Oxus Gold PLC
27 October 2004
27th October 2004
Oxus Gold plc
('Oxus' or 'the Company')
Final results for the year ended 30 June 2004
Achievements during the year
• $10.9 million retained profit for the year.
• $17.5 million dividend paid to shareholders by way of shares in
• Amantaytau gold mine brought into production, on time, on specification
and within budget.
• Pre-feasibility study to increase the Amantaytau Oxide production to 2
million tonnes per annum completed.
• Started construction at the Vysokovoltnoye (Gold/Silver) deposit.
• Started construction at Jerooy.
• Corporate Bond of Uzbek Soum 5 billion ($5m) issued by Amantaytau
Goldfields - the largest issue yet placed on the Tashkent Securities Exchange.
LONDON: 27th October 2004 - Oxus Gold plc (OXS.L) reports a profit before tax of
US$11.4 million for the 12 months ended 30 June 2004. Earnings after tax and
minorities amounted to $10.9 million, equal to 5.32 cents per share.
Oxus' joint venture gold mine in Uzbekistan, Amantaytau Goldfields ('AGF'),
started production in February 2004 and produced a total of 59,689 ounces of
gold to the end of June. The Company received attributable income of $3.74
million from AGF during this period, excluding interest and fees. After
accounting for administration expenses and deferred exploration costs, Oxus
recorded an operating loss of $0.8 million. In addition, Oxus made a net gain
of $12.25 million on the disposal of part of its stake in Marakand Minerals.
Extracts from the Chief Executive's Review
'The last twelve months have been a momentous time for shareholders, staff and
all involved with Oxus. During this period the Company has been transformed
into a significant low cost gold producer, achieving the goals set during the
year. It gives me enormous pleasure to report on the strides the Oxus team has
made in this period.
'One development of some significance has been the reduction in AGF's gold
hedging commitments which were set in place as part of the banking arrangements
for the project finance. Since production started in February we have been
delivering into those hedges and have reduced the number of hedged ounces by a
third from 263,000 ounces to 177,240 ounces. This reduction in the hedging
commitment, together with our forecast increase in production at AGF, puts us in
a good position to benefit even further from increased gold prices.
These positive and exciting developments have not occurred without some
setbacks, the most notable being the purported annulment of the Jerooy licence.
Management is continuing the ongoing construction of the mine, whilst
negotiating the license return and expects the plant to be completed during
2005, as originally planned.
'Despite the positive progress there is still much to be done to meet
challenging goals. The management team's principal focus during this next period
will be to increase production substantially whilst reducing operating costs.
'A major exploration programme is also planned in order to prove up our
substantial resources and replenish reserves so that shareholder value can be
enhanced, and with this in mind we have set ourselves the following goals for
• Increase Amantaytau oxide production to 2 million tonnes per annum
at cash costs of lower than $140 per ounce.
• Start production at Vysokovoltnoye.
• Complete construction at Jerooy and commence gold production.
• Complete the elimination of Amantaytau's hedge exposure.
• Bring to reserve at least an additional 500,000 ounces of existing gold
• Complete the Amantaytau Sulphide feasibility study and financing, and
'The achievement of these goals will ensure that our production growth profile
remains on track and contribute significantly to Oxus Group's goal of becoming a
1 million ounce per year producer by 2008.
'We look forward to the future with confidence and expect the next twelve months
to yield further improvements to the good results already achieved.'
Oxus Gold plc Tel: +44 (0)20 7907 2000
Bill Trew, Chief Executive Officer
Jonathan Kipps, Finance Director
Keith Irons Tel: +44 (0)20 7444 4155
Simon Rothschild Tel: +44 (0)20 7444 4153
Consolidated Profit and Loss Account
ended 18 month period ended
30 June 2004 30 June 2003
Group turnover 1,932 762
Income attributable from joint venture 3,738 -
Administration expenses (5,287) (2,677)
Deferred exploration and evaluation expenditure incurred by Marakand (1,198) -
Group operating loss (815) (1,915)
Net interest receivable / (payable):
- Group 212 (54)
- Joint venture 575 447
Loss on ordinary activities before exceptional items and taxation (28) (1,522)
Exceptional items (790) (1,293)
Loss on ordinary activities (818) (2,815)
Net gain on disposal of minority interest in Marakand Minerals Limited 12,252 -
Profit (loss) on ordinary activities before taxation 11,434 (2,815)
Tax on profit (loss) on ordinary activities (5) (17)
Profit (loss) on ordinary activities after taxation 11,429 (2,832)
Minority interests - Group (539) -
Retained profit (loss) for the financial year (period) 10,890 (2,832)
Profit (loss) per share
- basic (per share cents) 5.32 (1.71)
- diluted (per share cents) 5.20 (1.71)
The results above are derived from continuing activities.
Consolidated Cash Flow Statement (extract)
ended 18 month period ended
30 June 2004 30 June 2003
Net cash outflow from operating activities (11,787) (1,769)
Returns on investments and servicing of finance 787 393
Taxation - (36)
Capital expenditure and financial investment (5,040) (7,922)
Acquisitions and disposals 6,535 -
Net cash outflow before use of liquid resources and financing (9,505) (9,334)
Financing 11,191 10,452
Increase in cash 1,686 1,118
Consolidated Balance Sheet
30 June 2004 30 June 2003
Tangible assets 193 -
Exploration and mining rights 28,456 -
Exploration and evaluation properties 12,354 15,113
Interests in joint ventures
Share of gross assets 25,844 12,134
Share of gross liabilities (17,987) (8,015)
Loan to joint venture 14,438 12,806
Total fixed assets 63,298 32,038
Debtors 7,107 265
Cash at bank and in hand 5,541 3,855
Creditors - Amounts falling due within one year (741) (2,158)
Net current assets 11,907 1,962
Total assets less current liabilities 75,205 34,000
Creditors - amounts falling due after one year (1,761) -
Total assets less liabilities 73,444 34,000
Capital and reserves
Called up share capital 3,289 2,824
Share premium account 5,861 18,827
Merger reserve 34,929 34,929
Capital reserve 19,656 -
Profit and loss account (4,416) (22,590)
Total shareholders' funds 59,319 33,990
Minority interests 14,125 10
Capital employed 73,444 34,000
1. The above financial information for the year ended 30 June 2004 is audited,
with an unqualified opinion, and does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. The
financial information for the 18 months ended 30 June 2003 has been extracted
from the accounts for that year, which has been delivered to the Registrar of
Companies and on which the auditors gave an unqualified opinion. Statutory
accounts for the year ended 30 June 2004 will be delivered to the Registrar
of Companies. The Annual Report will be posted to shareholders in mid-
November 2004 and the Annual general Meeting will be held on 8 December 2004.
2. Exceptional items comprise legal costs arising from abortive 2002 project
financing costs ($634,000) and legal costs arising on the application to
court to convert the share premium to distributable reserves ($156,000).
3. The basic and diluted profit per share has been calculated by reference to a
profit, after taxation, of $10,890,000 (2003 - $2,832,000 loss) and the
weighted average number of ordinary shares in issue of 204,519,144
4. The directors do not recommend the payment of a dividend in respect of this
period (2003 - nil). A dividend was paid to the Company's shareholders
equivalent to one share in Marakand Minerals Limited for every ten
shares held in Oxus as at 5 February 2004, valued at $17,490,000. Following
approval from the courts, this distribution was made from distributable
reserves transferred from the share premium account and has not been
reflected in the profit and loss account.
This information is provided by RNS
The company news service from the London Stock Exchange