TIDMALTN
30 April 2019
Altyn Plc
("Altyn" or the "Company")
Results for the year ended 31 December 2018
Altyn Plc (LSE:ALTN) an exploration and development company, is
pleased to announce its results for the year ended 31 December
2018.
Highlights
Underground development & exploration
-- Additional shaft work was done to provide an additional exit to the
surface from the decline in order to reduce the haulage
distance, and
increase productivity in 2019.
-- Operational exploration was carried out carried out at ore bodies no.
1, 2, and 3-8.
-- Further safety works were performed at the transport portal, and
safety works carried out on the ventilation system.
-- Extensive exploration drilling carried out was carried out in ore ore
bodies No 2 and 3-8 in the period.
-- Test production was carried out at Karasuyskoye with 500t of ore
extracted from, the site TerenSai, a ore body identified in
the
exploration area
Financial highlights
-- Turnover decreased in the year to US$19.4m (2017: US$21.6m).
-- 14,990oz of gold sold (2017: 16,747oz), an decrease of 1,757oz.
-- Average gold price achieved (including silver as a by- product),
US$1,292oz, (2017: US$1,293oz).
-- Adjusted EBITDA (Earnings before interest, tax, depreciation and
amortisation and excluding impairment) of US$0.9m (2017:
US$3.7m).
-- In April 2019 the Company obtained a loan from a Kazakh based bank of
US$1m, and is in continuing talks with the bank to raise further
funds
for capital development.
-- In February 2018 the Company converted US$9.7m of the US$10m bond
issued to African Resources into 233,333,333 new ordinary
shares. It
is the intention to convert the remaining shares and interest
into
ordinary shares.
Operational highlights
-- Gold poured 15,282oz, (2017: 16,717oz) a 8.58% decrease year-on-year,
the decrease in production was a result of the lower grade
obtained
from the mixed ore - the ore processed was similar to last year
at
348,000t ( 2017: 333,000t)
-- Underground gold grade 1.95g/t, (2017: 2.08g/t).
-- Operating cash cost US$865/oz, (2017: US$774/oz).
-- Gold recovery rate 83.23% (2017: 83.54%)
For further information please contact:
Altyn PlcRajinder Basra, CFO +44 (0) 207 932 2456
VSA Capital (Corporate Broker)Andrew Monk / Andrew Raca +44 (0)
203 005 5000
CHAIRMAN'S STATEMENT
Dear shareholders,
Following positive progress made on several financing options
during the year, these, initiatives were ultimately abandoned owing
to unappealing terms. The company has now embarked on sourcing new
alternatives, which resulted in securing an initial loan of US$1m
from a Kazakh Bank. Negotiations are ongoing with the lender to
secure a further US$13m needed for additional mining equipment.
In the interim, the major shareholder remains committed to the
business and matched the bank's disbursement by providing a similar
amount in order to purchase a low haulage dumper. This initiative,
alongside other developmental work, is expected to increase the
monthly run rate of production to approximately 40,000t in
2019.
Operational performance has satisfactory given the
circumstances. Production increased slightly, mining grade declined
and the company maintained a tight grip on operational expenses.
The effects cost improvements were, however, clouded by one-off
exceptional items.
At this stage the core focus is to attain a positive resolution
on financing which should trigger a significant turnaround in
profitability. A strong operational gearing given a lean cost base,
expected increase in volumes (60-70kt per month) and associated
improvement in grades should result in improved results over the
coming periods.
Kanat AssaubayevChairman30 April 2019
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
After reconsidering and weighing funding options the company
entered into discussions with a Kazakhstan based bank in order to
raise the necessary finance to take the project forward.
The proceeds of an initial loan taken out coupled with an
injection of funds from the majority shareholder, are being used in
the short term to purchase equipment to increase production from
the current levels to approximately 40,000t per month. The expected
increase in production is planned to take place towards the end of
Q2 2019.
While there were savings on internal costs, the effect of these
were clouded by some restructuring and duplication of costs as the
Company moved development work from internal resources to an
external contractor leading to a higher cost of production during
the year.
Current developments
The following was achieved with regards to the underground mine
in the year:
-- There has been no further development of the decline which was taken
down to 150masl in the prior year. There is adequate access to
a
number of ore bodies at this level. In the current mining plan
for
2019 there is sufficient mineable ore for the planned
production.
A cross cut was completed of the transport decline no.2, which
was
done from two side 250masl and 320masl. This decreased the
haulage
distance, provided a second exit to the mine surface.
During the year extensive maintenance and safety works were
carried out including additional ventilation works, maintenance
of
the tunnels and exit portal.
-- Ore bodies that were prepared for production in 2017 ore bodies 3-8 at
levels 250masl to 150masl were excavated during 2018. The
average
grade extracted from this ore body was between 2.37g/t -2.10g/t.
These
were excavated together with ore bodies No. 1 between levels
320masl
and 285masl, which produced an initial grade of 2.01, and ore
body 11
between 195masl and 185masl which produced a grade of
1.86g/t.
-- Refurbishment of the processing plant and the preparation of the ore
bodies were completed to a large extent in the prior year.
Necessary
maintenance was carried out in 2018 but the capital program was
kept
to a minimum in order to preserve cash flows.
-- During the year the Company placed an order for an additional LHD
Caterpillar (Ioad-haul- dumper) at a cost of US$0.7m, which
will
increase the total number of underground LHDs to 3. This is
expected
to increase the supply of feedstock to the processing plant
to
approximately 40,000t per month. Advance payments have also been
made
for an additional truck to be also delivered in May 2019 at a
similar
cost. The Company is also expecting to purchase a further
haulage
trucks towards the end of the year.
During the year the Company has continued to develop its
exploration site at Karasuyskoye, spending approximately US$1.6m.
These costs were capitalized in line with accounting policy. Test
production was achieved with 500t of ore processed from TerenSai
(one of the contract areas in Karasuskoye). A mine and
beneficiation plant plans have been designed, and initial
procedures drawn up to start resources exploitation in 2021- 2022.
The initial capex requirements have been incorporated into the
budget.
Looking forward
-- The plan for 2019 is to reduce the amount of development work in
relation to the decline as the Company has achieved sufficient
ore
bodies. The intention is to move the decline down to 140masl in
2019
to access the predicted higher grade ore of 3.43g/t at ore body
11.
-- The ore extraction will be undertaken from ore bodies 11 as noted
above, and also ore bodies 3-8. The expected grade from these
ore body
in 2019 is expected to produce an average grade of 2.41g/t.
This
together with the feed stock from the additional equipment
results in
the expectation that production and output will increase in
2019.
-- Karasuyskoye exploration will continue as planned with an expected
additional spending of US$1.7m in 2019. Exploration effort will
be
principally concentrated on the TeranSai site which has produced
very
promising results.
Capital requirements
Future development plans are dependent on raising further
funding. Limited short term funding has been obtained that will
enable the Company to increase production and turnover in 2019. It
is in negotiations to obtain debt finance that will substantially
meet a large part of the capex requirement. Once the equipment is
in place and production is rising, additional funding is expected
to come from the Group's internal cash flow generation, and as a
backstop from the principal shareholder to fund the expansion. The
expectation as it currently stands is that the increased funding
will be in place in Q3 2019.
Projected capital expenditures
underground operations
Total 2019 2020 2021
US$m US$m US$m US$m
Prospect drilling 3.3 0.3 1.5 1.5
Underground development 5.6 2.0 1.6 2.0
Infrastructure 3.4 - 3.4 -
Ore handling facilities 21.9 6.0 13.6 2.3
Karasuyskoye - exploration 4.9 1.7 1.6 1.6
Total 47.4 11.7 26.2 9.8
Sekisovskoye operational update
The 2018 operational performance of the Company's Sekisovskoye
gold mine during versus the prior year is shown in the tables. The
attached mining map shows the grades and ore that were extracted
during the year as well as the corresponding extraction plans for
2019. The 2018 range of underground ore grade varied between
1.86g/t to 2.37g/t. For 2019 grades are expected to increase as ore
extraction moves to lower depths. As such 2019 grade is expected to
average at 2.41g/t with a range of a high 3.43g/t for ore body 11
to a low of 2.01 for ore bodies 3-8.
The recovery rate remained stable at 83.23%(2017: 83.54%). No
significant changes are expected in this regard and no further
upgrades to the plant are currently anticipated.
The budgets going forward are based on a stable gold price in of
US$1,250. No significant changes are expected in the cost structure
and no significant write-offs are expected to occur in 2019.
Mining - underground
2018 2017
Ore mined T 278,883 287,389
Gold grade g/t 1.95 2.08
Silver grade g/t 2.92 2.80
Contained gold oz 17,482 19,243
Contained silver oz 26,110 25,909
Mining - processing
2018 2017
Crushing T 340,091 332,502
Milling T 348,169 332,947
Gold grade g/t 1.68 1.88
Silver grade g/t 2.50 2.56
Gold recovery % 83.23 83.54
Silver recovery % 74.37 73.85
Contained gold oz 18,367 20,040
Contained silver oz 27,986 27,138
Gold poured oz 15,282 16,717
Silver poured oz 20,794 19,989
MARKET REVIEW AND SHARE PRICE PERFORMANCE
Commentary
On a positive note the fundamentals are good. The gold price has
been stable and is expected to be in a similar range in the future
with some commentators predicting an upward trend, moving up to
US$1,400.
As the Company earns its revenue in US Dollars a strengthening
Dollar is seen as good for the Company as its principal costs are
in Tenge. The only significant liabilities in Dollars are the
loans, however the principal loans are not due for repayment until
2021. Again the predictions are that the Dollar will strengthen
against the Tenge in the future, slowly moving from its current
range of KZT380 towards KZT400 and beyond.
The share price of the Company has been trading again at a low
level, the Directors are aware this is a reflection of the Company
not moving to the next stage of operations.
The share price has seen a steady decline from April 2018 to
April 2019 from 1.4p to its current value of 0.57p. The Directors
are aware this is underperforming all significant benchmarks. The
principal driver to the share price will be an increase in
production and profitability.
The principal shareholder has committed funds in April 2019 and
the Company has obtained a loan of US$1m. This has been used to
order new equipment which will come on stream in May 2019. This
will start to increase production to the 40,000t target. The
Directors are confident that further significant funding can be
obtained in the near future to further increase production.
FINANCIAL PERFORMANCE
Key performance indicators (KPIs)
Annual gold poured (oz)15,282oz201815,2822017 16,7172016
10,970
Revenue (US$m)US$19.4m201819.42017 21.62016 15.9
Operating cash production cost (US$oz)US$865oz20188652017
7742016 832
Adjusted EBITDA (US$m)US$0.9m20180.92017 3.692016 0.3
Net assets (US$m)US$34.9m201834.92017 33.22016 34.0
The gold poured decreased from 16,717oz to 15,282oz from the
prior year, reflecting the lower overall gold grade achieved of
1.68g/t (2017: 1.88g/t). This as in the prior year was due to ore
being mined from the underground workings being diluted with lower
grade stockpiled ore. In addition the underground ore itself is not
being extracted in an manner to maximise the grade, and being
diluted with lower grade ore. This process is expected to continue
until new equipment and targeted ore production can be achieved. As
the Company is continuing to use the low grade ore, part of the
provision made against the stockpile in prior periods, has been
reversed amounting to US$383,000 (2017: US$374,000).
The total cash cost of production, which includes administrative
costs but excludes depreciation and provisions, amounted to
US$1,235/oz, (2017: US$1,075oz). The operating cash cost amounts to
US$865/oz (2017: US$774/oz). This is based on the above but
excluding administrative expenses. The cash cost of production has
risen as direct consequence of the lower grade and production. In
addition there have been additional costs with the restructuring of
the internal labour force being replaced by the subcontracted
contractors. The Company's aim is still to reduce the long term
cash cost of sales down to the range of US$540.
The Group has reported a loss of US$4.0m before tax (2017:
US$1.9m), with a gross profit of US$2.5m (2017: US$4.2m). The
operating loss is US$2.5m (2017: loss US$484,00). The principal
drivers behind the loss are the restructuring costs of closing down
a number of operational departments in Sekisovskoye included within
cost of sales. In addition, significant write offs of irrecoverable
VAT and other penalties. These are included within administrative
costs and amounted to US$2m and are not expected to reoccur in the
following year.
The EBITDA is US$0.9m, after adjusting the operating loss of
US$2.9m (2017: US$0.48m) for depreciation of US$3.95m (2017:
US$4.5m), and impairment gain of US$0.6m (2017: US$0.4m). A
positive EBITDA, however lower than the one budgeted.
During 2018, the Company sold 14,990oz of gold (2017 16,747oz).
The average price achieved per oz in 2018 was US$1,292 similar to
last year, which achieved an average price of US$1,293. The prices
are budgeted to stay at similar levels in 2018, and there are no
changes anticipated to the sales offtake agreement currently in
place to the Kazakh national refinery.
The current cash position and anticipated trading is sufficient
for the budgeted capex (with limited expansion), and budgeted
production for the next year to increase with the new equipment
ordered in May 2019. The principal shareholders have agreed to
provide monetary support as necessary, in order to provide any
short term financing that may be required.
Cash at year-end was US$105,000 (2017: US$704,000). Resources
are sufficient to meet the current working capital requirements.
The cash was lower in 2018 as a number of payables outstanding were
settled prior to the year end. The Company generated a positive
EBITDA which is expected to increase next year as one off costs are
avoided. Financing commitments are expected to be met from the cash
generation of the Company. Principal financing commitments are
payment of interest on the US$2m convertible loan and repayment of
short term borrowings from the bank, in total these are expected to
amount to approximately US$1m.In 2018 as in 2017 the principal
shareholders have agreed to defer any loan repayments, until funds
allow.
Until further financing is obtained no significant additional
purchasing of equipment is budgeted to be made. A limited capex
program is in place for 2019. This will increase output from the
current levels to an expected run rate of 40,000t per month. The
budgeted capex does include further development of the Karasuyskoye
site in 2019, which is seen as a valuable resource.
The consolidated net assets of the Company are US$34.9m (2017:
US$33.2m), the change from the prior year is essentially a result
of the conversion of the bond liability into equity.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
year ended 31 December 2018
Notes 2018 2017
US$000 US$000
Revenue 3 19,366 21,649
Cost of sales (16,871) (17,470)
Gross profit 2,495 4,179
Administrative expenses (5,543) (5,037)
Impairments - reversed 562 374
Operating loss (2,486) (484)
Foreign exchange (196) (52)
Finance expense (1,283) (1,381)
Loss before taxation (3,965) (1,917)
Taxation charge (323) (12)
Loss attributable to equity (4,288) (1,929)
holders of the parent
Loss per ordinary share
Basic & diluted 4 (0.17c) (0.08c)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
year ended 31 December 2018
2018 2017
US$000 US$000
Loss for the year (4,288) (1,929)
Currency translation differences arising (5,712) 98
on translations of foreign
operations items that may be reclassified
to profit or loss
Currency translation differences 2,560 1,088
arising on translations
of foreign operations relating to taxation
Total comprehensive loss attributable (7,440) (743)
to equity holders of the parent
The accompanying notes are an integral part of these financial
statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
year ended 31 December 2018
Company number 5048549 Notes 2018 2017
US$000 US$000
Non-current assets
Intangible assets 5 12,338 11,881
Property, plant and equipment 6 28,391 35,163
Trade and other receivables 1,303 1,476
Deferred tax asset 7,999 6,928
Restricted cash 28 14
50,059 55,462
Current assets
Inventories 1,297 1,713
Trade and other receivables 3,081 2,531
Cash and cash equivalents 105 704
4,483 4,948
Total assets 54,542 60,410
Current liabilities
Trade and other payables (7,846) (7,822)
Other financial liabilities (122) (399)
Provisions (94) (112)
Borrowings (1,218) (724)
(9,280) (9,057)
Net current liabilities (4,797) (4,109)
Non-current liabilities
VAT payable (1,383) -
Other payables (644) (160)
Provisions (4,412) (4,512)
Convertible bonds (3,963) (12,496)
Borrowings - (937)
(10,402) (18,105)
Total liabilities (19,682) (27,162)
Net assets 34,860 33,248
Equity
Called-up share capital 4,054 3,886
Share premium 151,470 141,918
Merger reserve (282) (282)
Other reserve 333 333
Currency translation reserve (47,770) (44,618)
Accumulated losses (72,945) (67,989)
Total equity 34,860 33,248
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
year ended 31 December 2018
Note Share Share Merger Currency Other Accumulated Total
capital premium reserve translation reserve losses US$000
US$000 US$000 US$000 reserve US$000 US$000
US$000
1 3,886 141,918 (282) (45,804) 333 (66,060) 33,991
January
2017
Loss for (1,929) (1,929)
the year
Other - - - 1,186 - - 1,186
comprehensive
income
Total - - - 1,186 - (1,929) (743)
comprehensive
loss
31 3,886 141,918 (282) (44,618) 333 (67,989) 33,248
December
2017
Loss for (4,288) (4,288)
the year
Other - - - (3,152) - - (3,152)
comprehensive
loss
Total - - - (3,152) - (4,288) (7,440)
comprehensive
loss
Conversion 168 9,552 - - - (668) 9,052
of bond
into
shares
31 4,054 151,470 (282) (47,770) 333 (72,945) 34,860
December
2018
Group Reserves Description
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 in to US Dollars.
Other reserve Amount of proceeds on issue of convertible
debt relating to the equity component.
The accompanying notes are an integral part of these
consolidated financial statements.
CONSOLIDATED STATEMENT OF CASHFLOWS
year ended 31 December 2018
Notes 2018 2017
US$000 US$000
Net cash inflow from operating activities 940 5,107
Investing activities
Purchase of property, plant and equipment (1,108) (2,252)
Disposals of property, plant and machinery 264
Exploration costs - (439)
Net cash used in investing activities (844) (2,691)
Financing activities
Loans received 151 724
Loans repaid (550) (4,331)
Interest repaid (160) (341)
Net outflow from financing activities (559) (3,948)
Decrease in cash and cash equivalents (463) (1,532)
Foreign currency translation (136) -
Cash and cash equivalents 704 2,236
at beginning of the year
Cash and cash equivalents at end of the year 105 704
The accompanying notes are an integral part of these
consolidated financial statements.
NOTES TO THE FINANCIAL STATEMENTS
year ended 31 December 2018
1General information
Altyn 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 2018 and 31 December 2017 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 2017 has been delivered to the Registrar of
Companies and those for 2018 will be submitted for approval by
shareholders at the Annual General Meeting. The full audited
financial statements for the years end 31 December 2018 and 31
December 2017 do comply with IFRS.
2Going concern
To progress the mine to the full projected capacity the Company
requires further funding, which the Company is endeavoring to put
in place. It has received preliminary indication of funding to be
made available by a Kazakh based bank. In March 2019 as part of the
process an initial US$1m was advanced by the bank to purchase
equipment and spares, The Company is in the process of finalising a
larger loan with the bank. In addition the major shareholder has
provided funds in April 2019 to purchase further equipment in order
to increase production.
The Company is continuing to develop its underground mine,
production is continuing at a steady pace with gold sold in the
current year of 14,990 oz. The Group made a loss before tax in the
current year of US$4.0m (2017 loss: US$1.9m) however it generated a
positive EBITDA. Cash funding from operations has reduced due to
limited capital expenditures during the year. This also contributed
a lower production levels. Production and revenues are expected to
increase as capital expenditure is made from the loans made into
the Company in April 2019.
The Directors have reviewed the cash flows for 15 months from
the date of approval of the financial statements based on the
projected trading. The Directors are confident that should the fund
raising as noted above, not be provided in the expected timeframe
the Company will be able to adapt its operational plans such that
it continues to operate.
Furthermore the major shareholder has confirmed their 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 it is
appropriate to prepare the financial statements on a going concern
basis .
3Revenue
An analysis of the Company's revenue is as follows:
2018 2017
US$000 US$000
Sale of gold and silver 19,030 21,294
Other sales 336 355
19,366 21,649
Included in revenues from sale of gold and silver are revenues
of US$19,030,000 (2017: US$21,294,000) which arose from sales of
precious metals to one customer based Kazakhstan. Other sales
amounted to US$336,000 (2017 US$355,000), and related to sale of
machinery and consumables.
4Loss 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$4.3m (2017: loss
of US$1.9m).
The weighted average number of ordinary shares for calculating
the basic loss in 2018 and 2017 is shown below. As the Company was
loss making in 2018, the impact of the potential ordinary shares
outstanding from the conversion of the Convertible loan notes would
be anti-dilutive, and as such the basic and diluted earnings per
share are the same.
2018 2017
Basic and diluted 2,552,972,267 2,334,342,130
5Intangible assets
Karasuyskoye Exploration and US$000
geological data evaluation costs
Cost
1 January 2017 11,345 718 12,063
Translation difference 79 - 79
Transfers - 157 157
Additions - 1,430 1,430
Amortisation capitalized - 1,021 1,021
31 December 2017 11,424 3,326 14,750
& 1 January 2018
Translation difference (1,535) (113) (1,648)
Additions - 1,605 1,605
Amortisation capitalized - 1,101 1,101
31 December 2018 9,889 5,919 15,808
Amortisation
1 January 2017 1,799 - 1,799
Charge for the year 1,021 - 1,021
Translation difference 49 - 49
31 December 2017 2,869 - 2,869
& 1 January 2018
Charge for the year 1,101 - 1,101
Translation difference (500) - (500)
31 December 2018 3,470 - 3,470
Net book value
1 January 2017 9,546 718 10,264
31 December 2017 8,555 3,326 11,881
31 December 2018 6,419 5,919 12,338
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 obtained
a contract for exploration and evaluation on the site in May 2017
from the Kazakh authorities. The contract is valid for a period of
6 years, which is a right to extend for a minimum period of 4
years.
The value of the geological data purchased is in the opinion of
the Directors the value that would have been incurred if the
drilling had been undertaken by a third party (or internally).
During the year there has been extensive exploratory drilling, a
pre- feasibility study was carried out and samples taken from a
test production site, which confirmed the expected grades. The
directors consider that no impairment is required taking into
account the exploration and planned production in the future. The
write off of the geological data over the period of the licence to
May 2026 is appropriate. The costs amortised are capitalised in
line with the Company's accounting policy within the subsidiary TOO
GMK Altyn MM LLP, there are no impairment indicators.
6Property, plant and equipment
Mining Freehold, Equipment, Plant, Assets under Total
properties land and fixtures and machinery and construction US$000
and leases buildings fittings vehicles US$000
US$000 US$000 US$000 US$000
Cost
1 January 2017 11,351 24,241 12,189 5,825 4,155 57,761
Additions 1,196 38 399 283 686 2,602
Disposals - (15) (257) (53) (133) (458)
Transfers (157) - - - - (157)
Transfers to (1,513) 2,465 (829) 2,469 (2,651) (59)
inventories
Currency (34) 22 44 4 49 85
translation
adjustment
31 December 10,843 26,751 11,546 8,528 2,106 59,774
2017
& 1 January
2018
Additions 2,940 2 124 24 721 3,811
Disposals/provision - (1) (563) (2,620) - (3,184)
Transfers - 1,494 41 - (1,661) (126)
Currency (2,053) (3,765) (1,447) (885) (188) (8,338)
translation
adjustment
31 December 11,730 24,481 9,701 5,047 978 51,937
2018
Accumulated
depreciation
1 January 2017 2,262 5,100 9,584 3,499 - 20,445
Charge for 222 2,498 1,452 336 - 4,508
the year
Disposals - (15) (208) (40) - (263)
Transfers (180) (290) (1,871) 2,282 - (59)
Currency 2 (33) 6 5 - (20)
translation
adjustment
31 December 2,306 7,260 8,963 6,082 - 24,611
2017
& 1 January
2018
Charge for 251 2,242 1,133 275 - 3,901
the year
Disposals - (1) (356) (1,085) - (1,442)
Currency (337) (1,210) (1,239) (738) - (3,524)
translation
adjustment
31 December 2,220 8,291 8,501 4,534 - 23,546
2018
Net book value
1 January 2017 9,089 19,141 2,605 2,326 4,155 37,316
31 December 8,537 19,491 2,583 2,446 2,106 35,163
2017
31 December 9,510 16,190 1,200 513 978 28,391
2018
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. 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.
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 considered entity specific factors such as available
finance, cost of production, grades achievable, and sales price.
The directors have concluded that no adjustment is required for
impairment.
7Availability of accounts
The audited Annual Report and Financial Statements for the 12
months ended 31 December 2018 and notice of AGM will shortly be
sent to shareholders and published at: www.altyn.uk.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190430006208/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
May 01, 2019 02:00 ET (06:00 GMT)
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