TIDMGBGR
GOLDBRIDGES GLOBAL RESOURCES PLC
Interim report - six months to 30 June 2016
GoldBridges Global Resources Plc ("GoldBridges" or the
"Company"), the gold mining and development company, announces its
unaudited results for the six months to 30 June 2016.
Highlights:
Underground development
-- Following the completion of the second decline to 310 metres above sea
level (masl), from the 250 (masl), further associated works to
enable
access to the ore bodies 3 to 8 and 10 have been advancing and
are
expected to be completed by the end of September;
-- The existing decline was taken from 250 metres (masl) to 200 metres
(masl), the ore in relation to ore body 11 has been prepared
during
this period for stoping;
-- Tailings dam 4 is in an advanced stage of completion, the expected
time line of completion is the end of September ;
-- Timing of capital requirements re-evaluated. Total external funding
requirement estimated to be unchanged at between US$8m to
US$18m, to
finalise the underground expansion;
-- The Company has acquired an Atlas Copco boomer drilling machine T1D
and 3 Sandvik UG trucks TH430 each one capable of carrying 30
tons.
-- Award of a six-year exploration contract in relation to Karasuyskoye
project in May 2016, enabling exploratory drilling to confirm
the gold
deposits. The data gathered will enable the appropriate reports
to be
prepared for submission to the authorities in order to obtain
a
sub-soil production contract.
Production
-- H1 2016 gold production from Sekisovskoye of 3,694 ounces (H1 2015:
8,823 ounces), expected reduction due to repositioning of mine
to
underground production;
-- Total ore processed in the plant 116,834 tons (H1 2015 296,959 tons);
-- Total underground ore processed 28,824 (H1 2015 60,586 tons);
-- Contribution of ore from the underground mine increased to 25% of
total ore mined (H1 2015: 17%);
-- Operating cost of sales have increased as expected to US$1,201 due to
the low level of production (H1 2015 US$682/oz).
Financial
-- Revenue for the period of US$6.8m (H1 2015: US$12.8m);
-- Gross profit of US$1.05m in H1 2016, compared to US$3.3m in H1 2015;
-- Significant reduction in administrative costs falling by 40% from the
equivalent period last year from US$4m to US$2.4m, due to
savings at
head office on consultants and employment costs at subsidiary
level;
-- Capital raising of US$12m during the period through the issue of
convertible bonds;
-- Capital expenditure (including payments in advance for fixed assets
and transfers from assets under construction) amounted to
US$4.7m,
Capital expenditure requirement for the underground expansion
for the
year ended December 2016 re-assessed and not expected to
exceed
US$6.7m in total.
Aidar Assaubayev, CEO of GoldBridges Global Resources Plc
commented:
The Board remains confident in delivering a highly profitable
project from the Sekisovskoye underground mine operation. We are
developing the mine in accordance with the previously approved plan
and focusing on the key priority tasks for reaching full capacity.
During the period we have completed the construction of a second
transport decline, acquired new equipment, substantially completed
the construction of a fourth tailings dam, and received a license
to explore Karasu - in the opinion of the Board a great advance in
the successful transition of the Company.
For further information please contact:
GoldBridges Global Resources Plc
Rajinder Basra +44 (0) 207 932 2456
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 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 the near-vertical deposits which extend to the
surface below the open pits which have been previously mined.
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 2015, the Company's consolidated
revenue was US$24.05 million and its net assets US$38.4
million.
GOLDBRIDGES GLOBAL RESOURCES PLC
Chief Executive Review
H1 2016 Review
In order to understand the current position I will clarify the
progress and approach to date. The underground development has been
advancing with continuing capital and horizontal development. In
the current year progress has been made in two ways: firstly to
develop the second transport decline from 250 (masl) to the bottom
of the open pit at 310 (masl). Time and resources were diverted to
this project in priority to other works. This process has been
completed. Further associated works to enable access to the ore
bodies 3 to 8 and 10 have been advancing and are expected to be
completed by the end of September. Secondly, the new decline is
being taken from the 250 (masl) level to 200 (masl) level, to
access the ore bodies at that level. As you can appreciate there is
a lot of preparatory work to be undertaken, and we are pleased with
the work progress to date, there have not been any significant
problems.
Some development work was also undertaken in relation to ore
body 11 (serviced by the existing decline).
During this period ore body 5 (which is segregated into 3
sections), has been prepared for production, this is expected to be
on line towards the second half of H2 2016, this will coincide with
the access works being completed to the bottom of the open pit and
the second decline being fully operational.
At the same time, the other significant project in the period
has been the continuing work on tailings dam four, which is
required to take-up the tailings from the underground mine ore
processed once it is fully operational.
The plant was kept operational by a utilising a blend of low
grade, stock piled ore, the remnants of the open pit ore and
underground ore. The underground ore was a mixture of that produced
from ore body 11 and developmental ore, from ore bodies 8 and 10.
Currently recovery rate is below our targeted expectations but due
to improvements made in the last year we are targeting a recovery
rates in excess of 80% based on use of purely underground ore.
In relation to the capital requirement this was originally
estimated at approximately US$42m (excluding the contingency), of
which we have raised US$12m, of the balance it is expected that
US$12m will be funded by operational cash flows leaving a
requirement of approximately US$18m. This may be further reduced if
further costs savings can be made operationally or in purchasing
the required equipment. In the current period the Company acquired
the following equipment, as part of the underground development
expenditure, an Atlas Copco boomer drilling machine T1D and 3
Sandvik UG trucks TH430 each one capable of carrying 30 tons, a
significant upgrade to current capacity. A total budget was set for
this equipment of US$3.66m, the actual spend was US$2.5m, a
significant saving of 46%. The Company will maintain a keen eye for
purchasing good quality equipment at competitive prices were
possible.
Sufficient cash reserves are available in order to operate the
underground mine up to the point that it will be generating
projected operational revenues, It is not envisaged that any
further significant capital expenditure requirements are needed in
H2 2016.
During H1 2016, there has been a successful capital raising of
US$12m, through the issue of Convertible bonds, of this amount
US$10m was issued to African Resources the existing majority
shareholder and US$2m to other institutional investors. The
commitment of cash resources by the principal shareholder
demonstrates their belief, in relation to the future viability and
success of the project. The Company is also at this time continuing
to explore further financing options.
The Karasuyskoye operation is being progressed with a key
milestone being reached in May 2016 with the award of the sub-soil
contract. The award by Ministry of Investment and Development of
Kazakhstan of the contract which runs for six years, will allow the
Company to undertake exploration and validation activity in order
to submit detailed development plans to the relevant authorities to
obtain a sub-soil production contract. A detailed work program has
been agreed with the Kazakh authorities in order to meet the
detailed requirements to obtain the sub-soil production
contract.
H1 2016 Operational Overview
Sekisovskoye mining activity H1 2016 H1 2015
Total ore mined, open pit (t) 87,319 297,406
Total ore mined, underground (t) 28,824 60,586
Total ore milled (t) 116,834 296,959
Open pit gold grade (g/t) 0.87 1.20
Underground gold grade (g/t) 2.38 2.46
Average gold grade (g/t) 1.33 1.27
Average silver grade (g/t) 2.70 2.09
Gold recovery (%) 75.87 73.2
Gold produced (oz) 3,694 8,823
Silver produced (oz) 6,382 11,630
In relation to commentary on the actual production results for
H1 2016 as the plant was not operating at normal capacity or with a
normal feed stock, comparisons with prior periods and extrapolation
of trends from these results is difficult.
The gold recovery is increasing, however is below our targeted
expectations, and is expected to improve once one source of ore is
processed. While the underground gold grade was below that of 2015
H1 2016: 2.38g/t, (H1 2015: 2.46g/t), this still remains reflective
of developmental ore and will therefore vary in the near term.
GoldBridges remains confident that, once the underground mine is
fully developed and expanded, it can deliver ore to the
Sekisovskoye mill with an average gold grade well in excess of
those currently being achieved.
Underground expansion plans - moving forward
The plans in the near term are to finalise the ancillary works
to enable full access and finalise the works in relation to decline
2, to give access to ore bodies 3 to 8. At the same time
exploratory drilling will be undertaken from the 250 (masl), in
both directions for a distance of 50 metres in order to provide
information, to extract the maximum amount of high grade ore. This
is being undertaken by utilising the Company's Atlas Copco Diamec
rig, in addition a contractor is to be hired with another two rigs
in order to firstly increase the pace of development and secondly
in order to achieve a denser drilling matrix. The plan is to drill
approximately 4,500 linear metres by the end of the year using the
three rigs at the 250 (masl) - being 50 metres in both
directions.
At the same time the existing decline giving access to ore
bodies 9 and 11 will be taken from the current level of 250( masl)
to 200 ( masl) by the end of the year. Preparatory work will then
be done to bring these zones into production during 2017.
As previously reported the Company will utilise the long hole
open stoping method of mining, with paste back fill. As the Company
is currently obtaining the necessary permits in relation to the
construction of the paste plant, at present the mining methods used
are not the most efficient possible in terms of recovery, dilution
and costs. The Company are progressing plans in order to complete
the paste plant as a priority, and are planning to have it
operational in 2017.
We are carefully monitoring costs to ensure that cash
utilisation is in line with the revised budgets.
The Company is currently using a gold price of $1,100 per ounce
in its assumptions for the foreseeable future, and the underground
expansion will be based on this basis. At these prices the Company
is expected to achieve a high level of profitability and rate of
return on the investment. The current gold price is in the region
of US$1,300, with the possibility of a further upside to the
projections if the prices are maintained in to the future.
H1 2016 Financial Review
GoldBridges has reported a gross profit of US$1.0m for H1 2016,
against US$3.3m for H1 2015, with turnover of US$6.8m (H12015
US$12.8m). The figures reflect the time and resources diverted to
the preparation of the underground mine in order to commence
commercial production from the ore bodies 3,8, and 10.
Sekisovskoye produced 3,694 ounces of gold in H1 2016 (H1
2015:8,823 ounces). Gold sold during the period amounted to 5,513
ounces (H1 2015: 10,440 ounces) at an average price of US$1,235/oz
(H1 2014: US$1,231/oz). The average price of sales achieved
includes revenues generated from silver sales in the period, which
are treated as incidental to gold production.
The cash cost (cost of sales excluding depreciation and
provisions) for the period was US$1,201/oz (H1 2014: US$682/oz).
The increase in the cost of production is to expected given the low
level of production.
Administrative costs were reviewed at both head office and at
subsidiary level with savings being made by the reduction of
professional costs at head office and significant savings being
made in relation to wages and salaries at subsidiary level.
Capital expenditure totalled US$4.7m in H1 2016 (H1 2015:
US$4.1m). The main item of capital expenditures were the costs
associated with the tailings dam, drilling equipment and
trucks.
As of 30 June 2016, the Company had cash of US$4.9m. During the
period the Company has repaid two tranches of debt in relation to
the EBRD loan, an amount of US$5.0m remains outstanding. This
amount is repayable over 6 quarterly instalments. The Company has
sufficient cash resources to operate at the current time and, it is
expected more significant revenues are to be generated from
production towards the end of H2 2016. In addition to the monies
raised in H1 2016, the Company received a short term loan from
Amrita Investments Limited (a company associated with the major
shareholder) of US$1m, to further aid cash requirements.
Aidar Assaubayev
Chief Executive Officer
31 August 2016
GOLDBRIDGES GLOBAL RESOURCES PLC
Consolidated income statement
Six months ended Six monthsended Year ended31
30 June 2016 30 June2015 December2015
(unaudited) (unaudited) (audited)
Note US$'000 US$'000 US$'000
Revenue 6,811 12,846 24,054
Cost of sales (5,758) (9,534) (19,763)
Gross profit 1,053 3,312 4,291
Administrative (2,390) (4,094) (9,762)
expenses
Impairments - 737 674
reversed
Operating loss (1,337) (45) (4,797)
Finance income - - -
Foreign (883) (173) (5,718)
exchange
loss
Finance Expense (323) (244) (1,235)
Loss before (2,543) (462) (11,750)
taxation
Taxation (8) 35 1,532
Loss attributable
to (2.551) (427) (10,218)
equity
shareholders
Loss per
ordinary
share
Basic & diluted 2 (0.1c) (0.02c) (0.4c)
(US cent)
GOLDBRIDGES GLOBAL RESOURCES PLC
Consolidated statement of comprehensive income
Six months ended Six monthsended Year ended31
30 June 2016 30 June2015 December2015
(unaudited) (unaudited) (audited)
(unaudited)
US$'000 US$'000 US$'000
Loss)for the period/year (2,551) (427) (10,218)
Currency translation
differences arising 141 (931) (34,577)
on translations of
foreign operations
items which will or may
be reclassified
to profit or loss
Currency translation - - 4,574
differences
arising on translation
of foreign operations
relating to taxation
Total comprehensive loss
for the period/year (2,410) (1,358) (40,221)
attributable to equity
shareholders
GOLDBRIDGES GLOBAL RESOURCES PLC
Consolidated statement of financial position
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2016 2015 2015
Notes (unaudited) (unaudited) (audited)
US$'000 US$'000 US$'000
Non-current assets
Intangible asset 3 9,632 18,530 9,887
Property, plant 4 36,688 63,154 35,134
and equipment
Inventories 499 - 604
Other receivables 2,237 1,336 1,337
Deferred tax asset 5,145 2,360 5,145
Restricted cash 137 249 137
54,338 85,629 52,244
Current assets
Inventories 1,790 11,590 3,223
Trade and other 2,649 9,783 2,649
receivables
Cash and cash 4,863 2,307 1,084
equivalents
9,302 23,680 6,956
Total assets 63,640 109,309 59,200
Current liabilities
Current tax payable - (463) (191)
Trade and other (5,049) (14,635) (9,298)
payables
Other financial (332) (326) (297)
liabilities
Provisions (218) (378) (247)
Borrowings (6,107) (3,333) (6,676)
(11,706) (19,135) (16,709)
Net (2,404) 4,545 (9,753)
current
(liabilities)/assets
Non-current liabilities
Other financial (396) (438) (537)
liabilities
Provisions (3,530) (7,472) (3,553)
Borrowings (12,017) (5,000) -
(15,943) (12,910) (4,090)
Total liabilities (27,649) (32,045) (20,799)
Net assets 35,991 77,264 38,401
Equity
Called-up share capital 5 3,886 3,886 3,886
Share premium 141,918 141,918 141,918
Merger reserve (282) (282) (282)
Currency translation (47,276) (18,345) (47,417)
reserve
Accumulated loss (62,255) (49,913) (59,704)
Total equity 35,991 77,264 38,401
The financial information was approved and authorised for issue
by the Board of Directors on 31 August 2016 and was signed on its
behalf by:
Aidar Assaubayev
Chief Executive Officer
GOLDBRIDGES GLOBAL RESOURCES PLC
Consolidated statement of changes of equity
For the six months
ended 30 June 2016
Share capital Share premium Merger reserve Currency translation Accumulated losses Total
reserve
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000
At 1 January 2016 3,886 141,918 (282) (47,417) (59,704) 38,401
Loss for the period - - - - (2,551) (2,551)
Exchange differences - - - 141 - 141
on translating
foreign operations
Total comprehensive loss - - - 141 (2551) (2,410)
for the period
At 30 June 2016 3,886 141,918 (282) (47,276) (62,255) 35,991
For the six months
ended 30 June 2015
Share capital Share premium Merger reserve Currency translation reserve Accumulated losses Total
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000
At 1 January 2015 3,702 137,234 (282) (17,414) (49,486) 73,754
Loss for the period - - - - (427) (427)
Exchange differences - - - (931) - (931)
on translating
foreign operations
Total comprehensive loss - - - (931) (427) (1,358)
for the period
Shares issued 184 4,968 - - - 5,152
Issue costs - (284) - - - (284)
At 30 June 2015 3,886 141,918 (282) (18,345) (49,913) 77,264
For the year ended
31 December 2015
Share capital Share premium Merger reserve Currency translation reserve Accumulated losses Total
Audited $'000 $'000 $'000 $'000 $'000 $'000
At 1 January 2015 3,702 137,234 (282) (17,414) (49,486) 73,754
Loss for the year - - - - (10,218) (10,218)
Other comprehensive loss - - - (30,003) - (30,003)
Total comprehensive - - - (30,003) (10,218) (40,221)
loss for the year
Shares issued 184 4,968 - - - 5,152
Issue costs - (284) - - - (284
At 31 December 2015 3,886 141,918 (282) (47,417) (59,704) 38,401
GOLDBRIDGES GLOBAL RESOURCES PLC
Consolidated cash flow statement
Six months ended Six months ended Year ended
30 June 2016 30June 2015 31December
2015
(unaudited) unaudited (audited)
Note US$'000 US$'000 US$'000
Net 8 (3,496) 1,867 8,183
cash
(outflow)/inflow
from
operating
activities
Investing
activities
Purchase of (2,574) (4,123) (9,639)
property,
plant
and equipment
Advances (900) - -
paid for
equipment
Restricted cash - 5 -
Net cash used
in investing (3,474) (4,118) (9,639)
activities
Financing
activities
Proceeds - 5,152 5,152
on issue
of shares
Issue costs - (284) (284)
Loans received 13,000 - -
Loans repaid (1,667) (1,667) -
Interest paid (584) (327) (3,990)
Net cash flow
from 10,749 2,874 878
financing
activities
Increase/(Decrease)
in cash 3,779 623 (578)
and
cash equivalents
Foreign currency
translation - - (22)
Cash and cash
equivalents
at 1,084 1,684 1,684
the beginning
of the year
Cash and cash
equivalents 4,863 2,307 1,084
at end of
the year
GOLDBRIDGES GLOBAL RESOURCES PLC
Notes to the consolidated financial information
Basis of preparation
General
GoldBridges Global Resources Plc is registered and domiciled in
England and Wales.
The interim financial results for the period ended 30 June 2016
are unaudited. The financial information contained within this
report does not constitute statutory accounts as defined by Section
434(3) of the Companies Act 2006.
This interim financial information of the Company and its
subsidiaries ("the Group") for the six months ended 30 June 2016
has been prepared on a basis consistent with the accounting
policies set out in the Group's consolidated annual financial
statements for the year ended 31 December 2015. It has not been
audited, does not include all of the information required for full
annual financial statements, and should be read in conjunction with
the Group's consolidated annual financial statements for the year
ended 31 December 2015. The 2015 annual report and accounts, as
filed with the Registrar of Companies, received an unqualified
opinion from the auditors.
The financial information is presented in US Dollars and has
been prepared under the historical cost convention.
The same accounting policies, presentation and method of
computation are followed in this consolidated financial information
as were applied in the Group's latest annual financial statements
except that in the current financial year, the Group has adopted a
number of revised Standards and Interpretations. However, none of
these have had a material impact on the Group.
In addition, the IASB has issued a number of IFRS and IFRIC
amendments or interpretations since the last annual report was
published. It is not expected that any of these will have a
material impact on the Group.
Going concern
The current cash position is sufficient to cover ongoing
operating and administrative expenditure for the next 12
months.
During the period the Company secured an additional US$12m
(gross), from the issue of convertible bonds. The Directors
consider this together with income from the Group's producing
assets to be sufficient to cover the expenses of running the
Group's business for the foreseeable future.
In terms of financing the underground development, the Company
is in detailed discussions with various other parties regarding
potential financing for completion of the expansion, and is keen to
continue these discussions. However, with African Resources'
commitment to fund some or all of the underground expansion project
capital expenditure, the Company is continuing its underground
expansion activities and is confident in project development.
The Company has therefore adopted the going concern basis in the
preparation of these financial statements.
GOLDBRIDGES GLOBAL RESOURCES PLC
Notes to the consolidated financial information (continued)
Directors Responsibility Statement and Report on Principal Risks
and Uncertainties
Responsibility statement
The Board confirms to the best of their knowledge:
The condensed set of financial statements have been prepared in
accordance with IAS 35 Interim Financial Reporting as adopted by
the EU;
The interim management report includes a fair review of the
information required by:
DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
DTR 4.2.8R of the Disclosures and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
the period; and any changes in the related party transactions
described in the last annual report that could do so.
The Company's management has analysed the risks and
uncertainties and has in place control systems that monitor daily
the performance of the business via key performance indicators.
Certain factors are beyond the control of the Company such as the
fluctuations in the price of gold and possible political upheaval.
However, the Company is aware of these factors and tries to
mitigate these as far as possible. In relation to the gold price
the Company is pushing to achieve a lower cost base in order to
minimise possible downward pressure of gold prices on
profitability. In addition, it maintains close relationships with
the Kazakhstan authorities in order to minimize bureaucratic delays
and problems.
Risks and uncertainties identified by the Company are set out on
page 8 and 9 of the 2015 Annual Report and Accounts and are
reviewed on an ongoing basis. There have been no significant
changes in the first half of 2016 to the principal risks and
uncertainties as set out in the 2015 Annual Report and Accounts and
these are as follows:
-- Fiscal changes in Kazakhstan
-- Not being awarded the subsoil production mining licence for
Karasuyskoye
-- No access to capital / funding for Sekisovskoye or Karasuyskoye
-- Commodity price risk
-- Currency risk
-- Changes to mining code in Kazakhstan
-- Reliance on operating in one country
-- Reliant on one operating mine
-- Cost (capex and operating cost) inflation
-- Technical difficulties associated with developing the underground mine
at Sekisovskoye
-- Technical difficulties associated with increasing the Sekisovskoye
processing plant
-- Exploration work being underwhelming at Karasuyskoye
-- Failure to achieve production estimates
-- Russian political issues
GOLDBRIDGES GLOBAL RESOURCES PLC
Notes to the consolidated financial information (continued)
2. Loss per ordinary share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period. The
weighted average number of ordinary shares and retained loss for
the financial period for calculating the basic loss per share for
the period are as follows:
Six months ended Six monthsended Year ended31
30 June 2016 30June 2015 December2015
(unaudited) (unaudited) (audited)
The basic weighted
average 2,334,342,130 2,261,225,463 2,298,284,596
number of ordinary
shares in issue
during
the period
The loss for
the period (2,551) (427) (10,218)
attributable
to
equity shareholders
(US$'000s)
3. Intangible assets
US$'000
Cost
1 January 2015 20,736
Currency translation adjustment (429)
30 June 2015 20,307
Currency translation adjustment (9,168)
31 December 2015 11,139
Currency translation adjustment 28
30 June 2016 11,167
Accumulated amortisation
1 January 2015 1,296
Charge for the period 526
Currency translation adjustment (45)
30 June 2015 1,777
Charge for the period 326
Currency translation adjustment (851)
31 December 2015 1,252
Charge for the period 273
Currency translation adjustment 13
30 June 2016 1,538
Net book values
30 June 2015 18,530
31 December 2015 9,887
30 June 2016 9,629
The intangible assets relate to the historic geological
information pertaining to the Karasuyskoye Ore Fields. The Ore
Fields are located in close proximity to the current open pit and
underground mining operations of Sekisovskoye.
In May 2016 the Company was awarded subsoil user rights to
Karasuyskoye by the Ministry of Investments and Development in
Kazakhstan. The subsoil user rights allows the Company to perform
further exploration work in order to complete a wok program which
will need to be submitted to the authorities for approval. The work
program is currently being finalised for submission to the
appropriate authorities.
The intangible asset is to be reclassified as exploration and
evaluation expenditure.
GOLDBRIDGES GLOBAL RESOURCES PLC
Notes to the consolidated financial information (continued)
4. Property, plant and equipment
Mining Freehold Plant, Assets under Total
properties land and Equipment construction
and leases buildings fixtures
and
US$000 fittings US$000 US$000
US$000 US$000
Cost
1 January 16,541 15,434 26,893 29,414 88,282
2015
Additions 119 616 1,964 1,869 4,568
Disposals - - (4) (25) (29)
Transfers - 255 64 (319) -
Currency (172) (324) (536) 273 (759)
translation
adjustment
30 June 16,488 15,981 28,381 31,212 92,062
2015
Additions - 594 92 4,582 5,268
Additions (15) - (182) - (197)
reclassified
Disposals (863) - (292) - (1.155)
Disposals 4 4
reclassified
Transfers - (255) (64) 319 -
Currency (7,220) (7,240) (12,461) (16,698) (43,619)
translation
adjustment
31 December 8,390 9,080 15,474 19,419 52,363
2015
Additions - - 1,947 888 2,835
Disposals - - (138) - (138)
Transfers - - - - -
Currency 9 16 26 32 83
translation
adjustment
30 June 8,399 9,096 17,309 20,339 55,143
2016
Accumulated
depreciation
1 January 3,432 6,046 17,566 - 27,044
2015
Charge for 200 671 1,613 - 2,484
the period
Disposals - - 2 - 2
Transfers - - 15 - 15
Currency (71) (131) (453) - (637)
translation
adjustment
30 June 3,561 6,586 18,761 - 28,908
2015
Charge for 225 465 1,050 - 1,740
the period
Disposals - - (98) - (98)
Currency (1,665) (3,062) (8,594) - (13,321)
translation
adjustment
31 December 2,121 3,989 11,119 - 17,229
2015
Charge for 43 355 890 - 1,288
the period
Disposals - - (113) - (113)
Transfers - - - - -
Currency 4 15 32 - 51
translation
adjustment
30 June 2,168 4,359 11,928 - 18,455
2016
Net Book
Values
1 January 13,109 9,388 9,327 29,414 61,238
2015
30 June 12,927 9,395 9,620 31,212 63,154
2015
31 December 6,269 5,091 4,355 19,419 35,134
2015
30 June 6,231 4,737 5,381 20,339 36,688
2016
The additions in the period principally relate the continuing
works associated with the underground mine in relation to
development of the declines, ventilation shafts and other
associated works.
5. Share capital
Number US$000
1 January 2015 2,211,342,130 3,702
Issued during the year
Share placement 123,000,000 184
31 December 2015 & 2,334,342,130 3,886
30 June 2016
6. Reserves
A description and purpose of reserves is given below:
Reserve Description and purpose
Share capital Amount of the contributions
made by shareholders
in return for the issue of shares.
Share premium Amount subscribed for share capital
in excess of nominal value.
Merger Reserve Reserve created on application of merger
accounting under a previous GAAP.
Currency translation reserve Gains/losses arising on re-translating
the net assets
of overseas operations into US Dollars.
Accumulated losses Cumulative net gains and
losses recognised in the
consolidate statement
of financial position.
GOLDBRIDGES GLOBAL RESOURCES PLC
Notes to the consolidated financial information (continued)
7. Related party transactions
Remuneration of key management personnel
The remuneration of the Directors, who are the key management
personnel of the Group, is set out below in aggregate for each of
the categories specified in IAS 24 - "Related Party
Disclosures".
Six months ended Six monthsended Year toDecember2015
30 June 2016 30June 2015
US$ US$ US$
Short term 185,543 229.668 522,084
employee
benefits
Other - - -
185,543 229,668 522,084
Social security 13,610 7,142 30,392
costs
199,153 236,810 552,476
During the period the company entered into the following
transactions with companies in which the Assaubayev family have a
controlling interest:
-- A short term loan was made by Amrita Investments Limited to the
Company of US$1m, this amount is still outstanding as at 30 June
2016.
-- An amount of US$6,000 was incurred in purchasing consumables with Asia
Mining Group, (H1 2015 US$795,000).
-- An amount of US$179,000 was incurred in rental costs during the
period, (H1 2015: US$253,000)
An amount of US$687,000 (H1 2015 US$2.6m) is outstanding and is
included within trade payables.
The transactions incurred by the Company were on normal
commercial terms.
8. Notes to the cash flow statement
Net Six months Six Year
cash (outflow)/inflow ended 30 June 2016 monthsended ended
from (unaudited) 30 31December2015(audited)US
operating activities US$000's June2015(unaudited)US$000's $000's
Loss before taxation (2,543) (45) (11,750)
Adjusted for
Finance expense 323 (245) 1,235
Depreciation of tangible 1,228 2,510 4,224
fixed assets
Amortisation of 273 517 852
intangibles
Change in provisions - (737) (2,618)
Decrease/(increase) 1.523 (708) 5,042
in inventories
Decrease in trade 52 2,432 5,338
receivables
Decrease in other (177) - (272)
financial
liabilities
(Decrease)/increase (4,884) (1,441) 363
in trade
and other payables
Loss/(profit) 25 (94) 236
on disposal
of property, plant and
equipment
Foreign currency 883 (357) 5,718
translation
Cash (outflow)inflow (3,297) 1,832 8,368
from operations
Income taxes paid (199) 35 (185)
(3,496) 1,867 8,183
9. Events after the balance sheet date
There were no significant post balance sheet events to
report.
This report will be available on our website at
www.goldbridgesplc.com
GOLDBRIDGES GLOBAL RESOURCES PLC
Company information
Directors Kanat Assaubayev Chairman
Aidar Assaubayev Chief executive officer
Sanzhar Assaubayev Executive director
Ashar Qureshi Non-executive director
Neil Herbert Non-executive director
Alain Balian Non-executive director
Secretary Rajinder Basra
Registered office Company number : 05048549
and number 28 Eccleston Square
London
SW1V 1NZ
Telephone: +44
208 932 2455
Company website
www.goldbridgesplc.com
Kazakhstan office 10 Novostroyevskaya
Sekisovskoye Village
Kazakhstan
Telephone: +7 (0)
72331 27927
Fax: +7 (0) 72331 27933
Auditor BDO LLP,
55 Baker Street,
London W1U 7EU
Registrars Neville Registrars
18 Laurel Lane
Halesowen
West Midlands B63 3DA
Telephone: +44 (0)
121 585 1131
Bankers NatWest Bank plc
London City Commercial
Business Centre
7th Floor, 280 Bishopsgate
London
EC2M 4RB
LTG Bank AG
Herrengasse 12
FL-9490, Vaduz
Principal of Liechtenstein
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160831006275/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 01, 2016 02:00 ET (06:00 GMT)
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