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: +44 (0) 207 932 0418

Katy Mitchell, WH Ireland Limited Tel: +44 (0) 161 832 2174


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