Half-year Report

Half-year Report

Altyn Plc

ALTYN PLC

Interim report - six months to 30 June 2018

Altyn Plc (“Altyn” or the “Company”), the gold mining and development company, announces its unaudited results for the six months to 30 June 2018.

Highlights:

Mine development

• During the period the Company concentrated on the development of the ore bodies, no further development has been undertaken on the decline as there are currently sufficient access points to the ore bodies for the current production plans.
• Ore extracted from the underground mine increased in line with projections to a high point of 38,000t a month in June 2018. The average extraction was lower at approximately 25,000t due to planned maintenance work reducing the ore extracted in March and April 2018.
• Developmental work was carried out at the mine at 214 masl, in relation to ore bodies 3-8 and at 185 masl in relation to ore body 11 giving access to 260,000 tons of ore for future production at an average grade of 2.53g/t.
• Exploration work at Karasuyskoye continued in line with the development plans. Three sites within the contract licence area have been identified as having potential for early development. The Company has applied to the appropriate ministry for an addendum to the licence to extract 10,000 tons of test production ore.

Production

• Gold recovery is averaging 83.65%, in line with that achieved during year end 31 December 2017, the expectation is that the recoveries will continue at this level for the foreseeable future, until further equipment is purchased.
• H1 2018 gold production from Sekisovskoye was 8,461oz, compared with H1 2017 of 7,327oz.
• The actual milled ore was 182,000 tons (H1 2017 131,000 tons), in the current period, (as last year), it included lower grade stockpiled ore at 0.5g/t.

Financial

• The turnover has increased to US$10.9m (H1 2017 US$9.2m), an increase of 18%. The gold price achieved averaged US$1,322oz during the period (Year 2017 US$1,293).
• The Company made an operating profit of US$1.6m (H1 2017 loss - US$109,000), with a net profit before taxation of US$603,000 (H1 2017 Loss US$1.2m). In part this was due to operational cost savings at head office and at the mine site, the latter being due to labour cost savings with in the transportation and production departments.
• During the period bonds to the value of US$9.7m were converted into equity shares in the company at a value of £0.03p per share.
• The total cash cost of production was US$883oz (Year 2017 US$899oz).
• EBITDA achieved was positive at US$3.6m (Year 2017 US$2.5m).
• Cash flow from operating activities was positive at US$2.5m, (2017 US$1.6m) the Company has benefitted from the fact that it currently has a low gearing, with lower financial loan commitments than in the past.
• Cash balances at 30 June 2018 were US$201,000 and are sufficient for current operational requirements.

Fund raising

• The expectation was that funding would be in place during H2 2018. However there has been a delay in the ability of Freedom Finance to provide funding to Altyn in the time frames required. The Company is still continuing with its discussions with Freedom Finance, to obtain the funding necessary but is also looking at other providers.
• The Company is currently in active discussions with banks and other providers in Kazakhstan. However the management want to ensure that any future funding is on terms and conditions which are for the long term benefit of shareholders and are trying to achieve the most favourable terms possible. The Company will update shareholders as plans progress.

Aidar Assaubayev, CEO of Altyn Plc commented:

The management are currently in active discussions with banks and other providers in Kazakhstan to raise the necessary funds required to fulfil its project plans. We are positive the necessary funding can be put in place as required for the project development but want to ensure that it is for the long term benefit of shareholders and on the most favourable terms possible with regards to the cost of financing.

The Company is cash generative at its current production levels and has rationalised operations in order to conserve the cash resources going forward.

For further information please contact:

Altyn PLC

For further information please contact:

Altyn Plc

Rajinder Basra, CFO [phone]

VSA Capital (Corporate Broker)

Andrew Monk / Andrew Raca [phone]

Information on the Company

Altyn Plc (LSE:ALTN) is an exploration and development company, which is listed on the standard segment of the London Stock Exchange.

To read more about Altyn Plc please visit our website www.altyn.uk

ALTYN PLC

Chief Executive Review

H1 2018 Review

Mine development

In Q2 2018, the Company has concentrated on developing the productive ore bodies. The decline was developed to horizon 150 Masl in 2017 and in the current period was not developed further due to the fact that sufficient ore bodies are accessible to extract ore.

The actual ore mined ranged from a low of 11,000 tons in March to a higher level of 38,000 tons in June 2018, resulting in an average tonnage over 6 months of 25,000 tons. The lower level of ore mined in March 2018 was due to scheduled maintenance at the mine site. The expected run rate each month is expected to move into the range of 30-35,000 tons each month going forward.

As already stated the significant ramp up in production is dependent on further capital investment. During the current period the Company is continuing to successfully develop the ore bodies with the available equipment and has developed ore bodies 3-8 and 11 for production in the next period.

The production over the past half year was mainly from the group of ore bodies 1,8,10 and in June from ore body 11 and was extracted from levels ranging from 242 Masl to 185 Masl. Due to the level of developmental ore included, the actual ore grade fluctuated from a high of 2.78 to a low of 1.53 resulting in a lower than expected grade from the ore mined of 1.96.

Karasuyskoye

In addition to the underground mine development the Company is continuing to develop its prospective site at Karasuyskoye.

The following has been completed so far Core drilling has been undertaken of 1,500 metres, air drilling of 5,500 linear metres, and the open pit has been excavated amounting to 5,500 cubic metres. Test production will be undertaken once the necessary permits have been obtained.

H1 2018 Operational Overview – Sekisovskoye

Underground mine				H1 2018		H1 2017
Ore extracted		tons		152,639		151,400
Gold grade		g/t		1.96		2.14
Silver grade		g/t		3.34		2.40
Mineral processing				H1 2018		H1 2016
Milling		tons		182,832		131,238
Gold grade		g/t		1.72		2.06
Silver grade		g/t		2.98		2.29
Gold recovery		%		83.65%		81.76%
Silver recovery		%		74.29%		71.37%
Gold produced		ounces		8,461		7,327
Silver produced		ounces		12,875		6,484

The Ore extracted is averaging at 25,000 tons a month, the difference between the ore extracted and the milling at an average of 30,000 tons a month is due to the use of lower grade stockpiled ore. The stockpiled ore has a grade of 0.5%, leading to a processed grade of 1.72 overall (2017 2.06).

The gold recovery is in line with that achieved in year ended 2017 and is currently expected to be maintained at this level going forward. The improvement in recoveries is expected once new capital is employed specifically the gravity concentration plant, the installation is dependent on future capital investment funds being made available.

The underground ore grade continues to be lower than that forecast as it contains a higher quantity of development ore being mined leading to a decrease in the gold grade, again the increase in grade is dependent on the deployment of additional mining equipment.

Moving forward

The Company’s long term plan is to increase production by targeting the ore bodies in a more defined way, pushing the grade up, and at the same time increasing the volume of ore mined. The management have been working hard to in order to raise the necessary funds, however due to circumstances they have not been able to continue with the previous providers. As a result, they are now looking to fund the capital expenditure for the project from new sources of finance, and are in active discussions with banks in Kazakhstan, and will update shareholders as they progress. However the time lines in relation to a significant increase in production are expected to move as a result of the delays in obtaining the appropriate finance.

The Company will continue to improve the mine, developing the decline and ore bodies, with in the restrictions of the current available plant and capital available.

H1 2018 Financial Review

The Company has reported a gross profit of US$2.6m for H1 2018, against US$1.6m for H1 2017, with turnover of US$10.9m (H1 2017 US$9.2m).

Sekisovskoye produced 8,461oz of gold in H1 2018 (H1 2017:7,327oz). Gold sold during the period amounted to 8,235oz (H12017 7,437oz) at an average price of US$1,323/oz (H1 2017: US$1,237/oz). The average price of sales achieved includes revenues generated from silver sales in the period, which are treated as incidental to gold production.

The operating cash cost of production (cost of sales excluding depreciation and provisions) for the period was US$731/oz (Year 2017 US$661/oz). The total cash cost was US$883/oz as compared to US$899/oz in year ended 2017. Cost rationalisations were made in the early part of 2018 both at head office and at the mine site. At the mine site the transport department was outsourced and the maintenance department reduced which resulted in cost savings from the prior period.

As of 30 June 2018, the Company had cash balances of US$201,000. The Company currently has sufficient cash resources to operate at current production levels.

During the period the Company converted US$9.7m of the bond of US$10m owing to African Resources Limited into share capital, increasing their shareholding to 69.8%. In total there is approximately US$4.6m due in relation to the convertible bonds of which approximately US$2.6m is owed to African Resources Limited (including accrued interest), this amount is expected to be converted into share capital in H2 2018.

Aidar Assaubayev

Chief Executive Officer

31 August 2018

ALTYN PLC

Consolidated income statement

				Six months ended 30 June 2018		Six months ended 30 June 2017		Year ended 31 December 2017
				(unaudited)		(unaudited)		(audited)
				US$’000		US$’000		US$’000
Revenue				10,894		9,200		15,867
Cost of sales				(8,240)		(7,631)		(13,554)
Gross profit				2,654		1,569		2,313
Administrative expenses				(1,248)		(1,766)		(5,352)
Impairments				176		88		(1,107)
Operating profit/(loss)				1,582		(109)		(4,146)
Foreign exchange				(383)		213		283
Finance Expense				(596)		(1,290)		(2,215)
Profit/(loss) before taxation				603		(1,186)		(6,078)
Taxation				-		14		(278)
Profit/(loss) attributable to s equity shareholders				603		(1,172)		(6,356)
Profit/(loss) per ordinary share Basic & diluted (US cent)				0.02c		(0.05c)		(0.3c)

ALTYN PLC

Consolidated statement of profit or loss and other comprehensive income

		Six months ended 30 June 2018		Six months ended 30 June 2017		Year ended 31 December 2017
		(unaudited)		(unaudited) (unaudited)		(audited)
		US$’000		US$’000		US$’000
Profit/(loss) for the period/year		603		(1,172)		(1,929)
Currency translation differences arising on translations of F foreign operations items which will or may be reclassified to profit or loss		(2,027)		1,296		98
Currency translation differences arising on translations of foreign operations relating to taxation -		-		-		1,088
Total comprehensive (loss)/profit for the period/year attributable to equity shareholders		(1,424)		124		(743)

ALTYN PLC

Consolidated statement of financial position

				Six months ended 30 June 2018		Six months ended 30 June 2017		Year ended 31 December 2017
		Notes		(unaudited)		(unaudited)		(audited)
				US$’000		US$’000		US$’000
Non-current assets
Intangible asset		3		11,641		11,034		11,881
Property, plant and equipment		4		34,135		36,979		35,163
Other receivables				-		497		1,476
Deferred tax asset				6,750		5,855		6,928
Restricted cash				16		39		14
				52,542		54,404		55,462
Current assets
Inventories				3,096		2,546		1,713
Trade and other receivables				3,964		3,143		2,531
Cash and cash equivalents				201		1,536		704
				7,261		7,225		4,948
Total assets				59,803		61,629		60,410
Current liabilities
Trade and other payables				(8,501)		(6,515)		(7,822)
Other financial liabilities				(407)		(536)		(399
Provisions				(85)		(189)		(112)
Borrowings				(1,557)		(2,451)		(724)
				(10,550)		(9,691)		(10,978)
Net current liabilities				(3,289)		(2,466)		(4,280)
Non-current liabilities
Other financial liabilities & payables				(120)		(189)		(160)
Provisions				(4,684)		(4,396)		(4,512)
Borrowings				(2,905)		(13,180)		(13,433)
				(7,709)		(17,765)		(18,105)
Total liabilities				(18,259)		(27,456)		(27,162)
Net assets				41,544		34,173		33,248
Equity
Called-up share capital				4,210		3,886		3,886
Share premium				151,314		141,918		141,918
Merger reserve				(282)		(282)		(282)
Other reserve				333		391		333
Currency translation reserve				(46.645)		(44,508)		(44,618)
Accumulated loss				(67,386)		(67,232)		(67,989)
Total equity				41,544		34,173		33,248

The financial information was approved and authorised for issue by the Board of Directors on 31 August 2018 and was signed on its behalf by:

Aidar Assaubayev – Chief Executive Officer

ALTYN PLC

Consolidated statement of changes of equity

			Share capital		Share premium		Merger reserve		Currency translation reserve		Other reserves		Accumulated losses		Total
Unaudited			US$'000		US$'000		US'000		US$'000		US$'000		US$'000		US$'000
At 1 January 2018			3,886		141,918		(282)		(44,618)		333		(67,989)		33,248
Profit for the period			-		-		-		-		-		603		603
Exchange differences on translating foreign operations			-		-		-		(2,027)		-		-		(2,027)
Total comprehensive profit for the period			-		-		-		(2,027)		-		603		(1,424)
Equity shares issued			324		9,396		-		-		-		-		9,720
At 30 June 2018			4,210		151,314		(282)		(46,645)		333		(67,386)		41,544
Unaudited			US$'000		US$'000		US'000		US$'000		US$’000		US$'000		US$'000
At 1 January 2017			3,886		141,918		(282)		(45,804)		333		(66,060)		33,991
Loss for the period			-		-		-		-		-		(1,172)		(1,172)
Exchange differences on translating foreign operations			-		-		-		1,296		-		-		1,296
Total comprehensive loss for the period			-		-		-		1,296		-		(1,172)		124
Share based payment			-		-		-		-		58		-		58
At 30 June 2017			3,886		141,918		(282)		(44,508)		391		(67,232)		34,173
Audited			US$'000		US$'000		US'000		US$'000		US$’000		US$'000		US$'000
At 1 January 2017			3,886		141,918		(282)		(45,804)		333		(66,060)		33,991
Loss for the year			-		-		-		-		-		(1.929)		(1,929)
Other comprehensive loss			-		-		-		1,186		-		-		1,186
Total comprehensive loss for the year			-		-		-		1,186		-		(1,929)		(743)
At 31 December 2017			3,886		141,918		(282)		(44,618)		333		(67,989)		33,248

ALTYN PLC

Notes to the consolidated financial information

				Six months ended 30 June 2018		Six months ended 30 June 2017		Year ended 31 December 2017
				(unaudited)		unaudited		(audited)
		Note		US$’000		US$’000		US$’000
Net cash inflow from operating activities		7		2,504		1,639		5,107
Investing activities
Purchase of property, plant and equipment				(2,397)		(966)		(2,252)
Exploration costs				-		(264)		(439)
Net cash used in investing activities				(2,397)		(1,230)		(2.691)
Financing activities
Loans received				-		756		724
Loans and Interest paid				(610)		(1,865)		(4,672)
Net cash flow from financing activities				(610)		1,109		(3,948)
(Decrease)/increase in cash and cash equivalents				(503)		700		(1,532)
Cash and cash equivalents at the beginning of the period/year				704		2,236		2.236
Cash and cash equivalents at end of the period/year				201		1,536		704

1. Basis of preparation

General

Altyn Plc is registered and domiciled in England and Wales, whose shares are publicly traded on the London Stock Exchange.

The interim financial results for the period ended 30 June 2018 are unaudited. The financial information contained within this report does not constitute statutory accounts as defined by Section 434(3) of the Companies Act 2006.

This interim financial information of the Company and its subsidiaries (“the Group”) for the six months ended 30 June 2018 have been prepared, in accordance with IAS34 ( interim financial statements) and on a basis consistent with the accounting policies set out in the Group's consolidated annual financial statements for the year ended 31 December 2017. It has not been audited, does not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2017. The 2017 annual report and accounts, as filed with the Registrar of Companies, received an unqualified opinion from the auditors.

The financial information is presented in US Dollars and has been prepared under the historical cost convention.

The same accounting policies, presentation and method of computation are followed in this consolidated financial information as were applied in the Group's latest annual financial statements except that in the current financial year, the Group has adopted a number of revised Standards and Interpretations. However, none of these have had a material impact on the Group.

In addition, the IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group.

Going concern

The current cash position is sufficient to cover ongoing operating and administrative expenditure for the next 12 months from the date these accounts were released.

The Directors consider that the cash generated from its operations from the Group's producing assets to be sufficient to cover the expenses of running the Group's business for the foreseeable future.

In terms of financing the underground development, the Company will not be incurring any substantial capital expenditure until further capital funds are raised under terms acceptable to the Company.

The Company has therefore adopted the going concern basis in the preparation of these financial statements.

ALTYN PLC

Notes to the consolidated financial information (continued)

Directors Responsibility Statement and Report on Principal Risks and Uncertainties

Responsibility statement

The Board confirms to the best of their knowledge:

The condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

The interim management report includes a fair review of the information required by:

DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

DTR 4.2.8R of the Disclosures and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

The Company’s management has analysed the risks and uncertainties and has in place control systems that monitor daily the performance of the business via key performance indicators. Certain factors are beyond the control of the Company such as the fluctuations in the price of gold and possible political upheaval. However, the Company is aware of these factors and tries to mitigate these as far as possible. In relation to the gold price the Company is pushing to achieve a lower cost base in order to minimise possible downward pressure of gold prices on profitability. In addition, it maintains close relationships with the Kazakhstan authorities in order to minimise bureaucratic delays and problems.

Risks and uncertainties identified by the Company are set out on page 8 and 9 of the 2017 Annual Report and Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2018 to the principal risks and uncertainties as set out in the 2017 Annual Report and Accounts and these are as follows:

• Fiscal changes in Kazakhstan
• No access to capital / funding for Sekisovskoye or Karasuyskoye
• Commodity price risk
• Currency risk
• Changes to mining code in Kazakhstan
• Reliance on operating in one country
• Reliant on one operating mine
• Technical difficulties associated with developing the underground mine at Sekisovskoye
• Failure to achieve production estimates

2. Profit/(loss) per ordinary share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The weighted average number of ordinary shares and retained profit/(loss) for the financial period for calculating the basic loss per share for the period are as follows:

		Six months ended 30 June 2018		Six months ended 30 June 2017		Year ended 31 December 2017
		(unaudited)		(unaudited)		(audited)
The basic weighted average number of ordinary shares in issue during the period		2,528,508,797		2,334,342,130		2,334,342,130
The profit/l(loss) for the period attributable to equity shareholders (US$’000s)		603		(1,172)		(1,929)

2. Profit/(loss) per ordinary share (continued)

The potential number of shares which could be issued following the conversion of the bonds currently outstanding amounts to approximately 198m shares being issued on conversion.

3. Intangible assets		Karasuskoye Geological data		Exploration and evaluation costs			US$'000
Cost
1 January 2017		11,345		718			12,063
Additions		-		264			264
Amortisation capitalised		-		297			297
Reclassified		-		142			142
Currency translation adjustment		495		30			525
30 June 2017		11,840		1,451			13,291
Additions		-		1,166			1,166
Amortisation capitalised		-		724			724
Reclassified		-		15			15
Currency translation adjustment		(416)		(30)			(446)
December 2017		11,424		3,326			14,750
Amortisation capitalised		-		581			581
Currency translation adjustment		(338)		-			(338)
30 June 2018		11,086		3,907			14,993
Accumulated amortisation
1 January 2017		1,799		-			1,799
Charge for the period		297		-			297
Currency translation adjustment		161		-			161
30 June 2017		2,257		-			2,257
Charge for the period		724		-			724
Currency translation adjustment		(112)					(112)
31 December 2017		2,869		-			2,869
Charge for the period		581		-			581
Currency translation adjustment		(98)		-			(98)
30 June 2018		3,352		-			3,352
Net books values
30 June 2017		9,583		1,451			11,034
31 December 2017		8,555		3,326			11,881
30 June 2018		7,734		3,907			11,641

The intangible assets relate to the historic geological information pertaining to the Karasuyskoye Ore Fields. The Ore Fields are located in close proximity to the current open pit and underground mining operations of Sekisovskoye. In May 2016 the Company was awarded an exploration and evaluation contract, which is valid for six years, with a right to extend for a further 4 years. The company is in process of applying for a test production licence which is expected to be received in the near term.

Ongoing costs in relation to exploration and evaluation are capitalised.

4. Property, plant and equipment

			Mining properties and leases US$000		Freehold land and buildings US$000		Plant, Equipment fixtures and fittings US$000		Assets under construction US$000		Total US$000
Cost
1 January 2017			11,351		24,241		18,014		4,155		57.761
Additions			500		5		492		242		1,239
Disposals			-		-		(140)		-		(140)
Transfers			(1,682)		2,335		1,682		(2,335)		-
Currency translation adjustment			303		827		561		203		1,894
30 June 2017			10,472		27,408		20,609		2,265		60,754
Additions			696		33		190		444		1,363
Disposals					(15)		(170)		(133)		(318)
Transfers			12		130		(42)		(316)		(216)
Currency translation adjustment			(337)		(805)		(513)		(154)		(1,809)
31 December 2017			10,843		26,751		20,074		2,106		59,774
Additions			1,837		2		141		417		2,397
Disposals			-		-		(262)		-		(262)
Transfers			389		7		8		(404)		-
Currency translation adjustment			(488)		(686)		(679)		-		(1,853)
30 June 2018			12,581		26,074		19,282		2,119		60,056
Accumulated depreciation
1 January 2017			2,262		5,100		13,083		-		20,445
Charge for the period			127		1,275		1,310		-		2,712
Disposals			-		-		(112)		-		(112)
Currency translation adjustment			75		166		489		-		730
30 June 2017			2,464		6,541		14,770		-		23,775
Charge for the period			95		1,223		478		-		1,796
Disposals			-		(15)		(136)		-		(151)
Transfers			(180)		(290)		411		-		59
Currency translation adjustment			(73)		(199)		(478)		-		(750)
31 December 2017			2,306		7,260		15,045		-		24,611
Charge for the period			124		1,254		839		-		2,217
Disposals			-		-		(147)		-		(147)
Currency translation adjustment			(65)		(240)		(455)		-		(760)
30 June 2018			2,365		8,274		15,282		-		25,921
Net Book Values
1 January 2017			9,089 9,0906,269		19,441		4,931		4,155		37,316
30 June 2017			8,008		20,867		5,839		2,265		36,979
31 December 2017			8,537		19,491		5,029		2,106		35,163
30 June 2018			10,216		17,800		4,000		2,119		34,135

The additions in the period relate to the continuing works associated with the underground mine.

5. Reserves

A description and purpose of reserves is given below:

Reserve		Description and purpose
Share capital		Amount of the contributions made by shareholders in return for the issue of shares.
Share premium		Amount subscribed for share capital in excess of nominal value.
Share based payment		Amount accrued in relation to the share based payment charge relating to the share options issued.
Merger Reserve		Reserve created on application of merger accounting under a previous GAAP.
Currency translation reserve		Gains/losses arising on re-translating the net assets of overseas operations into US Dollars.
Accumulated losses		Cumulative net gains and losses recognised in the consolidated statement of financial position.

ALTYN PLC

Notes to the consolidated financial information (continued)

6. Related party transactions

Remuneration of key management personnel

The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 - “Related Party Disclosures”. The total amount remaining unpaid with respect to remuneration of key management personnel amounted to US$148,000 (December 2017 US$127,000).

		Six months ended 30 June 2018		Six months ended 30 June 2017		Year to December 2017
		US$		US$		US$
Short term employee benefits		73,500		154,050		350,736
		73,500		154,050		350,736
Social security costs		7,132		14,954		33,813
		80,632		169,004		384,549

The reduction in remuneration is due to a reduced remuneration being taken by the chief Executive Officer.

During the period, the company entered into the following transactions with companies in which the Assaubayev family have a controlling interest:

• An amount is owing to Asia Mining Group of US$522,000, (2017:US$824,000) and is included within trade payables.
• Loans at an average in interest rate of 7% were made to the Company by Amrita Investments Limited. The total amount currently outstanding including accrued interest amounts to US$850,000 (31 December 2017 US$937,000), the loans are repayable in 2019.
• In February2016 the Company issued US$10m of convertible bonds to African Resources Limited. The bonds carry a coupon rate of 10% per annum payable semi-annually in arrears on 29 February and 29 July each year. Unless the bonds are re-purchased and cancelled redeemed or converted prior to the scheduled maturity date, they will be repaid in February 2021 at their principal amount. Of the original amount US$9.7m of the bonds were converted into Ordinary shares at 3p per share in February 2018. At 30 June 2018 an amount of US$2.6m, including accrued interest was payable on the remaining bonds, the expectation is that the remaining bonds will be converted into share capital in H2 2018.

The transactions incurred by the Company were on normal commercial terms.

7. Notes to the cash flow statement

		Six months ended 30 June 2018 (unaudited) US$000's		Six months ended 30 June 2017 (unaudited) US$000's		Year ended 31 December 2017 (audited) US $000's
Profit/(loss) before taxation		603		(1,186)		(1,917)
Adjusted for
Finance expense		596		1,290		2,834
Depreciation of tangible fixed assets		2,217		2,709		4,508
Amortisation of intangibles		-		-		231
Change in provisions		-		(99)		(374)
(Increase)/decrease in inventories		(1,383)		(1,144)		20
Decrease in other financial liabilities		(92)		(229)		(316)
Increase in trade receivables		41		718		195
Decrease/(increase) in trade and other payables		4		(295)		1,374
Loss on disposal of property, plant and equipment		135		27		195
Fair value adjustment		-		56		(1,453)
Foreign currency translation		383		(213)		52
Cash inflow from operations		2,504		1,634		5,118
Income taxes		-		5		(11)
		2,504		1,639		(5,107)

8. Events after the balance sheet date

There were no significant post balance sheet events to report.

This report will be available on our website at www.altyn.uk

ALTYN PLC

Company information

Directors		Kanat Assaubayev Aidar Assaubayev Sanzhar Assaubayev Neil Herbert Ashar Qureshi Victor Shkolnik		Chairman Chief executive officer Executive director Non-Executive director Non-executive director Non-executive director
Secretary		Rajinder Basra
Registered office and number		Company number: 05048549 28 Eccleston Square London SW1V 1NZ Telephone: [phone]
Company website		www.altyn.uk
Kazakhstan office		10 Novostroyevskaya Sekisovskoye Village Kazakhstan Telephone: [phone] Fax: [phone]
Auditor		BDO LLP, 55 Baker Street, London W1U 7EU
Registrars		Neville Registrars 18 Laurel Lane Halesowen West Midlands B63 3DA Telephone: [phone]
Bankers		NatWest Bank plc London City Commercial Business Centre 7th Floor, 280 Bishopsgate London EC2M 4RB LTG Bank AG Herrengasse 12 FL-9490, Vaduz Principal of Liechtenstein

View source version on businesswire.com: https://www.businesswire.com/news/home/20180831005341/en/