Interim Results and Operation

RNS Number : 5575T
Central Asia Metals PLC
30 September 2010
 



 

30 September 2010

CENTRAL ASIA METALS PLC

 ("CAML" or "the Company")

 

 

Interim Results for the six months to 30 June 2010

 

 

Central Asia Metals plc (AIM:CAML), a mining exploration and development company focused on base and precious metals in Central Asia, announces its interim results for the six months to 30 June 2010, along with an operational update.

 

 

Financial Highlights for H1 2010 (including post period)

 

·    On 30 September 2010, CAML completed its planned Initial Public Offering (IPO) on AIM raising US$60m (gross), which will be used primarily for the construction of a 10,000 tonne per annum SX-EW facility at Kounrad in Kazakhstan.

·    As part of the IPO process, CAML converted from a private to a public limited company. This conversion included the transfer of the entire share premium account of the parent company of US$54.4m to distributable reserves as at 04 August 2010.

·    In May 2010 CAML raised US$5.4m (gross) by issuing convertible loan notes.  These notes converted into equity at the IPO (5,160,833 new ordinary shares).

·    In February 2010, a $1m 'gold loan' was converted into ordinary shares.

·    CAML has no outstanding debt.  

·    Sales of cathode copper at the Kounrad pilot plant in the six months to June 30 2010 were 184.5 tonnes which generated revenue of c US$1.1m.

·    General and administrative expenses amounted to US$3.9m, which is up by 61% compared to the same period of last year due to increased consulting and IPO costs.

 

 

Operational Highlights for H1 2010 (including post period)

 

·    In July 2010, earthworks commenced on site at Kounrad and key personnel required for the construction and management of the project have been recruited.

·    The Tochtar (Kazakhstan) and Ereen (Mongolia) projects both have potential purchasers and are undergoing due diligence.  Management remains hopeful of selling both assets in the next six months.

·    30 year mining licences were obtained for both Ereen and Handgait in Mongolia.

·    An extended exploration licence to June 2012 was also obtained for the Alag Bayan project.

 

Outlook for Full Year 2010

 

·    CAML is planning to spend approximately US$10m on capital expenditure at Kounrad in H2 2010.  The remaining US$37m of the planned overall Kounrad capital cost of approximately US$47m will be spent completing the construction in 2011.  Earthworks will continue through to middle of November 2010 and equipment orders will be placed over the winter.

·    CAML continues to negotiate the disposal of both Ereen and Tochtar.

 

Operating and Financial Review

 

During the first six months of the year the feasibility study for the 10,000 tonne per annum SX-EW facility at Kounrad, in Kazakhstan was completed.  The results of the feasibility study were reviewed by the Board and a decision taken to raise finance prior to the IPO in order to facilitate the commencement of the construction programme in the during the summer 2010.  Consequently, US$5.4m (gross) was raised by way of convertible loan notes in May 2010.  These notes converted in to ordinary shares at a 30% discount to the IPO price on 30 September 2010.    

 

The Company conducted very little exploration activity during the period but managed to convert several licences at both Ereen and Handgait into 30 year mining licences.  This was achieved based on the previous exploration work and drilling that had been performed in 2009.  At Alag Bayan, the Company also managed to extend the exploration licence to 2012 based on the results of its 2009 drilling programme.

 

The Company's loss for the period of US$4.9m was significantly lower than that recorded in the first six months of 2009 (US$8.4m) primarily due to favourable exchange rate movements and the increased revenue from copper sales.  In the first half of the year, CAML sold 184.5 tonnes of copper cathode from the pilot scale SX-EW plant at Kounrad generating revenue of US$1.1m.   This was due to a decision in April 2009 to increase daily production at the pilot plant from 200kg to 600kg.  These favourable movements were partially offset by increased costs for professional advice associated with the fund raising activities.

 

In the second half of the year and following the successful IPO and fund raising of US$60m (gross) on 30 September 2010, the Company will move forward with the development of the Kounrad SX-EW plant. Ground works will continue until the onset of winter and then recommence in March 2011.   Management will be placing all the equipment orders over the winter months and finalising contracts in order to complete the construction of the facility in 2011.  Plans to further develop the exploration assets at Alag Bayan and Handgait will be considered by the Board and discussions will continue regarding the potential sale of Tochtar and Ereen.

 

 

Nigel Hurst-Brown, Chairman of Central Asia Metals, commented:

 

"I am delighted on the progress the CAML has made over the past six months. The successful admission of the Company's shares to trading on AIM today and the raising of US$60 million of new funding by way of a placing reinforces our commitment to developing our strategic assets.  We are excited about constructing a plant at Kounrad in order to commence production of 10,000 tonnes per annum of copper in Q4 2011. We will keep all our investors informed of the Company's forthcoming developments."

 

 

Enquiries:

 

Central Asia Metals plc

Nick Clarke, CEO

Nigel Robinson, CFO

 

+44 (0)20 7183 5402

 

KPMG Corporate Finance

Nominated Adviser

Susan Walker

 

 

 

+44 (0)20 7311 1000

 

Mirabaud Securities LLP

Broker

Peter Krens

  

+44 (0)20 7321 2508

 

Pelham Bell Pottinger

Charles Vivian

Klara Kaczmarek

 

+44 (0)20 7861 3883 / +44 (0) 7859 048 228

 

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2010

 

 



Unaudited

Audited

Unaudited

Assets


30-Jun-10

31-Dec-09

30-Jun-09

Non-Current Assets


$

$

$

Property, Plant and Equipment


1,914,754

2,089,040

2,307,409

Intangible Assets


12,126,860

11,542,686

10,351,342

Trade and Other Receivables


622,225

603,488

1,322,846



14,663,839

14,235,214

13,981,597

Current Assets





Inventory


233,570

275,986

242,820

Trade and Other Receivables


1,085,397

742,296

364,401

Cash and Cash Equivalents


4,236,073

1,325,088

1,043,157



5,555,040

2,343,370

1,650,378

Assets of the disposal group classified as held for sale


4,035,911

3,646,307

4,650,966




9,590,951

5,989,677

6,301,344

Total assets


24,254,790

20,224,891

20,282,941

Equity attributable to owners of the parent





Ordinary Shares


404,168

389,461

292,209

Share Premium


54,446,174

53,460,880

46,944,935

Treasury Shares


(1,723,588)

(1,723,416)

-

Other Reserves


6,091,226

5,044,551

1,074,839

Retained Earnings


(45,786,862)

(40,927,071)

(32,987,651)

Total Equity


13,431,118

16,244,405

15,324,332

Liabilities





Non-Current Liabilities





Provision for Liabilities and Charges


464,349

441,257

1,067,759



464,349

441,257

1,067,759

Current Liabilities





Trade and Other Payables


1,476,888

1,460,604

451,815

Borrowings


7,792,857

1,000,000

228,291



9,269,745

2,460,604

680,106

Liabilities of disposal group classified as held for sale


1,089,578

1,078,625

3,210,744




10,359,323

3,539,229

3,890,850

Total Liabilities


10,823,672

3,980,486

4,958,609

Total Equity and Liabilities


24,254,790

20,224,891

20,282,941

 

 

 

 

 

 

 

 

 

 

 

INTERIM CONSOLIDATED INCOME STATEMENT (Unaudited)

for the six months period ended 30 June 2010

 

 

 

 



Six months ended 30 June



2010

 2009

Continuing operations


$

$

Revenue


1,179,002

559,121

Cost of Sales


(863,538)

(649,814)

Gross Profit/(Loss)


315,464

(90,693)





Other income / (loss)


44,361

85,414

General and administrative expenses, including:




 - Exchange rate differences


965,280

(5,983,528)

 - Other General & Administrative Expenses


(3,850,191)

(2,392,086)

Total General and administrative expenses


(2,884,911)

(8,375,614)

Other Expenses


(7,195)

(31,105)

Finance Costs - net


(2,327,510)

(3,090)

Loss before Income Tax


(4,859,791)

(8,415,088)

Income Tax




Loss for the period


(4,859,791)

(8,415,088)

Loss Attributable to:




 - Owners of the parent


(4,859,791)

(8,415,088)

Loss per share attributable to the equity holders of the company during the period




Basic loss per share


$(0.12)

$(0.29)

 

 

 

 

 

 

 

INTERIM CONSOLIDATED STATEMENT OF CHANGES OF EQUITY (Unaudited)

for the six months period ended 30 June 2010

 

 

 

 

 

 


Share capital

Share Premium

Treasury Shares

Other Reserves

Retained Earnings

Total


$

$

$

$

$

$

At 31 December 2008

292,208

46,944,935

-

829,229

(25,925,365)

22,141,007

Total comprehensive income

-

-

-

3,391,045

(15,001,706)

(11,610,661)

Transactions with owners







Issue of Shares

71,906

4,817,704

-

-

-

4,889,610

Issue of Share Options

-

-

-

805,677

-

805,677

EBT shares granted

25,347

1,698,241

(1,723,416)

18,600

-

18,772

Total transactions with owners

97,253

6,515,945

(1,723,416)

824,277

-

5,714,059

At 31 December 2009

389,461

53,460,880

(1,723,416)

5,044,551

(40,927,071)

16,244,405

Total comprehensive income

-

-

-

14,542

(4,859,791)

(4,845,249)

Transactions with owners







Gold Loan conversion into shares

14,706

985,294

-

-

-

1,000,000

Issue of Share Options

-

-

(172)

521,374

-

521,202

EBT shares granted

-

-

-

510,759

-

510,759

Total transactions with owners

14,706

985,294

(172)

1,032,133

-

2,031,961

At 30 June 2010

404,167

54,446,174

(1,723,588)

6,091,226

(45,786,862)

13,431,117

 

 

 

 

 

 

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS  (unaudited)

for the six months period ended 30 June 2010

 

 

 

 

 



Six months ended 30 June



2010

2009

Cash Flows from Operating Activities


$

$

Cash (Absorbed by) / Generated from  operations


(1,816,172)

(2,949,566)

Interest Paid


(1,998)

(5,576)

Income Tax Paid


-

-

Net Cash (Absorbed by) / Generated from Operating Activities


(1,818,170)

(2,955,142)

Cash Flows from Investing Activities




Purchases of Property, Plant and Equipment


(76,501)

(313,767)

Proceeds from sale of Property, Plant and Equipment


5,854

2,985

Purchase of Intangible Assets


(108,529)

(11,880)

Exploration Costs Capitalised


(563,464)

(311,085)

Interest Received


12,345

2,486

Net Cash used in Investing Activities


(730,295)

(631,261)

Cash Flows from Financing Activities




Proceeds from Issuance of Convertible Note


5,455,000

-

Purchase of treasury shares


(172)

-

Net Cash used in Financing Activity


5,454,828

-





Net (Decrease) / Increase in Cash and Cash Equivalents


2,906,363

(3,586,403)

Cash and Cash Equivalents at 1 January


1,330,476

4,629,560

Cash and Cash Equivalents at 30 June


4,236,839

1,043,157

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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