Half Yearly Report

RNS Number : 2764T

Eurasia Mining PLC

24 September 2010

 



Eurasia Mining plc

("Eurasia" or the "Company")

Interim results for the 6 months ended 30 June 2010

Chairman's statement

For the first six months of 2010, your company has been working on finalizing the mining licence for the West Kytlim project in the Urals in Russia. We have been making steady progress and hope that the process will be concluded in the nearest future. Management believe the delay is worthwhile if it allows us to achieve the best outcome for the years of planned platinum production ahead of us.

 At our Kola projects, drilling on the newly identified mineralized zone at Monchetundra commenced in September. Results from this programme will be released as they become available. If successful, a new resource here would add considerably to the PGM potential of this licence area. 

 The Company is continuing to look at a new pipeline of projects in Russia while keeping abreast of developments in Russian mining and licensing legislation. The outlook for mineral exploration and development continues to look positive and the board is evaluating new opportunities in this environment. The Board looks forward to delivering further updates on project opportunities and existing licenses over the next few months. 

Dr. Michael Martineau

Chairman

For more information please contact:

Eurasia Mining    

Christian Schaffalitzky/ Michael de Villiers    

Tel [phone]

W H Ireland Ltd  

Katy Mitchell       

Tel [phone]

Condensed consolidated statement of comprehensive income

	Note	6 months to	12 months to	6 months to
		30 June	31 December	30 June
		2010	2009	2009
		(unaudited)	(audited)	(unaudited)
Impairment loss	4	-	(1,116,921)	(1,116,921)
Administrative costs		(256,953)	(724,824)	(380,787)
Result from equity accounted investments	5	(195)	31	341
Finance income		-	49	37
Finance costs		-	(191,170)	(191,170)
Other financial results		69,933	(223,443)	(333,246)
Loss before tax		(187,215)	(2,256,278)	(2,021,746)
Income tax expense		-	-	-
Loss for the period		(187,215)	(2,256,278)	(2,021,746)
Other comprehensive (loss)/income:
Exchange differences on translation of foreign operations		(78,029)	46,273	135,772
Other comprehensive (loss)/income for the period, net of tax		(78,029)	46,273	135,772
Total comprehensive loss for the period		(265,244)	(2,210,005)	(1,885,974)
Loss for the period attributable to:
Owners of the parent		(187,215)	(2,159,149)	(1,919,209)
Non-controlling interest		-	(97,129)	(102,537)
		(187,215)	(2,256,278)	(2,021,746)
Total comprehensive loss for the period attributable to:
Owners of the parent		(265,244)	(2,106,417)	(1,628,657)
Non-controlling interest		-	(103,588)	(257,317)
		(265,244)	(2,210,005)	(1,885,974)
Basic and diluted loss (pence per share)		(0.08)	(0.92)	(0.87)

Condensed consolidated statement of financial position

	Note	At 30 June 2010	At 31December 2009	At 30 June 2009
		(unaudited)	(audited)	(unaudited)
ASSETS
Non-current assets
Property, plant and equipment		25,735	26,345	26,605
Investments in equity accounted investees	5	20,929	35,003	19,495
Other financial assets		617,832	262,766	118,676
Total non-current assets		664,496	324,114	164,776
Current assets
Inventories		1,277	1,375	611
Trade and other receivables		153,820	26,025	28,350
Cash and bank balances		87,416	137,757	364,664
Total current assets		242,513	165,157	393,625
Total assets		907,009	489,271	558,401
EQUITY
Capital and reserves
Issued capital	6	16,943,580	16,240,544	15,581,693
Reserves	7	2,962,223	3,077,523	3,244,014
Accumulated losses		(19,160,458)	(18,973,243)	(18,746,714)
Equity attributable to equity holders of the parent		745,345	344,824	78,993
Non-controlling interest		-	-	-
Total equity		745,345	344,824	78,993
LIABILITIES
Current liabilities
Trade and other payables		161,664	144,447	479,408
Total current liabilities		161,664	144,447	479,408
Total liabilities		161,664	144,447	479,408
Total equity and liabilities		907,009	489,271	558,401

Condensed statement of changes in equity

for the six months ended 30 June 2009

		Attributable to owners of the parent
	Note	Share capital	Share premium	Deferred shares	Other reserves	Translation reserve	Accumulated losses	Total attributable to owners of parent	Non-controlling interest	Total equity
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
Share capital restructure	6	(7,025,483)	-	7,025,483	-	-	-	-	-	-
Issue of share capital	6	254,184	1,238,100	-	-	-	-	1,492,284	-	1,492,284
Recognition of equity component of convertible loan notes	7	-	-	-	21,726	-	-	21,726	-	21,726
Utilised equity component of convertible loan notes on conversion	7	-	-	-	(120,527)	-	-	(120,527)	-	(120,527)
Reversal of un-used equity component of convertible loan notes	7	-	-	-	(44,868)	-	44,868	-	-	-
Reversal of share-based payment reserve	7	-	-	-	(12,574)	-	-	(12,574)	-	(12,574)
Setting off minority shareholder loan									97,135	97,135
Transaction with owners		(6,771,299)	1,238,100	7,025,483	(156,243)	-	44,868	1,380,909	97,135	1,478,044
Loss for the period		-	-	-	-	-	(1,919,209)	(1,919,209)	(102,537)	(2,021,746)
Other comprehensive income
Exchange differences on translation of foreign operations		-	-	-	-	133,225	-	133,225	2,547	135,772
Total comprehensive loss for the period ended 30 June 2009		-	-	-	-	133,225	(1,919,209)	(1,785,984)	(99,990)	(1,885,974)
Balance at 30 June 2009		297,561	8,258,649	7,025,483	3,853,931	(609,917)	(18,746,714)	78,993	-	78,993

Condensed statement of changes in equity

for the six months ended 30 June 2010

		Attributable to owners of the parent
	Note	Share capital	Share premium	Deferred shares	Other reserves	Translation reserve	Accumulated losses	Total attributable to owners of parent	Non-controlling interest	Total equity
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 share capital	6	68,107	634,929	-	-	-	-	703,036	-	703,036
Reversal of share-based payment reserve	7	-	-	-	(37,271)	-	-	(37,271)	-	(37,271)
Transaction with owners		68,107	634,929	-	(37,271)	-	-	665,765	-	665,765
Loss for the period							(187,215)	(187,215)	-	(187,215)
Other comprehensive loss
Exchange differences on translation of foreign operations		-	-	-	-	(78,029)	-	(78,029)	-	(78,029)
Total comprehensive loss for the period ended 30 June 2010		-	-	-	-	(78,029)	(187,215)	(265,244)	-	(265,244)
Balance at 30 June 2010		424,444	9,493,653	7,025,483	3,730,662	(768,439)	(19,160,458)	745,345	-	745,345

Condensed consolidated statement of cash flows

		6 months to	12 months to	6 months to
		30 June	31 December	30 June
		2010	2009	2009
		(unaudited)	(audited)	(unaudited)
Cash flows from operating activities
Loss for the period		(187,215)	(2,256,278)	(2,021,746)
Adjustments for:
-       Depreciation and amortisation of non-current assets:		-	-	-
-       Fixed assets		797	2,239	1,236
-       Gain/(loss) on sale or disposal of property, plant and equipment		-	(129)	(129)
-       Impairment of intangible assets recognised in profit or loss		-	1,116,921	1,116,921
-       Share of loss/(profit) of associates		195	(31)	(341)
-       Net foreign exchange (profit)/loss		(69,933)	223,572	333,375
-       Investment loss/(profit)		-	(49)	(37)
-       Finance costs		-	191,170	191,170
-       Costs recognised in profit or loss in respect of equity-settled share-based payments		-	17,426	17,426
		(256,156)	(705,159)	(362,125)
Movements in working capital
Decrease/(increase) in inventories		98	(6)	758
Increase in trade and other receivables		(127,795)	(740)	(3,054)
Increase/(decrease) in trade and other payables		16,590	(430,673)	(97,485)
Cash used in operations		(367,263)	(1,136,578)	(461,906)
Interest paid		-	(9,679)	(9,679)
Net cash used in operating activities		(367,263)	(1,146,257)	(471,585)
Cash flows from investing activities
Amounts advanced to related parties		(348,043)	(139,694)	-
Payments for property, plant and equipment		-	(971)	(841)
Payments for other intangible assets		-	(5,058)	(5,058)
Proceeds from disposal of property, plant and equipment		-	609	609
Interest received		-	49	37
Net cash used in investing activities		(348,043)	(145,065)	(5,253)
Cash flows from financing activities
Proceeds from issues of equity shares		665,765	586,264	-
Proceeds from issue of convertible loan notes		-	247,500	247,500
Net cash generated by financing activities		665,765	833,764	247,500
Net decrease in cash and cash equivalents		(49,541)	(457,558)	(229,338)
Effects of exchange rate changes on the balance of cash held in foreign currencies		(800)	994	(319)
Cash and cash equivalents at the beginning of period		137,757	594,321	594,321
Cash and cash equivalents at the end of the period		87,416	137,757	364,664

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2010

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.

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 2009, 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 qualified. The report did not contain a statement under Section 498(2) of the Companies Act 2006.

2. Basis of preparation

The Group prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) ,as endorsed by the European Union (EU). These condensed consolidated interim financial statements for the period ended 30 June 2010 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 2009.

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

The Interim Financial Statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2009, except for the adoption of the following standards as of 1 January 2010:

- IFRS 3 Business Combinations (Revised 2008);
- IAS 27 Consolidated and Separate Financial Statements (Revised 2008);
- Improvements to IFRSs 2009.

Adoption of these standards would not have a significant effect on the current or prior periods.

4. Additions and disposals of intangible assets

		30 June 2010	31 December 2009	30 June 2009
		£	£	£
Net book value at the beginning of period		-	1,272,982	1,272,982
Additions		-	5,058	5,058
Exchange differences		-	(161,119)	(161,119)
Impairment loss		-	(1,116,921)	(1,116,921)
Net book value at the end of period		-	-	-

5. Investments in equity accounted investees

Equity accounted investees represent (i) 50% interests in a Urals Alluvial Platinum Limited (the "UAP") group and (ii) a 20% direct interest in certain companies, which are in turn 80% owned by the UAP. By arrangements between the parties the Company does not have the power to exert control in proportion to its total holding in those companies and therefore the 20% interest is being accounted for as an interest in associates.

Net book value of investments in joint venture is nil (2009 - nil)

		30 June 2010	31 December 2009	30 June 2009
		£	£	£
Investments in associates
Net book value at the beginning of period		35,003	50,498	50,498
Group's recognised share of (loss)/profit		(195)	31	341
Exchange differences		(13,879)	(15,526)	(31,344)
		20,929	35,003	19,495
Net book value at the end of period		20,929	35,003	19,495

6. Share capital

		30 June 2010	31 December 2009	30 June 2009
Issued ordinary shares with a nominal value of 0.1p:
Number		424,443,825	356,337,458	297,560,964
Nominal value (£)		424,444	356,337	297,561
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 attached to them the following rights and restrictions:
- 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;
- 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.

The increase in the Company's issued share capital during the reporting period occurred as follows:

Ordinary shares		Number of shares	Share capital	Share premium
			£	£
Balance at 1 January 2010		356,337,458	356,337	8,858,724
Exercise of warrants		55,106,367	55,107	533,229
Share placing for cash		13,000,000	13,000	117,000
Cost of issue of shares		-	-	(15,300)
Balance at 30 June 2010		424,443,825	424,444	9,493,653
Deferred shares		Number of deferred shares	Deferred share capital
			£
Balance at 1 January and 30 June 2010		143,377,203	7,025,483

7. Reserves

		30 June 2010	31 December 2009	30 June 2009
		£	£	£
Capital redemption reserve		3,539,906	3,539,906	3,539,906
Foreign currency translation reserve		(768,439)	(690,410)	(609,917)
Share-based payment reserve		190,756	228,027	314,025
		2,962,223	3,077,523	3,244,014

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 share-based payments reserve represents (i) a reserve arising on the grant of share options to employees under the employee share option plan, (ii) a reserve arising on the grant of warrants under the terms of professional service agreements and (iii) a reserve arising on the grant of warrants under the terms of an issue of convertible loan notes.

 

END

 

 

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