TIDMGBGR
RNS Number : 9213L
GoldBridges Global Resources PLC
30 April 2015
30 April 2015
GoldBridges Global Resources Plc
("GoldBridges" or the "Company")
Audited results for the year ended 31 December 2014
GoldBridges, the open pit and underground gold mining and
development company, is pleased to announce the release of its
audited results.
Highlights
Company Highlights
-- Competent Person's Report published on Sekisovskoye,
including updated JORC resource and reserve statement - validates
both ore body and underground development strategy;
-- JORC ore reserves of 2.26Moz, JORC mineral resources (indicated and inferred) of 5.14Moz;
-- Admission to Main Market of London Stock Exchange by Standard Listing in December 2014
-- Post period end: awarded tender to perform further
confirmatory testing to gain sub-soil user licence to the adjacent
Karasuyskoye Ore Fields;
-- Successful resolution in relation to the recovery of monies
from the Akmola Gold investment, US$2.7m received.
-- Successfully completed Placings, raising net proceeds of
US$22.7m in 2014 and a further US$5.1m in April 2015, to further
develop the Company's strategic plans and provide additional
working capital;
Financial Highlights
-- 2014 Revenue of US$35.2m (2013: US$42.4m), reflecting lower gold prices;
-- 2014 gold sales of 27,959oz (2013: 29,712oz);
-- Finished gold stocks increased to 7,307oz (2013: 2,024oz);
-- Average gold price achieved (including silver as a
by-product), US$1,258/oz (2013: US$1,427/oz);
-- Reduction in administrative expenses to US$8.2m (2013:
US$16.5m), due to efficiency and organisational savings instigated
in 2013;
-- 2014 adjusted EBITDA of positive US$5.3m (2013: negative US$0.59m).
Operational Highlights
-- Gold poured 32,994oz, (2013: 30,669oz) a 7.5% increase ;
-- 2014 Average gold grade of 1.71g/t, (2013: 1.61g/t) ;
-- Operating cash cost decreased to US$834/oz (2013:US$903/oz);
-- Gold recovery rate of 83.3% (2013:84.3%) is expected to
improve as more higher grade ore is processed;
-- 2014 capital expenditure paid of US$26.0m (2013: US$7.4m).
Aidar Assaubayev, CEO of GoldBridges, commented:
"2014 was a significant year for GoldBridges, with our move to
the main market a reflection of the considerable progress we have
made in the last two years. We also delivered a robust operational
and financial performance during 2014. From a technical
perspective, we had a very productive year in delivering our
completed independent competent person's report, which demonstrated
significantly increased JORC reserves and resources and our plan
for further development of the Sekisovskoye underground mine. We
look forward to providing updates on our progress in that regard as
the year progresses."
For further information please contact:
GoldBridges Global Resources Plc
Louise Wrathall
+44 (0) 207 932 2456
Strand Hanson (Financial Adviser and Joint Broker)
Andrew Emmott / James Spinney / Ritchie Balmer
+44 (0) 207 409 3494
Cantor Fitzgerald Europe (Joint Broker)
Stewart Dickson / Jeremy Stephenson
+44 (0) 207 894 7000
Bell Pottinger (Financial PR)
Daniel Thole / Marianna Bowes / Richard Crowley
+44 (0) 203 772 2500
Information on the Company
GoldBridges is a gold mining, exploration and development group
based in Kazakhstan. Whilst the Company was initially established
to exclusively develop and operate the Sekisovskoye gold and silver
mine in the East Kazakhstan Region, it is now actively targeting
additional gold mining opportunities in Kazakhstan. This includes
the adjacent prospective Karasuyskoye Ore Fields, on which
GoldBridges was recently awarded the tender to perform further
confirmatory testing in order to gain the sub-soil user
licence.
The Company holds a 100 per cent shareholding in DTOO
Gornorudnoe Predpriatie Sekisovskoye ("DGPS") which holds a subsoil
use contract in relation to the Sekisovskoye deposit, covering a
total area of 0.855km(2). The subsoil use contract for Sekisovskoye
is valid until 2020 and the Company currently intends to seek to
extend the contract in accordance with its terms. The Company also
holds a 100 per cent shareholding in DTOO Altai Ken-Bayitu LLP
which owns and operates the processing plant at the Sekisovskoye
deposit. The Sekisovskoye deposit is located at the village of
Sekisovka, approximately 40km north of the town of Ust-Kamenogorsk,
the capital city of the East Kazakhstan Region. The current
operation is focused on mining two open pits where the
near-vertical deposits extend to the surface. The open pits are
nearing their end of life in 2015, and the Company is developing an
underground extension to exploit the deposits to depth.
The Company intends that the Sekisovskoye deposit shall become a
selective-mining underground operation. As at 31 May 2014, the
Company's proven and probable reserves consisted of 2.3Moz of gold
and 3.0Moz of silver, and the Company's measured, indicated and
inferred resources consisted of 5.1Moz of gold and 3.5Moz of
silver, in each case as classified in accordance with JORC.
In the year ended 31 December 2014, the Company's consolidated
revenue was US$35.2 million and its EBITDA was US$5.3 million.
Chairman's Statement
I am pleased to report that the plans for the future development
of the Sekisovskoye mine are now well developed, with significant
milestones achieved in 2014, including the publication of a
Competent Persons Report (CPR) with updated reserves and resources
in November. This was followed by the Company's shares being
admitted to dealing on the standard segment of the London Stock
Exchange in December, increasing the profile and attractiveness of
GoldBridges to investors, both current and future, as well as
increasing the profile and reputation of the Company in
Kazakhstan.
The Sekisovskoye CPR was seen as a key component forming the
basis of building investor confidence and underpinning any future
funding requirements that the Company is seeking in order to fulfil
its development plans. At present, underground production is being
carried out in addition to open-pit mining, although it has now
been decided that it makes economic sense to phase out the open pit
mining during Q3 2015. At this point, all production will be from
the underground mine, with feed to the processing plant being
complemented by the use of existing ore stockpiles. The detailed
development plans and funding options are currently being finalised
and will lead to an increase in the production capacity of the
underground workings. During the year, a significant part of the
funding raised from the Placings undertaken in January and February
2014 which raised cash resources of $22.7m was used to enhance and
develop the current underground operations. Further funding of
US$5.0m was raised in April 2015 to provide interim funding for
working capital and to progress the development of the underground
mine.
Gold poured for the full year increased by 7.5% to 32,994 ounces
(2013: 30,669 oz), with an increasing amount being delivered from
the underground operations. During the year, the increased level of
activity was slowed by the flow of work during the processing plant
improvements as well as by future development work. Our 2014 gold
sales amounted to 27,959 ounces (2013: 29,712 ounces), a decrease
of 1,753 ounces. However, there was an increase in the inventories
of finished goods which increased by 5,283oz to 7,307oz at the year
end. The significant difference from the prior year has been in the
price of gold, with an average market price of gold in 2014 of
US$1,198 per ounce, compared to an average market price in 2013 of
US$1,418 per ounce, a 15% reduction.
This has had an inevitable impact on profitability, particularly
in the second half of the year, with the gold price finishing the
year at US$1,183 per ounce. The actual average price the Company
achieved (including silver as a by-product was US$1,258 per ounce
(2013: US$1,427). The current consensus is that gold will trade at
an average between US$1,200 and US$1,235 per ounce throughout
2015.
Given the economic model currently being developed by the
Company, we feel that the Company has sufficient headroom in
profitability to cope with any further downward pressure on gold
prices.
As reported last year, the Company acquired the geological data
in relation to the Karasuyskoye Ore Fields, located adjacent to the
current operations at Sekisovskoye. The Company successfully
obtained the necessary permits to exploit the site and conduct
further testing to validate the initial resource estimates. The
Company is expecting to conclude testing and obtain the sub-soil
user licence for the area in 12-18 months following the completion
of further testing.
I am also pleased to report that the final material legacy issue
was resolved in 2014, resulting in the Company receiving US$2.27m,
being the total amount claimed (which includes interest and costs).
This amount related to the settlement of an outstanding claim made
against Akmola Gold LLP for the return of funds invested by the
previous management in the project.
2015 will be a year of transition and development for the
Company with the Sekisovskoye operation starting on the road to
achieving its full potential, and the development of the
Karasuyskoye project providing a future stepping stone for greater
growth in the Company's fortunes.
Finally, may I thank all our employees and our management team
for their hard work and our shareholders, for their continued
support.
Kanat Assaubayev
Chairman
Chief Executive Officer and Operational Review
We are pleased to report a solid performance in 2014, against
the backdrop of falling gold prices. We have taken significant
steps forward this year in planning and development in relation to
the efficient exploitation of the higher grade underground reserves
at Sekisovskoye, which is a key factor in delivering significant
shareholder value in the future.
During 2014, our operational performance at Sekisovskoye was
robust and, importantly, the proportion of ore from the underground
mine increased, as did the grade of ore mined from the underground
operations. This bodes well as we continue with the transition from
open pit to a solely underground gold mine. In this regard, our
technical consultants, Venmyn Deloitte, completed our Sekisovskoye
Competent Persons Report ('CPR'). This comprised JORC compliant
reserves and resources, financial assumptions and valuation
scenarios for our development project. We also made positive
progress in receiving permits for the Karasuyskoye Ore Fields and,
in 2015, we announced that we had been successful in receiving
permits for further testing which will lead to a subsoil user
licence in the near future.
Sekisovskoye Gold Mine - Our Operational Track Record
The operational performance of the Company's Sekisovskoye gold
mine during 2014, against the prior year and against budget, is
provided below. The key operational statistics of the mine
operation are as follows:
Mining - Open-pit
----------------- --------
2014 2013
----------------- --------
Ore mined T 570,991 705,257
----------------- --------
Gold grade g/t 1.26 1.39
----------------- --------
Silver grade g/t 1.89 2.49
----------------- --------
Contained gold oz. 23,050 31,621
----------------- --------
Contained silver oz. 34,620 56,387
----------------- --------
Mining - Underground
------- -------
2014 2013
------- -------
Ore mined T 82,045 63,572
------- -------
Gold grade g/t 2.96 3.50
------- -------
Silver grade g/t 4.05 5.27
------- -------
Contained gold oz. 7,807 7,157
------- -------
Contained silver oz. 10,680 11,139
------- -------
Mining - Enriched ore
------- -----
2014 2013
------- -----
Ore mined T 34,000 -
------- -----
Gold grade g/t 4.16 -
------- -----
Silver grade g/t 5.72 -
------- -----
Contained gold oz. 4,547 -
------- -----
Contained silver oz. 6,253 -
------- -----
Mineral processing Budget
Budget Actual - % Actual
-------------- -------- ------------------- --------
2014 2014 2014 2013
-------------- -------- ------------------- --------
Crushing T 735,000 726,427 98 700,421
-------------- -------- ------------------- --------
Milling T 735,000 728,620 99 701,361
-------------- -------- ------------------- --------
Gold grade g/t 1.3 1.71 131 1.61
-------------- -------- ------------------- --------
Silver grade g/t 2.19 2.37 108 2.16
-------------- -------- ------------------- --------
Contained gold oz. 30,720 39,798 130 36,388
-------------- -------- ------------------- --------
Contained silver oz. 51,752 55,603 107 48,782
-------------- -------- ------------------- --------
Gold recovery per cent. 83 83.3 100 84.3
-------------- -------- ------------------- --------
Silver recovery per cent. 74 74.4 101 71.6
-------------- -------- ------------------- --------
Gold poured oz. n/a 32,994 n/a 30,669
-------------- -------- ------------------- --------
Silver poured oz. n/a 41,390 n/a 34,902
-------------- -------- ------------------- --------
In 2014, 25.3% of the total 30,857 oz of contained gold in the
ore was mined from the underground operation. The average gold
grade from the underground mine during 2014 was 2.96g/t which is
expected to rise as higher grade ore is accessed through continued
underground development. The higher percentage of underground ore
helped to increase the average grade from 1.61g/t in 2013 to
1.71g/t in the current year. Recovery fell from 84.3% in 2013 to
83.3% in 2014. However, it is expected to improve as the higher
grade ore is processed and is budgeted to be in the region of
84%.
The Sekisovskoye JORC probable reserve gold grade, as reported
in the Competent Person's Report released to the market on 17
November 2014, is 4.09g/t. The Company is increasing the mined
grade towards the reserve grade. At present the mining operations
are gradually moving towards the main ore body from the lower grade
peripheral ore.
During the year, the Company increased the number of employees
working in the underground mine and, additional mining equipment
was purchased to increase the future contributions of ore
production from the underground mine. This is expected to provide a
greater contribution as the scale of the operation is expanded.
During the period, a preliminary review of the gold processing
plant was conducted that highlighted opportunities to improve the
performance of the plant and detailed investigations will be
initiated to determine how these may be implemented.
Sekisovskoye Independent CPR - laying the foundations for our
underground development plans
In Q4 2013, mining consultants Venmyn Deloitte commenced work on
a Competent Person's Report ("CPR") which was to estimate JORC
compliant resources and reserves for Sekisovskoye, as well as
providing cost and valuation scenarios for the underground
development project. This work was completed in Q4 2014 and has
enabled us to set out our future plans for this development
project.
The Company has used the information obtained in the CPR to
develop its plans in relation to the expansion of underground
operations at Sekisovskoye. At present, it is exploring two options
in relation to the development of the underground mine. These are
(a) a shaft based approach as documented in the CPR and (b) a
development based approach, with the expansion of the existing
decline and a secondary decline being strategically built to
significantly increase the quantity of ore mined in an economically
efficient way. Both approaches are expected to result in a similar
net present value of future cash flows. However, the essential
difference will be in the timings of cash flows needed to fund the
capital expenditure for the mine development.
Underground gold mining particularly, in Australia, has advanced
in the use of the decline approach which is popular with a large
number of mining companies. In this regard, the Company is in
discussions with an international contract mining firm with
extensive experience in the industry in relation to costings and
assistance in developing a mining plan to assess the feasibility of
developing the underground mine using this approach.
The CPR estimated probable ore reserves of 2.26Moz from 17.25Mt
at 4.09g/t Au from surface (approximately 350m above sea level) to
400m below sea level. The previous ore reserve estimate in 2011 was
for 0.27Moz of gold.
Mineral resources (both indicated and inferred) now total
5.14Moz - an increase from 1.8Moz in 2011. Additional exploration
results of 3.3Moz were also identified which, with further
drilling, may be upgraded to mineral resources. These resource and
exploration result estimates were based on an extensive drilling
programme which represents more than 170,000m of drilling.
Increasing future gold production
The current Sekisovskoye mine has a conventional carbon-in-leach
(CIL) gold recovery plant with a processing capacity of
0.85Mt/year. A small incremental processing plant expansion is
planned to be completed by 2018, which will increase throughput
from 0.85Mt/year to 1Mt/year. The expansion will be through
debottlenecking of existing equipment and the addition of some new
equipment to support the upgrade.
Through accessing the higher grade ore reserves in the
underground mine, which are estimated at 4.09g/t, against the 2014
average grade delivered to the mill of 1.81g/t Au, utilising the
full processing plant capacity and incrementally increasing it, the
Company is well placed to increase its annual gold production to in
excess of 100,000oz by 2018 under the current plans.
From 2015 onwards, the processing plant is expected to produce a
gold doré with an overall gold recovery of 84% and an associated
silver recovery of 75%. This is commensurate with the metallurgical
test work that has been undertaken and is broadly in line with
operational performance to date. Over the life of the mine,
Sekisovskoye is expected to produce 1.89Moz of gold, with total
associated silver production of 2.72Moz.
The CPR financial outcomes based on the JORC compliant Probable
Reserve, the initial capital investment and forecast operating
costs indicate a robust project for the underground mine
development at Sekisovskoye. The Net Present Value (after tax),
using a discount rate of 9.3% and a prevailing gold price at that
time of US$1,273/oz, was estimated at US$286.7m, with a 64.4% IRR.
Additional financial modelling has confirmed the project remains
viable at gold prices which are significantly below current prices,
as demonstrated in the following table. Importantly, this table
demonstrates that the project remains NPV positive under low gold
price scenarios.
Gold Silver
price price
(US$/oz.) (US$/oz.) NPV (US$m)
----------- ----------- -----------
750 15 55.2
----------- ----------- -----------
900 17 135.2
----------- ----------- -----------
1050 18 203.2
----------- ----------- -----------
1200 19 257.8
----------- ----------- -----------
1273 19.7 286.7
----------- ----------- -----------
1300 20 295.6
----------- ----------- -----------
1400 21 325.5
----------- ----------- -----------
The upside opportunity at the Sekisovskoye Mine is related to
further exploration drilling to upgrade the existing multimillion
ounce gold exploration targets to Mineral Resources and to
potentially upgrade the existing Mineral Resources to Ore Reserves.
This may justify a further expansion of the processing plant or an
increase in the mine life. The option of a feasibility study for a
2Mtpa mine in the future, producing more than 200,000oz per year of
gold is being considered, based on the increase in the overall
resource and the large volume of prospective exploration targets
identified.
Karasuyskoye - our long term development plan
In 2013, GoldBridges reported that it had acquired a very
extensive technical database that covered the Karasuyskoye Ore
Fields area, a land package of 198km(2) adjacent to
Sekisovskoye.
We are pleased to report that during 2014 we made significant
progress in terms of obtaining drilling permits for Karasuyskoye
and in January 2015, were given further rights to perform
confirmatory drilling. This is expected to lead to the award of a
licence and contract for the subsoil rights by the relevant
authorities in Kazakhstan. The final subsoil licence terms and
conditions, including the new financial incentives now offered
specifically to GoldBridges through the state programme on forced
industrial-innovative development (SFIID), are expected to be
finalised in the near term. These additional terms are expected to
include investment incentives and tax reductions as previously
announced.
The data acquired indicates that there are several mineralised
zones and leads the Company to believe that Karasuyskoye has the
potential to contain significant gold resources. The Company is to
commence validation work of this geological data. This work will
facilitate the preparation of an independent CPR to international
standards, and the Company will work on this programme throughout
2015-16.
On completion of the CPR, the Company envisages progressing
towards mining within the Karasuyskoye Ore Fields, primarily using
cash generated from existing operations There is also the potential
to use the Company's existing open pit assets once Karasuyskoye
becomes operational.
Move to Main Market
In December 2014, we moved our listing from AIM to the Main
Market of the London Stock Exchange with a Standard Listing. The
progression to the Main Market is a natural step in the Company's
growth cycle as a quality Kazakh company and demonstrates our
alignment with and commitment to the London Investor base. The move
also reflects our focus on meeting best practise corporate
governance standards.
Looking to 2015
2015 will be a busy year for the Company as it plans to make
significant progress to lay the foundations for its growth. The
Company is close to finalising its approach in relation to the
funding, and the technical approach to be taken to develop the
Sekisovskoye mine and shareholders will be updated in due course.
Given the robust economics of the project the Company is positive
of remaining profitable against an uncertain future gold price.
The Company is very positive about the future potential of the
Karasuyskoye project and will be progressing this asset in parallel
to Sekisovskoye. The Company will keep shareholders informed of the
exploration and appraisal progress on this asset during the course
of the year.
Financial performance review 2014
During 2014, Sekisovskoye poured 32,994oz of gold (2013:
30,669oz). A total of 27,959oz (2013: 29,712oz) were sold in 2014
at an average price of US$1,198 (2013: US$1,418) per ounce. Revenue
totalled US$35.2m (2013: US$42.4m) and was lower than 2013 due to
both reduced gold sales and the lower gold price. In addition, the
Company sold obsolete and surplus parts for a total of US$1.1m, and
this amount is included within other income. There were no other
material items of revenue.
The total cash cost of production, which includes administrative
costs but excludes depreciation and provisions, amounts to
US$1,084/oz (2013: US$1,309/oz). The operating cash cost amounts to
US$834/oz (2013: US$903/oz). Additional cost saving measures are
being put in place to further reduce the costs, however, the major
impact will be the higher grade ore being accessed in the future
that is expected to lead to higher revenues and a decrease in the
unit cash costs.
The 2014 earnings before interest, tax, depreciation and
amortisation (EBITDA), excluding exceptional items, amounted to
US$5.3m. This is in marked contrast to the prior year with cash
being absorbed by the operations of US$0.6m. With the further cost
savings filtering through next year, and an increase in production
from the underground reserves, EBITDA is anticipated to further
improve during the current year.
The Company's administrative expenses have reduced markedly from
US$16.5m in 2013 to US$8.2m in 2014, and the Directors are
committed to keeping administration expenses as low as possible.
2013 administrative expenses were impacted by exceptional costs
principally related to the acquisition of the Karasuyskoye Ore
Fields.
Depreciation of US$5.4m (2013: US$5.2m) is broadly in line with
2013. In 2014 amortisation is US$1.0m (2013 US$0.3m) and this
relates to amortising the value of Karasuyskoye data purchased in
2013 ahead of the final terms of the subsoil user licence.
The income statement reflects a write-back of previously
impaired low grade ore stockpiles of US$284,000 (2013: US$ nil).
This reflects the operational aim to blend this material with
higher grade underground ore to operate the processing plant at
capacity.
The exceptional items include the following:
- Legal fees of US$0.7m associated with the move from AIM to the
Main Market of the London Stock Exchange.
- Write back of impairments of a net positive US$1.0m includes a
positive contribution from the company recouping funds from the
aborted Akmola transaction of US$2.27m, less other smaller
impairments made this year against receivables.
The Company has reported a net loss of US$0.3m (2013: net profit
US$2.3m as restated), with a gross profit of US$7.2m (2013:
US$10.3m) and an operating profit of US$0.8m (2013: US$3.1m). This
includes a taxation benefit of US$1.6m.
GoldBridges has reported net cash inflow from operating
activities of US$5.6m. This was lower than the US$7.1m reported in
2013 due to lower gold sales, which is largely a timing issue, and
a considerably lower average gold price.
Purchase of property plant and equipment of US$26.0m (2013:
US$7.5m) reflects GoldBridges increased capital spend on the
migration of operations from open pit to a solely underground mine.
Directors expect a similar or higher investing cash outflow again
in 2015.
Cash at year end was US$1.7m. Cash at 31 December 2013 was
US$2.1m, although the Company placed US$23.2m in equity during the
course of 2014, which was largely spent on the capex during the
year. Post period end, in April 2015, GoldBridges announced that it
had raised gross proceeds of approximately US$5.1m through a
subscription of 123,000,000 new Ordinary Shares at a price of 2.8
pence per share. The net proceeds of the Subscription will be used
for general working capital purposes, and will form part of the
funding to enable the Company to develop the underground mine at
Sekisovskoye in accordance with the Company's business plan.
The Company's principal debt is that owed to The European Bank
for Reconstruction (EBRD). The loan is set to be paid by twelve
equal quarterly instalments, and repayments commenced in January
2015.
The net assets of the Company are US$73.8m (2013: US$59.9m as
restated) and the increase arises principally from the investment
in the underground development project.
Consolidated statement of profit or loss
Year ended 31 December 2014
Notes 2014 Restated
US$000 2013
US$000
-------------------------------------- ------ ---------- ----------
Revenue 5 35,177 42,395
Costs of sales (27,969) (32,076)
-------------------------------------- ------ ---------- ----------
Gross profit 7,208 10,319
Other operating income 1,141 -
Administrative expenses (8,233) (16,475)
Tailing dam leak 330 9,252
Listing expenses (702) -
Impairments (1,214) -
Impairment reserved - Akmola LLP 2,227 -
-------------------------------------- ------ ---------- ----------
Operating Profit 757 3,096
Finance income 7 1
Foreign exchange loss (1,418) (413)
Finance expense (331) (771)
-------------------------------------- ------ ---------- ----------
(Loss)/profit before taxation (985) 1,913
Taxation credit 730 358
-------------------------------------- ------ ---------- ----------
(Loss)/profit attributable to equity
holders of the parent (255) 2,271
-------------------------------------- ------ ---------- ----------
Profit per ordinary share
-------------------------------------- ------ ---------- ----------
Basic & Diluted 6 (0.01)c 0.23c
-------------------------------------- ------ ---------- ----------
Consolidated statement of profit or loss and other comprehensive
income
Year ended 31 December 2014
2014 2013
US$000 US$000
------------------------------------------------ -------- --------
(Loss)/profit for the year (255) 2,271
------------------------------------------------ -------- --------
Currency translation differences arising on
items that may be reclassified to profit or
loss in accordance with IAS 1 (9,310) (763)
------------------------------------------------ -------- --------
Currency translation differences arising on 737 -
translations of foreign tax
------------------------------------------------ -------- --------
Total comprehensive (loss(/income attributable
to equity holders of the parent (8,828) 1,508
------------------------------------------------ -------- --------
Consolidated statement of financial position
Year ended 31 December 2014
Restated
2014 2013
Company number 5048549 Notes US$000 US$000
----------------------------------- -------- ----------- -----------
Non-current assets
Intangible assets 7 19,440 27,157
Property, plant and equipment 8 61,238 45,866
Trade and other receivables 2,553 381
Deferred tax asset 2,407 1,145
Restricted cash 260 301
----------------------------------- -------- ----------- -----------
85,898 74,850
----------------------------------- -------- ----------- -----------
Current assets
Inventories 10,882 9,354
Trade and other receivables 10,260 5,446
Cash and cash equivalents 1,684 2,067
----------------------------------- -------- ----------- -----------
22,826 16,867
----------------------------------- -------- ----------- -----------
Total assets 108,724 91,717
----------------------------------- -------- ----------- -----------
Current Liabilities
Trade and other payables (15,725) (11,512)
Other financial liabilities (326) (239)
Current tax payable (475) (558)
Provisions (335) (647)
Borrowings (3,333) (894)
----------------------------------- -------- ----------- -----------
(20,194) (13,850)
----------------------------------- -------- ----------- -----------
Net current assets ( liabilities) 2,632 3,017
----------------------------------- -------- ----------- -----------
Non-current liabilities
Other financial liabilities (709) (1,287)
Provisions (7,400) (6,705)
Borrowings (6,667) (10,000)
----------------------------------- -------- ----------- -----------
(14,776) (17,992)
----------------------------------- -------- ----------- -----------
Total liabilities (34,970) (31,842)
----------------------------------- -------- ----------- -----------
Net assets 73,754 59,875
----------------------------------- -------- ----------- -----------
Equity
Called-up share capital 3,702 2,635
Share premium 137,234 115,594
Merger reserve (282) (282)
Currency translation reserve (17,414) (8,841)
Accumulated losses (49,486) (49,231)
----------------------------------- -------- ----------- -----------
Total equity 73,754 59,875
----------------------------------- -------- ----------- -----------
Consolidated statement of changes in equity
Year ended 31 December 2014
Notes Share Share Merger Currency Accumulated Total
Capital Premium Reserve Translation Losses US$000
US$000 US$000 US$000 reserve US$000
US$000
---------------------- --------- ---------- ---------- ---------- -------------- -------------- ---------
1 January 2013
- restated 1,684 88,245 (282) (8,078) (51,502) 30,067
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Profit of the
year - restated - - - - 2,271 2,271
Other comprehensive
loss - - - (763) - (763)
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Total comprehensive
profit - (763) (49,231) 1,508
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Shares issued
on conversion 951 27,590 - - - 28,541
of loan notes
Issue costs - (241) - - - (241)
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
31 December 2013
- restated 2,635 115,594 (282) (8,841) (49,231) 59,875
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Loss for the
year - - - - (255) (255)
Other comprehensive
loss - - - (8,573) - (9,310)
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Total comprehensive
loss - - - (8,573) (255) (8,828)
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Share issued 1,067 22,095 - - - 23,162
Issued costs - (455) - - - (455)
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
31 December 2014 3,702 137,234 (282) (17,414) (49,486) 73,754
--------------------------------- ---------- ---------- ---------- -------------- -------------- ---------
Consolidated statement of changes in cashflows
Year ended 31 December 2014
Note 2014 2013
US$000 US$000
---------------------------------------------- ------ ----------- ----------
Net cash inflow from operating activities 5,601 7,141
------------------------------------------------------ ----------- ----------
Investing activities
Interest received 7 1
Purchase of property, plant and equipment (25,989) (7,471)
Restricted cash (6) -
Payment of costs associated with provisions (651) -
------------------------------------------------------ ----------- ----------
Net cash used in investing activities (26,639) (7,470)
Financing activities -
Proceeds on issue of shares 23,162 (241)
Issue costs (455) 894
Loan from related party (1,043) (924)
Interest paid (750)
------------------------------------------------------ ----------- ----------
Net cash used in investing activities 20,914 (271)
------------------------------------------------------ ----------- ----------
Decrease in cash and cash equivalents (124) (600)
------------------------------------------------------ ----------- ----------
Foreign currency translation (259) 163
------------------------------------------------------ ----------- ----------
Cash and cash equivalents at beginning
of the year 2,067 2,504
------------------------------------------------------ ----------- ----------
Cash and cash equivalents at the end
of the year 1,684 2,067
------------------------------------------------------ ----------- ----------
Notes
1. General information
GoldBridges Global Resources Plc (the "Company") is a Company
incorporated in England and Wales under the Companies Act 2006.
The financial information set out above for the years ended 31
December 2014 and 31 December 2013 does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006, but
is derived from those accounts. Whilst the financial information
included in this announcement has been compiled in accordance with
International Financial Reporting Standards ("IFRS") (as adopted by
the European Union), this announcement itself does not contain
sufficient financial information to comply with IFRS. A copy of the
statutory accounts for 2013 has been delivered to the Registrar of
Companies and those for 2014 will be submitted for approval by
shareholders at the Annual General Meeting. The full audited
financial statements for the years end 31 December 2014 and 31
December 2013 do comply with IFRS.
2. Auditors opinion
The auditor has issued an unqualified opinion in respect of the
financial statements which does not contain any statements under
the Companies Act 2006, Section 498(2) or Section 498(3).
3. Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") in force at
the reporting date and their interpretations issued by the
International Accounting Standards Board ("IASB") as adopted for
use within the European Union. The consolidated financial
statements have also been prepared in accordance with those parts
of the Companies Act 2006 applicable to companies reporting under
IFRS.
It is not anticipated that the adoption in the future of the new
or revised standards or interpretations that have been issued by
the International Accounting Standards Board but are not yet
effective will have a material impact on the Group's earnings or
shareholders' funds. The Company has not adopted any new standards
in advance of the effective dates.
4. Going concern
The Company will continue to generate its gold production from
its open pit until production ceases in August 2015, and from this
point all gold will be generated from the underground operations at
Sekisovskoye. The underground operations are continuing to provide
an increasing amount of high grade ore which is expected to
increase in volume and grade in the year. The ore has been mined
through the deepening of the transport decline giving access ore
bodies #11 and #3. In addition, in the current year development
work was also undertaken to give access to ore body #8 and this
provides additional ore production capacity in 2015.
On 20 April 2015 the Company completed a successful share
placing raising gross proceeds of GBP3.4m, (equivalent to US$5.0m).
This provides additional working capital to the Company, and also
provides the further capital required to progress the underground
project developments.
The Directors anticipate that, whilst the Company may seek to
raise further finance in the future, it now has access to
sufficient funding for its immediate needs.
The Company expects to have sufficient cash flow from its
forecast production to finance its ongoing operational requirements
and to, at least in part, fund the future capital requirements of
the Company. The Directors are confident that further sources of
funding can be acquired in the timescales required to meet the
future funding requirements as necessary.
On this basis the Directors have therefore concluded that it is
appropriate to prepare the financial statements on a going concern
basis.
5. Revenue
Continuing operations 2014 2013
$000 $000
------------------------- ------- -------
Sale of gold and silver 35,177 42,395
------------------------- ------- -------
Included in revenues from sale of gold and silver are revenues
of US$35,177,000 which arose from sales to the Group's largest
customer. All of the sales in the prior year related to a different
but single customer.
6. Loss per ordinary share
The calculation of basic and diluted loss per share is based
upon the retained loss from continuing operations for the financial
year of US$255,000 (2013: profit of US$2,271,000 as restated).
The weighted average number of ordinary shares for calculating
the basic profit/(loss) in 2014 and 2013 is shown below. There were
no potential ordinary shares outstanding at the reporting date
(2013: Nil) and as such basic and diluted earnings are the
same.
2014 2013
------------------- -------------- --------------
Basic and diluted 2,125,781,253 1,003,707,088
------------------- -------------- --------------
7. Intangible assets
Total
ussooo
======================= ==============
Cost
1 January 2013 -
Additions 27,500
Adjustments* (2,532)
Currency translation
adjustment (4,232)
============================ ==============
31 December 2014 20,736
============================ ==============
Amoritisation
1 January 2013 -
Charge for the year 343
31 December 2013 343
============================ ==============
Charge for the year 1,023
Translation difference (70)
============================ ==============
31 December 2014 1,296
============================ ==============
Net book value
1 January 2013 -
======================= ==============
31 December 2013 27,157
============================ ==============
31 December 2014 19,440
============================ ==============
*The adjustment relates to the recovery of VAT reclaimable on
the purchase price of the geological data.
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 January 2015, GoldBridges had been awarded the subsoil user
rights to Karasuyskoye by the Ministry of Investments and
Development in Kazakhstan The final subsoil contract terms and
conditions, including the new financial incentives offered
specifically to GoldBridges through the state programme on forced
industrial-innovative development (SFIID), has been not awarded
however the subsoil user rights awarded gives the Company a
pre-emptive right to obtain the subsoil contract The subsoil user
rights allows the Company to perform further exploration work in
order to complete a work programme which will needs to be submitted
to the authorities for approval.
The Ministry requires 12 to 18 months from date of issue of the
subsoil user rights to perform due diligence checks on the
information provided by the Company during the tendering process
and to prepare the terms of the subsoil contract including any
grants, tax reliefs, environmental protection requirements etc.
Management believes that the final contract will be awarded based
on ongoing consultation with the Ministry, compliance with local
legal and tax regulations and the submission of an appropriate
mining plan.
8. Property, plant and equipment
Freehold, Plant, Restated
Mining land and Equipment, machinery assets
proper fixtures under
lies and
and leases buildings fittings and vehicles construction Total
ussooo ussooo ussooo US000 ussooo ussooo
============== ================== =============== =============== =============== =============== ==============
Cost
1 January
2013* 10,401 16,980 15,165 7,352 13,259 63,157
Additions 468 11 1,234 966 8,079 10.758
Disposals (119) (142) (8) (8) (277)
Currency
translation
adjustment (187) (378) (330) (178) (397) (1,470)
============== ================== =============== =============== =============== =============== ==============
1 January
2014 10,682 16,494 15,927 8,132 20,933 72,168
Additions 131 58 5,31 2 1,302 22,040 28,843
(1.71
Disposals (563) (1,017) (131) 1)
Transfers 7,211 2,028 1,400 (339) (10,300)
Currency
translation
adjustment (1,483) (2,583) (2,770) (1,054) (3,128) (11,018)
============== ================== =============== =============== =============== =============== ==============
31 December
2014 16,541 15,434 18,852 8,041 29,414 88,282
============== ================== =============== =============== =============== =============== ==============
Accumu lated
depreciation
1 January
2013* 2,983 3,937 10,335 4.323 - 21,578
Charge for the
year 647 1,683 2,030 864 - 5,224
Disposals (5) (91) (30) - (126)
Currency
translation
adjustment (78) (114) (100) (82) - (374)
-------------- ------------------ =============== =============== =============== --------------- --------------
1 January
2014 3,552 5,501 12,174 5,075 - 26,302
============== ================== =============== =============== =============== =============== ==============
Charge for the
year 432 1,478 2,575 865 - 5.350
Disposals (60) (988) 574 - (474)
Currency
translation
adjustment (552) (873) (993) (1,716) - (4,134)
============== ================== =============== =============== =============== =============== ==============
31 December
2014 3,432 6,046 12,768 4,798 - 27,044
============== ================== =============== =============== =============== =============== ==============
Net book
value
1 January
2013 7,418 13,043 4,830 3,029 13,259 41,579
============== ================== =============== =============== =============== =============== ==============
31 December
2013 7,130 10,993 3.753 3,057 20,933 45,866
============== ================== =============== =============== =============== =============== ==============
31 December
2014 13,109 9,388 6,084 3,243 29,414 61,238
============== ================== =============== =============== =============== =============== ==============
*The comparative cost and depreciation figures have been
restated to reflect assets that have been fully depreciated and the
capitalisation of interest
Capitalised cost of mining property and leases are amortised
over the life of the licence from commencement of production on a
unit of production basis. This basis uses the ratio of production
in the period compared to the mineral reserves at the end of the
period plus production in the period Mineral reserves estimates are
based on a number of underlying assumptions which are inherently
uncertain. Mineral reserves estimates take into consideration
estimates by independent geological consultants. However, the
amount of mineral that will ultimately be recovered cannot be known
until the end of the life of the mine Any changes in reserve
estimates are, for amortisation purposes, treated on a prospective
basis. The recovery of the capitalised cost of the Company's
property, plant and equipment is dependent on the development of
the underground mine. Included within mining properties is an
amount of US$750,000 and associated foreign exchange of US$ l50,000
relating to interest that has been capitalised (2013: US$744,000,
201 2: US$765,000)
Under the terms of the loan agreement with the European Bank for
Reconstruction and Development (EBRD), the Company and its
subsidiaries has pledged certain assets as security for the loan
that was entered into.
The Directors are required to consider whether the non-current
assets comprising, mineral properties leases, plant and equipment
have suffered any impairment. The recoverable amount is determined
based on value in use calculations. The use of this method requires
the estimation of future cash flows and the choice of a discount
rate in order to calculate the present value of the cash flows. The
Directors have concluded that no adjustment is required for
impairment.
Additions to assets under construction include US$2,112,000 to
reflect the change in estimates relating to abandonment and
restoration provision.
9. Availability of accounts
The audited Annual Report and Financial Statements for the 12
months ended 31 December 2014 and notice of AGM will shortly be
sent to shareholders and published at: www.goldbridgesplc.com .
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BUGDSXXXBGUG
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