Have you registered for next week's webinar? We will be joined by Zephyr Energy (ZPHR), SpectrumX, Scirocco Energy (SCIR) and Power Metal Resources (POW). The webinar is sponsored by PrimaryBid. Please register here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksEurasia Mining Regulatory News (EUA)

Share Price Information for Eurasia Mining (EUA)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 27.48
Bid: 26.50
Ask: 27.50
Change: 0.00 (0.00%)
Spread: 1.00 (3.77%)
Open: 29.25
High: 27.50
Low: 26.25
Yest. Close: 29.00
EUA Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

Interim Report

Wed, 30th Sep 2020 16:56

RNS Number : 6679A
Eurasia Mining PLC
30 September 2020
 

 

EURASIA MINING PLC

("Eurasia" or "the Company")

Interim report for the six months ended 30 June 2020

 

 

 

 

 

Chairman's Statement

 

As you are aware, our Company is now in an offer period and has appointed several professional advisers including UBS on investment banking side and recently DLA Piper on the legal side to work with the Company through the sale process. This strategic decision was the culmination of many years of hard work by our team in realising the value in our projects. With the final approval of the Flanks license surrounding Monchetundra, the Company has been successful in establishing a dominant position and a first mover advantage in Kola PGM, which, coincident with developments in the PGM market, has spurred interest in the Company.

The board and executive team have now been restructured to fully focus on the sale process.

Meanwhile our mine at West Kytlim is now owner operated. Running the mine ourselves has created synergies and efficiencies particularly in the project's geological and concentrate upgrade functions. Our Definitive Feasibility Study for the project's resources, contracted to GIP (see RNS 18 August 2020) is on schedule and the new Tipil license Area (24.5km2) is aimed at further increasing the life of mine. West Kytlim is now a sustainable and long-term low cost PGM resource in the Urals, where again we have established a dominant stance.

Lastly the Company is in a strong financial position, considerably stronger than at any point in the past decade. Following the completion of the Placing with institutional investors announced in August 2020, the Company raised US$10m.

Shareholders should recognise that the process Eurasia is in now implies that the Company is very limited in what it can discuss in the public domain. Nevertheless, we look forward to updating our many long-term supporters and new members.

 

 

 

Christian Schaffalitzky, Executive Chairman.

ENQUIRIES:

Eurasia Mining Plc

Christian Schaffalitzky/ Keith Byrne

+44 (0)207 932 0418

 

SP Angel Corporate Finance LLP (Nomad and Joint Broker)

Ewan Leggat / David Hignell / Soltan Tagiev

+44 (0)20 3470 0470

Optiva Securities (Joint Broker)

Christian Dennis

Tel: +44 (0) 20 3137 1902

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

 

MARKET SUMMARY

Platinum prices have recovered from a reaction to the Global Pandemic in March and are now trading at greater than US$870/ounce1. Palladium continues to perform strongly, well established above US$2,000, a 26%1 increase year on year, driven by predicted continuing strong demand from automakers (tighter ecological standards and higher loadings of palladium per vehicle) against tight global supply. Rhodium, now the most valuable PGM in our metals' basket has reached US$11,000/ounce1, a 120% increase on last year. Gold is also up 26% year on year trading above US$1,800/ounce1.

The Covid pandemic has had the effect of reducing both demand and supply in the platinum market, however early forecasts of negative impacts have been reconsidered. Revised 2020 forecasts now suggest an annual deficit of ~336 koz as a result of an expected 15% decline in production (95% of this fall from reduced South African output) and a 12% fall in recycling supply.2 Chinese automotive demand (the largest global consumer of PGM) also recovered earlier than was predicted again driven by higher loadings per one vehicle and is expected to grow 27% year on year.2

1: Kitco.com

2: WPIC Quarterly: https://platinuminvestment.com/files/455578/WPIC_Platinum_Quarterly_Q2_2020.pdf

 

ENVIRONMENTAL AND HSE

Eurasia is committed to the highest Corporate Social Responsibility and environmental management standards at its mines. No injuries occurred for the period being reported and in general our surface mining methods do not create as significant a risk of injury as underground mining. A host of measures have been introduced to ensure the safety of our workforce. Areas mined are remediated on a schedule detailed within our mining, forestry and environmental permits. We are committed to ensuring the land disturbed by mining activities is returned in a safe and stable landform that does not cause environmental harm and is able to sustain post-mining land use.

Shareholders are encouraged to read our new corporate presentation on our HSE standards published here:

https://www.eurasiamining.co.uk/investors/presentations

 

OPERATIONS UPDATE

West Kytlim

On taking over production from the contractor the Company expedited the approval of the mining development plan and mining permit which was successfully approved on 30 June 2020. Although the Company had no legal right to produce prior to 30 June, the preparation works had commenced on the production sites well ahead of receiving the permit to make sure the Company meets its targets. The Company is now producing 4 PGM* (with rhodium now a significant contributor to the Company's metal revenue) and gold, according to the production plan and receives revenue from the refinery on schedule.

The Definitive Feasibility Study (DFS) commissioned to GIP (designed to upgrade all resources identified on the West Kytlim mining license to mineable categories) has now been submitted for approval to Rosnedra (Russian state agency for subsoil use) in Moscow. Assigning all resources to mineable categories removes the bottleneck in the permitting process, which had restricted building out the mine to full capacity and is designed to improve the project's development and value. On approval West Kytlim will contain the largest soft rock PGM resource globally. The DFS will allow concurrent mining of several areas, which is expected to increase production while also eliminating single asset risk. The Company has sufficient funds to launch mining at several pits at once. More updates will be provided regarding the DFS in due course.

· Platinum, Palladium, Rhodium, and Iridium

 

MONCHETUNDRA

Monchetundra is a palladium dominant project near the town of Monchegorsk and PGM processing facilities on the Kola Peninsula. The production license was awarded in November 2018 and the financed Engineering Procurement Construction and Financing contract is in place with Chinese group Sinosteel.

Since the final approval of the Flanks licence (see RNS of 25 August 2020) the Company has been putting together the database of information from previous drilling campaigns in the Flanks area, that is considerable. 48,405m drilling (announced via RNS of 18 August 2020) is related only to one part of the Flanks License (NKT) and comes on the top of 33,100m drilled by Eurasia's Joint Venture with Anglo American Platinum. The Russian feasibility study on the NKT palladium dominant mine (within the boundaries of the Flanks License) gives 15% IRR at the palladium price of $659 per 1 oz, while the current palladium price stays above $2,000 per 1 oz due to long term structural deficit in the palladium market. For more details on the palladium market structural deficit please refer to the Company's annual report released on 1 July 2020 as well as Eurasia's new corporate presentation published here:

https://www.eurasiamining.co.uk/investors/presentations

Finally, the Company welcomes the incorporation of the Monchegorsk Development Agency, as announced by Norilsk Nickel on 16 September 2020, established by Monchegorsk's municipal administration and Norilsk Nickel to focus on Business and Investment in the Monchegorsk area, where the Monchetundra project is located.

James Nieuwenhuys, Chief Executive Officer.

 

 

 

Condensed consolidated statement of comprehensive income

 

 

 

for the six months ended 30 June 2020

 

 

 

 

 

Note

6 months to

12 months to

6 months to

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

(unaudited)

(audited)

(unaudited)

 

 

 £

 £

 £

 

 

 

 

 

Revenue

4

 48,012

 1,128,970

 13,316

Cost of sales

 

 (298,240)

 (1,082,209)

 (16,309)

Gross (loss)/profit

 

 (250,228)

 46,761

 (2,993)

 

 

 

 

 

Administrative costs

 

 (585,537)

 (1,401,383)

 (572,236)

Investment income

 

 429

 1,416

 1,211

Finance costs

 

 (30,575)

 -

 -

Other gains

5

 -

 556,938

 643,872

Other losses

5

 (429,171)

 -

 -

 

 

 

 

 

(Loss)/profit before tax

 

 (1,295,082)

 (796,268)

 69,854

 

 

 

 

 

Income tax expense

 

 -

 (50,890)

 (45,373)

 

 

 

 

 

(Loss)/profit for the period

 

 (1,295,082)

 (847,158)

 24,481

 

 

 

 

 

Other comprehensive (loss)/income:

 

 

 

 

Items that will not be reclassified subsequently toprofit and loss:

 

 

 

 

NCI share of foreign exchange differences on translation of foreign operations

 

 56,344

 (10,108)

 (17,633)

Items that will be reclassified subsequently toprofit and loss:

 

 

 

 

Parents share of foreign exchange differences on translationof foreign operations

 

 139,340

 (242,847)

 (185,002)

 

 

 

 

 

Other comprehensive income/(loss) for the period, net of tax

 195,684

 (252,955)

 (202,635)

 

 

 

 

 

Total comprehensive loss for the period

 

 (1,099,398)

 (1,100,113)

 (178,154)

 

 

 

 

 

(Loss)/profit for the period attributable to:

 

 

 

 

Equity holders of the parent

 

 (1,034,870)

 (948,745)

 (105,775)

Non-controlling interest

 

 (260,212)

 101,587

 130,256

 

 

 (1,295,082)

 (847,158)

 24,481

 

 

 

 

 

Total comprehensive loss for the period attributable to:

 

 

 

 

Equity holders of the parent

 

 (895,530)

 (1,191,592)

 (290,777)

Non-controlling interest

 

 (203,868)

 91,479

 112,623

 

 

 (1,099,398)

 (1,100,113)

 (178,154)

 

 

 

 

 

Basic and diluted loss (pence per share)

 

 (0.04)

 (0.04)

 (0.004)

 

 

Condensed consolidated statement of financial position

 

 

As at 30 June 2020

 

 

 

 

 

Note

At 30 June

At 31 December

At 30 June

 

 

2020

2019

2019

 

 

(unaudited)

(audited)

(unaudited)

 

 

£

£

£

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

6

 4,521,464

 3,929,037

 3,984,544

Assets in the course of construction

 

 33,547

 35,964

 36,805

Intangible assets

7

 823,241

 854,995

 885,518

 

 

 

 

 

Total non-current assets

 

 5,378,252

 4,819,996

 4,906,867

 

 

 

 

 

Current assets

 

 

 

 

Inventories

 

 85,012

 1,916

 43,053

Trade and other receivables

 

 445,858

 174,669

 54,708

Current tax assets

 

 5,820

 6,590

 

Cash and bank balances

 

 50,896

 920,013

 317,796

 

 

 

 

 

Total current assets

 

 587,586

 1,103,188

 415,557

 

 

 

 

 

Total assets

 

 5,965,838

 5,923,184

 5,322,424

 

 

 

 

 

EQUITY

 

 

 

 

Capital and reserves

 

 

 

 

Issued capital

8

 31,031,688

 30,714,909

 29,397,189

Reserves

9

 3,756,507

 3,632,745

 3,803,544

Accumulated losses

 

 (28,616,131)

 (27,581,261)

 (26,738,291)

 

 

 

 

 

Equity attributable to equity holders of the parent

 

 6,172,064

 6,766,393

 6,462,442

Non-controlling interest

 

 (1,531,428)

 (1,327,560)

 (1,306,416)

 

 

 

 

 

Total equity

 

 4,640,636

 5,438,833

 5,156,026

 

 

 

 

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

10,11

 594,086

 -

 -

Provisions

 

 59,217

 62,218

 -

 

 

 

 

 

Total non-current liabilities

 

 653,303

 62,218

 -

 

 

 

 

 

Current liabilities

 

 

 

 

Borrowings

10,11

 149,586

 47,225

 48,330

Trade and other payables

 

 508,032

 359,023

 105,385

Current tax liabilities

 

 -

 -

 12,683

Provisions

 

 14,281

 15,885

 -

 

 

 

 

 

Total current liabilities

 

 671,899

 422,133

 166,398

 

 

 

 

 

Total liabilities

 

 1,325,202

 484,351

 166,398

 

 

 

 

 

Total equity and liabilities

 

 5,965,838

 5,923,184

 5,322,424

 

 

 

 

 

 

Condensed statement of changes in equity

 

 

 

 

 

 

 

 

 

For the six months ended 30 June 2019

 

 

 

 

 

 

 

 

 

 

 

Attributable to owners of the parent

 

 

 

 

Note

Sharecapital

Share premium

Deferred shares

Other reserves

Foreign currency translation reserve

Accumulated losses

Total attributable to owners of parent

Non-controlling interest

Total equity

 

 

£

£

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2019

 

 2,371,569

 19,406,269

 7,025,483

 4,023,610

 (82,495)

 (26,632,516)

 6,111,920

 (1,419,039)

 4,692,881

 

 

 

 

 

 

 

 

 

 

 

Issue of ordinary share capital for cash

 

 116,183

 510,185

 -

 -

 -

 -

 626,368

 -

 626,368

Share issue cost

 

 -

 (32,500)

 -

 -

 -

 -

 (32,500)

 -

 (32,500)

Recognition of options under employee share option plan

 

 

 

 

 47,431

 

 

 

 

 

Transaction with owners

 

 116,183

 477,685

 -

 47,431

 -

 -

 593,868

 -

 593,868

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 -

 -

 -

 -

 -

 (105,775)

 (105,775)

 130,256

 24,481

 

 

 

 

 

 

 

 

 

 

 

Exchange differences on translationof foreign operations

 

 -

 -

 -

 -

 (185,002)

 -

 (185,002)

 (17,633)

 (202,635)

Total comprehensive income

 

 -

 -

 -

 -

 (185,002)

 (105,775)

 (290,777)

 112,623

 (178,154)

Balance at 30 June 2019

 

 2,487,752

 19,883,954

 7,025,483

 4,071,041

 (267,497)

 (26,738,291)

 6,462,442

 (1,306,416)

 5,156,026

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed statement of changes in equity

 

 

 

 

 

 

 

 

 

For the six months ended 30 June 2020

 

 

 

 

 

 

 

 

 

 

 

Attributable to owners of the parent

 

 

 

 

Note

Sharecapital

Share premium

Deferred shares

Other reserves

Foreign currency translation reserve

Accumulated losses

Total attributable to owners of parent

Non-controlling interest

Total equity

 

 

£

£

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2020

 

 2,693,757

 20,995,669

 7,025,483

 3,958,087

 (325,342)

 (27,581,261)

 6,766,393

 (1,327,560)

 5,438,833

Issue of ordinary shares on exercise of

warrants

 22,018

 203,657

 -

 (674)

 -

 -

 225,001

 -

 225,001

Issue of shares under employee share option

plan

 9,000

 82,104

 -

 (14,904)

 -

 -

 76,200

 -

 76,200

Transaction with owners

 

 31,018

 285,761

 -

 (15,578)

 -

 -

 301,201

 -

 301,201

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 -

 -

 -

 -

 -

 (1,034,870)

 (1,034,870)

 (260,212)

 (1,295,082)

 

 

 

 

 

 

 

 

 

 

 

Exchange differences on translationof foreign operations

 

 -

 -

 -

 -

 139,340

 -

 139,340

 56,344

 195,684

Total comprehensive income

 

 -

 -

 -

 -

 139,340

 (1,034,870)

 (895,530)

 (203,868)

 (1,099,398)

Balance at 30 June 2020

 

 2,724,775

 21,281,430

 7,025,483

 3,942,509

 (186,002)

 (28,616,131)

 6,172,064

 (1,531,428)

 4,640,636

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated statement of cash flows

 

 

 

 

for the six months ended 30 June 2020

 

 

 

 

 

 

6 months to

12 months to

6 months to

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

(unaudited)

(audited)

(unaudited)

 

 

£

£

£

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

(Loss)/profit for the period

 

 (1,295,082)

 (847,158)

 24,481

Adjustments for:

 

 

 

 

Depreciation and amortisation of non-current assets

 

 54,045

 181,395

 48,326

Finance costs recognised in profit or loss

 

 30,575

 -

 -

Investment revenue recognised in profit or loss

 

 (429)

 (1,416)

 (1,211)

Loss on impairment of financial assets

 

 

 

 

Rehabilitation cost recognised in profit or loss

 

 649

 77,677

 -

Income tax expense recognised in profit or loss

 

 -

 50,890

 45,373

Net foreign exchange loss/(profit)

 

 429,171

 (556,938)

 (643,872)

Expense recognised in respect of options under employee share option plan

 

 -

 47,431

 47,431

 

 

 (781,071)

 (1,048,119)

 (479,472)

Movements in working capital

 

 

 

 

Increase in inventories

 

 (83,225)

 (296)

 (41,395)

Increase in trade and other receivables

 

 (278,022)

 (139,395)

 (19,031)

Increase/(decrease) in trade and other payables

 

 149,992

 82,546

 (175,771)

Cash used in operations

 

 (992,326)

 (1,105,264)

 (715,669)

 

 

 

 

 

Income taxes paid

 

 -

 (41,260)

 (16,130)

Net cash used in operating activities

 

 (992,326)

 (1,146,524)

 (731,799)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Interest received

 

 429

 1,416

 1,211

Payments for property, plant and equipment

 

 (158,630)

 (191,953)

 (11,775)

Payments for other intangible assets

 

 -

 -

 (415)

Payments for intangible assets

 

 (1,869)

 -

 -

Net cash used in investing activities

 

 (160,070)

 (190,537)

 (10,979)

Cash flows from financing activities

 

 

 

 

Proceeds from issues of equity shares

 

 301,201

 1,798,633

 593,868

Repayment of borrowings

 

 (27,059)

 -

 -

Net cash generated by financing activities

 

 274,142

 1,798,633

 593,868

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

 (878,254)

 461,572

 (148,910)

Effects of exchange rate changes on the balance ofcash held in foreign currencies

 

 9,137

 5,765

 14,030

 

 

 

 

 

Cash and cash equivalents at the beginning of period

 

 920,013

 452,676

 452,676

 

 

 

 

 

Cash and cash equivalents at the end of the period

 

 50,896

 920,013

 317,796

 

 

 

 

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2020

 

1. General information

Eurasia Mining plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office at International House, 42 Cromwell Road, London SW7 4EF, United Kingdom and principal place of business at Clubhouse Holborn, 20 St Andrew St, Holborn, London, EC4A 3AG. The Company's shares are listed on AIM, a 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 2017, 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 unqualified. 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 2020 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 2019.

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 2019.

4. Revenue

 

 

6 months to

12 months to

6 months to

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

 

 

 

 

 

Sale of platinum and other metals

 

 48,012

 1,128,970

 13,316

 

 

 

 

 

 

 

 48,012

 1,128,970

 13,316

 

Beneficiation of ore commenced on approval of the mine development plan on 30 June 2020. 

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2020 (continued)

 

5. Other gains and losses

 

 

6 months to

12 months to

6 months to

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Gains

 

 

 

 

Net foreign exchange gain

 

 -

556,938

 643,872

 

 

 -

 556,938

 643,872

Losses

 

 

 

 

Net foreign exchange loss

 

 (429,171)

 -

 -

 

 

 (429,171)

 -

 -

 

 

 

 

 

 

 

 (429,171)

 556,938

 643,872

 

6. Property, plant and equipment

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Net book value at the beginning of period

 

 3,929,037

 3,660,614

 3,660,614

Additions

 

 854,922

191,953

 11,775

Depreciation

 

 (54,045)

 (181,395)

 (48,326)

Exchange differences

 

 (208,450)

 257,865

 360,481

 

 

 

 

 

Net book value at the end of period

 

4,521,464

3,929,037

3,984,544

 

7. Intangible assets

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Net book value at the beginning of period

 

 854,995

 802,661

 802,661

Additions

 

 1,869

 -

 415

Exchange differences

 

 (33,623)

 52,334

 82,442

 

 

 

 

 

Net book value at the end of period

 

 823,241

 854,995

 885,518

 

Intangible assets represent capitalised costs associated with Group's exploration, evaluation and development of mineral resources.

 

 

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2020 (continued)

 

8. Share capital

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

 

 

 

 Issued ordinary shares with a nominal value of 0.1p:

 

 

 

 

 

 

 

 

 

 Number

 

 2,724,774,624

2,693,756,753

 2,030,585,874

 Nominal value (£)

 

 2,724,775

2,693,757

 2,030,586

 

 

 

 

 

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 2020

 

 2,693,756,753

 2,693,757

 20,995,669

Exercise of warrants and options

 

 31,017,871

 31,018

 285,761

 

 

 

 

 

 Balance at 30 June 2020

 

 2,724,774,624

 2,724,775

 21,281,430

 

 

 

 

 

 Deferred shares

 

 Number of deferred shares

 Deferred sharecapital

 

 

 

 

£

 

 Balance at 1 January and 30 June 2019

 

 143,377,203

 7,025,483

 

 

 

 

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2020 (continued)

 

9. Reserves

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Capital redemption reserve

 

 3,539,906

 3,539,906

 3,539,906

Foreign currency translation reserve

 

 (186,002)

 (325,342)

 (267,497)

Equity-based payment reserve

 

 402,603

 418,181

 531,135

 

 

 

 

 

 

 

 3,756,507

 3,632,745

 3,803,544

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 equity-based payments reserve represents a reserve arisen on (i) the grant of share options to employees under the employee share option plan and (ii) on issue of warrants under terms of professional service agreements.

 

10. Borrowings

 

 

 

 

 

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Non-current

 

 

 

 

Finance lease liabilities

 

 594,086

 -

 -

 

 

 594,086

 -

 -

Current

 

 

 

 

Unsecured loan

 

 44,051

 47,225

 48,330

Finance lease liabilities

 

 105,535

 -

 -

 

 

 149,586

 47,225

 48,330

 

 

 

 

 

 

 

 743,672

 47,225

 48,330

In February 2017 the Group entered into unsecured loan facility to borrow up to 57 million Russian Roubles (RR) at 14% per annum, from Region Metal, the then subcontractor and West Kytlim mine operator. The Group had drawn RR 4.18 million and repaid RR0.3 million in 2017. As the subcontractor's arrangements had been discontinued the Group has no intention to utilise any more funds from this facility.The loan maturity date is 31 December 2020.Within January to May 2020 the Group entered into eight finance lease agreements for the total of RR 61.3 million to acquire earth moving equipment for West Kytlim mine operations.Financial lease is secured by the assets leased; net book value of the leased assets was £763,079 (2019: nil). The finance lease liabilities are subject to various interest rates ranging from 21.9% to 23.5% and repayment terms not exceeding 5 years.No borrowing costs were capitalised in 2020 and 2019.

 

 

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2020 (continued)

 

11. Obligations under finance leases

The Group leases certain of its mining equipment under finance leases. The average lease term is five years (2019: no leases). The Group has option to purchase the equipment for a nominal amount at the maturity of the finance lease. The Group's obligation under finance leases are secured by the lessor's title to the leased assets.

Interest rates underlying all obligations under finance leases are fixed at respective contract dates ranging from 21.9% to 23.5% (2019: no leases) per annum.

 

 

 

Minimum lease payments

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Less than one year

 

 233,311

 -

 -

Between one and five years

 

 819,682

 -

 -

More than five years

 

-

-

-

 

 

 1,052,993

 -

 -

Less future finance charges

 

 (353,372)

 -

 -

Present value of minimum lease payments

 

 699,621

 -

 -

 

 

 

 

 

Present value of minimum lease payments

 

30 June

31 December

30 June

 

 

2020

2019

2019

 

 

£

£

£

Less than one year

 

 105,535

 -

 -

Between one and five years

 

 594,086

 -

 -

More than five years

 

-

-

-

Present value of minimum lease payments

 

 699,621

 -

 -

 

 

 

 

 

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR KKKBPPBKDBCN
Date   Source Headline
15th Sep 20217:00 amRNSMonchetundra Detailed Mining Plan
7th Sep 20219:05 amRNSSecond Price Monitoring Extn
7th Sep 20219:00 amRNSPrice Monitoring Extension
3rd Sep 202111:05 amRNSSecond Price Monitoring Extn
3rd Sep 202111:00 amRNSPrice Monitoring Extension

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.