Half Yearly Report

RNS Number : 6002Q
Eurasia Mining PLC
02 September 2014
 



Eurasia Mining plc

Interim Results

for the six months ended

30 June 2014

 

Chairman's Statement 

I am pleased to be able to report on very important progress made by Eurasia Mining plc ("Eurasia" or the "Company") over the past six months, with the agreement to increase our equity share in our Russian projects and the advancement of the permitting progress of the mining project at West Kytlim in the Urals. 

Joint Venture with Anglo Platinum 

Eurasia agreed to acquire the remaining 50 percent of Urals Alluvial Platinum Limited (the "UAP") that it did not already own from Anglo American Platinum Limited. UAP is the operating company for both the West Kytlim project in the Urals and the Monchetundra project in the Kola Peninsula.  As a result, Eurasia will hold 75% equity in West Kytlim and 100% in Monchetundra. The agreement is conditional on South African exchange control approval. 

I believe the timing of this transaction is of great benefit to the Company as production becomes closer to realization. Eurasia has been executing and funding a work programme on its own on both projects since 2009. I believe our work has produced attractive assets which, particularly in the case of West Kytlim, are nearing production and it is therefore an excellent outcome that we should enter this next phase with double the original interest in the projects. Eurasia's increased equity interest in UAP should also provide greater flexibility to bring in new partners or to restructure the holdings for improved efficiency of future operations, should the Company wish to do so. 

West Kytlim 

Exploration work has completed on the West Kytlim licence and work is now concentrated on the regulatory steps necessary to allow mining to commence. Earlier this year we announced a substantial uplift in approved reserves, for which we have made application for a Discovery Certificate and are hopeful that this will be awarded in the very near future. Following its receipt the Company will immediately lodge an application for a Production Licence; preparatory work for this has already been completed. 



 

 

Monchetundra 

After several years of exploration the Company is now in the process of 3D modeling of two priority open pit targets and is putting together a feasibility study of these 2 targets.

 

Michael Martineau 

Chairman 



 

Condensed consolidated statement of comprehensive income

for the six months ended 30 June 2014


Note

6 months to 30 June

2014

12 months to

31 December

2013

6 months to 30 June

2013



(unaudited)

(audited)

(unaudited)






Revenue


 3,640

 16,355

 10,055

Administrative costs


 (244,397)

 (508,340)

 (273,646)

Loss on revised period of repayment of
the loan made to joint venture

5

 -

 (270,178)

 (136,152)

Finance income


 258

 2,908

 2,444

Other financial results


 (43,201)

 8,916

 115,943






Loss before tax


 (283,700)

 (750,339)

 (281,356)






Income tax expense 


 -

 -

 -






Loss for the period


 (283,700)

 (750,339)

 (281,356)






Other comprehensive (loss)/income:





Items that will not be reclassified subsequently to
profit and loss:





NCI share of foreign exchange differences on

translation of foreign operations


 (8,305)

 (5,371)

16738

Items that will be reclassified subsequently to
profit and loss:





Available for sale financial assets


 -

 -

 -

 - current year gain/(losses)


 (7,108)

 -

 -

Parents share of foreign exchange differences on translation
of foreign operations


 33,857

 (15,057)

 (101,173)






Other comprehensive income/(loss) for the period, net of tax


 18,444

 (20,428)

 (84,435)






Total comprehensive loss for the period


 (265,256)

 (770,767)

 (365,791)






Loss for the period attributable to:





Owners of the parent


 (269,043)

 (746,024)

 (277,707)

Non-controlling interest


 (74)

 (4,315)

 (3,649)



 (269,117)

 (750,339)

 (281,356)






Total comprehensive loss for the period attributable to:





Owners of the parent


 (242,294)

 (761,081)

 (378,880)

Non-controlling interest


 (8,379)

 (9,686)

 13,089



 (265,256)

 (770,767)

 (365,791)






Basic and diluted loss (pence per share)


 (0.03)

 (0.08)

 (0.03)

 



 

Condensed consolidated statement of financial position

as at 30 June 2014


Note

At 30 June

2014

At 31 December

2013

At 30 June

2013


(unaudited)

(audited)

(unaudited)

ASSETS





Non-current assets





Property, plant and equipment

4

 24,601

 25,558

 26,679

Other financial assets

5

 3,356,311

 3,114,037

 2,880,071






Total non-current assets


 3,380,912

 3,139,595

 2,906,750






Current assets





Inventories


 781

 968

 1,428

Trade and other receivables


 41,598

 72,610

 92,404

Other financial assets


 16,142

 -

 -

Cash and bank balances


 77,180

 361,905

 998,448



Total current assets


 135,701

 435,483

 1,092,280






Total assets


 3,516,613

 3,575,078

 3,999,030






EQUITY





Capital and reserves





Issued capital

6

 22,327,527

 22,327,527

 22,327,527

Reserves

7

 3,295,395

 3,268,646

 3,188,172

Accumulated losses


 (22,690,825)

 (22,407,199)

 (21,944,524)






Equity attributable to equity holders of the parent


 2,932,097

 3,188,974

 3,571,175

Non-controlling interest


 253,568

 261,947

 284,722






Total equity


 3,185,665

 3,450,921

 3,855,897






LIABILITIES





Current liabilities





Trade and other payables


 330,948

 124,157

 143,133






Total current liabilities


 330,948

 124,157

 143,133






Total liabilities


 330,948

 124,157

 143,133






Total equity and liabilities


 3,516,613

 3,575,078

 3,999,030






 

 


Condensed statement of changes in equity

for the six months ended 30 June 2013



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 2013


 965,469

 14,336,575

 7,025,483

 3,944,783

 (655,438)

 (21,666,817)

 3,950,055

 259,257

 4,209,312












Contributed by non-controlling party


 -

 -

 -

 -

 -

 -

 -

 12,376

 12,376

Transaction with owners


 -

 -

 -

 -

 -

 -

 -

 12,376

 12,376












Loss for the period







 (277,707)

 (277,707)

 (3,649)

 (281,356)












Other comprehensive loss











Exchange differences on translation
of foreign operations


 -

 -

 -

 -

 (101,173)


 (101,173)

 16,738

 (84,435)

Total comprehensive income


 -

 -

 -

 -

 (101,173)

 (277,707)

 (378,880)

 13,089

 (365,791)


Balance at 30 June 2013


 965,469

 14,336,575

 7,025,483

 3,944,783

 (756,611)

 (21,944,524)

 3,571,175

 284,722

 3,855,897

 



 

Condensed statement of changes in equity

for the six months ended 30 June 2014



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 2014


 965,469

 14,336,575

 7,025,483

 3,939,141

 (670,495)

 (22,407,199)

 3,188,974

 261,947

 3,450,921












Loss for the period







 (283,626)

 (283,626)

 (74)

 (283,700)












Other comprehensive loss











Fair value loss on available for sale
financial assets





 (7,108)



 (7,108)


 (7,108)

Exchange differences on translation
of foreign operations


 -

 -

 -

 -

 33,857


 33,857

 (8,305)

 25,552

Total comprehensive income


 -

 -

 -

 (7,108)

 33,857

 (283,626)

 (256,877)

 (8,379)

 (265,256)


Balance at 30 June 2014


 965,469

 14,336,575

 7,025,483

 3,932,033

 (636,638)

 (22,690,825)

 2,932,097

 253,568

 3,185,665


Condensed consolidated statement of cash flows

for the six months ended 30 June 2014



6 months to

30 June

2014

12 months to

31 December

2013

6 months to

30 June

2013



(unaudited)

(audited)

(unaudited)

Cash flows from operating activities










Loss for the period


 (283,700)

 (750,339)

 (281,356)

Adjustments for:





Depreciation and amortisation of non-current assets:





- Fixed assets


 548

 839

 291

Loss on revised period of repayment of the
loan made to joint venture


 -

 270,178

 136,152

Net foreign exchange loss/(profit)


 43,201

 (8,916)

 (115,943)

Investment revenue recognised in profit and loss


 (258)

 (2,908)

 (2,444)








 (240,209)

 (491,146)

 (263,300)

Movements in working capital





Decrease in inventories


 187

 650

 190

Decrease/(increase) in trade and other receivables


 7,328

 (14,869)

 (34,068)

Increase/(decrease) in trade and other payables


 207,056

 (12,658)

 4,500






Cash used in operations


 (25,638)

 (518,023)

 (292,678)











Net cash used in operating activities


 (25,638)

 (518,023)

 (292,678)






Cash flows from investing activities





Advanced to joint venture


 (257,615)

 (867,735)

 (459,028)

Contributed by non-controlling party


 -

 12,376

 12,376

Payments for property, plant and equipment


 -

 (2,202)

 (2,202)

Interest received


 258

 2,908

 2,444






Net cash used in investing activities


 (257,357)

 (854,653)

 (446,410)











Net decrease in cash and cash equivalents


 (282,995)

 (1,372,676)

 (739,088)

Effects of exchange rate changes on the balance of
cash held in foreign currencies


 (1,730)

 (839)

 2,116






Cash and cash equivalents at the beginning of period


 361,905

 1,735,420

 1,735,420






Cash and cash equivalents at the end of the period


 77,180

 361,905

 998,448

 



 

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2014

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 2nd Floor, 85-87 Borough High Street, London SE1 1NH. 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 2013, 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 unqualified. 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 2014 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 2013.

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 Group's last annual financial statements for the year ended 31 December 2013.

4. Additions and disposals of property, plant and equipment



30 June

31 December

30 June



2014

2013

2013

 


£

£

£

Net book value at the beginning of period


 25,558

 24,876

 24,876

Additions


 -

 2,202

 2,202

Depreciation


 (548)

 (839)

 (291)

Exchange differences


 (409)

 (681)

 (108)






Net book value at the end of period


24,601

25,558

26,679

 



 

5. Other financial assets



30 June

31 December

30 June



2014

2013

2013






 Loan to joint venture


 3,002,817

 2,748,967

 2,484,279

 Advances to acquire interest in uranium project


 353,494

 365,070

 395,792








3,356,311

3,114,037

2,880,071

Loan to joint venture is provided by the Group on an interest free basis with no fixed date of repayment. The Group does not hold any collateral as security.

In prior periods the Group recognised that the loan advanced to the joint venture was not to be repaid within 12 months from the start of the platinum production mining licence for which is expected to be granted by authorities in Russia. Consequently the Group have fair valued the loan estimating the repayment of the loan based on cash flows due to be generated by the joint venture. The loan was discounted using NPV method. No discount has been recognised in the period (£270,178 within the comparative period of 2013). Actual repayment schedule and interest chargeable on the loan will be revised by the joint venture partners as soon as the production licence has been granted.

Undiscounted amount of the loan at 30 June 2014 is £3,809,026.

Advances to acquire interest in uranium project represent payment of $602,000 made in 2011 towards acquisition of 55% interest in the Kamushanovsky uranium project in Kyrgyzstan.

6. Share capital



30 June

31 December

30 June



2014

2013

2013






 Issued ordinary shares with a nominal value of 0.1p:










 Number


 965,468,701

 965,468,701

 965,468,701

 Nominal value (£)


 965,469

 965,469

 965,469






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 the following rights and restrictions attached to them:
- 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.



 

7. Reserves



30 June

31 December

30 June


2014

2013

2013



£

£

£

Capital redemption reserve


 3,539,906

 3,539,906

 3,539,906

Foreign currency translation reserve


 (636,638)

 (670,495)

 (756,611)

Share-based payment reserve


 399,235

 399,235

 404,877








 3,295,395

 3,268,646

 3,188,172

 

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 a reserve arising on the grant of share options to employees under the employee share option plan.


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