Last checked at 24 Sep 2010 13:03
Eurasia Mining plc
("Eurasia" or the "Company")
Interim results for the 6 months ended 30 June 2010
Chairman's statement
For the first six months of 2010, your company has been working on finalizing the mining licence for the West Kytlim project in the Urals in Russia. We have been making steady progress and hope that the process will be concluded in the nearest future. Management believe the delay is worthwhile if it allows us to achieve the best outcome for the years of planned platinum production ahead of us.
At our Kola projects, drilling on the newly identified mineralized zone at Monchetundra commenced in September. Results from this programme will be released as they become available. If successful, a new resource here would add considerably to the PGM potential of this licence area.
The Company is continuing to look at a new pipeline of projects in Russia while keeping abreast of developments in Russian mining and licensing legislation. The outlook for mineral exploration and development continues to look positive and the board is evaluating new opportunities in this environment. The Board looks forward to delivering further updates on project opportunities and existing licenses over the next few months.
Dr. Michael Martineau
Chairman
For more information please contact:
Eurasia Mining
Christian Schaffalitzky/ Michael de Villiers
Tel +44 (0) 207 932 0418
W H Ireland Ltd
Katy Mitchell
Tel +44 (0) 161 832 2174
Condensed consolidated statement of comprehensive income
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| Note | 6 months to | 12 months to | 6 months to |
| 30 June | 31 December | 30 June | ||
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| 2010 | 2009 | 2009 |
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| (unaudited) | (audited) | (unaudited) |
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| Impairment loss | 4 | - | (1,116,921) | (1,116,921) |
| Administrative costs |
| (256,953) | (724,824) | (380,787) |
| Result from equity accounted investments | 5 | (195) | 31 | 341 |
| Finance income |
| - | 49 | 37 |
| Finance costs |
| - | (191,170) | (191,170) |
| Other financial results |
| 69,933 | (223,443) | (333,246) |
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| Loss before tax |
| (187,215) | (2,256,278) | (2,021,746) |
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| Income tax expense |
| - | - | - |
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| Loss for the period |
| (187,215) | (2,256,278) | (2,021,746) |
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| Other comprehensive (loss)/income: |
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| Exchange differences on translation of foreign operations |
| (78,029) | 46,273 | 135,772 |
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| Other comprehensive (loss)/income for the period, net of tax |
| (78,029) | 46,273 | 135,772 |
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| Total comprehensive loss for the period |
| (265,244) | (2,210,005) | (1,885,974) |
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| Loss for the period attributable to: |
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| Owners of the parent |
| (187,215) | (2,159,149) | (1,919,209) |
| Non-controlling interest |
| - | (97,129) | (102,537) |
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| (187,215) | (2,256,278) | (2,021,746) |
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| Total comprehensive loss for the period attributable to: |
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| Owners of the parent |
| (265,244) | (2,106,417) | (1,628,657) |
| Non-controlling interest |
| - | (103,588) | (257,317) |
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| (265,244) | (2,210,005) | (1,885,974) |
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| Basic and diluted loss (pence per share) |
| (0.08) | (0.92) | (0.87) |
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Condensed consolidated statement of financial position
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| Note | At 30 June 2010 | At 31December 2009 | At 30 June 2009 |
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| (unaudited) | (audited) | (unaudited) | |
| ASSETS |
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| Non-current assets |
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| Property, plant and equipment |
| 25,735 | 26,345 | 26,605 |
| Investments in equity accounted investees | 5 | 20,929 | 35,003 | 19,495 |
| Other financial assets |
| 617,832 | 262,766 | 118,676 |
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| Total non-current assets |
| 664,496 | 324,114 | 164,776 |
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| Current assets |
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| Inventories |
| 1,277 | 1,375 | 611 |
| Trade and other receivables |
| 153,820 | 26,025 | 28,350 |
| Cash and bank balances |
| 87,416 | 137,757 | 364,664 |
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| Total current assets |
| 242,513 | 165,157 | 393,625 |
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| Total assets |
| 907,009 | 489,271 | 558,401 |
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| EQUITY |
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| Capital and reserves |
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| Issued capital | 6 | 16,943,580 | 16,240,544 | 15,581,693 |
| Reserves | 7 | 2,962,223 | 3,077,523 | 3,244,014 |
| Accumulated losses |
| (19,160,458) | (18,973,243) | (18,746,714) |
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| Equity attributable to equity holders of the parent |
| 745,345 | 344,824 | 78,993 |
| Non-controlling interest |
| - | - | - |
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| Total equity |
| 745,345 | 344,824 | 78,993 |
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| LIABILITIES |
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| Current liabilities |
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| Trade and other payables |
| 161,664 | 144,447 | 479,408 |
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| Total current liabilities |
| 161,664 | 144,447 | 479,408 |
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| Total liabilities |
| 161,664 | 144,447 | 479,408 |
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| Total equity and liabilities |
| 907,009 | 489,271 | 558,401 |
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Condensed statement of changes in equity
for the six months ended 30 June 2009
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| Attributable to owners of the parent |
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| Note | Share capital | Share premium | Deferred shares | Other reserves | Translation reserve | Accumulated losses | Total attributable to owners of parent | Non-controlling interest | Total equity |
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| Balance at 1 January 2009 |
| 7,068,860 | 7,020,549 | - | 4,010,174 | (743,142) | (16,872,373) | 484,068 | 2,855 | 486,923 |
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| Share capital restructure | 6 | (7,025,483) | - | 7,025,483 | - | - | - | - | - | - |
| Issue of share capital | 6 | 254,184 | 1,238,100 | - | - | - | - | 1,492,284 | - | 1,492,284 |
| Recognition of equity component of convertible loan notes | 7 | - | - | - | 21,726 | - | - | 21,726 | - | 21,726 |
| Utilised equity component of convertible loan notes on conversion | 7 | - | - | - | (120,527) | - | - | (120,527) | - | (120,527) |
| Reversal of un-used equity component of convertible loan notes | 7 | - | - | - | (44,868) | - | 44,868 | - | - | - |
| Reversal of share-based payment reserve | 7 | - | - | - | (12,574) | - | - | (12,574) | - | (12,574) |
| Setting off minority shareholder loan |
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| 97,135 | 97,135 |
| Transaction with owners |
| (6,771,299) | 1,238,100 | 7,025,483 | (156,243) | - | 44,868 | 1,380,909 | 97,135 | 1,478,044 |
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| Loss for the period |
| - | - | - | - | - | (1,919,209) | (1,919,209) | (102,537) | (2,021,746) |
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| Other comprehensive income |
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| Exchange differences on translation of foreign operations |
| - | - | - | - | 133,225 | - | 133,225 | 2,547 | 135,772 |
| Total comprehensive loss for the period ended 30 June 2009 |
| - | - | - | - | 133,225 | (1,919,209) | (1,785,984) | (99,990) | (1,885,974) |
| Balance at 30 June 2009 |
| 297,561 | 8,258,649 | 7,025,483 | 3,853,931 | (609,917) | (18,746,714) | 78,993 | - | 78,993 |
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Condensed statement of changes in equity
for the six months ended 30 June 2010
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| Attributable to owners of the parent |
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| Note | Share capital | Share premium | Deferred shares | Other reserves | Translation reserve | Accumulated losses | Total attributable to owners of parent | Non-controlling interest | Total equity |
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| Balance at 1 January 2010 |
| 356,337 | 8,858,724 | 7,025,483 | 3,767,933 | (690,410) | (18,973,243) | 344,824 | - | 344,824 |
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| Issue of share capital | 6 | 68,107 | 634,929 | - | - | - | - | 703,036 | - | 703,036 |
| Reversal of share-based payment reserve | 7 | - | - | - | (37,271) | - | - | (37,271) | - | (37,271) |
| Transaction with owners |
| 68,107 | 634,929 | - | (37,271) | - | - | 665,765 | - | 665,765 |
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| Loss for the period |
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| (187,215) | (187,215) | - | (187,215) |
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| Other comprehensive loss |
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| Exchange differences on translation of foreign operations |
| - | - | - | - | (78,029) | - | (78,029) | - | (78,029) |
| Total comprehensive loss for the period ended 30 June 2010 |
| - | - | - | - | (78,029) | (187,215) | (265,244) | - | (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 | - | 745,345 |
Condensed consolidated statement of cash flows
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| 6 months to | 12 months to | 6 months to |
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| 30 June | 31 December | 30 June |
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| 2010 | 2009 | 2009 |
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| (unaudited) | (audited) | (unaudited) |
| Cash flows from operating activities |
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| Loss for the period |
| (187,215) | (2,256,278) | (2,021,746) |
| Adjustments for: |
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| - Depreciation and amortisation of non-current assets: |
| - | - | - |
| - Fixed assets |
| 797 | 2,239 | 1,236 |
| - Gain/(loss) on sale or disposal of property, plant and equipment |
| - | (129) | (129) |
| - Impairment of intangible assets recognised in profit or loss |
| - | 1,116,921 | 1,116,921 |
| - Share of loss/(profit) of associates |
| 195 | (31) | (341) |
| - Net foreign exchange (profit)/loss |
| (69,933) | 223,572 | 333,375 |
| - Investment loss/(profit) |
| - | (49) | (37) |
| - Finance costs |
| - | 191,170 | 191,170 |
| - Costs recognised in profit or loss in respect of equity-settled share-based payments |
| - | 17,426 | 17,426 |
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| (256,156) | (705,159) | (362,125) |
| Movements in working capital |
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| Decrease/(increase) in inventories |
| 98 | (6) | 758 |
| Increase in trade and other receivables |
| (127,795) | (740) | (3,054) |
| Increase/(decrease) in trade and other payables |
| 16,590 | (430,673) | (97,485) |
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| Cash used in operations |
| (367,263) | (1,136,578) | (461,906) |
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| Interest paid |
| - | (9,679) | (9,679) |
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| Net cash used in operating activities |
| (367,263) | (1,146,257) | (471,585) |
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| Cash flows from investing activities |
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| Amounts advanced to related parties |
| (348,043) | (139,694) | - |
| Payments for property, plant and equipment |
| - | (971) | (841) |
| Payments for other intangible assets |
| - | (5,058) | (5,058) |
| Proceeds from disposal of property, plant and equipment |
| - | 609 | 609 |
| Interest received |
| - | 49 | 37 |
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| Net cash used in investing activities |
| (348,043) | (145,065) | (5,253) |
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| Cash flows from financing activities |
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| Proceeds from issues of equity shares |
| 665,765 | 586,264 | - |
| Proceeds from issue of convertible loan notes |
| - | 247,500 | 247,500 |
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| Net cash generated by financing activities |
| 665,765 | 833,764 | 247,500 |
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| Net decrease in cash and cash equivalents |
| (49,541) | (457,558) | (229,338) |
| Effects of exchange rate changes on the balance of cash held in foreign currencies |
| (800) | 994 | (319) |
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| Cash and cash equivalents at the beginning of period |
| 137,757 | 594,321 | 594,321 |
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| Cash and cash equivalents at the end of the period |
| 87,416 | 137,757 | 364,664 |
Selected notes to the condensed consolidated financial statements
for the six months ended 30 June 2010
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 2009, 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 2010 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 2009.
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 last annual financial statements for the year ended 31 December 2009, except for the adoption of the following standards as of 1 January 2010:
- IFRS 3 Business Combinations (Revised 2008); - IAS 27 Consolidated and Separate Financial Statements (Revised 2008); - Improvements to IFRSs 2009. Adoption of these standards would not have a significant effect on the current or prior periods.
4. Additions and disposals of intangible assets
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| 30 June 2010 | 31 December 2009 | 30 June 2009 |
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| £ | £ | £ |
| Net book value at the beginning of period |
| - | 1,272,982 | 1,272,982 |
| Additions |
| - | 5,058 | 5,058 |
| Exchange differences |
| - | (161,119) | (161,119) |
| Impairment loss |
| - | (1,116,921) | (1,116,921) |
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| Net book value at the end of period |
| - | - | - |
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)
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| 30 June 2010 | 31 December 2009 | 30 June 2009 |
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| £ | £ | £ |
| Investments in associates |
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| Net book value at the beginning of period |
| 35,003 | 50,498 | 50,498 |
| Group's recognised share of (loss)/profit |
| (195) | 31 | 341 |
| Exchange differences |
| (13,879) | (15,526) | (31,344) |
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| 20,929 | 35,003 | 19,495 |
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| Net book value at the end of period |
| 20,929 | 35,003 | 19,495 |
6. Share capital
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| 30 June 2010 | 31 December 2009 | 30 June 2009 |
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| Issued ordinary shares with a nominal value of 0.1p: |
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| Number |
| 424,443,825 | 356,337,458 | 297,560,964 |
| Nominal value (£) |
| 424,444 | 356,337 | 297,561 |
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| Fully paid ordinary shares carry one vote per share and carry the right to dividends. | ||||
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| Issued deferred shares with a nominal value of 4.9 p: |
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| Number |
| 143,377,203 | 143,377,203 | 143,377,203 |
| Nominal value (£) |
| 7,025,483 | 7,025,483 | 7,025,483 |
Deferred shares have attached to them the following rights and restrictions: - 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 | Share capital | Share premium |
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| £ | £ |
| Balance at 1 January 2010 |
| 356,337,458 | 356,337 | 8,858,724 |
| Exercise of warrants |
| 55,106,367 | 55,107 | 533,229 |
| Share placing for cash |
| 13,000,000 | 13,000 | 117,000 |
| Cost of issue of shares |
| - | - | (15,300) |
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| Balance at 30 June 2010 |
| 424,443,825 | 424,444 | 9,493,653 |
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| Deferred shares |
| Number of deferred shares | Deferred share capital |
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| £ |
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| Balance at 1 January and 30 June 2010 |
| 143,377,203 | 7,025,483 |
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7. Reserves
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| 30 June 2010 | 31 December 2009 | 30 June 2009 |
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| £ | £ | £ |
| Capital redemption reserve |
| 3,539,906 | 3,539,906 | 3,539,906 |
| Foreign currency translation reserve |
| (768,439) | (690,410) | (609,917) |
| Share-based payment reserve |
| 190,756 | 228,027 | 314,025 |
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| 2,962,223 | 3,077,523 | 3,244,014 |
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 professional service agreements and (iii) a reserve arising on the grant of warrants under the terms of an issue of convertible loan notes.