Beowulf reports substantial first-half progress

The AIM-traded firm reported a reduction in underlying administration expenses, which decreased to £520,157 in the second quarter of this year from £1.1m in the same period of 2023.

It put the reduction down to lower share-based payment expenses, professional fees, and directors’ and staff costs, among other factors.

The company’s consolidated loss before tax for the first half decreased significantly to £976,478, down from £1.8m in the same period last year.

That improvement was due to reduced expenses across several areas, including a decrease in finance costs related to a bridging loan that was fully repaid during the period.

Beowulf raised £4.4m through a capital raise, which included a rights issue of Swedish depository receipts and a PrimaryBid retail offer.

The funds were being used to advance the Gállok and GAMP projects, including the preparation for pre-feasibility studies (PFS) and the necessary permitting processes.

Beowulf said the company’s cash balance stood at £2.69m as of 30 June, and exploration assets increased to £15.21m, up from £13.59m at the same time last year.

During the first half, Beowulf said it made significant corporate and project-related advancements.

In Sweden, the company strengthened its leadership team by appointing Dmytro Siergieiev as project director for Jokkmokk Iron Mines, responsible for the development of the Gállok project.

Under his leadership, the firm engaged with local stakeholders, including landowners and Sami villages, to foster a collaborative approach as the project moved forward.

Beowulf also continued critical work on the Gállok PFS and environmental impact assessment (EIA), with key studies on metallurgical testing, hydrogeological conditions, and transport logistics.

In Finland, Beowulf, through its subsidiary Grafintec Oy, updated its strategy for GAMP to fast-track the production of coated spherical graphite (CSPG), a key material for anode manufacturers.

That strategic shift was designed to capture more value in the anode production supply chain, particularly in light of recent export controls on graphite imposed by China.

The company initiated test work that had already produced positive results, demonstrating that the proposed process could yield battery-grade graphite material.

It said the PFS for GAMP was expected to finish by the end of the year, with a definitive feasibility study planned for 2025.

In Kosovo, Beowulf consolidated its ownership of Vardar Minerals, achieving full control through the issue of shares.

The consolidation was designed to reduce operational costs and streamline management.

Vardar also submitted applications for new exploration licences in the Mitrovica, Viti East, and Viti North areas, which were pending approval by Kosovo’s Independent Commission for Mines and Minerals (ICMM).

Preliminary assay results from the Shala East licence area returned encouraging indications of gold, silver, zinc, and lead, while sampling in Viti North revealed anomalous levels of lithium and boron.

Since the period ended, Beowulf said it had continued to advance its projects.

The formal consultation process for the Gállok EIA was set to start after the summer, with a targeted submission for the environmental permit in spring 2025.

Metallurgical test work at Gállok meanwhile indicated the potential to produce very high-grade iron concentrate, with further drilling scheduled for the autumn to upgrade the resource classification.

Meanwhile, optimisation work for GAMP continued, focusing on recycling and reusing key reagents in the graphite purification process, which was expected to reduce both operating costs and environmental impact.

“Significant progress has been made across the company's portfolio during the period,” said chief executive officer Ed Bowie.

“With the appointment of Dmytro, the leadership of Jokkmokk Iron is now on a sure footing and we continue to work with a team of market leading consultants.

“Activity at Gállok is ramping, with the EIA consultation process planned to commence in September and multiple ongoing work streams in preparation for the PFS.”

Bowie said the company’s focus over the coming months remained on advancing those workstreams, whilst delivering a “robust” environmental permit application.

“Having now spent a year in post, I am pleased by the excellent progress we have made both corporately and at asset level.

“We are building a skilled and dedicated team, working more closely with local stakeholders and the advancement of the projects represents a very significant derisking both from technical and permitting perspectives.”

Despite that progress, Ed Bowie said equity markets remained “challenging”, with the company's share price having performed poorly.

“We remain focused on further derisking the company's assets, demonstrating their true value and closing the market disconnect.”

At 0911 BST, shares in Beowulf Mining were up 4.36% at 22.96p.

Reporting by Josh White for Sharecast.com.