before tax
Tax at the applicable rate of 20.68% (2020: 21.62%)
Effects of:
Expenditure not deductible for tax purposes
Depreciation in excess of/(less than) capital allowances
Net tax effect of losses carried forward
Tax (charge)/refund
Group
Year ended
31 December
2021
Year ended
31 December
2020
£
£
(2,491,062)
(2,487,562)
(515,152)
(537,811)
99,228
89,897
326,027
-
153,133
79,656
75,059
229,963
The weighted average applicable tax rate of 20.68% (2020: 21.62%) used is a combination of the 19% standard rate of
corporation tax in the UK, 20% Finnish corporation tax and 30% Greenlandic corporation tax.
The Group has a potential deferred income tax asset of approximately £1,285,093 (2020: £959,066) due to tax losses
available to carry forward against future taxable profits. The Company has tax losses of approximately £7,234,636 (2020:
£6,719,484) available to carry forward against future taxable profits. No deferred tax asset has been recognised on
accumulated tax losses because of uncertainty over the timing of future taxable profits against which the losses may be offset.
22. Earnings per share
Group
The calculation of the total basic earnings per share of (0.28) pence (31 December 2020: (0.23) pence) is based on the loss
attributable to equity holders of the parent company of £2,706,833 (31 December 2020: £2,257,600) and on the weighted
average number of ordinary shares of 971,659,743 (31 December 2020: 970,205,253) in issue during the year.
In accordance with IAS 33, basic and diluted earnings per share are identical for the Group as the effect of the exercise of
share options would be to decrease the earnings per share. Details of share options that could potentially dilute earnings per
share in future periods are set out in Note 15.
23. Expenses by nature
Cost of Sales
Exploitation licence fees
Total cost of sales
Administrative expenses
Employee expenses
Establishment expenses
Travel & subsistence
Professional & consultancy fees
IT & Software
Insurance
Depreciation
Share Option expense
Payments to acquire royalties
Other expenses
Total administrative expenses
48
Group
Year ended
31 December
2021
£
Year ended
31 December
2020
£
199,844
199,844
438,982
89,137
38,082
692,470
19,612
75,548
460,713
655,870
-
191,632
-
-
367,891
72,010
111,954
970,021
20,366
73,192
606,585
35,872
200,000
52,929
2,662,046
2,510,820
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Services provided by the Company’s auditor and its associates
During the year, the Group (including overseas subsidiaries) obtained the following services from the Company’s auditors
and its associates:
Fees payable to the Company’s auditor and its associates for the audit of the Parent
Company and Consolidated Financial Statements
Fees payable to the Company’s auditor for other services
Group
Year ended
31 December
Year ended 31
December
2021
£
58,004
11,385
2020
£
69,375
47,540
24. Commitments
License commitments
Bluejay now owns 11 mineral exploration licenses and one exploitation licence in Greenland. Licence 2015/08, 2020/114 and
2021/08 is a part of the Dundas project and licences 2011/31, 2012/29, 2017/01, 2018/16, 2019/116, 2020/03, 2020/06,
2020/10 and 2020/22 are part of the Disko projects in Greenland. These licences include commitments to pay annual licence
fees and minimum spend requirements.
As at 31 December 2021 these are as follows:
Group
Not later than one year
Later than one year and no later than five years
Total
25. Related party transactions
Loans to Group undertakings
Group
Minimum
spend
requirement
£
Total
£
1,900,420
2,028,733
24,546,462 24,845,723
License
fees
£
128,313
299,261
427,574
26,446,882 26,874,456
Amounts receivable as a result of loans granted to subsidiary undertakings are as follows:
Finland Investments Ltd
FinnAust Mining Finland Oy
Centurion Mining Limited
Dundas Titanium A/S
Disko Exploration Limited
At 31 December (Note 8)
Company
31 December
2021
£
31 December
2020
£
-
7,311,625
345
23,462,907
3,176,103
-
7,474,317
345
22,719,222
2,415,191
33,950,980
32,609,075
Loans granted to subsidiaries have increased during the year due to additional loans being granted to the subsidiaries, and
foreign exchange gain of £2,190,977, given that no loans were repaid during the year.
These amounts are unsecured and repayable in Euros and Danish Krone on demand from the Company.
All intra Group transactions are eliminated on consolidation.
49
BLUEJAY MINING PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
Other transactions
The Group defines its key management personnel as the Directors of the Company as disclosed in the Directors’ Report.
PMW Consultancy Services, operated by Peter Waugh as a sole trader, was paid a fee of £50,000 for the year ended 31
December 2021 (31 December 2020: £40,000) for consulting services to the Company. There was a balance of £nil owing
at year end (31 December 2020: £nil).
26. Ultimate controlling party
The Directors believe there is no ultimate controlling party.
27. Events after the reporting date
On 27 January 2022, the Company appointed Eric Sondergaard as a Non-Executive Director to the board.
On 24 March 2022, the Company raised £5,400,000 via the issue and allotment of 76,857,134 new Ordinary Shares at a
price of 7 pence per share. As part of this placing, there was director dealings of £120,000.
50