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Peter Hambro Mining (POG)

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Thursday 26 September, 2002

Peter Hambro Mining

Interim Results

Peter Hambro Mining PLC
26 September 2002



                              PETER HAMBRO MINING PLC
             Interim Results for the Six Months ended 30 June 2002


Peter Hambro Mining PLC ("PHM" or "The Group") today announces interim results
for the six months ended 30 June 2002.


Highlights:


Turnover and Profitability:

Turnover for the first six months was US$7.02 million based on gold sales during
the period, with a post-tax profit of $1.13 million.  Financial performance is
always stronger in the second half of the year due to the adverse winter
conditions in the Far East of Russia, which lower production rates in the first
half.


Mining rate doubled:

1.6 million cubic metres of material were moved, which compares with 0.8 million
cubic metres in the same period last year.


New plant in operation:

Production at the new plant started on 7 September 2002 and, at approximately
1,900   ounces per week, is in line with the expected start-up plan.  The plant
will increase gold recoveries from 53% to more than 92% as well as allowing
all-year gold production in the future.


Resources at Pioneer doubled:

Dalgeofizica, a Russia state mining consultancy, has produced a new, independent
assessment of the gold resource at Pioneer.  This shows Russian category C2 and
P1 + P2 resources of 3.70 million ounces, compared with the 1.5 million ounces
shown in the Admission document.


Pokrovskiy Rudnik ownership increase:

PHM's ownership of Pokrovskiy Rudnik has been increased to 75% and, subject to
Take-over Panel approval, will increase further to 97% by means of a share
exchange.


Titanium:

Advanced negotiations are underway with German Ferrostahl GMBH and Moscow-based
VnipiProm Technologie for the provision of a bankable feasibility study of
Olekminsky Rudnik's titanium exploration area.


Finance Availability:

Possibilities of debt finance from EBRC and RUR500 million underwritten bond
issue by Nikoil are under active consideration.

Commenting on the results, Peter Hambro, Chairman, said:

"The most important thing is that we have done exactly what we said we were
going to do.

The first gold from the new plant was produced in September 2002 as promised and
now we have all year round production at a 92% recovery rate.  Our Pokrovskiy
team has done a magnificent job.

It is good to know, too, that the resources of the Pioneer deposit, at more than
100 tons of gold (3.70 million ounces) will provide feed for many years to come.
This is especially important as our holdindg of Pokrovskiy Rudnik increases
from 75% to 97%.

I am pleased that this success has been recognised sufficiently to allow us to
attract debt finance in Russia and internationally.

We can now move forward with our plans for the Titanium deposit and examine the
other gold mining possibilities that we have identified in Amur and other
regions of Russia with confidence."


-Ends-


Enquiries:

Peter Hambro                                         020 7393 0102
Peter Hambro Mining

David Simonson/Nicola Davidson                       020 7606 1244
Merlin Financial                                     07711 7091 70


Report on the six months ended 30th June 2002

The directors have pleasure in making the first report to shareholders since the
company's shares were admitted to listing on AIM in April 2002.


Financial Results

The Interim Consolidated Accounts for the Company are attached to this report.
These should be read in conjunction with the accompanying notes.  These have
been prepared in collaboration with the Auditors, Moore Stephens, who have
assisted the Group in the translation of Russian accounts to UK GAAP.

The Profit and Loss Accounts shows a profit of US$1.13 million for the six
months to 30th June 2002.  Peter Hambro Mining Plc was only incorporated in
December 2001 and the group as previously constituted did not produce six month
figures to 30th June 2001.  The directors do not believe that the benefits of
producing pro-forma comparative figures to 30th June 2001 would justify the
costs involved.  Consequently, full year pro-forma figures from the Admission
Document (US$4.4 million) have been included for formal purposes.

The 6-month split of turnover in 2002 (US$7.02 million) is marginally higher
than in the first half of 2001.  It should be noted that the turnover represents
sales of gold for the first six months of the year and that this is
significantly less than 50% of the full year pro-forma turnover (US$23.72
million) but that this is usual, as the heaps emerge from cold winter
conditions.  As expected, short-term borrowings were increased to provide
working capital for winter operations.

It should be remembered that the consolidated profit for six months to the end
of June 2002 reflects only a 55.1% interest in JSC Pokrovskiy Rudnik's earnings
and that this interest was increased to 75% on 29th July 2002 (after the end of
the period) and is intended to be increased to 97% as soon as practicable.


Mining operations

In the first six months of 2002 1.6 million cubic metres of material were moved,
which compares with 0.8 million cubic metres in the same period last year.  This
increase in mining levels was necessary to build stocks for the new plant and to
make up for planned lower average grades in the ore mined.


New Resin-in-Pulp Plant

As forecast in the Admission Document, Pokrovskiy Rudnik commissioned the new
Resin-in-Pulp plant in July 2002 and, also as similarly forecast, the first gold
from this plant was produced on 7th September 2002.  This is a magnificent
achievement on the part of the Pokrovskiy Rudnik management team and it was most
gratifying that a delegation - made up of members of the Russian administration,
mining analysts from London and journalists from Moscow, the Amur Region and the
United Kingdom - was on site to witness this.

Since production from the plant began on 7th September, a total of 120 Kgs
(3,858 ounces) has been produced by the new plant as at 21st September.  This is
in line with the Group's expectations during the start up process.

Successful implementation of the resin-in-pulp process means that Pokrovskiy
Rudnik now has all year production with gold recoveries at more than 92%.  This
compares with last year's production from the seasonally affected heap-leach
which, in 2001, averaged a 53% recovery.

The ore treated by heap leach during the period was from a lower horizon than
that of the previous year and it was found that its characteristics called for
finer crushing and a longer residence time on the pads.  Now that the new plant
is in operation, the heap leach process will only be used in summer months to
treat the lowest grade material.


Reserves and Resources

Federal State Unitary Geophysical Enterprise "Dalgeofizika" has prepared an
updated ore resource statement on the Group's Pioneer deposit, 35km to the
northeast of Pokrovskiy.

Dalgeofizika has assessed three portions of the Pioneer strike, namely
Promezhutochnaya, Yuzhnaya and Bakhmut zones, together covering almost 3.2km of
the trend, to depths of between 60m and 380m from surface.  The deposit is open
at both ends, both sides and at depth.

Russian category C2 resources (corresponding approximately to an "indicated"
category) over these three main zones total 52,084 Kgs (1.68 Million oz) at an
average grade of 1.83g/t and at the 0.6g/t cut-off.  The P1 class of resource
(approximately equivalent to "inferred") on the same areas increases the total
resource to 78,546 Kgs (2.53 Million oz) at the same grade.

Subparallel structures at the Yuzhnaya area are similarly estimated to contain
36,769 Kgs (1.18 Million oz) at a grade of 1.0g/t of P1 and P2 categories

Total C2 and P resources are thus estimated as 115,316 Kgs (3.707 Million oz.,
which is more than double the 1.45 Million oz included in the Admission
Document.

The new resource estimate takes into account results of both 26 old drill holes
and 48 new holes and trenches.  In the Promezhutochnaya zone, where Pokrovskiy
Rudnik has entirely redrilled the area, it has become evident that previous
estimates of thickness and grades have been understated, with correction factors
to the new data being 2.0 for orebody thickness and 1.1 for gold content.  Thus
Pokrovskiy Rudnik expects that, as old areas are further redrilled, ore tonnage
and grade estimates will increase further.

It should also be noted that a back-log of approximately 3,000 core samples is
awaiting fire assay.  Pokrovskiy Rudnik's laboratory is presently processing
some 80 samples per 24 hours.


Titanium

Negotiations with the German company Ferrostahl GMBH for the provision of a
bankable feasibility study on Olekminsky Rudnik's Titanium Dioxide project are
at an advanced stage.  It is presently planned that Ferrostahl will work with
VnipiProm Technologie, the Moscow-based institute, which designed the Group's
Resin-in-Pulp, plant, on this study: a concept which is in keeping with the
Group's policy of maximising Russian involvement where possible.


Corporate Activities

Increase in holding of Pokrovskiy Rudnik

Completion of the increase to 75% of Pokrovskiy Rudnik was achieved on 29th July
2002.

Application has been made to the UK Panel on Takeovers and Mergers for
permission to increase this stake to 97% without the need for existing major
holders, including Pavel Maslovsky and Peter Hambro, to make an open offer to
acquire all the shares in the company.


Shareholdings

Following the increase in the Company's shareholding in Pokrovskiy Rudnik, the
disclosable shareholdings over 3% are: -


Dr. Pavel Maslovsky                          12,199,931 ( 33.12%)
Peter Hambro                                 8,039,800 (21.82%)
Nutraco Nominees Ltd.                        3,147,286 (8.54%)


EBRD Mandate

Peter Hambro Mining PLC and OJSC Pokrovskiy Rudnik have signed a Mandate Letter
with the European Bank for Reconstruction and Development which may lead to the
provision of equity and debt finance to the Group. This is subject, among other
things, to a due diligence review by US consultants, Pincock Allen and Holt
which is under way.


Pokrovskiy Rudnik Rur500 million Bond Issue

The Group has agreed heads of terms with Moscow-based bankers, Nikoil, for an
underwritten 500 million Rouble bond issue by Pokrovskiy Rudnik and guaranteed
by Peter Hambro Mining PLC.

The bonds would have a life of 3 years, the coupon would be the higher of 12% in
US$ or 18% in Roubles with the Rouble principal amount being rebased against the
US$ semi-annually.  Once registration of a Prospectus with FSEC in Moscow is
complete, it is anticipated that these bonds would be auctioned in Moscow.  The
Group would try to make arrangements for UK and other investors to be able to
acquire and hold these bonds through a depositary receipt mechanism, should they
so wish.

The Directors believe that the proceeds of such an issue, if drawn, would
greatly accelerate the Group's development plans.  However it should be noted
that the Group has the option whether to proceed or not, depending on the level
of interest in the auction.


Baikal Bank stake

In June 2002 Pokrovskiy Rudnik subscribed US$ 0.63 million for new shares that
give it 18.8% of the share capital of Baikal Bank as part of the bank's
recapitalisation.  Baikal Bank is a commercial bank registered in Russia and
operating in the Buriatia Republic.  Pokrovskiy Rudnik has agreed that it will
sell this holding to ExpoBank and that thereafter Pokrovskiy Rudnik will gain
access to mining opportunities derived from BaikalBank's gold business.
BaikalBank is a major shareholder of a number of gold deposits in the Buriatia
Republic, one of the gold producing areas with the highest potential of the
Russian Federation and this connection is considered to be of strategic
importance to Pokrovskiy Rudnik's expansion potential in Russia.


Chairman's Statement

"The most important thing that I can bring to investors' attention is the fact
that we have done what we said we were going to do.

The promise of first gold from the new plant in September 2002 proved to be a
reality and now we have all year round production at 92% recovery rate.

I have nothing but the highest praise and admiration for Pavel Maslovsky, Sergei
Ermolenko, Valery Alexeev, Nicolai Vlasov and the rest of the team at
Pokrovskiy.  Their achievements are magnificent and I took great pleasure in
seeing the looks of amazement on the faces of all the delegates on the recent
site visit.  Watching the mill turning over and the pits operating at full
capacity impressed everyone.  A first gold pour, on schedule, was the crowning
glory.

The Admission Document predicted that the Pioneer gold resource would be larger
than the official figures on which our successful tender was based and it is
gratifying that Dalgeofizica's report has proved to be true.  We are continuing
to explore this area and believe that we have even more to find.

It is gratifying that our success has been recognised in several quarters and
that we have been offered debt finance both from the Russian corporate bond
market and also EBRD.  We are actively exploring what these offers mean to the
company and welcome the flexibility that such funding would provide for our
future development plans.

I would not want to give the impression that the six months under review have
been without any problems.  We have had to learn to live as a public company and
to produce UK GAAP accounts.  Recoveries from the heap-leach were lower than
expected because the gold in the lower horizon ore is more tightly bound to the
quartz than we had expected.  This meant more crushing and longer residence
times, with consequent temporary cash-flow implications.  Capital costs on the
mill were somewhat higher than expected.

But these are all things that are within the competence of the management to
handle and I am confident that we will continue to progress as the year
continues."

Peter Hambro, Executive Chairman.  26th September 2002.



                            PETER HAMBRO MINING PLC

                Summarised Consolidated Profit and Loss Account
                        for the period ended 30 June 2002

                            (expressed in US $'000s)
                                                         Note
                                                                      Six months to                 Pro forma
                                                                       30 June 2002            Full Year 2001
                                                                                                 (see note 1)
                                                                              $'000                     $'000


Turnover                                                      2               7,022                    23,722

Operating profit                                                              3,605                    10,100

Interest payable and similar charges                          4             (1,517)                   (1,613)

Other income net of expenditure                                                 226                       199

Profit on ordinary activities before

Taxation                                                                      2,314                     8,686

Taxation on profit on ordinary activities                     5                 (7)                         -

Profit on ordinary activities after taxation                                  2,307                     8,686

Minority interests                                           11             (1,175)                   (4,283)

Profit retained for the period                                                1,132                     4,403


Earnings per share                                                            $0.04                     $0.18


The entire turnover for the period (2001 - US$23.7 m) has been generated by the
company's subsidiary OAO Pokrovskiy Rudnik. Pokrovskiy Rudnik generated US$3.8 m
of operating profit (2001 - US$ 11.1 m) for the group. Neither the group's
results for the period nor the group's results for the comparative period were
affected by any acquisitions or disposals.

The business of the group is conducted entirely within one business segment and
in one geographic location, consequently no segmental analysis is presented.

There are no recognised gains or losses other than those included in the profit
and loss account.

The accompanying notes are an integral part of this profit and loss account.



                             PETER HAMBRO MINING PLC

           Summarised Consolidated Balance Sheet as at 30 June 2002

                            (expressed in US $'000s)
                                                                    Note
                                                                           30 June 2002            Pro forma
                                                                                                 31 Dec 2001
                                                                                  $'000                $'000
Fixed Assets
Intangible assets
Negative goodwill                                                       6       (3,714)              (5,209)
Other intangible assets                                                           3,907                4,071
Tangible assets
Property, plant and equipment                                                    34,854               34,131
Capitalised exploration and development expenditure                               1,737                    -
Assets under construction and equipment to be installed                           5,200                1,177
Investments                                                             7           637                    2
                                                                                 42,621               34,172

Current Assets
Stock and work in progress                                              8         3,119                  321
Debtors                                                                           4,770                3,046
Cash at bank and in hand                                                          2,245                1,361
                                                                                 10,134                4,728


Creditors, amounts falling due within one year                          9      (15,641)              (8,952)

Net Current Liabilities                                                         (5,507)              (4,224)

Creditors, amounts falling due after
more than one year                                                             (12,316)             (11,394)


Net Assets                                                                       24,798               18,554

Capital and Reserves

Share capital                                                          10           433                  391
Share premium                                                          10        13,079                8,755
Share incentive reserve                                                 3            40                    -
Profit and loss account                                                            (83)              (1,215)
Equity shareholders' funds                                                       13,469                7,931
Minority interests                                                     11        11,329               10,623


                                                                                 24,798               18,554


The accompanying notes are an integral part of this balance sheet.

These financial statements were approved by the Directors on 25 September 2002


P.C.P. Hambro                                                    P.A. Maslovskiy



                            PETER HAMBRO MINING PLC

                Summarised Consolidated Statement of Cash Flows
                      for the period ended 30 June 2002

                            (expressed in US $'000s)


                                                Note              Six months to                      Pro forma
                                                                   30 June 2002                 Full Year 2001
                                                                        $ '000s                        $ '000s

Net cash (outflow)/inflow from operating
activities                                         12                     (831)                         15,215
                                                  

Net cash outflow from returns on investments
and servicing of finance                                                (1,206)                        (1,718)
                                                                       
Taxation Paid                                                               (7)                              -

Capital Expenditure and Financial
investment                                                              (6,656)                       (16,007)
                                                                       
Cash Outflow before use of Liquid Resources and
Financing                                                               (8,700)                        (2,510)
                                                                   
Net movement in debt                                9                     5,985                          2,461
Share capital issued                                                      3,599                          1,000

Increase in cash at bank and in hand                                        884                            951



                            PETER HAMBRO MINING PLC

                  Summarised Consolidated Financial Statements
                       for the period ended 30 June 2002

                                    Notes


1.   Principal Accounting Policies

     The Company was incorporated on 20 December 2001 under the name Excelsior
     Corporation plc as part of a planned reorganisation of an existing group 
     headed by Peter Hambro Mining Limited. Subsequent to the formation of the 
     Company, Peter Hambro Mining Limited was renamed Eponymousco Ltd 
     ("Eponymousco") and the Company was renamed Peter Hambro Mining plc. On 17 
     April 2002 the Company acquired the whole of the share capital of 
     Eponymousco and obtained admission to the London Alternative Investment      
     Market ("AIM").

     These events are considered to be a reorganisation of a continuing 
     business. Consequently, these financial statements have been prepared so as 
     to include the results of the Company and Eponymousco from 1 January 2002 
     to 30 June 2002 using the accounting polices adopted by Eponymousco in its 
     financial statements for the year to 31 December 2001 with the exception of 
     the basis of consolidation used and the comparative figures presented.


a)   Principles of consolidation

     The Company has one 100% subsidiary, Eponymousco.  The results and balances 
     of Eponymousco have been consolidated in these financial statements.

     Eponymousco has one subsidiary, OAO Pokrovskiy Rudnik formerly JSC 
     Pokrovskiy ("Pokrovskiy Rudnik"), a company incorporated in Russia. At 31 
     December 2001 Eponymousco owned 53.11% of Pokrovskiy Rudnik. The group 
     acquired a further 2% of Pokrovskiy Rudnik on 19 April 2002 bringing the 
     group's total holding to 55.11%. Pokrovskiy Rudnik has been consolidated in 
     these financial statements.

     Pokrovskiy Rudnik has one subsidiary (51%), OOO Olekminskiy Rudnik 
     ("Olekminskiy Rudnik"), a company incorporated in Russia. Olekminskiy 
     Rudnik is involved in exploring for titanium deposits.

     The results and balances of Olekminskiy Rudnik were excluded from 
     consolidation in the previous period on the grounds that they were not 
     material to the group. Olekminskiy Rudnik has been consolidated in the 
     current period on the basis that future results and balances may be 
     material.  For this period the impact of consolidation is not material.


b)   Comparative figures

     As explained above, the Company was formed as part of a group 
     reorganisation in December 2001. Pro forma comparative figures for the 
     group as it was constituted in 2001 are presented for the Consolidated 
     Profit and Loss Account, Consolidated Cash Flow Statement and Consolidated 
     Balance Sheet.

     As financial statement were not drawn up for the group as then constituted 
     for the period to 30 June 2001, comparative figures for the Consolidated 
     Profit and Loss Account and Consolidated Cash Flow Statement are only 
     presented for the year to 31 December 2001.


2.   Turnover 

     Turnover is derived from sales of gold and minor sales of silver that have 
     been produced from the heap-leach process.

     It should be noted that emergence from winter temperatures in Eastern 
     Russia during the first part of the year causes lower production than in 
     the second half of the year.  In addition, the ore treated during the 
     period was of a lower grade than that of the previous year and it was found 
     that its characteristics called for finer crushing and a longer residence 
     time on the pads.  Both of these factors led to reduced production in the 
     first half-year.

     All proceeds are receivable in the ordinary course of business and are 
     recorded exclusive of Value Added Tax.

     All sales originate in Russia and are destined for Russia.

     Pokrovskiy Rudnik has generated all of current period turnover for the 
     group. Turnover of Pokrovskiy Rudnik for the first six months of 2001 was  
     $5.8 million.


3.   Directors and Employees

                                                                         30 June 2002         Pro forma
                                                                                $'000              2001
                                                                                                  $'000

Directors' emoluments                                                             265               841


Staff costs during the period were as follows:
                                                                          30 June 2002          Pro forma
                                                                                 $'000               2001
                                                                                                    $'000

Wages and salaries                                                               1,368              2,060
Social security costs                                                              318                677

                                                                                 1,686              2,737


The average number of employees (excluding directors) of the group during the
period was 1,278 (2001 - 830). The Company had three part time employees (2001 -
nil).

The emoluments of the highest paid director for the period were $71,000 (2001 -
$520,000). Directors' emoluments, in their entirety, were paid to companies
controlled by directors.


3.   Directors and Employees (continued)

     During the period Eponymousco Limited implemented a share incentive scheme.
     Under the scheme participating employees have subscribed for 2,759,368 C
     ordinary non-voting, non dividend bearing shares in Eponymousco Ltd at a 
     par value of £0.01. These are to be converted into ordinary shares in the 
     Company on the earlier of the disposal of Eponymousco Limited by the 
     Company or 1 June 2005 for a supplementary payment of £1.01. The directors 
     believe that at the time of issue the share incentive scheme had no value 
     over and above the initial subscription paid.

     During the period Pokrovskiy Rudnik established a Reserve Bonus Scheme for
     senior executives of that company.  Under this scheme participants will be
     awarded freely transferable "scheme units" at the end of each year from 
     2002 to 2012.  These will be awarded at the rate of $5 (in aggregate) for 
     each ounce of gold added to the certain reserves.  Payments may be made in 
     cash or may be applied to subscribe for new Ordinary Shares in the Company 
     at the prevailing market price. No increase in reserves was identified 
     during the period.

     No other long term incentive schemes or pension plans have been implemented 
     by group companies for their directors or employees.


4.   Interest Payable and Similar Charges
          
                                                30 June 2002     Pro forma 2001
                                                       $'000              $'000

Finance lease charge                                      38                 31
Bank loan interest                                     1,467              1,437
Other loan interest                                       12                145

                                                       1,517              1,613
5.   Taxation

     The Company does not anticipate a corporation tax charge for the period as 
     all profits arise in its subsidiary Pokrovskiy Rudnik and the Company 
     itself has suffered losses. Pokrovskiy Rudnik was the beneficiary of a tax 
     concession that exempted it from Russian profit tax for the year ended 31 
     December 2001. This concession came to an end during 2002.  The Russian 
     profit tax charge for Pokrovskiy Rudnik for the period ended 30 June 2002 
     was $6,653.  This tax charge is stated at the actual rate for the period as 
     it is not possible to estimate accurately the anticipated effective tax 
     rate for the full year.  No deferred tax asset has been recognised in these 
     financial statements on the grounds that at such an early stage in the 
     group's development it is not possible to be reasonably certain that there 
     will be suitable profits from which the future reversal of underlying 
     timing differences can be deducted.


6.   Negative goodwill

                                                                      $'000
Cost
At 1 January 2002                                                   (5,788)
Goodwill arising on additional acquisition of Pokrovskiy
Rudnik shares
                                                                     1,229

At 30 June 2002                                                     (4,559)

Depreciation
At 1 January 2002                                                     (579)
Release for the year                                                  (266)

At 30 June 2002                                                       (845)
                                                                
Net book value
At 31 December 2001                                                 (5,209)

At 30 June 2002                                                     (3,714)


7.   Investments
     
                                                                            30 June 2002          Pro forma
                                                                                   $'000               2001
                                                                                                      $'000

OOO Olekminskiy Rudnik                                                                 -                  2
Baikal Bank                                                                          637                  -

                                                                                     637                  2

Olekminskiy Rudnik is registered in Russia and was formed during 2001.
Olekminskiy Rudnik is involved in the preparatory stages of titanium mining.
Pokrovskiy Rudnik owns 51% of the ordinary share capital of Olekminskiy Rudnik.
Olekminskiy Rudnik was not consolidated in the group accounts in 2001 as the
results and balances were not material to the group.  It has been consolidated
in the current period accounts.

In June 2002 Pokrovskiy Rudnik agreed to subscribe for new shares which would
give it 18.8% of the share capital of Baikal Bank as part of a recapitalisation.
Baikal Bank is a commercial Bank registered in Russia and operating in the
Buriatia Republic.  It has been agreed that Pokrovskiy Rudnik will resell this
holding to ExpoBank and that thereafter JSCP will retain an interest in
BaikalBank's gold business, which is considered to be of strategic importance to
JSCP's expansion potential in Russia.  BaikalBank is a major shareholder of a
number of gold deposits in the Buriatia Republic, one of the gold producing
areas with the highest potential of the Russian Federation.


8.   Stock and work in progress
                                                                            30 June 2002     Pro forma 2001
                                                                                   $'000              $'000

Stores and spares                                                                    955                  -
Work in progress                                                                   1,653                312
Bullion in stock                                                                     511                  9

                                                                                   3,119                321


Following a review by management, stocks of stores and spares at 31 December
2001 were written off.

The work in progress comprises leached ore and low-grade blended ore.


9.   Creditors, amounts falling due within one year
     
                                                                                    30 June       Pro forma
                                                                                       2002            2001
                                                                                      $'000           $'000

Trade creditors                                                                       1,270             714
Finance lease liabilities                                                               745             292
Note payable                                                                              -           1,103
Short term loans and overdraft                                                        8,596           2,020


Short term element of long term loans                                                 3,419           3,757
Other creditors including

taxation and social security payable                                                  1,611           1,066

                                                                                     15,641           8,952

The loans represent short-term loans to Pokrovskiy Rudnik from banks and trading
partners mainly for working capital due to winter operations. Interest rates
vary from 18 to 22 %.

10.  Share Capital
     
                                                                                Company
Ordinary  shares                                               30 June 2002                      2001
                                                                      $'000                     $'000
Allotted, called up and fully paid:
At the beginning of the period                                            -                         -
Converted on admission                                                  391                         -
New issues                                                               42                         -

At the end of the period                                                433                         -

Number of shares (par value £0.01)

Authorised                                                      100,000,000                         -

Issued at the beginning of the period                                     2                         -
Converted on admission                                           24,696,582                         -
New issues                                                        2,897,100                         -

At the end of the period                                         27,593,684                         -


During the period 24,696,584 shares in the Company were issued in exchange for
the total issued share capital of Eponymousco Limited.  An additional 2,000,000
ordinary shares were issued for consideration of £1.30 per share.    A further
897,100 shares were issued in exchange for a 2% holding in Pokrovskiy Rudnik.
As a result of these transactions a share premium of $4,324,542 after listing
expenses of $891,562 and commission of $227,214 was recognised.

Further shares in the Company were issued after the year end (see note 13).


11.  Minority Interests
     
                                                             30 June 2002            Pro forma 2001
                                                                    $'000                     $'000


At the beginning of the period                                     10,623                    6,340
Minority interest in equity of acquired subsidiary
undertakings                                                        (469)                        -
                                                                  
Minority interest in net profit of subsidiary
undertakings                                                        1,175                    4,283
                                                                   
At the end of the period                                           11,329                   10,623


All minority interests are equity interests.


12.  Net Cash (Outflow)/Inflow from Operating Activities
     
                                                       30 June 2002            Pro forma Full
                                                              $'000                 Year 2001
                                                                                        $'000

Cash received from customers                                  7,022                    23,721

Cash paid to suppliers and employees                        (4,868)                   (4,904)
                                                              
Other proceeds                                                  238                       550                           
Other expenses                                              (3,198)                   (4,445)   

Exchange difference                                            (25)                       293
                                                              
Net cash (outflow)/inflow from operating                      (831)                    15,215
activities


13.  Post Balance Sheet Events
     
     On 29 July 2002 9,246,318 shares in the Company were issued in exchange for 
     an additional 20% holding in Pokrovskiy Rudnik. This brought the group's 
     total holding in Pokrovskiy Rudnik to 75%.


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