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Mining project specialist Cloudbreak Discovery (LSE:CDL) has announced its final results for the year ending 30 June 2021. The company was admitted to the London Stock Exchange during this period with a £2m fund raising. Shares were over-subscribed.

During the period under review, Cloudbreak formed a strategic alliance with Alianza Minerals to explore for copper in the southern USA, but it also has a number of other ongoing natural resources under its belt. For instance, Temas Resources, in which it has a 14.2% interest, entered into a joint venture with Erin Ventures Inc, to develop the Piskanja Borate Project in Serbia.

Listing represents start of more global strategy

Part of the rationale for the London listing was because the company is seeking projects further afield than Canada, where most of its current projects are located. Piskanja is one example of the type of global opportunity it plans to go after in the future.

“Since listing on the Main Market this year, Cloudbreak has been successfully executing its business model with 13 out of our 17 assets now optioned to partners,” said Kyler Hardy, CEO. “Through our strategic alliance and partnerships, we can expect an active year ahead with sampling and testing results from several projects.”

Cloudbreak Discovery has a diverse portfolio of interesting mining projects across several metals and other natural resources. It works with partner firms to bring these projects to fruition.

Financials for first period since listing

The company posted a loss of £902,060 for the year to 30 June.

It held £1,277,617 in cash and cash equivalents at the end of the period, with the higher level of cash attributable to fund raising activities completed during the admission process.

Administration costs as a percentage of total assets were 14.1%, a decrease compared to 20.2% for the period ending 30 June 2020. Exploration and evaluation cash expenditures came to  £29,675.

The carrying value of investments held on 30 June was £4,353,318. The consolidated loss per share was 85p.

Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery

Plenty of activity for Cloudbreak Discovery in 2H 2021

Since the start of July, the company has been very busy indeed. Its Alliance venture in the US made its acquisition of the Klondike property in Colorado, and a subsequent sampling program expanded the known copper mineralisation and delineated a new copper target, with results including 1.56% copper from a 4.6 metre chip sample.

The Alliance also optioned Klondike to Allied Copper Corp under an agreement which includes Allied Copper committing to exploration expenditure and the Alliance retaining a net smelter royalty.

Cloudbreak Discovery has also initiated an exploration program on the Northwest Portfolio, which is targeting polymetallic projects in NW British Columbia.

The Alliance made a second acquisition of the Stateline Property in Utah, which consists of 22 unpatented mining claims. Mineralisation and host rocks at Stateline bear a strong resemblance to those at the Lisbon Valley mining complex.

Cloudbreak Discovery has also optioned the Atlin West project in British Columbia which targets gold and silver mineralisation in polymetallic vein systems, and the South Timmins project in Ontario, which is targeting lode gold mineralisation. Both were optioned to 1315956 BC Limited.

The company also successfully optioned its Yak project, which targets gold mineralisation in British Columbia, to Moonbound Mining Ltd.

Related

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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