Half Yearly Report

RNS Number : 9004O

Eurasia Mining PLC

26 September 2013

 



Eurasia Mining plc

Interim report

for the six months ended

30 June 2013

Chairman's Statement 

In the six months to June 2013, the Company completed a major expansion study for the West Kytlim project in the Urals, with a view to developing a larger mining operation once a production licence has been granted.

At Kola follow up drilling at West Nittis on the Monchetundra Licence confirmed the presence of high grade PGM mineralization for detailed appraisal. 

West Kytlim 

Drilling continued over the period and added further to the platinum resources in the main river complex of the Tylai-Kosvinsky Placer. The results of this work culminated in the submission of a new Russian standards compliant report providing technical and economic justification for the approval of expanded reserves. The associated economic calculations in this reserves approval application demonstrate the feasibility of production at West Kytlim from multiple sites concurrently. 

The development of near surface alluvial platinum deposits like West Kytlim, is attractive both technically and commercially. This is due to the ease of ore processing using readily available equipment and due to the resultant low capital and operating costs.

Monchetundra 

Drilling at West Nittis during the summer confirmed the presence of zones of mineralization which have an affinity with ore bodies elsewhere in the district that were mined for high grade nickel and copper veins between 1937 and 1971. The drilling confirmed that the zones remain open on strike and at depth. The potential for PGM deposits has been largely ignored until recent exploration.

Michael Martineau 

Chairman 

Condensed consolidated statement of comprehensive income

for the six months ended 30 June 2013

	Note	6 months to	12 months to	6 months to
		30 June	31 December	30 June
		2013	2012	2012
		(unaudited)	(audited)	(unaudited)
Revenue		10,055	62,223	37,581
Administrative costs		(273,646)	(756,051)	(317,312)
Loss on revised period of repayment of the loan made to joint venture	5	(136,152)	(651,006)
Finance income		2,444	9,025	1,556
Other financial results		115,943	(22,788)	23,061
Loss before tax		(281,356)	(1,358,597)	(255,114)
Income tax expense		-	-	-
Loss for the period		(281,356)	(1,358,597)	(255,114)
Other comprehensive (loss)/income:
Exchange differences on translation of foreign operations		(84,435)	811	(29,117)
Other comprehensive (loss)/income for the period, net of tax		(84,435)	811	(29,117)
Total comprehensive loss for the period		(365,791)	(1,357,786)	(284,231)
Loss for the period attributable to:
Owners of the parent		(277,707)	(1,331,700)	(216,372)
Non-controlling interest		(3,649)	(26,897)	(1,067)
		(281,356)	(1,358,597)	(217,439)
Total comprehensive loss for the period attributable to:
Owners of the parent		(378,880)	(1,318,639)	(280,096)
Non-controlling interest		13,089	(39,147)	(4,135)
		(365,791)	(1,357,786)	(284,231)
Basic and diluted loss (pence per share)		(0.03)	(0.17)	(0.03)

Condensed consolidated statement of financial position

as at 30 June 2013

	Note	At 30 June	At 31 December	At 30 June
		2013	2012	2012
		(unaudited)	(audited)	(unaudited)
ASSETS
Non-current assets
Property, plant and equipment	4	26,679	24,876	24,278
Other financial assets	5	2,880,071	2,526,665	2,736,353
Total non-current assets		2,906,750	2,551,541	2,760,631
Current assets
Inventories		1,428	1,618	291
Trade and other receivables		92,404	58,434	47,975
Cash and bank balances		998,448	1,735,420	2,528,607
Total current assets		1,092,280	1,795,472	2,576,873
Total assets		3,999,030	4,347,013	5,337,504
EQUITY
Capital and reserves
Issued capital	6	22,327,527	22,327,527	22,327,527
Reserves	7	3,188,172	3,289,345	3,183,545
Accumulated losses		(21,944,524)	(21,666,817)	(20,589,164)
Equity attributable to equity holders of the parent		3,571,175	3,950,055	4,921,908
Non-controlling interest		284,722	259,257	294,269
Total equity		3,855,897	4,209,312	5,216,177
LIABILITIES
Current liabilities
Trade and other payables		143,133	137,701	121,327
Total current liabilities		143,133	137,701	121,327
Total liabilities		143,133	137,701	121,327
Total equity and liabilities		3,999,030	4,347,013	5,337,504

Condensed statement of changes in equity

for the six months ended 30 June 2012

		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 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 share capital	6	288,500	2,596,500	-	-	-	-	2,885,000	-	2,885,000
Transaction with owners		288,500	2,596,500	-	-	-	-	2,885,000	-	2,885,000
Loss for the period							(254,047)	(254,047)	(1,067)	(255,114)
Other comprehensive loss
Exchange differences on translation of foreign operations		-	-	-	-	(26,049)	-	(26,049)	(3,068)	(29,117)
Total comprehensive income		-	-	-	-	(26,049)	(254,047)	(280,096)	(4,135)	(284,231)
Balance at 30 June 2012		965,469	14,336,575	7,025,483	3,878,093	(694,548)	(20,589,164)	4,921,908	294,269	5,216,177

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 consolidated statement of cash flows

for the six months ended 30 June 2013

		6 months to	12 months to	6 months to
		30 June	31 December	30 June
		2013	2012	2012
		(unaudited)	(audited)	(unaudited)
Cash flows from operating activities
Loss for the period		(281,356)	(1,358,597)	(255,114)
Adjustments for:
Depreciation and amortisation of non-current assets:
- Fixed assets		291	372	193
Loss on revised period of repayment of the loan made to joint venture		136,152	651,006	-
Net foreign exchange (profit)/loss		(115,943)	22,788	(23,061)
Investment revenue recognised in profit and loss		(2,444)	(9,025)	(1,556)
Costs recognised in profit or loss in respect of equity-settled share-based payments		-	66,690	-
		(263,300)	(626,766)	(279,538)
Movements in working capital
Decrease/(increase) in inventories		190	(1,242)	85
Increase in trade and other receivables		(34,068)	(26,215)	(16,109)
Increase/(decrease) in trade and other payables		4,500	(19,186)	(35,787)
Cash used in operations		(292,678)	(673,409)	(331,349)
Net cash used in operating activities		(292,678)	(673,409)	(331,349)
Cash flows from investing activities
Advanced to joint venture		(459,028)	(655,398)	(197,318)
Contributed by non-controlling party		12,376	-	-
Payments for property, plant and equipment		(2,202)	(572)	(165)
Interest received		2,444	9,025	1,556
Net cash used in investing activities		(446,410)	(646,945)	(195,927)
Cash flows from financing activities
Proceeds from issues of equity shares		-	2,885,000	2,885,000
Net cash generated by financing activities		-	2,885,000	2,885,000
Net (decrease)/increase in cash and cash equivalents		(739,088)	1,564,646	2,357,724
Effects of exchange rate changes on the balance of cash held in foreign currencies		2,116	(324)	(215)
Cash and cash equivalents at the beginning of period		1,735,420	171,098	171,098
Cash and cash equivalents at the end of the period		998,448	1,735,420	2,528,607

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2013

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 2011, 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 2013 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 2012.

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 2012.

4. Additions and disposals of property, plant and equipment

		30 June	31 December	30 June
		2013	2012	2012
		£	£	£
Net book value at the beginning of period		24,876	24,598	24,598
Additions		2,202	572	165
Depreciation		(291)	(372)	(193)
Exchange differences		(108)	78	(292)
Net book value at the end of period		26,679	24,876	24,278

5. Other financial assets

		30 June	31 December	30 June
		2013	2012	2012
Loan to joint venture		2,484,279	2,154,929	2,350,950
Advances to acquire interest in uranium project		395,792	389,392	385,403
		2,880,071	2,544,321	2,736,353

Loans to joint venture and subsidiaries are 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 2012 the Group recognised that the loan advanced to the joint venture were 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 and the discount of £136,152 has been recognised in the period (£651,006 in 2012) as an investment into joint venture, which then has been written off to profit and loss. 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 2013 is £3,271,437.

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
		2013	2012	2012
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
		2013	2012	2012
		£	£	£
Capital redemption reserve		3,539,906	3,539,906	3,539,906
Foreign currency translation reserve		(756,611)	(655,438)	(694,548)
Share-based payment reserve		404,877	404,877	338,187
		3,188,172	3,289,345	3,183,545

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.

 

END

 

 

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