Last checked at 9 Sep 2011 07:00
Eurasia Mining plc
("Eurasia" or the "Company")
Interim Results for the Six Months ended 20 June 2011
CHAIRMAN'S STATEMENT
Over the last six months, progress has been made at Eurasia's West Kytlim alluvial platinum project and, as announced earlier today, since the end of the period under review the authorities have approved two further areas of additional reserves. The Company still awaits approval for its existing application for a production licence at West Kytlim, but as a result of this delay, it may be possible to combine the two new areas into the existing application dependent on the relevant authorities involved in the approval process.
Apart from exploration drilling at West Kytlim, work advanced on the Kamushanovskoye uranium project in Kyrgyzstan, where, as announced on 14 March 2011, Eurasia has agreed to co-fund a Bankable Feasibility Study. Eurasia established a new subsidiary company, Energy Resources Asia Limited, to separately finance this project. Work is proceeding on schedule with approximately US$602,000 invested to date, and further financing planned.
Finally, the Company is continuing to evaluate new opportunities, both in Russia and the former Soviet Union. The Board looks forward to delivering further updates on project opportunities and our existing licenses over the coming months.
Michael Martineau
Chairman
For more information please contact:
Eurasia Mining | |
Christian Schaffalitzky / Michael de Villiers
| Tel: +44 (0) 207 932 0418 |
Katy Mitchell, WH Ireland Limited | Tel: +44 (0) 161 832 2174 |
Dr. Michael Martineau
Chairman
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2011
Note | 6 months to | 12 months to | 6 months to | |
30 June | 31 December | 30 June | ||
2011 | 2010 | 2010 | ||
(unaudited) | (audited) | (unaudited) | ||
Revenue | 23,386 | - | - | |
Administrative costs | (330,931) | (558,918) | (256,953) | |
Result from equity accounted investments | 5 | (114) | (353) | (195) |
Other financial results | (81,554) | 36,716 | 69,933 | |
Loss before tax | (389,213) | (522,555) | (187,215) | |
Income tax expense | - | - | - | |
Loss for the period | (389,213) | (522,555) | (187,215) | |
Other comprehensive (loss)/income: | ||||
Exchange differences on translationof foreign operations | 117,067 | (36,500) | (78,029) | |
Other comprehensive income/(loss) for the period, net of tax | 117,067 | (36,500) | (78,029) | |
Total comprehensive loss for the period | (272,146) | (559,055) | (265,244) | |
Basic and diluted loss (pence per share) | (0.06) | (0.12) | (0.08) |
Condensed consolidated statement of financial position
As at 30 June 2011
Note | At 30 June | At 31 December | At 30 June | |
2010 | 2009 | 2009 | ||
(unaudited) | (audited) | (unaudited) | ||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 4 | 25,112 | 25,166 | 25,735 |
Investments in equity accounted investees | 5 | 72,144 | 31,485 | 20,929 |
Other financial assets | 6 | 1,665,254 | 1,148,586 | 617,832 |
Total non-current assets | 1,762,510 | 1,205,237 | 664,496 | |
Current assets | ||||
Inventories | 669 | 926 | 1,277 | |
Trade and other receivables | 260,336 | 44,803 | 153,820 | |
Cash and bank balances | 317,529 | 943,636 | 87,416 | |
Total current assets | 578,534 | 989,365 | 242,513 | |
Total assets | 2,341,044 | 2,194,602 | 907,009 | |
EQUITY | ||||
Capital and reserves | ||||
Issued capital | 7 | 18,938,115 | 18,461,150 | 16,943,580 |
Reserves | 8 | 3,070,705 | 3,037,083 | 2,962,223 |
Accumulated losses | (19,790,057) | (19,480,722) | (19,160,458) | |
Total equity | 2,218,763 | 2,017,511 | 745,345 | |
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 122,281 | 177,091 | 161,664 | |
Total current liabilities | 122,281 | 177,091 | 161,664 | |
Total liabilities | 122,281 | 177,091 | 161,664 | |
Total equity and liabilities | 2,341,044 | 2,194,602 | 907,009 |
Condensed statement of changes in equity
For the six months ended 30 June 2010
Attributable to owners of the parent | ||||||||
Note | Sharecapital | Share premium | Deferred shares | Other reserves | Translation reserve | Accumulated losses | Total attributable to owners of parent | |
Balance at 1 January 2010 | 356,337 | 8,858,724 | 7,025,483 | 3,767,933 | (690,410) | (18,973,243) | 344,824 | |
Issue of share capital | 7 | 68,107 | 634,929 | - | - | - | - | 703,036 |
Reversal of share-based paymentreserve | 8 | - | - | - | (37,271) | - | - | (37,271) |
Transaction with owners | 68,107 | 634,929 | - | (37,271) | - | - | 665,765 | |
Loss for the period | - | - | - | - | - | (187,215) | (187,215) | |
Other comprehensive income | ||||||||
Exchange differences on translationof foreign operations | - | - | - | - | (78,029) | - | (78,029) | |
Total comprehensive lossfor the period ended 30 June 2010 | - | - | - | - | (78,029) | (187,215) | (265,244) | |
Balance at 30 June 2010 | 424,444 | 9,493,653 | 7,025,483 | 3,730,662 | (768,439) | (19,160,458) | 745,345 | |
Condensed statement of changes in equity
For the six months ended 30 June 2011
Attributable to owners of the parent | ||||||||
Note | Sharecapital | Share premium | Deferred shares | Other reserves | Translation reserve | Accumulated losses | Total attributable to owners of parent | |
Balance at 1 January 2010 | 583,346 | 10,852,321 | 7,025,483 | 3,763,993 | (726,910) | (19,480,722) | 2,017,511 | |
Issue of share capital on exercise of warrants | 7 | 40,564 | 436,401 | - | (71,323) | - | - | 405,642 |
Reversal of warrant valuation reserve on cancellation of warrants | (79,878) | 79,878 | ||||||
Recognition of share-based payment | 8 | - | - | - | 67,756 | - | - | 67,756 |
Transaction with owners | 40,564 | 436,401 | - | (83,445) | - | 79,878 | 473,398 | |
Loss for the period | (389,213) | (389,213) | ||||||
Other comprehensive loss | ||||||||
Exchange differences on translationof foreign operations | - | - | - | - | 117,067 | - | 117,067 | |
Total comprehensive lossfor the period ended 30 June 2010 | - | - | - | - | 117,067 | (389,213) | (272,146) | |
Balance at 30 June 2010 | 623,910 | 11,288,722 | 7,025,483 | 3,680,548 | (609,843) | (19,790,057) | 2,218,763 | |
Condensed consolidated statement of cash flows
for the six months ended 30 June 2011
6 months to | 12 months to | 6 months to | ||
30 June | 31 December | 30 June | ||
2011 | 2010 | 2010 | ||
(unaudited) | (audited) | (unaudited) | ||
Cash flows from operating activities | ||||
Loss for the period | (389,213) | (522,555) | (187,215) | |
Adjustments for: | ||||
Depreciation and amortisation of non-current assets: | ||||
- Fixed assets | 819 | 1,345 | 797 | |
(Gain)/loss on disposal of investments | - | 162 | - | |
Share of loss of associates | 114 | 353 | 195 | |
Net foreign exchange loss/(profit) | 81,554 | (36,878) | (69,933) | |
Costs recognised in profit or loss in respect of equity-settled share-based payments | 67,756 | 64,888 | - | |
(238,970) | (492,685) | (256,156) | ||
Movements in working capital | ||||
Decrease in inventories | 257 | 449 | 98 | |
Increase in trade and other receivables | (215,245) | (18,778) | (127,795) | |
(Decrease)/increase in trade and other payables | (54,361) | 32,317 | 16,590 | |
Cash used in operations | (508,319) | (478,697) | (367,263) | |
Net cash used in operating activities | (508,319) | (478,697) | (367,263) | |
Cash flows from investing activities | ||||
Amounts advanced to related parties | (521,013) | (882,323) | (348,043) | |
Net cash used in investing activities | (521,013) | (882,323) | (348,043) | |
Cash flows from financing activities | ||||
Proceeds from issues of equity shares | 405,642 | 2,166,854 | 665,765 | |
Net cash generated by financing activities | 405,642 | 2,166,854 | 665,765 | |
Net (decrease)/increase in cash and cash equivalents | (623,690) | 805,834 | (49,541) | |
Effects of exchange rate changes on the balance ofcash held in foreign currencies | (2,417) | 45 | (800) | |
Cash and cash equivalents at the beginning of period | 943,636 | 137,757 | 137,757 | |
Cash and cash equivalents at the end of the period | 317,529 | 943,636 | 87,416 |
Selected notes to the condensed consolidated financial statements
for the six months ended 30 June 2011
1. General information
Eurasia Mining Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at Suite 139, Grosvenor Gardens House, 35-37 Grosvenor Gardens, London SW1W 0BS. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals, gold and other minerals in Russia.
The financial information set out in these condensed interim consolidated financial statements (the "Interim Financial Statements") do not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2010, prepared under International Financial Reporting Standards (the "IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was qualified. The report did not contain a statement under Section 498(2) of the Companies Act 2006.
2. Basis of preparation
The Group prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) ,as endorsed by the European Union (EU). These condensed consolidated interim financial statements for the period ended 30 June 2011 have been prepared by applying the recognition and measurement provisions of IFRS and the accounting policies adopted in the audited accounts for the year ended 31 December 2010.
These Interim Financial Statements have been prepared under the historical cost convention.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
The Interim Financial Statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company.
3. Accounting policies
The Interim Financial Statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 31 December 2010.
4. Additions and disposals of property, plant and equipment
30 June 2011 | 31 December 2010 | 30 June 2011 | ||
| £ | £ | £ | |
Net book value at the beginning of period | 25,166 | 26,345 | 26,345 | |
Depreciation | (819) | (1,345) | (797) | |
Exchange differences | 765 | 166 | 187 | |
Net book value at the end of period | 25,112 | 25,166 | 25,735 | |
5. Investments in equity accounted investees
Equity accounted investees represent (i) 50% interests in a Urals Alluvial Platinum Limited (the "UAP") group and (ii) a 20% direct interest in certain companies, which are in turn 80% owned by the UAP. By arrangements between the parties the Company does not have the power to exert control in proportion to its total holding in those companies and therefore the 20% interest is being accounted for as an interest in associates.
Net book value of investments in joint venture is nil (2009 - nil).
30 June 2011 | 31 December 2010 | 30 June 2011 | ||
| £ | £ | £ | |
Investments in associates | ||||
Net book value at the beginning of period | 35,003 | 50,498 | 35,003 | |
Group's recognised share of (loss)/profit | (195) | 31 | (195) | |
Exchange differences | (13,879) | (15,526) | (13,879) | |
20,929 | 35,003 | 20,929 | ||
Net book value at the end of period | 20,929 | 35,003 | 20,929 |
6. Other financial assets
30 June 2011 | 31 December 2010 | 30 June 2011 | ||
Loan to joint venture | 1,665,254 | 1,148,586 | 617,832 | |
1,665,254 | 1,148,586 | 617,832 |
Loan to joint venture is provided on the interest free basis with no fixed date of repayment. Recoverability of the loan is dependent on the borrower's ability to transform into cash generating unit through discovery of economically recoverable reserves and their development into profitable production.
7. Share capital
30 June 2011 | 31 December 2010 | 30 June 2011 | ||
Issued ordinary shares with a nominal value of 0.1p: | ||||
Number | 623,910,034 | 583,345,785 | 424,443,825 | |
Nominal value (£) | 623,910 | 583,346 | 424,444 | |
Fully paid ordinary shares carry one vote per share and carry the right to dividends. | ||||
Issued deferred shares with a nominal value of 4.9 p: | ||||
Number | 143,377,203 | 143,377,203 | 143,377,203 | |
Nominal value (£) | 7,025,483 | 7,025,483 | 7,025,483 | |
Deferred shares have the following rights and restrictions attached to them:- they do not entitle the holders to receive any dividends and distributions;- they do not entitle the holders to receive notice or to attend or vote at General Meetings of the Company;- on return of capital on a winding up the holders of the deferred shares are only entitled to receive the amount paid up on such shares after the holders of the ordinary shares have received the sum of 0.1p for each ordinary share held by them and do not have any other right to participate in the assets of the Company.
The increase in the Company's issued share capital during the reporting period occurred as follows:
Ordinary shares | Number of shares | Sharecapital | Sharepremium | |
£ | £ | |||
Balance at 1 January 2010 | 583,345,785 | 583,346 | 10,852,321 | |
Exercise of warrants | 40,564,249 | 40,564 | 436,401 | |
Balance at 30 June 2011 | 623,910,034 | 623,910 | 11,288,722 |
8. Reserves
30 June | 31 December | 30 June | ||
2011 | 2010 | 2010 | ||
£ | £ | £ | ||
Capital redemption reserve | 3,539,906 | 3,539,906 | 3,539,906 | |
Foreign currency translation reserve | (609,843) | (726,910) | (768,439) | |
Share-based payment reserve | 140,642 | 224,087 | 190,756 | |
3,070,705 | 3,037,083 | 2,962,223 |
The capital redemption reserve was created as a result of a share capital restructuring in earlier years. There is no policy of regular transactions affecting the capital redemption reserve.
The foreign currency translation reserve represents exchange differences relating to the translation from the functional currencies of the Group's foreign subsidiaries into GBP.
The share-based payments reserve represents (i) a reserve arising on the grant of share options to employees under the employee share option plan, (ii) a reserve arising on the grant of warrants under the terms of capital raising.