Half Yearly Report

RNS Number : 9237N

Eurasia Mining PLC

09 September 2011

 



Eurasia Mining plc

("Eurasia" or the "Company")

Interim Results for the Six Months ended 20 June 2011

CHAIRMAN'S STATEMENT

Over the last six months, progress has been made at Eurasia's West Kytlim alluvial platinum project and, as announced earlier today, since the end of the period under review the authorities have approved two further areas of additional reserves. The Company still awaits approval for its existing application for a production licence at West Kytlim, but as a result of this delay, it may be possible to combine the two new areas into the existing application dependent on the relevant authorities involved in the approval process.

Apart from exploration drilling at West Kytlim, work advanced on the Kamushanovskoye uranium project in Kyrgyzstan, where, as announced on 14 March 2011, Eurasia has agreed to co-fund a Bankable Feasibility Study. Eurasia established a new subsidiary company, Energy Resources Asia Limited, to separately finance this project. Work is proceeding on schedule with approximately US$602,000 invested to date, and further financing planned.

Finally, the Company is continuing to evaluate new opportunities, both in Russia and the former Soviet Union. The Board looks forward to delivering further updates on project opportunities and our existing licenses over the coming months.

Michael Martineau

Chairman

For more information please contact:

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

Dr. Michael Martineau

Chairman

Condensed consolidated statement of comprehensive income

for the six months ended 30 June 2011

	Note	6 months to	12 months to	6 months to
		30 June	31 December	30 June
		2011	2010	2010
		(unaudited)	(audited)	(unaudited)
Revenue		23,386	-	-
Administrative costs		(330,931)	(558,918)	(256,953)
Result from equity accounted investments	5	(114)	(353)	(195)
Other financial results		(81,554)	36,716	69,933
Loss before tax		(389,213)	(522,555)	(187,215)
Income tax expense		-	-	-
Loss for the period		(389,213)	(522,555)	(187,215)
Other comprehensive (loss)/income:
Exchange differences on translation of foreign operations		117,067	(36,500)	(78,029)
Other comprehensive income/(loss) for the period, net of tax		117,067	(36,500)	(78,029)
Total comprehensive loss for the period		(272,146)	(559,055)	(265,244)
Basic and diluted loss (pence per share)		(0.06)	(0.12)	(0.08)

Condensed consolidated statement of financial position

As at 30 June 2011

	Note	At 30 June	At 31 December	At 30 June
		2010	2009	2009
		(unaudited)	(audited)	(unaudited)
ASSETS
Non-current assets
Property, plant and equipment	4	25,112	25,166	25,735
Investments in equity accounted investees	5	72,144	31,485	20,929
Other financial assets	6	1,665,254	1,148,586	617,832
Total non-current assets		1,762,510	1,205,237	664,496
Current assets
Inventories		669	926	1,277
Trade and other receivables		260,336	44,803	153,820
Cash and bank balances		317,529	943,636	87,416
Total current assets		578,534	989,365	242,513
Total assets		2,341,044	2,194,602	907,009
EQUITY
Capital and reserves
Issued capital	7	18,938,115	18,461,150	16,943,580
Reserves	8	3,070,705	3,037,083	2,962,223
Accumulated losses		(19,790,057)	(19,480,722)	(19,160,458)
Total equity		2,218,763	2,017,511	745,345
LIABILITIES
Current liabilities
Trade and other payables		122,281	177,091	161,664
Total current liabilities		122,281	177,091	161,664
Total liabilities		122,281	177,091	161,664
Total equity and liabilities		2,341,044	2,194,602	907,009

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
Balance at 1 January 2010		356,337	8,858,724	7,025,483	3,767,933	(690,410)	(18,973,243)	344,824
Issue of share capital	7	68,107	634,929	-	-	-	-	703,036
Reversal of share-based payment reserve	8	-	-	-	(37,271)	-	-	(37,271)
Transaction with owners		68,107	634,929	-	(37,271)	-	-	665,765
Loss for the period		-	-	-	-	-	(187,215)	(187,215)
Other comprehensive income
Exchange differences on translation of foreign operations		-	-	-	-	(78,029)	-	(78,029)
Total comprehensive loss for the period ended 30 June 2010		-	-	-	-	(78,029)	(187,215)	(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

Condensed statement of changes in equity

For the six months ended 30 June 2011

		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
Balance at 1 January 2010		583,346	10,852,321	7,025,483	3,763,993	(726,910)	(19,480,722)	2,017,511
Issue of share capital on exercise of warrants	7	40,564	436,401	-	(71,323)	-	-	405,642
Reversal of warrant valuation reserve on cancellation of warrants					(79,878)		79,878
Recognition of share-based payment	8	-	-	-	67,756	-	-	67,756
Transaction with owners		40,564	436,401	-	(83,445)	-	79,878	473,398
Loss for the period							(389,213)	(389,213)
Other comprehensive loss
Exchange differences on translation of foreign operations		-	-	-	-	117,067	-	117,067
Total comprehensive loss for the period ended 30 June 2010		-	-	-	-	117,067	(389,213)	(272,146)
Balance at 30 June 2010		623,910	11,288,722	7,025,483	3,680,548	(609,843)	(19,790,057)	2,218,763

Condensed consolidated statement of cash flows

for the six months ended 30 June 2011

		6 months to	12 months to	6 months to
		30 June	31 December	30 June
		2011	2010	2010
		(unaudited)	(audited)	(unaudited)
Cash flows from operating activities
Loss for the period		(389,213)	(522,555)	(187,215)
Adjustments for:
Depreciation and amortisation of non-current assets:
- Fixed assets		819	1,345	797
(Gain)/loss on disposal of investments		-	162	-
Share of loss of associates		114	353	195
Net foreign exchange loss/(profit)		81,554	(36,878)	(69,933)
Costs recognised in profit or loss in respect of equity-settled share-based payments		67,756	64,888	-
		(238,970)	(492,685)	(256,156)
Movements in working capital
Decrease in inventories		257	449	98
Increase in trade and other receivables		(215,245)	(18,778)	(127,795)
(Decrease)/increase in trade and other payables		(54,361)	32,317	16,590
Cash used in operations		(508,319)	(478,697)	(367,263)
Net cash used in operating activities		(508,319)	(478,697)	(367,263)
Cash flows from investing activities
Amounts advanced to related parties		(521,013)	(882,323)	(348,043)
Net cash used in investing activities		(521,013)	(882,323)	(348,043)
Cash flows from financing activities
Proceeds from issues of equity shares		405,642	2,166,854	665,765
Net cash generated by financing activities		405,642	2,166,854	665,765
Net (decrease)/increase in cash and cash equivalents		(623,690)	805,834	(49,541)
Effects of exchange rate changes on the balance of cash held in foreign currencies		(2,417)	45	(800)
Cash and cash equivalents at the beginning of period		943,636	137,757	137,757
Cash and cash equivalents at the end of the period		317,529	943,636	87,416

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2011

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 2010, 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 2011 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 2010.

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 2010.

4. Additions and disposals of property, plant and equipment

		30 June 2011	31 December 2010	30 June 2011
		£	£	£
Net book value at the beginning of period		25,166	26,345	26,345
Depreciation		(819)	(1,345)	(797)
Exchange differences		765	166	187
Net book value at the end of period		25,112	25,166	25,735

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 2011	31 December 2010	30 June 2011
		£	£	£
Investments in associates
Net book value at the beginning of period		35,003	50,498	35,003
Group's recognised share of (loss)/profit		(195)	31	(195)
Exchange differences		(13,879)	(15,526)	(13,879)
		20,929	35,003	20,929
Net book value at the end of period		20,929	35,003	20,929

6. Other financial assets

		30 June 2011	31 December 2010	30 June 2011
Loan to joint venture		1,665,254	1,148,586	617,832
		1,665,254	1,148,586	617,832

Loan to joint venture is provided on the interest free basis with no fixed date of repayment. Recoverability of the loan is dependent on the borrower's ability to transform into cash generating unit through discovery of economically recoverable reserves and their development into profitable production.

7. Share capital

		30 June 2011	31 December 2010	30 June 2011
Issued ordinary shares with a nominal value of 0.1p:
Number		623,910,034	583,345,785	424,443,825
Nominal value (£)		623,910	583,346	424,444
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.

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		583,345,785	583,346	10,852,321
Exercise of warrants		40,564,249	40,564	436,401
Balance at 30 June 2011		623,910,034	623,910	11,288,722

8. Reserves

		30 June	31 December	30 June
		2011	2010	2010
		£	£	£
Capital redemption reserve		3,539,906	3,539,906	3,539,906
Foreign currency translation reserve		(609,843)	(726,910)	(768,439)
Share-based payment reserve		140,642	224,087	190,756
		3,070,705	3,037,083	2,962,223

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 capital raising.

 

END

 

 

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