Annual Financial Report

RNS Number : 9018Q
African Pioneer PLC
30 June 2022

African Pioneer Plc
(“African Pioneer” or the “Company”)

Final Results for period to 31 December 2021


African Pioneer plc (“APP” or the “Company”), the exploration and resource development company with projects located in Namibia, Botswana and Zambia, reports its full year results for the year ended 31 December 2021.

The Annual Report and Financial Statements for the year ended 31 December 2021 will shortly be available on the Company’s website at  A copy of the Annual Report and Financial Statements will also be uploaded to the National Storage Mechanism where it will be available for viewing at:

Please note that page references in the text below refer to the page numbers in the Annual Report and Financial Statements.

This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

For further information, please contact:

African Pioneer Plc 

Colin Bird

Executive Chairman



+44 (0) 20 7581 4477


Beaumont Cornish (Financial Adviser) 
Roland Cornish 
+44 (0) 20 7628 3396
Novum Securities Limited (Broker)

Jon Belliss


+44 (0) 20 7399 9400


or visit



·    Consolidated total assets – £ 6,148,119 (2020 – £ 186,987)

·    Consolidated Profit/(Loss) – Profit – £ 395,693 (2020 – Loss – (£90,156))

·    Raised gross proceeds of £1,750,000 at listing

·    The Group reports its results and raises funds in Pounds Sterling (GBP).

·    Its primary assets are in Namibia, Botswana and Zambia



Dear Shareholder

African Pioneer has made very positive start as a listed entity and we are pleased with the progress made with the Company’s African copper and gold assets. 

The Company’s 85% owned Ongombo project in Namibia has benefited from a resource upgrade during the period under review and a mining licence application has been submitted for this project to the ministry of mines and energy in Namibia.  A drilling programme is currently underway aimed at testing our prognosis that close to surface mineralisation exists at Ongombo.  I am pleased to report that thedrill programme is progressing well and that several drill holes within 10m of surface have intersected strong visual mineralisation.  The drill programme is on-going and we are eagerly awaiting assay results for both copper and gold.  We are optimistic that we will have continued success with the drilling and that we will be able to potentially increase strike and identify an open pit production project with 2-3 year mine-life at Ongombo. 

In Zambia, our North-western licences, are subject to an option agreement with First Quantum Minerals Corp. (“First Quantum”), who are one of the largest copper producers in the world and have a strong presence in Zambia.  First Quantum have a world class copper producing project (Sentinel Mine) some 80 kilometres away from our licence area and have excellent knowledge of the area as well as many years of experience as mine operators in North Western Zambia where our exploration licences are located. The geology in these licences appears to resemble the geology usually encountered in the Democratic Republic of Congo rather than what would be traditionally expected in the Copperbelt, and consequently the possibility of associated cobalt credits is potentially high.  First Quantum has carried out significant field work and we anticipate that they will commence drilling in the third quarter of this year.  We are very excited for the potential for our Zambian licences and we are confident that our partner, First Quantum, will do their best endeavours to fast-track the exploration programme.

We are indeed fortunate that Sandfire Resources Limited (“Sandfire”) subscribed for a 15% equity stake in African Pioneer Plc when the Company listed on 1 June 2021.  During the year, we entered into a two-year option agreement with Sandfire in relation to 4 of our 8 Botswana prospecting licences for a cash payment of US$500,000 and the issue of 107,272 Sandfire shares and plus a 24 months exploration expenditure commitment from Sandfire of US$1 Million on the optioned licences.

The Option Agreement with Sandfire has allowed us to accelerate exploration activities on the 4 Kalahari Copper Belt prospecting licences that are subject of this Agreement whilst preserving the Company’s cash reserves.  The funds received as part of the Option Agreement has allowed us to accelerate exploration activities on the Company’s 4 other prospecting licences in Botswana and the projects in Namibia and Zambia.

We have several other prospecting licences which we intend to explore ourselves and plans have been made for drilling to commence on some of these prospects during the second half of this year.

The Company’s assets are very well placed in Southern Africa and we are of the opinion that both Botswana and Namibia are sources of tomorrow’s copper production.  Furthermore, all our exploration projects have significant by-product potential, being cobalt in Zambia, silver in Botswana and gold in Namibia. 

The global outlook for copper is probably at its most favourable for many years and there is a dearth of new projects to meet the anticipated demand.  The shortage is exacerbated by the projects that are on the drawing board which are generally very large and have a development period of more than 10 years and a huge capital requirement, often in the billions of dollars, which is a challenge even for the major mining companies. 

At time of writing this report, the world is challenged by war, famine, inflation, pandemics and is probably in the worst position it has been in for many years.  Despite the gloom, most commodities are priced at the higher end of the spectrum, suggesting that the economic outlook will improve going forward, and the commodity producers will again be dominant in the foreseeable future.  Inflationary times are always positive for commodity prices and as such we can expect that current metal prices will be resilient and will possibly increase over the coming years.

In our opinion, African Pioneer is very well positioned, with projects located in the right part of the world and in the right commodities and should provide our shareholders with the potential to achieve good returns on investment. I would like to thank my fellow directors and management for their efforts in this post listing phase and look forward to advancing all our projects and releasing the value that they undoubtedly contain.

Colin Bird, Chairman

African Pioneer Plc

30 June 2022


The full African Pioneer Annual Final Results for period to 31 December 2021 are available here.