Clean Invest Africa Plc - Interim Consolidated Financial Results for the Period 1 January 2024 to 30 June 2024
PR Newswire
LONDON, United Kingdom, September 30
30 September 2024
CLEAN INVEST AFRICA PLC
("CIA" or the "Company" or the "Group")
INTERIM CONSOLIDATED FINANCIAL RESULTS
FOR THE PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
HIGHLIGHTS
- Project Claps 60% complete and generated approx. EUR 120k in first half of 2024
- CASA about to enter into full production with next phase targeting production capacity up to 4,000 tonnes of pellets per month
- Heads of Agreement with EEG to develop Leatherwood Project in Kentucky
- Raising of £450,000 in the period, with a further $600,000 committed
CHIEF EXECUTIVE OFFICER STATEMENT
I am pleased to present the interim financial results of the Group for the period 1 January 2024 to 30 June 2024.
The Group has made excellent progress in the first 6 months of the year, continuing the development of key business opportunites with the addition of some new exciting prospects, which are developing reasonably fast and will contribute to meeting the year end target.
Project CLAPS ("Clean Land And Power System") in Italy (started on 1 August 2023), is progressing well and reached approx 60% completion, with CoalTech Limited working alongside its Italian partner ISS International S.p.A ("ISS") on the development of a highly innovative solution that will be demonstrated by the mobile agglomeration plant prototype for the conversion of coal dust into pellets, which is the ultimate deliverables of this initiative.
The mobile test unit, fully automated, will include a fines preparation section, a transformation section into pellets and a drying section in order to obtain a final product that can be used at industrial scale as a green technology.
Applications for the technology will target opportunities such as the one offered in the area formely know as ex-ILVA in Taranto (the largest steel plant in Europe and one of the largest in the world) and the ENEL coal thermal power plant located in Cerano (Brindisi), where large volume of fines deposits are stockpiled in covered and uncovered areas, still generating significant challenges for the Apulia Region from an environmental point of view. Similar opportunities to the Company, although at smaller scale, could also be available in the Sulcis area in Sardinia.
The project has already started generating approximately EUR 120,000 in the first half of 2024 and is expected to bring approximately EUR 300,000 during the coming 12 months.
A full-fledged R&D laboratory has been developed and will be operative within the coming 3-4 weeks. An EPC contractor has been already appointed for the construction of the mobile test unit and Company is busy sourcing the main equipments (pelletising and dryer), which will be assigned to the EPC contractor for the completion of the construction and commissioning / start-up of the plant.
The Group's subsidiary in South Africa, Coal Agglomeration South Africa (Pty) Ltd ("CASA"), is about to commence full scale production of pellets, which will be sold in bulk to industrial customers and in bags, under the CASA trademark, Chisa'Mina, to the retail market, based on districtution agreement currently under finalisation. CASA is busy developing a robust supply chain that will enable reaching different areas through a network of selected distributors, that can support the next phase of the project, which will see ramping up production up to a target output of 4,000 tonnes per month at full production with a significant positive impact on the profitability and the cash flow of the business.
CASA is also developing a dedicated line of business, using anthracite as opposed to coal and further update will be provided in due course.
The Group's subsidiary in Delaware (US), Coal Tech LLC, is holding advanced discussion with Environmental Energy Group (EEG) to develop an integrated solution addressing and resolving the challenges posed by the large number of tailing ponds present in US. The implementation of the integrated solution will be most likely handled by a new entity, to be established between the Parties. EGG and CoalTech have finalised a Heads Of Agreement to define the principle terms of their cooperation and a timeline for the execution of this first project, and are now starting discussion about the incorporatation of a joint venture to move the project forward.
EEG is a company that has designed portable equipment specifically designed to recover coal tailings currently stockpiled in ponds submerged in water. EEG already owns some coal waste impoundments that are constructed for the permanent disposal of waste coal, rock, and related material as a by-product of coal mining. There are approximately 17,000 tailing Ponds in US.
The Leatherwood Project consist of 12 million tonnes of recoverable coal from a 200 ft average depth. The plant will have an initial capacity of 10-15,000 tonnes/month which will be increased at later stage by an expansion of the initial plant of by adding another unit, possible of a larger capacity.
Discussion are also ongoing for projects in Poland and Colombia and further announcements will be made in due course as this opportunity materialises.
We are pleased to report that during the first 6 months of the year, the Company has successfully raised £450,000 to support the continuing growth of the Group. Additional $600,000 funding has already been finalised, with funds that should become available to Company within 3-4 weeks, in return of equity in the subsidiary ChisaMina (Pty) Ltd, currently under formation in South Africa.
The Directors are also confident in the ability to improve the financial outlook of the Company by reducing a significant portion of debts, which is due to related party associated with the two major shareholders. Since the beginning of the year, a total debt of £759,658 has been converted to ordinary shares, thus reducing the Group's liability.
Furthermore, the Company issued unsecured Convertible Loan Note to Contax Partners Inc. (one of the two main shareholders) amounting to £551,032, in lieu of the settlement of cross-recharges from Contax Partners Inc. (and its subsidiaries), and once converted to ordinary shares will further reduce the overall liability of the Group.
It is also worth noting that the Company has been working with Reyl & Cie ("REYL"), a subsidiary of Intesa SanPaolo Group, with significant ESG commitment together with a world-class position in Social Impact and strong focus on climate business, to structure the issuance of one or several tranches of a Shariah compliant trust certificate (the "Trust Certificates" or "Sukuk"). An arrangement agreement has been signed in August 2024.
Structuring the Sukuk, will provide the Company with an additional opportunity to provide the funding required to implement various projects in different geographical areas, such as but not limited to, Indonesia and South Africa.
FINANCIALS
The Group's interim consolidated financial results for the period 1 January 2024 to 30 June 2024 show a loss after taxation of £232,907.
The financial information for the six months period ended 30 June 2024 has not been reviewed by the Company's external auditors.
OUTLOOK
The Directors are pleased with the progress made in this period and looks forward with optimism, based upon the potential of an extensive and solid pipeline of opportunities. It is worth reiterating that the strategy of CoalTech is to secure long term, large scale customer relationships with whom it would develop one or more full scale plants and with long term offtake arrangements. Securing one such customer would be transformative, with any such project likely to have a capital project value well in excess of $10 million and involve the processing of large scale fines deposit or tailings, typically over one million tonnes. Different arrangements with clients will result in ongoing revenue streams through profit share and royalty agreements for CIA.
Such prospects are of course conditional upon and dependant upon the Company raising further funding. We continue to seek new investment funding and discussions are currently ongoing with potential investors. We will advise shareholders as these opportunities develop.
Filippo Fantechi
Chief Executive Officer
30 September 2024
The Directors of the Company accept responsibility for the content of this announcement.
ENQUIRIES:
Company
Clean Invest Africa PLC
Filippo Fantechi - Chief Executive Officer
Telephone: +973 39696273
Corporate Adviser
Peterhouse Capital Limited
Telephone: +44 20 7220 9795
CLEAN INVEST AFRICA PLC
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
| For the 6 months period ended | For the year ended | ||
| 30-Jun-24 | 31-Dec-23 | ||
| (Unaudited) | (Audited) | ||
| £ | £ | ||
| Continuing operations | |||
| Revenue | 161,211 | 57 | |
| Cost of sales | (57,205) | (130,486) | |
| Gross profit/(loss) | 104,006 | (130,429) | |
| Other operating income | 7,164 | - | |
| Impairment loss | - | (7,287) | |
| Net foreign exchange revaluation | - | (96,211) | |
| Administrative expenses | (318,905) | (897,999) | |
| Operating loss | (207,735) | (1,131,926) | |
| Finance costs | (25,172) | (29,920) | |
| Loss before income tax | (232,907) | (1,161,846) | |
| Income tax | - | - | |
| Loss for the financial period/year attributable to the Company's equity shareholders | (232,907) | (1,161,846) | |
| Other comprehensive income | |||
| Loss for the period/year | (232,907) | (1,161,846) | |
| Currency translation differences | 59,585 | 286,423 | |
| Total comprehensive loss for the period/year | (173,322) | (875,423) | |
| Basic earnings per share expressedin pence per share: | (0.01) | (0.06) | |
The accompanying notes form an integral part of these interim financial statements.
CLEAN INVEST AFRICA PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
| As at | As at | ||||||||||||
| 30-Jun-24 | 31-Dec-23 | ||||||||||||
| (Unaudited) | (Audited) | ||||||||||||
| £ | £ | ||||||||||||
| Assets | |||||||||||||
| Non-current assets | |||||||||||||
| Right-of-use assets | 84,992 | 91,997 | |||||||||||
| Property, plant and equipment | 303,512 | 317,664 | |||||||||||
| Total Non-current assets | 388,504 | 409,661 | |||||||||||
| Current assets | |||||||||||||
| Inventories | 2,239 | 2,209 | |||||||||||
| Trade and other receivables | 4,162,908 | 3,946,397 | |||||||||||
| Cash & cash equivalents | 55,277 | 5,508 | |||||||||||
| Total current assets | 4,220,424 | 3,954,114 | |||||||||||
| Total assets | 4,608,928 | 4,363,775 | |||||||||||
| Equity and liabilities | |||||||||||||
| Equity attributable to the owners of the Company | |||||||||||||
| Share capital | 5,165,943 | 4,838,497 | |||||||||||
| Share premium | 29,188,729 | 28,732,843 | |||||||||||
| Shares to be issued | 332,294 | 332,294 | |||||||||||
| Share-based payment reserves | 3,243,556 | 3,243,556 | |||||||||||
| Convertible loan notes | - | 531,658 | |||||||||||
| Reverse takeover reserve | (23,050,570) | (23,050,570) | |||||||||||
| Foreign currency translation reserve | 369,052 | 309,467 | |||||||||||
| Accumulated losses | (14,200,682) | (13,967,775) | |||||||||||
| Total equity | 1,048,322 | 969,970 | |||||||||||
| Liabilities | |||||||||||||
| Current liabilities | |||||||||||||
| Trade and other payables | 3,068,506 | 2,895,814 | |||||||||||
| Convertible loan notes | 387,366 | 389,990 | |||||||||||
| Current portion of lease liabilities | 10,982 | 10,427 | |||||||||||
| Total current liabilities | 3,466,854 | 3,296,231 | |||||||||||
| Non-current liabilities | |||||||||||||
| Non-current portion of lease liabilities | 93,752 | 97,574 | |||||||||||
| Total non-current liabilities | 93,752 | 97,574 | |||||||||||
| Total liabilities | 3,560,606 | 3,393,805 | |||||||||||
| Total equity and liabilities | 4,608,928 | 4,363,775 | |||||||||||
The accompanying notes form an integral part of these interim financial statements.
CLEAN INVEST AFRICA PLC
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
| As at | As at | |||
| 30-Jun-24 | 31-Dec-23 | |||
| (Unaudited) | (Audited) | |||
| £ | £ | |||
| Assets | ||||
| Non-current assets | ||||
| Investments | 4,744,225 | 4,744,225 | ||
| Current assets | ||||
| Trade and other receivables | 6,103,584 | 5,915,275 | ||
| Cash & cash equivalents | 45,508 | 3,027 | ||
| Total current assets | 6,149,092 | 5,918,302 | ||
| Total assets | 10,893,317 | 10,662,527 | ||
| Equity and liabilities | ||||
| Equity attributable to the owners of the Company | ||||
| Share capital | 5,165,945 | 4,838,498 | ||
| Share premium | 29,188,729 | 28,732,843 | ||
| Shares to be issued | 332,294 | 332,294 | ||
| Convertible loan notes | - | 531,658 | ||
| Share-based payment reserves | 3,243,556 | 3,243,556 | ||
| Accumulated losses | (27,945,653) | (27,796,875) | ||
| Total equity | 9,984,871 | 9,881,974 | ||
| Current liabilities | ||||
| Trade and other payables | 521,080 | 390,563 | ||
| Convertible loan notes | 387,366 | 389,990 | ||
| Total liabilities | 908,446 | 780,553 | ||
| Total equity and liabilities | 10,893,317 | 10,662,527 | ||
A separate income statement for the parent entity has not been presented, as permitted by section 408 of the Companies Act 2006. The loss for the parent company for the 6 months period ended 30 June 2024 was £148,778 (2023: loss of £299,214).
The accompanying notes form an integral part of these interim financial statements.
CLEAN INVEST AFRICA PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDING 30 JUNE 2024
| Share capital | Share premium | Shares to be issued | Share based payment reserves | Reverse takeover reserve | Convertible loan notes | Foreign currency translation reserve | Accumulated losses | Total Equity | |||||||||||
| As at 1 January 2023 | 4,534,658 | 28,579,597 | 332,294 | 3,243,556 | (23,050,570) | 531,658 | 23,044 | (12,805,929) | 1,388,308 | ||||||||||
| Transactions with owners, recorded directly in equity: | |||||||||||||||||||
| Shares issued during the year | 303,839 | 153,246 | - | - | - | - | - | - | 457,085 | ||||||||||
| Loss for the year | - | - | - | - | - | - | - | (1,161,846) | (1,161,846) | ||||||||||
| Other comprehensive income | |||||||||||||||||||
| Currency translation reserve | - | - | - | - | - | - | 286,423 | - | 286,423 | ||||||||||
| As at 31 December 2023 | 4,838,497 | 28,732,843 | 332,294 | 3,243,556 | (23,050,570) | 531,658 | 309,467 | (13,967,775) | 969,970 | ||||||||||
| Transactions with owners, recorded directly in equity: | |||||||||||||||||||
| Shares to be issued during the period | 327,446 | 455,886 | - | - | - | - | - | - | 783,332 | ||||||||||
| Financial liabilities Interest bearing loans and borrowings, net | - | - | - | - | (531,658) | - | (531,658) | ||||||||||||
| Loss for the year | - | - | - | - | - | - | - | (232,907) | (232,907) | ||||||||||
| Other comprehensive income | |||||||||||||||||||
| Currency translation reserve | - | - | - | - | - | - | 59,585 | - | 59,585 | ||||||||||
| As at 30 June 2024 | 5,165,943 | 29,188,729 | 332,294 | 3,243,556 | (23,050,570) | - | 369,052 | (14,200,682) | 1,048,322 | ||||||||||
The accompanying notes form an integral part of these interim financial statements.
CLEAN INVEST AFRICA PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDING 30 JUNE 2024
| Share capital | Share premium | Shares to be issued | Convertible loan notes | Share based payment reserves | Accumulated losses | Total Equity | |
| As at 1 January 2023 | 4,534,658 | 28,579,597 | 332,294 | 531,658 | 3,243,556 | (27,497,661) | 9,724,102 |
| Shares issued during the year | 303,840 | 153,246 | - | - | - | - | 457,086 |
| Total comprehensive loss | - | - | - | - | - | (299,214) | (299,214) |
| As at 31 December 2023 | 4,838,498 | 28,732,843 | 332,294 | 531,658 | 3,243,556 | (27,796,875) | 9,881,974 |
| Shares to be issued during the period | 327,447 | 455,886 | - | - | - | - | 783,333 |
| Financial liabilities Interest bearing loans and borrowings | - | - | - | (531,658) | - | - | (531,658) |
| Total comprehensive income/(loss) | - | - | - | - | - | (148,778) | (148,778) |
| Balance as at 30 June 2024 | 5,165,945 | 29,188,729 | 332,294 | - | 3,243,556 | (27,945,653) | 9,984,871 |
The accompanying notes form an integral part of these interim financial statements.
CLEAN INVEST AFRICA PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024
1. Company information
Clean Invest Africa plc (the "Company") is a public limited company which is listed on the Aquis Stock Exchange Growth Market and is incorporated and domiciled in the United Kingdom.
The consolidated entity (the "Group") consists of the Company and the entities it controlled at the end of the six months period ended 30 June 2024.
Principal activity
The Company's primary strategy is to identify investment opportunities and acquisitions in clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way on a global basis, with the intention of building a diversified portfolio of assets.
The subsidiaries of the Company, CoalTech Limited ("CoalTech"), a company registered in the United Kingdom with registered number 11368750, and Coal Agglomeration South Africa (Pty) Ltd. ("CASA"), a company registered in South Africa with registered number 2015/439393/07 and CoalTech's subsidiary Coal Tech LLC, a company registered in the United States of America with registered number 5685936 (collectively referred as "CoalTech Group"), are primarily engaged in agglomerating coal fines waste (coal dust) into coal pellets through the commercialization of the Group's proprietary binding technology.
2. Basis of preparation
The interim consolidated financial statements of the Group and the interim financial statements of the Company (the "interim financial statements") have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations (IFRS IC) as adopted by the European Union and the Companies Act 2006 applicable to companies reporting under IFRS.
The interim financial statements are for the six months period ended 30 June 2024 and are presented in Sterling (£) which is the Company's presentation currency. The financial information for the six months period ended 30 June 2024 have not been reviewed by the Company's external auditors or audited.
The interim consolidated financial statements of the Group and the interim financial statements of the Company have been prepared using going concern assumption under the historical cost convention. The Directors believe the Group has or has access to sufficient funds to continue as a going concern for at least 12 months from the end of the reporting period.
3. Dividend
No dividends will be distributed for the six-month period ended 30 June 2024 (2023: £Nil). .
4. Earnings per share
| For the 6 months period ended 30 June 2024 | For the year ended 31 December 2023 | |||
| (Unaudited) | (Audited) | |||
| Total loss from continuing operations attributable to equity holders of the Group | (£232,907) | (£1,161,846) | ||
| Weighted average number of ordinary shares in issue | 2,032,183,454 | 1,839,571,433 | ||
| Basic earnings per share from continuing operations | (0.01p) | (0.06p) |
5. Events after the reporting period
There were no significant events subsequent to 30 June 2024 and occurring before the date of signing of the interim financial statements that would have a significant impact on these annual financial statements.
