TIDMGBGR
29 April 2016
GoldBridges Global Resources Plc
("GoldBridges" or the "Company")
Results for the year ended 31 December 2015
GoldBridges, the underground gold mining and development
company, is pleased to announce its 2015 results.
Highlights
Company Highlights
-- Detailed plans developed internally using advice from external
consultants leading to a revised approach to the development of
the
mine and a reduction in capex requirement. Expansion capex now
reduced
to an external funding requirement of US$20-US$30m, of which
US$10m
was raised in 2016.
-- Approximately 570m of development undertaken on second transportation
decline to date.
-- Transportation decline on track for completion by May 2016, allowing
an underground production run rate of 500,000 t/ year.
-- The Company is actively pursuing the balance of funds, the expected
requirement is in H2 2017.
Financial Highlights
-- 20,890 oz of gold sold (2014: 27,959oz), a reduction of 7,069oz.
-- Turnover decreased in the year to US$24m (2014: US$35.2m), principally
a reflection of the time and resources spent on the development
of the
underground workings.
-- Decrease in finished gold stockholding to 1,819oz (2014: 7,307oz), a
reflection of decreased production.
-- Average gold price achieved (including silver as a by-product),
US$1,151/oz, (2014: US$1,258/oz).
-- Adjusted EBITDA (Earnings before interest, tax, depreciation and
amortisation), of US$(2.3m) (2014: positive US$5.3m).
-- Loss of US$10.2m (2014: US$(0.25m)), and a total comprehensive loss to
include exchange differences of US$(40m) (2014: US$(9m)).
-- Equity raising of US$5.1m completed in April 2015.
-- Net asset value decreased as the Kazakh Tenge devalued against the US
dollar - however, no practical impact on the Company's
value.
Operational Highlights
-- Gold poured 15,534oz, (2014: 32,994oz) a 52.9% decrease year-on-year,
principally due to the winding down of the open pit and
development of
the underground.
-- Gold grade 1.12g/t, (2014: 1.81g/t). The reduction is a reflection of
the processing of the lower grade ore from the open pit and use
of low
grade ore stock piles, in order to maximise throughput while
the
underground developments continue.
-- Cash cost of production US$837/oz (2014: US$834/oz).
-- Gold recovery rate 76.04% (2014: 83.3%) was due to variable grade and
ore composition. Recovery is expected to increase again to over
80%
after plant improvements.
Aidar Assaubayev, CEO of GoldBridges, commented:
"While our gold production from Sekisovskoye fell year on year,
we regard 2015 as a successful year of transition for GoldBridges.
Our open pit mine wound down and is set to close, as planned, and
we are pleased to report that significant progress has been made in
developing our new underground mine. This operation will secure our
long term future and we expect our gold production to begin to
increase again in H2 2016. "
For further information please contact:
GoldBridges Global Resources Plc Louise Wrathall+44 (0) 207 932
2456
Cantor Fitzgerald Europe Stewart Dickson+44 (0) 207 894 7000
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 0.855km². 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 company is in transition moving from open pit production to
underground development of the mine. The operations are expected to
be fully underground from H2 2016 onwards.
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 2015, the Company's consolidated
revenue was US$24million and its EBITDA was US$(2.3) million.
Chairman's Statement
During the year, we continued with the move from the open pit
gold mine at Sekisovskoye to a solely underground operation, and
this process is to be completed in the near term. Mid-year, we
announced our decision to access our substantial gold reserves by
developing a decline underground, rather than by sinking a shaft as
described in the Venmyn Deloitte CPR that we released in November
2014.
In that report, the overall capital expenditure (capex) outlay
was estimated to be US$130m for the shaft based solution. Based on
our current plans, the overall capex requirement to achieve
100,000oz of production in three years is now only estimated to be
US$42m, of which only US$20-US$30m needs to be externally funded.
US$10m of this total has already been successfully raised.
As previously announced, GoldBridges has already commenced
development of the new transportation decline, improving access to
its significant deeper gold reserves. Development of the decline is
well underway.
Construction of the portal in the open pit, which is in the
process of being closed, has already commenced. As part of the
preparation of the underground mine for more extensive mining in
2016, the company is in the process of sourcing the capital
equipment required from various providers. It will include the
purchase of larger 30 tonne underground trucks, a load-haul-dumper
and associated equipment. A drilling rig is already commissioned
for underground works. On completion of the second decline
development, the company will have the capacity to significantly
increase gold production from Sekisovskoye. This is expected to
have a marked effect on production in H2 2016.
Unsurprisingly, our gold production fell from 32,994oz in 2014
to 15,534oz in 2015 as the open pit part of Sekisovskoye wound down
and is expected to close.
In April 2015, we announced a successful capital raising of
GBP3.4m (US$5.1m), through the placing of 123m new shares at a
price of 2.8p/share, and we thank our existing and new shareholders
for their support and belief in our business. The net proceeds of
this placing have been used to fund working capital and the
expansion of our underground mine.
In terms of the gold market, we have witnessed another
challenging year as the gold price fell by around US$200/oz during
the course of 2015, putting more pressure on higher cost producers.
Currently the gold price is in the range of US$1,200-1,250oz.
Fortunately for Kazakh mine operators, our local currency, the
Tenge, fell from around 182KZT to 339KZT to the US dollar in 2015
and has further weakened to current levels of about 340KZT to the
US dollar. This devaluation was due to the National Bank of
Kazakhstan taking the decision to allow the currency to float. This
was as a result of weakening currencies of some of Kazakhstan's key
trading partners, such as China and Russia, and the National Bank
of Kazakhstan will now target inflation rate control rather than
its currency valuation. Given that a significant portion of our
operating costs are Tenge denominated, while the sales of gold are
linked to US dollar prices, this has aided us in lowering costs in
US dollar terms.
With recent currency based developments in mind, we continue to
believe that we are located in the right country in terms of our
gold operations, and will continue to focus on Kazakhstan and other
neighbouring Central Asia countries for our business development
going forwards. Kazakhstan is immensely resource rich, has a
motivated and able mining workforce, and is becoming even more cost
effective. Changes to mining code are underway with the overarching
aim to attract more direct foreign investment in the country. All
in all, we continue to see a strong natural resources long term
future in Kazakhstan, notwithstanding near term difficulties faced
by weaker commodity prices.
Finally, may I thank all our employees and our Management team
for their hard work and also thank our shareholders for their
continued support.
Kanat Assaubayev
Chairman
Chief Executive Officer and Operational Review
Overview
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2016 11:22 ET (15:22 GMT)
During 2015, our operational performance at Sekisovskoye was
affected by the winding down of our open pit operations and the
management and team re-focusing on developing the decline to access
our higher grade underground reserves. This necessitated the
closure of operations for 2 months at the ore mining facility. This
was required in order to make modifications and upgrades to
transition to the underground operation. Our reduced gold
production together with the lower global price of gold has led
inevitably to a decrease in revenue, however we have maintained
tight control of costs, which will have a positive impact as the
Company revenue increases in the medium term. Management has taken
the opportunity to review the assets and operations and made
impairments as necessary.
Expansionary capex significantly reduced
Many of our achievements during 2015 were focussed on the
continued development of our underground mine. As previously
discussed, during 2015 we made the decision to develop a decline
underground rather than to sink a shaft to access our higher grade
gold reserves at depth. To that end, we re-developed our
underground mining access approach and, in early 2016, reported
that we had finalised our new capital expenditure budget. In order
to expand and further develop our underground mine, expand our
processing plant and to produce 100,000oz of gold annually, we will
need to spend US$42m excluding contingency.
This is a marked decrease on the US$130m estimated in our 2014
Venmyn Deloitte competent person's report, which assumed we would
sink a shaft to access our reserves.
Of the US$42m expansionary capital expenditure required,
GoldBridges only requires external financing of between US$20m and
US$30m, as the remainder is expected to be generated from
operational cash flows.
Our supportive shareholder, African Resources, which is
indirectly owned by members of the Assaubayev family, has agreed to
finance the development of the underground mine if other sources of
funding are unsuitable. To that end, in February 2016, African
Resources bought US$10m of five year, 10% coupon convertible bonds
that can be redeemed at over 3p/share, a significant premium to the
current share price. This demonstrates the family's continued
support.
Projected capital expenditure, underground operation (US$m)
Total 2016 2017 2018 2019 2020
Development capex 46.0 14.6 16.2 10.2 2.5 2.5
Prospecting drilling 4.0 0.9 - 0.1 1.5 1.5
Underground development 4.4 0.8 1.1 0.6 0.9 1.0
Infrastructure 1.3 1.3 - - - -
Ore handling facilities 20.6 10.4 7.6 2.6 - -
Process plant expansion and 12.0 - 6.0 6.0 - -
paste plant construction
Contingency 3.7 1.2 1.5 0.9 0.1 -
Underground mine development
In terms of decline development, significant progress was made
in 2015 and early 2016. To date, a total of approximately 570m of
development work has been undertaken on the new transportation
decline. Also, construction of the portal has already commenced,
with completion expected in May 2016.
By completing the initial development works of the new decline
in May 2016, the Company expects to reduce the current haulage
distance from 3km to 1.2km and to increase the ore throughput
capacity to 45,000 tonnes per month. This should enable the company
to mine at an annualised run rate of 500,000 tonnes per year from
May 2016.
Work undertaken by Mining Plus
In H2 2015, Mining Plus, the international mine consultancy
group, was retained by GoldBridges to undertake studies on the
underground mining plans and to assist it in transitioning its
Sekisovskoye mine into a large underground gold operation with
100,000oz annual output.
Mining Plus has expertise in geological modelling and
geotechnical aspects for hard rock underground mines, combined with
underground mine planning experience, particularly using decline
haulage. It has offices in Australia, Canada and Peru and provides
mining expertise from the conceptual stage of projects, through to
feasibility study work, project delivery, commissioning, and mine
closure.
Under the scope of this assignment, Mining Plus re-modelled the
Sekisovskoye drilling data and reviewed all mining methods that
could potentially be applicable to the underground mine development
at Sekisovskoye. The studies had important findings. Firstly,
Mining Plus identified that, while several mining methods are
applicable at Sekisovskoye, the most efficient methods in terms of
mining recovery, dilution and costs are long hole open stoping
methods with either paste fill or with cemented aggregate fill.
Both mining methods provide high selectivity and sequencing
flexibility, giving GoldBridges the opportunity to extract higher
grade ore earlier in the schedule. Secondly, the Mining Plus work
identified the opportunity to increase the overall head grade of
the ore mined by selectively mining the deposit, giving the Company
increased flexibility.
These findings mean that GoldBridges could further reduce its
cash cost of operation at full production, as it has the option of
mining fewer tonnes at a higher grade. This could enhance the value
of the project, over and above the US$226m that was estimated by
Venmyn Deloitte in November 2014 using a gold price of US$1,100/oz
and a 9.3% discount rate.
Sekisovskoye gold mine - Our operational track record
The operational performance of the Company's Sekisovskoye gold
mine during 2015, against the prior year, is provided below. The
key operational statistics of the mine operation are as
follows:
2015 2014
Ore mined T 339,111 570,991
Gold grade g/t 1.06 1.26
Silver grade g/t 2.03 1.89
Contained gold oz. 11,595 23,050
Contained silver oz. 22,139 34,620
2015 2014
Ore mined T 79,276 82,045
Gold grade g/t 2.55 2.96
Silver grade g/t 3.7 4.05
Contained gold oz. 6,492 7,807
Contained silver oz. 9,441 10,680
Mining processing
2015 2014
Crushing T 570,949 726,427
Milling T 566,664 728,620
Gold grade g/t 1.12 1.71
Silver grade g/t 2.25 2.37
Gold recovery % 76.04 83.3
Silver recovery % 64.91 74.4
Contained gold oz. 20,428 39,798
Contained silver oz. 40,994 55,603
Gold poured oz. 15,534 32,994
Silver poured oz. 26,608 41,390
Total gold production for 2015 was 15,534oz. This is a 53%
reduction on the 2014 gold output of 32,994oz. This result reflects
the winding down and closure of the open pit mine at Sekisovskoye,
while the Company's efforts were focused on increasing its
underground development in order to increase underground gold
production for the future.
In total, 566,664 tonnes of ore were milled (2014: 728,620
tonnes), of which 79,276 tonnes or 14% were mined from the
underground operation. This compares to 82,045 tonnes or 11% in
2014.
The average gold grade of ore milled during 2015 was 1.12g/t
(2014: 1.81g/t), and comprised ore mined at an average grade of
1.06g/t from the open pit mine and 2.55g/t from the underground
mine. Open pit gold grades were lower than the 1.26g/t achieved in
2014 due to the exhaustion of the open pit economic reserves. Gold
grades are expected to increase in 2016 and onwards as the
production from Sekisovskoye is solely from the higher grade
reserves of the underground mine.
At 76.04% and 64.91% respectively, both gold and silver
recoveries were lower than 2014. This was related to lower
recoveries experienced predominantly in H1 2015 as a result of
variable grade and ore composition and also reflected plant
improvement works undertaken during the period.
As the proportions of sulphidic minerals in the ore and the
amount of gold in fine grains increases during underground mining,
the characteristics of the free gold generally improve, and some
changes were made to the ore process in the plant to reflect this.
The work was largely related to introducing a fuller gravity
circuit into the operational process. This processing route
consists of jigs, washers and centrifugal concentrators and
refining this part of the process allows the plant to recover the
finer grained gold particles from this circuit. This material is
then processed in line with the Company's standard processing
procedure. Additionally, the technology will enable the Company to
reduce its consumption of key reagents, in particular cyanide and
calcium hypochlorite. Gold and silver recoveries are projected to
be at around 84% for the life of the operation.
Financial performance review 2015
The transition to a fully operational underground mine has been
delayed from that previously anticipated as a number of development
and mining options were assessed by management to ascertain the
optimal approach in terms of efficiency and cost. During the period
under review, the underground ore was mixed with lower grade open
pit ore and stockpiled ore. This blending of the ore led in part to
a lower recovery. In the future, as the mine moves to the
processing of only higher grade underground ore, this is not
anticipated to be an issue. This combined with interruptions to
processing due to the plant upgrade led to a lower production
achievement in 2015. As the underground mine becomes operational in
H2 2016 at its enhanced capability level, with the new mining
equipment the production is expected to be back on track and begin
to increase.
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2016 11:22 ET (15:22 GMT)
The other principal impact on the results for the year arises
due to the devaluation of the Kazakh Tenge against the US Dollar.
The impact in the year has been on the asset values in the
subsidiaries, in order to reflect the devaluation of the currency.
In the accounts of the companies in Kazakhstan, it has been
necessary to revalue the assets using the much lower value of the
Tenge against the Dollar. This is no way reflects the commercial
value of the Company, as the revenue generating ability of the
assets is unchanged. Indeed, there is a positive impact as the
earnings are generated in US Dollars with a significant proportion
of the cost base payable in Tenge.
The Company has reported a net loss of US$10.2m (2014: US$0.3m),
with a gross profit of US$4.3m (2014: US$7.2m) and an operating
loss of US$4.8m (2013: US$0.8m).
During 2015, Sekisovskoye poured 15,534oz of gold (2014:
32,994oz). A total of 20,890oz (2014: 27,959oz) were sold in 2015
at an average price of US$1,157/oz (2014: US$1,258/oz). Revenue
totalled US$24.m (2014: US$35.2m) and was lower than 2014 due
principally to reduced gold sales as the Company focused its
efforts on developing the underground mine. The principal purchaser
of the gold dore was the Kazakhstan government, as last year.
The total cash cost of sales, which includes administrative
costs but excludes depreciation and provisions, amounted to
US$1,263/oz, (2014: US$1,084/oz). The production cash cost amounts
to US$837/oz (2014: US$834/oz). This is based on the cost of sales
excluding depreciation and administrative expenses, and exceptional
items. The earnings before interest, tax and depreciation,
(EBITDA), excluding exceptionals, amounted to negative US$2.3m
(2014: US$5.3m). Due to this transition and low level of production
in the current year, the results are not regarded as typical of the
operation.
Depreciation is US$4.2m (2014: US$5.4m). Amortisation is
US$852,000 (2014: US$1.3m) and this relates to amortising the value
of Karasuyskoye data purchased in 2013. This charge will be
reviewed on successful receipt of the sub-soil user contract. The
Company is currently in the final committee stages and the licence
is expected to be awarded in 2016.
The Company has reported net cash inflow from operating
activities of US$7.8m. This was higher than the US$5.6m reported in
2014 due principally to recoveries in relation to VAT and Akmola
receivable in the year.
Purchase of property plant and equipment of US$8.8m (2014:
US$2.6m) reflects the Company's increased capital spend on the
migration of operations from open-pit to a solely underground
mine.
Cash at year-end was US$1.1m. Cash at 31 December 2014 was
US$1.7m. During the year, the Company placed shares, raising equity
amounting to US$5.1m and this was largely spent on capex in the
year.
The Company's principal debts are that owed to The European Bank
for Reconstruction (EBRD), and the convertible loan note recently
issued in 2016. The EBRD loan is set to be paid over twelve equal
quarterly instalments. The repayments commenced in January 2015. At
the current time there are seven instalments remaining amounting to
US$5.8m. In relation to the convertible bond, this is not expected
to impact the cash flow until maturity, at which point it could be
converted into shares.
The consolidated net assets of the Company are US$38.4m (2014:
US$73.8m) and the decrease arises principally from the devaluation
of the functional currency in Kazakhstan, the Tenge, against the US
dollar. This resulted in the assets in Kazakhstan being devalued in
terms of dollars.
Consolidated statement of profit or loss
Year ended 31 December 2015
Notes 2015 2014
US$000 US$000
Revenue 3 24,054 35,177
Costs of sales (19,763) (27,969)
Gross profit 4,291 7,208
Other operating income - 1,141
Administrative expenses (9,762) (8,233)
Tailing dam leak - 330
Listing expenses - (702)
Impairments - (1,214)
Impairment reserved 674 2,227
Operation Profit (4,797) 757
Finance income - 7
Foreign exchange loss (5,718) (1,418)
Finance expense (1,235) (331)
Loss profit before taxation (11,750) (985)
Taxation credit 1,532 730
Loss attributable to equity (10,218) (255)
holders of the parent
Profit per ordinary share
Basic & Diluted 4 (0.4c) (0.01c)
Consolidated statement of profit or loss and other comprehensive
income
Year ended 31 December 2015
2015 2014
US$000 US$000
Loss for the year (10,218) (255)
Currency translation differences arising (34,577) (9,310)
on translations of foreign
operations items that may be reclassified
to profit or loss
Currency translation differences 4,574 737
arising on translation
of foreign operations relating to taxation
Total comprehensive loss attributable (40,221) (8,828)
to equity holders of the parent
Consolidated statement of financial position
Year ended 31 December 2015
2015 2014
Company number 5048549 Notes US$000 US$000
Non-current assets
Intangible assets 5 9,887 19,440
Property, plant and equipment 6 35,134 61,238
Inventory 604 -
Trade and other receivables 1,337 2,553
Deferred tax asset 5,145 2,407
Restricted cash 137 260
52,244 85,898
Current assets
Inventories 3,223 10,882
Trade and other receivables 2,649 10,260
Cash and cash equivalents 1,084 1,684
6,956 22,826
Total assets 59,200 108,724
Current Liabilities
Trade and other payables (9,298) (15,725)
Other financial liabilities (297) (326)
Current tax payable (191) (475)
Provisions (247) (335)
Borrowings (6,676) (3,333)
(16,709) (20,194)
Net current assets/(liabilities) (9,753) 2,632
Non-current liabilities
Other financial liabilities (537) (709)
Provisions (3,553) (7,400)
Borrowings - (6,667)
(4,090) (14,776)
Total liabilities (20,799) (34,970)
Net assets 38,401 73,754
Equity
Called-up share capital 3,886 3,702
Share premium 141,918 137,234
Merger reserve (282) (282)
Currency translation reserve (47,417) (17,414)
Accumulated losses (59,704) (49,486)
Total equity 38,401 73,754
Consolidated statement of changes in equity
Year ended 31 December 2015
Notes Share Capital Share Premium Merger Currency Accumulat-ed Total US$000
US$000 US$000 Reserve Translation Losses
US$000 reserve US$000
US$000
1 2,635 115,594 (282) (8,841) (49,231) 59,875
January
2014
Loss for - - - - (255) (255)
the year - - - (8,573) - (8,573)
Other
comprehensive
loss
Total - - - (8,573) (255) (8,828)
comprehensive
loss
Shares 1,067 22,095 - - - 23,162
issued
on - (455) - - - (455)
conversion
of loan
notes
Issue
costs
31 3,702 137,234 (282) (17,414) (49,486) 73,754
December
2014
Loss for - - - - (10,218) (10,218)
the year - - - (30,003) - (30,003)
Other
comprehensive
loss
Total - - - (30,003) (10,218) (40,221)
comprehensive
loss
Share 184 4,968 - - - 5,152
issued - (284) - - - (284)
Issued
costs
31 3,886 141,918 (282) (47,417) (59,704) 38,401
December
2015
Consolidated statement of changes in cashflows
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2016 11:22 ET (15:22 GMT)
Year ended 31 December 2015
2015 2014
US$000 US$000
Net cash inflow from operating activities 8,183 5,601
Investing activities - 7
Interest received (9,639) (25,989)
Purchase of property, plant and equipment - (6)
Restricted cash - (651)
Payment of costs associated with provisions
Net cash used in investing activities (9,639) (26,639)
Financing activities
Proceeds on issue of shares 5,152 23,162
Issue costs (284) (455)
Loan from related party - (1,043)
Interest paid (3,990) (750)
Net cash used in investing activities 878 20,914
Decrease in cash and cash equivalents (578) (124)
Foreign currency translation (22) (259)
Cash and cash equivalents at beginning of the year 1,684 2,067
Cash and cash equivalents at the end of the year 1,084 1,684
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 2015 and 31 December 2014 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 2014 has been delivered to the Registrar of
Companies and those for 2015 will be submitted for approval by
shareholders at the Annual General Meeting. The full audited
financial statements for the years end 31 December 2015 and 31
December 2014 do comply with IFRS.
2.Going concern
The Company is in the advances stages of its plans to move
production from the open pit to the underground operations at
Sekisovskoye. It is expected that the underground mine will be
producing at significantly higher levels from May 2016 onwards, and
will increase again once further development of the decline is
completed. The funding for the initial stage has been obtained from
the corporate bond issued in February 2016. The external debt in
the Company (other than the corporate bond), consists of US$6.7m
payable to EBRD. This amount is repayable by eight equal quarterly
payments of US$833,000 each. As at the date of this report, there
are seven instalments remaining. However, as the Company has
breached certain covenants in relation to the borrowing, the full
amount of the loan is shown as falling due within one year.
The company raised funding of US$10m in February 2016 via a
corporate bond to its parent company, African Resources Limited.
This provided additional working capital to the Company, and also
provides the further capital required to progress the underground
project development. The Company is actively pursuing further
funding to raise the balance of the funds needed to complete the
planned full scale development of the underground mine and the
Directors are confident that further funding can be obtained in the
timescales required to meet the future developmental requirements
of the Company. Should the funding be delayed, or additional
funding is required to cover any unforeseen production shortfalls
and additional working capital requirements arising from the move
to the underground operations or in the event that the EBRD loan is
requested for repayment earlier than scheduled, the parent company
has confirmed its intention to provide further funding to enable
the Company to continue its planned operations for at least twelve
months from the date of approval of the financial statements.
On this basis, the Directors have therefore concluded that is
appropriate to prepare the financial statements on a going concern
basis.
3.Revenue
An analysis of the Company's revenues is as follows:
2015 2014
$000 $000
Sale of gold and silver 24,054 35,177
Included in revenues from sale of gold and silver are revenues
of US$24,017,000 (2014: US$34,049,000) which arose from sales to
the Company's only customer the state refinery Tau-Ken Altyn LLP,
which is located in Astana, Kazakhstan.
4.Loss per ordinary share
The calculation of basic and diluted earnings per share from
continuing operations is based upon the retained loss from
continuing operations for the financial year of US$10.2m (2014:
loss of US$225,000).
The weighted average number of ordinary shares for calculating
the basic loss in 2015 and 2014 is shown below. There were no
potential ordinary shares outstanding at the reporting date (2014:
Nil) and as such basic and diluted earnings are the same.
2015 2014
Basic and diluted 2,298,284,596 2,115,470,650
5.Intangible assets
Total
US$000
Cost 27,500
1 January 2014 (2,532)
Adjustments* (4,232)
Translation difference
31 December 2014 & 1 January 2015 20,736
Translation difference (9,597)
31 December 2015 11,139
Amortisation 343
1 January 2014 1,023
Charge for the year (70)
Adjustments*
31 December 2014 & 1 January 2015 1,296
Charge for the year 852
Translation difference (896)
31 December 2015 1,252
Net book value
1 January 2014 27,157
31 December 2014 19,440
31 December 2015 9,887
*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. The Company is in
the advanced stages of obtaining the sub-soil user licence from the
authorities and it is expected to be received in May 2016.
Management have taken a view that a 20 year write off is
appropriate being the expected life of the sub-soil user license.
In assessing the carrying value, Management have made a number of
estimates in determining the level of mineral resources and
interpreting the geological data. There are numerous uncertainties
inherent in estimating mineral resources, and assumptions that were
valid at the time of estimation may change when new information
becomes available. These include assumptions as to grade estimates,
cut-off grades and other factors that will affect commercial
viability of the deposits such as recovery rates, commodity prices,
exchange rates, production costs, capital costs, processing and
reclamation costs and discount rates. The actual volume of ore
extracted and any changes in these assumptions could affect
prospective amortisation rates and carrying values of intangible
assets.
Mining Freehold, Equipment Plant, Assets under
properties land and fixtures and machinery construction Total
and leases buildings fittings and US$000 US$000
US$000 US$000 US$000 vehicles
US$000
Cost 10,682 16,494 15,927 8,132 20,933 72,168
1 131 58 5,312 1,302 22,040 28,843
January - (563) (1,017) - (131) (1,711)
2014 7,211 2,028 1,400 (339) (10,300) -
Additions (1483) (2,583) (2,770) (1,054) (3,128) (11,018)
Disposals
Transfers
Currency
translation
adjustment
31 16,541 15,434 18,852 8,041 29,414 88,282
December 104 1,210 1,782 92 6,451 9,639
2014 (863) - (288) (8) (21) (1,180)
& - - - - - -
1 (7,392) (7,564) (9,245) (3,752) (16,425) (44,378)
January
2015
Additions
Disposals
Transfers
Currency
translation
adjustment
31 8,390 9,080 11,101 4,373 19,419 52,363
December
2015
Accumulated
depreciation 3,552 5,501 12,174 5,075 - 26,302
1 432 1,478 2,575 865 - 5,350
January - (60) (988) 574 - (474)
2014 (552) (873) (993) (1,716) - (4,134)
Charge
for
the
year
Disposals
Currency
translation
adjustment
31 3,432 6,046 12,768 4,798 - 27,044
December 425 1,136 1,840 823 - 4,224
2014 - - - (81) - (81)
& (1,736) (3,193) (6,550) (2,479) - (13,958)
1
January
2015
Charge
for
the
year
Disposals
Currency
translation
adjustment
31 2,121 3,989 8,058 3,061 - 17,229
December
2015
Net
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2016 11:22 ET (15:22 GMT)
book 7,130 10,993 3,753 3,057 20,933 45,866
value
1
January
2014
31 13,109 9,388 6,084 3,243 29,414 61,238
December
2014
31 6,269 5,091 3,043 1,312 19,419 35,134
December
2015
6.Property, plant and equipment
Capitalised costs 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$Nil relating to interest that has been capitalised
(2014: US$750,000, 2013: US$744,000)
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.
7.Availability of accounts
The audited Annual Report and Financial Statements for the 12
months ended 31 December 2015 and notice of AGM will shortly be
sent to shareholders and published at: www.goldbridgesplc.com
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160429005815/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
April 29, 2016 11:22 ET (15:22 GMT)
Altyngold (LSE:ALTN)
Historical Stock Chart
From May 2024 to Jun 2024
Altyngold (LSE:ALTN)
Historical Stock Chart
From Jun 2023 to Jun 2024
