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Altyn Plc (ALTN)

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Friday 31 August, 2018

Altyn Plc

Half-year Report

Half-year Report

Altyn Plc

ALTYN PLC

Interim report - six months to 30 June 2018

Altyn Plc (“Altyn” or the “Company”), the gold mining and development company, announces its unaudited results for the six months to 30 June 2018.

Highlights:

Mine development

  • During the period the Company concentrated on the development of the ore bodies, no further development has been undertaken on the decline as there are currently sufficient access points to the ore bodies for the current production plans.
  • Ore extracted from the underground mine increased in line with projections to a high point of 38,000t a month in June 2018. The average extraction was lower at approximately 25,000t due to planned maintenance work reducing the ore extracted in March and April 2018.
  • Developmental work was carried out at the mine at 214 masl, in relation to ore bodies 3-8 and at 185 masl in relation to ore body 11 giving access to 260,000 tons of ore for future production at an average grade of 2.53g/t.
  • Exploration work at Karasuyskoye continued in line with the development plans. Three sites within the contract licence area have been identified as having potential for early development. The Company has applied to the appropriate ministry for an addendum to the licence to extract 10,000 tons of test production ore.

Production

  • Gold recovery is averaging 83.65%, in line with that achieved during year end 31 December 2017, the expectation is that the recoveries will continue at this level for the foreseeable future, until further equipment is purchased.
  • H1 2018 gold production from Sekisovskoye was 8,461oz, compared with H1 2017 of 7,327oz.
  • The actual milled ore was 182,000 tons (H1 2017 131,000 tons), in the current period, (as last year), it included lower grade stockpiled ore at 0.5g/t.

Financial

  • The turnover has increased to US$10.9m (H1 2017 US$9.2m), an increase of 18%. The gold price achieved averaged US$1,322oz during the period (Year 2017 US$1,293).
  • The Company made an operating profit of US$1.6m (H1 2017 loss - US$109,000), with a net profit before taxation of US$603,000 (H1 2017 Loss US$1.2m). In part this was due to operational cost savings at head office and at the mine site, the latter being due to labour cost savings with in the transportation and production departments.
  • During the period bonds to the value of US$9.7m were converted into equity shares in the company at a value of £0.03p per share.
  • The total cash cost of production was US$883oz (Year 2017 US$899oz).
  • EBITDA achieved was positive at US$3.6m (Year 2017 US$2.5m).
  • Cash flow from operating activities was positive at US$2.5m, (2017 US$1.6m) the Company has benefitted from the fact that it currently has a low gearing, with lower financial loan commitments than in the past.
  • Cash balances at 30 June 2018 were US$201,000 and are sufficient for current operational requirements.

Fund raising

  • The expectation was that funding would be in place during H2 2018. However there has been a delay in the ability of Freedom Finance to provide funding to Altyn in the time frames required. The Company is still continuing with its discussions with Freedom Finance, to obtain the funding necessary but is also looking at other providers.
  • The Company is currently in active discussions with banks and other providers in Kazakhstan. However the management want to ensure that any future funding is on terms and conditions which are for the long term benefit of shareholders and are trying to achieve the most favourable terms possible. The Company will update shareholders as plans progress.

Aidar Assaubayev, CEO of Altyn Plc commented:

The management are currently in active discussions with banks and other providers in Kazakhstan to raise the necessary funds required to fulfil its project plans. We are positive the necessary funding can be put in place as required for the project development but want to ensure that it is for the long term benefit of shareholders and on the most favourable terms possible with regards to the cost of financing.

The Company is cash generative at its current production levels and has rationalised operations in order to conserve the cash resources going forward.

For further information please contact:

Altyn PLC

For further information please contact:

Altyn Plc

Rajinder Basra, CFO +44 (0) 207 932 2456

VSA Capital (Corporate Broker)

Andrew Monk / Andrew Raca +44 (0) 203 005 5000

Information on the Company

Altyn Plc (LSE:ALTN) is an exploration and development company, which is listed on the standard segment of the London Stock Exchange.

To read more about Altyn Plc please visit our website www.altyn.uk

ALTYN PLC

Chief Executive Review

H1 2018 Review

Mine development

In Q2 2018, the Company has concentrated on developing the productive ore bodies. The decline was developed to horizon 150 Masl in 2017 and in the current period was not developed further due to the fact that sufficient ore bodies are accessible to extract ore.

The actual ore mined ranged from a low of 11,000 tons in March to a higher level of 38,000 tons in June 2018, resulting in an average tonnage over 6 months of 25,000 tons. The lower level of ore mined in March 2018 was due to scheduled maintenance at the mine site. The expected run rate each month is expected to move into the range of 30-35,000 tons each month going forward.

As already stated the significant ramp up in production is dependent on further capital investment. During the current period the Company is continuing to successfully develop the ore bodies with the available equipment and has developed ore bodies 3-8 and 11 for production in the next period.

The production over the past half year was mainly from the group of ore bodies 1,8,10 and in June from ore body 11 and was extracted from levels ranging from 242 Masl to 185 Masl. Due to the level of developmental ore included, the actual ore grade fluctuated from a high of 2.78 to a low of 1.53 resulting in a lower than expected grade from the ore mined of 1.96.

Karasuyskoye

In addition to the underground mine development the Company is continuing to develop its prospective site at Karasuyskoye.

The following has been completed so far Core drilling has been undertaken of 1,500 metres, air drilling of 5,500 linear metres, and the open pit has been excavated amounting to 5,500 cubic metres. Test production will be undertaken once the necessary permits have been obtained.

H1 2018 Operational Overview – Sekisovskoye

             
Underground mine   H1 2018 H1 2017
Ore extracted tons 152,639 151,400
Gold grade g/t 1.96 2.14
Silver grade g/t 3.34 2.40
       
Mineral processing   H1 2018 H1 2016
Milling tons 182,832 131,238
Gold grade g/t 1.72 2.06
Silver grade g/t 2.98 2.29
Gold recovery % 83.65% 81.76%
Silver recovery % 74.29% 71.37%
Gold produced ounces 8,461 7,327
Silver produced ounces 12,875 6,484

The Ore extracted is averaging at 25,000 tons a month, the difference between the ore extracted and the milling at an average of 30,000 tons a month is due to the use of lower grade stockpiled ore. The stockpiled ore has a grade of 0.5%, leading to a processed grade of 1.72 overall (2017 2.06).

The gold recovery is in line with that achieved in year ended 2017 and is currently expected to be maintained at this level going forward. The improvement in recoveries is expected once new capital is employed specifically the gravity concentration plant, the installation is dependent on future capital investment funds being made available.

The underground ore grade continues to be lower than that forecast as it contains a higher quantity of development ore being mined leading to a decrease in the gold grade, again the increase in grade is dependent on the deployment of additional mining equipment.

Moving forward

The Company’s long term plan is to increase production by targeting the ore bodies in a more defined way, pushing the grade up, and at the same time increasing the volume of ore mined. The management have been working hard to in order to raise the necessary funds, however due to circumstances they have not been able to continue with the previous providers. As a result, they are now looking to fund the capital expenditure for the project from new sources of finance, and are in active discussions with banks in Kazakhstan, and will update shareholders as they progress. However the time lines in relation to a significant increase in production are expected to move as a result of the delays in obtaining the appropriate finance.

The Company will continue to improve the mine, developing the decline and ore bodies, with in the restrictions of the current available plant and capital available.

H1 2018 Financial Review

The Company has reported a gross profit of US$2.6m for H1 2018, against US$1.6m for H1 2017, with turnover of US$10.9m (H1 2017 US$9.2m).

Sekisovskoye produced 8,461oz of gold in H1 2018 (H1 2017:7,327oz). Gold sold during the period amounted to 8,235oz (H12017 7,437oz) at an average price of US$1,323/oz (H1 2017: US$1,237/oz). The average price of sales achieved includes revenues generated from silver sales in the period, which are treated as incidental to gold production.

The operating cash cost of production (cost of sales excluding depreciation and provisions) for the period was US$731/oz (Year 2017 US$661/oz). The total cash cost was US$883/oz as compared to US$899/oz in year ended 2017. Cost rationalisations were made in the early part of 2018 both at head office and at the mine site. At the mine site the transport department was outsourced and the maintenance department reduced which resulted in cost savings from the prior period.

As of 30 June 2018, the Company had cash balances of US$201,000. The Company currently has sufficient cash resources to operate at current production levels.

During the period the Company converted US$9.7m of the bond of US$10m owing to African Resources Limited into share capital, increasing their shareholding to 69.8%. In total there is approximately US$4.6m due in relation to the convertible bonds of which approximately US$2.6m is owed to African Resources Limited (including accrued interest), this amount is expected to be converted into share capital in H2 2018.

Aidar Assaubayev

Chief Executive Officer

31 August 2018

ALTYN PLC

Consolidated income statement

      Six months

ended 30 June

2018

  Six months

ended 30 June

2017

  Year ended

31 December

2017

(unaudited)

(unaudited)

(audited)

    US$’000 US$’000 US$’000

Revenue

10,894

 

9,200

15,867

Cost of sales   (8,240) (7,631) (13,554)
Gross profit 2,654 1,569 2,313

Administrative expenses

(1,248)

(1,766)

(5,352)

Impairments   176 88 (1,107)

Operating profit/(loss)

1,582

(109)

(4,146)

Foreign exchange (383) 213

283

Finance Expense   (596) (1,290) (2,215)

 

Profit/(loss) before taxation

603

(1,186)

(6,078)

Taxation   - 14 (278)

 

 

Profit/(loss) attributable to s equity shareholders

 

 

 

 

603

 

 

 

(1,172)

 

 

 

(6,356)

         

 

Profit/(loss) per ordinary share

 

Basic & diluted (US cent)

 

 

 

 

0.02c

 

 

 

(0.05c)

 

 

 

(0.3c)

 
 

 

ALTYN PLC

Consolidated statement of profit or loss and other comprehensive income

 

Six months

ended 30 June

2018

 

Six months

ended 30 June

2017

 

Year ended

31 December

2017

(unaudited)

(unaudited)

(unaudited)

(audited)

US$’000 US$’000 US$’000
Profit/(loss) for the period/year 603 (1,172) (1,929)

Currency translation differences arising on translations of
F foreign operations items which will or may be reclassified to
profit or loss

 

 

(2,027)

 

1,296

 

98

Currency translation differences arising on translations of

foreign operations relating to taxation -

- -

1,088

Total comprehensive (loss)/profit for the period/year

attributable to equity shareholders

 

(1,424)

 

124

 

(743)

ALTYN PLC

Consolidated statement of financial position

   

Six months

ended 30 June

2018

 

Six months

ended 30 June

2017

 

Year ended

31 December

2017

Notes

(unaudited)

(unaudited)

(audited)

    US$’000 US$’000 US$’000

Non-current assets

Intangible asset 3 11,641 11,034 11,881
Property, plant and equipment 4 34,135 36,979 35,163
Other receivables - 497 1,476
Deferred tax asset 6,750 5,855 6,928
Restricted cash   16 39 14
    52,542 54,404 55,462

Current assets

Inventories 3,096 2,546 1,713
Trade and other receivables 3,964 3,143 2,531
Cash and cash equivalents   201 1,536 704
    7,261 7,225 4,948
Total assets   59,803 61,629 60,410

Current liabilities

Trade and other payables (8,501) (6,515) (7,822)
Other financial liabilities (407) (536) (399
Provisions (85) (189) (112)
Borrowings   (1,557) (2,451) (724)
    (10,550) (9,691) (10,978)
Net current liabilities   (3,289) (2,466) (4,280)

Non-current liabilities

Other financial liabilities & payables (120) (189) (160)
Provisions (4,684) (4,396) (4,512)
Borrowings   (2,905) (13,180) (13,433)

 

  (7,709) (17,765) (18,105)
Total liabilities   (18,259) (27,456) (27,162)
Net assets   41,544 34,173 33,248

Equity

Called-up share capital 4,210 3,886 3,886
Share premium 151,314 141,918 141,918
Merger reserve (282) (282) (282)
Other reserve 333 391 333
Currency translation reserve (46.645) (44,508) (44,618)
Accumulated loss   (67,386) (67,232) (67,989)
Total equity   41,544 34,173 33,248

The financial information was approved and authorised for issue by the Board of Directors on 31 August 2018 and was signed on its behalf by:

Aidar Assaubayev – Chief Executive Officer

ALTYN PLC

Consolidated statement of changes of equity

   
  Share capital   Share premium   Merger reserve   Currency translation

reserve

  Other

reserves

  Accumulated losses  

Total

Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2018 3,886 141,918 (282) (44,618) 333 (67,989) 33,248
Profit for the period - - - - - 603 603
Exchange differences on translating foreign operations - - - (2,027) - - (2,027)
Total comprehensive profit for the period - - - (2,027) - 603 (1,424)
Equity shares issued 324 9,396 - - - - 9,720
At 30 June 2018 4,210 151,314 (282) (46,645) 333 (67,386) 41,544
 

 

               
Unaudited US$'000 US$'000 US'000 US$'000 US$’000 US$'000 US$'000
At 1 January 2017 3,886 141,918 (282) (45,804) 333 (66,060) 33,991
Loss for the period - - - - - (1,172) (1,172)
Exchange differences on translating foreign operations - - - 1,296 - - 1,296
Total comprehensive loss for the period - - - 1,296 - (1,172) 124
Share based payment - - - - 58 - 58
At 30 June 2017 3,886 141,918 (282) (44,508) 391 (67,232) 34,173

 

 
               
Audited US$'000 US$'000 US'000 US$'000 US$’000 US$'000 US$'000
At 1 January 2017 3,886 141,918 (282) (45,804) 333 (66,060) 33,991
Loss for the year - - - - - (1.929) (1,929)
Other comprehensive loss - - - 1,186 - - 1,186
Total comprehensive loss for the year - - - 1,186 - (1,929) (743)
At 31 December 2017 3,886 141,918 (282) (44,618) 333 (67,989) 33,248

ALTYN PLC

Notes to the consolidated financial information

   

Six months ended 30 June 2018

 

Six months ended 30

June 2017

 

Year ended 31 December 2017

(unaudited)

unaudited

(audited)

 

Note

US$’000 US$’000 US$’000
Net cash inflow from operating activities 7 2,504 1,639 5,107

Investing activities

Purchase of property, plant and equipment (2,397) (966) (2,252)
Exploration costs   - (264) (439)

Net cash used in investing activities

 

 

(2,397)

 

(1,230)

 

(2.691)

Financing activities

Loans received - 756 724
Loans and Interest paid   (610) (1,865) (4,672)

Net cash flow from financing activities

 

 

(610)

 

1,109

 

(3,948)

(Decrease)/increase in cash and cash equivalents

 

 

(503)

 

700

 

(1,532)

 

Cash and cash equivalents at the beginning of the period/year

 

 

 

704

 

 

2,236

 

 

2.236

Cash and cash equivalents at end of the period/year

 

 

201

 

1,536

 

704

1. Basis of preparation

General

Altyn Plc is registered and domiciled in England and Wales, whose shares are publicly traded on the London Stock Exchange.

The interim financial results for the period ended 30 June 2018 are unaudited. The financial information contained within this report does not constitute statutory accounts as defined by Section 434(3) of the Companies Act 2006.

This interim financial information of the Company and its subsidiaries (“the Group”) for the six months ended 30 June 2018 have been prepared, in accordance with IAS34 ( interim financial statements) and on a basis consistent with the accounting policies set out in the Group's consolidated annual financial statements for the year ended 31 December 2017. It has not been audited, does not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2017. The 2017 annual report and accounts, as filed with the Registrar of Companies, received an unqualified opinion from the auditors.

The financial information is presented in US Dollars and has been prepared under the historical cost convention.

The same accounting policies, presentation and method of computation are followed in this consolidated financial information as were applied in the Group's latest annual financial statements except that in the current financial year, the Group has adopted a number of revised Standards and Interpretations. However, none of these have had a material impact on the Group.

In addition, the IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group.

Going concern

The current cash position is sufficient to cover ongoing operating and administrative expenditure for the next 12 months from the date these accounts were released.

The Directors consider that the cash generated from its operations from the Group's producing assets to be sufficient to cover the expenses of running the Group's business for the foreseeable future.

In terms of financing the underground development, the Company will not be incurring any substantial capital expenditure until further capital funds are raised under terms acceptable to the Company.

The Company has therefore adopted the going concern basis in the preparation of these financial statements.

ALTYN PLC

Notes to the consolidated financial information (continued)

Directors Responsibility Statement and Report on Principal Risks and Uncertainties

Responsibility statement

The Board confirms to the best of their knowledge:

The condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

The interim management report includes a fair review of the information required by:

DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

DTR 4.2.8R of the Disclosures and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

The Company’s management has analysed the risks and uncertainties and has in place control systems that monitor daily the performance of the business via key performance indicators. Certain factors are beyond the control of the Company such as the fluctuations in the price of gold and possible political upheaval. However, the Company is aware of these factors and tries to mitigate these as far as possible. In relation to the gold price the Company is pushing to achieve a lower cost base in order to minimise possible downward pressure of gold prices on profitability. In addition, it maintains close relationships with the Kazakhstan authorities in order to minimise bureaucratic delays and problems.

Risks and uncertainties identified by the Company are set out on page 8 and 9 of the 2017 Annual Report and Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2018 to the principal risks and uncertainties as set out in the 2017 Annual Report and Accounts and these are as follows:

  • Fiscal changes in Kazakhstan
  • No access to capital / funding for Sekisovskoye or Karasuyskoye
  • Commodity price risk
  • Currency risk
  • Changes to mining code in Kazakhstan
  • Reliance on operating in one country
  • Reliant on one operating mine
  • Technical difficulties associated with developing the underground mine at Sekisovskoye
  • Failure to achieve production estimates

2. Profit/(loss) per ordinary share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The weighted average number of ordinary shares and retained profit/(loss) for the financial period for calculating the basic loss per share for the period are as follows:

  Six months

ended 30

June 2018

  Six months

ended 30

June 2017

  Year ended

31 December

2017

  (unaudited) (unaudited) (audited)

The basic weighted average number of ordinary shares in issue during the period

 

2,528,508,797

 

2,334,342,130

 

2,334,342,130

The profit/l(loss) for the period attributable to equity shareholders (US$’000s)

 

603

 

(1,172)

 

(1,929)

2. Profit/(loss) per ordinary share (continued)

The potential number of shares which could be issued following the conversion of the bonds currently outstanding amounts to approximately 198m shares being issued on conversion.

3. Intangible assets   Karasuskoye Geological data   Exploration and evaluation costs   US$'000
       
Cost      
1 January 2017 11,345 718 12,063
Additions - 264 264
Amortisation capitalised - 297 297
Reclassified - 142 142
Currency translation adjustment 495 30 525
30 June 2017 11,840 1,451 13,291
Additions - 1,166 1,166
Amortisation capitalised - 724 724
Reclassified - 15 15
Currency translation adjustment (416) (30) (446)
December 2017 11,424 3,326 14,750
Amortisation capitalised - 581 581
Currency translation adjustment (338) - (338)
       
30 June 2018 11,086 3,907 14,993
 
Accumulated amortisation
1 January 2017 1,799 - 1,799
Charge for the period 297 - 297
Currency translation adjustment 161 - 161
30 June 2017 2,257 - 2,257
Charge for the period 724 - 724
Currency translation adjustment (112)   (112)
31 December 2017 2,869 - 2,869
Charge for the period 581 - 581
Currency translation adjustment (98) - (98)
30 June 2018 3,352 - 3,352
 
Net books values
30 June 2017 9,583 1,451 11,034
31 December 2017 8,555 3,326 11,881
30 June 2018 7,734 3,907 11,641

The intangible assets relate to the historic geological information pertaining to the Karasuyskoye Ore Fields. The Ore Fields are located in close proximity to the current open pit and underground mining operations of Sekisovskoye. In May 2016 the Company was awarded an exploration and evaluation contract, which is valid for six years, with a right to extend for a further 4 years. The company is in process of applying for a test production licence which is expected to be received in the near term.

Ongoing costs in relation to exploration and evaluation are capitalised.

4. Property, plant and equipment

 

   

Mining properties and leases

 

US$000

 

Freehold land and buildings

 

US$000

 

Plant, Equipment fixtures and fittings

 

US$000

 

Assets under construction

 

US$000

 

Total

 

US$000

Cost
1 January 2017 11,351 24,241 18,014 4,155 57.761
Additions 500 5 492 242 1,239
Disposals - - (140) - (140)
Transfers (1,682) 2,335 1,682 (2,335) -
Currency translation adjustment 303 827 561 203 1,894
30 June 2017 10,472 27,408 20,609 2,265 60,754
Additions 696 33 190 444 1,363
Disposals (15) (170) (133) (318)
Transfers 12 130 (42) (316) (216)
Currency translation adjustment (337) (805) (513) (154) (1,809)
31 December 2017 10,843 26,751 20,074 2,106 59,774
Additions 1,837 2 141 417 2,397
Disposals - - (262) - (262)
Transfers 389 7 8 (404) -
Currency translation adjustment (488) (686) (679) - (1,853)
30 June 2018 12,581 26,074 19,282 2,119 60,056
 
 
Accumulated depreciation
1 January 2017 2,262 5,100 13,083 - 20,445
Charge for the period 127 1,275 1,310 - 2,712
Disposals - - (112) - (112)
Currency translation adjustment 75 166 489 - 730
30 June 2017 2,464 6,541 14,770 - 23,775

Charge for the period

95

1,223

478

-

1,796

Disposals - (15) (136) - (151)
Transfers (180) (290) 411 - 59
Currency translation adjustment (73) (199) (478) - (750)
31 December 2017 2,306 7,260 15,045 - 24,611

Charge for the period

124

1,254

839

-

2,217

Disposals - - (147) - (147)
Currency translation adjustment (65) (240) (455) - (760)
30 June 2018 2,365 8,274 15,282 - 25,921
 

 

Net Book Values          
1 January 2017 9,089 9,0906,269 19,441 4,931 4,155 37,316
30 June 2017 8,008 20,867 5,839 2,265 36,979
31 December 2017 8,537 19,491 5,029 2,106 35,163
30 June 2018 10,216 17,800 4,000 2,119 34,135

The additions in the period relate to the continuing works associated with the underground mine.

5. Reserves

A description and purpose of reserves is given below:

Reserve   Description and purpose

Share capital

Amount of the contributions made by shareholders in return for the issue of shares.

Share premium Amount subscribed for share capital in excess of nominal value.
Share based payment Amount accrued in relation to the share based payment charge relating to the share options issued.
Merger Reserve Reserve created on application of merger accounting under a previous GAAP.

Currency translation reserve

Gains/losses arising on re-translating the net assets of overseas operations into US Dollars.

Accumulated losses Cumulative net gains and losses recognised in the consolidated statement of financial position.

ALTYN PLC

Notes to the consolidated financial information (continued)

6. Related party transactions

Remuneration of key management personnel

The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 - “Related Party Disclosures”. The total amount remaining unpaid with respect to remuneration of key management personnel amounted to US$148,000 (December 2017 US$127,000).

  Six months

ended 30

June 2018

  Six months

ended 30

June 2017

  Year to

December

2017

  US$ US$ US$
Short term employee benefits 73,500 154,050 350,736
73,500 154,050 350,736
Social security costs 7,132 14,954 33,813
  80,632 169,004 384,549

The reduction in remuneration is due to a reduced remuneration being taken by the chief Executive Officer.

During the period, the company entered into the following transactions with companies in which the Assaubayev family have a controlling interest:

  • An amount is owing to Asia Mining Group of US$522,000, (2017:US$824,000) and is included within trade payables.
  • Loans at an average in interest rate of 7% were made to the Company by Amrita Investments Limited. The total amount currently outstanding including accrued interest amounts to US$850,000 (31 December 2017 US$937,000), the loans are repayable in 2019.
  • In February2016 the Company issued US$10m of convertible bonds to African Resources Limited. The bonds carry a coupon rate of 10% per annum payable semi-annually in arrears on 29 February and 29 July each year. Unless the bonds are re-purchased and cancelled redeemed or converted prior to the scheduled maturity date, they will be repaid in February 2021 at their principal amount. Of the original amount US$9.7m of the bonds were converted into Ordinary shares at 3p per share in February 2018. At 30 June 2018 an amount of US$2.6m, including accrued interest was payable on the remaining bonds, the expectation is that the remaining bonds will be converted into share capital in H2 2018.

The transactions incurred by the Company were on normal commercial terms.

7. Notes to the cash flow statement

    Six months

ended 30 June

2018

(unaudited) US$000's

  Six months

ended 30 June

2017

(unaudited)

US$000's

  Year ended

31 December

2017

(audited)

US $000's

Profit/(loss) before taxation 603 (1,186) (1,917)
Adjusted for
Finance expense 596 1,290 2,834
Depreciation of tangible fixed assets 2,217 2,709 4,508
Amortisation of intangibles - - 231
Change in provisions - (99) (374)
(Increase)/decrease in inventories (1,383) (1,144) 20
Decrease in other financial liabilities (92) (229) (316)
Increase in trade receivables 41 718 195
Decrease/(increase) in trade and other payables 4 (295) 1,374
Loss on disposal of property, plant and equipment 135 27 195
Fair value adjustment - 56 (1,453)
Foreign currency translation 383 (213) 52
Cash inflow from operations 2,504 1,634 5,118
Income taxes - 5 (11)
  2,504 1,639 (5,107)

8. Events after the balance sheet date

There were no significant post balance sheet events to report.

This report will be available on our website at www.altyn.uk

ALTYN PLC

Company information

Directors

 

Kanat Assaubayev

Aidar Assaubayev

Sanzhar Assaubayev

Neil Herbert

Ashar Qureshi

Victor Shkolnik

 

Chairman

Chief executive officer

Executive director

Non-Executive director

Non-executive director

Non-executive director

Secretary

Rajinder Basra

 

Registered office and number

Company number: 05048549

28 Eccleston Square

London

SW1V 1NZ

Telephone: +44 208 932 2455

 

Company website

 

www.altyn.uk

 

Kazakhstan office

10 Novostroyevskaya

Sekisovskoye Village

Kazakhstan

Telephone: +7 (0) 72331 27927

Fax: +7 (0) 72331 27933

 

Auditor

BDO LLP,

55 Baker Street,

London W1U 7EU

 

Registrars

Neville Registrars

18 Laurel Lane

Halesowen

West Midlands B63 3DA

Telephone: +44 (0) 121 585 1131

 

Bankers

NatWest Bank plc

London City Commercial Business Centre

7th Floor, 280 Bishopsgate

London

EC2M 4RB

 

LTG Bank AG

Herrengasse 12

FL-9490, Vaduz

Principal of Liechtenstein

 


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