Loss for the period (16,066,657) (4,837,919) (11,489,788)
Adjustments:
Amortisation expense - intangible
assets 29,599 14,273 53,372
Depreciation expense - property,
plant and equipment 647,360 379,853 902,531
(Profit)/loss on disposal
of property, plant and equipment 7,259 (364,097) (359,991)
Finance income (110,315) (347,275) (730,086)
Share based payments 338,383 275,583 588,514
Foreign exchange (gains)/losses (551,330) 16,751 (229,581)
(Increase)/Decrease in inventories 446,533 36,417 (1,454,957)
(Increase)/Decrease in accounts
receivable 902,907 3,269 4,920,850
(Decrease)/Increase in accounts
payable (406,212) (567,799) 299,059
Net cash flow used in operations (14,762,473) (5,390,944) (7,500,077)
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Investing activities
Purchase of computer software (28,582) (138,138) (138,354)
Purchase of mine assets,
property, plant and equipment (1,844,136) (2,719,417) (17,060,389)
Acquisition of subsidiary - - -
(net of cash acquired)
Proceeds from sale of equipment - - -
Loans repaid - - -
Interest received 110,315 347,275 730,086
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Net cash used in investing
activities (1,762,403) (2,510,280) (16,468,657)
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Financing activities
Proceeds from issue of share - - -
capital
Issue costs - - -
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Net cash from financing - - -
activities
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Net change in cash and cash
equivalents (16,524,876) (7,901,224) (23,968,734)
Cash and cash equivalents
at beginning of the period 36,944,060 61,184,915 61,184,915
Effect of changes in foreign
exchange rates 308,475 (672,437) (272,121)
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Cash and cash equivalents
at end of the period 20,727,659 52,611,254 36,944,060
-------------------------------------------------------- ---------- ------------- ----------------- ---------------
Notes to the financial statements
1 Loss per share
The loss per share is calculated by reference to the loss of
USD16, 066,657 for the six months ended 30 June 2013 and the
weighted average number of shares in issue of 250,477,868 during
the period. There is no dilutive effect of share options.
2 Basis of preparation of financial statements
The unaudited results have been prepared on a going concern
basis and on the basis of the accounting policies adopted in the
audited accounts for the year ended 31 December 2012. The results
for the period are derived from continuing activities.
The financial information set out in this half-yearly report
does not constitute statutory accounts. The figures for the period
ended 31 December 2012 have been extracted from the statutory
financial statements, prepared under IFRS, which are available on
the Group's website www.chaarat.com. The auditor's report on those
financial statements was unqualified.
3 Intangible assets - acquired mining exploration assets
Mining exploration assets acquired on the acquisition of
subsidiaries are carried in the balance sheet at their fair value
at the date of acquisition less any impairment losses, pending
determination of technical feasibility and commercial viability of
those projects.
When such a project is deemed to no longer have technical or
commercially viable prospects to the Group, acquired mining
exploration costs in respect of that project are deemed to be
impaired and written off to the statement of total comprehensive
income.
Subsequent mining exploration costs incurred on those projects
are expensed in accordance with the Group's accounting policy
below.
4 Mining exploration and development costs
During the exploration phase of operations, all costs are
expensed in the Income Statement as incurred.
A subsequent decision to develop a mine property within an area
of interest is based on the exploration results, an assessment of
the commercial viability of the property, the availability of
financing and the existence of markets for the product. Once the
decision to proceed to development is made, exploration,
development and other expenditures relating to the project are
capitalised and carried at cost with the intention that these will
be depreciated by charges against earnings from future mining
operations over the relevant life of mine on a units of production
basis.
Expenditure is only capitalised provided it meets the following
recognition requirements:
-- completion of the project is technically feasible and the
Company has the ability to and intends to complete it;
-- the project is expected to generate future economic benefits;
-- there are adequate technical, financial and other resources to complete the project; and
-- the expenditure attributable to the development can be measured reliably.
No depreciation is charged against the property until commercial
production commences. After a mine property has been brought into
commercial production, costs of any additional work on that
property are expensed as incurred, except for large development
programmes, which will be deferred and depreciated over the
remaining life of the related assets.
The carrying values of exploration and development expenditures
in respect of each area of interest which has not yet reached
commercial production are periodically assessed by management and
where it is determined that such expenditures cannot be recovered
through successful development of the area of interest, or by sale,
the expenditures are written off to the income statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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