TIDMGBGR
RNS Number : 9588P
GoldBridges Global Resources PLC
11 June 2015
11 June 2015
GoldBridges Global Resources plc
("GoldBridges" or the "Company")
AGM Chairman's Speech
AGM at 3pm on 11 June 2015 at 55 Baker Street, London
Ladies and Gentlemen, I extend a warm welcome to all of you from
myself and the other Board Members, for taking the time out to
attend the meeting of your Company.
Background
Before I get into the detail of the year in review and recent
developments, I just want to reflect, to show the progress the
Company has made since late 2012. That was the point at which the
Company effectively came under new management. Key landmarks have
been:
-- A strategic review which led to an overhaul of management and
procedures, this has subsequently led to significant cost
savings
-- Negotiating and dealing with legacy issues such as the
tailings dam leak to ensure that all legal and social obligations
were met, but at the same time the element relating to fines was
minimised. Procedures are now in place and still being modified and
enhanced to ensure that the issue reoccurring is unlikely.
-- Refocusing the Company cash and resources into projects and
investments that will yield significant shareholder value. In this
regard the Company successfully recovered the monies due from
Akmola in the year, and invested in the Karasuyskoye Ore Fields
adjacent to the Company's current project at Sekisovskoye.
-- Assessing at an early stage how the maximum value for
shareholders could be extracted by the Company for the
shareholders. A key component of this was obtaining an independent
Competent Persons Report to give an indication of the resources
that were potentially available.
-- Finally repositioning the Company's image and profile by a
change of name and obtaining admission to the main market of the
London Stock Exchange by standard listing.
The picture I hope that is coming through is a positive one -
with a good management team who are competent, focused and keen to
drive the business forward.
Moving on to the year in question...
Current year
As indicated above, the two year period was needed to deal with
the matters at hand, stabilise the business, and assess the
strengths of the business which included mining resources, people
and the capital structure. We are now in the next stage of
development.
-- I am sure you have reviewed the Annual Report, so I just want
to pick out some key figures:
o In the current year the focus has been on the development of
the underground mine and assessing the best way forward. A
considerable amount was spent in development of the underground
mine, tunnelling, drilling, excavation works and infrastructure -
in cash terms GBP26m. In 2016 this is expected to ramp up as the
underground mine is developed - Ken Crichton, who I am pleased to
say was appointed as Technical Director will expand on this in his
presentation and will cover future timings in relation to the
development plans.
o Turnover decreased - in common with many other businesses the
price of gold had a direct impact on revenues and profits. Our view
is that the gold price will remain in the $1,200 range for the
foreseeable future, but given our future plans and expected cash
costs, we do not see further reductions impacting the economic
viability of projects at present.
o Cash resources are sufficient for current operating and
financing needs and we are currently repaying our borrowings from
EBRD under the current agreed facility.
-- As you are aware from the Annual Report, the Company is
winding down the operations from the open pit and moving production
to where significant value lies in the underground mine, as shown
in the CPR. As indicated above, a considerable amount of time and
expense was incurred in 2014 and 2015 in order to develop access to
mining stopes and different ore bodies. This investment is expected
to benefit the Company in the near future.
-- It is important that the next steps in the development plans
are taken carefully and are duly considered. We hope to announce
the way forward very shortly, and we thank you for your patience in
this regard.
Outlook and Conclusion
I strongly believe that we now enjoy a robust foundation that
will support significant growth in the future. The value to
shareholders will come from the development of the high grade ore
from the underground mine. The Company's operations have been
rationalised and are efficient to enable us to achieve a good
profit from gold production moving forward.
In addition to the Sekisovskoye deposit, the Company is still
progressing the Karasuyskoye project, were we believe there is
significant shareholder value yet to be factored into the Company's
fortunes. We are expecting the final permitting to be concluded
later in the year, at which point the Company will move forward
with a detailed CPR.
I am of course not pleased (as you are not) with the current
share price. However, we see the share price improving in the
long-term and do not feel that the current share price reflects the
true value of the Company.
Finally I would like to thank our shareholders, advisers and
employees for all their hard work, I will now hand you across to
Ken who will give a short presentation and will then chair a Q and
A session.
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
The Company is a gold mining, exploration and development group
based in Kazakhstan. Whilst the Company was initially established
to 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, including the prospective
Karasuyskoye ore field which adjoins the Sekisovskoye deposit.
The Company's principal assets is the exclusive right to explore
and extract gold and silver ore from the Sekisovskoye deposit in
the Glubokovsky District of the East Kazakhstan Region, and the
potential to develop the Karasuyskoye ore fields. 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 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%
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 exploiting 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.
The Company produced approximately 30,669oz of gold and 34,902oz
of silver in the year ended 31 December 2013 and 32,994oz of gold
and 41,390oz of silver in the year ended 31 December 2014.
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 2013, the Company's consolidated
revenue was $42.4 million and its EBITDA was US$(0.6) million. In
the six months ended 30 June 2014, the Company's consolidated
revenue was US$16.7 million and its EBITDA was US$5.9 million.
Further details can be found in the Company's website
www.goldbridgesplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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