Final Results

RNS Number : 8092F

Eurasia Mining PLC

29 May 2013

 



Eurasia Mining plc

FINAL AUDITED RESULTS

FOR THE YEAR 31 DECEMBER 2012

Eurasia Mining plc ("Eurasia" or "the Company"), announces its final audited results for the year ended 31 December 2012.

Chairman's statement

I am pleased to report to you an important milestone in the development of the Company that has occurred since the end of the period under review. This was the confirmation of the increase in reserves at Eurasia's West Kytlim alluvial platinum project. We believe this increase is sufficient to sustain mining at multiple sites and could allow full production to be achieved sooner than originally anticipated. In Kola, the extension of the licence for a further year also allows the Company to complete drilling and lodge an application for the registration of a reserve and the issue of a discovery certificate.

West Kytlim

Since the end of the period under review the Company has announced the increase in the approved reserves at the West Kytlim alluvial platinum project, the licence of which is held by UAP. Most of this increase came from exploration drilling for extensions of the Tylai-Kosvinsky Placer along the terraces of the Tylai and Kosva Rivers and their tributaries over an approximate length of 18 kilometres.

Since 2010, detailed traverse drilling for the confirmation and approval of additional reserves has been conducted on terraces near the junction of the Tylai and Kosva Rivers, and also in a tributary and terraces of the Tylai River immediately to the North and South of the discovery area of Bolshaya Sosnovka. In 2012, reserve drilling was extended to the western Tylai terraces.

Up to the end of 2012, the total reserves identified in these areas totalled 1,689 kgs of raw platinum, as confirmed by the Urals Branch of the Federal Agency for Natural Resources, and as set out in the announcement of 12 April and 10 May, 2013.  It should be noted that these Estimates are C2 Reserves as defined by the national Russian standard on mining and minerals as published by the National Certification Body of the Russian Federation. For data to be included under this standard the Russian State or Federal body must approve it.

Significant areas explored remain to be detailed with more close-spaced drilling and this work will form part of the 2013-14 work programmes. The exploration licence has been extended to the end of 2014 to allow this work to be completed.

The results of ongoing resource conversion work on the licence area means that the current approved C2 reserves now considerably exceed the requirement for a single start-up operation, creating the opportunity to achieve rapid scale up using multiple sites in the future mining operation. The Company still waits the granting of a production licence for mining, now expanded to include the new reserves.

Monchetundra

A new broadly stratabound mineralization, dipping at 10-30°, was discovered at West Nittis by the UAP in 2010 that consists of sulphide mineralization containing base metals with PGM. This drilling also identified separate near-surface high-grade (PGM) mineralization above the West Nittis zone. This zone will be the focus of further drilling to be carried out in the summer of 2013, with a view to outlining a resource that can be submitted to the authorities for approval and discovery certification to Russian reserve standards. I am hopeful that this project will develop into a significant asset in the near term.

Kamushanovsky

Towards the end of 2012, discussions were underway with a third party to acquire a majority stake in this uranium venture in which the Company holds a minority stake. Eurasia, through its subsidiary Energy Resources Asia Limited, is awaiting the results of these discussions to ascertain the best option for optimising the investment in this project.

Michael Martineau

Chairman

28 May 2013

Eurasia Mining Plc.

(Company number 3010091)

Consolidated statement of comprehensive income

For the year ended 31 December 2012

		Year to 31December 2012	Year to 31 December 2011
		£	£
Revenue		62,223	79,580
Administrative costs		(756,051)	(938,076)
Share of results from equity accounted investments		-	(29,625)
Loss on revised period of repayment of the loan made to joint venture		(651,006)	-
Finance income		9,025	-
Other financial result		(22,788)	(61,531)
Loss before tax		(1,358,597)	(949,652)
Income tax expense		-	-
Loss for the period		(1,358,597)	(949,652)
Other comprehensive income:
Exchange differences on translation of foreign operations		811	72,234
Other comprehensive income for the period, net of tax		811	72,234
Total comprehensive income for the period		(1,357,786)	(877,418)
Loss for the period attributable to:
Equity holders of the parent		(1,331,700)	(934,273)
Non-controlling interest		(26,897)	(15,379)
		(1,358,597)	(949,652)
Total comprehensive income for the period attributable to:
Equity holders of the parent		(1,318,639)	(875,862)
Non-controlling interest		(39,147)	(1,556)
		(1,357,786)	(877,418)
Loss per share
Basic and diluted loss (pence per share)		(0.17)	(0.15)

In accordance with section 408(3) of the Companies Act 2006, Eurasia Mining plc is exempt from the requirement to present its own income statement. The amount of the loss for the financial year recorded within the financial statements of Eurasia Mining plc is £1,250,471 (2011: £991,490)

Eurasia Mining Plc.                                                                                                                             

(Company number 3010091)

Consolidated statement of financial position

As at 31 December 2012

           

		31 December 2012	31 December 2011
		£	£
ASSETS
Non-current assets
Property, plant and equipment		24,876	24,598
Other financial assets		2,526,665	2,544,321
Total non-current assets		2,551,541	2,568,919
Current assets
Inventories		1,618	376
Trade and other receivables		58,434	32,907
Cash and cash equivalents		1,735,420	171,098
Total current assets		1,795,472	204,381
Total assets		4,347,013	2,773,300
EQUITY
Issued capital		22,327,527	19,442,527
Reserves		3,289,345	3,209,594
Accumulated losses		(21,666,817)	(20,335,117)
Equity attributable to equity holders of the parent		3,950,055	2,317,004
Non-controlling interest		259,257	298,404
Total equity		4,209,312	2,615,408
LIABILITIES
Current liabilities
Trade and other payables		137,701	157,892
Total current liabilities		137,701	157,892
Total liabilities		137,701	157,892
Total equity and liabilities		4,347,013	2,773,300

Consolidated statement of changes in equity

		Share capital	Share premium	Deferred shares	Capital redemption and other reserves	Foreign currency translation reserve	Accumulated losses	Total attributable to owners of parent	Non-controlling interest	Total
		£	£	£	£	£	£	£	£	£
Balance at 1 January 2011		583,346	10,852,321	7,025,483	3,763,993	(726,910)	(19,480,722)	2,017,511	-	2,017,511
Issue of ordinary shares on exercise of warrants		46,773	492,279	-	(71,323)	-	-	467,729	-	467,729
Issue of ordinary shares for cash		46,850	421,650	-	-	-	-	468,500	-	468,500
Share issue cost		-	(26,175)	-	-	-	-	(26,175)	-	(26,175)
Cancellation of options by forfeiture		-	-	-	(79,878)	-	79,878	-	-	-
Recognition of share-based payment		-	-	-	265,301	-	-	265,301	-	265,301
Non-controlling interest		-	-	-	-	-	-	-	299,960	299,960
Transactions with owners		93,623	887,754	-	114,100	-	79,878	1,175,355	299,960	1,475,315
Loss for the period		-	-	-	-	-	(934,273)	(934,273)	(15,379)	(949,652)
Exchange differences on translation of foreign operations		-	-	-	-	58,411	-	58,411	13,823	72,234
Total comprehensive income		-	-	-	-	58,411	(934,273)	(875,862)	(1,556)	(877,418)
Balance at 31 December 2011		676,969	11,740,075	7,025,483	3,878,093	(668,499)	(20,335,117)	2,317,004	298,404	2,615,408

		Share capital	Share premium	Deferred shares	Capital redemption and other reserves	Foreign currency translation reserve	Accumulated losses	Total attributable to owners of parent	Non-controlling interest	Total
		£	£	£	£	£	£	£	£	£
Balance at 1 January 2012		676,969	11,740,075	7,025,483	3,878,093	(668,499)	(20,335,117)	2,317,004	298,404	2,615,408
Issue of ordinary shares for cash		288,500	2,596,500	-	-	-	-	2,885,000	-	2,885,000
Recognition of share-based payment					66,690			66,690		66,690
Transactions with owners		288,500	2,596,500	-	66,690	-	-	2,951,690	-	2,951,690
Loss for the period		-	-	-	-	-	(1,331,700)	(1,331,700)	(26,897)	(1,358,597)
Exchange differences on translation of foreign operations		-	-	-	-	13,061	-	13,061	(12,250)	811
Total comprehensive income		-	-	-	-	13,061	(1,331,700)	(1,318,639)	(39,147)	(1,357,786)
Balance at 31 December 2012		965,469	14,336,575	7,025,483	3,944,783	(655,438)	(21,666,817)	3,950,055	259,257	4,209,312

Eurasia Mining Plc.

(Company number 3010091)

Consolidated statement of cash flows

For the year ended 31 December 2012

	Note	Year to 31 December 2012	Year to 31 December 2011
		£	£
Cash flows from operating activities
Loss for the period		(1,358,597)	(949,652)
Adjustments for:
Depreciation of non-current assets		372	1,039
Share of results from equity accounted investments		-	29,625
Loss on revised period of repayment of the loan made to joint venture		651,006	-
Finance income		(9,025)	-
Net foreign exchange loss		22,788	61,531
Expense recognised in income statement in respect of equity-settled share-based payments		66,690	265,301
		(626,766)	(592,156)
Movement in working capital
(Increase)/decrease in inventories		(1,242)	550
(Increase)/decrease in trade and other receivables		(26,215)	12,184
Decrease in trade and other payables		(19,186)	(19,427)
Cash outflow from operations		(673,409)	(598,849)
Net cash used in operating activities		(673,409)	(598,849)
Cash flows from investing activities
Interest received		9,025	-
Advanced to joint venture		(655,398)	(1,006,261)
Advanced to acquire interest in uranium project		-	(389,392)
Purchase of property, plant and equipment		(572)	(513)
Contributed by non-controlling party		-	299,960
Net cash used in investing activities		(646,945)	(1,096,206)
Cash flows from financing activities
Proceeds from issue of equity shares		2,885,000	910,054
Net cash proceeds from financing activities		2,885,000	910,054
Net increase/(decrease) in cash and cash equivalents		1,564,646	(785,001)
Effects of exchange rate changes on the balance of cash held in foreign currencies		(324)	12,463
Cash and cash equivalents at beginning of period		171,098	943,636
Cash and cash equivalents at end of period		1,735,420	171,098

Notes to the consolidated financial statements

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.

2          Going concern

The directors have a reasonable expectation based on a review of the Group's budgets, plans, cash flow forecasts and the ability to flex their forecast spending to suit prevailing circumstances, that the Group is a going concern for a period of at least 12 months from the date of signing the financial statements.

3          Segmental information

During the year under review Management identified the group as one operating segment being investing in the joint venture which undertakes the exploration for and development of platinum group metals, gold and other minerals in Russia. This one segment is monitored and strategic decisions are made based upon it and other non-financial data collated from the on-going exploration activities.

The formats of financial reports that are reported to the Chief Operating Decision Maker are consistent with those presented in the annual financial statements.

The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2012 or 2011 but is derived from those accounts. Statutory accounts for 2011 have been delivered to the registrar of companies, and those for 2012 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The full accounts and the Notice of AGM are available to download from www.eurasiamining.co.uk and will be posted to shareholders on the 3rd June 2013.

The Annual General Meeting of the Company will be held on 26 June 2013 at 11:00 at The East India Club, 16 St James's Square, London SW1Y 4LH.

For more information please contact:

Eurasia Mining plc

Christian Schaffalitzky / Michael de Villiers Tel: [phone]

Katy Mitchell, WH Ireland Limited Tel: [phone]

 

END

 

 

FR UKRUROSAVUAR