Last checked at 19 Sep 2023 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN REGULATION NO. 596/2014 (AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) AND IS IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 7 OF THAT REGULATION.
19 September 2023
Eurasia Mining plc
("Eurasia" or the "Company")
Interim Results for the six months ended 30 June 2023
Eurasia, the palladium, platinum, rhodium, iridium and gold mining company, today reports its unaudited interim results and operational summary for the six months ended 30 June 2023.
A copy of this announcement is also available on Eurasia's website at:
https://www.eurasiamining.co.uk/investors/news-announcements
For further information, please contact:
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Broker)
Jeff Keating / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Chairman's Statement
Dear Shareholder
The first six months of 2023 saw the Company focused principally on our plan to sell our Russian assets.
Proposed sale of Russian assets
We have concentrated on this effort since 2020 and can report that we continue to make progress. Our focus on BRICS non-sanctioned counterparties continues, with several parties currently at various stages of their due diligence. Although, as stated previously, there is no guarantee of a positive outcome to this activity, the Board remains focused on achieving a successful conclusion.
West Kytlim
Site preparation work was completed during the first quarter of 2023, but due to the sale process being Eurasia's main priority, no metal concentrate has been produced at West Kytlim since the end of 2022.
Our key focus at West Kytlim has been on the sale of 2022 concentrate, which is currently held in inventory, with no restrictions related to its sale as a precious metals bearing high grade concentrate. The Board expects the concentrates to be sold at carrying value and we are currently evaluating offers from three parties who responded to the tender process.
We have started to receive value-added tax refunds (VAT) against capital expenditure in previous years, which also contributes to our cash position (see below), in addition to the proposed concentrate sale.
Monchetundra
The Definitive Feasibility Study ('DFS') at Monchetundra was approved by the authorities in late June 2023. This allows Eurasia to present this development and the resulting improvement in value to potential purchasers. The Company does not believe it is appropriate to commence construction immediately, as it is expected that any counterparties to the proposed asset sale may have their own plans for the development of Monchetundra and can either proceed with the EPCF contract signed with Sinosteel, or with a different contractor.
Financial position
The Company's current cash assets at 30 June 2023 including cash held in bank accounts (£0.4 million) and US treasury notes (£1.54 million) totalled £1.94 million. The value of unsold concentrate within Inventories at 30 June 2023 was approximately £3.5 million. In addition, the Company expects to receive VAT refunds of circa £1.5 million.
The Company's cash reserves are held in USD and GBP accounts outside of Russia and therefore not directly or indirectly exposed to Rouble foreign exchange gains or losses against other major hard currencies.
Sanctions
The Board continues to maintain a regular dialogue with the Company's legal advisers regarding the potential impact of any US, UK or EU sanctions on the Company, its operations and assets. The Company remains satisfied that its current operations are not prohibited under US, UK or EU sanctions rules. Furthermore, the Group does not engage and has not engaged with any sanctioned persons, entities or agencies. The Group continues to closely monitor all regulatory requirements and changes to the laws, rules and regulations, taking steps whenever necessary to ensure compliance with new legislation.
Management changes
Following the retirement of James Nieuwenhuys as CEO, the Company has established an Operations Committee, led by Christian Schaffalitzky, which oversees the day-to-day project development activities of the Company, alongside the proposed sale process on which the full Board is engaged. Eurasia does not intend to make any further management appointments at this stage.
Litigation
The previously announced litigation case between the Company and Queeld Investments Limited and Mispare Limited, and Eurasia remains ongoing. Further developments regarding this case will be announced as appropriate. The previously announced case filed by Logik Developments Ltd was settled in July 2023.
Outlook
We recognise that, in relation to the potential asset sale, it may be a source of frustration for shareholders that we cannot report on specific counterparties, the nature of our discussions, and the ongoing processes in more detail. This reflects the regulatory regime and the many confidentiality agreements that govern this activity. However, although there can be no guarantees, all the Eurasia Board members are engaged in contributing towards a successful outcome to this process, and we look forward to providing our shareholders with further updates as appropriate.
We again thank our shareholders for their continued support.
Christian Schaffalitzky
Chairman
Eurasia Mining PLC
Condensed consolidated statement of comprehensive income |
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for the six months ended 30 June 2023 |
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Note | 6 months to | 12 months to | 6 months to | |
| 30 June | 31 December | 30 June | |
| 2023 | 2022 | 2022 | |
| (unaudited) | (audited) | (unaudited) | |
£ | £ | £ | ||
Sales | 4 | - | 119,525 | 101,836 |
Cost of sales | - | (30,173) | (36,197) | |
Gross profit |
| - | 89,352 | 65,639 |
| ||||
Administrative costs | (1,298,464) | (4,618,351) | (1,257,924) | |
Investment income | 53,184 | 61,325 | 10,070 | |
Finance costs | (44,789) | (107,697) | (49,717) | |
Other gains | 5 | 272,549 | 187,592 | 6,108,902 |
Other losses | 5 | (6,361,898) | (2,842,309) | (1,024,892) |
(Loss)/profit before tax | (7,379,418) | (7,230,088) | 3,852,078 | |
Income tax expense | - | - | - | |
(Loss)/profit for the period |
| (7,379,418) | (7,230,088) | 3,852,078 |
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Other comprehensive (loss)/income: |
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Items that will not be reclassified subsequently toprofit and loss: |
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NCI share of foreign exchange differences on translation of foreign operations | 682,020 | (61,656) | 405,694 | |
Items that will be reclassified subsequently toprofit and loss: |
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Parents share of foreign exchange differences on translationof foreign operations | 1,738,236 | (341,762) | 945,695 | |
Other comprehensive income/(loss) for the period, net of tax | 2,420,256 | (403,418) | 1,351,389 | |
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Total comprehensive (loss)/income for the period | (4,959,162) | (7,633,506) | 5,203,467 | |
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(Loss)/profit for the period attributable to: |
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Equity holders of the parent | (5,638,150) | (5,840,245) | 2,556,416 | |
Non-controlling interest | (1,741,268) | (1,389,843) | 1,295,662 | |
(7,379,418) | (7,230,088) | 3,852,078 | ||
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Total comprehensive (loss)/income for the period attributable to: |
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Equity holders of the parent | (3,899,914) | (6,182,007) | 3,502,111 | |
Non-controlling interest | (1,059,248) | (1,451,499) | 1,701,356 | |
(4,959,162) | (7,633,506) | 5,203,467 | ||
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Basic and diluted (loss)/profit (pence per share) | (0.20) | (0.21) | 0.09 |
Condensed consolidated statement of financial position |
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As at 30 June 2023 |
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Note | At 30 June | At 31 December | At 30 June | |
| 2023 | 2022 | 2022 | |
| (unaudited) | (audited) | (unaudited) | |
£ | £ | £ | ||
ASSETS |
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Non-current assets |
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Property, plant and equipment | 6 | 8,470,553 | 9,600,231 | 12,634,691 |
Assets in the course of construction | 538,537 | 696,026 | 1,329,132 | |
Intangible assets | 7 | 2,748,361 | 2,859,368 | 3,146,073 |
Investment in financial assets | 1,592,143 | 3,807,925 | ||
Investments in joint ventures | - | - | 584,591 | |
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|
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Total non-current assets | 13,349,594 | 16,963,550 | 17,694,487 | |
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Current assets |
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Inventories | 3,687,482 | 4,182,382 | 2,135,082 | |
Trade and other receivables | 8 | 2,684,475 | 3,171,669 | 4,124,692 |
Other financial assets | 89,485 | - | - | |
Current tax assets | 5,967 | 6,050 | 10,371 | |
Cash and bank balances | 405,875 | 1,009,908 | 13,559,308 | |
Total current assets | 6,873,284 | 8,370,009 | 19,829,453 | |
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Total assets | 20,222,878 | 25,333,559 | 37,523,940 | |
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EQUITY |
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Capital and reserves |
| |||
Issued capital | 9 | 61,208,111 | 61,187,111 | 61,187,111 |
Reserves | 10 | 5,330,971 | 3,580,929 | 4,868,386 |
Accumulated losses | (44,604,733) | (38,954,777) | (30,558,116) | |
Equity attributable to equity holders of the parent |
| 21,934,349 | 25,813,263 | 35,497,381 |
Non-controlling interest | (4,460,796) | (3,401,548) | (248,693) | |
Total equity | 17,473,553 | 22,411,715 | 35,248,688 | |
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LIABILITIES |
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Non-current liabilities |
| |||
Lease liabilities | 11 | 147,592 | 181,198 | 431,973 |
Provisions | 13 | 173,645 | 254,218 | 470,029 |
Total non-current liabilities | 321,237 | 435,416 | 902,002 | |
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Current liabilities |
| |||
Borrowings | - | - | 50,833 | |
Lease liabilities | 11 | 98,256 | 167,071 | 211,397 |
Trade and other payables | 12 | 2,265,361 | 2,230,879 | 1,111,020 |
Provisions | 13 | 64,471 | 88,478 | - |
Total current liabilities | 2,428,088 | 2,486,428 | 1,373,250 | |
|
|
| ||
Total liabilities | 2,749,325 | 2,921,844 | 2,275,252 | |
|
|
| ||
Total equity and liabilities | 20,222,878 | 25,333,559 | 37,523,940 |
Condensed statement of changes in equity | ||||||||||
For the six months ended 30 June 2022 | ||||||||||
Attributable to owners of the parent |
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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 2022 |
| 2,853,560 | 51,308,068 | 7,025,483 | 3,924,026 | (1,335) | (33,114,532) | 31,995,270 | (1,950,049) | 30,045,221 |
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Transaction with owners | - | - | - | - | - | - | - | - | - | |
| ||||||||||
Loss for the period | - | - | - | - | - | 2,556,416 | 2,556,416 | 1,295,662 | 3,852,078 | |
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Other comprehensive loss |
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Exchange differences on translationof foreign operations | - | - | - | - | 945,695 | - | 945,695 | 405,694 | 1,351,389 | |
Total comprehensive income |
| - | - | - | - | 945,695 | 2,556,416 | 3,502,111 | 1,701,356 | 5,203,467 |
Balance at 30 June 2022 |
| 2,853,560 | 51,308,068 | 7,025,483 | 3,924,026 | 944,360 | (30,558,116) | 35,497,381 | (248,693) | 35,248,688 |
Condensed statement of changes in equity |
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For the six months ended 30 June 2023 |
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Attributable to owners of the parent |
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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 2023 |
| 2,853,560 | 51,308,068 | 7,025,483 | 3,924,026 | (343,097) | (38,954,777) | 25,813,263 | (3,401,548) | 22,411,715 |
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Issue of shares under employee share option plan | 5,000 | 16,000 | 11,806 | (11,806) | - | - | 21,000 | |||
Transaction with owners | 5,000 | 16,000 | - | 11,806 | - | (11,806) | - | - | 21,000 | |
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Loss for the period | - | - | - | - | - | (5,638,150) | (5,638,150) | (1,741,268) | (7,379,418) | |
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Other comprehensive loss |
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Exchange differences on translationof foreign operations | - | - | - | - | 1,738,236 | - | 1,738,236 | 682,020 | 2,420,256 | |
Total comprehensive income |
| - | - | - | - | 1,738,236 | (5,638,150) | (3,899,914) | (1,059,248) | (4,959,162) |
Balance at 30 June 2023 |
| 2,858,560 | 51,324,068 | 7,025,483 | 3,935,832 | 1,395,139 | (44,604,733) | 21,913,349 | (4,460,796) | 17,473,553 |
Condensed consolidated statement of cash flows |
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for the six months ended 30 June 2021 |
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6 months to | 12 months to | 6 months to | ||
| 30 June | 31 December | 30 June | |
| 2023 | 2022 | 2022 | |
| (unaudited) | (audited) | (unaudited) | |
£ | £ | £ | ||
Cash flows from operating activities |
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(Loss)/profit for the period | (7,379,418) | (7,230,088) | 3,852,078 | |
Adjustments for: | ||||
Depreciation and amortisation of non-current assets | 497,628 | 1,006,210 | 1,194,452 | |
- Asset value write off to cost of sales | 2,365,988 | |||
Gain/(loss) on sale or disposal of property, plant and equipment | - | (4,952) | (4,219) | |
Finance costs recognised in profit or loss | 47,548 | 107,697 | 49,717 | |
Investment revenue recognised in profit or loss | (53,184) | (61,325) | (10,070) | |
(Gain)/loss on disposal of investments | 18,362 | 814,158 | - | |
(Loss reversal)/loss recognised on valuation of inventory | (272,549) | 2,028,151 | 1,024,892 | |
Rehabilitation cost recognised in profit or loss | (57,548) | 99,725 | 90,096 | |
Net foreign exchange loss/(profit) | 6,343,536 | (182,640) | (6,104,683) | |
(855,625) | (1,057,076) | 92,263 | ||
Movements in working capital |
| |||
Increase in inventories | (75,390) | (6,166,681) | (3,098,450) | |
Increase in trade and other receivables | (71,805) | (1,300,887) | (1,614,762) | |
Increase in trade and other payables | 392,291 | 1,716,777 | 508,844 | |
Cash used in operations | (610,529) | (6,807,867) | (4,112,105) | |
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Net cash used in operating activities | (610,529) | (6,807,867) | (4,112,105) | |
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Cash flows from investing activities |
| |||
Payments for investment securities | - | (7,030,548) | - | |
Proceeds from sale of investment securities | 2,284,775 | 2,835,299 | - | |
Interest received | - | 11,943 | 10,070 | |
loan provided to non-related party | (143,071) | - | - | |
Investment to acquire interest in joint venture | - | (354,769) | - | |
Payments for property, plant and equipment | (1,210,627) | (7,190,406) | (6,221,805) | |
Payments for other intangible assets | (475,540) | (1,239,085) | (910,258) | |
Proceeds from disposal of property, plant and equipment | - | 4,952 | 4,219 | |
Net cash generated by/(used in) investing activities | 455,537 | (12,962,614) | (7,117,774) | |
Cash flows from financing activities |
| |||
Repayment of borrowings | - | (36,232) | - | |
Proceeds from issues of equity shares | 21,000 | - | - | |
Repayment of lease liability | (41,167) | (141,528) | (24,757) | |
Interest paid | (33,681) | (90,446) | (41,449) | |
Net cash used in financing activities | (53,848) | (268,206) | (66,206) | |
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Net decrease in cash and cash equivalents | (208,840) | (20,038,687) | (11,296,085) | |
Effects of exchange rate changes on the balance ofcash held in foreign currencies | (395,193) | (960,912) | 2,845,886 | |
Cash and cash equivalents at the beginning of period | 1,009,908 | 22,009,507 | 22,009,507 | |
Cash and cash equivalents at the end of the period |
| 405,875 | 1,009,908 | 13,559,308 |
Selected notes to the condensed consolidated financial statements for the six months ended 30 June 2023 |
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1. General information |
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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 Bank, 1 Angel Court, EC2R 7HJ. 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 2022, 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 |
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The Group prepares consolidated financial statements in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006. These condensed consolidated interim financial statements for the period ended 30 June 2023 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 2022. | ||||
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 |
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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 2022. | ||||
4. Revenue |
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6 months to | 12 months to | 6 months to | ||
| 30 June | 31 December | 30 June | |
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Sale of platinum and other metals | - | 61,075 | - | |
Other revenue | - | 58,450 | 101,836 | |
| - | 119,525 | 101,836 |
5. Other gains and losses |
| |||
6 months to | 12 months to | 6 months to | ||
| 30 June | 31 December | 30 June | |
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Gains |
| |||
Gain on disposal of property, plant and equipment | - | 4,952 | 4,219 | |
Reversal of loss on revaluation of stock to net realisable value | 272,549 | - | - | |
Net foreign exchange gain | - | 182,640 | 6,104,683 | |
|
| 272,549 | 187,592 | 6,108,902 |
Losses |
| |||
Impairment of investments | (18,362) | (814,158) | - | |
Loss on revaluation of stock to net realisable value | - | (2,028,151) | (1,024,892) | |
Net foreign exchange loss | (6,343,536) | - | - | |
|
| (6,361,898) | (2,842,309) | (1,024,892) |
| (6,089,349) | (2,654,717) | 5,084,010 |
The majority of the foreign exchange gains and losses are a result of the revaluation of monetary assets and liabilities in the subsidiary accounts as a result of movements in the Rouble exchange rates.In 2022 the Group took a decision to postpone the sale of platinum and other metals due to a strong Ruble and low platinum price. Stock available at 30 June 2023 represents platinum concentrate ready for refining, which was valued (i) using methodology set in the refining and sale and purchase agreement made with local refinery in 2021 and (ii) exchange rate and metal prices at 30 June 2023.
6. Property, plant and equipment |
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30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Net book value at the beginning of period | 9,600,231 | 5,061,743 | 5,061,743 | |
Additions | 1,137,353 | 2,443,927 | 5,911,509 | |
Transferred from assets under construction | 90,499 | 4,776,644 | - | |
Written off to inventory | - | (2,365,988) | (2,365,988) | |
Depreciation | (497,628) | (1,006,210) | (1,194,452) | |
Exchange differences | (1,859,902) | 690,115 | 2,855,891 | |
Net book value at the end of period | 8,470,553 | 9,600,231 | 12,634,691 | |
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7. Intangible assets |
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30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Net book value at the beginning of period | 2,859,368 | 1,389,029 | 1,389,029 | |
Additions | 475,540 | 1,239,085 | 910,258 | |
Exchange differences | (586,547) | 231,254 | 846,786 | |
Net book value at the end of period | 2,748,361 | 2,859,368 | 3,146,073 |
Intangible assets represent capitalised costs associated with Group's exploration, evaluation and development of mineral resources.
8. Trade and other receivables |
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30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
| ||||
Trade receivables | - | - | 78,520 | |
Advances made | 677,536 | 822,280 | 1,759,183 | |
Prepayments | 26,929 | 135,447 | 36,681 | |
VAT recoverable | 1,496,281 | 1,942,410 | 2,123,355 | |
Other receivables | 483,729 | 271,532 | 126,953 | |
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|
|
| |
| 2,684,475 | 3,171,669 | 4,124,692 |
The fair value of trade and other receivables is not materially different to the carrying values presented. None of the receivables are provided as security or past due.
9. Share capital |
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30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
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Issued ordinary shares with a nominal value of 0.1p: |
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Number | 2,858,559,995 | 2,853,559,995 | 2,853,559,995 | |
Nominal value (£) | 2,853,560 | 2,853,560 | 2,853,560 | |
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; and- 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.
There had been no change in the issued share capital during the reporting period.
Ordinary shares |
| Number of shares | Sharecapital | Sharepremium |
£ | £ | |||
Balance at 1 January 2023 | 2,853,559,995 | 2,853,560 | 51,308,068 | |
Exercise of warrants and options | 5,000,000 | 5,000 | 16,000 | |
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Balance at 30 June 2023 |
| 2,858,559,995 | 2,858,560 | 51,324,068 |
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Deferred shares |
| Number of deferred shares | Deferred sharecapital | |
£ | ||||
Balance at 1 January and 30 June 2021 |
| 143,377,203 | 7,025,483 |
10. Reserves |
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30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Capital redemption reserve | 3,539,906 | 3,539,906 | 3,539,906 | |
Foreign currency translation reserve | 1,395,139 | (343,097) | 944,360 | |
Equity-based payment reserve | 395,926 | 384,120 | 384,120 | |
5,330,971 | 3,580,929 | 4,868,386 |
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. |
11. Lease liabilities |
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The Group leases certain of its plant and equipment. The average lease term is 4.5 years, expiring in 2025. 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% per annum. | ||||
Minimum lease payments |
| 30 June | 31 December | 30 June |
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Less than one year | 179,418 | 224,700 | 315,252 | |
Between one and five years | 103,334 | 202,820 | 496,817 | |
More than five years | - | - | - | |
282,753 | 427,520 | 812,069 | ||
Less future finance charges | (36,905) | (79,251) | (168,699) | |
Present value of minimum lease payments | 245,848 | 348,269 | 643,370 | |
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Present value of minimum lease payments |
| 30 June | 31 December | 30 June |
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Less than one year | 147,592 | 167,071 | 211,397 | |
Between one and five years | 98,256 | 181,198 | 431,973 | |
More than five years | - | - | - | |
Present value of minimum lease payments | 245,848 | 348,269 | 643,370 |
12. Trade and other payables |
| |||
30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
| ||||
Trade payables | 802,525 | 270,214 | 615,115 | |
Accruals | 1,326,107 | 1,825,269 | 56,826 | |
Social security and other taxes | 45,523 | 46,460 | 167,392 | |
Other payables | 91,206 | 88,936 | 271,687 | |
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|
| |
| 2,265,361 | 2,230,879 | 1,111,020 |
The fair value of trade and other payables is not materially different to the carrying values presented. The above listed payables were all unsecured.
13. Provision |
| |||
30 June | 31 December | 30 June | ||
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
Long term provision: | ||||
Environment rehabilitation | 470,029 | 254,218 | 470,029 | |
Short term provision: | ||||
Environment rehabilitation | - | 88,478 | - | |
470,029 | 342,696 | 470,029 | ||
| ||||
Movement in provision |
| Six month to | 12 month to | Six month to |
| 30 June | 31 December | 30 June | |
| 2023 | 2022 | 2022 | |
| £ | £ | £ | |
At 1 January | 342,696 | 200,762 | 200,762 | |
Recognised in the period | - | 54,612 | 79,541 | |
Utilised in the period | - | - | - | |
Reduction resulting from re-measurement or settlement without cost | (57,548) | 45,446 | 10,555 | |
Unwinding of discount and effect of changes in the discount rate | 13,867 | 17,251 | 8,268 | |
Exchange difference | (60,899) | 24,625 | 170,903 | |
|
|
|
|
|
At the end of the period |
| 238,116 | 342,696 | 470,029 |
Provision is made for the cost of restoration and environmental rehabilitation of the land disturbed by the West Kytlim mining operations, based on the estimated future costs using information available at the reporting date.
The provision is discounted using a risk-free discount rate of from 6.6% to 6.88% (2020: 3.87% to 5.08%) depending on the commitment terms, attributed to the Russian Federal Bonds.
Provision is estimated based on the sub-areas within general West Kytlim mining licence the company has carried down its operations on by the end of the reporting period. Timing is stipulated by the forestry permits issued at the pre-mining stage for each of sub-areas. Actual costs in respect of the long-term provision recognised by 30 June 2023 will be incurred within 2023-2025.
14. Commitments |
| |||
At the time of the award of the Monchetundra mining license a royalty payment was calculated by the Russian Federal Reserves Commission. 20% of this payment was paid in December of 2018 and the remaining 80%, or Rub16.68 mln (approximately £150,000) to be paid by November 2023. | ||||
During 2020 the Group entered into several lease agreements to lease mining plant and equipment. As at 30 June 2023 the average lease term was 2 years and present value of minimum lease payments £245,848 (2022: £643,370). | ||||