Final Results

RNS Number : 8847H

Eurasia Mining PLC

06 June 2011

 



Eurasia Mining Plc

("Eurasia" or the "Company")

Annual Results for the Twelve Months Ended 31 December 2010

Chairman's statement and business review

Once again I am pleased to report to you on steady progress over the last 12 months. The year has been marked by further success in Eurasia's platinum exploration work and an expansion of its activities into uranium in Kyrgyzstan through a joint venture company.

West Kytlim

Eurasia's plans for mining at West Kytlim are advancing, in that the Company continues to add new areas of potential alluvial platinum resources through ongoing drilling, pitting and bulk sampling. These new areas are being integrated into resource calculations that will be submitted to the authorities for approval, at which time a further announcement will be made. Meanwhile the original application for the production licence in this area, based on already approved reserves, is still awaiting approval from the Russian mining authorities, essential before exploitation can be commenced. At the time of writing, there has been no indication from the authorities as to when this approval may be forthcoming.

Despite this ongoing delay, the indications are that such permits for mining will be granted but we are not sure when this will happen as we understand that Eurasia is not the only operator to find itself in this situation in Russia. The Board believes that the eventual mine will achieve the low capital and operating costs inherent in alluvial mining with profitability enhanced by the strong improvement in platinum price experienced over the last year.

Kola

At our Kola projects, drilling in the third quarter of 2010 on the Monchetundra Licence, announced on 20 March 2011, outlined broadly stratabound mineralization dipping at 10-30° degrees to the east within an initial target area of approximately 1100m long and 700m wide. This potentially open pittable zone, called West Nittis, consists of sulphide mineralization containing base metals with PGM; it is additional to the mineralized zones already drilled further south in the Monchetundra licence area.

The drilling also identified separate near-surface high grade (PGM) mineralization above the West Nittis zone. This discovery was further confirmed by follow up drilling at the end of the year. The table below, also announced on 29 March 2011 shows the significant intersections obtained to date within this zone.

Hole No.	Total depth	Interval	Length	True width	Au,	Pt,	Pd,	Cu,	Ni,	Pd equiv
	(metres)	(metres)	(metres)	(metres)	g/t	g/t	g/t	g/t	g/t	g/t
MT-79	166.2	17.3 - 19.0	1.7	1.36	2.37	0.14	2.5	0.95	0.15	12.19
MT-79		37.3 - 43.2	5.9	5.41	0.26	2.66	8.2	0.06	0.07	15.96
MT86	90	26.0 - 29.3	3.3	2.66	0.14	0.75	4.96	0.67	0.15	9.66
(includes)		26.0 - 26.9	0.9	0.72	0.27	1.43	6.46	0.85	0.21	15.76
MT-86		49.0 - 50.1	1.1	1.03	12.28	6.52	98.8	2.13	0.15	145.39
MT-87	109.2	8.7 - 27.1	18.4	13.46	0.22	0.23	1.57	0.18	0.08	4.05
(includes)		8.7 - 19.05	10.35	7.43	0.11	0.34	2.38	0.29	0.09	5.45

The directors believe that some of these grades are among the highest ever intersected in the Monchetundra area. The Cu-PGM mineralization is represented by a series of chalcopyrite-rich veins and veinlets in brecciated shear zones. The north-south trending mineralization remains open both along strike and down dip.

The grade and very shallow depth below surface of these intersections adds considerably to the potential for establishing an open pit mining project on the Monchetundra Licence. 

As announced on 15 December 2010, the exploration licence at Monchetundra in the Kola Peninsula in Russia was extended for a further two years. It is the Company's intention to progress detailing the resource potential of the West Nittis zone together with the previously drilled resource at Loypishnun in the southern part of the licence area.

The Company intends to focus on developing mine plans to allow the application for a production licence to be made during the term of the extension.

 New Projects

The Company is continuing to assess a number of quality project opportunities in Russia while keeping abreast of developments in mining and licensing legislation.    It is hoped that the gold exploration licences applied for by Eurasia in the Far East of Russia will become available under reasonable terms during 2011 and if this progresses, a further announcement will be made.

In addition, as announced on 17 January 2011, as an early outcome of Eurasia's expanded search for near to production mining projects in the former Soviet Republics; the Company executed a legally binding Memorandum of Understanding ("MOU") to acquire an interest in the Kamushanovsky Uranium Project in Kyrgyzstan. The project is located 60 kilometres northwest of the capital Bishkek. It has been the focus of a five-year exploration programme and is currently estimated to contain at least 1,775 tonnes of uranium oxide.

The MOU was assigned by Eurasia to Energy Resources Asia Limited ("ERA") in March 2011. ERA is a new private company currently managed by Eurasia; it was co-founded with Afrasia Mining & Energy Investment Holdings Ltd, (AME) who have access to a number of other uranium exploration licences in Kyrgyzstan.

As announced on 14 March 2011, financing is now being sought to further establish ERA and complete the MOU on Kamushanovsky. At this stage the anticipated fundraise referred to in the announcement has not completed, but the Directors believe that the necessary funds will be located in due course.

A bankable feasibility study ("BFS") for the project incorporating pilot work directed at optimizing uranium extraction is in preparation. It is the intention that the BFS will be completed by the end of 2011 in advance of project development.

Kyrgyzstan was one of the centres of uranium mining before independence from the former Soviet Union. Although most mines closed in the early 1990's, ore processing is still active;  a plant with capacity for processing concentrates is located approximately 60 kilometers from the Kamushanovsky Deposit.

Conclusion

In conclusion, I want to thank shareholders for their continued patience in weathering the slow pace of the administrative system in Russia and  with our dedicated staff and board, I am hopeful that the continuing build up of good news must deliver capital growth in the near future.

Michael Martineau

Chairman

For more information please contact:

Eurasia Mining
Christian Schaffalitzky / Michael de Villiers	Tel: [phone]
Katy Mitchell, WH Ireland Limited	Tel: [phone]

Consolidated statement of comprehensive income

for the year ended 31 December 2010

	Note	Year to 31 December 2010	Year to 31 December 2009
		£	£
Impairment loss		-	(1,116,921)
Administrative costs		(558,918)	(724,824)
Result from equity accounted investments	13	(353)	31
Finance income		-	49
Finance costs		-	(191,170)
Other financial result	9	36,716	(223,443)
Loss before tax		(522,555)	(2,256,278)
Income tax expense	10	-	-
Loss for the period		(522,555)	(2,256,278)
Other comprehensive income/(loss):
Exchange differences on translation of foreign operations		(36,500)	46,273
Other comprehensive income/(loss) for the period, net of tax		36,500	46,273
Total comprehensive loss for the period		(559,055)	(2,210,005)
Loss for the period attributable to:
Equity holders of the parent		(522,555)	(2,159,149)
Minority interest		-	(97,129)
		(522,555)	(2,256,278)
Total comprehensive loss for the period attributable to:
Equity holders of the parent		(559,055)	(2,106,417)
Minority interest		-	(103,588)
		(559,055)	(2,210,005)
Loss per share
Basic and diluted loss (pence per share)	22	(0.12)	(0.92)

The loss for the Parent Company for the year was £562,353 (2009: £2,085,385)

Consolidated statement of financial position

as at 31 December 2010       

	Note	31 December 2010	31 December 2009
		£	£
ASSETS
Non-current assets
Property, plant and equipment	11	25,166	26,345
Investments in equity accounted investees	13	31,485	35,003
Other financial assets	14	1,148,586	262,766
Total non-current assets		1,205,237	324,114
Current assets
Inventories		926	1,375
Trade and other receivables	15	44,803	26,025
Cash and cash equivalents		943,636	137,757
Total current assets		989,365	165,157
Total assets		2,194,602	489,271
EQUITY
Issued capital	16	18,461,150	16,240,544
Reserves	18	3,037,083	3,077,523
Accumulated losses		(19,480,722)	(18,973,243)
Total equity		2,017,511	344,824
LIABILITIES
Current liabilities
Trade and other payables	19	177,091	144,447
Total current liabilities		177,091	144,447
Total liabilities		177,091	144,447
Total equity and liability		2,194,602	489,271

Consolidated statement of changes in equity

	Note	Share capital	Share premium	Deferred shares	Capital redemption and other reserves	Foreign currency translation reserve	Accumulated losses	Total attributable to owners of parent	Minority interest	Total
		£	£	£	£	£	£	£	£	£
Balance at 1 January 2009		7,068,860	7,020,549		4,010,174	(743,142)	(16,872,373)	484,068	2,855	486,923
Issue of ordinary shares for consulting services performed and cancellation of consultants warrants under the same transaction	16	100,000	(70,000)		(12,574)	-	-	17,426	-	17,426
Share capital restructure		(7,025,483)	-	7,025,483	-	-	-	-	-	-
Issue of ordinary shares on conversion of loan notes		154,184	1,308,100	-	-	-	-	1,462,284	-	1,462,284
Issue of ordinary shares on exercise of warrants		51,276	534,075	-	(72,587)	-	-	512,764	-	512,764
Issue of ordinary shares for cash		7,500	67,500	-	-	-	-	75,000	-	75,000
Share issue cost		-	(1,500)	-	-	-	-	(1,500)	-	(1,500)
Recognition of equity component of convertible loan notes		-	-	-	21,726	-	-	21,726	-	21,726
Utilised equity component of convertible loan notes on conversion		-	-	-	(120,527)	-	-	(120,527)	-	(120,527)
Reversal of un-utilised equity component of convertible loan notes		-	-	-	(44,868)	-	44,868	-	-	-
Reversal of warrant valuation reserve on cancellation of warrants		-	-	-	(13,411)	-	13,411	-	-	-
Setting off minority shareholder loan		-	-	-	-	-	-	-	100,733	100,733
Transactions with owners		(6,712,523)	1,838,175	7,025,483	(242,241)	-	58,279	1,976,173	100,733	2,067,906
Loss for the period		-	-	-	-	-	(2,159,149)	(2,159,149)	(97,129)	(2,256,278)
Exchange differences on translation of foreign operations		-	-	-	-	52,732	-	52,732	(6,459)	46,273
Total recognised income and expense for the period		-	-	-	-	52,732	(2,159,149)	(2,106,417)	(103,588)	(2,210,005)
Balance at 31 December 2009		356,337	8,858,724	7,025,483	3,767,933	(690,410)	(18,973,243)	344,824	-	344,824
Balance at 1 January 2010		356,337	8,858,724	7,025,483	3,767,933	(690,410)	(18,973,243)	344,824	-	344,824
Issue of ordinary shares on exercise of warrants		81,434	786,652	-	(53,752)	-	-	814,334	-	814,334
Issue of ordinary shares for cash		145,575	1,310,175	-	-	-	-	1,455,750	-	1,455,750
Share issue cost		-	(103,230)	-	-	-	-	(103,230)	-	(103,230)
Cancellation of options by forfeiture		-	-	-	(15,076)	-	15,076	-	-	-
Recognition of share-based payment		-	-	-	64,888	-	-	64,888	-	64,888
Transactions with owners		227,009	1,993,597	-	(3,940)	-	15,076	2,231,742	-	2,231,742
Loss for the period		-	-	-	-	-	(522,555)	(522,555)	-	(522,555)
Exchange differences on translation of foreign operations		-	-	-	-	(36,500)	-	(36,500)	-	(36,500)
Total recognised income and expense for the period		-	-	-	-	(36,500)	(522,555)	(559,055)	-	(559,055)
Balance at 31 December 2010		583,346	10,852,321	7,025,483	3,763,993	(726,910)	(19,480,722)	2,017,511	-	2,017,511

Company statement of changes in equity

	Note	Share capital	Share premium	Deferred shares	Other reserves	Retained loss	Total
		£	£	£	£	£	£
Balance at 1 January 2009		7,068,860	7,020,549		4,010,174	(16,403,447)	1,696,136
Issue of ordinary shares for consulting services performed and cancellation of consultants warrants under the same transaction		100,000	(70,000)	-	(12,574)	-	17,426
Share capital restructure		(7,025,483)	-	7,025,483	-	-	-
Issue of ordinary shares on conversion of loan notes		154,184	1,308,100	-	-	-	1,462,284
Issue of ordinary shares on exercise of warrants		51,276	534,075	-	(72,587)	-	512,764
Issue of ordinary shares for cash		7,500	67,500	-	-	-	75,000
Share issue cost		-	(1,500)	-	-	-	(1,500)
Recognition of equity component of convertible loan notes		-	-	-	21,726	-	21,726
Utilised equity component of convertible loan notes on conversion		-	-	-	(120,527)	-	(120,527)
Reversal of un-utilised equity component of convertible loan notes		-	-	-	(44,868)	44,868	-
Reversal of warrant valuation reserve on cancellation of warrants		-	-	-	(13,411)	13,411	-
Transactions with owners		(6,712,523)	1,838,175	7,025,483	(242,241)	58,279	1,967,173
Loss for the period		-	-		-	(2,085,385)	(2,085,385)
Balance at 31 December 2009		356,337	8,858,724	7,025,483	3,767,933	(18,430,553)	1,577,924
Balance at 1 January 2010		356,337	8,858,724	7,025,483	3,767,933	(18,430,553)	1,577,924
Issue of ordinary shares on exercise of warrants		81,434	786,652	-	(53,752)	-	814,334
Issue of ordinary shares for cash		145,575	1,310,175	-	-	-	1,455,750
Share issue cost		-	(103,230)	-	-	-	(103,230)
Cancellation of options by forfeiture		-	-	-	(15,076)	15,076	-
Recognition of share-based payment		-	-	-	64,888	-	64,888
Transactions with owners		227,009	1,993,597	-	(3,940)	15,076	2,231,742
Loss for the period		-	-		-	(562,353)	(562,353)
Balance at 31 December 2010		583,346	10,852,321	7,025,483	3,763,993	(18,977,830)	3,247,313

Consolidated statement of cash flows

for the year ended 31 December 2010

	Note	Year to 31 December 2010	Year to 31 December 2009
		£	£
Cash flows from operating activities
Loss for the period		(522,555)	(2,256,278)
Adjustments for:
Depreciation of non-current assets		1,345	2,239
Impairment of intangible assets		-	1,116,921
(Profit)/loss on disposal of non-current assets		-	(129)
(Profit)/loss on disposal of investments		162	-
Share of loss of associates		353	(31)
Net foreign exchange loss		(36,878)	223,572
Investment income		-	(49)
Finance costs		-	191,170
Expense recognised in income statement in respect of   equity-settled share-based payments		64,888	17,426
		(492,685)	(705,159)
Movement in working capital
Decrease/(increase) in inventories		449	(6)
Increase  in trade and other receivables		(18,778)	(740)
Increase/(decrease) in trade payables		32,317	(430,673)
Cash outflow from operations		(478,697)	(1,136,578)
Interest paid		-	(9,679)
Net cash flow from operating activities		(478,697)	(1,146,257)
Cash flows from investing activities
Advanced to joint venture		(882,323)	(139,694)
Purchase of property, plant and equipment	11	-	(971)
Proceeds from disposal of property, plant and equipment		-	609
Payments for intangible assets		-	(5,058)
Interest received		-	49
Net cash (used)/generated in investing activities		(882,323)	(145,065)
Cash flows from financing activities
Proceeds from issue of equity shares	16	2,166,854	586,264
Net proceeds from issue of convertible loan notes		-	247,500
Net cash proceeds from financing activities		2,166,854	833,764
Net increase/(decrease) in cash and cash equivalents		805,834	(457,558)
Effects of exchange rate changes on the balance of cash held in foreign currencies		45	993
Cash and cash equivalents at beginning of period		137,757	594,321
Cash and cash equivalents at end of period		943,636	137,757

Company statement of cash flows

for the year ended 31 December 2010

	Note	Year to 31 December 2010	Year to 31 December 2009
		£	£
Cash flows from operating activities
Loss for the period		(562,353)	(2,085,385)
Adjustments for:
Depreciation of non-current assets		1,007	1,324
Profit on disposal of non-current assets		-	(129)
Impairment loss		-	1,184,162
Net foreign exchange loss		(673)	296
Investment income		-	(49)
Finance costs		-	191,170
Expense recognised in income statement in respect of   equity-settled share-based payments		64,888	17,426
		(497,131)	(691,185)
Movement in working capital
(Increase)/decrease in trade and other receivables		(19,602)	168
Increase/(decrease) in trade payables		37,654	(414,137)
Cash outflow from operations		(479,079)	(1,105,154)
Interest paid		-	(9,679)
Net cash flow from operating activities		(479,079)	(1,114,833)
Cash flows from investing activities
Purchase of property, plant and equipment	11	-	(970)
Proceeds from disposal of property, plant and equipment		-	609
Amounts advanced to related party	23	(884,234)	(160,846)
Interest received		-	49
Net cash used in investing activities		(884,234)	(161,158)
Cash flows from financing activities
Proceeds from issue of equity shares	16	2,166,854	586,264
Net proceeds from issue of convertible loan notes		-	247,500
Net cash proceeds from financing activities		2,166,854	833,764
Net increase/(decrease) in cash and cash equivalents		803,541	(442,227)
Effects of exchange rate changes on the balance of cash held in foreign currencies		580	(13,852)
Cash and cash equivalents at beginning of period		135,722	591,801
Cash and cash equivalents at end of period		939,843	135,722

1.  General information

Eurasia Mining Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at Suite 139, Grosvenor Gardens House, 35-37 Grosvenor Gardens, London SW1W 0BS. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals, gold and other minerals in Russia.

Eurasia Mining Plc's consolidated financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company.

The financial information contained in this document does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006. The figures for the year ended 31 December 2010 have been extracted from the audited statutory financial statements. The financial statements for the year ended 31 December 2010 received an unqualified auditors' report which did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

2. Annual Report and Notice of Annual General Meeting

The Annual Report and Accounts will be dispatched to shareholders on 7 June 2011 and will also be available on the Company's website from that date: www.eurasiamining.co.uk .

The Annual General Meeting of the Company has been convened at 11.00am, on 30 June 2010, at The East India Club, 16 St. James's Square, London SW1Y 4LH.

 

END

 

 

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