Money – 1C Plus Plus Street http://1cplusplusstreet.com/ Fri, 28 May 2021 20:25:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://1cplusplusstreet.com/wp-content/uploads/2021/05/default.png Money – 1C Plus Plus Street http://1cplusplusstreet.com/ 32 32 Feds Dole Out $2.4B in Loans to Minnesota Businesses https://1cplusplusstreet.com/feds-dole-out-2-4b-in-loans-to-minnesota-businesses/ https://1cplusplusstreet.com/feds-dole-out-2-4b-in-loans-to-minnesota-businesses/#respond Fri, 14 May 2021 10:26:31 +0000 https://1cplusplusstreet.com/?p=628 The U.S. Small Business Administration has provided more than 42,300 economic injury disaster Payday Champion online loans to businesses in the North Star State. According to the U.S. Small Business Administration’s most recent Covid-19 disaster assistance update, 42,340 economic injury disaster loans (EIDLs) have been approved in Minnesota. That equates to more than $2.4 billion in […]]]>

The U.S. Small Business Administration has provided more than 42,300 economic injury disaster Payday Champion online loans to businesses in the North Star State.

According to the U.S. Small Business Administration’s most recent Covid-19 disaster assistance update, 42,340 economic injury disaster loans (EIDLs) have been approved in Minnesota. That equates to more than $2.4 billion in relief loans.

Specific data related to local industries and loan recipients isn’t yet available.

EIDLs provide economic relief to small businesses and nonprofit organizations that are experiencing a temporary loss in revenue. The program differs from the popular Paycheck Protection Program in that the loans are disbursed directly through the SBA. PPP loans, on the other hand, are disbursed by a lender, such as a bank or credit union.

Nationwide, nearly 3.8 million EIDLs have been approved by the SBA, totaling nearly $206 billion. The Great Lakes Region, which comprises Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin, accounts for about 12 percent, or $23.1 billion, of the nation’s approved EIDLs.

Meanwhile, on Tuesday, the federal government began administering grants from the Restaurant Revitalization Fund (RRF). The first wave of funding will provide grants to more than 16,000 approved food and beverage applicants nationwide, totaling about $2 billion.

“We know that this help is urgently needed by so many who have suffered disproportionately from this pandemic and have often been unable to access relief,” said SBA administrator Isabella Casillas Guzman in a press release. “Restaurants are the core of our neighborhoods and propel economic activity on Main Streets across the nation. The SBA is here to help them build resilience to survive this pandemic as we get our economy back on track.”

Brian McDonald, district director at SBA’s Minnesota District Office, said that about 13,600 food accommodation businesses in Minnesota are eligible to try for RRF grants. The program provides funds for pandemic-related revenue losses. That means some of those businesses may not qualify. For instance, some bars and restaurants with high takeout sales may not qualify for RRF grants if they didn’t log a decline in revenue.

Businesses interested in EIDL, RRF, PPP, or the Shuttered Venue Operators Grant can click here for cross-program eligibility information.

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Final Results for the Year Ended 31 December 2020 https://1cplusplusstreet.com/final-results-for-the-year-ended-31-december-2020/ https://1cplusplusstreet.com/final-results-for-the-year-ended-31-december-2020/#respond Fri, 14 May 2021 09:15:50 +0000 https://1cplusplusstreet.com/?p=610 News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here. LONDON, April 01, 2021 (GLOBE NEWSWIRE) — Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’ or ‘the Company’) the nickel company focused on Brazil, announces its final results for the year ended 31 December […]]]>

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.


LONDON, April 01, 2021 (GLOBE NEWSWIRE) — Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’ or ‘the Company’) the nickel company focused on Brazil, announces its final results for the year ended 31 December 2020.

Highlights:

  • Strong cash position of £10.9 million as at 31 December 2020 maintained and supplemented post year end through a £18 million placing in February 2021.
  • Significant progress made on the overall Project Finance package for the development of Araguaia.
  • A syndicate of five international financial institutions mandated for a US$325 million senior debt facility to part fund the development of Araguaia.
  • BNP Paribas, ING Capital LLC, Mizuho Bank, Ltd., Natixis (New York Branch), and Société Générale will act as the Mandated Lead Arrangers
  • Non-binding, conditional term sheet agreed with one major cornerstone equity investor.
  • Value engineering for the Araguaia project completed resulting in a number of improvements to enhance operational performance whilst remaining in line with 2018 Feasibility Study capex and opex values.
  • Appointment of Sepanta Dorri to the Board as Non-Executive Director.
  • Key appointments made across the operational and corporate teams in London and Brazil.
  • Inaugural Sustainability Report published on 17 August 2020. The Company recognises the importance of conveying its efforts and achievements around the areas of environmental stewardship, social responsibility and corporate governance to its various stakeholders as it moves towards construction at Araguaia.
  • The Company has continued to support local communities around its projects through the provision of food parcels and health and hygiene guidance in response to the Covid pandemic.

Post Period Events:

  • Successful completion of a £18 million fundraise with predominately new institutions.
  • Appointment of BMO Capital Market Limited as joint broker.
  • Appointment of Michael Drake as Head of Projects.
  • Award of power line licence to cover the full power requirement of the Araguaia project at nameplate capacity.

For further information, visit www.horizonteminerals.com or contact:

Horizonte Minerals plcJeremy Martin (CEO)Anna Legge (Corporate Communications) info@horizonteminerals.com +44 (0) 203 356 2901
 
Peel Hunt (NOMAD & Joint Broker)Ross AllisterDavid McKeown +44 (0)20 7418 8900
BMO (Joint Broker)Thomas RiderPascal Lussier DuquetteAndrew Cameron +44 (0) 20 7236 1010
   

About Horizonte Minerals:Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil. The Company is developing the Araguaia project, as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, with the aim of being able to supply nickel and cobalt to the EV battery market. Both projects are 100% owned.

CHAIRMAN’S STATEMENTIn a year of unprecedented challenges for us all, I am delighted to report that not only has Horizonte reached significant business and project level milestones but, most importantly, our management team and all our staff have kept safe and well.

The health and well-being of our employees and wider team is our number one priority, and as we continue to tackle the COVID-19 pandemic our dedication to providing a safe and productive workplace will remain at the forefront of our decision-making process. The pandemic has completely changed the way in which we work. Some of these changes we will all be keen to see the end of but, others we will take forward, as we have learnt how to work more effectively, more respectfully and more sustainably.

Operational milestones

Horizonte is on a path to become a significant nickel producer. We are currently in the midst of the transition from being an explorer/developer to becoming a developer/producer. This transition is enabled by securing suitable funding, and this has been our focus for 2020. Araguaia will our first project into production, followed closely by the Vermelho project. The combination of our projects, in conjunction with the looming significant supply deficit in the nickel market, positions Horizonte as a unique opportunity for investors.

During the year the senior management team, working closely alongside Endeavour Financial, has made significant progress in advancing the project financing for Araguaia. This financing package comprises multiple components, and these are all progressing simultaneously. The completion of this funding will be transformational for Horizonte, and we look forward to updating the market on our progress later in the year.

The Vermelho project continues to progress. Our Social and Environmental team has spent the year collecting relevant data for baseline monitoring in preparation for the Environmental and Social Impact Assessment. This assessment is a key requirement for permitting and the feasibility study. With demand from the EV battery market accelerating exponentially, we will be seeking to expedite development of the project.

Growing our team

In addition to progressing our projects, it is critical that Horizonte develops as a major business entity. Most importantly this is about securing the best and most appropriate people required for a company with a large, scalable production profile. During the year we have hired 11 of the industry’s top talent in the areas of project development, project operation and capital markets. I was also delighted to welcome Ms. Sepanta Dorri to the Board as a Non-Executive Director. As the Vice President, Corporate Development at Teck Resources, Sepanta brings a wealth of experience and a fresh perspective to our Board. She has already made a meaningful contribution to the implementation of our overall strategic objectives. Sepanta is our first female board member, and her appointment marks an appointment milestone in promoting and facilitating gender diversity throughout all levels of the Company as we work to build a more representative team. We currently have a 41% female workforce.

Changing the way we work

The COVID-19 pandemic has forced us to work differently, as we adapted to working predominately remotely both from the corporate office in London and the operations in Brazil. During a phase in the Company’s development where all teams need to be in constant contact with multiple stakeholders, this has been a challenge. However, it has been a challenge that we have adapted to and overcome, enabling the Company to continue to reach the milestones necessary to progress. It is testament to the dedication and agility of the entire team that we have been able to report on another successful year in the face of the adverse impacts of the global pandemic.

A positive outcome of these changes has been a greater need to focus on well-being. Led by the senior management team, we have implemented further measures to ensure we are protecting and promoting the health, safety and well-being of our workforce. A greater use of technology has also enabled us to come together as a company more effectively. During the year, we hosted multiple all company video conference calls to update each other on each team’s progress and provide a constructive forum for all employees to ask questions and raise concerns. Whilst we have all missed human interaction, 2020 has taught has how to work more flexibly and more effectively. For example, the senior management team has participated in several international investor roadshows without the need to travel to multiple cities around the world. The savings made, both in time and money, are significant compared to what would have been spent attending in person. This is therefore one of the changes we will consider carefully once the pandemic has passed.

Supporting our communities

In addition to our employees, engagement with our communities has been critical this year. Our social team has worked tirelessly throughout the year to support our local communities in a COVID-safe manner. Advice and guidelines on how to stay safe have constantly changed throughout the year, but Horizonte has been proactive in ensuring our communities received and understood the correct measures in line with the World Health Organisation and the Brazilian Ministry of Health. We have also provided and distributed hundreds of food packages in partnership with the welfare departments of each municipality, to the most vulnerable families in our communities. This work continues into 2021. Horizonte would usually participate in many community engagements and social initiatives throughout the year. Whilst measures required to stop the spread of COVID have significantly limited these activities, the social team has continued to engage with and listen to our local communities, virtually where possible or at a safe physical distance where required. We look forward to returning to our normal level of participation in the community later in 2021.

Sustainability reporting

In August 2020, we published our maiden standalone sustainability report for activities during the financial year 2019. A report such as this is a huge undertaking, and therefore a rarity from junior pre-production companies. We believe this early commitment to sustainability reporting sets Horizonte apart and clearly demonstrates our pledge to the highest levels of sustainability performance. The report outlines our objectives in the areas of environmental stewardship, social development and corporate governance, as well as highlighting the significant work we have undertaken to date. We are committed to publishing a Sustainability Report alongside our Annual Report on an annual basis. This increased reporting schedule encapsulates our core values of transparency and accountability, sustainability and innovation.

The nickel market

Sustainability and innovation have been at the top of the political and media agenda for most of 2020, as all countries work to “build back better” after the COVID pandemic. This has pushed nickel into the commodity limelight. Nickel is a key base metal for building more sustainable societies due to its use in stainless steel and new battery technology. The World Bank reported in its “Minerals for Climate Action: The Mineral Intensity for the Clean Energy Transition” whitepaper that the production of metals such as nickel and cobalt could increase by nearly 500% by 2050 to meet the growing demand for clean energy technologies. In September 2020, Tesla CEO Elon Musk confirmed that high nickel-content batteries are the future for low-cost, long-range electric vehicles at Tesla’s Battery Day. The large stainless steel market and the rapidly expanding battery market are predicted to create a large supply deficit in the nickel market by 2040. Horizonte is one of very few nickel stories ready to supply this deficit, and our projects have the ability to supply both the stainless steel and battery markets.

Outlook

Firstly, I would like to thank Alex Christopher for his many years of service to the Board of Horizonte, and to welcome again Sepanta Dorri and all our other new members to the team in 2020. Secondly, I would like to applaud the hard work, dedication and resilience of all our team members led by our CEO, Jeremy Martin. The COVID-19 pandemic was unfortunately not an isolated event in 2020, it has continued in to 2021 and we will continue to feel its effects well into the medium term. However, with the accelerating rollout of a number of vaccines we are hopeful for a more certain, less interrupted year in 2021.

We continue to be grateful for the support of our shareholders, and we are pleased to see increasing interest in the Horizonte story from new investors and strategic partners. Horizonte has reached an exciting phase of its journey, and we believe we are able to offer a unique and compelling investment opportunity.

Finally, I would like to thank fellow Board members for their contributions through the year.

David Hall31 March 2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HORIZONTE MINERALS PLC

For Canadian filing purposes

Opinion

We have audited the consolidated financial statements of Horizonte Minerals Plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the years ended 31 December 2020 and 31 December 2019 which comprise the consolidated statement of comprehensive income, the consolidated statement of financial position , the consolidated statement of changes in equity, the consolidated statement of cash flows and notes to the consolidated financial statements including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). Our audit opinion does not cover the parent company financial statements.

In our opinion:

  • the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the group as at 31 December 2020 and 31 December 2019 and its consolidated financial performance and its cash flows for the years then ended; and
  • the consolidated financial statements have been properly prepared in accordance with IFRSs as issued by the IASB.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the group financial statements in the UK, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated 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 consolidated 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 the scope of our audit addressed the key audit matter
Carrying value of exploration and evaluation assets and mine development propertySee notes 4.1, 10 and 11 to the consolidated financial statements The group holds the Araguaia mine development property carried at a value of £30,706,818 and the Vermelho exploration and evaluation asset carried at a value of £ 6,062,625. Each year management are required to assess whether there are any indicators that the mine development property and exploration and evaluation asset could be impaired. Management have carried out a review for indicators of impairment and have not identified any indicators. Reviewing indicators of impairment and assessment of carrying values require significant estimates and judgements and therefore we identified this as a key audit matter. We have reviewed management’s impairment assessments for both projects and our procedures included the following : We considered whether management’s assessments of impairment had been carried out in accordance with the requirements of the accounting standards.

  • We reviewed the feasibility studies prepared by independent consultants for consistency with management’s representations and assessed the competence and independence of the experts used by management.
    • For the Araguaia project, this assessment is supported by the externally prepared feasibility study published in October 2018, which indicates a post-tax net present value of $401m at a discount rate of 8%.
    • For the Vermelho project, this assessment is supported by the externally prepared pre-feasibility study published in October 2019, which indicates a post-tax net present value of $1.7bn at a discount rate of 8%.
  • For the Araguaia project we considered if key assumptions had changed unfavourably since the date of publication of the study. Nickel price is a key input assumption and the study’s results used a long term nickel price of $14,000 per tonne. In December 2020 the long term consensus price was higher, at $16,200 per tonne.
  • For the Vermelho project we considered if key assumptions had changed unfavourably since the date of publication of the study. The study’s results used a long term nickel price of $16,400 per tonne. The December 2020 the long term consensus price, at $16,200 per tonne, was 1.2% lower.
  • Both projects will incur certain operating costs in Brazilian Real and therefore the US$/Brl exchange rate is an input assumption. During 2020 the Brazilian Real depreciated significantly, which has a positive impact on economics of the projects as the revenue is denominated in USD.
  • We agreed the validity of licences held by the Group to the Brazilian Government’s DNPM website. We also reviewed the correspondence, contracts and other documents regarding the licenses to confirm that the Group has the relevant rights for its activities in the stated areas for Araguaia and Vermelho.
  • We evaluated the adequacy of the disclosures in respect of the assessment of impairment indicators for the exploration and evaluation asset and impairment assessment of the mine development project against the requirements of the accounting standards.

Key observations:Based on our work we concur with management’s assessment of the carrying value of the group’s exploration and evaluation asset and mine development property.

Valuation of Royalty Funding Arrangement See notes 18 and 4.4 of the consolidated financial statements In the prior year the group entered into a US$25m royalty funding agreement with Orion Mine Finance in exchange for future royalty payments linked to the future revenues of the Araguaia project. The royalty agreement includes a buyback option enabling the Group to reduce the royalty rate and other cash payment options (the call, make whole and put options) for part reduction in the royalty rate, which require the occurrence of certain events.The accounting for this agreement is complex and therefore management obtained advice from an independent expert. The accounting analysis concluded that the agreement is a hybrid contract that contains a non-derivative host loan and prepayment options in the form of embedded derivatives which should be separated for accounting purposes. The embedded derivatives are initially recognised at fair value and subsequently revalued at each period end. Management has engaged an independent expert to calculate the fair value of the buyback option. The fair value calculation utilised Monte-Carlo simulation methodology. The call, make whole and put options can only be exercised if two specific events occur, being:

  • A change of control and;
  • Commencement of major construction work after 31 March 2021.

Management assessed the probability of both of these events arising to be remote and have determined the valuation of these options at the inception of the loan and at the year end to be not material.Judgement was required in determining the accounting treatment of the royalty funding agreement and the approach to valuing the options. The valuation of these financial instruments also required management to make a number of key estimates. Accordingly, the accounting for the royalty funding agreement is considered to be a key audit matter.

Our procedures in relation to the valuation of the royalty funding loan and embedded derivatives are set our below.In respect of the host loan:

  • We tested the valuation model prepared by management, checking that the model’s methodology was in agreement with the royalty agreement and IFRS requirements and that the assumptions were in agreement with management’s justifications and explanations. We also checked the arithmetical accuracy of the amortised loan model.
  • We critically assessed management’s key assumptions, including long term nickel price, nickel price inflation and the adopted royalty rate, which is determined by the date of commencement of construction. We made our assessment by reference to independent sources of data and supporting documentation held by the Group.

In respect of the fair value of the buyback option:

  • We reviewed the option valuation methodology adopted to check that the features of the option had been appropriately modelled and we also confirmed with management that the modelling is in line with their understanding of the option features.
  • We checked that the key assumptions used were in agreement with those used for the valuation of the host loan. The nickel price volatility is an additional key assumption for the option valuation. We recalculated the nickel price volatility using independently sourced data and it was in close proximity to that used by management.
  • The option valuation is sensitive to the nickel price volatility. Based on the features of the option management considered volatility based on five years historic nickel prices to be appropriate. We calculated an alternative reasonable volatility based on ten years and it was in close proximity, being 0.3% lower than the five year volatility.
  • We assessed the competence and independence of the valuation expert used by management.
  • We discussed the valuation with the expert and management to ensure that we understood the methodology that they had adopted and the rationale behind it.

In respect of the call, make whole and put options:We discussed with management their basis for concluding that the probability of the events allowing exercise of these options was remote. We corroborated this by reference to press announcements, internal board minutes and other operational documentation and concluded that their assessment was appropriate and supported by the evidence.Key observations:Based on our work, we concur with the judgements made by management in accounting for the royalty agreement and that the valuation methodology adopted for the host loan and the options is appropriate.

Other information

The other information comprises the information included in the annual report and the management discussion and analysis, other than the consolidated financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Responsibilities of management

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’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. Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 International Standards on Auditing (ISAs) 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.As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the group’s consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
  • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the group and the parent company to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation,
  • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for the audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The partner in charge of the audit resulting in this independent auditors’ report is Stuart Barnsdall.

BDO LLP, Chartered Accountants

London, United Kingdom

31 March 2021

Consolidated Statement of Comprehensive IncomeFor the year ended 31 December 2020

    Year ended   Year ended  
    31 December   31 December  
    2020   2019  
  Notes £   £  
Administrative expenses 6 (2,949,736 ) (2,563,880 )
Charge for share options granted     (326,413 )
Changes in estimate for contingent and deferred consideration 17   598,660  
Fair value movement   (424,500 )  
Gain/(Loss) on foreign exchange   751,313   (56,266 )
Operating loss   (2,622,923 ) (2,347,899 )
Finance income 8 236,986   110,036  
Finance costs 8   (933,351 )
Loss before taxation   (2,385,937 ) (3,171,214 )
Income tax 9 108,526    
Loss for the year from continuing operations attributable to owners of the parent   (2,277,411 ) (3,171,214 )
Other comprehensive income      
Items that may be reclassified subsequently to profit or loss      
Currency translation differences on translating foreign operations 16 (8,151,944 ) (2,626,939 )
Other comprehensive loss for the year, net of tax   (8,151,944 ) (2,626,939 )
Total comprehensive loss for the year attributable to owners of the parent   (10,429,355 ) (5,798,153 )
Loss per share from continuing operations attributable to owners of the parent      
Basic and diluted loss per share (p) 21 (0.157 ) (0.219 )

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial PositionCompany number: 05676866As at 31 December 2020

      31 December   31 December  
      2020   2019  
  Notes   £   £  
Assets        
Non-current assets        
Intangible assets 10   6,220,872   7,057,445  
Property, plant & equipment 11   30,839,947   32,260,544  
      37,060,819   39,317,989  
Current assets        
Trade and other receivables     270,540   134,726  
Derivative financial asset 18   1,756,553   2,246,809  
Cash and cash equivalents 12   10,935,563   17,760,330  
      12,962,656   20,141,865  
Total assets     50,023,475   59,459,854  
Equity and liabilities        
Equity attributable to owners of the parent        
Share capital 13   14,493,773   14,463,773  
Share premium 14   41,848,306   41,785,306  
Other reserves 16   (12,818,874 ) (4,666,930 )
Retained losses     (22,112,503 ) (19,835,092 )
Total equity     21,410,702   31,747,057  
Liabilities        
Non-current liabilities        
Contingent consideration 17   5,927,025   6,246,071  
Royalty Finance 18   22,053,341   20,570,411  
Deferred tax liabilities 9     212,382  
      27,980,366   27,028,864  
Current liabilities        
Trade and other payables 17   632,407   683,933  
      632,407   683,933  
Total liabilities     28,612,773   27,712,867  
Total equity and liabilities     50,023,475   59,459,854  

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

The Financial Statements were authorised for issue by the Board of Directors on 31 March 2021 and were signed on its behalf.

David J Hall   Jeremy J Martin
Chairman   Chief Executive Officer

Company Statement of Financial PositionCompany number: 05676866As at 31 December 2020

      31 December   31 December  
  Notes   2020£   2019£  
Non-Current Assets        
Investment in subsidiaries 26   2,348,142   2,348,042  
Loans to Subsidiaries 27   64,692,156   55,413,147  
      67,040,298   57,761,189  
Current assets        
Trade and other receivables     96,196   135,376  
Cash and cash equivalents 12   5,308,954   17,393,773  
      5,405,150   17,529,149  
Total assets     72,445,448   75,290,338  
Equity and liabilities        
Equity attributable to equity shareholders        
Share capital 13   14,493,773   14,463,773  
Share premium 14   41,848,306   41,785,306  
Other reserves 16   10,888,760   10,888,760  
Retained losses     (13,186,690 ) (16,564,099 )
Total equity     54,044,149   50,573,740  
Liabilities        
Non-current liabilities        
Contingent consideration 17   5,927,025   6,246,071  
      5,927,025   6,246,071  
Current liabilities        
Trade and other payables 17   694,110   735,518  
Loans from subsidiary     11,780,164   17,735,009  
      12,474,274   18,470,527  
Total liabilities     18,401,299   24,716,598  
Total equity and liabilities     72,445,448   75,290,338  

The above Company Statement of Financial Position should be read in conjunction with the accompanying notes, profit for the period was £3,377,409 (2019: £ 2,037,780 loss). As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the Parent Company is not presented as part of these Financial Statements.

The Financial Statements were authorised for issue by the Board of Directors on 31 March 2021 and were signed on its behalf.

David J Hall  Jeremy J Martin
Chairman Chief Executive Officer

Consolidated Statement of Changes in EquityFor the year ended 31 December 2020

    Attributable to owners of the parent  
  Share Share Retained Other  
  capital premium losses reserves Total
  £ £ £ £ £
As at 1 January 2019 14,325,218 41,664,018 (16,990,290 ) (2,039,991 ) 36,958,955  
Loss for the year (3,171,214 )   (3,171,214 )
Other comprehensive income:          
Currency translation differences on translating foreign operations   (2,626,939 ) (2,626,939 )
Total comprehensive income for the year (3,171,214 ) (2,626,939 ) (5,798,153 )
Issue of ordinary shares 138,555 121,288     259,843  
Issue costs      
Share-based payments 326,413     326,413  
Total transactions with owners, recognised directly in equity 138,555 121,288 326,413     586,256  
As at 31 December 2019 14,463,773 41,785,306 (19,835,092 ) (4,666,930 ) 31,747,057  
Loss for the year (2,277,411 )   (2,277,411 )
Other comprehensive income:          
Currency translation differences on translating foreign operations   (8,151,994 ) (8,151,944 )
Total comprehensive income for the year (2,277,411 ) (8,151,944 ) (10,429,355 )
Issue of ordinary shares 30,000 63,000     93,000  
Issue costs      
Share-based payments      
Total transactions with owners, recognised directly in equity 30,000 63,000     93,000  
As at 31 December 2020 14,493,773 41,848,306 (22,112,503 ) (12,818,874 ) 21,410,702  

A breakdown of other reserves is provided in note 16.

Company Statement of Changes in Equity
    Attributable to equity shareholders  
  Share Share Retained Merger  
  capital premium losses reserves Total
  £ £ £ £ £
As at 1 January 2019 14,325,218 41,664,018 (14,852,732 ) 10,888,760 52,025,264  
Profit and total comprehensive income for the year (2,037,780 ) (2,037,780 )
Issue of ordinary shares 138,555 121,288   259,843  
Issue costs    
Share-based payments 326,413   326,413  
Total transactions with owners, recognised directly in equity 138,555 121,288 (1,711,367 ) (1,451,524 )
As at 31 December 2019 14,463,773 41,785,306 (16,564,099 ) 10,888,760 50,573,740  
Profit and total comprehensive income for the year 3,377,409   3,377,409  
Issue of ordinary shares 30,000 63,000   93,000  
Issue costs    
Share-based payments    
Total transactions with owners, recognised directly in equity 30,000 63,000 3,377,409   3,470,409  
As at 31 December 2020 14,493,773 41,848,306 (13,186,690 ) 10,888,760 54,044,149  

The above Statements of Changes in Equity should be read in conjunction with the accompanying notes.

Consolidated Statement of Cash FlowsFor the year ended 31 December 2020

    31 December   31 December  
    2020   2019  
  Notes £   £  
Cash flows from operating activities      
Loss before taxation   (2,385,936 ) (3,171,214 )
Finance income   (236,986 ) (110,036 )
Finance costs     933,351  
Charge for share options granted     326,413  
Exchange differences   (751,313 ) (77,072 )
Change in fair value of contingent consideration     (598,660 )
Change in fair value of derivative asset   424,500    
Operating loss before changes in working capital   (2,949,735 ) (2,697,218 )
Increase in trade and other receivables   (135,814 ) (110,483 )
Increase/(decrease) in trade and other payables   (51,526 ) 403,758  
Cash used in operating activities   (3,137,075 ) (2,403,943 )
Income taxes paid   (51,071 )  
Net cash used in operating activities   (3,188,146 ) (2,403,366 )
Cash flows from investing activities      
Purchase of exploration and evaluation assets     (3,992,757 )
Purchase of property, plant and equipment 11 (4,153,198 ) (238,701 )
Interest received   151,459   110,036  
Net cash used in investing activities   (4,001,739 ) (4,121,422 )
Cash flows from financing activities      
Proceeds from issue of royalty funding     18,241,205  
Proceeds from issue of ordinary shares   93,000    
Net cash generated from financing activities   93,000   18,241,205  
Net increase/(decrease) in cash and cash equivalents   (7,045,814 ) 11,715,130  
Cash and cash equivalents at beginning of year   17,760,330   6,527,825  
Exchange gain/(loss) on cash and cash equivalents   221,047   (482,625 )
Cash and cash equivalents at end of the year 12 10,935,563   17,760,330  

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Company Statement of Cash FlowsFor year ended 31 December 2020

    31 December   31 December  
    2020   2019  
  Notes £   £  
Cash flows from operating activities      
Profit/(loss) before taxation   3,428,478   (2,037,780 )
IFRS9 Expected credit loss (credit)/charge   (3,814,254 ) 440,579  
Finance income   (72,155 ) (78,420 )
Finance costs   445,065   344,952  
Charge for share options granted     326,413  
Exchange differences   (1,491,383 ) (64,047 )
Change in fair value of contingent consideration   (764,109 ) (598,660 )
Depreciation      
Operating profit before changes in working capital   (2,268,358 ) (1,666,961 )
Increase/(decrease) in trade and other receivables   39,180   (116,049 )
(Decrease)/Increase in trade and other payables   (41,409 ) 250,387  
Cash flows generated from operating activities   (2,270,587 ) (1,532,625 )
Taxes paid   (51,071 )  
Net Cash flows from operating activities   (2,321,658 ) (1,532,625 )
Cash flows from investing activities      
Loans to subsidiary undertakings   (10,363,054 ) (4,353,284 )
Interest received   72,155   78,420  
Net cash used in investing activities   (10,290,899 ) (4,274,864 )
Cash flows from financing activities      
Proceeds from grant of Royalty     18,241,205  
Proceeds from issue of ordinary shares   93,000    
Issue costs      
Net cash generated from financing activities   93,000   18,241,205  
Net increase/(decrease) in cash and cash equivalents   (12,519,557 ) 12,433,716  
Exchange gain/(loss) on cash and cash equivalents   434,738   (527,342 )
Cash and cash equivalents at beginning of year   17,393,773   5,487,399  
Cash and cash equivalents at end of the year 12 5,308,954   17,393,773  

On the 24 January 2019 the Company issued 13,855,487 shares as a non cash settlement for $330,000 of deferred contingent consideration

The above Company Statement of Cash Flows should be read in conjunction with the accompanying notes.

Notes to the Financial Statements

1 General information

The principal activity of Horizonte Minerals Plc (‘the Company’) and its subsidiaries (together ‘the Group’) is the exploration and development of base metals. The Company’s shares are listed on the AIM market of the London Stock Exchange and on the Toronto Stock Exchange. The Company is incorporated and domiciled in England and Wales. The address of its registered office is Rex House, 4-12 Regents Street, London, SW1Y 4RG.

2 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all the years presented.

2.1 Basis of preparation

These Financial Statements have been prepared in accordance with in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with International Financial Reporting Standards “IFRS” and their interpretations as issued by the IASB. The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of share based payment charges and the valuation of derivative financial assets which are assessed annually.

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 Group’s Accounting Policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Financial Statements, are disclosed in Note 4.

2.2 Going concern

The Group’s business activities together with the factors likely to affect its future development, performance and position are set out in the Chairman’s Statement on pages [4] and [5]; in addition note [3] to the 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 credit and liquidity risk.

The 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 consider that the Group has sufficient funds to undertake its operating activities for a period of at least the next 12 months including any additional expenditure required in relation to its current exploration and development projects. The Group raised $26.2 million in February 2021 by way of issuing new shares and special warrants that are convertible into equity upon the publication of a short for prospectus in Canada. The funds held at the year end along with those raised post year end means the Group has cash reserves which are considered sufficient by the Directors to fund the Group’s committed expenditure both operationally and on its exploration project for the foreseeable future. However, as additional projects are identified and the Araguaia project moves towards production, additional funding will be required.

The uncertainty as to the future impact of the Covid-19 pandemic has been considered as part of the Group’s adoption of the going concern basis.  In response to government instructions the Group’s offices in London and Brazil have been closed with staff working from home, international travel has stopped and all site work for the two projects has been restricted to a minimum level.  However, a number of the key project milestones are still advancing and are currently on track being run by the teams in a virtual capacity.

Whilst the board considers that the effect of Covid-19 on the Group’s financial results at this time is constrained to inefficiencies due to remote working, restrictions on travel and some minor potential delays to consultants work streams, the Board considers the pandemic could delay the Araguaia project financing timeline by a number of months (this will be dependent on the duration of the effects of the Covid-19 virus across global markets). However, the additional funding described above provides sufficient financing to enable the Company to continue its operations for at least 12 months should any additional cost arise as a result of any potential deterioration in the global Covid-19 situation.

As a result of considerations noted above, the Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these Financial Statements.

2.2 (b) Assessment of the impact of COVID-19

During the period of these financial statements there has been an ongoing significant global pandemic which has had significant knock on effects for the majority of the world’s population, by way of the measures governments are taking to tackle the issue. This represents a risk to the Group’s operations by restricting travel, the potential to detriment the health and wellbeing of its employees, as well as the effects that this might have on the ability of the Group to finance and advance its operations in the timeframes envisaged. The Group has taken steps to try and ensure the safety of its employees and operate under the current circumstances and feels the outlook for its operations remains positive, however risk remain should the pandemic worsen or changes its impact on the Group. The assessment of the possible impact on the going concern position of the Group is set out in the going concern note above. In addition, because of the long term nature of the Group’s nickel projects and their strong project economics management do not consider that COVID has given rise to any impairment indicators. The Group has not received any government assistance.

2.3 Changes in accounting policy and disclosures

a) New and amended standards adopted by the Group

New standards impacting the Group that are adopted in the annual financial statements for the year ended 31 December 2020, are:

Standard Detail Effective date
IFRS 7, IFRS 9, IAS 39 Amendments regarding pre-replacement issues in the context of the IBOR reform 1 January 2020
IAS 1, IAS 8 Amendment – regarding the definition of material 1 January 2020

The adopted amendments have not resulted in any changes to the Group Consolidated Financial Statements.

b) New and amended standards, and interpretations issued but not yet effective for the financial year beginning 1 January 2020 and not early adopted

At the date of authorisation of these Consolidated Financial Statements, the following new standards, amendments and interpretations to existing standards have been published but are not yet effective and have not been adopted early by the Group.

Standard Detail Effective date
IFRS 7, IFRS 9, IFRS 16, IAS 39 Amendments regarding pre-replacement issues in the context of the IBOR reform 1 January 2021
IAS 16 Amendments prohibiting a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use 1 January 2022
IAS 37 Amendments regarding the costs to include when assessing whether a contract is onerous 1 January 2022
IAS 1 Amendment – regarding the classification of liabilities 1 January 2023

Management anticipates that all the pronouncements will be adopted in the Group’s accounting policies for the first period beginning after the effective date of the pronouncement.

c) New accounting policy adopted

Following the commencement of the development of the Araguaia mine project the Group has adopted a new accounting policy for capitalisation of borrowing costs. The accounting policy is described in note 2.6 below.

2.4 Basis of consolidation and business acquisitions

Horizonte Minerals Plc was incorporated on 16 January 2006. On 23 March 2006 Horizonte Minerals Plc acquired the entire issued share capital of Horizonte Exploration Limited (HEL) by way of a share for share exchange. The transaction was treated as a group reconstruction and was accounted for using the merger accounting method as the entities were under common control before and after the acquisition.

Subsidiaries are entities controlled by the Group. 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.

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.
  • The Group’s voting rights and potential voting rights.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Other than for the acquisition of HEL as noted above, the Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred unless they result from the issuance of shares, in which case they are offset against the premium on those shares within equity.

If an acquisition is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or a liability is recognised in accordance with IFRS9 either in profit or loss or as a change in other comprehensive income. The unwinding of the discount on contingent consideration liabilities is recognised as a finance charge within profit or loss. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity.

The excess of the consideration transferred and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or loss.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with policies adopted by the Group.

Investments in subsidiaries are accounted for at cost less impairment.

The following 100% owned subsidiaries have been included within the consolidated Financial Statements (consistent with the prior year):

Subsidiary undertaking Held Registered Address Country of incorporation Nature of business
Horizonte Exploration Ltd Directly Rex House, 4-12 Regents Street, London SW1Y 4RG England Mineral Exploration
Horizonte Minerals (IOM) Ltd Indirectly 1st Floor, Viking House, St Pauls Square, Ramsey, IM8 1GB, Ilse of Man Isle of Man Holding company
HM Brazil (IOM) Ltd Indirectly 1st Floor, Viking House, St Pauls Square, Ramsey, IM8 1GB, Ilse of Man Isle of Man Holding company
Cluny (IOM) Ltd Indirectly 1st Floor, Viking House, St Pauls Square, Ramsey, IM8 1GB, Ilse of Man Isle of Man Holding company
Champol (IOM) ltd Indirectly 1st Floor, Viking House, St Pauls Square, Ramsey, IM8 1GB, Ilse of Man Isle of Man Holding company
Horizonte Nickel (IOM) Ltd Indirectly 1st Floor, Viking House, St Pauls Square, Ramsey, IM8 1GB, Ilse of Man Isle of Man Holding company
Nickel Production Services B.V Directly Atrium Building, 8th floor, Strawinskylaan 3127, 1077 ZX, Amsterdam The Netherlands Provision of financial services
HM do Brasil Ltda Indirectly CNPJ 07.819.038/0001-30 com sede na Avenida Amazonas, 2904, loja 511, Bairro Prado, Belo Horizonte – MG. CEP: 30.411-186 Brazil Mineral Exploration
Araguaia Níquel Metais Ltda Indirectly CNPJ 97.515.035/0001-03 com sede na Avenida Amazonas, 2904, loja 511, Bairro Prado, Belo Horizonte – MG. CEP: 30.411-186 Brazil Mineral Exploration
Trias Brasil Mineração Ltda Indirectly CNPJ 23.282.280/0001-73 com sede na Alameda Ezequiel Dias, n. 427, 2º andar, bairro Funcionários, Município de Belo Horizonte, Estado de Minas Gerais, CEP 30.130-110 Brazil Mineral Exploration

During the year two wholly owned subsidiaries of the group, Lontra Emprendimentos e Participacões Ltda and Typhon Brasil Mineração Ltda were closed down and their assets transferred to other Brazilian subsidiaries.

2.4 (b) Subsidiaries and AcquisitionsThe consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. Control is recognised where an investor is expected, or has rights, to variable returns from its investment with the investee, and has the ability to affect these returns through its power over the investee. Based on the circumstances of the acquisition an assessment will be made as to whether the acquisition represents an acquisition of an asset or the acquisition of asset. In the event of a business acquisition, the assets, liabilities and contingent liabilities of a subsidiary are measured at their fair value at the date of acquisition. Any excess of the cost of the acquisition over the fair values of the identifiable net assets acquired is recognised as a “fair value” adjustment.

If the cost of the acquisition is less than the fair value of net assets of the subsidiary acquired, the difference is recognised directly in profit or loss. In the event of an asset acquisition assets and liabilities are assigned a carrying amount based on relative fair value.

The results of subsidiaries acquired or disposed of during the year are included in the statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies into line with those used by the Group.

Contingent consideration as a result of business acquisitions is included in cost at its acquisition date assessed value and, in the case of contingent consideration classified as a financial liability, remeasured subsequently through the profit and loss.

2.5 Intangible Assets

(a) Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets, liabilities and contingent liabilities of the acquired subsidiary at the date of acquisition. Goodwill arising on the acquisition of subsidiaries is included in ‘intangible assets’. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose, identified according to operating segment.

(b) Exploration and evaluation assets

The Group capitalises expenditure in relation to exploration and evaluation of mineral assets when the legal rights are obtained and are initially valued and subsequently carried at cost less any subsequent impairment. 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.

Exploration and evaluation assets arising on business combinations are included at their acquisition-date fair value in accordance with IFRS 3 (revised) ‘Business combinations’. Other exploration and evaluation assets and all subsequent expenditure on assets acquired as part of a business combination are recorded and held at cost.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount. The assessment is carried out by allocating exploration and evaluation assets to cash generating units, which are based on specific projects or geographical areas.

Impairment reviews for deferred exploration and evaluation expenditure are carried out on a project by project basis, with each project representing a potential single cash generating unit. In accordance with the requirements of IFRS 6, an impairment review is undertaken when indicators of impairment arise such as:

     (i)      unexpected geological occurrences that render the resource uneconomic;

     (ii)      title to the asset is compromised;

     (iii)     variations in mineral prices that render the project uneconomic;

     (iv)     substantive expenditure on further exploration and evaluation of mineral resources is neither budgeted nor planned; and

     (v)      the period for which the Group has the right to explore has expired and is not expected to be renewed.

See note 2.7 for impairment review process if impairment indicators are identified.

Whenever the exploration for and evaluation of mineral resources does not lead to the discovery of commercially viable quantities of mineral resources or the Group has decided to discontinue such activities of that unit, the associated expenditures are written off to profit or loss. Whenever a commercial discovery is the direct result of the exploration and evaluation assets, upon the decision to proceed with development of the asset and initial funding arrangements are in place the costs shall be transferred to a Mine Development asset within property, plant and equipment.

(c) Acquisitions of Mineral Exploration Licences

Acquisitions of Mineral Exploration Licences through acquisition of non-operational corporate structures that do not represent a business, and therefore do not meet the definition of a business combination, are accounted for as the acquisition of an asset and recognised at the fair value of the consideration. Related future consideration if contingent is recognised if it is considered that it is probable that it will be paid.

2.6 Property, plant and equipmentMine development property

Following determination of the technical feasibility and commercial viability of a mineral resource, the relevant expenditure is transferred from exploration and evaluation assets to mine development property.

Further development costs are capitalised to mine development properties, if and only if, it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably. Cost is defined as the purchase price and directly attributable costs. Once the asset is considered to be capable of operating in a manner intended by management, commercial production is declared, and the relevant costs are depreciated. Evaluated mineral property is carried at cost less accumulated depreciation and accumulated impairment losses.

Short lived Property, plant and equipment

All other property, plant and equipment such as office equipment and vehicles are stated at historic cost less accumulated depreciation. Historic cost includes expenditure that is directly attributable to the acquisition of the items.

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. Major repairs and maintenance are capitalised, all other repairs and maintenance costs are charged to profit or loss during the financial period in which they are incurred.

Depreciation and amortisation

Mine development property is not depreciated prior to commercial production but is reviewed for impairment annually (see “Impairment of assets” section below). Upon commencement of commercial production, mine development property is transferred to a mining property and is depreciated on a units-of-production basis. Only proven and probable reserves are used in the tonnes mined units of production depreciation calculation.

Depreciation is charged on a straight-line basis for all other property, plant and equipment, so as to write off the cost of assets, over their estimated useful lives, using the straight-line method, on the following bases:

Office equipment 25%
Vehicles and other field equipment 25% – 33%

The asset’s 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 assets carrying amount is greater than its estimated recoverable amount.

Capitalisation of borrowing costs

Borrowing costs are expensed except where they relate to the financing of construction or development of qualifying assets. Borrowing costs directly related to financing of qualifying assets in the course of construction are capitalised to the carrying value of the Araguaia mine development property. Where funds have been borrowed specifically to the finance the Project, the amount capitalised represents the actual borrowing costs incurred net of all interest income earned on the temporary re-investment of these borrowings prior to utilisation. Borrowing costs capitalised include:

  • Interest charge on royalty finance
  • Adjustments to the carrying value of the royalty finance
  • Unwinding of discount and adjustment to carrying value on contingent consideration payable for Araguaia

The capitalisation of adjustments to the carrying values as a result of changes in estimates is an accounting policy choice under IFRS and management have selected to capitalise.

All other borrowing costs are recognized as part of interest expense in the year which they are incurred.

2.7 Impairment of non-financial assets

Assets that have an indefinite useful life, such as goodwill are not subject to amortisation and are tested annually for impairment. Exploration assets and property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is 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 other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

2.8 Foreign currency translation

(a) Functional and presentation currency

Items included in the Financial Statements 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 and Isle of Man entities is Pounds Sterling and the functional currency of the Brazilian entities is Brazilian Real. The functional currency of the project financing subsidiary incorporated in the Netherlands is USD. The Consolidated Financial Statements are presented in Pounds Sterling, rounded to the nearest pound, 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 year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

(c) Group companies

The results and financial position of all the Group’s 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:

(1) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

(2) each component of profit or loss is translated at average exchange rates during the accounting period (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

(3) 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 foreseeable future are taken to other comprehensive income. When a foreign operation is sold, such exchange differences are recognised in profit or loss as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and retranslated at the end of each reporting period.

2.9 Financial instruments

Financial instruments are measured as set out below. Financial instruments carried on the statement of financial position include cash and cash equivalents, trade and other receivables, trade and other payables, derivative assets, royalty finance liability and loans to group companies.

Financial instruments are initially recognised at fair value when the group becomes a party to their contractual arrangements. Transaction costs directly attributable to the instrument’s acquisition or issue are included in the initial measurement of financial assets and financial liabilities, except financial instruments classified as at fair value through profit or loss (FVTPL). The subsequent measurement of financial instruments is dealt with below.

Financial assets

On initial recognition, a financial asset is classified as:

  • Amortised cost;
  • Fair value through other comprehensive income (FVTOCI) – equity instruments; or
  • FVTPL.

The group does not currently have any financial assets classified as FVTOCI.

Fair value through profit or loss

This category comprises in-the-money derivatives. They are carried in the statement of financial position at fair value with changes in fair value recognised in the profit loss statement.

Amortised cost

Financial assets that arise principally from assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains or losses, together with foreign exchange gains or losses. Impairment losses are presented as separate line item in the statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within other gains or losses in the period in which it arises. On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount of the asset is included in profit or loss.

Financial assets at amortised cost consist of trade receivables and other receivables (excluding taxes), cash and cash equivalents, and related party intercompany loans

Impairment provisions for receivables and loans to related parties are recognised based on using the general approach to determine if there has been a significant increase in credit risk since initial recognition and whether the receivables and loans are credit impaired. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.

Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost. For the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short term highly liquid investments with a maturity of three months or less at the date of purchase.

Financial liabilities

The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired.

Fair value through profit or loss

The group does not currently have any financial liabilities carried at Fair value through Profit and loss.

Other financial liabilities

Financial liabilities are initially valued at fair value and subsequently measured at amortised cost using the effective interest method, except for financial liabilities designated at fair value through profit or loss, that are carried subsequently at fair value with gains and losses recognised in the profit and loss statement.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

The Group’s financial liabilities initially measured at fair value and subsequently recognised at amortised cost include accounts payables and accrued liabilities as well as the Group’s Royalty liability.

2.10 Taxation

The tax credit or expense for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The charge for current tax is calculated on the basis of the tax laws enacted or substantively enacted by the end of the reporting period in the countries where the company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is accounted for using the liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the 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.

Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax assets are recognised on tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Company 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 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 asset is realised or the liability is settled.

Deferred tax assets and liabilities are not discounted.

2.11 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.12 Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.

2.13 Leases

All leases are accounted for by recognising a right-of-use assets due to a lease liability except for:

>        Lease of low value assets; and

>        Leases with duration of 12 months or less

The Group only has such short duration leases and lease payments are charged to the income statement.

2.14 Share-based payments and incentives

The Group operates equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of employee services received in exchange for the grant of share options are recognised as an expense. The total expense to be apportioned over the vesting period 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; and

>        including the impact of any non-vesting conditions.

Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense 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 Group revises its estimate of the number of options that are expected to vest.

It recognises the impact of the revision of original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

When options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium.

The fair value of goods or services received in exchange for shares is recognised as an expense.

2.15 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Executive Officer, the Company’s chief operating decision-maker (“CODM”).

2.16 Finance income

Interest income is recognised using the effective interest method, taking into account the principal amounts outstanding and the interest rates applicable.

2.17 Provisions and Contingent LiabilitiesProvisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as finance cost.

Contingent liabilities are potential obligations that arise from past events and whose existence will only be confirmed by the occurrence of one or more uncertain future events that, however, are beyond the control of the Group. Furthermore, present obligations may constitute contingent liabilities if it is not probable that an outflow of resources will be required to settle the obligation, or a sufficiently reliable estimate of the amount of the obligation cannot be made.

The company has contingent consideration arising in respect of mineral asset acquisitions. Details are disclosed in note 4.2.

Restoration, Rehabilitation and Environmental Provisions

Management uses its judgement and experience to provide for and amortise the estimated mine closure and site rehabilitation over the life of the mine. Provisions are discounted at a risk-free rate and cost base inflated at an appropriate rate. The ultimate closure and site rehabilitation costs are uncertain and cost estimates can vary in response to many factors including changes to relevant legal requirements or the emergence of new restoration techniques. The expected timing and extent of expenditure can also change, for example in response to changes in ore reserves or processing levels. As a result, there could be significant adjustments to the provisions established which could affect future financial results. Currently there is no provision as all restoration and rehabilitation for activities undertaken to date in line with the agreements for access to land. Once construction and mining operations commence however this is anticipated to become more significant.

Trade and other payablesAccounts payable and other short term monetary liabilities, are initially recognised at fair value, which equates to the transaction price, and subsequently carried at amortised cost using the effective interest method.

3 Financial risk management

The Group is exposed through its operations to the following financial risks:

  • Credit risk
  • Interest rate risk
  • Foreign exchange risk
  • Price risk, and
  • Liquidity risk.

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

(i) Principal financial instruments

The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:

  • Trade and other receivables
  • Cash and cash equivalents
  • Trade and other payables
  • Royalty finance
  • Derivative financial assets

3.1 Financial risk factors

The main financial risks to which the Group’s activities are exposed are liquidity and fluctuations on foreign currency. The Group’s overall risk management programme focusses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

Risk management is carried out by the Board of Directors under policies approved at the quarterly Board meetings. The Board frequently discusses principles for overall risk management including policies for specific areas such as foreign exchange.

(a) Liquidity risks

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. Liquidity risk arises from the Group’s management of working capital and the expenditure profile of the group. At present is does not have any finance charges and principal repayments that require settlement as the only liabilities it has are contingent upon reaching production. There is however a risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of at least 6 months. All cash, with the exception of that required for immediate working capital requirements, is held on short-term deposit.

The Board receives rolling 12-month cash flow projections on a quarterly basis as well as information regarding cash balances and (as noted above) the value of the Group’s deposits. At the end of the financial year, these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances. The liquidity risk of each group entity is managed centrally by the group treasury function. Each operation has a facility with group treasury, the amount of the facility being based on budgets. The budgets are set locally and agreed by the board in advance, enabling the Group’s cash requirements to be anticipated.

The following table sets out the contractual maturities of undiscounted financial liabilities:

Group

At 31 December 2020 Up to 3 Months Between 3 & 12 Months Between 1 & 2 Years Between 2 & 5 Years Over 5 years
  £ £ £ £ £
Trade & other payables 632,407  
Royalty financing arrangement 9,263,974 148,448,937
Contingent consideration 3,659,485 4,391,382
Total 632,407 12,923,459 152,840,319

The cash flows related to the royalty finance represent the estimated future payments in future years.

At 31 December 2019 Up to 3 Months Between 3 & 12 Months Between 1 & 2 Years Between 2 & 5 Years Over 5 years
  £ £ £ £ £
Trade & other payables 683,933  
Royalty financing arrangement 8,781,200 136,016,637
Contingent consideration 8,295,626
Total 683,933 17,076,826 136,016,637

The cash flows related to the royalty finance represent the estimated future payments in future years.

Company

At 31 December 2020 Up to 3 Months Between 3 & 12 Months Between 1 & 2 Years Between 2 & 5 Years Over 5 years
  £ £ £ £ £
Trade & other payables 280,179
Intercompany loans 12,194,094
Contingent consideration 3,659,485 4,391,382
Total 12,474,273 3,659,485 4,391,382
At 31 December 2019 Up to 3 Months Between 3 & 12 Months Between 1 & 2 Years Between 2 & 5 Years Over 5 years
  £ £ £ £ £
Trade & other payables 735,518
Intercompany loans 17,735,009
Contingent consideration 8,295,626
Total 18,470,527 8,295,626

(b) Foreign currency risks

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Brazilian Real, US Dollar and the Pound Sterling.

Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations that are denominated in a foreign currency. The Group holds a proportion of its cash in US Dollars and Brazilian Reals to hedge its exposure to foreign currency fluctuations and recognises the profits and losses resulting from currency fluctuations as and when they arise. The volume of transactions is not deemed sufficient to enter into forward contracts.

At 31 December 2020, if the Brazilian Real had weakened/strengthened by 20% against Pound Sterling with all other variables held constant, post tax loss for the year would have been approximately £1,204,049 (2019: £102,936) lower/higher mainly as a result of foreign exchange losses/gains on translation of Brazilian Real expenditure and denominated bank balances. If the USD:GBP rate had increased by 5% the effect would be £372,488 (2019: £799,698).

As of 31 December 2020 the Group’s net exposure to foreign exchange risk was as follows:

                                                                Functional Currency

Group USD2020 USD2019 GBP2020 GBP2019 BRL2020 BRL2019 Total2020 Total2019
Currency of net £ £ £ £ £ £ £ £
Financial assets/(liabilities)                
GBP    
USD (1,440,779 ) 10,822,512 (1,440,779 ) 10,822,512
BRL 5,433,840   5,433,840  
CAD 57,683   28,686 57,683   28,686
EUR 72,610   72,610  
Total net exposure 5,506,450 (1,383,096 ) 10,851,198 4,123,354   10,851,198
Company GBP2020 GBP2019 Total2020 Total2019
Currency of net £ £ £ £
Financial assets/liabilities        
USD (1,569,868 ) 10,822,512 (1,569,868 ) 10,822,512
CAD 30,000   28,686 30,000   28,686
Total net exposure (1,539,868 ) 10,851,198 (1,539,868 ) 10,851,198

(c) Interest rate risk

As the Group has no borrowings, it is not exposed to interest rate risk on financial liabilities. The Group’s interest rate risk arises from its cash held on short-term deposit for which the Directors use a mixture of fixed and variable rate deposits. As a result, fluctuations in interest rates are not expected to have a significant impact on profit or loss or equity.

(d) Commodity price risk

The group is exposed to the price fluctuation of its primary product from the Araguaia project, being FerroNickel. The Group has a royalty over its Araguaia project which is denominated as a fixed percentage of the product over a certain number of tonnes produced. Given the Group is current in the development phase and is not yet producing any revenue, the costs of managing exposure to commodity price risk exceed any potential benefits. The Directors monitor this risk on an ongoing basis and will review this as the group moves towards production. The Groups exposure to nickel price amounted to the carrying value of the Royalty liability of £22,053,341 (2019: £20,570,411). If the long term nickel price assumption used in the estimation were to increase or decrease by 10% then the effect on the carrying value of the liability would be an increase/decrease of £2,279,818 (2019: £2,107,418).

(e) Credit risk

Credit risk arises from cash and cash equivalents and outstanding receivables including intercompany loan receivable balances. The Group maintains cash and short-term deposits with a variety of credit worthy financial institutions and considers the credit ratings of these institutions before investing in order to mitigate against the associated credit risk.

The Company’s exposure to credit risk amounted to £10,935,563, (2019: £17,760,330) and represents the Group cash positions.

The Company’s exposure to credit risk amounted to £70,001,110, (2019: £73,189,301). Of this amount £64,692,156 (2019: £55,795,528) is due from subsidiary companies and £5,308,954 represents cash holdings (2019: £17,393,773). See note 27 for adjustments for provisions for expected credit losses for the intercompany receivables from subsidiary companies.

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, in order to provide returns for shareholders and to enable the Group to continue its exploration and evaluation activities. The Group has no repayable debt at 31 December 2020 and defines capital based on the total equity of the Group. 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.

As indicated above, the Group holds cash reserves on deposit at several banks and in different currencies until they are required and in order to match where possible with the corresponding liabilities in that currency.

3.3 Fair value estimation

The carrying values of trade receivables and payables are assumed to be approximate to their fair values, due to their short-term nature. The value of contingent consideration is estimated by discounting the future expected contractual cash flows at the Group’s current cost of capital of 7% based on the interest rate available to the Group for a similar financial instrument.

During the prior year the Group entered into a royalty funding arrangement with Orion Mine Finance securing a gross upfront payment of $25,000,000 before fees in exchange for a royalty over the first 426k tonnes of nickel produced from the Araguaia Ferronickel project. The agreement includes several prepayment options embedded within the agreement enabling the Group to reduce the royalty rate, these options are carried at fair value. Details of this agreement are included in note [18].

The future expected nickel price and, volatility of the nickel prices are key estimates that are critical in the fair value of the Buy Back Option associated with the Royalty financing.

The fair value of cash, other receivables, accounts payable and accrued liabilities approximate their carrying values due to the short-term nature of the instruments.

Fair value measurements recognised in the statement of financial position subsequent to initial fair value recognition can be classified into Levels 1 to 3 based on the degree to which fair value is observable.

Level 1 – Fair value measurements are those derived from quoted prices in active markets for identical assets and liabilities.

Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly, or indirectly.

Level 3 – Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data.

Information relating to the basis of determination of the level 3 fair value for the buyback option and consideration of sensitivity to changes in estimates is disclosed in note [18b]). ]

There were no transfers between any levels of the fair value hierarchy in the current or prior years.

4 Critical accounting estimates and judgements

The preparation of the Financial Statements in conformity with IFRSs 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 end of the reporting period and the reported amount of expenses during the year. Actual results may vary from the estimates used to produce these Financial Statements.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant items subject to such estimates and judgements include, but are not limited to:

Estimates

Company – Application of the expected credit loss model prescribed by IFRS 9

IFRS 9 requires the Parent company to make assumptions when implementing the forward-looking expected credit loss model. This model is required to be used to assess the intercompany loan receivables from the company’s Brazilian subsidiaries for impairment.

Arriving at the expected credit loss allowance involved considering different scenarios for the recovery of the intercompany loan receivables, the possible credit losses that could arise and the probabilities for these scenarios. The following was considered; the exploration project risk for Vermelho as well as the potential economics as derived from the PFS, positive NPV of the Araguaia projects as demonstrated by the Feasibility Study, ability to raise the finance to develop the projects, ability to sell the projects, market and technical risks relating to the project, participation of the subsidiaries in the Araguaia projects. See note 27 for a discussion on the adjustment passed concerning the impairment loss.

Valuation of derivative financial assets

Valuing derivatives inherently relies on a series of estimates and assumptions to derive what is deemed to be a fair value estimate for a financial instrument. The royalty financing arrangement entered into by the Group includes a Buyback option, an embedded derivatives which was valued using a Monte Carlo simulation method. This methodology of determining fair value is reliant upon estimations including the probability of certain scenarios occurring, the estimated production rate and timeline of production from the Araguaia project, future nickel prices as well as discount factors. The most important estimates in determining the valuation of the Buyback option are the future nickel price and its price volatility. The sensitivity of the valuation to these estimates are considered in note 18b).

Judgements

4.1 Impairment of exploration and evaluation costs

Exploration and evaluation costs which relate solely to Vermelho have a carrying value at 31 December 2020 of [£6,062,624] (2019: £6,846,859). Each exploration project is subject to an annual review by either a consultant or senior company geologist to determine if the exploration results returned to date 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 grades, permitting and infrastructure. 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. The judgement exercised by management relates to whether there is perceived to be an indicator of impairment and that management have concluded that there is not, due to the recovery in the Nickel prices, favourable economics of the Pre-Feasibility Study as well as the fundamentals of the nickel market and expected supply gap in the mid-term.

4.2 Contingent consideration

Contingent consideration has a carrying value of £5,927,026 at 31 December 2020 (2019: £6,246,071). There are two contingent consideration arrangements in place as at 31 December 2020:

  • Payable to Glencore in respect of the Araguaia acquisition – $5m
  • Payable to Vale in respect of the Vale acquisition – $6m

In prior years Management judged that the projects had advanced to a stage that it was probable that the consideration would be paid and so should be recognised in full. This remains the position. In addition, a key estimate in determining the estimated value of the contingent consideration for both Glencore and Vale is the timing of the assumed date of first commercial production.

Please refer to Note [17] for an analysis of the contingent and deferred consideration.

4.3 Current and deferred taxation

The Group is subject to income taxes in numerous jurisdictions. Judgment is required in determining the worldwide provision for such taxes. The Group recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will affect the current and deferred income tax assets and liabilities in the period in which such determination is made.

Deferred tax liabilities have been recognised on the fair value gains in exploration assets arising on the acquisitions of Araguaia Níquel Metais Ltda (formerly Teck Cominco Brasil S.A) and Lontra Empreendimentos e Participações Ltda in 2010. A deferred tax asset in respect of the losses has been recognised on acquisition of Araguaia Níquel Metais Ltda to the extent that it can be set against the deferred tax liability arising on the fair value gains. In determining whether a deferred tax asset in excess of this amount should be recognized management must make an assessment of the probability that the tax losses will be utilized and a deferred tax asset is only recognised if it is considered probable that the tax losses will be utilized.

Other estimates include but are not limited to future cash flows associated with assets, useful lives for depreciation and fair value of financial instruments.

4.4 Accounting for the royalty finance arrangements

The Group has a $25m royalty funding arrangement which was secured in order to advance the Araguaia project towards construction. The royalty pays a fixed percentage of revenue to the holder for production from the first 426k tonnes of nickel produced from the Araguaia project. The treatment of this financing arrangement as a financial liability, calculated using the effective interest rate methodology is a key judgement that was made by the Company in the prior year and which was taken following obtaining independent expert advice. The carrying value of the financing liability is driven by the expected future cashflows payable to the holder on the basis of the production profile of the mine property. It is also sensitive to assumptions regarding the royalty rate, which can vary based upon the start date for construction of the project and future nickel prices. The contract includes certain embedded derivatives, including the Buy Back Option which has been separated and carried at fair value through profit and loss.

The future price of nickel and date of commencement of commercial production are key estimates that are critical in the determination of the carrying value of the royalty liability.

The future expected nickel price and, volatility of the nickel prices are key estimates that are critical in the determination of the fair value of the Buy Back Option associated with the Royalty financing.

Further information relating to the accounting for this liability, the embedded derivative and the sensitivity of the carrying value to these estimates is provided in note 18a) and 18b).

4.5 Determination of commencement of capitalisation of borrowing costs

The date at which the Group commenced capitalisation of borrowing costs was determined to be the point at which the Araguaia Project moved forwards with undertaking an exercise of value engineering to get the project construction ready. This was deemed by management to be at the start of 2020.

5 Segmental reporting

The Group operates principally in the UK and Brazil, with operations managed on a project by project basis within each geographical area. Activities in the UK are mainly administrative in nature whilst the activities in Brazil relate to exploration and evaluation work. The separate subsidiary responsible for the project finance for the Araguaia Project is domiciled in the Netherlands. The operations of this entity are reported separately and so it is recognised as a new segment. The reports used by the chief operating decision-maker are based on these geographical segments.

2020 UK 2020 £ Brazil 2020 £ Netherlands2020£ Total 2020£
Intragroup sales 219,844   (219,884 )    
Administrative expenses (2,488,200 ) (292,492 ) (169,044 ) (2,949,738 )
Profit/(loss) on foreign exchange 1,491,281   (547,877 ) (192,091 ) 751,313  
Loss from operations per reportable segment (777,073 ) (1,218,233 ) (361,135 ) (2,198,423 )
Finance income 236,986       236,986  
Finance costs        
Changes in estimate for contingent and deferred consideration        
Fair value movement     (424,500 ) (424,500 )
Loss before taxation (540,089 ) (1,218,233 ) (785,635 ) (2,385,937 )
Depreciation charges        
Additions to non-current assets   4,017,419     4,017,419  
Capitalisation of borrowing costs   2,100,521     2,100,521  
Reportable segment assets 5,405,150   42,658,016   1,960,308   50,023,475  
Reportable segment non-current assets   37,060,819     37,060,819  
Reportable segment liabilities 5,927,122   346,127   22,059,443   28,377,692  
2019 UK 2019 £ Brazil 2019 £ Netherlands2019£  
Intragroup sales 171,712   (171,712 )    
Administrative expenses (1,840,348 ) (723,532 )   (2,563,880 )
Loss on foreign exchange 6,796   (78,843 ) 15,782   (56,266 )
Loss from operations per reportable segment (1,833,552 ) (802,376 ) 15,782   (2,620,146 )
Finance income 78,420   31,616     110,036  
Finance costs (344,953 )   (588,398 ) (933,351 )
Share based payment charge (326,413 )     (326,413 )
Changes in estimate for contingent and deferred consideration 598,660       598,660  
Fair value movement        
Loss before taxation (1,827,838 ) (770,760 ) (572,616 ) (3,171,214 )
Depreciation charges        
Additions to non-current assets   3,595,775     3,595,775  
Reportable segment assets 17,785,624   39,428,141   2,246,089   59,459,854  
Reportable segment non-current assets   39,317,989     39,317,989  
Reportable segment liabilities 6,572,952   569,434   20,925,425   28,067,791  

Inter segment revenues are calculated and recorded in accordance with the underlying intra group service agreements.        

A reconciliation of adjusted loss from operations per reportable segment to loss before tax is provided as follows:

  2020£ 2019 £
Loss from operations per reportable segment (2,198,423 ) (2,620,146 )
Changes in estimate for contingent and deferred consideration (refer note 17)   598,660  
Charge for share options granted   (326,413 )
Fair value movement on derivative (424,500 )  
Finance income 236,986   110,036  
Finance costs   (933,351 )
Tax credit/(charge) 108,526    
Loss for the year from continuing operations (2,277,411 ) (3,171,214 )

An analysis of non current assets by geographic region is shown below:

  2020 2019
Group £ £
Netherlands 2,334,039
Isle of Man 15,151,088
Brazil 19,575,692 39,317,989
Total 37,060,819 39,317,989

This has been presented following the restructuring of the group to include closure of two subsidiaries that are no longer required and the transfer of some project related assets and intercompany loans within the group.

6 Expenses by nature

  2020 2019
Group £ £
Employment related costs 1,067,047 1,070,636
Professional fees 1,093,299 615,579
Exploration costs expensed 343,695 723,628
Other 445,695 154,037
Total Administrative expenses 2,949,736 2,563,880
Charge for share options granted 326,413
Depreciation (note 11)

7 Auditor remuneration

During the year the Group (including its overseas subsidiaries) obtained the following services from the Company’s auditor and its associates:

Group 2020£ 2019£
Fees payable to the Company’s auditor and its associates for the audit of the parent company and consolidated financial statements 64,700 47,300
Fees payable to the Company’s auditor and its associates for other services:–         Audit of subsidiaries 10,000 7,000
– Audit related assurance services 35,000
–Tax compliance services 35,244 48,563

8 Finance income and costs

Group 2020£ 2019£
Finance income:    
– Interest income on cash and short-term bank deposits 151,459   110,036  
Finance costs:    
– Contingent consideration: unwinding of discount (445,066 ) (344,953 )
– Contingent consideration: change in estimates 764,109    
– Amortisation of royalty financing (3,244,873 ) (572,294 )
– Adjustment of royalty financing from change in estimates 910,834   (91,476 )
– movement in fair value of derivative asset   75,372  
Total finance costs (1,863,537 ) (933,351 )
Less finance costs capitalised 2,100,521    
Net finance income 236,986   (823,315 )

Interest costs that are directly attributable to the development of a qualifying asset have been capitalised. This represents 100% of the interest on the financing obtained for the Araguaia project, and is a capitalisation rate of 14.5%.

9 Income Tax

Group 2020£ 2019£
Tax charge:    
Current tax charge for the year (51,071 )
Deferred tax credit for the year 159,597  
Tax on loss for the year 108,526  

Reconciliation of current tax

Group 2020£ 2019£
Loss before income tax (2,385,936 ) (3,171,214 )
Current tax at 19% (2019: 19%) (453,328 ) (602,530 )
Effects of:    
Expenses not deducted for tax purposes 255,888   281,391  
Utilisation of tax losses brought forward    
Tax losses carried forward for which no deferred income tax asset was recognised 83,060   473,130  
Prior year adjustment (51,071 )  
Effect of higher overseas tax rates 114,380   (88,990 )
Total tax (51,071 )  

No tax charge or credit arises on the loss for the year.

The corporation tax rate in Brazil is 34%, the Netherlands 21% and the United Kingdom 19%. The group incurred expenses in all of these jurisdictions during the year, in 2019 and 2020 the effective rate was 19% as all of the losses arose in the UK.

Deferred income tax

An analysis of deferred tax assets and liabilities is set out below.

Group 2020£ 2019£
Deferred tax assets 1,624,891 1,412,509  
     
Deferred tax liabilities    
– Deferred tax liability to be settled after more than 12 months 1,624,891 1,624,891  
     
Deferred tax liabilities (net) (212,382 )

The movement on the net deferred tax liabilities is as follows:

Group 2020£ 2019£
At 1 January (212,382 ) (228,691 )
Exchange differences 52,785   16,309  
Adjustment to Deferred tax 159,597    
At 31 December   (212,382 )

Deferred tax assets are recognised on tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable.

Deferred tax liabilities are recognised in respect of fair value adjustments to the carrying value of intangible assets as a result of the acquisition of such assets.

The Group has tax losses of approximately £17,603,004 (2019: £16,810,975) in Brazil and excess management charges of approximately £2,288,011 (2019: £1,188,011) in the UK available to carry forward against future taxable profits. Deferred tax assets have been recognised up to the amount of the deferred tax liability arising on the fair value adjustments. Potential deferred tax assets of £6,419,743 (2019: £5,941,453) have not been recognised.

Tax losses are available indefinitely.

10 Intangible assets

Intangible assets comprise exploration licenses, exploration and evaluation costs and goodwill. Exploration and evaluation costs comprise acquired and internally generated assets.

Group Goodwill £ ExplorationLicenses £ Exploration and evaluation costs £ Total £
Cost        
At 1 January 2019 226,757   6,130,296   29,380,849   35,737,903  
Transfer to PPE   (3,483,363 ) (29,808,123 ) (33,291,486 )
Additions   3,324,005   2,604,911   5,928,916  
Exchange rate movements (16,172 ) (813,572 ) (488,143 ) (1,317,887 )
Net book amount at 31 December 2019 210,585   5,157,366   1,689,495   7,057,446  
Additions        
Exchange rate movements (52,337 ) (151,785 ) (632,451 ) (836,574 )
Net book amount at 31 December 2020 158,248   5,005,581   1,057,043   6,220,872  

(a) Exploration and evaluation assets

The exploration and evaluation costs are split between Vermelho as follows:

  Exploration licences £ Explorationand evaluation costs £ Total £
Vermelho      
Net book amount at 31 December 2019 5,157,366 1,689,495 6,846,860
Net book amount at 31 December 2020 5,005,581 1,057,043 6,062,624

No indicators of impairment were identified during the year for the Vermelho project.

Vermelho

In January 2018, the acquisition of the Vermelho project was completed, which resulted in a deferred consideration of $1,850,000 being recognised and accordingly an amount of £1,245,111 was capitalised to the exploration licences held within intangible assets shown above.

On 17 October the Group published the results of a Pre-Feasibility Study (“PFS”) on the Vermelho Nickel Cobalt Project, which confirms Vermelho as a large, high-grade resource, with a long mine life and low-cost source of nickel sulphate for the battery industry.

The economic and technical results from the study support further development of the project towards a full Feasibility Study and included the following:

  • A 38-year mine life estimated to generate total cash flows after taxation of US$7.3billion;
  • An estimated Base Case post-tax Net Present Value1 (‘NPV’) of US$1.7 billion and Internal Rate of Return (‘IRR’) of 26%;
  • At full production capacity the Project is expected to produce an average of 25,000 tonnes of nickel and 1,250 tonnes of cobalt per annum utilising the High-Pressure Acid Leach process;
  • The base case PFS economics assume a flat nickel price of US$16,400 per tonne (‘/t’) for the 38-year mine life;
  • C1 (Brook Hunt) cash cost of US$8,020/t Ni (US$3.64/lb Ni), defines Vermelho as a low-cost producer; and
  • Initial Capital Cost estimate is US$652 million (AACE class 4).

Nothing has materially deteriorated with the economics of the PFS between the publication date and the date of this report and the Directors undertook an assessment of impairment through evaluating the results of the PFS along with recent market information relating to capital markets and nickel prices and judged that there are no impairment indicators with regards to the Vermelho Project. Nickel prices remain higher than they were at the time of the publication of the PFS and overall sentiment towards battery metals and supply materials have grown more positive over the current year. The BRL has depreciated during the year which could have a positive impact on economics of the project as the revenue is denominated in USD with a significant portion of the costs and capital expenditure denominated in BRL. It has been therefore concluded there are no indicators if impairment.

(b) Goodwill

Goodwill arose on the acquisition of Lontra Empreendimentos e Participações Ltda in 2010 but following the closure of Lontra during the year the assets and allocated good will were transferred to another group company. The Directors have determined the recoverable amount of goodwill based on the same assumptions used for the assessment of the Araguaia project detailed below. As a result of this assessment, the Directors have concluded that no impairment charge is necessary against the carrying value of goodwill.

11 Property, plant and equipment

Group Mine Development Property£ Vehicles and other field equipment £ Office equipment £ Land acquisition£ Total £
Cost          
At 31 December 2018   106,722   14,424   121,146  
Foreign exchange movements (1,270,126 )     (1,270,126 )
Transfer from exploration and evaluation assets1 33,291,486         33,291,486  
Additions 238,701       238,701  
At 31 December 2019 32,260,061   106,722   14,424   32,381,207  
Foreign exchange movements (7,662,503 ) (25,162 ) (13,052 ) (7,700,717 )
Disposals   (5,806 )   (5,806 )
Interest capitalised 2,100,521       2,100,521  
Additions 4,008,719   1,234   55,989   87,257 4,153,199  
At 31 December 2020 30,706,798   76,988   57,361   87,257 30,928,404  
Accumulated depreciation          
At 31 December 2018   105,536   14,424   119,960  
Charge for the year   703     703  
Foreign exchange movements        
At 31 December 2019   106,239   14,424   120,663  
Foreign exchange movements   (16,959 ) (8,399 ) (25,358 )
Disposals   (38,224 )   (38,224 )
Charge for the year   6,121   25,275   31,396  
At 31 December 2020   57,177   31,300   88,477  
           
           
Net book amount as at 31 December 2020 30,706,818   19,811   26,061   87,257 30,839,947  
Net book amount as at 31 December 2019 32,260,061   483       32,260,544  
Net book amount as at 1 January 2019   1,186       1,186  

1Following determination of the technical feasibility and commercial viability of the Araguaia Ferronickel Project, the relevant expenditure has been transferred from exploration and evaluation assets to evaluated mineral property

Depreciation of £31,396 (2019: £703) has been capitalised and included within mine development asset additions for the year. The remaining depreciation expense for the year ended 31 December 2020 of £nil (2019: £nil) has been charged in ‘administrative expenses’ under ‘Depreciation.’

In December 2018, a Canadian NI 43-101 compliant Feasibility Study (“FS’) was published by the Company regarding the enlarged Araguaia Project which included the Vale dos Sonhos deposit acquired from Glencore. The financial results and conclusions of the FS clearly indicate the economic viability of the Araguaia Project with an NPV of $401M using a nickel price of $14,000/t Ni. Nothing material had changed with the economics of the FS between the publication date and the date of this report and the Directors undertook an assessment of impairment through evaluating the results of the FS along with recent market information relating to capital markets and nickel prices and judged that there are no impairment indicators with regards to the Araguaia Project.

Impairment assessments for exploration and evaluation assets are carried out either on a project by project basis or by geographical area.

The adjacent Araguaia/Lontra/Vila Oito and Floresta exploration sites (‘the Araguaia Project’), together with the Vale dos Sonhos deposit acquired from Xstrata Brasil Mineração Ltda comprise a resource of a sufficient size and scale to allow the Company to create a significant single nickel project. For this reason, at the current stage of development, these two projects are viewed and assessed for impairment by management as a single cash generating unit.

The mineral concession for the Vale dos Sonhos deposit was acquired from Xstrata Brasil Mineração Ltda, a subsidiary of Glencore Canada Corporation, in November 2015.

The NPV has been determined by reference to the FS undertaken on the Araguaia Project. The key inputs and assumptions in deriving the value in use were, the discount rate of 8%, which is based upon an estimate of the risk adjusted cost of capital for the jurisdiction, capital costs of $443 million, operating costs of $8,194/t Nickel, a Nickel price of US$14,000/t and a life of mine of 28 years.

Sensitivity to changes in assumptions

For the base case NPV8 of the Araguaia Project of US$401 million using a nickel price of US$14,000/t and US$740 million using US$16,800/t as per the FS to be reduced to the book value of the Araguaia Project as at 31 December 2019, the discount rate applied to the cash flow model would need to be increased from 8% to 17%.

12 Cash and cash equivalents

  Group Company
  2020 £ 2019 £ 2020 £ 2019 £
Cash at bank and on hand 6,756,255 2,219,850 1,129,646 1,854,329
Short-term deposits 4,179,308 15,540,480 4,179,308 15,540,480
  10,935,563 17,760,330 5,308,954 17,394,809

The Group’s cash at bank and short-term deposits are held with institutions with the following credit ratings:

  Group Company
  2020£ 2019£ 2020£ 2019£
A+ 5,264,882 5,251,913
A 245,517 17,338,016 17,338,016
AAA 4,522,146
BAA 57,041 57,041
BB 735,807
BBB- 422,314 56,793
NA 110,080
Total credit exposure 10,935,563 17,760,330 5,308,954 17,394,809

The cash deposited with the institution with no credit rating is only held short term and the expected credit loss is not assessed as material.

13 Share capital

Group and Company 2020Number 2020£ 2019Number 2019£
Issued and fully paid        
Ordinary shares of 1p each        
At 1 January 1,446,377,287 14,463,773 1,432,521,800 14,325,218
Issue of ordinary shares 3,000,000 30,000 13,855,487 138,555
At 31 December 1,449,377,287 14,493,773 1,446,377,287 14,463,773

Share capital comprises amount subscribed for shares at the nominal value.

2020

On 3 September 2020 the Group issued 3,000,000 new ordinary shares at a price of 3.1 pence per share in relation to the exercise of options by an employee of the Company.

2019

On 24 January 2019 the Company issued 13,855,487 as settlement for $330,000 of deferred contingent consideration that became payable following the issuance of a Feasibility Study including the Vale dos Sonhos deposit originally acquired from Glencore.

14 Share premium

Group and Company 2020£ 2019£
At 1 January 41,785,306 41,664,018
Premium arising on issue of ordinary shares 63,000 121,288
Issue costs
At 31 December 41,848,306 41,785,306

Share premium comprises the amount subscribed for share capital in excess of nominal value.

15 Share-based payments

The Directors have discretion to grant options to the Group employees to subscribe for Ordinary shares up to a maximum of 10% of the Company’s issued share capital. One third of options are exercisable at each six months anniversary from the date of grant, such that all options are exercisable 18 months after the date of grant and all lapse on the tenth anniversary of the date of grant or the holder ceasing to be an employee of the Group. Should holders cease employment then the options remain valid for a period of 3 months after cessation of employment, following which they will lapse. Neither the Company nor the Group has any legal or constructive obligation to settle or repurchase the options in cash.

Movements on number of share options and their related exercise price are as follows:

  Number of options 2020 Weightedaverage exercise price 2020£ Number of options 2019 Weightedaverage exercise price 2019£
Outstanding at 1 January 136,300,000   0.055 134,300,000 0.056
Forfeited (7,950,000 ) 0.140
Exercised (3,000,000 ) 0.031
Granted   2,000,000 0.048
Outstanding at 31 December 125,350,000   0.051 136,300,000 0.055
Exercisable at 31 December 125,350,000   0.051 134,966,667 0.055

The options outstanding at 31 December 2020 had a weighted average remaining contractual life of 5.80 years (2019: 6.38 years).

The fair value of the share options was determined using the Black-Scholes valuation model.

The parameters used are detailed below for options issued during 2019, no new options were issued during 2020.

Group and Company   2019options
Date of grant   11/02/2019
Weighted average share price   2.29 pence
Weighted average exercise price   4.80 pence
Weighted average fair value at the measurement date   1.05 pence
Expiry date   11/2/2029
Options granted   2,000,000 
Volatility   51%
Dividend yield   Nil
Option life   10 years
Annual risk free interest rate   1.22%

The expected volatility is based on historical volatility for the six months prior to the date of grant. The risk free rate of return is based on zero yield government bonds for a term consistent with the option life.

The range of option exercise prices is as follows:

Range of exercise prices (£) 2020 Weighted average exercise price (£) 2020 Number of shares 2020 Weighted average remaining life expected (years) 2020 Weighted average remaining life contracted (years) 2019 Weighted average exercise price (£) 2019 Number of shares 2019 Weighted average remaining life expected (years) 2019 Weighted average remaining life contracted (years)
0–0.1 0.042 115,700,000 6.21 6.21 0.04 121,150,000 7.02 7.02
0.1–0.2 0.154 9,650,000 0.93 0.93 0.16 15,150,000 1.55 1.55

16 Other reserves

    Merger Translation Other  
    reserve reserve reserve Total
Group   £ £ £ £
At 1 January 2019   10,888,760 (11,880,652 ) (1,048,100 ) (2,039,991 )
Other comprehensive income        
Currency translation differences   (2,626,938 )   (2,626,938 )
At 31 December 2019   10,888,760 (14,507,590 ) (1,048,100 ) (4,666,930 )
Other comprehensive income        
Currency translation differences   (8,151,944 )   (8,151,994 )
At 31 December 2020   10,888,760 (22,659,534 ) (1,048,100 ) (12,818,874 )
Company Merger reserve £ Total £
At 1 January 2019 and 31 December 2019 10,888,760 10,888,760
At 1 January 2020 and 31 December 2020 10,888,760 10,888,760

Other reserve

The other reserve arose on consolidation as a result of merger accounting for the acquisition of the entire issued share capital of Horizonte Exploration Limited during 2006 and represents the difference between the value of the share capital and premium issued for the acquisition and that of the acquired share capital and premium of Horizonte Exploration Limited.

Merger Reserve

During the year ended 31 December 2010 the Company acquired 100% of Teck Cominco Brasil S.A and Lontra Empreendimentos e Participações Ltda (refer note 5). These acquisitions were effected by the issue of shares in Horizonte Minerals plc. These shares qualified for merger relief under section 612 of the Companies Act 2006. In accordance with section 612 of the Companies Act 2006 the premium on the shares issued was recognised in a separate reserve within equity called merger reserve.

Currency translation differences relate to the translation of Group entities that have a functional currency different from the presentation currency (refer note 2.8). Movements in the translation reserve are linked to the changes in the value of the Brazilian Real against the Pound Sterling: the intangible assets of the Group are located in Brazil, and their functional currency is the Brazilian Real, which decreased in value against Sterling during the year.

17 Trade and other payables

  Group Company
  2020 2019 2020 2019
  £ £ £ £
Non-current        
Contingent consideration payable to:        
Xstrata Brasil Mineração Ltda 2,893,877 2,975,935 2,893,877 2,975,935
Vale Metais Basicoc S.A. 3,033,148 3,270,134 3,033,148 3,270,134
Total contingent consideration 5,927,025 6,246,069 5,927,025 6,246,069
Current        
Trade and other payables 304,461 538,933 123,657 176,588
Amounts due to related parties (refer note 22) 413,930 413,930
Social security and other taxes 83,203 30,000 31,822 30,000
Accrued expenses 244,743 115,000 124,700 115,000
  632,407 683,933 694,109 735,518
Total trade and other payables 6,559,432 6,930,002 6,621,134 6,981,587

Contingent Consideration payable to Xstrata Brasil Mineração Ltda

On 28 September 2015 the Company announced that it had reached agreement to indirectly acquire through wholly owned subsidiaries in Brazil the advanced high-grade Glencore Araguaia nickel project (‘GAP’) in north central Brazil. GAP is located in the vicinity of the Company’s Araguaia Project.

Pursuant to a conditional asset purchase agreement (‘Asset Purchase Agreement’) between, amongst others, the Company and Xstrata Brasil Exploraçâo Mineral Ltda (‘Xstrata‘), a wholly-owned subsidiary of Glencore Canada Corporation (‘Glencore‘), the Company has agreed to pay a total consideration of US$8 million to Xstrata, which holds the title to GAP. The consideration is to be paid according the following schedule;

  • US$2,000,000 in ordinary shares in the capital of the Company which was settled by way of issuing new shares in the Company as follows: US$660,000 was paid in shares to a subsidiary of Glencore during 2015 and the transfer of the Serra do Tapa and Pau Preto deposit areas (together: ‘SdT’) during 2016 initiated the final completion of the transaction with a further US$1,340,000 shares in the Company issued.
  • US$1,000,000 after the date of issuance of a joint Feasibility Study for the combined Araguaia & GAP project areas, to be satisfied in HZM Shares (at the 5 day volume weighted average price taken on the tenth business day after the date of such issuance) or cash, at the election of the Company. Of this $330,000 is due upon the inclusion of Vale dos Sonhos in a Feasibility Study and $670,000 for Serra do Tapa, during 2018 a Feasibility Study including Vale dos Sonhos was published and the consideration settled by way of issuing 13,855,487 new Shares in the Company occurred during 2019. Serra do Tapa is not included in the current project plans, therefore management have concluded it’s not currently probable that the consideration for Serra do Tapa will be paid. This consideration is therefore not included in contingent consideration; and
  • The remaining US$5,000,000 consideration will be paid in cash, as at the date of first commercial production from any of the resource areas within the Enlarged Project area. Following transfer of the concession for the VdS deposit area to a subsidiary of the Company, this has been included in contingent consideration payable.

Contingent consideration payable to Vale S.A

  • On 19 December 2017 the Company announced that it had reached agreement with Vale S.A (“Vale”) to indirectly acquire through wholly owned subsidiaries in Brazil, 100% of the advanced Vermelho nickel-cobalt project in Brazil (“Vermelho”).
  • The terms of the Acquisition required Horizonte to pay an initial cash payment of US$150,000 with a further US$1,850,000 in cash payable on the second anniversary of the signing of the asset purchase agreement. This was paid by the Group in December 2019 and is no longer included in deferred consideration.
  • A final payment of US$6,000,000 in cash is payable by Horizonte within 30 days of first commercial sale of product from Vermelho. Management have assessed that with the publication of the Pre-Feasibility Study during 2019 for the Vermelho project, there is a reasonable probability that the project will advance through to production and therefore have recognised this contingent consideration within liabilities for the first time during the year.

The critical assumptions underlying the treatment of the contingent consideration are set out in note [4.2].

As at 31 December 2020, there was a finance expense of £231,780 (2019: £344,952) recognised in finance costs within the Statement of Comprehensive Income in respect of the contingent and deferred consideration arrangements, as the discount applied to the consideration at the date of acquisition was unwound.        

  Contingent consideration £ Deferred consideration £ Total £
At 1 January 2019 3,461,833   1,360,792   4,822,626  
Initial recognition – Vale 3,324,004     3,324,004  
Unwinding of discount 253,439   91,513   344,952  
Change in estimate (534,201 ) (64,459 ) (598,660 )
Settlement of consideration (259,006 ) (1,387,846 ) (1,646,852 )
At 31 December 2019 6,246,069     6,246,069  
Unwinding of discount 445,065     445,065  
Change in estimate (764,109 )   (764,109 )
At 31 December 2020 5,927,025     5,927,025  

The change in estimate during 2020 relates revisions to the estimated payment date of both considerations as a result of the start date of production being extended. Slightly offsetting this is the result of adverse movements in foreign exchange rates as both of the Contingent consideration amount payable are denominated in USD and the GBP/USD exchange rate fell during the year.

18 a) Royalty financing liability

On 29 August 2019 the Group entered into a royalty funding arrangement with Orion Mine Finance (“OMF”) securing a gross upfront payment of $25,000,000 before fees in exchange for a royalty, the rate being in a range from 2.25% to 3.00% and determined by the date of funding and commencement of major construction. At inception of the loan the rate was estimated at 2.45% and at the year end the rate has been estimated at 2.65%. The royalty is paid over the first 426k tonnes of nickel produced from the Araguaia Ferronickel project. The Royalty agreement has certain provisions to increase the headline royalty rate should there be delays in securing project financing beyond a pre agreed timeframe. The royalty is linked to production and therefore does not become payable until the project is constructed and commences commercial production. The agreement contains certain embedded derivatives which as per IFRS9 have been separately valued and included in the fair value of the financial instrument in note 18 b).

The Royalty liability has initially been recognised using the amortised cost basis using the effective interest rate of 14.5%. When circumstances arise that lead to payments due under the agreement being revised, the group adjusts the carrying amount of the financial liability to reflect the revised estimated cash flows. This is achieved by recalculating the present value of estimated cash flows using the original effective interest rate of 14.5%. any adjustment to the carrying value is recognised in the income statement.

     
    £
Initial recognition of Royalty   19,379,845  
Fees   (1,138,640 )
Fair value of embedded derivative on initial recognition   2,232,558  
Unwinding of discount   572,294  
Change in carrying value   91,476  
Effects of foreign exchange   (567,122 )
Value as at 31 December 2019   20,570,411  
Unwinding of discount   3,244,873  
Change in carrying value   (910,834 )
Effects of foreign exchange   (851,109 )
Value as at 31 December 2020   22,053,341  
     

Management have sensitised the carrying value of the royalty liability by an increase/decrease in the royalty rate of 0.1% and it would be £832,201 higher/lower and for a $1,000/t Ni increase/decrease in future nickel price the carrying value would increase/decrease by £1,408,077.

b) Derivative financial asset

The aforementioned agreement includes several options embedded within the agreement as follows:

  • If there is a change of control of the Group and the start of major construction works (as defined by the expenditure of in excess of $30m above the expenditure envisaged by the royalty funding) is delayed beyond a certain pre agreed timeframe the following options exist:
    • Call Option – which grants Horizonte the option to buy back between 50 – 100% of the royalty at a valuation that meets certain minimum economic returns for OMF;
    • Make Whole Option – which grants Horizonte the option to make payment as if the project had started commercial production and the royalty payment were due; and
    • Put Option – should Horizonte not elect for either of the above options, this put option grants OMF the right to sell between 50 – 100% of the Royalty back to Horizonte at a valuation that meets certain minimum economic returns for OMF.
  • Buy Back Option – At any time from the date of commercial production, provided that neither the Call Option, Make Whole Option or the Put Option have been actioned, Horizonte has the right to buy back up to 50% of the Royalty at a valuation that meets certain minimum economic returns for OMF.

The directors have undertaken a review of the fair value of all of the embedded derivatives and are of the opinion that the Call Option, Make Whole Option and Put Option currently have immaterial values as the probability of both a change of control and project delay are currently considered to be remote. There is considered to be a higher probability that the Group could in the future exercise the Buy Back Option and therefore has undertaken a fair value exercise on this option.

The initial recognition of the Buy Back Option has been recognised as an asset on the balance sheet with any changes to the fair value of the derivative recognised in the income statement. It been fair valued using a Monte Carlo simulation which runs a high number of scenarios in order to derive an estimated valuation.

The assumptions for the valuation of the Buy Back Option are the future nickel price ($16,191/t Ni), the start date of commercial production (2024), the prevailing royalty rate (2.65%), the inflation rate (1.5%) and volatility of nickel prices (22.6%).

    2019  
    £  
Initial recognition of derivative   2,232,558  
Change in fair value   75,372  
Effects of foreign exchange   (61,121 )
Value as at 31 December 2019   2,246,809  
Change in fair value   (424,500 )
Effects of foreign exchange   (65,756 )
Value as at 31 December 2020   1,756,553  
     

Sensitivity analysis

The valuation of the Buyback option is most sensitive to estimates for nickel price, nickel price volatility, royalty rate as well as the production rate. If the royalty rate is increased to 2.75% then the fair value would increase to $2,780,000 and if production reached 80% of the target capacity then the fair value would decrease to $930,000.

The nickel price volatilities based on both 5 and 10 year historic prices are in close proximity and this is the period in which management consider that the option would be exercised. Therefore, management have concluded that currently no reasonably possible alternative assumption for this estimate would give rise to a material impact on the valuation.

19 Note to statement of cash flows

Below is a reconciliation of borrowings from financial transactions:

    Royalty Financing Derivative asset Total
    £ £ £
As at 1 January 2019        
Cashflows        
Gross proceeds   19,379,845     19,379,845  
Fees   (1,138,640 )   (1,138,640 )
Non cash flows:        
Fair value of embedded derivative on initial recognition   2,232,558   (2,232,558 )  
Unwinding of discount   572,294     572,294  
Change in fair value   91,476   (75,372 ) 16,104  
Effects of foreign exchange   (567,122 ) 61,121   (506,001 )
Total non-current borrowings 31 December 2019   20,570,411   (2,246,809 ) 18,323,602  
Unwinding of discount   3,244,873     3,244,873  
Change in fair value   (910,834 ) 424,500   (486,334 )
Effects of foreign exchange   (851,109 ) 65,756   (785,353 )
Total non-current borrowings 31 December 2020   22,053,341   1,756,553   20,296,788  

20 Dividends

No dividend has been declared or paid by the Company during the year ended 31 December 2020 (2019: nil).

21 Earnings per share

(a) Basic

The basic loss per share of 0.157p loss per share (2019 loss per share: 0.219p) is calculated by dividing the loss attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

  2020   2019  
Group £   £  
Loss attributable to owners of the parent (2,277,411 ) (3,171,214 )
Weighted average number of ordinary shares in issue 1,447,323,588   1,445,504,202  

(b) Diluted

The basic and diluted loss per share for the years ended 31 December 2020 and 31 December 2019 are the same as the current year result for the year was a loss, the options and warrants outstanding would be anti-dilutive. Therefore, the dilutive loss per share is considered as the same as the basic loss per shares.

On 3 September 2020 the Group issued 3,000,000 new ordinary shares at a price of 3.1 pence per share in relation to the exercise of options by an employee of the Company.

In January 2019 the Group issued a further 13,855,487 new ordinary shares at a price of 1.875 pence per share in settlement for deferred contingent consideration due to Glencore, had this occurred prior to the end of the year this would have impacted the basic and diluted earnings per share figures.

Details of share options that could potentially dilute earnings per share in future periods are set out in note 15.

22 Related party transactions

The following transactions took place with subsidiaries in the year:

A fee totalling £nil (2019: £474,782 was charged to HM do Brazil Ltda, £nil (2019: £1,950,790) to Araguaia Níquel Metais Ltda and £nil (2019: £120,197) to Typhon Brasil Mineração Ltda by Horizonte Minerals Plc in respect of consultancy services provided and funding costs.

Amounts totalling £5,464,842 (2019: £2,545,769 ) were lent to HM Brazil (IOM) Ltd, Horizonte Nickel IOM Ltd, HM do Brasil Ltda, Araguaia Níquel Metais Ltda and Typhon Brasil Mineração Ltda to finance exploration work during 2020, by Horizonte Minerals Plc. No Interest is charged on balances outstanding during the year. The amounts are repayable on demand.

See note 27 for balances with subsidiaries at the year end.

All Group transactions were eliminated on consolidation.

23 Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

24 Directors’ remuneration (including Key Management)

  Short term benefits   Post employment benefits   Cost to Company Non-Cash  
  Aggregate emoluments OtherEmoluments1 Pensioncosts Total Social Security costs Share Based Payment Charge Grand Total
Group 2020 £ £ £ £ £ £ £
Non-Executive Directors              
Sepanta Dorri
David Hall 38,000 36,250 74,250 4,031 78,281
William Fisher 16,850 37,000 53,850 53,850
Allan Walker 47,500 32,513 80,013 9,829 89,842
Owen Bavinton 42,092 32,513 25,605 100,210 9,083 109,293
Executive Directors            
Jeremy Martin 252,000 181,283 433,283 58,580 491,863
Key Management            
Simon Retter 195,000 139,338 3,000 337,338 39,921 377,259
  591,442 458,897 28,605 1,078,944 121,444 1,200,388

1Denotes amounts payable for annual performance related bonuses

  Short term benefits   Post employment benefits   Cost to Company Non-Cash  
  Aggregate emoluments Otheremoluments Pensioncosts Total Social Security costs Share Based Payment Charge Grand Total
Group 2019 £ £ £ £ £ £ £
Non-Executive Directors              
Alexander Christopher
David Hall 30,234 32,5001 62,824 2,981 34,224 100,029
William Fisher 26,400 32,5001 58,900 29,946 88,846
Allan Walker 30,359 32,5001 62,859 7,483 29,946 100,288
Owen Bavinton 31,043 39,396 70,439 1,696 29,946 102,081
Executive Directors              
Jeremy Martin 231,130 200,0001 16,662 447,792 51,405 68,448 567,645
Key Management              
Simon Retter 155,640 94,1642 12,000 261,804 20,295 34,224 316,323
  504,896 391,664 68,058 964,618 83,860 226,735 1,275,212

1 Denotes bonuses paid regarding a long term incentive plan related to the successful publication of a Feasibility Study for Araguaia, Pre-Feasibility Study for Vermelho and closure of $25m royalty funding arrangement with OMF.

2 Includes £65,000 bonus paid regarding a long term incentive plan related to the successful publication of a Feasibility Study for Araguaia, Pre-Feasibility Study for Vermelho and closure of $25m royalty funding arrangement with OMF.

There are no other long term or termination benefits granted to key management.

The Company does not operate a pension scheme. Pension costs comprise contributions to Defined Contribution pension plans held by the relevant Director or Key Management.

25 Employee benefit expense (including Directors and Key Management)

  Group   Company  
  2020 2019 2020 2019
Group £ £ £ £
Wages and salaries 2,180,283 1,856,864 1,384,126 1,220,693
Social security costs 269,069 254,503 161,157 125,626
Indemnity for loss of office 1,315 16,865
Share options granted to Directors and employees (note 15) 326,413 326,413
  2,450,667 2,454,645 1,545,283 1,672,732
         
Management 13 10 8 8
Field staff 24 18
Average number of employees including Directors and Key Management 37 28 8 8

Employee benefit expenses includes £1,110,358 (2019: £892,500) of costs capitalised and included within the Mine Development Property.

Share options granted include costs of £nill (2019: £192,511) relating to Directors.

26 Investments in subsidiaries

  2020 2019
Company £ £
Shares in Group undertakings 2,348,142 2,348,042
  2,348,142 2,348,042

Investments in Group undertakings are stated at cost.

On 23 March 2006 the Company acquired the entire issued share capital of Horizonte Exploration Limited by means of a share for share exchange; the consideration for the acquisition was 21,841,000 ordinary shares of 1 penny each, issued at a premium of 9 pence per share. The difference between the total consideration and the assets acquired has been credited to other reserves.

27 Loans to subsidiaries

Balances with subsidiaries at the year end were:

      2020 2019
      Assets Assets
Company     £ £
HM do Brasil Ltda     944,928
HM Brazil (IOM) Ltd     6,297,961 3,149,326
Horizonte Nickel (IOM) Ltd     53,530,300 35,641,959
Araguaia Níquel Metais Ltda     10,244,040
Horizonte Minerals (IOM) Ltd     253,004 253,004
Typhon Brasil Mineração Ltda     4,378,487
Trias Brasil Mineração Ltda     801,403
Champol (IOM) Ltd     4,610,891
Total     64,692,156 55,413,147

The loans to Group undertakings are repayable on demand and currently carry no interest, however there is currently no expectation of repayment within the next twelve months and therefore loans are treated as non-current.

During the year Typhon was closed down and the intercompany loan and assets was transferred to another group company. In addition the Group undertook a restructure resulting in a transfer of some other intercompany loan balances between various group entities. The result of this restructure has been set out in the table below in addition to the other changes to the loan balances.

  1 January 2019 Amounts advanced during year Expected credit loss 2019 Transfers Amounts advanced during year Expected credit loss 2020
Company £ £ £ £ £ £ £ £
HM do Brasil Ltda 883,909 122,038 (61,019 ) 944,928 (2,173,475 ) 283,619 944,928  
HM Brazil (IOM) Ltd 3,021,172 256,308 (128,154 ) 3,149,326 2,173,473   524,962 450,200   6,297,961
Horizonte Nickel (IOM) Ltd 33,145,934 2,496,025   35,641,959 17,409,339   479,992   53,530,290
Araguaia Níquel Metais Ltda 9,747,742 496,298   10,244,040 (11,434,152 ) 1,190,112  
Horizonte Minerals (IOM) Ltd 253,004   253,004     253,004
Typhon Brasil Mineração Ltda 1,625,087 3,004,807 (251,407 ) 4,378,487 (7,967,759 ) 1,712,777 1,876,495  
Trias Brasil Mineração Ltda   (1,012,620 ) 1,012,620  
Champol (IOM) Ltd   4,150,055   1,274,283 (813,447 ) 4,610,891
Cluny (IOM) Ltd 801,403   801,403 (1,144,861 ) 343,458  
Total 49,478,251 6,375,476 (440,580 ) 55,413,147   5,464,745 3,814,254   64,692,156

The Gross and net intercompany loan position following the expected credit loss as each year end is set out below:

    2020       2019    
  Gross Loan Expected credit loss Net Loan Gross Loan Expected credit loss Net Loan
Company £ £ £ £ £ £
HM do Brasil Ltda   1,889,856 (944,928 ) 944,928
HM Brazil (IOM) Ltd 8,997,087 (2,699,126 ) 6,297,961 6,298,652 (3,149,326 ) 3,149,326
Horizonte Nickel (IOM) Ltd 53,530,300   53,530,300 35,641,959   35,641,959
Araguaia Níquel Metais Ltda   10,244,040   10,244,040
Horizonte Minerals (IOM) Ltd 253,004   253,004 253,004   253,004
Typhon Brasil Mineração Ltda   6,254,982 (1,876,495 ) 4,378,487
Trias Brasil Mineração Ltda   1,012,620 (1,012,620 )
Champol (IOM) Ltd 5,424,578 (813,687 ) 4,610,891 240 (240 )
Cluny (IOM) Ltd   1,144,861 (343,458 ) 801,403
Total 68,204,969 (3,512,813 ) 64,692,156 62,740,214 (7,327,067 ) 55,413,147

Impairment provisions for receivables and loans to related parties are recognised based on using the general approach to determine if there has been a significant increase in credit risk since initial recognition and whether the receivables and loans are credit impaired in accordance with IFRS9.

The loan to the subsidiary companies, are classified as repayable on demand.  IFRS 9 requires consideration of the expected credit risk associated with the loans.  As the subsidiary companies do not have any liquid assets to sell to repay the loan, should it be recalled, the conclusion reached was that the loan should be categorised as credit impaired.

As part of the assessment of expected credit losses of the intercompany loan receivable, the Directors have assessed the cash flows associated with a number of different recovery scenarios. This included consideration of the:

  • exploration and development project risk,
  • positive NPV of the Araguaia project as demonstrated by the Feasibility Study
  • positive NPV of the Vermelho Nickel Cobalt Project demonstrated by the Pre-Feasibility Study
  • ability to raise the finance to develop the projects
  • ability to sell the projects
  • market and technical risks relating to the projects
  • participation of the subsidiaries in the Araguaia project

The directors have concluded that certain amounts may not be fully recovered giving rise to the expected credit loss adjustment. After taking into consideration all of the above factors the rate of expected credit loss varies from 0% (2019: 0%) for the Araguaia project, to 30% (2019: 50%) for the receivables from HM Brazil and 15% (2019: 30%) for the Vermelho Project. The reduction in expected credit loss assessment for HM Brazil is due Araguaia’s the further progress towards development and continuing improving prospects for Vermelho.

The credit loss allowance was assessed at the date of 31 December 2020. 

28 Commitments

Capital expenditure contracted for at the end of the reporting period but not yet incurred is as follows:

  2020 2019
Group £ £
Mine Development Property 7,314,000

The Company has conditional capital commitments totalling £7.3 million ($10m) relating to certain items of plant and equipment. These commitments remain subject to a number of conditions precedent which have not been met at the date of this report. $1.5m of the purchase will be payable upon completion with the remaining amounts payable over future periods with $5m payable after commencement of sales by the Araguaia project. $1.5m of the purchase will be payable upon completion with the remaining amounts payable over future periods with $5m payable after commencement of sales by the Araguaia project.   

29 Contingent Liabilities

Other Contingencies

The Group has received a claim from various trade union organisations in Brazil regarding outstanding membership fees due in relation to various subsidiaries within the Group. Some of these claims relate to periods prior to the acquisition of the relevant subsidiary and would be covered by warranties granted by the previous owners at the date of sale. The Directors are confident that no amounts are due in relation to these proposed membership fees and that the claims will be unsuccessful. No subsequent actions, claims or communications from the various trade union organisations have been received subsequent to the requests for payment. As a result, no provision has been made in the Financial Statements for the year ended 31 December 2020 for amounts claimed. Should the claim be successful, the maximum amount payable in relation to fees not subject to the warranty agreement would be approximately £64,000.

In December 2014, the Group received a writ from the State Attorney in Conceição do Araguaia regarding alleged environmental damages caused by drilling activities in 2011. To ensure proper environmental stewardship, the Group conducts certified baseline studies prior to all drill programmes and ensures that areas explored are properly maintained and conserved in accordance with local environmental legislation. After drilling has occurred, drill sites and access routes are rehabilitated to equal or better conditions and evidence is retained to demonstrate that such rehabilitation work has been completed. In January 2015 the Group filed a robust defence against the writ. A court hearing was held in May 2015 at which documents were requested to confirm that valid environmental authorisations were in place. These were subsequently submitted as requested. No substantive financial claim continues to be made against the Group under the terms of the writ. The Group continues to believe that the writ is flawed and is working towards having it withdrawn in due course. As a result, no provision has been made in the Financial Statements for the year ended 31 December 2020.

30 Financial Instruments

Financial Assets

    Fair Value Amortised cost Total Fair Value Amortisedcost Total
      2020 2020 2020 2019 2019   2019
Group     £ £ £ £ £   £
Cash and cash equivalents     10,935,563 10,935,563 17,760,330   17,760,330
Derivative financial asset     1,756,553 1,756,553 2,246,809   2,246,809
Trade and other receivables     270,540 270,540 134,726   134,726
Total     1,756,553 11,206,103 12,962,656 2,246,809 17,895,056   20,141,865
      Amortised cost
      2020   2019
Company     £   £
Cash and cash equivalents     5,308,954   17,393,773
Loans to subsidiaries     64,692,156   55,413,060
Trade and other receivables     96,196   135,376
Total     70,097,306   72,942,209

Financial Liabilities

        Amortised cost 
      2020     2019
Group     £     £
Trade and other payables     632,407     683,933
Contingent consideration     5,927,026     6,246,071
Royalty Finance     22,053,341     20,570,411
Total     28,612,774     27,500,415
        Amortised cost
      2020     2019
Company     £     £
Trade and other payables     280,179     321,588
Contingent consideration     5,927,036     6,246,071
Loans from subsidiary     12,194,094     17,735,009
Total     18,401,309     24,302,668

Financial instruments not measured at fair value includes cash and cash equivalents, trade and other receivables, trade and other payables, and, contingent and deferred consideration which are discounted.

31 Parent Company Guarantee

Horizonte Minerals plc has, together with other group companies, provided a parent guarantee to Orion Mine Finance related to the $25 Million Royalty Financing arrangement granted by Nickel Production Services B.V. in respect of the project owned by Araguaia Níquel Metais Ltda during the financial year. The royalty payments are conditional upon entering into commercial production and therefore cannot become due until this is achieved. Horizonte Mineral plc’s obligation to pay under the guarantee only arises if Nickel Production Services B.V. as grantor of the royalty or any of the other provider of a parent guarantee fails to make any payment under the royalty agreement. The Company considers the probability of such scenarios to be minimal at the current stage of the business’ development and therefore any fair value assessment of such potential financial liability has been deemed to be immaterial

32 Events after the reporting dateOn 23 February 2021 the company announced a £18.8 million fund raise comprising approximately £12.2m received for the issue of issued 162,718,353 new ordinary shares by way of a placing, alongside approximately £6.6m for the issue of 88,060,100 special warrants, which entitled the holder to convert the warrants into ordinary shares in the company following the publication of a prospectus to meet the requirement of the Toronto Stock Exchange.

Source: Horizonte Minerals Plc

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ICG US CLO 2018-3, Ltd. — Moody’s assigns ratings to four classes of CLO refinancing notes issued by ICG US CLO 2018-3, Ltd. https://1cplusplusstreet.com/icg-us-clo-2018-3-ltd-moodys-assigns-ratings-to-four-classes-of-clo-refinancing-notes-issued-by-icg-us-clo-2018-3-ltd/ https://1cplusplusstreet.com/icg-us-clo-2018-3-ltd-moodys-assigns-ratings-to-four-classes-of-clo-refinancing-notes-issued-by-icg-us-clo-2018-3-ltd/#respond Fri, 14 May 2021 09:14:13 +0000 https://1cplusplusstreet.com/?p=607 Rating Action: Moody’s assigns ratings to four classes of CLO refinancing notes issued by ICG US CLO 2018-3, Ltd.Global Credit Research – 07 Apr 2021New York, April 07, 2021 — Moody’s Investors Service (“Moody’s”) has assigned ratings to four classes of CLO refinancing notes (the “Refinancing Notes”) issued by ICG US CLO 2018-3, Ltd. (the […]]]>

Rating Action: Moody’s assigns ratings to four classes of CLO refinancing notes issued by ICG US CLO 2018-3, Ltd.Global Credit Research – 07 Apr 2021New York, April 07, 2021 — Moody’s Investors Service (“Moody’s”) has assigned ratings to four classes of CLO refinancing notes (the “Refinancing Notes”) issued by ICG US CLO 2018-3, Ltd. (the “Issuer”).Moody’s rating action is as follows:U.S.$256,000,000 Class A-R Senior Secured Floating Rate Notes due 2032 (the “Class A-R Notes”), Assigned Aaa (sf)U.S.$39,800,000 Class B-1-R Senior Secured Floating Rate Notes due 2032 (the “Class B-1-R Notes”), Assigned Aa2 (sf)U.S.$5,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2032 (the “Class B-2-R Notes”), Assigned Aa2 (sf)U.S.$20,200,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2032 (the “Class C-R Notes”), Assigned A2 (sf)RATINGS RATIONALEThe rationale for the ratings is based on our methodology and considers all relevant risks particularly those associated with the CLO’s portfolio and structure.The Issuer is a managed cash flow collateralized loan obligation (CLO). The issued notes are collateralized primarily by a portfolio of broadly syndicated senior secured corporate loans.ICG Debt Advisors LLC — Manager Series (the “Manager”) will continue to direct the selection, acquisition and disposition of the assets on behalf of the Issuer and may engage in trading activity, including discretionary trading, during the transaction’s remaining reinvestment period.The Issuer previously issued two other classes of secured notes and one class of subordinated notes, which will remain outstanding.In addition to the issuance of the Refinancing Notes, a variety of other changes to transaction features will occur in connection with the refinancing. These include: extension of the non-call period; the inclusion of alternative benchmark replacement provisions; additions to the CLO’s ability to hold workout and restructured assets, changes to the definition of “Adjusted Weighted Average Moody’s Rating Factor”.Moody’s modeled the transaction using a cash flow model based on the Binomial Expansion Technique, as described in “Moody’s Global Approach to Rating Collateralized Loan Obligations.”The key model inputs Moody’s used in its analysis, such as par, weighted average rating factor, diversity score and weighted average recovery rate, are based on its published methodology and could differ from the trustee’s reported numbers. For modeling purposes, Moody’s used the following base-case assumptions:Performing par and principal proceeds balance: $400,000,000Defaulted par: $0Diversity Score: 70Weighted Average Rating Factor (WARF): 3033Weighted Average Spread (WAS) (before accounting for LIBOR floors): 3.71%Weighted Average Recovery Rate (WARR): 46.87%Weighted Average Life (WAL): 5.78 yearsPar haircut in OC tests and interest diversion test: 1.13%In consideration of the current high uncertainties around the global economy, and the ultimate performance of the CLO portfolio, Moody’s conducted a number of additional sensitivity analyses representing a range of outcomes that could diverge, both to the downside and the upside, from our base case. Some of the additional scenarios that Moody’s considered in its analysis of the transaction include, among others: additional near-term defaults of companies facing liquidity pressure; an additional cashflow analysis assuming a lower WAS to test the sensitivity to LIBOR floors; sensitivity analysis on deteriorating credit quality due to a large exposure to loans with negative outlook, and a lower recovery rate assumption on defaulted assets to reflect declining loan recovery rate expectations.The coronavirus pandemic has had a significant impact on economic activity. Although global economies have shown a remarkable degree of resilience to date and are returning to growth, the uneven effects on individual businesses, sectors and regions will continue throughout 2021 and will endure as a challenge to the world’s economies well beyond the end of the year. While persistent virus fears remain the main risk for a recovery in demand, the economy will recover faster if vaccines and further fiscal and monetary policy responses bring forward a normalization of activity. As a result, there is a heightened degree of uncertainty around our forecasts. Our analysis has considered the effect on the performance of corporate assets from a gradual and unbalanced recovery in the US economic activity.We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety.Methodology Underlying the Rating Action:The principal methodology used in these ratings was “Moody’s Global Approach to Rating Collateralized Loan Obligations” published in December 2020 and available at https://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1242167. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Factors That Would Lead to an Upgrade or Downgrade of the Ratings:The performance of the rated notes is subject to uncertainty. The performance of the rated notes is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The Manager’s investment decisions and management of the transaction will also affect the performance of the rated notes.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody’s Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.Further information on the representations and warranties and enforcement mechanisms available to investors are available on http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1276138.The analysis relies on an assessment of collateral characteristics to determine the collateral loss distribution, that is, the function that correlates to an assumption about the likelihood of occurrence to each level of possible losses in the collateral. As a second step, Moody’s evaluates each possible collateral loss scenario using a model that replicates the relevant structural features to derive payments and therefore the ultimate potential losses for each rated instrument. The loss a rated instrument incurs in each collateral loss scenario, weighted by assumptions about the likelihood of events in that scenario occurring, results in the expected loss of the rated instrument.Moody’s quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows. Moody’s weights the impact on the rated instruments based on its assumptions of the likelihood of the events in such scenarios occurring.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.At least one ESG consideration was material to the credit rating action(s) announced and described above.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Yevgeniy Neverov Associate Analyst 1 Structured Finance Group Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 David H. Burger VP – Senior Credit Officer Structured Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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ISDH: 701 new COVID-19 cases; 18 more deaths – WISH-TV | Indianapolis News | Indiana Weather https://1cplusplusstreet.com/isdh-701-new-covid-19-cases-18-more-deaths-wish-tv-indianapolis-news-indiana-weather/ https://1cplusplusstreet.com/isdh-701-new-covid-19-cases-18-more-deaths-wish-tv-indianapolis-news-indiana-weather/#respond Fri, 14 May 2021 08:34:19 +0000 https://1cplusplusstreet.com/?p=586 INDIANAPOLIS (WISH) – New COVID-19 data has been released by the Indiana State Department of Health. ISDH says 701 more Hoosiers have tested positive for COVID-19. Those tests were recorded on March 22. A total of 679,079 Hoosiers have tested positive for COVID-19. ISDH says 18 more Hoosiers have died from COVID-19. The deaths occurred […]]]>

INDIANAPOLIS (WISH) – New COVID-19 data has been released by the Indiana State Department of Health.

ISDH says 701 more Hoosiers have tested positive for COVID-19. Those tests were recorded on March 22.

A total of 679,079 Hoosiers have tested positive for COVID-19.

ISDH says 18 more Hoosiers have died from COVID-19. The deaths occurred between Nov. 19 and March 22.

A total of 12,553 Hoosiers have died from COVID-19. Another 406 “probable” deaths have occurred but a positive test is not on record.

The 7-day positivity rate for unique individuals stands at 8.7%. The 7-day positivity rate for all tests is 3.3%.

There are currently 596 Hoosiers hospitalized with COVID-19.

A total of 8,681,198 tests have been administered to 3,221,661 Hoosiers.

ISDH says 2,439,523 vaccination doses have been administered to Hoosiers, and 970,161 Hoosiers are fully vaccinated.

To register for a vaccine appointment, click here.

According to the Regenstrief Institute, 649,403 Hoosiers are estimated to have recovered from the virus.

According to the Center for Systems Science and Engineering at Johns Hopkins University, there have been more than 123,810,000 confirmed cases worldwide, with more than 70,256,000 recoveries and more than 2,725,000 deaths.

More information, including interactive graphs, can be found here.

Coronavirus links

Indiana coronavirus timeline

With information from the Indiana Department of Health through March 4, 2021, this timeline reflects updated tallies of deaths and positive tests prior to that date.

  • March 6, 2020: Indiana State Department of Health (ISDH) confirms the first case in Indiana. Officials say the Marion County resident had recently traveled to Boston to attend a BioGen conference as a contractor.
  • March 8: ISDH confirms a second case. A Hendricks County adult who had also traveled to the BioGen conference was placed in isolation. Noblesville Schools says a parent and that parent’s children will self-quarantine after attending an out-of-state event where someone tested positive.
  • March 9: Avon Community School Corp. says a student on March 8 tested positive.
  • March 10: ISDH launches an online tracker. Ball State University basketball fans learn the Mid-American Conference tourney will have no fans in the stands. Three businesses operating nursing homes in Indiana announce they will no longer allow visitors.
  • March 11: The Indianapolis-based NCAA announces the Final Four basketball tournaments will happen with essential staff and limited family attendance. The Big Ten announces all sports events, including the men’s basketball tournament at Bankers Life Fieldhouse, will have no fans starting March 12. Ball State University suspends in-person classes the rest of the spring semester. NBA suspends all games, including the Indiana Pacers, until further notice. Butler University and the University of Indianapolis extend spring break, after which they will have virtual classes.
  • March 12: Gov. Eric Holcomb announces new protections that led to extended public school closings and the cancellation of large events across the state. The NCAA cancels its basketball tournaments. The Big Ten suspends all sporting events through the winter and spring seasons. The league including the Indy Fuel hockey team suspends its season. Indy Eleven says it will reschedule four matches. Indianapolis’ annual St. Patrick’s Day Parade is canceled. 
  • March 13: The Indiana High School Athletic Association postpones the boys basketball tournament. Wayzata Home Products, a Connersville cabinet maker, shuts down and lays off its entire workforce due to market uncertainty. Holcomb announces actions including the elimination of Medicaid co-pays for COVID-19 testing and the lifting of limits on the number of work hours per day for drivers of commercial vehicles. Franklin College says it will begin online classes March 18 and empty residence halls of students in two days. The Children’s Museum of Indianapolis closes indefinitely. The Indianapolis Public Library joins other libraries across Indiana and closes all facilities indefinitely.
  • March 14: The Indiana Gaming Commission says all licensed gaming and racing operations will close in two days for an indefinite period.
  • March 15: Indiana had its first death. St. Vincent Hospital in Indianapolis announces it will suspend all elective, non-urgent surgeries.
  • March 16: Indiana had its second death. Gov. Holcomb announced the first Hoosier death. He closes bars, restaurants and nightclubs to in-person patrons, but maintains carryout and delivery services.
  • March 17: Indiana had its third and fourth deaths. ISDH announces Indiana’s second death. Gov. Holcomb activates the National Guard. Purdue, Butler and Indiana State universities cancel May commencement ceremonies.
  • March 18: Indiana had its fifth death. Eli Lilly and Co. says it will use its labs to speed up testing in Indiana. The 500 Festival suspends all events. Simon Property Group closes all malls and retail properties.
  • March 19: Holcomb extends Indiana’s state of emergency into May. Holcomb says he’ll close all K-12 public and nonpublic schools; standardized testing was canceled. The state’s income-tax and corporate-tax payment deadline was extended to July 15. Holcomb says the state will waive job search requirements for people applying for Temporary Assistance to Needy Families. Indiana’s high school boys basketball tournament was canceled.
  • March 20: Indiana’s death toll rose to 9. ISDH announces Indiana’s third death. Holcomb moves the state’s primary election to June 2. Indiana University says it is postponing May commencement ceremonies on all campuses.
  • March 21: Indiana’s death toll rises to 14. ISDH announces Indiana’s fourth death. Indiana National Guard says it and the state Department of Transportation are distributing medical supplies to hospitals.
  • March 22: Indiana’s death toll rises to 18. ISDH announces seven deaths.
  • March 23: Indiana’s death toll rises to 23. Holcomb orders nonessential Hoosiers to “stay at home” from March 24-April 7. Eli Lilly & Co. begins drive-thru testing for the coronavirus for health care workers with a doctor’s order. Ball State University cancels the May commencement.
  • March 24: Indiana’s death toll rises to 28. Fred Payne of Indiana Workforce Development says any Hoosiers out of work, including temporary layoffs, are eligible to apply for unemployment benefits.
  • March 25: Indiana’s death toll rises to 33. Indianapolis Motor Speedway announces the Indianapolis 500 is moved to Aug. 23.
  • March 26: Indiana’s death toll rises to 42.
  • March 27: Indiana’s death toll rises to 45.
  • March 28: Indiana’s death toll rises to 58.
  • March 29: Indiana’s death toll rises to 77.
  • March 30: Indiana’s death toll rises to 91.
  • March 31: Indiana’s death toll rises above 100, to 113. Holcomb extends the limits of bars and restaurants to offer only “to go” and “carryout” through April 6.
  • April 1: Officials extend Marion County’s “stay at home” order through May 1. Marion County health officials say they will start COVID-19 testing services for front-line employees.
  • April 2: The state announces K-12 schools will be closed for the rest of the school year. Indiana High School Athletic Association cancels spring sports seasons.
  • April 3: Holcomb extends the “stay at home” order through April 20. The Indiana National Guard says it, the Army Corps of Engineers and state health officials will begin to assess sites for alternate health care facilities.
  • April 6: The state reports a Madison County nursing home has had 11 deaths. Holcomb extends the “stay at home” order through April 20. He also limits additional businesses to carry-out only.
  • April 7: Indiana health commissioner Box says four long-term care facilities have 22 deaths that appear to be related to COVID-19.
  • April 10: ISDH said 24 residents of a long-term care facility in Madison County have died from COVID-related illness.
  • April 14: Indiana’s death toll rises above 500.
  • April 16: Indiana records more than 10,000 positive coronavirus tests. The governor says he expects Indiana to experience a reopening in early May.
  • April 20: Holcomb extends the “stay at home” order to May 1. The governor also says if the medical supply chain is in good shape, other elective medical procedures can resume April 27.
  • April 22: The Tyson facility in Logansport voluntarily closes so 2,200 employees can be tested for COVID-19.
  • April 24: The Indianapolis City-County Council approves $25 million to help small businesses. Fishers City Council creates a city health department.
  • April 25: ISDH says it will launch an antibody testing study for Hoosiers; thousands of residents were randomly selected to participate in the study.
  • April 27: Indiana’s death toll rises above 1,000.
  • April 28: Indiana officials say they will open COVID-19 testing to more Hoosiers, with expanded criteria and new testing services at 20 sites around the state.
  • April 29: The state says it will spent $43 million on contact tracing.
  • April 30: Indianapolis extends its stay-at-home order through May 15.
  • May 1: Gov. Holcomb announces a phased reopening plan for the state of Indiana. He also extends the “stay at home” order to May 4.
  • May 3: Indiana records more than 20,000 positive coronavirus tests.
  • May 4: Indiana enters Stage 2 of its Back on Track plan, which excludes Cass County until May 18, and Lake and Marion counties until May 11.
  • May 6:The state begins testing for all Hoosiers at 20 sites, with plans to expand the number of sites to 50 in a week. Ivy Tech Community College says it will continue virtual classes when summer courses begin in June. 
  • May 8: Cris Johnston, director of the Office of Budget and Management, says the state missed out on nearly $1 billion in anticipated April revenues; all state agencies will be given budget-cutting goals. Purdue University OKs plans to reopen for the fall semester with social distancing and other safety measures.
  • May 13: The first phase of a state-sponsored study of the coronavirus estimated about 186,000 Hoosiers had COVID-19 or the antibodies for the novel virus by May 1. Indianapolis Mayor Joe Hogsett announced plans for limited reopenings of worship services, retail establishments, libraries and restaurants.
  • May 15: Simon Property Group reopens Castleton Square Mall, Circle Centre Mall, and Fashion Mall at Keystone
  • May 18: Indiana reports its first case of multisystem inflammatory syndrome in a child. The Farbest Foods turkey-processing plant in Huntingburg is closed for three days; 91 people had tested positive there.
  • May 21: Indiana records more than 30,000 positive coronavirus tests.
  • May 22: Indiana advances to Stage 3 of the Back on Track reopening plan. Indianapolis closes portions of five streets to allow restaurants to reopen with outdoor dining only.
  • May 26: Indiana’s death toll rises above 2,000.
  • May 27: Indiana University says the fall semester will have in-person and online courses, plus an adjusted calendar through May 2021. Ball State University says the fall semester will be 13 straight weeks of in-person classes with no day off on Labor Day and no fall break.
  • May 29: Places of worship in Marion County can begin holding indoor services at 50% capacity with proper social distancing. Jim Schellinger, Indiana secretary of commerce, said the federal Paycheck Protection Program has made 73,430 loans in Indiana totaling $9,379,164,461, the federal Economic Injury Disaster Loan program has made 5,070 loans in Indiana totaling $445,428,500, and the federal Economic Injury Disaster Loans Advance program has made 38,365 grants in Indiana totaling $136,554,000.
  • June 1: Marion County restaurants begins serving customers indoors and outdoors with 50% capacity. Marion County salons, tattoo parlors reopen by appointment only. Marion County gyms, fitness centers and pools reopen with 50% capacity and no contact sports. However, a Marion County curfew that began the night of May 31 and continued into the morning of June 3 after rioting impacted the reopening of some businesses.
  • June 3: Phase 2 of statewide testing of random Hoosiers by the Indiana University Richard M. Fairbanks School of Public Health at IUPUI and the Indiana State Department of Health begins.
  • June 5: Indiana reports May tax revenues were 20% short of projections made before the coronavirus closings started.
  • June 8: Indianapolis leaders agree to spend $79 million in coronavirus relief funding on contact tracing, rent relief, personal protective equipment and support for small businesses.
  • June 12: Indiana, excluding Marion County, advances to Stage 4 of reopening plan.
  • June 15: Casinos and parimutuel racing reopen in the state. Marion County’s public libraries begin a phased reopening. Indiana records more than 40,000 positive coronavirus tests.
  • June 19: Marion County advances to Stage 4 of state’s reopening plan.
  • June 24: Holcomb says the state’s moratorium on the eviction on renters will be extended through July. Indiana announces it will create a rental assistance program July 13. Indiana Pacers guard Malcolm Brogdon says he has tested positive for COVID-19.
  • June 27: Indiana hospitalizations for COVID-19 begin to increase, with about 33 new patients a day through July 1.
  • July 1: The governor pauses Stage 5 final reopening plan, announces Stage 4.5 from July 4-17.
  • July 4: Indiana’s Stage 4.5 reopening plan begins.
  • July 9: Indiana records more than 50,000 positive coronavirus tests. Marion County mandates mask-wearing.
  • July 10: Indianapolis Public Schools announces its reopening plans.
  • July 11: Indy Eleven resumes 2020 season with victory at Lucas Oil Stadium. The Children’s Museum of Indianapolis reopens.
  • July 13: Indiana begins rental assistance program for all counties but Marion County. Marion County begins its own rental assistance program.
  • July 15: Indiana announces the Stage 4.5 reopening plan will continue another two weeks. The WNBA season begins.
  • July 16: Indianapolis suspends applications for its rental assistance program due to overwhelming demand.
  • July 24: Bars, taverns and nightclubs in Indianapolis are shut down again. City officials also return to other previous restrictions.
  • July 25: Indiana Fever begins WNBA season after delays.
  • July 27: Indiana governor’s order to wear face coverings begins. Great Lakes Valley Conference, which including University of Indianapolis, postpones most fall sports, including football, men’s and women’s soccer, and volleyball, until spring.
  • July 30: NBA season resumes.
  • Aug. 4: Indianapolis Motor Speedway announces the Aug. 23 Indianapolis 500 will be run without fans.
  • Aug. 9: Indiana records more than 75,000 positive coronavirus tests.
  • Aug. 11: Indiana’s death toll rises above 3,000.
  • Aug. 17: Indianapolis Public Schools restarts with online-only classes. News 8 learns the 2021 NBA All-Star Game will not happen on Presidents Day weekend in 2021.
  • Aug. 20: Purdue University suspends 36 students after a party at a cooperative house.
  • Aug. 21: Indiana high school football season begins with some teams not playing due to COVID-19 concerns.
  • Aug. 23: Butler University tells undergraduates that instruction will occur remotely for the first two weeks of the semester, starting Aug. 24, instead of in classrooms.
  • Aug. 24: Purdue, Indiana, IUPUI and Ball State universities resume in-person classes.
  • Aug. 25: Reports say a fraternity, a sorority and a cooperative house at Purdue University are under quarantines.
  • Aug. 26: Gov. Holcomb extends the mask mandate through Sept. 25. Indiana’s rental assistance program will take applications for one last day.
  • Aug. 27: Indiana University says eight Greek houses are under 14-day quarantines.
  • Sept. 2: Indiana University tells 30 Greek houses in Bloomington to quarantine.
  • Sept. 6: Indiana records more than 100,000 positive coronavirus tests.
  • Sept. 8: Marion County allows bars and nightclubs to reopen with 25% capacity indoors and 50% capacity outdoors.
  • Sept. 12: The Indianapolis Colts open their season with a loss in a Jacksonville stadium with a limited number of fans.
  • Sept. 21: The Indianapolis Colts home opener is limited to 2,500 fans.
  • Sept. 23: Gov. Eric Holcomb extends the mask mandate through Oct. 17.
  • Sept. 24: The state’s mask mandate is extended through Oct. 17.
  • Sept. 25: The Mid-American Conference announces it will start a six-game football season Nov. 4, with the championship game Dec. 18 or 19.
  • Sept. 26: Indiana advances to a revised Stage 5 of Indiana Back on Track plan with relaxed limits on gatherings, restaurants, bars, nightclubs and more. Marion, Monroe and Tippecanoe counties decided to have more restrictive limits, however.
  • Sept. 27: The Indianapolis Colts second home game is limited to 7,500 fans.
  • Sept. 28: Purdue University says it’s suspended 14 students, including 13 student-athletes, for violations of a pledge designed to curb the coronavirus pandemic on campus.
  • Sept. 30: The Indiana State Department of Health’s online coronavirus dashboard began showing data on positive coronavirus cases in Indiana schools.
  • Oct. 1: IU’s website shows two additional fraternities and a sorority at the Bloomington campus have been issued “cease and desist” orders.
  • Oct. 2: Franklin College suspends classes and moves to virtual education and activities through Oct. 9 after a “concerning and unusual” increase in the positivity rate for COVID-19.
  • Oct. 12: Franklin College returns to in-person classes.
  • Oct. 13: Indianapolis-based drugmaker Lilly pauses its trial of a combination antibody treatment for coronavirus for safety reasons.
  • Oct. 14: Indiana health commissioner Dr. Kristina Box announces she has tested positive for COVID-19.
  • Oct. 15: Gov. Holcomb issues executive order to extend mask mandate and Stage 5 reopening plan.
  • Oct. 16: Indiana’s death toll rises above 4,000.
  • Oct. 18: The Indianapolis Colts third home game was limited to 12,500 fans.
  • Oct. 23: The Big Ten begins its football season.
  • Oct. 30: Gov. Holcomb extends the public health emergency through Dec. 1.
  • Nov. 1: Indiana National Guard to begin deploying to long-term care facilities to provide coronavirus assistance. The Mid-American Conference football teams begins its six-game regular season.
  • Nov. 5: Indiana records more than 200,000 positive coronavirus tests.
  • Nov. 8: The Indianapolis Colts fourth home game was limited to 12,500 fans. .
  • Nov. 10: Indiana’s death toll rises to 5,000.
  • Nov. 12: Indianapolis calls for schools to go to virtual learning by Nov. 30.
  • Nov. 15: Indiana adds coronavirus-control restrictions for all businesses and gatherings in counties with the highest number of new cases as part of an update to the statewide COVID-19 pandemic response.
  • Nov. 16: Indianapolis limits capacity inside bars, private clubs, fraternal organizations and gyms to 25%; inside restaurants, libraries, funeral homes, swimming pools and shopping malls’ food courts to 50%; and inside religious services to 75%. Marion County Health Department requires preregistration for COVID-19 testing after increased demand at three drive-thru locations.
  • Nov. 22: Indiana records more than 300,000 positive coronavirus tests.
  • Nov. 23: Indianapolis Public Schools returns to virtual learning through Jan. 18.
  • Nov. 24: The NCAA men’s and women’s basketball seasons begin; some games had no fans in the stands.
  • Nov. 25: Indiana’s death toll rises above 6,000.
  • Nov. 26: Butler University men’s basketball cancels Nov. 29 game against Eastern Illinois after a positive COVID-19 test.
  • Nov. 28: Butler University men’s basketball team postponed two more games because of a positive COVID-19 test.
  • Dec. 1: Bankers Life Fieldhouse hosts its first NCAA men’s basketball game, Kansas vs. Kentucky, since the start of the pandemic.
  • Dec. 2: Indianapolis ends its rental assistance program.
  • Dec. 5: The men’s basketball game of No. 1 Gonzaga and No. 2, Baylor at Bankers Life Fieldhouse is postponed 90 minutes before tipoff after two Bulldogs test positive.
  • Dec. 6: Indiana’s death toll rises above 7,000.
  • Dec. 9: Indiana records more than 404,000 positive coronavirus tests. Holcomb says virus restrictions will now by county based on ratings that show the local virus spread. Indiana and Purdue universities cancel the Old Oaken Bucket football game set for Dec. 12.
  • Dec. 10: Indiana House Speaker Todd Huston says he tested positive for COVID-19.
  • Dec. 11: The Pacers lose to the Cavaliers as the NBA preseason begins. The Carmel Walmart in Westfield closes for nearly two days to sanitize the store.
  • Dec. 12: Ball State University President Geoffrey Mearns tests positive for the coronavirus.
  • Dec. 14: Health care workers receive the first coronavirus vaccinations in Indiana.
  • Dec. 15: Vice President Mike Pence holds a roundtable in Bloomington at pharmaceutical maker Catalent on the distribution of COVID-19 vaccines. Indiana and Purdue again cancel the Old Oaken Bucket football game that’d been reset for Dec. 18.
  • Dec. 16: Indiana’s death toll rises above 8,000.
  • Dec. 20: The Indianapolis Colts allows up to 10,000 attendees at Lucas Oil Stadium for the team’s game against the Houston Texans.
  • Dec. 22: NBA starts league’s 75th season, delayed and shortened to a 72-game schedule because of the pandemic.
  • Dec. 23: In response to the high volume of unemployment claims, Holcomb extends the suspension of certain requirements to expedite the hiring and training of temporary workers to more quickly resolve unemployment issues. Indiana Pacers to host first home game against New York Knicks with no fans present.
  • Dec. 27: Indiana’s death toll rises above 9,000.
  • Dec. 29: Indiana records more than 500,000 positive coronavirus tests.
  • Dec. 31: Indiana’s death toll for 2020 is 9,459 (as recorded through March 4, 2021).
  • Jan. 1, 2021: Indiana’s death toll rises above 9,500.
  • Jan. 3: The Indianapolis Colts allow 10,000 attendees at Lucas Oil Stadium for the team’s game against the Jacksonville Jaguars.
  • Jan. 4: Grades 1-12 schools in Marion County are allowed reopen to in-person learning. Perry Township Schools is the only district to reopen to in-person learning.
  • Jan. 5: Purdue and Nebraska postpone a men’s basketball game over health and safety concerns.
  • Jan. 7: Indiana’s death toll rises above 10,000.
  • Jan. 8: Hoosiers 80 and older start receiving the coronavirus vaccine.
  • Jan. 13: Hoosiers 70 and older can get the coronavirus vaccine.
  • Jan. 18: NFL announces the scouting combine will not happen in Indianapolis in February.
  • Jan. 20: Indiana records more than 601,000 positive coronavirus tests. Indiana Pacers host up to 1,000 at a game at Bankers Life Fieldhouse, the first fans since the pandemic began.
  • Jan. 21: Indiana’s death toll rises above 11,000.
  • Feb. 1: Hoosiers 65 and older can get the coronavirus vaccine. The Indianapolis St. Patrick’s Day parade is canceled for the second year in a row.
  • Feb. 4: More than 1,500 coronavirus deaths were added to the Indiana State Department of Health’s dashboard after an audit found they were not recorded. News 8 learns all games for the Big Ten men’s basketball tourney will move from Chicago to Indianapolis’ Lucas Oil Stadium.
  • Feb. 7: Indiana to change school protocols for classroom quarantine and contact tracing.
  • Feb. 14: Indiana’s death toll rises above 12,000. Indiana records more than 650,000 positive coronavirus tests.
  • Feb. 17: Indiana officials announced plans for a $448 million program to give housing assistance to Hoosiers.
  • Feb. 19: The NCAA says up to 25% capacity will be allowed for all rounds of the men’s basketball tourney including the Final Four. The Indianapolis Motor Speedway announces the May 30 Indianapolis 500 will have fans.
  • Feb. 19: Indiana’s death toll rises above 12,100.
  • Feb. 23: Hoosiers 60 and older can get the coronavirus vaccine.
  • Feb. 25: Indiana records more than 660,000 positive coronavirus tests. Capacity limits at bars, restaurants, gyms, and music venues in Marion County were adjusted after a consistent trend in the community’s COVID-19 positivity rate.
  • Feb. 25: Indiana’s death toll rises to 12,200.
  • Feb. 28: Indiana National Guardsmen to end assistance to long-term care facilities.
  • March 1: The 500 Festival Mini-Marathon says it will be virtual for the second year in a row.
  • March 2: Hoosiers 55 and older start receiving the coronavirus vaccine.
  • March 3: Hoosiers 50 and older start receiving the coronavirus vaccine.
  • March 4: News 8 learns up 8,000 fans will be allowed in Lucas Oil Stadium for Big Ten men’s basketball tournament games. Indiana records more than 665,000 positive coronavirus tests.
  • March 5: A three-day, drive-thru, mass-vaccination clinic opens at Indianapolis Motor Speedway for 16,800 Hoosiers.
  • March 12: A two-day, drive-thru, mass-vaccination clinic was set for Ivy Tech Community College in Sellersburg.
  • March 18: NCAA men’s March Madness games, all of them at venues in Indiana, to start with First Four games in Bloomington and West Lafayette.
  • March 26: A two-day, drive-thru, mass-vaccination clinic was set for Compton Family Ice Arena at the University of Notre Dame.
  • March 31: Holcomb’s emergency declaration with county-based restrictions and a mask mandate set to end at 11:59 p.m.
  • May 4: Indianapolis Indians set to begin delayed season with away game against Iowa Cubs.
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Michigan man gets release from prison 26 years after conviction for prison informant testimony https://1cplusplusstreet.com/michigan-man-gets-release-from-prison-26-years-after-conviction-for-prison-informant-testimony/ https://1cplusplusstreet.com/michigan-man-gets-release-from-prison-26-years-after-conviction-for-prison-informant-testimony/#respond Wed, 07 Apr 2021 23:16:33 +0000 https://1cplusplusstreet.com/michigan-man-gets-release-from-prison-26-years-after-conviction-for-prison-informant-testimony/ DETROIT – A man convicted of murder based on the testimony of a prison informant should be released after spending 26 years in prison, The Associated Press reports. Authorities recently concluded that the informant’s testimony was unreliable, making the 1994 trial and conviction of Larry D. Smith, 45, “not just,” the Wayne County District Attorney […]]]>

DETROIT – A man convicted of murder based on the testimony of a prison informant should be released after spending 26 years in prison, The Associated Press reports.

Authorities recently concluded that the informant’s testimony was unreliable, making the 1994 trial and conviction of Larry D. Smith, 45, “not just,” the Wayne County District Attorney said, Kym Worthy, whose Conviction Integrity Unit recently reviewed the case.

A judge is expected to dismiss Smith’s conviction today, the AP reports.

Smith, of Detroit, was 18 when he was accused of killing Kenneth Hayes, according to the report. No one said they saw his face during the crime, and there was no “conclusive forensic evidence” connecting him, the prosecutor’s office said.

The conviction was based on testimony from a prison informant who claimed Smith confessed to him, according to the report. However, the informant could have been lying to gain the favor of the police, prosecutors said.

Smith, who has repeatedly declared his innocence, will not face a new trial, according to the report.

“Justice has finally been served. … Larry has finally got his life back, ”said Mary Owens, Smith’s lawyer.

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Former ECB’s Draghi positioned to lead Italy after policy failure https://1cplusplusstreet.com/former-ecbs-draghi-positioned-to-lead-italy-after-policy-failure/ https://1cplusplusstreet.com/former-ecbs-draghi-positioned-to-lead-italy-after-policy-failure/#respond Wed, 07 Apr 2021 23:16:14 +0000 https://1cplusplusstreet.com/former-ecbs-draghi-positioned-to-lead-italy-after-policy-failure/ Frances D’Emilio | Associated press Rome – Former European bank chief Mario Draghi was able to lead what could quickly become Italy’s next government after the Italian president concluded on Tuesday that the warring political parties had failed in a last-ditch effort to form a new coalition and that the nation could hardly afford new […]]]>

Rome – Former European bank chief Mario Draghi was able to lead what could quickly become Italy’s next government after the Italian president concluded on Tuesday that the warring political parties had failed in a last-ditch effort to form a new coalition and that the nation could hardly afford new elections while engulfed in the COVID-19 pandemic.

President Sergio Mattarella told the nation there were only two options left after the “negative outcome” of days of frantic political negotiations to recompose the center-left coalition that formed Giuseppe Conte’s recently collapsed government.

The first was “a new government, capable of dealing with the current serious emergencies: health, social, economic and financial,” said Mattarella, who is the head of state. The second, he said, concerned immediate early elections, a possibility that deserved careful consideration “because elections are an exercise in democracy.”

Mattarella quickly decided that Italy needed a “high-level government, which should not identify with any political formula” and which would be supported by the current political forces in parliament. He stopped before saying who he was thinking of for the post of prime minister.

But right after his speech, a presidential palace official announced that Draghi, 73, who was credited with saving Europe’s single currency during his tenure as president of the European Central Bank in 2011-2019, had summoned to meet Mattarella at noon Wednesday. This would give Draghi the opportunity to formally accept such a mandate.

The fragile prospects of relaunching the Conte government through a reshuffled political coalition disintegrated after former prime minister Matteo Renzi refused after days of frantic negotiations. Conte resigned last week after Renzi withdrew his ministers from his small centrist Italy Alive party to protest what he said was the prime minister’s clumsiness over the coronavirus pandemic.

Conte is now acting as a caretaker.

Mattarella noted that after the 2013 election it took four months to put a government in place, and after the 2018 election it took five months. To repeat this would leave Italy to suffer without a government in “the fullness of its functions for months, crucial, decisive, for the fight against the pandemic to use European funding and face serious social problems,” he said. .

“All these concerns are very much in the minds of our fellow citizens, who are asking for concrete and rapid answers to their daily problems”, declared the president.

Nicknamed “Super Mario” for his work as President of the European Central Bank during the single currency crisis, Draghi has been cited throughout recent weeks of the Italian political crisis as a possible solution if politicians could not. not overcome personality and political conflicts for the good of the nation.

The pandemic devastated Italy’s long-stagnant economy and left the country with the second-highest number of COVID-19 deaths in Europe. The government statistical agency ISTAT reported on Monday that nearly 450,000 jobs were lost last year.

In the latest talks that failed on Tuesday, parties in what is now Conte’s caretaker government argued over aid for the European Union’s pandemic and other key political issues that were blocking training. a stronger coalition.

Mattarella had given the collapsed coalition parties a few days to see if they could regroup in a new government with a reliable majority in parliament.

His call for broad support for the next government was quickly echoed by a deputy from the opposition party Forza Italia led by media mogul and former center-right Prime Minister Silvio Berlusconi. Mara Carfagna said Mattarella’s call “for responsibility should spark genuine and deep reflection in anyone who loves Italy and Italians and who still holds the true sense of global patriotism.”

Previously, Renzi put all the blame on the failed effort on other parties, saying: “We take note of the ‘nyet’ of ex-coalition colleagues”, using the Russian word for “no”.

In turn, the 5-star populist movement, which has been the main partner in consecutive storytelling governments since coming to power in 2018, argued that all Renzi wanted was more power.

“Obviously the goal was to get more (Cabinet) positions. It was his most pressing goal “to provoke the crisis,” said Vito Crimi, a 5-star leader.

With the exception of Renzi, all the other leaders of the old coalition parties had thrown their public weight behind Conte for a new term.

Withdrawing his support, Renzi asserted that Conte was rising to the challenge of managing how more than € 200 billion (around $ 250 billion) in EU funds and loans would be spent to help Italy survive. recover from the damage of the pandemic, especially to the Italian economy.

The 5-star movement, close to Conte, has resisted the acceptance of billions of euros in EU loans aimed at strengthening the health system, aid populists fear could make Italy beholden to the dictates of the ‘EU such as austerity measures.

Renzi had insisted that Italy take help from the Brussels health system.

The center-left Democratic Party, which Renzi led during his tenure as Prime Minister in 2014-2016 and from which he split to start Italy Alive shortly after Conte formed his second coalition government in September 2019, was largely caught in the crossfire.

The first government of Conte, which took office in June 2018, established a partnership between the 5 stars and the Right League of Matteo Salvini. This coalition collapsed when Salvini withdrew his support in a failed maneuver to secure the post of prime minister for himself. The Democrats, which then included Renzi, replaced Salvini’s forces in Conte’s second government.

Salvini had lobbied Mattarella unsuccessfully for an early election.

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Media Advisory – Minister Vandal to Make Clean Energy Announcements https://1cplusplusstreet.com/media-advisory-minister-vandal-to-make-clean-energy-announcements/ https://1cplusplusstreet.com/media-advisory-minister-vandal-to-make-clean-energy-announcements/#respond Wed, 07 Apr 2021 23:15:54 +0000 https://1cplusplusstreet.com/media-advisory-minister-vandal-to-make-clean-energy-announcements/ Bloomberg World faces longer supply shortage as Chinese factories contract (Bloomberg) – Eric Li’s factory, which makes glass lampshades for companies like Home Depot Inc., is being pushed to its limits with sales doubling their pre-pandemic level, but like many Chinese manufacturers, it has no plans to expand its business – one of the reluctances […]]]>

Bloomberg

World faces longer supply shortage as Chinese factories contract

(Bloomberg) – Eric Li’s factory, which makes glass lampshades for companies like Home Depot Inc., is being pushed to its limits with sales doubling their pre-pandemic level, but like many Chinese manufacturers, it has no plans to expand its business – one of the reluctances that could slow the pace of China’s economic growth this year and prolong a goods shortage felt around the world as demand increases. Soaring commodity prices mean “margins are squeezed,” says Li, owner of Huizhou Baizhan Glass Co. Ltd. in southern China’s Guangdong Province, which generates around $ 30 million in sales. annual income. With the global economic recovery still uneven, “the future is very uncertain, so there is not a lot of pressure to increase capacity,” he adds. The combination of rising input prices, uncertainty over export prospects and a weak recovery in domestic consumer demand meant that the Chinese manufacturing investment from January to April was 0, 4% lower than in the same period in 2019, according to official statistics (comparison with 2019 eliminates the distortion of pandemic data from last year) .Due to the large size of the Chinese manufacturing sector, this poses a risk to both to the country’s growth – which is currently expected to hit 8.5% in 2021, according to a Bloomberg economists tally – and to a global economy struggling with supply shortages and rising prices. have a “considerable” impact on GDP growth this year, said Citigroup Inc. Chinese economist Li-gang Liu. A fall in investment could hurt imports of capital goods and equipment from developed economies like Japan and Germany, “which in turn could slow their economic recovery and also rebound,” he said. -he adds. companies are feeling the pressure. Based in the eastern province of Anhui, the company manufactures capacitors used to manufacture electronic circuits, with sales mainly in the domestic market. Jing Yuan, the founder, claims that orders are increasing up to 30% year over year, but profits are down 50% due to rising costs of materials which are not easily passed on to customers. he has to pay half a month before delivery in order to secure copper and other metals, which they previously paid for months after receiving, he said. “The problem of raw materials must be tackled by the government,” he added. What Bloomberg Economics Says … Chinese industry is absorbing significant cost pressures from rising commodity prices – cushioning the inflationary impact on the rest of the world. Will it last? Our gross margin analysis suggests it could go even longer: the downstream industries – where the cost crisis is most severe – still have a little cushion. David Qu, Chinese economist For the full report, click here. not being able to use their existing facilities, the expansion would therefore be of little use. Chinese electric vehicle maker Nio Inc. suspended production at one of its factories last month, due to a shortage of microchips. Modern Casting Ltd., which manufactures iron and steel products in Guangdong , posted a note to customers this month saying it wouldn’t. able to meet current orders due to high raw material costs. A staff member who answered the phone at the company’s office confirmed the note, but declined to give further details. Growth Transition In addition to rising input costs, Chinese companies are facing a bumpy transition to domestic consumer spending to support their post-pandemic recovery. Exports, China’s strong point last year, may start to slow, as the rollout of vaccines will prompt consumers in rich countries to shift spending toward services. Meanwhile, the growth rate of Chinese consumer spending has yet to fully recover. Investment sentiment among Chinese small and medium-sized enterprises is lower than levels seen even in 2018-9, when uncertainties related to the Trade war between the United States and China has held back expansion plans, according to a regular survey of more than 500 Chinese companies by Standard Chartered Plc. “Demand is still mainly driven by exports, so domestic companies are aware that this is not sustainable,” said Standard Chartered Chinese economist Lan Shen. trending sectors have been pushed to their limits, manufacturers targeting Chinese consumers remain largely behind due to weak domestic demand Retail sales growth was 4.3% in April on average two years, eliminating the base effects of the pandemic, less than half of the pre-pandemic growth rates. Overall capacity utilization of Chinese manufacturers fell to 77.6% in the first quarter from 78.4% in the previous three months, with the auto sector hit hardest by overcapacity after three years of declining prices. sales volumes. have already built their capacity and will now focus on incremental upgrades. “The majority of the investment has been made,” said Jochen Siebert of JSC Automotive Consulting. China ordered state-owned enterprises to expand last year, with their investment growth of 5.3 percent in 2020 from the previous year easily outpacing the 1 percent increase in private investment. But for a sustainable investment recovery, the market, not the state, needs to feel confident. Carsten Holz, an expert in Chinese investment statistics at the Hong Kong University of Science and Technology, says private companies have accounted for 87% of manufacturing investment in 2015, the most recent year of available data. They are more sensitive to input costs. “There is a pandemic and insecurity about future trade given a new US administration, neither is conducive to investments that are based on long-term growth prospects,” Holz said. . challenge for export-oriented manufacturers. Gordon Gao, who exports gardening products from China, said he had to reject 80% of orders this year due to delays at ports. In one case, an order placed before mid-February could not be shipped until three months later when a customer finally secured a container. Beijing tried to improve conditions for private companies by ordering a crackdown on the speculation to reduce commodity prices and facilitate access to banking. Yet the government continues to phase out fiscal and monetary stimulus introduced amid the pandemic last year. He set a relatively unambitious target of “above 6%” growth for this year, and the Communist Party Politburo signaled last month that it would prioritize reforms to control house prices and growth in the country. debt. towards reducing risk to the financial sector, ”said Adam Wolfe, economist at London-based Absolute Strategy Research. “The risks to economic growth appear to be on the downside, especially for capital-intensive and construction-related sectors.” For manufacturers like Li, a longer period of domestic growth and input price controls will be needed before capacity expansion occurs. cards. While his company of 200 workers hired new permanent staff before the pandemic, for now, he prefers to pass the investment risks on to others. “I wouldn’t do that now, I would rather hire temporary workers and outsource the rest. “, Did he declare. More stories like this are available at bloomberg.com

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Nyrada reveals encouraging cholesterol-lowering drug study results https://1cplusplusstreet.com/nyrada-reveals-encouraging-cholesterol-lowering-drug-study-results/ https://1cplusplusstreet.com/nyrada-reveals-encouraging-cholesterol-lowering-drug-study-results/#respond Wed, 07 Apr 2021 23:15:52 +0000 https://1cplusplusstreet.com/nyrada-reveals-encouraging-cholesterol-lowering-drug-study-results/ Preclinical results indicate the potential for Nyrada to develop a single pill treatment for high cholesterol. Australian biotech Nyrada Inc (ASX: NYR) reported encouraging preclinical results from its drug development program to treat patients with high cholesterol. The company told the market today that the results indicated the possibility of developing a single-pill treatment for […]]]>
Preclinical results indicate the potential for Nyrada to develop a single pill treatment for high cholesterol.

Australian biotech Nyrada Inc (ASX: NYR) reported encouraging preclinical results from its drug development program to treat patients with high cholesterol.

The company told the market today that the results indicated the possibility of developing a single-pill treatment for high cholesterol to replace expensive ongoing injections.

Nyrada conducted a study on healthy human lymphocytes from donors (white blood cells) treated with the company PCSK9 inhibitor drug, NYX-PCSK9i.

When the body has too much low density lipoprotein (LDL, also called “bad” cholesterol) cholesterol, they can build up on the walls of the arteries, restrict blood flow and potentially lead to heart attack and stroke. PCSK9 is a naturally produced protein that plays a counter-role in the regulatory process.

According to preclinical results, the cells showed increased levels of LDL receptors and demonstrated equivalence with the commercial PCSK9 monoclonal antibodies, evolocumab and alirocumab.

The results were also confirmed with and without the addition of a statin, demonstrating the potential to develop combined PCSK9-statin therapy in a single pill.

Current treatments for hypercholesterolemia

According to Nyrada, an estimated 70% of people at risk for cardiovascular disease are unable to reach their target LDL cholesterol levels using statin therapy alone.

Therefore, current treatments for high LDL cholesterol often include expensive, continuous injections that must be taken separately from statins.

These medicines include evolocumab, branded by Repatha by Amgen, and alirocumab, which was developed under the name Praluent by Sanofi and Regeneron.

According to Nyrada, combined sales of injectable inhibitors Repatha and Praluent PCSK9 totaled more than US $ 900 million (AU $ 1.29 billion) in fiscal 2019.

Nyrada CEO James Bonnar said having a drug candidate that works as well as the two market-leading PSCK9 monoclonal antibodies in a human cell model is a “huge achievement.”

“This represents a big step forward in our mission to develop the very first small molecule PCSK9 inhibitor to treat high cholesterol and provide a beneficial, economical and convenient treatment alternative to Repatha and Praluent,” he said. declared.

Professor Gilles Lambert, a member of Nyrada’s scientific advisory board, said the preclinical results mark an exciting scientific milestone for the company, indicating the potential to provide a more convenient option for patients than regular injections.

“The results occur both with and without a statin being present, opening the potential for Nyrada’s drug to be administered alone or in combination with statin therapy,” he added.

Nryada had $ 6.1 million in cash in the bank at the end of the March quarter, while actively pursuing various non-dilutive and collaborative funding opportunities for the development of its product candidates.

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Changes to the bankruptcy code in the COVID-19 CARES law https://1cplusplusstreet.com/changes-to-the-bankruptcy-code-in-the-covid-19-cares-law/ https://1cplusplusstreet.com/changes-to-the-bankruptcy-code-in-the-covid-19-cares-law/#respond Wed, 07 Apr 2021 23:14:57 +0000 https://1cplusplusstreet.com/changes-to-the-bankruptcy-code-in-the-covid-19-cares-law/ Wednesday March 31, 2021 On March 27, 2021, President Biden enacted the law COVID-19 Bankruptcy Extension Law (the law on extension). The extension law temporarily extends certain COVID-19 bankruptcy relief provisions adopted as part of the Coronavirus Aid, Relief and Economic Security Act (the CARES law), which were further amended and / or extended within […]]]>

On March 27, 2021, President Biden enacted the law COVID-19 Bankruptcy Extension Law (the law on extension). The extension law temporarily extends certain COVID-19 bankruptcy relief provisions adopted as part of the Coronavirus Aid, Relief and Economic Security Act (the CARES law), which were further amended and / or extended within the framework of the Consolidated Appropriation Act (the CAA). Some of the changes included in the CAA and the Extension Act are highlighted below:

PAYCHECK PROTECTION PROGRAM DEBTORS AND LOANS

Under the CARES Act, Congress established the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA), through which businesses can obtain loans that would be canceled if borrowers used the funds to certain permitted purposes. The SBA enacted a rule declaring bankrupt debtors ineligible for PPP loans. Debtors across the country have challenged this rule. The CAA is attempting to address this issue by expressly allowing certain bankrupt debtors to obtain PPP loans only if the SBA administrator sends a letter to the director of the executive office of the US trustees approving the rule change. If the SBA administrator issues such a letter, PPP funds will be available (a) in cases filed after the letter delivery date and (b) to subchapter V small business debtors, debtors of Chapter 12 family farmers and fishermen, and Chapter 13 debtors employed. To date, the SBA administrator has yet to deliver the letter. This provision expires under the CAA on December 27, 2022.

DISCRIMINATION UNDER ARTICLE 525

Section 525 of the Bankruptcy Code generally protects bankrupt debtors from certain types of discrimination based solely on the fact that the debtor has sought bankruptcy relief. CAA amends section 525 to clarify that a bankrupt debtor also cannot be deprived of the benefit of certain provisions of the CARES Act due to their status as a bankrupt debtor, including (a) the foreclosure moratorium and the right to seek forbearance, (b) forbearance from mortgage payments for multi-family properties, and (c) temporary moratorium on eviction deposits. This amendment to section 525 will expire on December 27, 2021.

UNEXPECTED NON-RESIDENTIAL REAL ESTATE RENTALS

Section 365 (d) (3) of the Bankruptcy Code requires a debtor to continue to enforce unexpired non-residential real estate leases on a timely basis, until such leases are resumed or rejected. The CAA allows debtors in subchapter V small business cases to request a 60-day performance period (up to 120 days in total) under its unexpired non-residential real estate leases, if the debtor has known and continues to experience difficulties as a result of the COVID-19 pandemic. In addition, and without having to demonstrate significant financial hardship, the CAA also allows an additional 90-day extension of the 120-day period for the debtor to assume or reject unexpired non-residential real estate leases. With this additional extension, all debtors can have up to 300 days to decide whether to accept or reject these leases. These two provisions will expire on December 27, 2022, but they will remain applicable to any business started before that date.

PREFERENCES

Section 547 allows a debtor or trustee to avoid certain payments due to pre-bankruptcy obligations while the debtor is insolvent. CAA amends section 547 to prohibit avoiding payments made during the preference period after March 13, 2020, for “covered rent arrears” and “covered supplier arrears” that had been carried over under an abstention or a similar agreement. For payments to qualify for the avoidance exemption, they must not include any fees, penalties or interest in excess of amounts that would have accrued without any deferral.

TARIFFS

The CAA is also amending section 507 (d) of the Bankruptcy Code to allow claims arising from customs duties paid to the federal government on behalf of an importer. The provision is designed to assist brokers and freight forwarders who pay the government tariffs on behalf of customers and expires on December 27, 2021.

CREDITOR CLAIMS

Finally, the CAA amends Articles 501 and 502 of the Bankruptcy Code to create a process by which creditors can file proof of claim for amounts that have accrued due to the implementation and remedy provided by the Bankruptcy Code. CARES Act. This provision aims to compensate creditors for any damage suffered as a result of the implementation of the CARES law and ends on December 27, 2021.

LIMITS OF SUB-CHAPTER V

The bill extends until March 27, 2022, increasing debt limits under the Small Business Reorganization Act, 2019, allowing more debtors to use the streamlined subchapter V bankruptcy procedures. The CARES Act had previously increased these debt limits from US $ 2.7 million to US $ 7.5 million, but this increase was originally scheduled to expire on March 27, 2021.

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Recent survey debunks some myths about Costa Ricans indebtedness https://1cplusplusstreet.com/recent-survey-debunks-some-myths-about-costa-ricans-indebtedness/ https://1cplusplusstreet.com/recent-survey-debunks-some-myths-about-costa-ricans-indebtedness/#respond Wed, 07 Apr 2021 23:14:57 +0000 https://1cplusplusstreet.com/recent-survey-debunks-some-myths-about-costa-ricans-indebtedness/ Credit cards are not the main component that generates debt for Costa Ricans. In addition, people who receive less Income have few real options for access to credit regulated financial entities. This emerges from the second delivery of the results of the “Debt of Costa Rican households”, carried out by the Office of Financial Consumption […]]]>

Credit cards are not the main component that generates debt for Costa Ricans. In addition, people who receive less Income have few real options for access to credit regulated financial entities. This emerges from the second delivery of the results of the “Debt of Costa Rican households”, carried out by the Office of Financial Consumption (OCF).

The study was carried out in the last months of 2020 and covered a total of 1,200 people aged 18 to 65, with a sampling error of 2.8% and was applied nationwide.

“The survey aims to measure the reality of indebtedness in Costa Rica. In the first installment, we pointed out that people have broad debt; on this occasion, we will break down the behavior of the granaries concerning the type of debts, the attitudes they adopt towards them and the treatment given to the money, ”explained Danilo Montero, general manager of the OCF.

Credit cards aren’t the first

When it comes to the types of debt people in Costa Rica take on, credit cards are not the number one reason for debt. This is supported by two results that the study showed: on the one hand, the type of debt according to the level of income of the population, and on the other hand, in relation to the level of commitment in relation to income. for the payment of said debts.

When asked what types of loans they had, nearly half of those surveyed in the lowest income group (less than 300,000 colones) indicated loans from parents or appliance stores, far away. of the 13% who mentioned credit cards. Even in the next income group (between 300,000 and 500,000 colones), the difference is that personal loans appear as a third type, with one of the three doubling the importance of cards. It is only from the income group of over a million colones that the maps show a greater presence. But, in fact, in the two highest income groups, credit to associations or cooperatives, or housing credit, dominates.

Highest commitment

If measured by the level of income commitment to pay debts, it appears that, in the least indebted group, consumer credit, family credit, and credit cards have almost the same importance. At the other extreme, in the most committed group (more than 62% of their income), what dominates is consumer credit, and secondly that of family members. It should be noted that in the second group with the lowest indebtedness (between 18% and 30%), the dominant type of credit is that of appliance stores, almost doubling the importance of cards.

“The survey shows that 7 in 10 Costa Ricans have debt, but it also indicates that it is not precisely in cards as is commonly thought. Despite the number of credit cards in circulation, the survey detailed that 33% of respondents agree to have them, but do not use them. This means that, despite the fact that it can be an important component of debt for some people in particular, other factors have a greater weight in the indebtedness of the population, ”said Montero.

Another relevant finding of the survey is that access to credit through the regulated financial system is not the same for everyone. Indeed, women, people without paid work, who are in the lowest income brackets (less than 500,000 colones) and who live outside the big metropolis, go mainly (between 57% and 63%) to relatives, friends or co-workers.

Work status

In contrast, as incomes increase, people credit regulated entities (up to 65%) and credit with family or friends tends to wane. The situation repeats itself according to professional status: when people do not have paid work, the source of credit is family or friends; There is a growing preference for credit from regulated entities (banks, cooperatives or mutuals) for private sector workers and this is the type of source that far dominates for those working in the public sector. For the OCF, this behavior confirms that there is a certain degree of financial exclusion, a situation that deserves a public policy to close this gap. “This poses a challenge to the financial system in general, because some groups do not have access to formal credit, forcing them to seek other more expensive modes of financing, for example limiting their possibilities of access to housing, even affecting their productivity. . The challenge of course is to generate the products and the channels to reach these populations, ”said Montero.

Consumer attitudes towards debt

The Debt Survey also analyzed the behavior of Costa Ricans towards indebtedness, based on their attitudes towards purchases and their attitudes towards the use of credit. The attitudes of debtors towards purchases were measured along four dimensions: for whom the purchases are uncontrollable; those who plan and are ordered; for those who simply consume the basics (minimalist) and for whom consumption generates pleasure (hedonists). AT measure these dimensions, they were offered sentences with which they were asked if they agreed or not.

Significantly, in the group of those who consume for pleasure, the percentage of those who have debt is higher than at the national level, but their average level of income commitment is not that high (37%) . This could be explained by the fact that, according to the survey, the group of public sector workers and people with higher incomes is the one who tends to buy for pleasure and that his condition makes it easier for them to assume responsibility for payments. To understand attitudes towards credit, two dimensions have been proposed: those who behave with prudence and reserve, and those who are more inclined to use credit.

The study identified that men and those with the highest incomes are those who have the greatest tendency to credit. For them, for example, “the use of credit allows them to have a better quality of life”, “it is an essential part of the current way of life”, “it is good to buy and pay later Or “a loan is sometimes a good idea.” A relevant finding is that, in the group of unemployed, 25% are rather cautious about credit, while this percentage drops to 7% in the group of those working in the Public sector The prudent choose to “take care of the money”, “pay off debts as soon as possible” or “try to live with what you have and save”.

Environmental risks behind Costa Rica’s indebtedness to the IMF

Money controls the lives of the highest debtors

The survey “Debt of Costa Rican households” also analyzed the practices of money management by people. For this, a series of sentences were offered to respondents, in which they had to agree or not. This identified four groups: those whose lives are controlled by money; those that are expenditure oriented; those who pay attention to debts; and which are handy with cash.

The most notable data is that, as the respondents agreed that financial situation controls their lives, most of their income is compromised. For example, “it is very difficult for them to meet unforeseen health expenses”, or “they usually do not have money for gifts for birthdays, weddings, holidays”. Low-income groups, private sector workers, and residents outside the GAM, were the most likely to report that money controls their lives.

Resonance was created to bring together a community of digital nomads, entrepreneurs, innovators, guardians of wisdom, alternative thinkers, mentors and light leaders from around the world to bridge the gap between hard work and hard work. way of life that offers the possibility of living and working in a nourishing and supportive environment.

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