Operational Highlights
Key operational milestones achieved during the period:
The Company has and continues to assess a number of projects that meet its investment criteria.
During the first half of last year, MetalNRG plc (“the Company) announced a partnership agreement with EQTEC plc (“EQTEC”), an AIM listed world leading gasification technology solutions company focused on waste-to- sustainable energy projects. The purpose of the partnership as announced to market is to seek “shovel ready” green sustainable waste-to-energy projects that offer financial upside.
In partnership with EQTEC, the Company announced its participation in the acquisition and planned recommissioning of a 1MW waste-to-energy plant in Italy. Originally commissioned in 2015, the plant was built around EQTEC’s proprietary and patented Advanced Gasification Technology. The Company joined a consortium led by EQTEC to repower, own and operate the biomass-to- energy p lant (the “Plant”) in Castiglione d’Orcia, Tuscany, Italy. Once operational, the plant will transform straw and forestry wood waste from local farms and forests into green electricity and heat for use in the local community. We are now working towards the commissioning of the plant in the next few months. More importantly the Company has worked closely with EQTEC to identify a number of additional projects and create a short list of investable projects that meet the Company’s investment criteria.
During the year we worked with Advircorp, a boutique corporate advisory firm based in London to identify debt providers who would re finance the Italian project once it has been commissioned and revenues and profitability has stabilized. The Company expects further developments to be announced once the plant is fully operational.
Work at our Goldridge gold project in Arizona has also progressed well. As previously announced SRK Consulting completed a Competent Person’s Report on the asset. In the report SRK pointed out that in addition to the old waste dumps and pillars left behind by previous operators, there appears to be an opportunity to explore in more detail the connectivity between the previously producing gold mines to get a detailed understanding of the geological structure on the property. Work has progressed in this direction and the initial findings are encouraging. During the first half of the year we completed a detailed geo sampling of the asset, the results indicate that our initial assumption appears to be validated and that further exploration work should be conducted leading to an even greater understanding of the overall opportunity that Goldridge offers.
The Company has continued to support IMC’s Uranium project in Kyrgyzstan which is currently on hold due to that Government’s current ban on the exploitation of uranium in the country. IMC is seeking to unlock the current situation via a number of actions which we will report on as they develop.
BritNRG Limited
Our investment in BritNRG Limited, has not turned out as planned. In September last year we rescinded the transaction entered into referred to as the April transaction and requested the amount invested in the April transaction be returned, while maintaining a minority interest in the firm.
In its continuing civil legal proceedings in the English High Court against Brit Energy Holdings LLP (the “LLP”); Mr Pierpoalo Rocco and BritNRG Limited (the “Joint Venture Company”), the Company’s application for summary judgment against the LLP and the Joint Venture Company for, inter alia; (1) summary judgment on the Company’s claim against and/or the striking out of the defences filed by the LLP and the Joint Venture Company; (2) a declaration that the series of agreements entered into in April 2021 were effectively rescinded in September 2021; and (3) the recovery from those defendants of monies paid to the LLP totalling £1,019,999, plus interest and costs (such amount to be determined) was granted on 28 September 2022. An application by the LLP and the Joint Venture Company for permission to appeal and an application by Mr Rocco, the LLP and the Joint Venture Company for a stay of enforcement were also dismissed at the same hearing.
Further information about the decision will follow when the formal order is made.
Mr Rocco brought action against the Company, in Scotland, but the case was dismissed and the Company was awarded costs in addition to a favourable verdict on all counts. Mr Rocco has appealed, and a further hearing is still to be scheduled.
Mr Rocco also lodged a claim with the Employment Tribunal which will be heard in the early part of 2023.
Corporate Development
The Company will continue to seek additional projects that meet its set investment criteria. The specific intention is to seek opportunities where we can deliver early positive cash flows from an asset and, where the cash generated from the operations allows us to explore and develop those projects further. With the work carried out with EQTEC we will focus on waste-to-energy projects which are similar in nature to the project we have invested in in Italy.
Financial Review
MetalNRG reported an unaudited operating loss for the six months period ended 30 June 2022 of £999,949 which includes £629,811 in legal and professional fees relating to the BritNRG Ltd et al claims (six months period to 30 June 2021: an unaudited operating loss of £890,354). Basic and diluted loss per share for the period was 0.09p and 0.06p respectively (six months period to 30 June 2021: Basic loss per share was 0.14p and diluted loss per share was 0.08p).
Outlook
A number of projects have been evaluated and good progress has been made to date. We expect further announcements will be made to update the market on any concrete achievements.
Responsibility Statement
We confirm that to the best of our knowledge:
· The interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the EU;
· The interim financial statements give a true and fair view of the assets, liabilities, financial position and loss of the Group;
· The interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the year; and
· The interim financial information includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.
Contact details:
MetalNRG PLC
Rolf Gerritsen
Christopher Latilla-Campbell
+44 (0) 20 7796 9060
