TIDMOVG
RNS Number : 3754N
Ovoca Gold PLC
28 September 2012
Ovoca Gold PLC
28September 2012
Ovoca Gold plc ("Ovoca" or the "Company")
2012 Interim Results
Ovoca Gold is pleased to announce its interim financial
statements and report covering the six month period from 1 January
2012 to 30 June 2012.
Highlights:
-- Cash and cash equivalents and available for sale financial
assets of US$36.6 million as at 30 June 2012
-- Exploitation license for the Olcha deposit received from the
Russian State regulatory bodies
-- Successful mobilization during the 2012 summer field season
for exploration and development at the two core projects at
Stakhanovskiy and Rassoshinskaya
-- Appointment of Kirill Golovanov as CEO
-- Stakhanovskiy Project surface trench assay results from
Berezitoviy and Burovaya ore bodies of:
v 2.5 metres at 281.40 g/t gold
v 4.0 metres at 41.28g/t gold
v 1.5 metres at 45.76 g/t gold
-- Processing of approximately 5,000 tonnes of primary rock by
gravity concentration plant from Berezitoviy and Zabolocheniy ore
bodies
-- Rassoshinskaya Project HQ-sized core drilling at the Zet Prospect produced two significant intersections:
v 0.4 metres at 74.40 g/t gold and 342.0 g/t silver
v 2.0 metres at 4.53 g/t gold and 38.9 g/t silver
Post period:
-- Continuation of bulk sample gravity processing at
Stakhanovskiy with increased average daily throughput
-- Processing of 16,586 tonnes (for the 2012 calendar year to
end of August) of primary rock from the Berezitoviy and
Zabolocheniy ore bodies by gravity concentration, averaging 204
tonnes per day
-- Diamond core drilling started at Berezitoviy with 288 metres
drilled in August from a planned 4,020 metres
-- Appointment of Wardell Armstrong International to estimate
resources at the Stakhanovskiy Project
-- Thin high-grade gold drill intersections discovered at
Podgorniy. High grade gold drill intercepts were found to persist
at considerable depth to 356 metres vertical below surface
-- The three best HQ diamond core drill holes intercepted at Podgorniy were:
v 1.2 metres at 10.40 g/t gold and 101.00g/t silver from 26.0
metres depth
v 2.9 metres at 7.94 g/t gold and 18.70 g/t silver from 34.4
metres depth
v 0.9 metres at 10.00 g/t gold and 11.50 g/t silver from 356.0
metres depth
-- Bazaar Prospect: New high sulphidation type pyrite
mineralization discovered within a 600 metre trench and from 1,050
metres of core drilling. If gold is associated with this pyrite a
new target type has potentially been identified
-- Agromniy Prospect: 1,000 metres of surface trenching exposed
a visible lead-silver (and potential gold) quartz vein at least 250
metres in length. Trenching is being undertaken perpendicular to
the vein
CEO's letter
Dear shareholders,
It is my pleasure to report to you our financials and the
results of our work for the first half of 2012. This year we
identified a number of tasks which we sought to advance, building
upon progress achieved in 2011. On Stakhanovskiy we planned to
commence operations with our pilot bulk sampling plant which was
built in 2011 and to complete a bulk sampling and drilling program
which would allow us to calculate updated JORC resources for this
project. On Rassoshinskaya we planned to continue further
exploration works on last year's sites, Podgorniy and Zet, and also
commenced drilling on a new target, Bazaar. On the corporate level
we received a full exploitation license for the Olcha deposit.
Exploration:
Stakhanovskiy Project
The hard rock gravitation bulk sampling plant was commissioned
and was operating to capacity. Following on from work undertaken in
2011, in the first half of 2012 further samples were taken from
trenches and large bulk samples excavations. The bulk sampling
plant throughput averaged 189 tonnes per 24 hour period and 5,000
tonnes of ore from the Berezitoviy and Zabolocheniy ore bodies were
processed in the first half of 2012. The gravity concentrates and
samples from the mill were collected. Samples were transported to
Magadan for shaking table processing, with products fire assayed by
Alex Stewart Laboratories in Moscow.
Diamond core drilling commenced at the end of August. An updated
resource estimate by consultants Wardell Armstrong International on
the current JORC Inferred category resource is planned to be
completed by the end of 2012, once all bulk sampling, trenching and
drilling is completed and the results have been received.
A total of 284 linear metres of trenches were completed at
Zabolocheniy and three 50 metre x 20 metre rectangular areas were
cleared and excavated on the Zabolocheniy orebody beneath shallow
colluvium. These areas were blasted to 1.5 metres depth and mined
and stockpiled on the plant ore pad adjacent to the crusher ready
for processing in the bulk sampling plant.
Gold assays were received for a total of 286 samples taken from
trenches completed in 2011 with an extra 5 grab samples. The
average linear sample length was 1.5 metres and the total weight of
all samples was 4,648 kg. The trench samples were processed on a
shaking table with products assayed. The average gold grade of all
samples was 2.63g/t and there are 15 significant trench intervals,
>1.0g/t gold, shown in Table 1. Samples were taken from near
surface semi-oxidized highly altered diorite dykes that contain
extensive quartz veining. The assays were higher in gold grade than
expected which illustrates the potential of the resource to be
upgraded and to progress the project to feasibility.
Table 1: Stakhanovskiy Trench Sample, Fire Assay 50g, >1g/t
gold
Trench From (m) To (m) Interval Gold Grade
Name (m) g/t
-------- --------- ------- --------- -----------
KBR1 4.5 10.5 6.0 1.67
-------- --------- ------- --------- -----------
KBR1 13.5 15.0 1.5 1.72
-------- --------- ------- --------- -----------
KBR2 31.5 33.0 1.5 1.21
-------- --------- ------- --------- -----------
KBR4 3.0 4.5 1.5 8.06
-------- --------- ------- --------- -----------
KBR4 10.5 12.0 1.5 2.31
-------- --------- ------- --------- -----------
KBR4 18.5 22.5 4.0 3.81
-------- --------- ------- --------- -----------
KBR4 32.5 35.5 3.0 1.98
-------- --------- ------- --------- -----------
KBR5 5.5 7.0 1.5 2.02
-------- --------- ------- --------- -----------
TBR1-3 24.0 25.5 1.5 1.22
-------- --------- ------- --------- -----------
TBR1-5 26.0 27.5 1.5 1.24
-------- --------- ------- --------- -----------
TBR2-7 9.0 11.5 2.5 281.40
-------- --------- ------- --------- -----------
TBU1-2 10.5 13.5 3.0 2.79
-------- --------- ------- --------- -----------
TBU1-4 1.5 3.0 1.5 45.76
-------- --------- ------- --------- -----------
TBU1-4 7.5 8.5 1.0 1.03
-------- --------- ------- --------- -----------
TBU1-6 4.0 8.0 4.0 41.28
-------- --------- ------- --------- -----------
Rassoshinskaya Project
Podgorniy Prospect
A total of 8 diamond drill core holes for 1,580 metres were
completed. Drilling tested various depths less than 350 metres
vertical from surface and locations across a 1,000 metre long by
350 metre wide gold-silver mineralized zone.
Zet Prospect
A total of 15 diamond drill core holes for 2,229 meters were
completed. Drilling was undertaken over a 2km strike length with
maximum depths down to 200m vertical from surface. Gold fire assay
results were received for 325 samples. A table of significant gold
assay results is shown in Table 1. Alteration and mineralisation
zones composed of typical banded epithermal quartz-adularia veining
were found to continue at depth and along the strike length from
Ovoca Gold's trenching and drilling completed in 2011.
Table 2: Zet Prospect HQ diamond core drill intersections, Fire
Assay 50g, >1g/t gold
Drill Down Depth Interval True thickness Gold Silver
Hole hole from Surface (m) (m) Grade Grade
Name depth (m) g/t g/t
(m)
------- ------- -------------- --------- --------------- ------- -------
CZ-30 108.4 93.9 0.5 0.4 74.40 342.0
------- ------- -------------- --------- --------------- ------- -------
CZ-31 144.0 124.7 2.4 2.0 4.53 38.9
------- ------- -------------- --------- --------------- ------- -------
Bazaar Prospect
A total of 600 linear meters of trenches were completed to
identify potential targets for drilling. A 20 metre wide primary
stockwork type quartz-carbonate vein system was discovered in the
trenches near two historical surface float rock chip samples that
have assay values of 24g/t and 60g/t gold, centred on an east-west
striking creek so is covered with alluvial rocks.
Northwest Bazaar Project
Reconnaissance geological mapping identified a new prospect with
extensive epithermal quartz veins on the surface. Historical
surface float rock chip assays have gold values up to 5.0g/t. A 50m
trenching program tested the area.
Corporate:
Olcha exploitation license
On April 3, 2012 Ovoca was granted an exploitation license for
the Olcha deposit by the Russian State regulatory bodies. The
Company was granted a 25 year exploitation license regarding Olcha
(license number MAG 04341 BE, valid to 3 April 2037).
The Olcha license has a total area of 2.5 square kilometers and
allows the Company, through its Russian ZAO Bulun subsidiary, to
mine gold and silver. The State-certified reserves equal 279,000
ounces of gold at a grade of 13.4 g/t and 655,000 ounces silver at
a grade of 31.6 g/t in the Russian reserve category C1 + C2 (this
is not JORC compliant and not reviewed by a Competent Person). The
Company, as per the license terms, must begin construction of a
mine no later than 3 October 2020.
Board and management appointment
On April 12, 2012 Kirill Golovanov joined the Board of directors
and on May 3, 2012 he was appointed CEO. Mr. Golovanov joined Ovoca
as a corporate advisor in 2007 and moved to be the manager of the
Company's Russia representative office in 2009. During his time at
Ovoca he played a major role in the development and subsequent sale
of the Goltsovoye silver deposit. He has extensive experience in
mining and corporate law, as well as working experience at leading
Russian enterprises, such as Gazprombank and Vneshekonombank.
Sincerely,
Kirill Golovanov
CEO
Ovoca Gold plc
Interim results for the six months ended 30
June 2012
CONSOLIDATED INCOME Unaudited Unaudited Unaudited Unaudited
STATEMENT
6 Months 6 Months 6 Months 6 Months
ended ended ended ended
30/06/2012 30/06/2011 30/06/2012 30/06/2011
EUR'000 EUR'000 $'000 $'000
Continuing operations
Exploration costs
written off - (166) - (233)
Gross loss - (166) - (233)
--------------------------- ------------------------------- ----------- ------------------------------ -----------
Administration expenses (977) 380 (1,267) 533
Share option expense - (44) - (62)
Other gains and
losses (1,023) 7,379 (1,328) 10,353
Operating (loss)/profit (2,000) 7,549 (2,595) 10,591
--------------------------- ------------------------------- ----------- ------------------------------ -----------
Finance costs (526) (645) (685) (905)
Finance income 368 354 478 496
(Loss)/profit for
the period before
tax (2,158) 7,258 (2,802) 10,182
--------------------------- ------------------------------- ----------- ------------------------------ -----------
Income tax - (88) - (123)
(Loss)/profit for
the period from
continuing
operations (2,158) 7,170 (2,802) 10,059
--------------------------- ------------------------------- ----------- ------------------------------ -----------
(Loss)/profit for
the period (2,158) 7,170 (2,802) 10,059
--------------------------- ------------------------------- ----------- ------------------------------ -----------
Attributable to:
Owners of the parent (2,158) 7,170 (2,802) 10,059
(2,158) 7,170 (2,802) 10,059
--------------------------- ------------------------------- ----------- ------------------------------ -----------
(Loss)/earnings
per share
Basic (loss)/earnings (0.02) 0.08 (0.03) 0.12
per share from continuing cents cents cents cents
operations
--------------------------- ------------------------------- ----------- -----------
Fully diluted (0.02) 0.08 (0.03) 0.11
(loss)/earnings cents cents cents cents
per share from continuing
operations
--------------------------- ------------------------------- ----------- ------------------------------ -----------
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Unaudited Unaudited Unaudited Unaudited
6 Months 6 Months 6 Months 6 Months
ended ended ended ended
30/06/2012 30/06/2011 30/06/2012 30/06/2011
EUR'000 EUR'000 $'000 $'000
(Loss)/profit for
the period (2,158) 7,170 (2,802) 10,059
--------------------------- ------------------------------- ----------- ------------------------------ -----------
Other comprehensive
income/(expense):
Movement on available
for sale financial
assets (1,504) (8,600) (1,891) (10,516)
Exchange movement 1,475 (2,784) (1,007) (1,402)
Total comprehensive
loss for the period (2,187) (4,214) (5,700) (1,859)
--------------------------- ------------------------------- ----------- ------------------------------ -----------
There is no income tax impact in respect
of components recognised within the consolidated
statement of comprehensive income.
CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY
Share Share Share Other Foreign Retained Total
capital premium based reserves Currency earnings (attributable
payment Translation to
reserve Reserve owners
of
the
parent)
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 January
2012 11,057 - 1,294 6,107 2,609 29,086 50,153
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
Comprehensive
income:
Loss for the
period - - - - - (2,158) (2,158)
Other
comprehensive
income
Fair value
movement
on available
for
sale
financial
assets - - - (1,504) - - (1,504)
Realised
exchange
movement on
available
for sale
assets
disposed of
during
the period - - - - - - 0
Exchange
movement - - - - 1,475 - 1,475
Total
comprehensive
income - - - (1,504) 1,475 (2,158) (2,187)
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
Total - - - - - - -
transactions
with owners
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
At 30 June
2012 11,057 0 1,294 4,603 4,084 26,928 47,966
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
At 1 January
2011 11,057 48,108 1,253 16,729 2,494 (22,893) 56,748
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
Comprehensive
income:
Gain for the
period - - - - - 7,170 7,170
Other
comprehensive
income
Fair value
movement
on available
for
sale
financial
assets - - - (8,600) - - (8,600)
Realised
exchange
movement on
available
for sale
assets
disposed of
during
the period - - - - (971) - (971)
Exchange
movement (1,813) (1,813)
Total
comprehensive
income - - - (8,600) (2,784) 7,170 (4,214)
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
Transactions
with
owners
Reduction of
Share
Premium - (48,108) - - - 48,108 -
Share based
payments - - 41 - - - 41
Share Buy Back - - - - 15 (60) (45)
--------------- ----------------------- --------------------
Total
transactions
with owners - (48,108) 41 - 15 48,048 (4)
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
At 30 June
2011 11,057 - 1,294 8,129 (275) 32,325 52,530
--------------- ----------------------- ---------------- ----------------------- ---------------- ----------------------- -------------------- ----------------------
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Unaudited Audited Unaudited Audited
30/06/2012 31/12/2011 30/06/2012 31/12/2011
EUR'000 EUR'000 $'000 $'000
Assets
Current assets
Inventories 167 120 210 155
Trade and other
receivables 1,226 7,241 1,542 9,373
Cash and cash equivalents 20,397 19,826 25,652 25,672
21,790 27,187 27,404 35,200
--------------------------- ----------- ----------- ----------- -----------
Non current assets
Property, plant
and equipment 3,034 2,583 3,816 3,603
Intangible assets 26,121 24,635 36,882 34,954
Available for sale
financial assets 8,733 8,877 10,984 11,494
37,888 36,095 51,682 50,051
--------------------------- ----------- ----------- ----------- -----------
Total assets 59,678 63,282 79,086 85,251
--------------------------- ----------- ----------- ----------- -----------
Liabilities
Current liabilities
Trade and other
payables 662 476 833 616
Contingent provisions 7,044 2,275 8,859 2,946
7,706 2,751 9,692 3,562
--------------------------- ----------- ----------- ----------- -----------
Non current liabilities
Contingent provisions 4,006 10,378 5,038 13,647
Total liabilities 11,712 13,129 14,730 17,209
--------------------------- ----------- ----------- ----------- -----------
Net assets 47,966 50,153 64,356 68,042
--------------------------- ----------- ----------- ----------- -----------
Equity
Ordinary shares 11,057 11,057 15,586 15,586
Other reserves 4,603 6,107 6,003 7,894
Foreign currency
translation reserve 4,084 2,609 3,903 2,896
Share based payment
reserve 1,294 1,294 1,759 1,759
Profit and loss
account 26,928 29,086 37,105 39,907
47,966 50,153 64,356 68,042
--------------------------- ----------- ----------- ----------- -----------
CONSOLIDATED
STATEMENT
OF CASH FLOWS
Unaudited Audited Unaudited Audited
30/06/2012 31/12/2011 30/06/2012 31/12/2011
EUR'000 EUR'000 $'000 $'000
Cash flows from
operating activities
Net (loss)/profit
for the period/year
before tax (2,158) 4,263 (2,802) 5,937
Foreign currency
reserve movement 1,475 115 1,007 (506)
Exploration costs
written off - 1,528 - 2,128
Depreciation 35 78 45 109
Net Finance Costs (158) (201) (207) (239)
Share option expense - 41 - 53
(Increase)/decrease
in inventories (47) (85) (55) (109)
Decrease/(Increase)
in trade and other
receivables 6,015 (2,323) 7,831 (2,856)
Increase/(decrease)
in trade and other
payables 186 (106) 217 (329)
Net cash flow from
continuing
operations 5,348 3,310 6,036 4,188
---------------------- --------------------------- --------------------------- --------------------------- ---------------------------
Net cash flow from
operating activities 5,348 3,310 6,036 4,188
---------------------- --------------------------- --------------------------- --------------------------- ---------------------------
Cash flow from
financing activities
Net interest received 158 201 207 239
Net repayment on
contingent
consideration (1,603) - (2,696) -
Payments to acquire
Treasury Shares - (392) - (575)
Net cash flow from
financing activities (1,445) (191) (2,489) (336)
---------------------- --------------------------- --------------------------- --------------------------- ---------------------------
Cash flows from
investing activities
Expenditure on
exploration
activities (1,486) (2,750) (1,928) (3,830)
Net
proceeds/(purchases)
of property, plant
& equipment (486) (1,911) (258) (2,688)
Purchase of available
for sale assets (1,360) - (1,381) 0
Net (loss)/gain
on AFS assets - 12,974 - 17,215
Net cash flow from
investing activities (3,332) 8,313 (3,567) 10,697
---------------------- --------------------------- --------------------------- --------------------------- ---------------------------
Net
(decrease)/increase
in cash and cash
equivalents 571 11,432 (20) 14,549
Cash and cash
equivalents
at the beginning
of period/year 19,826 8,394 25,672 11,123
Cash and cash
equivalents
at the end of
period/year 20,397 19,826 25,652 25,672
---------------------- --------------------------- --------------------------- --------------------------- ---------------------------
1 Basis of Preparation
The interim consolidated financial statements for the six months ended 30 June 2012 have been
prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the International
Accounting Standards Board.
The interim consolidated financial statements do not include all the information and disclosures
required in the annual financial statements and should be read in conjunction with the Group's
annual financial statements as at 31 December 2011.
2 Accounting Policies
The accounting policies adopted in the preparation of the interim consolidated financial statements
are consistent with those followed in the preparation of the Group's annual financial statements
for the year ended 31 December 2011.
The adoption of other new standards and interpretations (as set out in the 2011 Annual Report)
that became effective for the Group's financial statements for the year ended 31 December
2012 did not have any significant impact on the interim financial statements.
3 Going concern
The interim financial statements consolidate the financial statements of Ovoca Gold Plc and
its subsidiary undertakings for the six months ended 30 June 2012. The company uses the full
cost method of accounting for exploration costs. Under this method all costs associated with
exploration are capitalised. The recovery of exploration costs is dependent on the successful
production of economic quantities of precious metals and other minerals. If commercial production
is achieved, the unit of production basis will be used to amortise all remaining balances
in the proportion the current production in a period bears to total estimated recoverable
reserves. Provision for impairment is made where a project is abandoned or considered to be
of no further interest to the group or its anticipated income potential is less than the carrying
value of the project on the statement of financial position. The directors have reviewed the
current state of the group's finances, taking into account resources currently available to
the group. The directors are satisfied that sufficient funding will be available to the group
to enable it to trade at its projected level of operations for the foreseeable future. On
this basis the directors consider that it is appropriate to prepare the financial statements
on the going concern basis. The directors consider that in preparing the financial statements
they have taken into account all information that could reasonably be expected to be available.
The financial statements do not include any adjustments that would result if the Director's
plans were not successful.
Segmental
4 reporting
Segment information is presented in accordance
with IFRS 8 - Operating Segments with effect from
1 January 2010. Comparative information is presented
on a consistent basis.
At 30 June 2012, the Group had two business segments,
Exploration activities and Investment. Exploration
activities are primarily carried out by number
of subsidiary companies based in Russia. Investing
activities are carried out by another subsidiary
company located in Bermuda. Unallocated costs
represent group administration costs, primarily
incurred in Ireland.
Period ended Exploration Investment Unallocated Total Exploration Investment Unallocated Total
30 June 2012 Activities Activities
EUR'000 EUR'000 EUR'000 EUR'000 US$'000 US$'000 US$'000 US$'000
Exploration
costs written
off - - - 0 - - - 0
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Administration
expenses (139) (255) (582) (976) (181) (331) (755) (1,267)
Other gains
and losses - (1,008) (15) (1,023) - (1,309) (19) (1,328)
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Operating
loss (139) (1,264) (597) (2,000) (181) (1,640) (774) (2,595)
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Finance costs (126) (399) (1) (526) (164) (520) (1) (685)
Finance income 59 308 1 368 76 401 1 478
Loss before
tax (206) (1,355) (597) (2,158) (269) (1,759) (774) (2,802)
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Segment assets 14,483 45,083 112 59,678 22,247 56,699 141 79,086
Segment liabilities (495) (11,050) (167) (11,712) (623) (13,897) (210) (14,730)
Net assets 13,988 34,033 (55) 47,966 21,624 42,802 (69) 64,356
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Period ended Exploration Exploration
30 June 2011 Activities Investment Unallocated Total Activities Investment Unallocated Total
EUR'000 EUR'000 EUR'000 EUR'000 US$'000 US$'000 US$'000 US$'000
Exploration
costs written
off (98) - (68) (166) (137) - (95) (232)
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Administration
expenses 267 2,146 (2,077) 336 375 3,010 (2,914) 471
Other gains
and losses 121 7,259 (1) 7,379 170 10,185 (1) 10,354
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Operating
profit/(loss) 290 9,405 (2,146) 7,549 408 13,195 (3,010) 10,593
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Finance costs (94) (598) 47 (645) (132) (839) 66 (905)
Finance income 161 192 1 354 226 269 1 496
Profit/loss
before tax 357 8,999 (2,098) 7,258 502 12,625 (2,943) 10,184
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Segment assets 16,148 49,004 135 65,287 23,236 70,514 195 93,946
Segment liabilities (763) (11,721) (269) (12,753) (1,098) (16,866) (387) (18,351)
Net assets 15,385 37,283 (134) 52,534 22,138 53,648 (192) 75,595
-------------------- ----------------------------- ---------------------------- ------------------------ --------- -------------------------- ----------------------- ------------------------- ---------
Segmental reporting
4 (continued)
Secondary reporting
format - geographical
segments
The Group's business segments and its assets are
located in the Russia, Bermuda, Ireland and the
United Kingdom. The table above shows income and
expenditure and assets and liabilities by primary
geographical segments on the basis that exploration
activities are carried out in Russia, investment
activity is carried out in Bermuda and unallocated
amounts relate to costs incurred in Ireland and
the United Kingdom.
Financial assetsavailable forsale
5
Financial assets available for sale are held at
their fair value and consist of quoted securities.
There was a fall in the price of the securities
during the period but their overall performance
remains strong, the decrease of the total value
of the financial assets being caused by that fall.
During the period the company disposed of its
investment in the asset managed fund and acquired
an additional amount of quoted securities with
the proceeds.
Contingent
6 provisions
The Change in the Provisions is due to the
timing of the deferred consideration payable
on the acquisition of the 3 Russian subsidiaries,
with the bulk of the conditional payment now
falling due within the next 18 months.
The movement
on deferred
consideration
during the
period/year is
as follows:
Unaudited Audited Unaudited Audited
30/06/2012 31/12/2011 30/06/2012 31/12/2011
EUR'000 EUR'000 $'000 $'000
Deferred
consideration
at 1 January 2012 12,653 12,082 16,593 16,010
Effective interest
for
the period 396 806 304 1,123
Payments made
during the
period (2,386) - (3,000) -
Exchange rate
movement
for the period 387 182 - -
Fair value
adjustment on
re-evaluation of
payment
dates of deferred
consideration - (417) - (540)
Deferred
consideration
at 30 June 2012 11,050 12,653 13,897 16,593
------------------- -------------------------- ----------------------- ------------------------- ---------------------
Events after
the
reporting
7 period
There have been no significant events affecting
the Group since the interim period.
Approval of
the
financial
8 statements
The interim report was approved by the Board
of Directors on 27th September 2012 and is
included on the Company's website, www.ovocagold.com.
The resource information contained in this announcement has been
compiled and verified by Mr. Darren Allingham for the purposes of
the AIM Note for Mining and Oil & Gas Companies issued by the
London Stock Exchange in June 2009. Mr. Allingham is a member of
The Australasian Institute of Mining and Metallurgy and The
Australian Institute of Geoscientists and is a JORC (2004)
competent person for the type of minerals being reported on in this
statement. Mr. Allingham is a Geologist with over 17 years of work
experience in gold exploration, resource estimation and mining, in
thirteen different countries and has Bachelors and Bachelors with
honours degrees in geology from The Australian National University
and The University of Queensland, Australia. Mr. Allingham consents
to the inclusion in the announcement of the matters based on their
information in the form and context in which it appears.
Ovoca Gold Plc
Kirill Golovanov +7 495 916 6029
Davy - NOMAD, ESM Adviser and Joint Broker
John Frain/Daragh O'Reilly +353 1 679 6363
Fairfax I.S. PLC - Joint Broker
Ewan Leggat/Laura Littley +44 207 598 5368
This information is provided by RNS
The company news service from the London Stock Exchange
END
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