PR Newswire
LONDON, United Kingdom, February 27
[Karelian]
27 February 2026
Karelian Diamond Resources plc
(«Karelian» or «the Company»)
Half-yearly results for the six months ended 30 November 2025
Karelian Diamond Resources plc (AIM: KDR), the diamond exploration company
focused on Finland, announces its unaudited results for the six months ended 30
November 2025. Details of these can be found below and a full copy of the
interim results statement can be viewed on the Company’s website
(www.kareliandiamondresources.com).
Highlights of the half-year period included:
· In Northern Ireland the Company holds a significant licence package covering
over 1000 km² and has established first mover advantage. It continues to advance
its exploration programme for Nickel, Copper and Platinum Group Elements.
· Exploration work also continued in the Kuhmo region in Finland with the
Company focussing in particular on the geophysical Anomaly 5 as a priority. It
lies up-ice of the green-diamond find.
· At the Lahtojoki diamond deposit Karelian was, in June, granted a mining
concession certificate and the focus of the Company’s efforts over the last
number of months have been on advancing discussions with a view to securing
appropriate strategic or partnership finance to progress development.
Brendan McMorrow, Chairman of Karelian Diamonds, stated:
«The Company is looking forward to progressing with the work programmes on its
highly prospective Nickel, Copper and Platinum Group Element targets in Northern
Ireland (including a tangible Copper target) and a clear work programme and
strategy has been identified for its exploration assets in Finland. The Board
remains confident regarding the prospects for the Company».
Further information: +353-1-479-6180
Karelian Diamond Resources plc
Brendan McMorrow, Chairman / Maureen Jones, Managing Director
Allenby Capital Limited (Nomad) +44-20-3328-5656
Nick Athanas / Nick Harriss
Albr Capital Limited (Joint Broker) +44-20-7469-0930
Lucy Williams / Duncan Vasey
CMC Markets (Joint Broker) +44-20-3003-8632
Douglas Crippen
Lothbury Financial Services +44-20-3290-0707
Michael Padley
Hall Communications +353-1-660-9377
Don Hall
http://www.kareliandiamondresources.com
Chairman’s Statement
Dear Shareholder,
I have great pleasure in presenting the Company’s Half-Yearly Report and
condensed Financial Statements for the period ended 30 November 2025. The
Company has been carefully progressing the potential of its assets during the
period.
Northern Ireland – exploring Nickel, Copper, Platinum Group Elements
The Company holds a significant licence package covering over 1000 km2 in
Northern Ireland where it has established first mover advantage and continues to
advance its exploration programme exploring for Nickel, Copper and Platinum
Group Elements. Significant work was carried out by Dr Larry Hulbert, a
geological consultant, first engaged in early 2024, who carried out an
investigation of the licence areas and built a comprehensive database on them
incorporating geology, geochemistry, geophysics, remote sensing, and base
Geographic Information System (GIS) information including TELLUS data and
gravity geophysical data.
Dr Hulbert’s report confirmed significant potential for Nickel, Copper and
Platinum Group Elements and recommended a follow up work programme. The
Company has been progressing with follow on work over the last six months
including entering into an enterprise partnership with Trinity College Dublin on
a work programme jointly funded by Research Ireland to be carried out on the
Platinum Group Element potential of the Company’s licence areas in Ireland over
the coming years. In June 2025 the Company announced that it had identified
the site of the historic Cappagh Copper Mine as a significant new target for
investigation within the relevant licence area (KDR4). This provides the
Company with a tangible copper target in addition to the targets identified by
Dr Hulbert’s report and we look forward to commencing a comprehensive
exploration programme to unlock the full potential of this area.
Diamond exploration in Finland
While the market sentiment remains challenging from a diamond investment
perspective, the Company is focussing its efforts on carefully progressing
exploration work, positioning the Company well for a recovery in the retail
sentiment towards natural stones. The Company’s view is that in a global market
segment for natural diamonds that is worth over US$29 billion annually,
sustainably produced, traceable European diamonds will command a premium. This
premium would be supported by the potential for the Company’s assets to produce
coloured diamonds.
Exploration work in the Kuhmo region
Exploration work has continued in the Kuhmo region in Finland with the Company
focussing in particular on the geophysical Anomaly 5 as a priority. It lies up
-ice of the green-diamond find and carries a near-source kimberlitic indicator
minerals signature from glacial till sampling. The Company has also been
conducting a review of its exploration assets in the area which include the
diamondiferous Seitaperä pipe (Finland’s largest, c.6.9 ha) and the Riihivaara
kimberlite/olivine lamproite discovery.
The Lahtojoki Diamond Deposit
In June 2025 Karelian was granted a mining concession certificate by Tukes (the
Finnish Mining Authority) which formally entitles the company to utilise the
minerals within the mining concession area. This was a very important
milestone as it allows the Company to progress to the next stage of work on the
mining concession area and accordingly mining rights related to the Lahtojoki
mining concession. The Lahtojoki diamond mining project comprises a mining
concession covering 71 hectares (c. 176 acres) including a kimberlite pipe with
a surface area of 1.6 hectares (c. 4 acres). The Company has been working with
the relevant authorities to achieve the various milestones required for the
granting of the mining concession. In addition to this, the focus of the
Company’s efforts over the last number of months on this project has been on
exploring possibilities in terms of securing appropriate strategic or
partnership finance to progress development.
Financial Review
The loss after taxation for the half year ended 30 November 2025 was €165,591
(30 November 2024: loss of €121,186) and the net assets as at 30 November 2025
were €10,183,925 (30 November 2024: €9,993,699). In June 2025 the Company
raised £185,000 by way of a placing of new shares at an issue price of 0.75
pence per share and is currently considering a number of financing and funding
options for the current year which, if successful, would provide the Company
with capital to further the work programmes on the above noted projects.
Directors and Staff
I would like to thank my fellow directors, staff and consultants for their
support and dedication, which has allowed the Company to continue to develop.
Their support and commitment is key to the success of the Company.
Outlook
The Company is looking forward to the progressing of work programmes on its
highly prospective Nickel, Copper and Platinum Group Element targets in Northern
Ireland (including a tangible Copper target). A clear work programme and
strategy have been identified for the Company’s exploration assets in Finland
and the Company is also hopeful of arriving at the end of the permitting process
for the Lahtojoki diamond deposit which will enable the Company to progress to
mine development on securing of appropriate finance.
Finally, I would like to take this opportunity to place on record my
appreciation for the continued support shown by both current and former
directors in terms of remuneration deferral. This is a significant number in
the context of the Company’s balance sheet and consideration is currently being
given to a potential re-structuring of these amounts.
Yours faithfully,
Brendan McMorrow
Chairman
26 February 2026
Condensed income statement
Note
Six-month
period ended 30 November 2025
(Unaudited) €
Six-month period ended 30 November 2024
(Unaudited) €
Year ended 31 May 2025
(Audited) €
Continuing operations
Operating expenses
(180,623)
(164,741)
(364,615)
Movement in fair value of warrants
6
18,272
46,795
91,738
Operating loss
(162,351)
(117,946)
(272,887)
Interest expense
(3,240)
(3,240)
(6,480)
Loss before taxation
(165,591)
(121,186)
(279,357)
Income tax expense
–
–
–
Loss for the financial period/year
(165,591)
(121,186)
(279,357)
Loss per share
Basic and diluted loss per share
2
(0.0009)
(0.0012)
(0.0020)
Condensed statement of comprehensive income
Six-month period Six-month period Year ended
ended 30 November ended 30 November 31 May 2025
2025 2024
(Audited) €
(Unaudited) € (Unaudited) €
Loss for the (165,591) (121,186) (279,357)
financial
period/year
Income/(expense) – – –
recognised in
other
comprehensive
income
Total (165,591) (121,186) (279,357)
comprehensive
income/(expense)
for the
financial
period/year
The accompanying notes form an integral part of these condensed financial
statements.
Note
30 November 2025 (Unaudited)
30 November 2024 (Unaudited)
Year ended 31 May 2025 (Audited)
€
€
€
Assets
Non-current assets
Intangible assets
3
12,192,618
11,896,405
12,085,967
Tangible Assets
2,114
–
2,114
Total non-current assets
12,194,732
11,896,405
12,088,081
Current assets
Cash and cash equivalents
27,711
47,290
40,862
Other receivables
109,644
114,183
117,094
Total current assets
137,355
161,473
157,956
Total assets
12,332,087
12,057,878
12,246,037
Equity
Capital and reserves
Called up share capital presented as equity
3,226,368
3,209,432
3,220,201
Share premium
11,601,317
11,104,265
11,399,829
Share based payments reserve
450,658
450,658
450,658
Retained losses
(5,094,418)
(4,770,656)
(4,928,827)
Total equity
10,183,925
9,993,699
10,141,861
Liabilities
Non-current liabilities
Warrant liabilities
5
14,608
–
32,880
Total non-current liabilities
14,608
–
32,880
Current liabilities
Trade and other payables: amounts falling due within one year
6
1,987,808
1,902,683
1,928,790
Convertible Loan
135,442
128,962
132,202
Warrant Liabilities
5
–
4,230
–
Derivative Liability
5
10,304
10,304
10,304
Total current liabilities
2,133,554
2,064,179
2,071,296
Total liabilities
2,148,162
2,064,179
2,104,176
Total equity and liabilities
12,332,087
12,057,878
12,246,037
The accompanying notes form an integral part of these condensed financial
statements.
Six-month period ended 30 November 2024 (Unaudited) €
Six-month period ended 30 November 2024 (Unaudited) €
Year ended 31 May 2025 (Audited)
€
Cash flows from operating activities
Loss for the financial period/year
(165,591)
(121,186)
(279,357)
Adjustments for:
Interest expense
3,240
3,240
6,480
Movement in fair value of warrants
(18,272)
(46,795)
(91,738)
Increase in trade and other payables
59,018
17,083
25,189
Decrease/(increase) in other receivables
7,450
(32,632)
(35,543)
Net cash used in operating activities
(114,155)
(180,290)
(374,969)
Cash flows from investing activities
Investment in exploration and evaluation
(106,651)
(206,211)
(395,773)
Expenditure on tangible assets
–
–
(2,114)
Net cash used in investing activities
(106,651)
(206,211)
(397,887)
Cash flows from financing activities
Proceeds on issue of share capital
207,655
394,194
774,121
Net cash provided by financing activities
207,655
394,194
774,121
Increase in cash and cash equivalents
(13,151)
7,693
1,265
Cash and cash equivalents at beginning of financial period/year
40,862
39,597
39,597
Cash and cash equivalents at end of financial period/year
27,711
47,290
40,862
The accompanying notes form an integral part of these condensed financial
statements.
Share capital (including deferred share capital)
Share premium
Share-based payment reserve
Retained
losses
Total equity
€
€
€
€
€
Balance at 1 June 2025
3,220,201
11,399,829
450,658
(4,928,827)
10,141,861
Issue of share capital
6,167
210,987
–
–
217,154
Share issue costs
–
(9,499)
–
–
(9,499)
Loss for the financial period
–
–
–
(165,591)
(165,591)
Balance at 30 November 2025
3,226,368
11,601,317
450,658
(5,094,418)
10,183,925
Balance at 1 June 2024
3,203,532
10,736,889
450,658
(4,649,470)
9,741,609
Issue of share capital
5,900
403,277
–
–
409,177
Share issue costs
–
(35,900)
–
–
(35,900)
Loss for the financial period
–
–
–
(121,187)
(121,187)
Balance at 30 November 2024
3,209,432
11,104,266
450,658
(4,770,657)
9,993,699
Share capital
The share capital comprises the nominal value share capital issued for cash and
non-cash consideration. The share capital also comprises deferred share capital.
The deferred share capital* arose through the restructuring of share capital
which was approved at an Annual General Meeting held on 9 December 2016.
Authorised share capital:
The authorised share capital at 30 November 2025 compromised 7,301,301,041
ordinary shares of €0.00025 each, and 317,785,034 deferred shares of €0.00999
each* (€5,000,000), (30 November 2024: 7,301,301,041 ordinary shares of €0.00025
each, and 317,785,034 deferred shares of €0.00999 each* (€5,000,000)).
*Capital reorganisation:
Following approval at an Annual General Meeting («AGM») held on 9 December 2016,
the Company reorganised its share capital by subdividing and reclassifying each
issued ordinary share of €0.01 as one ordinary share of €0.00001 each and one
deferred share of €0.00999 each. The Deferred Shares have no right to vote,
attend or speak at general meetings of the Company and have no right to receive
any dividend or other distribution, and have only limited rights to participate
in any return of capital on a winding-up or liquidation of the Company, which
will be of no material value. No application was made to the London Stock
Exchange for admission of the Deferred Shares to trading on the AIM.
Consolidated shares:
On 21 December 2017, the Company passed a Special Resolution at the Company’s
AGM, that all of the ordinary shares of €0.00001 each in the capital of the
Company, whether issued or unissued were consolidated into New Ordinary Shares
of €0.00025 each in the capital of the Company («consolidated shares») on the
basis of one consolidated share for every 25 existing ordinary shares. Following
the consolidation of the ordinary shares on 21 December 2017, the warrants in
issue were consolidated into one consolidated warrant for every 25 existing
warrants. The exercise price in relation to the warrants was also adjusted at
this time (see Note 2).
Share and Warrant issues during the period:
During the period ended 30 November 2025, the Company raised €217,154 (£185,000)
before expenses through the issue of 24,666,666 new ordinary shares at a price
of £0.0075 per ordinary share.
Share premium
The share premium comprises the excess consideration received in respect of
share capital over the nominal value of the shares issued as adjusted for the
costs of share issue in line with the Company’s accounting policies.
Share based payment reserve
The share based payment reserve comprises of the fair value of all share options
and warrants which have been charged over the vesting period, net of amounts
relating to share options and warrants forfeited, exercised or lapsed during the
period, which are reclassified to retained earnings.
Retained losses
This reserve represents the accumulated losses incurred by the Company up to the
condensed statement of financial position date.
The accompanying notes form an integral part of these condensed financial
statements.
1 Accounting policies
Reporting entity
Karelian Diamond Resources plc (the «Company») is a company domiciled in
Ireland.
Basis of preparation and statement of compliance
The condensed financial statements for the six months ended 30 November 2025 are
unaudited.
The condensed financial statements have been prepared in accordance with
International Accounting Standard («IAS») 34: Interim Financial Reporting.
The condensed financial statements do not include all the information and
disclosures required in the annual financial statements, and should be read in
conjunction with the Company’s annual financial statements as at 31 May 2025,
which are available on the Company’s website – www.kareliandiamondresources.com.
The accounting policies adopted in the presentation of the condensed financial
statements are consistent with those followed in the preparation of the
Company’s annual financial statements for the year ended 31 May 2025.
The condensed financial statements have been prepared under the historical cost
convention, except for derivative financial instruments which are measured at
fair value at each reporting date.
The condensed financial statements are presented in Euro («€»). The Euro is the
functional currency of the Company.
The preparation of condensed financial statements requires the Board of
Directors and management to use judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets, liabilities,
income and expenses. Actual results may differ from those estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the financial period in which the
estimate is revised and in any future financial periods affected. Details of
critical judgements are disclosed in the accounting policies detailed in the
annual financial statements.
The financial information presented herein does not amount to statutory
financial statements that are required by Chapter 4 part 6 of the Companies Act
2014 to be annexed to the annual return of the Company. The statutory financial
statements for the financial year ended 31 May 2025 were annexed to the annual
return and filed with the Registrar of Companies. The audit report on those
financial statements was unqualified.
These condensed financial statements were authorised for issue by the Board of
Directors on 26 February 2026.
Going concern
The Company recorded a loss of € 165,591 for the six-month period ended 30
November 2025 (30 November 2024: loss of €121,186). The Company had net current
liabilities of €1,996,197 at that date (30 November 2024: €1,902,276).
The Board of Directors have considered carefully the financial position of the
Company and in that context, have prepared and reviewed cash flow forecasts for
the period to 28 February 2027. As set out further in the Chairman’s statement,
the Company expects to incur capital expenditure in 2026, consistent with its
strategy as an exploration company. In reviewing the proposed work programme for
exploration and evaluation assets, the results obtained from the exploration
programme and the prospects for raising additional funds as required, the Board
of Directors are satisfied that it is appropriate to prepare the financial
statements on a going concern basis.
Statement of compliance
The Company’s financial statements have been prepared in accordance with IFRS as
adopted by the European Union («EU»).
Recent accounting pronouncements
Certain new accounting standards and interpretations have been published and
endorsed by the EU that were not mandatory for 31 May 2025 reporting periods and
have not been early adopted by the Company. Directors do not consider that
those of the below that will be effective for the year ended 31 May 2026 will
have a material effect on the financial statements and they are considering
whether or not those that become effective in the following financial year will
have any impact on the financial statements.
· Amendments to IAS 21 Lack of Exchangeability – Effective date 1 January
2025;
· Amendments to IAS 7 and IFRS 17 regarding supplier finance arrangements –
Effective date 1 January 2025;
· Amendments to IFRS 9 and IFRS 7 regarding classification and measurement of
financial instruments – Effective date 1 January 2026;
· Annual Improvements to IFRS Accounting Standards – Volume 11 – Effective
date 1 January 2026;
2 Profit/(loss) per share
Basic earnings per
share
Six-month Six-month Year ended
period ended period 31 May 2025
30 ended 30
November November (Audited) €
2025 2024
(Unaudited) (Unaudited)
€ €
Loss for the (165,591) (121,186) (279,357)
financial
period/year
attributable to
equity holders of
the
Company
Number of ordinary 182,784,936 124,748,635 138,390,187
shares for the
purposes of
earnings per share
Basic loss per (€0.0009) (€0.0012) (€0.0020)
ordinary share
Diluted earnings/(loss) per share
The effect of share options and warrants is anti-dilutive.
3 Intangible assets
Exploration and 30 November 30 November 31 May 2025
evaluation assets 2025 2024
(Unaudited) € (Unaudited) € (Audited) €
Cost
At 1 June 12,085,967 11,690,194 11,690,194
Expenditure during the
financial period/year
59,885 118,372 199,937
· License and
appraisal costs
46,766 87,839 195,836
· Other operating
expenses
At 30 November/31 May 12,192,618 11,896,405 12,085,967
Exploration and evaluation assets relate to expenditure incurred in the
development of mineral exploration opportunities. These assets are carried at
historical cost and have been assessed for impairment in particular with regard
to the requirements of IFRS 6: Exploration for and Evaluation of Mineral
Resources relating to remaining licence or claim terms, likelihood of renewal,
likelihood of further expenditure, possible discontinuation of activities as a
result of specific claims and available data which may suggest that the
recoverable value of an exploration and evaluation asset is less than its
carrying amount.
The Board of Directors have considered the proposed work programmes for the
underlying mineral resources. They are satisfied that there are no indications
of impairment.
The Board of Directors note that the realisation of the intangible assets is
dependent on further successful development and ultimate production of the
mineral resources and the availability of sufficient finance to bring the
resources to economic maturity and profitability.
4 Commitments and Contingencies
At 30 November 2025, there were no capital commitments or contingent liabilities
(31 May 2025: No capital commitments or contingencies liabilities). Should the
Company decide to develop the Lahtojoki project, an amount of €40,000 is payable
by the Company to the vendors of the Lahtojoki mining concession.
5 Convertible Loan
On 26 May 2023, the Company entered into a convertible loan note agreement for a
total amount of €129,550 (£112,500) with Conroy Gold and Natural Resources plc
which is both a shareholder in the company and has a number of other connections
as set out in Note 14 to the audited financial statements for year ended 31 May
2025. The convertible loan note is unsecured, had a term of 18 months and
attracts interest at a rate of 5% per annum which is payable on the maturity or
conversion of the convertible loan. The conversion price is at a price of 5
pence per ordinary share. The shareholder has the right to seek conversion of
the principal amount outstanding on the convertible loan note and all interest
accrued at any time during the term. The convertible term has passed but the
loan continues in place on an informal basis on the same terms and is classified
as a current liability for the period ended 30 November 2025. The Company is in
discussions with the note holder to extend the term of the loan note.
€10,304 was recorded as a derivative liability attached to the total convertible
loan note above and the net amount of €119,246 was initially recorded as the
value of the convertible loan at 31 May 2023. The loan incurred interest of
€3,240 in the current period (31 November 2024: €3,240).
6 Trade and other payables: amounts falling due within one year
Included in the payables figure of €1,987,806 is an amount of €1,660,704 in
respect of amounts owing to both current and former directors of the Company who
provide continuing support to the Company through renewing annually a commitment
not to seek payment of the amounts owed unless the Company is in a position to
discharge them.
7 Warrant liabilities
The Company holds Sterling based warrants. The Company estimates the fair value
of the sterling-based warrants using the Binomial Lattice Model. The
determination of the fair value of the warrants is affected by the Company’s
share price along with other assumptions.
As part of the share issue in July 2024, the Company issued 11,799,997 warrants
at a price of GBP 3 pence per warrant. These warrants expired in July 2025.
There are 43,076,667 warrants to acquire shares at a price of GBP 1.5p per share
still in issue, expiring in February 2027. The fair value of these warrants was
€14,607 as at 30 November 2025. The movement in fair value of warrants
including the effect of warrant expiry resulted in a non-cash gain of €18,272 in
the period.
8 Related party transactions
(a) Apart from Directors’ remuneration, equity investment from Directors, and
loans from shareholders, (who are also Directors), there have been no contracts
or arrangements entered into during the six-month period in which a Director of
the Company had a material interest.
(b) The Company shares accommodation and staff with Conroy Gold and Natural
Resources plc («Conroy») which have certain common Directors and shareholders.
For the six-month period ended 30 November 2025, Conroy incurred costs totalling
€38,756 (30 November 2024: €34,245) on behalf of the Company. These costs were
recharged to the Company by Conroy. At 30 November 2025, Conroy was owed
€115,031 (30 November 2024: €126,592) by the Company.
9 Subsequent events
There were no other material events subsequent to the reporting date which
necessitate revision of the figures or disclosures included in the financial
statements.
10 Approval of the condensed financial statements
These condensed financial statements were approved by the Board of Directors on
26 February 2026. A copy of the condensed financial statements will be available
on the Company’s website www.kareliandiamondresources.com on 27 February 2026.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/karelian-diamond-resources-plc/r/half-yearly-results-for-the-six-months-ended-30-november-2025,c4314055
The following files are available for download:
https://news.cision.com/karelian-diamond-resources-plc/i/4314055-0-jpeg,c3514613 4314055_0.jpeg
