Last checked at 27 Sep 2012 07:00
Eurasia Mining plc
("Eurasia" or the "Company")
Interim Results for the Six Months Ended 30 June 2012
Chairman's Statement
The Company maintained steady progress on its current projects during the first half of this year, particularly at West Kytlim in the Urals, as well as continuing its assessment of new prospective Gold opportunities in other regions of the Russia and the Commonwealth of Independent States.
West Kytlim
All the required documentation and applications for a production licence have been submitted and the Company now awaits various departmental sign-offs. In parallel, site work including drilling is continuing, to assist in planning the future mining operation as well as expanding the mineable Platinum resources within the current Exploration Licence.
As outlined in previous updates, the development of near surface alluvial platinum deposits like West Kytlim, is attractive both technically and commercially. This is due to the ease of ore processing using readily available equipment and due to the resultant low capital and operating costs, combined with a short lead time, to produce saleable Platinum concentrate.
The present turmoil in the South African platinum mining sector brings into focus the cost and logistics advantages of Eurasia's planned alluvial platinum operation where lowest quartile cost of production will be targeted.
The board looks forward to updating shareholders on plans for the development of the West Kytlim platinum deposits once the production licence is received.
Monchetundra
The Company has submitted an application to extend the licence for the Monchetundra, Palladium-Platinum (Copper Nickel) project located in the Kola Region of NE Russia.
Kamushanovsky
Feasibility studies currently in progress are assessing alternative mining and ore concentration methods for uranium oxide recovery from the near surface deposit as a potentially low cost future mining operation. The medium to long term outlook for Uranium remains bright.
New projects
Eurasia has a number of prospective gold projects under review in the Far East region of Russia.
The Company remains adequately funded and we look forward to delivering further updates on advancement of our projects in due course.
Michael Martineau
Chairman
For more information please contact:
Eurasia Mining plc
Christian Schaffalitzky / Michael de Villiers Tel: +44 (0) 207 932 0418
Katy Mitchell, WH Ireland Limited Tel: +44 (0) 161 832 2174
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2012
Note | 6 months to | 12 months to | 6 months to | |
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
(unaudited) | (audited) | (unaudited) | ||
Revenue | 37,581 | 79,580 | 23,386 | |
Administrative costs | (317,312) | (938,076) | (330,931) | |
Result from equity accounted investments | 5 | - | (29,625) | (114) |
Finance income | 1,556 | - | - | |
Other financial results | 23,061 | (61,531) | (81,554) | |
Loss before tax | (255,114) | (949,652) | (389,213) | |
Income tax expense | - | - | - | |
Loss for the period | (255,114) | (949,652) | (389,213) | |
Other comprehensive (loss)/income: | ||||
Exchange differences on translation of foreign operations | (29,117) | 72,234 | 117,067 | |
Other comprehensive (loss)/income for the period, net of tax | (29,117) | 72,234 | 117,067 | |
Total comprehensive loss for the period | (284,231) | (877,418) | (272,146) | |
Loss for the period attributable to: | ||||
Owners of the parent | (216,372) | (934,273) | (389,213) | |
Non-controlling interest | (1,067) | (15,379) | - | |
(217,439) | (949,652) | (389,213) | ||
Total comprehensive loss for the period attributable to: | ||||
Owners of the parent | (280,096) | (875,862) | (272,146) | |
Non-controlling interest | (4,135) | (1,556) | - | |
(284,231) | (877,418) | (272,146) | ||
Basic and diluted loss (pence per share) | (0.03) | (0.15) | (0.06) |
Condensed consolidated statement of financial position
as at 30 June 2012
Note | At 30 June | At 31 December | At 30 June | |
2012 | 2011 | 2011 | ||
(unaudited) | (audited) | (unaudited) | ||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 4 | 24,278 | 24,598 | 25,112 |
Investments in equity accounted investees | 5 | - | - | 72,144 |
Other financial assets | 6 | 2,736,353 | 2,544,321 | 1,665,254 |
Total non-current assets | 2,760,631 | 2,568,919 | 1,762,510 | |
Current assets | ||||
Inventories | 291 | 376 | 669 | |
Trade and other receivables | 47,975 | 32,907 | 260,336 | |
Cash and bank balances | 2,528,607 | 171,098 | 317,529 | |
Total current assets | 2,576,873 | 204,381 | 578,534 | |
Total assets | 5,337,504 | 2,773,300 | 2,341,044 | |
EQUITY | ||||
Capital and reserves | ||||
Issued capital | 7 | 22,327,527 | 19,442,527 | 18,938,115 |
Reserves | 8 | 3,183,545 | 3,209,594 | 3,070,705 |
Accumulated losses | (20,589,164) | (20,335,117) | (19,790,057) | |
Equity attributable to equity holders of the parent | 4,921,908 | 2,317,004 | 2,218,763 | |
Non-controlling interest | 294,269 | 298,404 | - | |
Total equity | 5,216,177 | 2,615,408 | 2,218,763 | |
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 121,327 | 157,892 | 122,281 | |
Total current liabilities | 121,327 | 157,892 | 122,281 | |
Total liabilities | 121,327 | 157,892 | 122,281 | |
Total equity and liabilities | 5,337,504 | 2,773,300 | 2,341,044 |
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 | Non-controlling interest | Total equity | |
Balance at 1 January 2011 | 583,346 | 10,852,321 | 7,025,483 | 3,763,993 | (726,910) | (19,480,722) | 2,017,511 | 2,017,511 | ||
Issue of share capital on exercise of warrants | 7 | 40,564 | 436,401 | - | (71,323) | - | - | 405,642 | - | 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 | - | 67,756 |
Transaction with owners | 40,564 | 436,401 | - | (83,445) | - | 79,878 | 473,398 | - | 473,398 | |
Loss for the period | (389,213) | (389,213) | - | (389,213) | ||||||
Other comprehensive loss: | ||||||||||
Exchange differences on translationof foreign operations | - | - | - | - | 117,067 | - | 117,067 | - | 117,067 | |
Total comprehensive lossfor the period ended 30 June 2011 | - | - | - | - | 117,067 | (389,213) | (272,146) | - | (272,146) | |
Balance at 30 June 2011 | 623,910 | 11,288,722 | 7,025,483 | 3,680,548 | (609,843) | (19,790,057) | 2,218,763 | - | 2,218,763 | |
Condensed statement of changes in equity
for the six months ended 30 June 2012
Attributable to owners of the parent | ||||||||||
Note | Sharecapital | Share premium | Deferred shares | Other reserves | Translation reserve | Accumulated losses | Total attributable to owners of parent | Non-controlling interest | Total equity | |
Balance at 1 January 2012 | 676,969 | 11,740,075 | 7,025,483 | 3,878,093 | (668,499) | (20,335,117) | 2,317,004 | 298,404 | 2,615,408 | |
Issue of share capital | 7 | 288,500 | 2,596,500 | - | - | - | - | 2,885,000 | - | 2,885,000 |
Transaction with owners | 288,500 | 2,596,500 | - | - | - | - | 2,885,000 | - | 2,885,000 | |
Loss for the period | (254,047) | (254,047) | (1,067) | (255,114) | ||||||
Other comprehensive loss: | ||||||||||
Exchange differences on translationof foreign operations | - | - | - | - | (26,049) | - | (26,049) | (3,068) | (29,117) | |
Total comprehensive lossfor the period ended 30 June 2012 | - | - | - | - | (26,049) | (254,047) | (280,096) | (4,135) | (284,231) | |
Balance at 30 June 2012 | 965,469 | 14,336,575 | 7,025,483 | 3,878,093 | (694,548) | (20,589,164) | 4,921,908 | 294,269 | 5,216,177 | |
Condensed consolidated statement of cash flows
for the six months ended 30 June 2012
6 months to | 12 months to | 6 months to | ||
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
(unaudited) | (audited) | (unaudited) | ||
Cash flows from operating activities | ||||
Loss for the period | (255,114) | (949,652) | (389,213) | |
Adjustments for: | ||||
Depreciation and amortisation of non-current assets: | ||||
- Fixed assets | 193 | 1,039 | 819 | |
Share of loss of associates | - | 29,625 | 114 | |
Net foreign exchange (profit)/loss | (23,061) | 61,531 | 81,554 | |
Investment revenue recognised in profit and loss | (1,556) | - | - | |
Costs recognised in profit or loss in respect of equity-settled share-based payments | - | 265,301 | 67,756 | |
(279,538) | (592,156) | (238,970) | ||
Movements in working capital | ||||
Decrease in inventories | 85 | 550 | 257 | |
(Increase)/decrease in trade and other receivables | (16,109) | 12,184 | (215,245) | |
Decrease in trade and other payables | (35,787) | (19,427) | (54,361) | |
Cash used in operations | (331,349) | (598,849) | (508,319) | |
Net cash used in operating activities | (331,349) | (598,849) | (508,319) | |
Cash flows from investing activities | ||||
Advanced to joint venture | (197,318) | (1,006,261) | (521,013) | |
Advanced to non-related party | - | (389,392) | - | |
Contributed by non-controlling party | - | 299,960 | - | |
Payments for property, plant and equipment | (165) | (513) | - | |
Interest received | 1,556 | - | - | |
Net cash used in investing activities | (195,927) | (1,096,206) | (521,013) | |
Cash flows from financing activities | ||||
Proceeds from issues of equity shares | 2,885,000 | 910,054 | 405,642 | |
Net cash generated by financing activities | 2,885,000 | 910,054 | 405,642 | |
Net increase/(decrease) in cash and cash equivalents | 2,357,724 | (785,001) | (623,690) | |
Effects of exchange rate changes on the balance ofcash held in foreign currencies | (215) | 12,463 | (2,417) | |
Cash and cash equivalents at the beginning of period | 171,098 | 943,636 | 943,636 | |
Cash and cash equivalents at the end of the period | 2,528,607 | 171,098 | 317,529 |
Selected notes to the condensed consolidated financial statements
for the six months ended 30 June 2012
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 2011, 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 2012 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 2011. | ||||
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 2011. | ||||
4. Additions and disposals of property, plant and equipment | ||||
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
£ | £ | £ | ||
Net book value at the beginning of period | 24,598 | 25,166 | 25,166 | |
Additions | 165 | 513 | - | |
Depreciation | (193) | (1,039) | (819) | |
Exchange differences | (292) | (42) | 765 | |
Net book value at the end of period | 24,278 | 24,598 | 25,112 | |
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 (2011 - nil) | ||||
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
£ | £ | £ | ||
Investments in associates | ||||
Net book value at the beginning of period | - | 35,003 | 35,003 | |
Group's recognised share of loss | - | (29,625) | (195) | |
Exchange differences | - | (5,378) | (13,879) | |
- | - | 20,929 | ||
Net book value at the end of period | - | - | 20,929 | |
6. Other financial assets | ||||
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
Loan to joint venture | 2,350,950 | 2,154,929 | 1,665,254 | |
Advances to non-related party | 385,403 | 389,392 | 1,665,254 | |
2,736,353 | 2,544,321 | 3,330,508 | ||
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. | ||||
Advances to non-related party represent payment of $602,000 made in 2011 towards acquisition of 55% interest in the Kamushanovsky uranium project in Kyrgyzstan. | ||||
7. Share capital | ||||
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
Issued ordinary shares with a nominal value of 0.1p: | ||||
Number | 965,468,701 | 676,968,701 | 623,910,034 | |
Nominal value (£) | 965,469 | 676,969 | 623,910 | |
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 2012 | 676,968,701 | 676,969 | 11,740,075 | |
Share placing for cash | 288,500,000 | 288,500 | 2,596,500 | |
Balance at 30 June 2012 | 965,468,701 | 965,469 | 14,336,575 | |
8. Reserves | ||||
30 June | 31 December | 30 June | ||
2012 | 2011 | 2011 | ||
£ | £ | £ | ||
Capital redemption reserve | 3,539,906 | 3,539,906 | 3,539,906 | |
Foreign currency translation reserve | (694,548) | (668,499) | (609,843) | |
Share-based payment reserve | 338,187 | 338,187 | 140,642 | |
3,183,545 | 3,209,594 | 3,070,705 | ||
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 a reserve arising on the grant of share options to employees under the employee share option plan. | ||||