TIDMFML
RNS Number : 5870R
Frontier Mining Ltd
15 September 2014
FRONTIER MINING LTD
("Frontier" or "the Company")
Interim Results for the six months ended 30 June 2014
Frontier Mining (AIM:FML), the AIM listed exploration,
development and production Company focused on Kazakhstan, is
pleased to announce its Interim Results for the six months ended 30
June 2014.
Operational and Corporate Highlights
-- Production for the first six months of 2014:
o 181,326 tonnes of ore were mined
o 165,947 tonnes of ore were stacked
o 511 tonnes of copper cathode were sold
-- Financial performance:
o Average sales price of US$6,784 per tonne
o Average cash cost of production, excluding general and
administrative costs, of US$4,353 per tonne. The increase in cash
cost compared to 2013 was mainly due to higher costs during the
winter months.
-- Contractor hired to conduct stripping at a cost of 273 KZT
(1.5 USD) per m(3) (excluding VAT), which has reduced operating
costs further at Benkala.
o The ore mining contract was awarded as a result of positive
working experience with stripping and we now have considerable
confidence in this contractor being able to deliver on time and on
budget.
-- Second agglomeration line commissioned and now operational
-- Copper cathode production from Benkala operations is expected
to be in the range between 1,500 and 2,000 tones for the 12 months
to 31 December 2014
Post period end
-- Regulatory approval from the Ministry of Industry and New
Technology of the Republic of Kazakhstan ("RoK") to proceed with
the sale of Naimanjal licence area to Union Transnationale Miniere
S.A. ("UTM").
Yerlan Aliyev, Chairman and Chief Executive of the Company,
said: "While all of the operating cash flow is being used to
finance ongoing operations, during the first half of 2014 Company
continued conversations with financing institutions and
counterparties in order to negotiate extensions of debt repayment
obligations. The sale of Naimanjal is viewed as a source of
financing to pay down part of the loans and provide finance for the
purchase of new equipment required to improve production levels;
however, the transaction has yet to be completed and so we were not
able to use the sale proceeds to prepare for the 2014 production
season.
"Over the course of the last 24 months of exploration and
evaluation of data obtained on Benkala, South Benkala and other
opportunities in very close proximity, it has been determined that
the best course of action that will maximise shareholder value will
be through joint partnership with an experienced well capitalised
operator which can bring expertise to the project both in large
scale project management and complimentary technical capabilities
on the ground. Frontier has had several approaches over the past
few years from interested parties wishing to participate in this
project and has appointed advisers to identify and engage with the
most appropriate partner who can deliver the required expertise and
support."
Frontier Mining Ltd
Yerlan Minavar Tel: +44 20 7898 9019
Nomad
Cairn Financial Advisers LLP
Sandy Jamieson Tel: +44 20 7148 7900
Broker
RFC Ambrian
John Harrison Tel: +44 20 3440 6800
Stefan Murphy
Walbrook PR and IR
Paul Cornelius Tel: +44 20 7933 8780
Guy McDougall
Chairman and Chief Executive's Statement
Copper Production and Sales
Revenue from copper sales is continuing to cover production cost
related to Benkala. For the first six months of 2014, more than
181,326 tonnes of ore was mined, 165,947 tonnes of ore was stacked
and 511 tonnes of copper cathode was sold. Revenues from current
production are sufficient to cover the mine operating costs, but do
not yet cover the Company's interest and debt repayment obligations
and other administration costs.
It should be noted that, during the first half of 2014,
production has been exclusively from ore stacked before the end of
the 2013 financial period.
Stripping
In order to further optimise copper production, the Company has
recently hired an experienced contractor to conduct stripping at a
cost of 273 KZT (1.5 USD) per m(3) (excluding VAT), which will
reduce operating costs further at Benkala. Furthermore, as a direct
result of the positive and productive experience of working with
this particular contractor, the Company has decided to also award
this contractor an ore mining contract.
Crushing and Agglomeration
Currently, production personnel are continuing to improve the
performance of the crushing and agglomeration facilities in order
to achieve targeted figures for ore stacking. In the first half of
this year, the second agglomeration line was launched, which should
allow uninterrupted stacking of ore onto leach pads. At the same
time, the technology team is continuing laboratory and field
testing to establish optimal parameters to improve leaching of
copper.
The outsourcing of the ore mining and stripping during the
remainder of the current financial year will allow Company to focus
on continuing to improve the performance of the crushing and
agglomeration facilities in addition to enhancing other production
areas at Benkala.
Corporate
While all of the operating cash flow is being used to finance
ongoing operations, during the first half of 2014 Company continued
conversations with financing institutions and counterparties in
order to negotiate extensions of debt repayment obligations. The
sale of Naimanjal is viewed as a source of financing to pay down
part of the loans and provide finance for the purchase of new
equipment required to improve production levels; however, the
transaction has yet to be completed and so we were not able to use
the sale proceeds to prepare for the 2014 production season.
Strategic Partner and Outlook
Over the course of the last 24 months of exploration and
evaluation of data obtained on Benkala, South Benkala and other
opportunities in very close proximity, it has been determined that
the best course of action that will maximise shareholder value will
be through joint partnership with an experienced well capitalised
operator which can bring expertise to the project both in large
scale project management and complimentary technical capabilities
on the ground. Frontier has had several approaches over the past
few years from interested parties wishing to participate in this
world class project and has appointed advisers to identify and
engage with the most appropriate partner who can deliver the
required expertise and support.
FRONTIER MINING LTD
STATEMENT OF FINANCIAL POSITION
USD 30.06.2014 31.12.2013 30.06.2013
--------------------------------------- ------------- ------------- -------------
Non-current assets
Exploration and evaluation assets 196,180,629 198,105,513 9,658,223
Mine development assets 418,810 499,316 188,517,027
Property, plant and equipment 47,395,898 53,898,801 55,336,898
Intangible assets 47,246 60,289 66,165
Advances paid for non-current
assets 371,758 973,543 1,445,228
VAT recoverable, non-current portion 5,494,508 6,564,006 5,563,116
Restricted cash 834,115 437,413 440,019
Total non-current assets 250,742,965 260,538,881 261,026,676
--------------------------------------- ------------- ------------- -------------
Current assets
Inventories 14,775,325 14,084,584 10,314,831
Trade accounts receivable 125,523 365,022 1,047,650
VAT recoverable, current portion 1,603,265 945,882 1,031,819
Advances paid 323,923 632,533 1,187,221
Cash and cash equivalents 43,475 168,770 1,423,116
Other current assets 866,887 1,081,961 1,871,377
Total current assets 17,738,399 17,278,752 16,876,014
Assets of disposable groups held
for sale 28,500,546 28,124,121 0
TOTAL ASSETS 296,981,909 305,941,754 277,902,690
--------------------------------------- ------------- ------------- -------------
EQUITY AND LIABILITIES
Equity
Share capital 18,609,140 18,609,140 18,609,140
Additional paid-in-capital 191,334,243 191,334,243 191,334,243
Option premium to convertible
notes 120,993 120,993 120,993
Translation reserve 2,959,323 (39,884)
Accumulated deficit (67,778,277) (46,388,864) (64,692,206)
Total equity 145,245,422 163,635,628 145,372,170
--------------------------------------- ------------- ------------- -------------
Non-current liabilities
Interest bearing and interest
free loans and borrowings from
third parties, non-current portion 49,614,472 49,614,472 59,309,768
Interest bearing and interest
free loans and borrowings from
related parties, non-current portion 860,000 860,000
Provisions 3,443,151 4,023,410 2,639,841
Prepaid income 703,225 0
Other long-term liabilities 0 0 4,345,182
Deferred tax liability 36,390,285 36,685,854 34,871,818
Total non-current liabilities 91,011,133 91,183,736 101,166,609
--------------------------------------- ------------- ------------- -------------
Current liabilities
Interest bearing and interest
free loans and borrowings from
third parties, current portion 23,139,225 29,011,413 24,277,787
Interest bearing and interest
free loans and borrowings from
related parties, current portion 16,810,276 13,559,867 2,993,612
Trade accounts payable 3,656,682 2,192,470 737,573
Provisions, current portion 0 207,154
Taxes payable 830,445 1,245,069
Other current liabilities 1,640,574 1,567,264 3,354,939
Total current liabilities 46,077,201 47,783,237 31,363,911
Total liabilities 137,088,334 138,966,973 132,530,520
Liabilities of disposable groups
held for sale 14,648,153 3,339,153 0
TOTAL EQUITY AND LIABILITIES 296,981,909 305,941,754 277,902,690
--------------------------------------- ------------- ------------- -------------
FRONTIER MINING LTD
STATEMENT OF COMPREHENSIVE
INCOME
USD 30.06.2014 31.12.2013 30.06.2013
------------------------------------- ------------------- ------------ --------------------
Revenue 3,469,865 10,411,431 2,761,662
Cost of sales (3,255,770) (8,763,228) (1,646,407)
Gross profit 214,095 1,648,203 1,115,255
------------------------------------- ------------------- ------------ --------------------
Selling, general and administrative
expenses (1,533,340) (5,011,954) (1,934,637)
Finance cost, net (2,093,209) (3,036,150) (3,865,561)
Forex gain / (loss), net (18,032,812) (821,053) (356,379)
Impairment 421,484
Other operating income /
(expenses), net 2,575 1,833,393 (29,384)
Profit from operating activities
before income tax (21,442,689) (5,387,561) (4,649,222)
------------------- ------------ --------------------
Income tax benefit / (expense),
net 0 (1,814,036)
Profit for the year (21,442,689) (7,201,597) (4,649,222)
------------------------------------- ------------------- ------------ --------------------
Effect on currency translation 2,959,323 (39,884)
Gain / (loss) from discontinued
operations 53,276 20,855,716
Total comprehensive income (18,430,090) 13,614,235 (4,649,222)
------------------------------------- ------------------- ------------ --------------------
FRONTIER MINING LTD
CASH FLOW STATEMENT
USD 30.06.2014 31.12.203 30.06.2013
---------------------- ---------------------- ----------------------
OPERATING ACTIVITIES
(Loss) / gain before income tax (21,442,689) (5,387,561) (4,649,223)
Adjustments for non-cash flow
items:
Depreciation of property, plant
and equipment and mine development
assets 1,107,314 2,086,227 2,567,603
Amortization of intangible assets 2,653 15,991 4,728
Finance costs 2,155,193 7,626,676 -
Loss from discontinued operations - (1,588,003)
Gain from released liability due
to US Trade and Development Agency - (340,000) -
Loss from disposal of property,
plant and equipment (84,003) (80,944) -
Accrual of inventory provision - 656,750 -
Recovery of impairment loss - (1,245,251) -
Foreign exchange loss, net 14,092,614 2,002,464 (210,630)
Cash flows from operating activities
before changes in working capital (4,168,918) 5,334,352 (3,875,524)
Change in value added tax receivable (657,383) (1,021,622) (106,669)
Change in inventories 2,294,856 (8,090,579) (548,557)
Change in trade receivables 239,499 (181,263) (863,891)
Change in advances and prepaid
expenses 308,610 4,614,185 4,059,497
Change in other receivables 18,820 (804,119) (1,593,536)
Change in trade accounts payable 1,818,362 (6,238,003) (9,303,553)
Change in other current liabilities 73,310 590,395 (153,203)
Change in taxes payable (388,808) (1,286,204) -
Change in provision (207,154) 135,788 -
Net cash flows from operating
activities before income tax and
interest paid (668,806) (6,947,070) (12,385,436)
Income tax paid - -
Interest paid (2,540,014) (6,420,793) (2,533,023)
Net cash used in continuing operations (3,208,820) (13,367,863) (14,918,460)
Net cash used in discontinued
operations - (31) -
Net cash used in opeating activities (3,208,820) (13,367,894) (14,918,460)
INVESTING ACTIVITIES
Increase in exploration and evaluation
assets and mining assets 2,265,667 (3,734,458) (305,169)
Increase in mine development assets 846 (847,708)
Dummy (disposal group) 6,395,273 -
Purchase of property, plant and
equipment (2,545,269) (463,159) (2,988,849)
Purchase of intangible assets - 5,387
Proceeds from sale of Maminskoye
license area - 1,990,784
Proceeds from sale of property,
plant and equipment 42,482 2,275,903 -
Decrease in advances for non-current
assets 601,785 4,995,729 4,524,044
Increase in restricted cash deposit (396,702) (47,820) (50,426)
Net cash used in investing activities 6,364,082 3,026,195 2,328,063
-
FINANCING ACTIVITIES -
Proceeds from loans from related
parties 330,000 233,681 -
Proceeds from loans from third
parties - 6,650,000 -
Proceeds from bank loans 703,225 14,286,800 11,388,684
Proceeds from issue of notes payable - 440,745
Repayment of loans from related
parties (141,988) (6,087,147) -
Repayment of bank loans - (2,187,000) -
Repayment of notes payable (4,180,000) (4,570,000) -
Net cash generated by financing
activities (3,288,763) 8,326,334 11,829,429
-
Net increase in cash and cash
equivalents (133,501) (2,015,365) (760,967)
Cash and cash equivalents at the
beginning of the year 168,770 2,184,083 2,184,083
Included in disposal group 8,206 52 -
Cash and cash equivalents at the
end of the year 43,475 168,770 1,423,116
======================================== ====================== ====================== ======================
FRONTIER MINING LTD
STATEMENT OF CHANGES IN EQUITY
USD Share Additional Accumulated Translation Option Total
capital paid-in-capital loss reserve premium
to convertible
notes
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
As at January
1, 2013 18,609,140 191,334,243 (60,042,983) - 120,993 150,021,392
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
Loss for the
year (4,649,222) (4,649,222)
Other
comprehensive
income - -
Total
comprehensive
loss for the
year - - (4,649,222) - - (4,649,222)
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
Issue of
convertible
note - -
Income tax
effect - -
As at June 30,
2013 18,609,140 191,334,243 (64,692,205) - 120,993 145,372,170
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
Loss for the
year 18,303,341 18,303,341
Other
comprehensive
income (39,884) (39,884)
Total
comprehensive
loss for the
year - - 18,303,341 (39,884) - 18,263,457
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
Issue of
convertible
note - -
Income tax
effect - -
As at December
31, 2013 18,609,140 191,334,243 (46,388,864) (39,884) 120,993 163,635,628
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
Loss for the
year (21,389,413) 2,999,207 (18,390,206)
Other
comprehensive
income -
Total
comprehensive
loss for the
year - - (21,389,413) 2,999,207 - (18,390,206)
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
Issue of
convertible
note -
Income tax
effect -
As at June 30,
2014 18,609,140 191,334,243 (67,778,277) 2,959,323 120,993 145,245,422
--------------- -------------------- -------------------- ------------------ -------------------- -------------------- --------------------
1. BACKGROUND
FRONTIER MINING LTD. ("FRONTIER" or the "Company") was
incorporated under the laws of the state of Delaware on August 5,
1998 for the purpose of exploring, and if warranted, developing
gold and copper deposits in the Republic of Kazakhstan. Group's
principal activities are the exploration, mining and processing of
copper ores.
As of June 30, 2014 the Group owns the following subsidiaries
(thereafter together - the "Group"):
Effective ownership
Entity (location) Nature of business interest
----------------------------- ----------------------------- --------------------
U.S. Megatech, Inc.,
British Virgin Islands,
subsidiary of the Company Holding Company 100%
============================= ============================= ====================
Exploration and development
KazCopper LLP, The Republic of the Benkala license
of Kazakhstan, subsidiary and South Benkala
of U.S. Megatech Inc. area. 100%
============================= ============================= ====================
Kazakhstan Chemical Company
LLP, The Republic of
Kazakhstan, subsidiary Supply and transportation
of the Company of chemicals 100%
============================= ============================= ====================
Baltemir LLP, Republic
of Kazakhstan, subsidiary
of the Company Dormant 100%
============================= ============================= ====================
During the 6 months of 2014, FRONTIER has completed the process
of closing its inactive subsidiaries, including Frontier Mining
Finance BV, Frontier Mining Antilles NV and Frontier Mining
Co-operative (registered in the Netherlands. The number of
employees of the Group as of June 30, 2014 was 497 people (2013:
449 employees).
Functional and presentation currencies
The presentation currency of the Group consolidated financial
statements is US Dollar. The functional currency for each entity in
the Group is determined as the currency of the primary economic
environment in which it operates. Transactions in currencies other
than the functional currency are initially recorded at the
functional currency rate at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange at the balance sheet date.
Exchange gains and losses on settlement of foreign currency
transactions translated at the rate prevailing at the date of the
transactions, or the translation of monetary assets and liabilities
at period end exchange rates, are taken to the income statement.
Non-monetary assets and liabilities denominated in foreign
currencies that are stated at historical cost are translated to the
functional currency at the foreign exchange rate at the date of the
transaction.
The functional currency of the Company is the US Dollar as the
majority of the operating activities are conducted in US
Dollars.
The functional currency of exploration and service entities
operating in Kazakhstan (KazCopper LLP and Kazakhstan Chemical
Company LLP) is the Kazakhstan Tenge (KZT).
All balance sheet items were recalculated according to the
exchange rate as on the reporting date, revenue/expenditure items
were recalculated at the average exchange rate.
At the reporting date, the exchange rate of the National Bank of
Kazakhstan was used:
Exchange rate 30.06.2014 31.12.2013 30.06.2013
------------------ ----------- ----------- -----------
At the reporting
date 183,51 153,61 150,74
Average exchange
rate 173,23 152,13 150,90
2. SHORT-TERM AND LONG-TERM ASSETS (US dollars)
Assets 30.06.2014 31.12.2013 30.06.2013
-------------------------- ------------------------------------------ --------------------------------- -----------
Non-current assets
Exploration and evaluation
assets 196 180 629 198 105 513 9 658 223
Mine Development assets 418 810 499 316 188 517 027
Property, Plant and
Equipment 47 395 898 53 898 801 55 336 898
Intangible assets 47 246 60 289 66 165
Advances paid for
non-current
assets 371 758 973 543 1 445 228
VAT recoverable,
non-current
portion 5 494 508 6 564 006 5 563 116
Restricted cash 834 115 437 413 440 019
Total non-current assets 250 742 965 260 538 881 261 026 676
-------------------------- ------------------------------------------ --------------------------------- -----------
Current assets
Inventories 14 775 325 14 084 584 10 314 831
Trade account receivable 125 523 365 022 1 047 650
VAT recoverable, current
portion 1 603 265 945 882 1 031 819
Advances paid 323 923 632 533 0
Other current assets 866 887 1 081 961 3 058 598
Cash and cash equivalents 43 475 168 770 1 423 116
Total current assets 17 738 399 17 278 752 16 876 014
-------------------------- ------------------------------------------ ---------------------------------
Assets of disposal
group held for sale 28 500 546 28 124 121 0
-------------------------- ------------------------------------------ --------------------------------- -----------
Total assets 296 981 909 305 941 754 277 902 690
========================== ========================================== ================================= ===========
2.1 Exploration and evaluation assets
The exploration and evaluation expenses as of June 30, 2014
amounted to 196 million US dollars, these costs are associated with
the exploration of Benkala and South Benkala deposits. According to
IAS 23 <<Borrowing costs>> loans received directly to
finance qualified assets are allowed to capitalize. During
exploration of Benkala FRONTIER received loans from RedKite, New
Technologies LLP, Nursultan Nazarbayev Educational Fund SF, Central
Asian Educational Services S.A., Nikfar Holding Limited, Casterwal
Invest Ltd., Aliyev Y., and Riverhouse Consults Limited. All
interests related to above loans are capitalized and included to
the cost of the asset. Interests related to Sberbank JSC loans are
treated as operating expenses.
2.2 Property, plant and equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and impairment losses.
The initial cost of other property, plant and equipment
comprises its purchase price, including import duties and
non-refundable purchase taxes and any directly attributable costs
of bringing the asset to its working condition and location for its
intended use.
Capital work in progress is carried at cost, less any recognised
impairment loss. Construction cost includes professional fees and,
for qualifying assets, borrowing costs capitalised in accordance
with the accounting policy. Such items of the property assets are
classified to the appropriate category of property, plant and
equipment at the time of completion and readiness for its intended
use.
Additional investments totaled to $1.4 million for the
acquisition and construction of assets. However, devaluation of
Kazakhstan Tenge in February 2014 had a significant impact on
outstanding balance of assets, which caused a revaluation of the
assets by more than 8 million US dollars.
2.4 VAT recoverable
Outstanding balance of VAT had not changed since 31.12.2013.
Difference which is reflected in the balance is due to an increase
in the KZT/USD foreign exchange rate.
Title 30.06.2014 31.12.2013 30.06.2013
------------------------------ ----------- ----------- -----------
VAT recoverable, non-current
portion 5 494 508 6 564 006 5 563 116
2.4 Inventories
Inventories are stated at the lower of cost and net realizable
value. Cost, including an appropriate portion of fixed and variable
overhead expenses, is assigned to inventories by the method most
applicable to the particular class of inventory. Net realizable
value represents the estimated selling price for inventories less
all estimated costs of completion and costs necessary to make the
sale.
Inventories 30.06.2014 31.12.2013 30.06.2013
-------------------------- ----------- ----------- -----------
Materials 6 363 700 5 668 882 4 151 600
Construction in progress 7 674 841 6 936 000 5 079 573
Finished products 565 912 1 302 630 953 980
Other materials 170 872 177 072 129 679
-------------------------- ----------- ----------- -----------
Total 14 775 325 14 084 584 10 314 831
2.5 Cash and cash equivalents
Cash includes cash on hand and cash on current accounts in
banks.
30.06.2014 31.12.2013 30.06.2013
------------------------ ----------- ----------- ----------------
Cash on current bank
accounts 39 993 46 448 1 333 281
Cash in transit in GBP - 95 170 0
Cash on hand 3 482 27 152 89 835
------------------------ ----------- ----------- ----------------
Total 43 475 168 770 1 423 116
2.5.1 Restricted Cash
Cash deposits with banks are made pursuant to requirements of
the Group's subsoil use contracts. The Group accumulates such cash
deposits restoration provisions related to obligations to restore
and make the mines safe after use and the estimated costs of
cleaning up any chemical leakage.
3. EQUITY AND LIABILITIES (US dollars)
There are no movements in the issued share capital for the 6
months ended June 30, 2014 and year ended December 31, 2013.
US Dollars Number of Nominal amount Additional Total
shares and paid in capital
outstanding
--------------- -------------- --------------- ----------------- ------------
June 30, 2013 1,860,913,973 18,609,140 191,334,243 209,943,383
December 31,
2013 1,860,913,973 18,609,140 191,334,243 209,943,383
June 30, 2014 1,860,913,973 18,609,140 191,334,243 209,943,383
3.1 Current and non-current liabilities
Borrowings
Partial repayments of principal and loan interests were carried
out during the first half of the year:
US Dollars 30.06.2014 31.12.2013 30.06.2013
----------------------
Non-current portion:
From third parties 49 614 472 49 614 472 59 309 768
From related parties 860 000 860 000 -
50 474 472 50 474 472 59 309 768
Current portion:
From third parties 23 139 225 29 011 413 24 277 787
From related parties 16 810 276 13 559 867 2 993 612
---------------------- ----------- ----------- -----------
39 949 501 42 571 280 27 271 399
----------- ----------- -----------
90 423 973 93 045 752 86 581 167
Trade accounts payable
US dollars 30.06.2014 31.12.2013 30.06.2013
--------------------------- ---------------- ------------------- -----------
Trade account payable due
to third parties 3 656 682 2 192 470 737 573
--------------------------- ---------------- ------------------- -----------
3 656 682 2 192 470 737 573
30.06.2014 31.12.2013 30.06.2013
US dollars
--------------------------- ---------------- ------------------- -----------
KZT 3 300 340 1 772 982 596 452
USD 88 407 271 748 91 419
EUR 135 285 75 666 25 455
GBP 80 153 68 389 23 007
RUB 52 497 3 685 1 240
3 656 682 2 192 470 737 573
4. Consolidated Statement of Comprehensive Income (US dollars)
4.1 Revenue
30.06.2014 31.12.2013 30.06.2013
--------- ----------- ----------- -----------
Revenue 3 469 865 10 411 431 2 761 662
4.2 Cost of sales
30.06.2014 31.12.2013 30.06.2013
--------------- ------------- ------------------- ------------
Cost of sales (3 255 770) (8 763 228) (1 646 407)
Increase in cost of sales for the 6 months of 2014 compared to 6
months of 2013 was due to changes in overhead cost accounting
approach. During 2013, the Company used standardized distribution
of fixed overhead costs accrued during the winter period in the
cost of sales calculation for the entire year. In 2014, since the
Company continued operating throughout the winter months, all fixed
overhead costs were recognized in the cost of sales during the
period they were accrued in.
4.3 Selling, general and administrative expenses
30.06.2014 31.12.2013 30.06.2013
------------------------------------- ------------- -------------- -------------
Selling, general and administrative
expenses (1 533 340) (5 011 954) (1 934 637)
4.4 Financial and other operating expenses
30.06.2014 31.12.2013 30.06.2013
---------------------------------- ---------------- -------------- ---------------
Finance cost (2 093 209) (3 036 150) (3 865 561)
Forex gain / (loss), net (18 032 812) (821 053) (356 379)
Impairment loss - - 421 484
Other operating income
/ (expenses), net 2 575 1 833 393 (29 384)
---------------------------------- ---------------- -------------- ---------------
Profit from operating activities
before income tax (21 442 689) (5 387 561) (4 649 222)
Income tax benefit / (expense),
net - (1 814 036) -
Profit / (loss) for the
year (21 442 689) (7 201 597) (4 649 222)
Effect on currency translation 2 959 323 (39 884) -
Gain / (loss) from discontinued
operations 53 276 20 855 716 -
---------------------------------- ---------------- -------------- ---------------
Total comprehensive income (18 430 090) 13 614 235 (4 649 222)
Devaluation of Kazakhstan Tenge in February 2014 had a
significant impact on foreign exchange loss during the 6 months of
2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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