Karelian Diamond Resources Plc - Half-yearly results for the six months ended 30 November 2025
(“Karelian” or “the Company”)
Half-yearly results for the six months ended
Highlights of the half-year period included:
-- In Northern Ireland the Company holds a significant licence package
covering over 1000 km² and has established first mover advantage. It
continues to advance its exploration programme for Nickel, Copper and
Platinum Group Elements.
-- Exploration work also continued in the Kuhmo region in Finland with the
Company focussing in particular on the geophysical Anomaly 5 as a
priority. It lies up-ice of the green-diamond find.
-- At the Lahtojoki diamond deposit Karelian was, in June, granted a mining
concession certificate and the focus of the Company’s efforts over the
last number of months have been on advancing discussions with a view to
securing appropriate strategic or partnership finance to progress
development.
“The Company is looking forward to progressing with the work programmes on its highly prospective Nickel, Copper and Platinum Group Element targets in
Further information:Karelian Diamond Resources plc +353-1-479-6180Brendan McMorrow , Chairman /Maureen Jones , Managing DirectorAllenby Capital Limited (Nomad) +44-20-3328-5656Nick Athanas /Nick Harriss Albr Capital Limited (Joint Broker) +44-20-7469-0930Lucy Williams /Duncan Vasey CMC Markets (Joint Broker) +44-20-3003-8632Douglas Crippen Lothbury Financial Services +44-20-3290-0707Michael Padley Hall Communications +353-1-660-9377Don Hall
http://www.kareliandiamondresources.com
Chairman’s Statement
Dear Shareholder,
I have great pleasure in presenting the Company’s Half-Yearly Report and condensed Financial Statements for the period ended
The Company holds a significant licence package covering over 1000 km2 in
Dr Hulbert’s report confirmed significant potential for Nickel, Copper and Platinum Group Elements and recommended a follow up work programme.
The Company has been progressing with follow on work over the last six months including entering into an enterprise partnership with
Diamond exploration in
While the market sentiment remains challenging from a diamond investment perspective, the Company is focussing its efforts on carefully progressing exploration work, positioning the Company well for a recovery in the retail sentiment towards natural stones.
The Company’s view is that in a global market segment for natural diamonds that is worth over
Exploration work in the Kuhmo region
Exploration work has continued in the Kuhmo region in
The Lahtojoki Diamond Deposit
In
Financial Review
The loss after taxation for the half year ended
Directors and Staff
I would like to thank my fellow directors, staff and consultants for their support and dedication, which has allowed the Company to continue to develop. Their support and commitment is key to the success of the Company.
Outlook
The Company is looking forward to the progressing of work programmes on its highly prospective Nickel, Copper and Platinum Group Element targets in
Finally, I would like to take this opportunity to place on record my appreciation for the continued support shown by both current and former directors in terms of remuneration deferral. This is a significant number in the context of the Company’s balance sheet and consideration is currently being given to a potential re-structuring of these amounts.
Yours faithfully,
Chairman
Condensed income statement
Note
Six-month
period ended
(Unaudited) €
Six-month period ended
(Unaudited) €
Year ended
(Audited) €
Continuing operations
Operating expenses
(180,623)
(164,741)
(364,615)
Movement in fair value of warrants
6
18,272
46,795
91,738
Operating loss
(162,351)
(117,946)
(272,887)
Interest expense
(3,240)
(3,240)
(6,480)
Loss before taxation
(165,591)
(121,186)
(279,357)
Income tax expense
-
-
-
Loss for the financial period/year
(165,591)
(121,186)
(279,357)
Loss per share
Basic and diluted loss per share
2
(0.0009)
(0.0012)
(0.0020)
Condensed statement of comprehensive income
Six-month period Six-month period Year ended 31 May
ended 30 November ended 30 November 2025
2025 2024
(Audited) €
(Unaudited) € (Unaudited) €
Loss for the (165,591) (121,186) (279,357)
financial period/year
Income/(expense)
recognised in other - - -
comprehensive income
Total comprehensive
income/(expense) for (165,591) (121,186) (279,357)
the financial
period/year
The accompanying notes form an integral part of these condensed financial statements.
Note
Year ended
€
€
€
Assets
Non-current assets
Intangible assets
3
12,192,618
11,896,405
12,085,967
Tangible Assets
2,114
-
2,114
Total non-current assets
12,194,732
11,896,405
12,088,081
Current assets
Cash and cash equivalents
27,711
47,290
40,862
Other receivables
109,644
114,183
117,094
Total current assets
137,355
161,473
157,956
Total assets
12,332,087
12,057,878
12,246,037
Equity
Capital and reserves
Called up share capital presented as equity
3,226,368
3,209,432
3,220,201
Share premium
11,601,317
11,104,265
11,399,829
Share based payments reserve
450,658
450,658
450,658
Retained losses
(5,094,418)
(4,770,656)
(4,928,827)
Total equity
10,183,925
9,993,699
10,141,861
Liabilities
Non-current liabilities
Warrant liabilities
5
14,608
-
32,880
Total non-current liabilities
14,608
-
32,880
Current liabilities
Trade and other payables: amounts falling due within one year
6
1,987,808
1,902,683
1,928,790
Convertible Loan
135,442
128,962
132,202
Warrant Liabilities
5
-
4,230
-
Derivative Liability
5
10,304
10,304
10,304
Total current liabilities
2,133,554
2,064,179
2,071,296
Total liabilities
2,148,162
2,064,179
2,104,176
Total equity and liabilities
12,332,087
12,057,878
12,246,037
The accompanying notes form an integral part of these condensed financial statements.
Six-month period ended
Six-month period ended
Year ended
€
Cash flows from operating activities
Loss for the financial period/year
(165,591)
(121,186)
(279,357)
Adjustments for:
Interest expense
3,240
3,240
6,480
Movement in fair value of warrants
(18,272)
(46,795)
(91,738)
Increase in trade and other payables
59,018
17,083
25,189
Decrease/(increase) in other receivables
7,450
(32,632)
(35,543)
Net cash used in operating activities
(114,155)
(180,290)
(374,969)
Cash flows from investing activities
Investment in exploration and evaluation
(106,651)
(206,211)
(395,773)
Expenditure on tangible assets
-
-
(2,114)
Net cash used in investing activities
(106,651)
(206,211)
(397,887)
Cash flows from financing activities
Proceeds on issue of share capital
207,655
394,194
774,121
Net cash provided by financing activities
207,655
394,194
774,121
Increase in cash and cash equivalents
(13,151)
7,693
1,265
Cash and cash equivalents at beginning of financial period/year
40,862
39,597
39,597
Cash and cash equivalents at end of financial period/year
27,711
47,290
40,862
The accompanying notes form an integral part of these condensed financial statements.
Share capital (including deferred share capital)
Share premium
Share-based payment reserve
Retained
losses
Total equity
€
€
€
€
€
Balance at
3,220,201
11,399,829
450,658
(4,928,827)
10,141,861
Issue of share capital
6,167
210,987
-
-
217,154
Share issue costs
-
(9,499)
-
-
(9,499)
Loss for the financial period
-
-
-
(165,591)
(165,591)
Balance at
3,226,368
11,601,317
450,658
(5,094,418)
10,183,925
Balance at
3,203,532
10,736,889
450,658
(4,649,470)
9,741,609
Issue of share capital
5,900
403,277
-
-
409,177
Share issue costs
-
(35,900)
-
-
(35,900)
Loss for the financial period
-
-
-
(121,187)
(121,187)
Balance at
3,209,432
11,104,266
450,658
(4,770,657)
9,993,699
Share capital
The share capital comprises the nominal value share capital issued for cash and non-cash consideration. The share capital also comprises deferred share capital. The deferred share capital* arose through the restructuring of share capital which was approved at an Annual General Meeting held on
Authorised share capital:
The authorised share capital at
*Capital reorganisation:
Following approval at an Annual General Meeting (“AGM”) held on
Consolidated shares:
On
Share and Warrant issues during the period:
During the period ended
Share premium
The share premium comprises the excess consideration received in respect of share capital over the nominal value of the shares issued as adjusted for the costs of share issue in line with the Company’s accounting policies.
Share based payment reserve
The share based payment reserve comprises of the fair value of all share options and warrants which have been charged over the vesting period, net of amounts relating to share options and warrants forfeited, exercised or lapsed during the period, which are reclassified to retained earnings.
Retained losses
This reserve represents the accumulated losses incurred by the Company up to the condensed statement of financial position date.
The accompanying notes form an integral part of these condensed financial statements.
1 Accounting policies
Reporting entity
Basis of preparation and statement of compliance
The condensed financial statements for the six months ended
The condensed financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34: Interim Financial Reporting.
The condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at
The condensed financial statements have been prepared under the historical cost convention, except for derivative financial instruments which are measured at fair value at each reporting date.
The condensed financial statements are presented in Euro (“€”). The Euro is the functional currency of the Company.
The preparation of condensed financial statements requires the Board of Directors and management to use judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial period in which the estimate is revised and in any future financial periods affected. Details of critical judgements are disclosed in the accounting policies detailed in the annual financial statements.
The financial information presented herein does not amount to statutory financial statements that are required by Chapter 4 part 6 of the Companies Act 2014 to be annexed to the annual return of the Company. The statutory financial statements for the financial year ended
These condensed financial statements were authorised for issue by the Board of Directors on
Going concern
The Company recorded a loss of € 165,591 for the six-month period ended
The Board of Directors have considered carefully the financial position of the Company and in that context, have prepared and reviewed cash flow forecasts for the period to
Statement of compliance
The Company’s financial statements have been prepared in accordance with IFRS as adopted by the
Recent accounting pronouncements
Certain new accounting standards and interpretations have been published and endorsed by the EU that were not mandatory for
-- Amendments to IAS 21 Lack of Exchangeability – Effective date 1 January
2025 ;
-- Amendments to IAS 7 and IFRS 17 regarding supplier finance arrangements
– Effective date 1 January 2025 ;
-- Amendments to IFRS 9 and IFRS 7 regarding classification and measurement
of financial instruments – Effective date 1 January 2026 ;
-- Annual Improvements to IFRS Accounting Standards – Volume 11 – Effective
date 1 January 2026 ;
2 Profit/(loss) per share
Basic earnings per
share
Six-month period Six-month period Year ended 31 May
ended 30 November ended 30 November 2025
2025 (Unaudited) € 2024 (Unaudited) €
(Audited)€
Loss for the
financial
period/year (165,591) (121,186) (279,357)
attributable to
equity holders of
the Company
Number of ordinary
shares for the 182,784,936 124,748,635 138,390,187
purposes of earnings
per share
Basic loss per (€0.0009) (€0.0012) (€0.0020)
ordinary share
Diluted earnings/(loss) per share
The effect of share options and warrants is anti-dilutive.
3 Intangible assets
Exploration and evaluation 31 May 2025
assets 30 November 2025 30 November 2024
(Unaudited) € (Unaudited) € (Audited) €
Cost
At 1 June 12,085,967 11,690,194 11,690,194
Expenditure during the
financial period/year
-- License and 59,885 118,372 199,937
appraisal costs
-- Other operating 46,766 87,839 195,836
expenses
At 30 November/31 May 12,192,618 11,896,405 12,085,967
Exploration and evaluation assets relate to expenditure incurred in the development of mineral exploration opportunities.These assets are carried at historical cost and have been assessed for impairment in particular with regard to the requirements of IFRS 6: Exploration for and Evaluation of Mineral Resources relating to remaining licence or claim terms, likelihood of renewal, likelihood of further expenditure, possible discontinuation of activities as a result of specific claims and available data which may suggest that the recoverable value of an exploration and evaluation asset is less than its carrying amount.
The Board of Directors have considered the proposed work programmes for the underlying mineral resources. They are satisfied that there are no indications of impairment.
The Board of Directors note that the realisation of the intangible assets is dependent on further successful development and ultimate production of the mineral resources and the availability of sufficient finance to bring the resources to economic maturity and profitability.
4 Commitments and Contingencies
At
5 Convertible Loan
On
€10,304 was recorded as a derivative liability attached to the total convertible loan note above and the net amount of €119,246 was initially recorded as the value of the convertible loan at
6 Trade and other payables: amounts falling due within one year
Included in the payables figure of €1,987,806 is an amount of €1,660,704 in respect of amounts owing to both current and former directors of the Company who provide continuing support to the Company through renewing annually a commitment not to seek payment of the amounts owed unless the Company is in a position to discharge them.
7 Warrant liabilities
The Company holds Sterling based warrants. The Company estimates the fair value of the sterling-based warrants using the Binomial Lattice Model. The determination of the fair value of the warrants is affected by the Company’s share price along with other assumptions.
As part of the share issue in
8 Related party transactions
(a) Apart from Directors’ remuneration, equity investment from Directors, and loans from shareholders, (who are also Directors), there have been no contracts or arrangements entered into during the six-month period in which a Director of the Company had a material interest.
(b) The Company shares accommodation and staff with Conroy Gold and Natural Resources plc (“Conroy”) which have certain common Directors and shareholders. For the six-month period ended
9 Subsequent events
There were no other material events subsequent to the reporting date which necessitate revision of the figures or disclosures included in the financial statements.
10 Approval of the condensed financial statements
These condensed financial statements were approved by the Board of Directors on
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