TIDMEUA
RNS Number : 6308N
Eurasia Mining PLC
30 September 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN EU
REGULATION NO. 596/2014 AND IS IN ACCORDANCE WITH THE COMPANY'S
OBLIGATIONS UNDER ARTICLE 7 OF THAT REGULATION.
30 September 2021
Eurasia Mining Plc
("Eurasia" or the "Company")
Interim Report for the six months ended 30 June 2021
Summary highlights of 2021 to date
-- Agreement with Rosgeo concluded in March to form a globally
significant battery metals and PGM district on the Kola Peninsula,
positioning Eurasia among majors
-- Wardell Armstrong International engaged in April for several
comprehensive tasks including JORC resource audits which are almost
complete and are expected to be announced shortly
-- Proposal received in May for the potential acquisition of
substantially all of the Company's assets. Since then, additional
interest from other parties is being considered by the Board
-- Eurasia's representative office in Japan was established
-- Eurasia is now fully funded to fulfil its commitments in relation to the Rosgeo JV
-- Three plants are now operating at the Company's producing asset West Kytlim
-- The Company maintains its focus on ESG including scope 1 to 3 carbon emissions
Chairman's statement
'The first half of 2021 has been a very active period for the
Company both operationally and commercially.
We concluded a company transformational, legally binding
agreement with Rosgeo covering 9 projects which together with
Monchetundra and Monchetundra Flanks (including NKT, high grade
nickel-copper-cobalt and PGM deposit) form a globally significant
battery metals and PGM district on the Kola Peninsula, positioning
our Company among majors in terms of combined resources of Eurasia
and the projects included in the agreement with Rosgeo.
Post period-end, Konstantin Firstov joined Eurasia as CEO of our
Kola operations from a Managing Director position in Rosgeo
bringing additional operational expertise as the former head of
open pit mining at Achinsk, the largest operation of Rusal, a
leading company in the global aluminium industry, producing metal
with a low carbon footprint.
After signing the Rosgeo agreement at the end of March, Eurasia
conducted a tender among international technical auditors and in
April engaged Wardell Armstrong International for several
comprehensive tasks including JORC resource audits which are almost
complete and will be announced shortly.
In May we received a proposal for the potential acquisition of
substantially all of the Company's assets and the Board decided to
focus on this potential asset sale. Since then, we have seen
additional interest from other parties. We have attracted top
talent and top tier partners and advisers to prioritise and execute
our strategy.
Tamerlan Abdikeev based in Tokyo joined the Board and Eurasia's
representative office in Japan was established.
Also in May we were offered a $20m private placement at the
market price by a leading US institutional investor. In September
we cut back to $15m from a larger proposal made by a consortium of
US professional institutional investors, again without discount, at
the market price of 26p. We are now fully funded to fulfil our
commitments in relation to the Rosgeo JV.
We have successfully trebled our production capacity at West
Kytlim, our ESG focussed PGM mine, while continuing to develop the
electrification of the site to reduce the mine's carbon footprint.
To that end we have selected an electric dragline to minimise our
impact on the environment as well as to increase the efficiency of
the stripping and mining, thereby reducing costs. Thus, the next
year is expected to be transformation for West Kytlim on both the
mining side with a highly productive electric dragline and on the
processing side with 3 plants already launched.
My thanks to the staff and the Board for their continued
commitment to creating additional value for our shareholders. The
Company is in a very strong position financially, with an excellent
portfolio of assets, and in a buoyant market for the future facing
green metals: battery metals for EVs and PGMs for the hydrogen
economy.'
Christian Schaffalitzky, Executive Chairman
For further information, please contact:
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Joint Broker)
Ewan Leggat / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Optiva Securities (Joint Broker)
Christian Dennis
Tel: +44 (0) 20 3137 1902
PGM MARKET SUMMARY
The investment case for Platinum Group Minerals ('PGM'),
especially Platinum and Palladium continues to be clear and
compelling in the immediate and long term, based purely on the
fundamentals of demand and supply. The outlook for demand is
positive from existing markets in PGM, both industrial(1) and
precious metal uses, and from new and emerging markets notably Fuel
Cells(2) and the Hydrogen economy(2) . This contrasts with limited
new supply under development and major challenges for the
traditional global regions for PGM Mining(3) . Structural deficits
now exist in both the platinum(4) and palladium markets and are
predicted to continue, creating an opportunity for emerging global
regions for PGM mining such as Kola.
Platinum has traded above US$1,000/ounce for the first half of
2021 (contrasted with US$870/ounce at this point in the mining
season last year(5) ) however Palladium is expected to continue to
outperform platinum being in a deeper structural deficit than its
sister metal, and with further ounces removed from predicted annual
supply by difficulties at Norilsk, leading to a predicted market
deficit of up to 1million ounces in 2021(6) .
The contribution of other PGM namely Rhodium (Rh) and Iridium
(Ir) to global metal revenue streams has risen steadily since 2016,
reflecting metal price increases rather than increased production,
and these metals are set to continue to find niche use cases, eg in
the Hydrogen economy in Polymer Electrolyte Membrane (PEM) Fuel
Cells ( Rh ) and Hydrogen production by PEM electrolysis (Ir). Both
of these metals are produced at the West Kytlim mine.
(Sources:)
(1: Recovering vehicle sales leading to increased auto-catalyst
demand;)
(Heraeus Platinum standard 2021, page 42.)
(2 Johnson Matthey presentation of results for the full year
ended 31 March 2021;)
(https://matthey.com/-/media/files/investors/presentation-fy-2020-21.pdf?la=en&hash=A0AAE5C0202CAE9B59F99B9C5A4AA206A656144F)
(3)
(https://www.engineeringnews.co.za/article/platinum-group-metals-outlook-constrained-supply-very-strong-demand-growth-wpic-2021-02-08)
(4) (WPIC Platinum Quarterly Q1 2021;)
(https://platinuminvestment.com/files/782345/WPIC_Platinum_Quarterly_Q1_2021.pdf)
(5 Eurasia Mining Interim statement 2020;)
(https://www.investegate.co.uk/eurasia-mining-plc--eua-/rns/interim-report/202009301656546679A/)
(6
https://www.mining.com/web/global-palladium-deficit-to-widen-in-2021-nornickel/)
Environmental Social and Governance ('ESG')
Eurasia is focused on environmentally friendly ('green') mining
solutions applied to its portfolio of green metals:
1) Battery Metals (Nickel, Copper and Cobalt) for EVs,
2) PGMs for catalysts and green hydrogen production.
The Company is also targeting top-tier ESG designed to achieve
corporate goals, while also making a meaningful contribution beyond
creating shareholder value and employment and paying taxes.
Eurasia targets the inclusion in more funds and indices beyond
the current ones (ex: L&G Future World ESG UK Index, Liberum's
climate portfolio and Solactive ESG indices).
The Company is committed to scope 1 to 3 carbon emissions
control:
Scope 1) modern fleet of machinery on site at West Kytlim,
switch to electric dragline for overburden removal from 2022
Scope 2) green suppliers selected (for example hydro energy
producers, partnership with ESG focused Rosgeo),
Scope 3) organisation wide low environmental impact, and role of
metals produced (Eurasia's up stream value chain) in controlling
Greenhouse Gas emissions.
This should result in institutional investor (like Blackrock,
Fidelity, Vanguard) smart money flow to scope 3 ESG compliant
companies.
Eurasia's mines produce green metals with industry leading ESG
footprint and the following distinctive features:
-- Buildings from wood sourced and milled on mine sites
-- No blasting used
-- Shallow open pits mined
-- Water fully recycled
-- No chemicals used
-- Low energy consumption
-- Annual rehabilitation done
This results in low operating cost (Q1 of the global cost
curve), creating superior value to our shareholders.
Eurasia is committed to attaining the highest Corporate Social
Responsibility and environmental management standards at its mines.
Areas mined at the West Kytlim Mine are remediated on a schedule
detailed within our mining, forestry and environmental permits. The
shallow open pit nature of the operation allows remediation by
refilling open pits with stripped overburden and top soils.
We are committed to ensuring the land disturbed by mining
activities is returned in a safe and stable landform that does not
cause long term damage to the environment. Our commitment to
restoring any damage to the environment is further demonstrated by
our commitment to reducing Green House Gas (GHG) emissions at our
mine sites.
Further highlights of the Company's top tier ESG focus
-- Protect the environment
o Minimise disturbance and mine footprint
o Complete rehabilitation of mine sites
o Reduce GHG emissions
-- Employee safety is a first priority;
o LTIFR remains at zero for both projects
o Ongoing COVID 19 protocols in place including medical
screening and awareness interviews
-- Build relationships with Stakeholders;
o Mine sites engaged with local communities
o Leveraging greater than 20 years' experience working in Russia
with continuous open communication with government and both local
and federal agencies.
People
Our team of professionals including former senior managers of
Norilsk Nickel, Rusal, Polyus, Rosgeo and Highland Gold are
managing a tier one asset base of Battery Metals and PGM. Our team
members have successfully launched mines within their previous
track record of operational achievements, as well as Eurasia's
three mines and enrichments plants launched successfully delivering
on our promises.
We have a strong in-house team of geologists, mining engineers,
EPC managers, metallurgists and M&A professionals.
Our team owns about 20% of Eurasia shares acquired for cash and
in lieu of cash compensation that provide proper motivation in line
with the best interests of all shareholders.
Partners
Eurasia started as a JV with Anglo American, the world's largest
PGM producer.
The Rosgeo projects add to our strong portfolio on top of our
Monchetundra, NKT and other Flanks deposits, financed with prudent
capital allocation, balancing minimal shareholder dilution and
engaging contractors with solid EPCF track records, resulting in a
strong financial position with zero debt and approximately $35m
cash as at 24 September 2021.
Rosgeo operates globally with Amerada Hess, Chevron, Conoco
Phillips, Exxon Mobil, ION, Schlumberger, BP plc, British Gas,
Buried Hill, Polyus, Polymetal, Rosatom and Eurasia as partners
& clients.
OPERATIONS UPDATE
West Kytlim operating mine, Ural Mountains
-- Near nine-fold increase in mine revenue compared to the same period last year
-- LTIFR remains at zero for the 2021 season
-- Three plants now operational as opposed to one in previous
seasons- eliminating single asset risk
-- Advancing the Power line to site to provide electrified overburden stripping
The phased increase in capacity for the West Kytlim mine has
seen a step change in the first half of this year from one plant to
three process plants commissioned in August. Whilst one plant was
in operation, 170,000 cubic meters PGM bearing gravels were
processed from 20 April to 31 July 2021. The Kluchiki work area
continues to provide high-grade gravels, backed up by two
operational sites within the Bolshaya Sosnovka area, where
stripping has commenced and will be reinforced with an electric
dragline in the future.
Covid protocols, including social distancing measures and
testing of workforce remain in place on site, despite a majority
double-vaccinated personnel. Four individuals have recovered from
Covid, having contracted in the general population while on leave,
and are back at work, following negative tests with no effect on
the operation.
West Kytlim is an ESG focussed mine site, meaning that adverse
environmental impact is kept to a minimum:
-- Limited use of reinforced concrete and asphalt
-- Mine buildings built mostly from timber milled on site
-- Open pits remediated when mined out, with full recovery 5 to 10 years post mining
-- Modern machinery with low carbon footprint.
Our plans to transition from diesel-based stripping to
renewable-electric powered stripping are now well advanced. The
board recognise the potential to remove the operational GHG
emissions associated with this stage of the mining process as
valuable in improving the mine's environmental credits with a
long-term goal of producing the worlds cleanest, i.e. lowest carbon
PGM ounces. Eurasia's experts have evaluated possible draglines in
the Urals area and throughout Russia for purchase and shipment to
site. The powerline and dragline, despite the initial capital
investment will eventually reduce operating costs at the mine
meaning there will not be a 'green premium' associated cost with
PGM ounces produced at the mine.
Although our focus at West Kytlim in 2021 was on the capacity
increase and associated stripping works to prepare both Kluchiki
and Bolshaya Sosnovka areas to feed 3 washing plants, we have also
been mining which resulted in an approximately 9-fold revenue
increase compared to 6 months of 2020.
Monchetundra, Monchetundra Flanks and the Rosgeo JV projects
The Company continues to drive the development at its
Monchetundra project and within the Rosgeo JV and provides the
following summary of events for the first half of this year;
-- Wardell Armstrong International engaged
-- Recalculation of MT and Flanks resources and pit outlines,
reflecting considerable metal price increase since FS of 2016,
integrated to Detailed Mining Plan as announced 15 September.
-- Block Modelling and open pit contouring and optimisation
complete for 6 of 9 Rosgeo JV projects.
Following the appointment of the new CEO at Kola subsidiary
company level we have made significant progress at both
Monchetundra and on the projects now available to the Company in
the Monchetundra Flanks, and the Rosgeo JV. The Monchegorsk area is
quite unique globally in having high levels of extensive previous
exploration and reporting, and numerous deposits of a similar
deposit style and metallurgical type in both the Monchegorsk and
Monchepluton Massifs, directly adjacent to a major infrastructural
corridor and in a mining friendly jurisdiction. Having now
established a first mover advantage we are executing on our Kola
assets, as we have done in the Urals exceeding our
expectations.
James Nieuwenhuys, Chief Executive
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2021
Note 6 months 12 months 6 months
to to to
30 June 31 December 30 June
2021 2020 2020
(unaudited) (audited) (unaudited)
GBP GBP GBP
Sales 4 425,965 937,962 48,012
Cost of sales (665,448) (1,131,954) (298,240)
------------------------------------------- ----- ------------- ------------- -------------
Gross loss (239,483) (193,992) (250,228)
Administrative costs (1,197,899) (1,889,793) (585,537)
Investment income 511 486 429
Finance costs (53,144) (100,886) (30,575)
Other gains 5 24,093 - -
Other losses 5 - (1,509,123) (429,171)
Loss before tax (1,465,922) (3,693,308) (1,295,082)
------------------------------------------- -----
Income tax expense - - -
------------------------------------------- ----- ------------- ------------- -------------
Loss for the period (1,465,922) (3,693,308) (1,295,082)
Other comprehensive (loss)/income:
Items that will not be reclassified
subsequently to
profit and loss:
NCI share of foreign exchange differences
on translation of foreign operations 1,293 181,670 56,344
Items that will be reclassified
subsequently to
profit and loss:
Parents share of foreign exchange
differences on translation
of foreign operations 4,116 382,686 139,340
Other comprehensive income for the
period, net of tax 5,409 564,356 195,684
------------------------------------------- ----- ------------- ------------- -------------
Total comprehensive loss for the
period (1,460,513) (3,128,952) (1,099,398)
=========================================== ===== ============= ============= =============
Loss for the period attributable
to:
Equity holders of the parent (1,351,127) (3,080,336) (1,034,870)
Non-controlling interest (114,795) (612,972) (260,212)
(1,465,922) (3,693,308) (1,295,082)
------------------------------------------- ----- ------------- ------------- -------------
Total comprehensive loss for the
period attributable to:
Equity holders of the parent (1,347,011) (2,697,650) (895,530)
Non-controlling interest (113,502) (431,302) (203,868)
(1,460,513) (3,128,952) (1,099,398)
------------------------------------------- ----- ------------- ------------- -------------
Basic and diluted loss (pence per
share) (0.05) (0.11) (0.04)
Condensed consolidated statement of financial position
as at 30 June 2021
Note At 30 June At 31 December At 30 June
2021 2020 2020
(unaudited) (audited) (unaudited)
GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 6 4,578,844 4,295,908 4,521,464
Assets in the course of construction 124,303 28,957 33,547
Intangible assets 7 792,425 696,504 823,241
Investments in joint ventures 8 368,447 - -
--------------------------------------- ----- -------------- --------------- --------------
Total non-current assets 5,864,019 5,021,369 5,378,252
--------------------------------------- ----- -------------- --------------- --------------
Current assets
Inventories 360,630 13,695 85,012
Trade and other receivables 9 450,659 285,081 445,858
Current tax assets 5,348 5,307 5,820
Cash and bank balances 16,067,991 5,404,101 50,896
--------------------------------------- ----- -------------- --------------- --------------
Total current assets 16,884,628 5,708,184 587,586
--------------------------------------- ----- -------------- --------------- --------------
Total assets 22,748,647 10,729,553 5,965,838
======================================= ===== ============== =============== ==============
EQUITY
Capital and reserves
Issued capital 10 51,080,629 37,812,856 31,031,688
Reserves 11 3,985,486 3,981,370 3,756,507
Accumulated losses (31,555,180) (30,204,053) (28,616,131)
--------------------------------------- ----- -------------- --------------- --------------
Equity attributable to equity holders
of the parent 23,510,935 11,590,173 6,172,064
Non-controlling interest (1,872,364) (1,758,862) (1,531,428)
--------------------------------------- ----- -------------- --------------- --------------
Total equity 21,638,571 9,831,311 4,640,636
--------------------------------------- ----- -------------- --------------- --------------
LIABILITIES
Non-current liabilities
Lease liabilities 13 405,494 425,923 594,086
Provisions 15 99,422 50,186 59,217
--------------------------------------- ----- -------------- --------------- --------------
Total non-current liabilities 504,916 476,109 653,303
--------------------------------------- ----- -------------- --------------- --------------
Current liabilities
Borrowings 12 32,038 31,684 44,051
Lease liabilities 13 113,059 101,007 105,535
Trade and other payables 14 443,943 287,491 508,032
Provisions 15 16,120 1,951 14,281
Total current liabilities 605,160 422,133 671,899
--------------------------------------- ----- -------------- --------------- --------------
Total liabilities 1,110,076 898,242 1,325,202
--------------------------------------- ----- -------------- --------------- --------------
Total equity and liabilities 22,748,647 10,729,553 5,965,838
======================================= ===== ============== =============== ==============
Condensed statement of changes in equity
for the six months ended 30 June 2020
Attributable to owners of the parent
---------------------------------------------------------------------------------
Foreign Total
currency attributable
Share Share Deferred Other translation Accumulated to owners Non-controlling Total
Note capital premium shares reserves reserve losses of parent interest equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1 January
2020 2,693,757 20,995,669 7,025,483 3,958,087 (325,342) (27,581,261) 6,766,393 (1,327,560) 5,438,833
Issue of ordinary
shares
on exercise of
warrants 22,018 203,657 - (674) - - 225,001 - 225,001
Issue of shares under
employee share option
plan 9,000 82,104 - (14,904) - - 76,200 - 76,200
Transaction with
owners 31,018 285,761 - (15,578) - - 301,201 - 301,201
----------------------- ----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- -------------
Loss for the period - - - - - (1,034,870) (1,034,870) (260,212) (1,295,082)
Other
comprehensive
loss
Exchange differences
on translation
of foreign operations - - - - 139,340 - 139,340 56,344 195,684
Total comprehensive
income - - - - 139,340 (1,034,870) (895,530) (203,868) (1,099,398)
Balance at 30 June
2020 2,724,775 21,281,430 7,025,483 3,942,509 (186,002) (28,616,131) 6,172,064 (1,531,428) 4,640,636
======================= =========== ============ =========== =========== ============ ============== ============= ================ =============
Condensed statement of changes in equity
for the six months ended 30 June 2021
Attributable to owners of the parent
---------------------------------------------------------------------------------
Foreign Total
currency attributable
Share Share Deferred Other translation Accumulated to owners Non-controlling Total
Note capital premium shares reserves reserve losses of parent interest equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1 January
2021 2,758,702 28,028,671 7,025,483 3,924,026 57,344 (30,204,053) 11,590,173 (1,758,862) 9,831,311
Issue of ordinary
share
capital for cash 53,307 14,072,982 - - - - 14,126,289 - 14,126,289
Share issue cost - (858,516) - - - - (858,516) - (858,516)
Transaction with
owners 53,307 13,214,466 - - - - 13,267,773 - 13,267,773
----------------------- ----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- -------------
Loss for the period - - - - - (1,351,127) (1,351,127) (114,795) (1,465,922)
Other
comprehensive
loss
Exchange differences
on translation
of foreign operations - - - - 4,116 - 4,116 1,293 5,409
Total comprehensive
income - - - - 4,116 (1,351,127) (1,347,011) (113,502) (1,460,513)
Balance at 30 June
2021 2,812,009 41,243,137 7,025,483 3,924,026 61,460 (31,555,180) 23,510,935 (1,872,364) 21,638,571
======================= =========== ============ =========== =========== ============ ============== ============= ================ =============
Condensed consolidated statement of cash flows
for the six months ended 30 June 2021
6 months 12 months 6 months
to to to
30 June 31 December 30 June
2021 2020 2020
(unaudited) (audited) (unaudited)
GBP GBP GBP
Cash flows from operating activities
Loss for the period (1,465,922) (3,693,308) (1,295,082)
Adjustments for:
Depreciation and amortisation of
non-current assets 289,850 205,200 54,045
Finance costs recognised in profit
or loss 53,144 100,886 30,575
Investment revenue recognised in
profit or loss (511) (486) (429)
Loss on impairment of financial
assets
Rehabilitation cost recognised in
profit or loss 61,643 (14,671) 649
Net foreign exchange (profit)/loss (24,093) 1,509,123 429,171
(1,085,889) (1,893,256) (781,071)
Movements in working capital
Increase in inventories (346,782) (12,152) (83,225)
Increase in trade and other receivables (163,307) (130,219) (278,022)
Increase/(decrease) in trade and
other payables 155,217 (65,555) 149,992
Cash used in operations (1,440,761) (2,101,182) (992,326)
Net cash used in operating activities (1,440,761) (2,101,182) (992,326)
------------------------------------------ ------------- ------------- -------------
Cash flows from investing activities
Interest received 511 486 429
Invested to acquire interest in
joint venture (368,447) - -
Payments for property, plant and
equipment (629,005) (687,167) (158,630)
Payments for other intangible assets (92,774) (9,599) (1,869)
Net cash used in investing activities (1,089,715) (696,280) (160,070)
------------------------------------------ ------------- ------------- -------------
Cash flows from financing activities
Proceeds from issues of equity shares 14,126,289 7,934,789 301,201
Payment for share issue costs (858,516) (413,359) -
Proceeds from borrowings - 300,000 -
Repayment of borrowings - (306,341)
Repayment of lease liability (13,971) (81,491) -
Interest paid (51,966) (96,965) (27,059)
Net cash generated by financing
activities 13,201,836 7,336,633 274,142
------------------------------------------ ------------- ------------- -------------
Net increase/(decrease) in cash
and cash equivalents 10,671,360 4,539,171 (878,254)
Effects of exchange rate changes
on the balance of
cash held in foreign currencies (7,470) (55,083) 9,137
Cash and cash equivalents at the
beginning of period 5,404,101 920,013 920,013
Cash and cash equivalents at the
end of the period 16,067,991 5,404,101 50,896
========================================== ============= ============= =============
1. General information
Eurasia Mining plc (the "Company" or the "Group") is a public
limited company incorporated and domiciled in Great Britain with
its registered office at International House, 42 Cromwell Road,
London SW7 4EF, United Kingdom and principal place of business at
Clubhouse Bank, 1 Angel Court, EC2R 7HJ. The Company's shares are
listed on AIM, a 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 2020, 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 unqualified. 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 Accounting Standards in conformity
with the requirements of the Companies Act 2006. These condensed
consolidated interim financial statements for the period ended 30
June 2021 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 2020.
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 (GBP), 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
2020.
4. Revenue
6 months 12 months 6 months
to to to
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Sale of platinum and other metals 425,965 937,962 48,012
425,965 937,962 48,012
=================================== ========= ============ =========
5. Other gains and losses
6 months 12 months 6 months
to to to
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Gains
Net foreign exchange gain 24,093 - -
24,093 - -
Losses
Net foreign exchange loss (429,171) (1,509,123) (429,171)
---------------------------- ----------- ------------- -----------
(429,171) (1,509,123) (429,171)
--------------------------- ----------- ------------- -----------
(405,078) (1,509,123) (429,171)
=========================== =========== ============= ===========
6. Property, plant and equipment
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Net book value at the beginning
of period 4,295,908 3,929,037 3,929,037
Additions 533,983 1,288,200 854,922
Depreciation (289,850) (205,200) (54,045)
Exchange differences 38,803 (716,129) (208,450)
Net book value at the end of period 4,578,844 4,295,908 4,521,464
====================================== =========== ============ ===========
7. Intangible assets
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Net book value at the beginning
of period 696,504 854,995 854,995
Additions 92,774 9,599 1,869
Exchange differences 3,147 (168,090) (33,623)
Net book value at the end of period 792,425 696,504 823,241
====================================== ========= ============ ==========
Intangible assets represent capitalised costs associated with
Group's exploration, evaluation and development of mineral
resources.
8. Investments in joint venture
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Investments in joint venture
Investments in the period 368,447
368,447 - -
------------------------------ --------- ------------ --------
Investment in joint venture is an investment made so far to
acquire in stages 75% interests from Rosgeo, a Russian registered
and state funded exploration Company in the several new exploration
assets. These assets will be held by new joint venture companies
where Rosgeo will retain 25%.
9. Trade and other receivables
30 June 31 December 30 June
2021 2020 2020
Trade receivables 495 - 47,717
Prepayments 22,707 75,041 34,506
Other receivables 427,457 210,040 363,635
450,659 285,081 445,858
==================== ========= ============ =========
The fair value of trade and other receivables is not materially
different to the carrying values presented. None of the receivables
are provided as security or past due.
10. Share capital
30 June 31 December 30 June
2021 2020 2020
Issued ordinary shares with a
nominal value of 0.1p:
Number 2,724,774,624 2,693,756,753 2,724,774,624
Nominal value (GBP) 2,724,775 2,693,757 2,724,775
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 (GBP) 7,025,483 7,025,483 7,025,483
Deferred shares have the following rights and restrictions
attached to them:
- they do not entitle the holders to receive any dividends and
distributions;
- they do not entitle the holders to receive notice or to attend
or vote at General Meetings of the Company;
- on return of capital on a winding up the holders of the
deferred shares are only entitled to receive the amount paid up on
such shares after the holders of the ordinary shares have received
the sum of 0.1p for each ordinary share held by them and do not
have any other right to participate in the assets of the
Company.
The increase in the Company's issued share capital during the
reporting period occurred as follows:
Ordinary shares Number of Share Share
shares capital premium
GBP GBP
Balance at 1 January 2020 2,758,701,681 2,758,702 28,028,671
Share placing for cash 53,306,751 53,307 14,072,982
Cost of issue of shares - (858,516)
Balance at 30 June 2021 2,812,008,432 2,812,009 41,243,137
==================================== =============== =========== ============
Deferred shares Number of Deferred
deferred share
shares capital
GBP
Balance at 1 January and 30 June
2021 143,377,203 7,025,483
==================================== =============== =========== ============
11. Reserves
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Capital redemption reserve 3,539,906 3,539,906 3,539,906
Foreign currency translation reserve 61,460 57,344 (186,002)
Equity-based payment reserve 384,120 384,120 402,603
3,985,486 3,981,370 3,756,507
====================================== =========== ============ ===========
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 equity-based payments reserve represents a reserve arisen on
(i) the grant of share options to employees under the employee
share option plan and (ii) on issue of warrants under terms of
professional service agreements.
12. Borrowings
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Current
Unsecured loan 32,038 31,684 44,051
----------------- -------- ------------ --------
32,038 31,684 44,051
================ ======== ============ ========
In 2017 the Group entered into unsecured loan facility to borrow
up to 57 million Russian Rubbles (RR) at 14% per annum, from Region
Metal, the then contractor and the West Kytlim mine operator. The
Group had drawn RR 4.18 million and repaid RR0.9 million by 31
December 2020. As the contractor's arrangements had been
discontinued the Group has no intention to utilise any more funds
from this facility. The loan is for repayment in 2021.
No borrowing costs were capitalised in 2021 and 2020.
13. Lease liabilities
The Group leases certain of its plant and equipment. The average
lease term is 4.5 years (2019: no lease). The Group has option to
purchase the equipment for a nominal amount at the maturity of the
finance lease. The Group's obligation under finance leases are
secured by the lessor's title to the leased assets.
Interest rates underlying all obligations under finance leases
are fixed at respective contract dates ranging from 21.9% to 23.5%
per annum.
Minimum lease payments 30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Less than one year 203,647 201,392 233,311
Between one and five years 511,819 572,791 819,682
More than five years - - -
--------------------------------
715,466 774,183 1,052,993
Less future finance charges (196,913) (247,254) (353,372)
--------------------------------- ----------- ------------ -----------
Present value of minimum lease
payments 518,553 526,929 699,621
================================= =========== ============ ===========
Present value of minimum lease 30 June 31 December 30 June
payments
2021 2020 2020
GBP GBP GBP
Less than one year 113,059 101,007 105,535
Between one and five years 405,494 425,923 594,086
More than five years - - -
Present value of minimum lease
payment s 518,553 526,930 699,621
================================= =========== ============ ===========
14. Trade and other payables
30 June 31 December 30 June
2021 2020 2020
Trade payables 232,746 - 195,443
Accruals 23,051 101,090 38,246
Social security and other taxes 44,594 18,559 37,936
Other payables 143,552 167,842 236,407
443,943 287,491 508,032
================================== ========= ============ =========
The fair value of trade and other payables is not materially
different to the carrying values presented. The above listed
payables were all unsecured.
15. Provision
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Long term provision:
Environment rehabilitation 99,422 50,186 59,217
------------------------------------------ ----------- ------------ -----------
Short term provision:
Environment rehabilitation 16,120 1,951 14,281
------------------------------------------ ----------- ------------ -----------
115,542 52,137 73,498
========================================= =========== ============ ===========
Six month 12 month Six month
Movement in provision to to to
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
At 1 January 52,137 78,103 78,103
Recognised in the period 60,292 15,545 649
Utilised in the period - (11,986) -
Reduction resulting from re-measurement
or settlement without cost - (19,301) -
Unwinding of discount and effect
of changes in the discount rate 1,178 3,921 -
Exchange difference 1,935 (14,145) (5,254)
At the end of the period 115,542 52,137 73,498
========================================== =========== ============ ===========
Provision is made for the cost of restoration and environmental
rehabilitation of the land disturbed by the West Kytlim mining
operations, based on the estimated future costs using information
available at the reporting date.
The provision is discounted using a risk-free discount rate of
from 6.6% to 6.88% (2020: 3.87% to 5.08%) depending on the
commitment terms, attributed to the Russian Federal Bonds.
Provision is estimated based on the sub-areas within general
West Kytlim mining licence the company has carried down its
operations on by the end of the reporting period. Timing is
stipulated by the forestry permits issued at the pre-mining stage
for each of sub-areas. Actual costs in respect of the long-term
provision recognised in 2021 will be incurred within 2022-2025.
16. Commitments
At the time of the award of the Monchetundra mining license a
royalty payment was calculated by the Russian Federal Reserves
Commission. 20% of this payment was paid in December of 2018 and
the remaining 80%, or Rub16.68 million (approximately GBP160,000)
to be paid by November 2023.
During 2020 the Group entered into several lease agreements to
lease mining plant and equipment. As at 31 December 2020 the
average lease term was 4.5 years and present value of minimum lease
payments GBP518,553 (2019: GBPnil).
In March 2021 the Group entered into a cooperation (joint
venture) agreement with Rosgeo regarding exploration assets in the
proximity of Monchegorsk on Kola Peninsula. The Group will acquire
an initial 75% stake in each asset, which will be assigned to
separate joint ventures.
The Group's outstanding commitments under the agreement are
Rub37.2 mln (approximately GBP3.7mln) payable in stages conditional
to licensing and permitting.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR DKKBDABKDFCN
(END) Dow Jones Newswires
September 30, 2021 12:21 ET (16:21 GMT)
Eurasia Mining (LSE:EUA)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Eurasia Mining (LSE:EUA)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
