EURASIA MINING PLC

Quarterly Report • Sep 2, 2014

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RNS Number : 6002Q

Eurasia Mining PLC

02 September 2014

Eurasia Mining plc

Interim Results

for the six months ended

30 June 2014

Chairman's Statement 

I am pleased to be able to report on very important progress made by Eurasia Mining plc ("Eurasia" or the "Company") over the past six months, with the agreement to increase our equity share in our Russian projects and the advancement of the permitting progress of the mining project at West Kytlim in the Urals. 

Joint Venture with Anglo Platinum 

Eurasia agreed to acquire the remaining 50 percent of Urals Alluvial Platinum Limited (the "UAP") that it did not already own from Anglo American Platinum Limited. UAP is the operating company for both the West Kytlim project in the Urals and the Monchetundra project in the Kola Peninsula.  As a result, Eurasia will hold 75% equity in West Kytlim and 100% in Monchetundra. The agreement is conditional on South African exchange control approval. 

I believe the timing of this transaction is of great benefit to the Company as production becomes closer to realization. Eurasia has been executing and funding a work programme on its own on both projects since 2009. I believe our work has produced attractive assets which, particularly in the case of West Kytlim, are nearing production and it is therefore an excellent outcome that we should enter this next phase with double the original interest in the projects. Eurasia's increased equity interest in UAP should also provide greater flexibility to bring in new partners or to restructure the holdings for improved efficiency of future operations, should the Company wish to do so. 

West Kytlim 

Exploration work has completed on the West Kytlim licence and work is now concentrated on the regulatory steps necessary to allow mining to commence. Earlier this year we announced a substantial uplift in approved reserves, for which we have made application for a Discovery Certificate and are hopeful that this will be awarded in the very near future. Following its receipt the Company will immediately lodge an application for a Production Licence; preparatory work for this has already been completed. 

Monchetundra 

After several years of exploration the Company is now in the process of 3D modeling of two priority open pit targets and is putting together a feasibility study of these 2 targets.

Michael Martineau 

Chairman 

Condensed consolidated statement of comprehensive income

for the six months ended 30 June 2014

	Note	6 months to 30 June 2014	12 months to 31 December 2013	6 months to 30 June 2013
		(unaudited)	(audited)	(unaudited)
Revenue		3,640	16,355	10,055
Administrative costs		(244,397)	(508,340)	(273,646)
Loss on revised period of repayment of the loan made to joint venture	5	-	(270,178)	(136,152)
Finance income		258	2,908	2,444
Other financial results		(43,201)	8,916	115,943
Loss before tax		(283,700)	(750,339)	(281,356)
Income tax expense		-	-	-
Loss for the period		(283,700)	(750,339)	(281,356)
Other comprehensive (loss)/income:
Items that will not be reclassified subsequently to profit and loss:
NCI share of foreign exchange differences on translation of foreign operations		(8,305)	(5,371)	16738
Items that will be reclassified subsequently to profit and loss:
Available for sale financial assets		-	-	-
- current year gain/(losses)		(7,108)	-	-
Parents share of foreign exchange differences on translation of foreign operations		33,857	(15,057)	(101,173)
Other comprehensive income/(loss) for the period, net of tax		18,444	(20,428)	(84,435)
Total comprehensive loss for the period		(265,256)	(770,767)	(365,791)
Loss for the period attributable to:
Owners of the parent		(269,043)	(746,024)	(277,707)
Non-controlling interest		(74)	(4,315)	(3,649)
		(269,117)	(750,339)	(281,356)
Total comprehensive loss for the period attributable to:
Owners of the parent		(242,294)	(761,081)	(378,880)
Non-controlling interest		(8,379)	(9,686)	13,089
		(265,256)	(770,767)	(365,791)
Basic and diluted loss (pence per share)		(0.03)	(0.08)	(0.03)

Condensed consolidated statement of financial position

as at 30 June 2014

	Note	At 30 June 2014	At 31 December 2013	At 30 June 2013
		(unaudited)	(audited)	(unaudited)
ASSETS
Non-current assets
Property, plant and equipment	4	24,601	25,558	26,679
Other financial assets	5	3,356,311	3,114,037	2,880,071
Total non-current assets		3,380,912	3,139,595	2,906,750
Current assets
Inventories		781	968	1,428
Trade and other receivables		41,598	72,610	92,404
Other financial assets		16,142	-	-
Cash and bank balances		77,180	361,905	998,448
Total current assets		135,701	435,483	1,092,280
Total assets		3,516,613	3,575,078	3,999,030
EQUITY
Capital and reserves
Issued capital	6	22,327,527	22,327,527	22,327,527
Reserves	7	3,295,395	3,268,646	3,188,172
Accumulated losses		(22,690,825)	(22,407,199)	(21,944,524)
Equity attributable to equity holders of the parent		2,932,097	3,188,974	3,571,175
Non-controlling interest		253,568	261,947	284,722
Total equity		3,185,665	3,450,921	3,855,897
LIABILITIES
Current liabilities
Trade and other payables		330,948	124,157	143,133
Total current liabilities		330,948	124,157	143,133
Total liabilities		330,948	124,157	143,133
Total equity and liabilities		3,516,613	3,575,078	3,999,030

Condensed statement of changes in equity

for the six months ended 30 June 2013

		Attributable to owners of the parent
	Note	Share capital	Share premium	Deferred shares	Other reserves	Translation reserve	Accumulated losses	Total attributable to owners of parent	Non-controlling interest	Total equity
Balance at 1 January 2013		965,469	14,336,575	7,025,483	3,944,783	(655,438)	(21,666,817)	3,950,055	259,257	4,209,312
Contributed by non-controlling party		-	-	-	-	-	-	-	12,376	12,376
Transaction with owners		-	-	-	-	-	-	-	12,376	12,376
Loss for the period							(277,707)	(277,707)	(3,649)	(281,356)
Other comprehensive loss
Exchange differences on translation of foreign operations		-	-	-	-	(101,173)		(101,173)	16,738	(84,435)
Total comprehensive income		-	-	-	-	(101,173)	(277,707)	(378,880)	13,089	(365,791)
Balance at 30 June 2013		965,469	14,336,575	7,025,483	3,944,783	(756,611)	(21,944,524)	3,571,175	284,722	3,855,897

Condensed statement of changes in equity

for the six months ended 30 June 2014

		Attributable to owners of the parent
	Note	Share capital	Share premium	Deferred shares	Other reserves	Translation reserve	Accumulated losses	Total attributable to owners of parent	Non-controlling interest	Total equity
Balance at 1 January 2014		965,469	14,336,575	7,025,483	3,939,141	(670,495)	(22,407,199)	3,188,974	261,947	3,450,921
Loss for the period							(283,626)	(283,626)	(74)	(283,700)
Other comprehensive loss
Fair value loss on available for sale financial assets					(7,108)			(7,108)		(7,108)
Exchange differences on translation of foreign operations		-	-	-	-	33,857		33,857	(8,305)	25,552
Total comprehensive income		-	-	-	(7,108)	33,857	(283,626)	(256,877)	(8,379)	(265,256)
Balance at 30 June 2014		965,469	14,336,575	7,025,483	3,932,033	(636,638)	(22,690,825)	2,932,097	253,568	3,185,665

Condensed consolidated statement of cash flows

for the six months ended 30 June 2014

		6 months to 30 June 2014	12 months to 31 December 2013	6 months to 30 June 2013
		(unaudited)	(audited)	(unaudited)
Cash flows from operating activities
Loss for the period		(283,700)	(750,339)	(281,356)
Adjustments for:
Depreciation and amortisation of non-current assets:
- Fixed assets		548	839	291
Loss on revised period of repayment of the loan made to joint venture		-	270,178	136,152
Net foreign exchange loss/(profit)		43,201	(8,916)	(115,943)
Investment revenue recognised in profit and loss		(258)	(2,908)	(2,444)
		(240,209)	(491,146)	(263,300)
Movements in working capital
Decrease in inventories		187	650	190
Decrease/(increase) in trade and other receivables		7,328	(14,869)	(34,068)
Increase/(decrease) in trade and other payables		207,056	(12,658)	4,500
Cash used in operations		(25,638)	(518,023)	(292,678)
Net cash used in operating activities		(25,638)	(518,023)	(292,678)
Cash flows from investing activities
Advanced to joint venture		(257,615)	(867,735)	(459,028)
Contributed by non-controlling party		-	12,376	12,376
Payments for property, plant and equipment		-	(2,202)	(2,202)
Interest received		258	2,908	2,444
Net cash used in investing activities		(257,357)	(854,653)	(446,410)
Net decrease in cash and cash equivalents		(282,995)	(1,372,676)	(739,088)
Effects of exchange rate changes on the balance of cash held in foreign currencies		(1,730)	(839)	2,116
Cash and cash equivalents at the beginning of period		361,905	1,735,420	1,735,420
Cash and cash equivalents at the end of the period		77,180	361,905	998,448

Selected notes to the condensed consolidated financial statements

for the six months ended 30 June 2014

1. General information

Eurasia Mining plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at 2nd Floor, 85-87 Borough High Street, London SE1 1NH. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals, gold and other minerals in Russia.

The financial information set out in these condensed interim consolidated financial statements (the "Interim Financial Statements") do not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2013, prepared under International Financial Reporting Standards (the "IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified. The report did not contain a statement under Section 498(2) of the Companies Act 2006.

2. Basis of preparation

The Group prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) ,as endorsed by the European Union (EU). These condensed consolidated interim financial statements for the period ended 30 June 2014 have been prepared by applying the recognition and measurement provisions of IFRS and the accounting policies adopted in the audited accounts for the year ended 31 December 2013.

These Interim Financial Statements have been prepared under the historical cost convention.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

The Interim Financial Statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company.

3. Accounting policies

The Interim Financial Statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 31 December 2013.

4. Additions and disposals of property, plant and equipment

		30 June	31 December	30 June
		2014	2013	2013
		£	£	£
Net book value at the beginning of period		25,558	24,876	24,876
Additions		-	2,202	2,202
Depreciation		(548)	(839)	(291)
Exchange differences		(409)	(681)	(108)
Net book value at the end of period		24,601	25,558	26,679

5. Other financial assets

		30 June	31 December	30 June
		2014	2013	2013
Loan to joint venture		3,002,817	2,748,967	2,484,279
Advances to acquire interest in uranium project		353,494	365,070	395,792
		3,356,311	3,114,037	2,880,071

Loan to joint venture is provided by the Group on an interest free basis with no fixed date of repayment. The Group does not hold any collateral as security.

In prior periods the Group recognised that the loan advanced to the joint venture was not to be repaid within 12 months from the start of the platinum production mining licence for which is expected to be granted by authorities in Russia. Consequently the Group have fair valued the loan estimating the repayment of the loan based on cash flows due to be generated by the joint venture. The loan was discounted using NPV method. No discount has been recognised in the period (£270,178 within the comparative period of 2013). Actual repayment schedule and interest chargeable on the loan will be revised by the joint venture partners as soon as the production licence has been granted.

Undiscounted amount of the loan at 30 June 2014 is £3,809,026.

Advances to acquire interest in uranium project represent payment of $602,000 made in 2011 towards acquisition of 55% interest in the Kamushanovsky uranium project in Kyrgyzstan.

6. Share capital

		30 June	31 December	30 June
		2014	2013	2013
Issued ordinary shares with a nominal value of 0.1p:
Number		965,468,701	965,468,701	965,468,701
Nominal value (£)		965,469	965,469	965,469
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Issued deferred shares with a nominal value of 4.9 p:
Number		143,377,203	143,377,203	143,377,203
Nominal value (£)		7,025,483	7,025,483	7,025,483

Deferred shares have the following rights and restrictions attached to them:

- they do not entitle the holders to receive any dividends and distributions;

- they do not entitle the holders to receive notice or to attend or vote at General Meetings of the Company;

- on return of capital on a winding up the holders of the deferred shares are only entitled to receive the amount paid up on such shares after the holders of the ordinary shares have received the sum of 0.1p for each ordinary share held by them and do not have any other right to participate in the assets of the Company.

7. Reserves

		30 June	31 December	30 June
		2014	2013	2013
		£	£	£
Capital redemption reserve		3,539,906	3,539,906	3,539,906
Foreign currency translation reserve		(636,638)	(670,495)	(756,611)
Share-based payment reserve		399,235	399,235	404,877
		3,295,395	3,268,646	3,188,172

The capital redemption reserve was created as a result of a share capital restructuring in earlier years. There is no policy of regular transactions affecting the capital redemption reserve.

The foreign currency translation reserve represents exchange differences relating to the translation from the functional currencies of the Group's foreign subsidiaries into GBP.

The share-based payments reserve represents a reserve arising on the grant of share options to employees under the employee share option plan.

This information is provided by RNS

The company news service from the London Stock Exchange

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