Columbus Energy S.A.

Quarterly Report • Jun 25, 2021

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CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED MARCH 31, 2020

9m2020FY

Coal Energy S.A. 9m2020FY

CONTENTS	PAGE
Statement of management responsibility	3
Management report	4
Consolidated statement of profit or loss and other comprehensive income	5
Consolidated statement of financial position	6
Consolidated statement of changes in equity	7
Consolidated statement of cash flows	8
Notes to consolidated financial statements	9

STATEMENT OF MANAGEMENT RESPONSIBILITY

To the best of our knowledge, consolidated financial statements as of 31 March 2020 of Coal Energy S.A. which have been prepared in accordance with the international financial reporting standards, give a true and fair view of the assets, liabilities, financial position and result of its operations for the nine months ended 31 March 2020 as required under the as required under article 4(3) of the Law. The interim management report includes a fair review of the information required under article 4(4) of the Law.

While preparing these consolidated financial statements, the Management bears responsibility for the following issues:

• selection of the appropriate accounting policies and their consistent application;

• making judgments and estimates that are reasonable and prudent;

• adherence to IFRS concepts or disclosure of all material departures from IFRS in the consolidated financial statements;

• preparation of the consolidated financial statements on the going concern basis.

Management confirms that it has complied with the above-mentioned principles in preparing the consolidated financial statements of the Group.

The Management is also responsible for:

• keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group;
• taking reasonable steps to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

On behalf of management of Coal Energy S.A.

Directors A: Directors B:

__________signed_____________ Chairman of the Board of Directors Viktor Vyshnevetskyy

__________signed_____________ Chief Operating Director Pavlo Moiseyenko

__________signed_____________ Business Development Director Oleksandr Reznyk

__________signed_____________ Independent Non-executive Director Arthur David Johnson

Luxembourg, 25 June 2021

__________signed_____________

Independent Non-executive Director Diyor Yakubov

COAL ENERGY S.A. MANAGEMENT REPORT

Management of the Company hereby presents its interim consolidated financial statements for the nine months on 31 March 2020.

1. Results and developments.

For the nine months ended on 31 March 2020 the Group recorded an EBITDA loss of USD 1,168 thousand (EBITDA profit for the nine months ended 31 March 2019 USD 2,036 thousand). After depreciation, amortization, taxation, finance costs and finance income the final profit for the nine months ended 31 March 2020 after taxation was USD 27,180 thousand (loss for the nine months ended 31 March 2019 USD 6,109 thousand).

2. Future developments.

The Group is optimizing internal reserves and is considering remaining options for funding its operations to cover liquidity needs in the environment of continuing military conflict in the Eastern Ukraine.

3. Activity in the field of research and development.

The Group is not involved in any activity in the field of research and development.

4. Own shares.

During the period ended 31 March 2020, the Company and its affiliates have not repurchased shares of Coal Energy S.A.

5. Internal control.

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

• Our internal control over financial reporting includes those policies and procedures that:
  • pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Group;
  • provide reasonable assurance that transactions are recorded, as necessary, to permit preparation of financial statements in accordance with IFRS;
  • provide reasonable assurance that receipts and expenditures of the Group are made in accordance with authorizations of Group's management and directors; and
  • provide reasonable assurance that unauthorized acquisition, use or disposition of Group's assets that could have a material effect on the financial statements would be prevented or detected on a timely basis.

Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

6. Risk Management.

The Group has implemented policies and procedures to manage and monitor financial market risks. Financial market activities are overseen by the CFO and the Group Management Board.

The Group does not use hedging derivatives.

On behalf of management of Coal Energy S.A.

Directors A: Directors B:

__________signed_____________ Chairman of the Board of Directors Viktor Vyshnevetskyy

__________signed_____________ Chief Operating Director Pavlo Moiseyenko

__________signed_____________ Business Development Director Oleksandr Reznyk

__________signed_____________ Independent Non-executive Director Arthur David Johnson

Luxembourg, 25 June 2021

__________signed_____________ Independent Non-executive Director Diyor Yakubov

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

				12 months ended
		9 months ended	3 months ended	30 June 2019	9 months ended	3 months ended
	Note	31 March 2020	31 March 2020	(unaudited)	31 March 2019	31 March 2019
Revenue	5	3,516	16	12,880	10,413	3,450
Cost of sales	6	(3,804)	(458)	(11,878)	(9,351)	(3,928)
GROSS PROFIT/(LOSS)		(288)	(442)	1,002	1,062	(478)
General and administrative expenses	7	(353)	(98)	(272)	(201)	(75)
Selling and distribution expenses Other operating income/(expenses), net	8 9	(53) (1,161)	(1) (1,628)	(200) 1,700	(166) 1,234	(35) 1,211
Idle capacity expenses	9.1	(1,512)	(524)	(2,620)	(2,146)	(764)
OPERATING PROFIT/(LOSS)		(3,367)	(2,693)	(390)	(217)	(141)
Other non-operating income/(expenses), net	10	(2,577)	(599)	(3,407)	(832)	506
Finance income	12	4,325	(2,536)	6,450	4,475	2,974
Finance expenses	13	(10,544)	(6,045)	(11,942)	(9,530)	(1,963)
Disposal of subsidiaries	30	38,446	-	-	-	-
PROFIT/(LOSS) BEFORE TAX		26,283	(11,873)	(9,289)	(6,104)	1,376
Income tax benefit/(expenses), net	14	897	(8)	49	(5)	(178)
NET PROFIT/(LOSS)		27,180	(11,881)	(9,240)	(6,109)	1,198
NET PROFIT/(LOSS) ATTRIBUTABLE TO:
Equity holders of the parent		27,095	(11,887)	(9,179)	(5,989)	1,208
Non-controlling interests		85	6	(61)	(120)	(10)
			(11,881)
OTHER COMPREHENSIVE INCOME/(LOSS)
Disposal of subsidiaries		(2,622)	1,017	-	-	-
Effect of foreign currency translation		989	-	(2,135)	(1,340)	(2,215)
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS)		(1,633)	1,017	(2,135)	(1,340)	(2,215)
TOTAL COMPREHENSIVE INCOME/(LOSS)		25,547	(10,864)	(11,375)	(7,449)	(1,017)
TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO:
Equity holders of the parent		25,550	(10,862)	(11,310)	(7,372)	(989)
Non-controlling interests		(3)	(2)	(65)	(77)	(28)
EARNINGS PER SHARE
Weighted average number of ordinary shares		45,011,120	45,011,120	45,011,120	45,011,120	45,011,120
BASIC PROFIT/(LOSS) PER ORDINARY SHARE (USD cents)*		60.20	(26.41)	(20.39)	(13.31)	(2.68)

*Basic earnings per ordinary share are equal to diluted earnings per ordinary share.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at 31 March	As at 30 June	As at 31 March
	Note	2020	2019 (unaudited)	2019
ASSETS
Non-current assets
Property, plant and equipment	15	24,777	29,246	31,439
Intangible assets	16	537	813	855
Right-of-use assets	25	3,506	3,760	-
Financial assets	17	43,892	20	14
Deferred tax assets	14	2,329	1,553	1,444
		75,041	35,392	33,752
Current assets
Inventories	18	22,704	27,829	26,215
Trade and other receivables	19	19,735	19,724	19,512
Prepayments made and prepaid expenses	20	2,921	2,949	2,881
Other taxes receivables	21	327	139	54
Cash and cash equivalents	22	15	7	7
		45,702	50,648	48,669
TOTAL ASSETS		120,743	86,040	82,421
EQUITY
Share capital	23	450	450	450
Share premium		77,578	77,578	77,578
Retained earnings		(51,422)	(78,185)	(74,995)
Currency translation reserve		(73,608)	(72,063)	(71,315)
Equity attributable to equity holders of the parent		(47,002)	(72,220)	(68,282)
Non-controlling interest		(893)	(1,222)	(1,234)
TOTAL EQUITY		(47,895)	(73,442)	(69,516)
LIABILITIES
Non-current liabilities
Loans and borrowings	24	-	-	-
Lease liabilities	25	3,251	3,487	3,348
Defined benefit obligation		8,532	9,249	8,915
Provisions	26	2,532	2,633	2,486
Deferred tax liabilities	14	10	136	133
		14,325	15,505	14,882
Current liabilities
Loans and borrowings	24	61,171	70,156	69,992
Lease liabilities	25	255	281	270
Trade and other payables	27	89,215	65,635	59,166
Income tax payables		1,484	1,491	1,477
Provisions	26	1,808	1,940	1,863
Other tax payables	21	380	4,474	4,287
		154,313	143,977	137,055
TOTAL LIABILITIES		168,638	159,482	151,937
TOTAL EQUITY AND LIABILITIES		120,743	86,040	82,421

Notes on pages 9 to 27 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Equity attributable to equity holders of the parent
	Share capital	Share premium	Retained earnings	Currency translation reserve	Total	NCI	Total equity
As at 30 June 2018	450	77,578	(69,006)	(69,932)	(60,910)	(1,157)	(62,067)
Profit/(loss) for the year	-	-	(9,179)	-	(9,179)	(61)	(9,240)
Other comprehensive income/(loss)	-	-	-	(2,131)	(2,131)	(4)	(2,135)
As at 30 June 2019	450	77,578	(78,185)	(72,063)	(72,220)	(1,222)	(73,442)
Profit/(loss) for the year	-	-	27,095	-	27,095	85	27,180
Other comprehensive income/(loss)	-	-	-	(2,534)	(2,534)	(88)	(2,622)
Disposal of subsidiary effect	-	-	(332)	989	657	332	989
As at 31 March 2020	450	77,578	(51,422)	(73,608)	(47,002)	(893)	(47,895)

CONSOLIDATED STATEMENT OF CASH FLOWS

	Note	9 months ended 31 March 2020	12 months ended 30 June 2019 (unaudited)	9 months ended 31 March 2019
OPERATING ACTIVITIES
Profit/(loss) before tax		26,283	(9,289)	(6,104)
Adjustments on:
Depreciation and amortization expenses	11	2,199	2,934	2,253
Finance income	12	(4,325)	(6,450)	(4,475)
Finance costs	13	10,544	11,942	9,530
Disposal of subsidiaries	30	(38,446)	-	-
Expenses for doubtful debts/(Recovery of doubtful debts)	9,10	1,183	(59)	-
Writing-off of non-current assets	10	-	508	508
Writing-off of current liabilities	10	-	-	-
Movements in defined benefits plan obligations		-	(1,432)	(3,211)
Return/(Income) of/from current assets received free of charge		-	(3)	(3)
(Profit)/Loss from exchange differences	9	(33)	(308)	(149)
		(2,595)	(2,157)	(1,651)
Changes in working capital:
Change in trade and other receivables		(45)	1,731	(789)
Change in prepayments made and prepaid expenses		(639)	(1,841)	1,716
Change in inventories		(1,700)	(3,763)	(2,432)
Change in trade and other payables		6,034	6,791	3,379
Change in tax balances		(967)	(184)	88
		88	577	311
Income tax paid	14	-	-	-
NET CASH FLOW FROM OPERATING ACTIVITY		88	577	311
INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets		(81)	(407)	(312)
NET CASH FLOW FROM INVESTING ACTIVITY		(81)	(407)	(312)
FINANCING ACTIVITIES
Repayment of loans and borrowings		-	(171)	-
NET CASH FLOW FROM FINANCIAL ACTIVITY		-	(171)	-
NET CASH FLOW		7	(1)	(1)
Cash and cash equivalents at the beginning of the period	23	7	8	8
Effect of translation to presentation currency		1	-	-
Cash disposed with subsidiaries		-	-	-
	23
Cash and cash equivalents at the end of the period		15	7	7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 31 MARCH 2021

1 GENERAL INFORMATION

For the purposes of theses consolidated financial statements, Coal Energy S.A. ("Parent company") and its subsidiaries have been presented as the Group as follows:

Parent company and its subsidiaries	Country of incorporation	Group shareholding, % as of
		31 March 2020	30 June 2019
Coal Energy S.A.	Luxembourg	Parent	Parent
Nertera Investments Limited	Cyprus	100,00	100,00
C.E.C. Coal Energy Cyprus Limited	Cyprus	100,00	100,00
Coal Energy Trading Limited	British Virgin Islands	100,00	100,00
Donugletekhinvest LLC	Ukraine	99,00	99,00
Nedra Donbasa LLC	Ukraine	99,00	99,00
Donprombiznes LLC	Ukraine	99,00	99,00
Ugledobycha LLC	Ukraine	99,99	99,99
Donantracit LLC	Ukraine	99,99	99,99
Tekhinovatsiya LLC	Ukraine	99,99	99,99
Eximenergo LLC	Ukraine	99,00	99,00
Antratcit LLC*	Ukraine	-	99,00
CwAL LE "Sh/U Blagoveshenskoe"	Ukraine	99,00	99,00
CwAL LE "Mine St.Matrona Moskovskaya"	Ukraine	99,00	99,00
Coal Energy Ukraine LLC	Ukraine	99,99	99,99
Progress-Vugillya LLC	Ukraine	99,99	99,99
Toretsk Coal Mining Company LLC*	Ukraine	-	100,00

The Parent company, Coal Energy S.A., was incorporated in Luxembourg as a joint stock company on 17 June 2010. The registered office is located at 205, route d`Arlon L-1150 Luxembourg and the Company number with the Registre de Commerce is B 154144. Principal activities of the Group are coal mining, coal beneficiation, waste dumps processing and sales of marketable coal. Major production facilities

are located in Donetsk region of Ukraine.

*During the year ended 30 June 2020, two subsidiaries disposed from the Group. Details of such disposals are disclosed in Note 30.

These consolidated financial statements were authorized by the Board of Directors as at 25 June 2021

2 BASIS OF PREPARATION OF THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.1 Basis of preparation

The preparation of financial statements in accordance to International Financial Accounting Standards (IFRS) as adopted by European Union requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying of the Group`s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

These consolidated financial statements are presented in thousands of USD, unless otherwise stated.

2.2 Statement of compliance

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU).

2.3 Basis of consolidation

(a) Subsidiaries

Subsidiaries are entities over which the Group has the power to govern the financial and operating policies. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued, and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The excess of the cost of acquisition over the fair value of the group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the statement of comprehensive income. Costs appeared in connection with the purchase of subsidiaries are recognized as expenses.

Intragroup transactions, balances and unrealized gains on transactions between Group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. Subsequent to the loss of control of a subsidiary the value of remained share is revalued at fair value that influences the amount of income/loss from the disposal.

2 BASIS OF PREPARATION OF THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Before June 30, 2010 the Parent company did not have direct or indirect ownership interest in consolidated entities included in the consolidated financial statements. The pooling of interest method was applied for business combinations under common control for the earlier periods.

Financial statements of Parent company and its Subsidiaries, which are used while preparing the consolidated financial statements, should be prepared as at the same date on the basis of consistent application of accounting policy for all companies of the Group.

(b) Transactions with non-controlling interests

The Group applies a policy of treating transactions with non-controlling interests as transactions with parties external to the Group. The result of disposals to non-controlling interests being the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary are reflected in statements of changes in equity. Losses are attributed to the non-controlling interests even if that results in a deficit balance.

Non-controlling interests are derecognized when purchased, a subsidiary sold or liquidated and profit or loss on de-recognition is recorded in the consolidated statements of changes in equity.

2.4 Changes in accounting policy and disclosures

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

The Group has not applied the following standards and IFRIC interpretations and amendments to them that have been issued but are not yet effective:

IFRS 17 – Insurance Contracts – standard establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard (effective from 1 January 2021);

IFRS 10 (Amendments) and IAS 28 (Amendments) ''Sale or Contribution of Assets between an Investor and its Associate or Joint Venture'' (effective date postponed indefinitely).

The Group anticipates that the adoption of these standards and amendments in future periods will have no material impact on its financial statements. The Group currently does not plan early application of the above standards and interpretations.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Currency translation

(a) Functional and presentation currency

All items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entities operate (the "functional currency"). The national currency of Ukraine, Ukrainian Hryvnia ("UAH") is the functional currency for the Group's entities that operate in Ukraine. For the entities that operate in Cyprus, Luxembourg and British Virgin Islands (BVI) the functional currency is US dollar ("USD"). These consolidated financial statements are presented in thousands of US dollars, unless otherwise stated.

(b) Foreign currency transactions

Exchange rates used in the preparation of these in interim consolidated financial statements were as follows:

Date/period	UAH/USD
As of:
- 31 March 2020	28.0615
- 30 June 2019	26.1664
- 31 March 2019	27.2488
Average for the:
- three months ended 31 March 2020	25.0525
- three months ended 31 December 2019	24.2606
- three months ended 30 September 2019	25.2613

(c) Translation into presentation currency

• all assets and liabilities, both monetary and non-monetary, are converted at closing exchange rates at the dates of each statements of financial position presented;

• income and expense items are converted at the average exchange rates for the period, unless exchange rates fluctuate significantly during the period, in which case exchange rates at the date of transactions are used;

• all equity items are converted at the historical exchange rates;

• all resulting exchange differences are recognized as a separate component in other comprehensive income;

• in the consolidated statements of cash flows, cash balances and beginning and end of each period presented are converted at exchange rates at the respective dates. All cash flows are converted at the average exchange rates for the periods presented. Resulting exchange differences are presented as effect of conversion to presentation currency.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.2 Revenue from contracts with customers

The Group mines and sells coal commodities. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

Revenue from rendering services is recognized based on the stage of work completion under each contract. When financial result can be measured reliably, revenue is recognized only to the extent of the amount of incurred charges, which can be recovered.

3.3 Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax.

Income tax is recognized as an expense or income in profit and loss in the consolidated statements of comprehensive income, except when it relates to items recognized directly in other comprehensive income, or where they arise from the initial accounting for a business combination.

(a) Current tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to estimate the amount are those that are enacted or substantively enacted, by the reporting date, in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

• where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

• in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:

• where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

• in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.4 Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statements of comprehensive income during the financial period in which they are incurred. Major renewals and improvements are capitalized, and the assets replaced are retired. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in item 'Other non-operating income (expenses)' in the statement of comprehensive income.

Depreciation is calculated using the straight-line method over their estimated useful lives, as follows:

Underground mining	40 - 80 years
Buildings and constructions	35 - 50 years
Machinery, equipment and vehicles	5 - 10 years
Other	3 - 5 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each financial year end.

Mine development costs are capitalized and classified as capital construction-in-progress. Mine development costs are transferred to mining assets when a new mine reaches commercial production quantities. Capital construction-in-progress comprises costs directly related to construction of buildings, infrastructure, machinery and equipment. Cost also includes finance charges capitalized during construction period where such costs are financed by borrowings. Depreciation of these assets commences when the assets are put into operation.

3.5 Lease

All leases are accounted for by recognizing a right-of-use asset and a lease liability except for:

– Leases of low-value assets;

– Leases with a duration of twelve months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Group's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

On initial recognition, the carrying value of the lease liability also includes:

• Amounts expected to be payable under any residual value guarantee;
• The exercise price of any purchase option granted in favor of the Group if it is reasonable certain to assess that option;
• Any penalties payable for terminating the lease, if the term of the lease has been estimated based on termination option being exercised.

Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

• Lease payments made at or before commencement of the lease;
• Initial direct costs incurred;
• The amount of any provision recognized where the Group is contractually required to dismantle, remove or restore the leased asset.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

When the Group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted at the same discount rate that applied on lease commencement. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised. In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortized over the remaining (revised) lease term.

3.6 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.7 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss in the period in which the expenditure is incurred. Research costs are recognized as an expense as incurred. Costs incurred on development (relating to the design, construction and testing of new or improved devices, products, processes or systems) are recognized as intangible assets only when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of adequate resources to complete the development, and the ability to measure reliably the expenditure during the development. Other development expenditures are recognized as an expense as incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Amortization is charged on a straight-line basis over the following economic useful lives of these assets:

Licenses, special permissions and patent rights	5 - 20 years
Other intangible assets	5 - 10 years

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash generating unit level.

3.8 Impairment of non-current assets

The carrying amounts of the Group's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less cost to sell and value-in-use.

An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognized in the consolidated statements of comprehensive income.

Where an impairment loss subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the original carrying amount that would have been determined had no impairment loss been recognized in prior periods. A reversal of an impairment loss is recognized in the consolidated statements of the comprehensive income.

3.9 Financial assets

Initial recognition and measurement

The Group classifies its financial assets as financial assets at fair value through profit or loss; loans and receivables; held-to-maturity investments; available for-sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition and re-evaluates this designation at every reporting date. The Group's financial assets include cash and short-term deposits, trade and other receivables, loan and other receivables. All financial assets are recognized initially at fair value plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

Subsequent measurement

The subsequent measurement of financial assets depends on their classification as follows:

(a) Financial assets at fair value through profit or loss. This category includes financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

(b) Loans and receivables. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables include trade and other receivables. Loans are financial assets arising as a result of provision of funds to borrower.

(c) Held-to-maturity investments. Investments with fixed or determinable payments and fixed maturity that management has the positive intent and ability to hold to maturity, other than loans and receivables originated by the Group, are classified as held-to-maturity investments. Such investments are included in non-current assets, except for maturities within twelve months from the reporting date, which are classified as current assets.

(d) Available-for-sale financial assets. Investments intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, are classified as available-for-sale; these are included in non-current assets unless management has the express intention of holding the investment for less than 12 months from the reporting date or unless they will need to be sold to raise operating capital, in which case they are included in current assets. Available-for-sale financial assets are accounted at fair value through equity.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Subsequent to initial recognition all financial assets at fair value through profit or loss and all available-for-sale instruments are measured at fair value, except that any instrument that does not have a quoted market price in an active market and whose fair value cannot be reliably measured is stated at cost, including transaction costs, less impairment losses.

Loans and receivables and held-to-maturity assets are measured at amortized cost less impairment losses. Amortized cost is calculated using the effective interest rate method. Premiums and discounts, including initial transaction costs, are included in the carrying amount of the related instrument and amortized based on the effective interest rate of the instrument.

Receivables are accounted at net realizable value, less the allowance for doubtful debts. The amount of allowance for doubtful debts is accounted by using the method of total amount of doubtful debts.

Impairment of financial assets

The Group assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred 'loss event') and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortized cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of receivables, loans issued where the carrying amount is reduced through the use of an allowance for impairment. When a trade or other or loans issued receivables is considered uncollectible, it is written off against the allowance. On basis of the facts confirming that receivables or loans issued, previously recognized as doubtful, at the reporting date are not doubtful, the amount of previously charged reserve is reflected in income of the reporting period. Except for available-for-sale assets, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss reverses directly through profit and loss account. The reversal shall not result in a carrying amount of the financial asset that exceeds what the amortized cost would have been had the impairment not been recognized at the date the impairment is reversed.

When a decline in fair value of an available-for-sale investment has been recognized directly in other comprehensive income and there is objective evidence that investment is impaired, the cumulative loss that had been recognized directly in other comprehensive income is removed from other comprehensive income and recognized in profit or loss in the consolidated statements of comprehensive income even though the investment has not been derecognized. Impairment losses previously recognized through profit or loss in the consolidated statements of comprehensive income are not reversed. Any increase in fair value subsequent to an impairment loss is recognized directly in other comprehensive income.

Derecognition of financial assets

The Group derecognizes financial assets when:

• the assets are redeemed or the rights to cash flows from the assets have otherwise expired;

• or the Group has transferred substantially all the risks and rewards of ownership of the assets;

• or the Group has neither transferred not retained substantially all risks and rewards of ownership but has not retained control. Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to an unrelated third party without needing to impose additional restrictions on the sale.

3.10 Financial liabilities

Initial recognition and measurement

The Group classifies its contractual obligations as financial liabilities at fair value through profit or loss, loans and borrowings. The Group classifies its financial liabilities at initial recognition. Financial liabilities, including borrowings, are initially measured at fair value, net of transaction cost. The Group's financial liabilities include trade and other payables, bank overdraft, loans and borrowings.

Subsequent measurement

The subsequent measurement of financial liabilities depends on their classification as follows:

(a) Financial liabilities at fair value through profit or loss. Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those designated at initial recognition as liabilities at fair value through profit or loss;

(b) Loans and borrowings. Loans and borrowings are financial liabilities which the Group has after borrowings attraction. Loans and borrowings are classified as current liabilities except when the Group has unconditional right to delay settlement of obligation at least for 12 months.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized through profit or loss.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.11 Inventories

Inventories are recorded at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories is assigned by using the FIFO cost formula.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of work in progress and finished goods includes costs of raw materials, direct labor and other direct productions costs and related production overheads (based on normal operating capacity).

The Group periodically analyses inventories to determine whether they are damaged, obsolete or slow-moving or if their net realizable value has declined and makes an allowance for such inventories. If such situation occurred, the sum remissive the cost of inventories should be reflected in statements of comprehensive income. If the circumstances that caused the write-down no longer exist, the amount of the write-down is reversed.

At the date of financial statements preparation, the Group estimates the balances of finished products to determine whether there is any evidence of impairment. Amount of impairment is measured based on the analysis of prices in the market of such inventories, existed at the reporting date and issued in official sources.

3.12 Value added tax

Value added tax (VAT) output equals the total amount of VAT collected within a reporting period and arises on the earlier of the date of shipping goods to a customer or the date of receiving payment from the customer. VAT input is the amount that a taxpayer is entitled to offset against his VAT liability in a reporting period. Rights to VAT input arise on the earlier of the date of payment to the supplier or the date goods are received. Revenue, expenses and assets are recognized less VAT amount, except cases, when VAT arising on purchases of assets or services, is not recoverable by tax authority; in this case VAT is recognized as part of purchase costs or part of item of expenses respectively. Net amount of VAT, recoverable by tax authority or paid, is included into accounts receivable and payable, reflected in consolidated statements of financial position.

3.13 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of six months or less.

For the purpose of the consolidated statements of cash flows, cash and cash equivalents comprise cash and short-term deposits as defined above, net of outstanding bank overdrafts.

3.14 Share capital

Ordinary shares are classified as equity. Nominal value of share capital of Parent company is specified in Note 24.

3.15 Legal reserve

Luxembourg companies are required to allocate to a legal reserve a minimum of 5% of the annual net income, until this reserve equals 10% of the subscribed share capital. This reserve may not be distributed.

3.16 Defined benefits plan obligations

The Group contributes to the Ukrainian state pension scheme, social insurance and employment funds in respect of its employees. The Group's pension scheme contributions are expensed as incurred. The contributions are included in expenses for wages and salaries. Companies comprising the Group provide additional post-employment benefits to those employees who are engaged in the industry with particularly detrimental and oppressive conditions of work. Under the Ukrainian legislation employees engaged in hazardous industry may retire earlier than usual terms stipulated by Employee Retirement Income Security Law. The Group reimburses to the State Pension Fund all pension payments which are to be paid to the employees until usual statutory date of retirement. In addition, according to the legislation, the Group makes payments related to providing the employees with domestic fuel (coal). The Group recognizes the liabilities in amount of this payment.

The liability recognized in the statement of financial position in respect of post-employment benefits is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses. The cost of providing benefits under the defined benefit plans is determined using the projected unit credit method. Actuarial gains and losses are recognized in the other comprehensive income statements in the period in which they occur.

3.17 Provisions

Provisions are recognized when the Group has legal or constructive obligations as the result of past event for which it is probable that an outflow of economic benefits can be required to settle the obligations, and the amount of the obligations can be reliably estimated. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the statement of financial position date, considering the risks and uncertainties surrounding obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, it's carrying amount is the present value of those cash flows. Use of discounting results in recognition of financial expenses and increase in provision.

Management created provision for the payment of potential tax liabilities related to settlement of financial assets and liabilities. Though if the controlling authorities classify such transactions as a subject of taxation and apply such classification to the companies of the Group, actual taxes and penalties may differ from the Management assessment.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.18 Environmental obligations

Environmental obligations include decommissioning and land restoration costs. The Group evaluates the provisions associated with ecological problems separately on every occasion taking into account the requirements of the relevant legislative acts.

Future decommissioning costs, discounted to net present value, are capitalized and the corresponding decommissioning obligations are raised as soon as the constructive obligation to incur such costs arises and the future decommissioning cost can be reliably estimated. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the asset.

The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized in the comprehensive income statement as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset. The amount deducted from the cost of the asset shall not exceed it's carrying amount. If a decrease in the liability exceeds the carrying amount of the asset, the excess shall be recognized immediately in profit or loss.

Provision for land restoration, representing the cost of restoring land damage after the commencement of commercial production, is estimated at net present value of the expenditures expected to settle the obligation. Change in provision and unwinding of discount on land restoration are recognized in the consolidated statements of comprehensive income. Ongoing rehabilitation costs are expensed when incurred.

3.19 Financial guarantee contracts

Management on annual basis assesses probability of risks that can be arising in relation of financial guarantee contracts through financial analysis of counterparties. If the risk is significant – financial guarantee contracts must be recognized as liabilities in notes to consolidated financial statements in accordance with IAS 37. Otherwise – if risk is insignificant – financial guarantee contracts liabilities must be disclosed as off-balance sheet liabilities.

4 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES

The preparation of the Group's consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

In the process of applying the Group's accounting policies, management has made the following judgments, estimates and assumptions, which have the most significant effect on the amounts recognized in these consolidated financial statements:

Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recognized in the statements of financial position cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the recognized fair value of financial instruments.

Remaining useful life of property, plant and equipment

Management assesses the remaining useful life of property, plant and equipment in accordance with the current technical conditions of assets and estimated period when these assets bring economic benefit to the Group.

Impairment of non-current assets

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm's length transaction of similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The recoverable amount is most sensitive to the growth rate used for extrapolation purposes (coal price, sales volume) and to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Defined benefits plan obligations

For the purpose of estimation of defined benefit obligation, the projected unit credit method was used, which includes the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the interest rates of high-quality government bonds with extrapolated maturities corresponding to the expected duration of the defined benefit obligation. Future salary increases and pension increases are based on expected future inflation rates.

4 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES (CONTINUED)

Environmental obligations

The Group's mining and processing activities are susceptible to various environmental laws and regulations changes. The Group estimates environmental obligations based on management's understanding of the current legal requirements, terms of the license agreements and internally generated estimates. Provision is made, based on net present values, for decommissioning and land restoration costs as soon as the obligation arises. Actual costs incurred in future periods could differ materially from the amounts provided. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this provision.

Income taxes

The Group is subject to income taxes in numerous jurisdictions. Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. The differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Group company's domicile.

Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. If actual results differ from these estimates or if these estimates must be adjusted in future periods, the financial position and results of operations may be negatively affected.

Idle capacity expenses

Due to volatility of the coal market production capacity of the Group's individual Companies in some periods could be operated not according to its normal capacity of the production facilities. In the case of significant deviation of the actual capacity from the normal capacity, part of the fixed production overheads is reflected in item "Idle capacity expenses".

Management of the Group uses estimations and judgments to determine the following items: normal capacity of the individual companies, the period of the partial exploitation of the production capacity, amount of overheads that should be allocated.

Expected credit losses measurement

Measurement of expected credit losses (ECL) is a significant estimate that involves determination methodology, models and data inputs. The Group regularly reviews and validates the models and inputs to the models to reduce any differences between expected credit loss estimates and actual credit loss experience.

Legal proceedings

The Group's management applies significant assumptions in measurement and reflection of reserves and risks of exposure to contingent liabilities, related to existing legal proceedings and other unsettled claims, and also other contingent liabilities. Management's judgment is required in estimating the probability of a secured claim against the Group or incurring material liabilities, and in determining feasible amount of the final settlement or liabilities. Due to uncertainty inherent to the process of estimation, actual expenses may differ from the initial estimates. Such preliminary estimates may alter as far as new information is received, from internal specialists within the Group, if any, or from third parties, such as lawyers. Revision of such estimates may have significant effect on the future results of operating activity.

Contingent liabilities

Contingent liabilities are determined by the occurrence or non-occurrence of one or more future events. Measurement of contingent liabilities is tightly connected with development of significant judgments and estimates relating to the consequences of such future events.

5 INFORMATION ON OPERATIONAL SEGMENTS

The group defines the following business segments that include goods and services distinguished by the level of risk and terms of acquisition of income:

mineral resource and processing industry — includes income from sale of own coal products and income from coal beneficiation;

trade activity - includes income from sale of merchandises;

other activity - includes income from rendering of other works and services.

Management controls the results of operating segments separately for the purpose of decision making about allocation of resources and performance measurement. The results of segments are estimated on profit/(loss) before tax.

Information about the segments of business for the nine months ended 31 March 2020:

	Business segments
	Mineral resource and processing industry	Trade activity	Other activity	Assets and liabilities not included in segments	Total
Revenue
Sales to external customers	3,472	-	44	-	3 516
Profit/(Loss) before tax of the segment	(12,163)	-	38,446	-	26,283
Depreciation and amortization expenses	(2,199)	-	-	-	(2,199)
Defined benefits plan obligations expenses	-	-	-	-	-
Operational assets	25,068	2,820	46,292	46,563	120,743
Operational liabilities	98,408	5,529	62,837	1,864	168,638
Disclosure of other information
Capital expenditures	2,034	-	-	-	2,034

As at 31 March 2021 assets of segments do not include financial assets (USD 46,216 thousand), cash (USD 15 thousand), other taxes receivable (USD 327 thousand), as well as deferred tax assets (USD 2,329 thousand), since management of these assets is carried out at the Group level.

As at 31 March 2021 liabilities of segments do not include other taxes payable (USD 380 thousand), income tax payables (USD 1,484 thousand), since management of these liabilities is carried out at the Group level.

Information about the segments of business for the three months ended 31 March 2020:

	Business segments
	Mineral resource and processing industry	Trade activity	Other activity	Assets and liabilities not included in segments	Total
Revenue
Sales to external customers	7	-	9	-	16
Profit/(Loss) before tax of the segment	(11,873)	-	-	-	(11,873)
Depreciation and amortization expenses Defined benefits plan obligations expenses	(746) -	- -	- -	- -	(746) -
Operational assets	25,068	2,820	46,292	46,563	120,743
Operational liabilities	98,408	5,529	62,837	1,864	168,638
Disclosure of other information
Capital expenditures	629	-	-	-	629

5 INFORMATION ON OPERATIONAL SEGMENTS (CONTINUED)

Information about the segments of business for the nine months ended 31 March 2019:

	Business segments
	Mineral resource and processing industry	Trade activity	Other activity	Assets and liabilities not included in segments	Total
Revenue
Sales to external customers	9,136	1,200	77	-	10,413
Profit/(Loss) before tax of the segment	(6,450)	269	77	-	(6,104)
Depreciation and amortization expenses	(2,253)	-	-	-	(2,253)
Defined benefits plan obligations expenses	3,211	-	-	-	3,211
Operational assets	79,740	1,042	120	1,519	82,421
Operational liabilities	(142,711)	(1,284)	(182)	(7,760)	(151,937)
Disclosure of other information
Capital expenditures	1,545	-	6	-	1,551

As at 31 March 2019 assets of segments do not include financial assets (USD 14 thousand), cash (USD 7 thousand), other taxes receivable (USD 54 thousand), as well as deferred tax assets (USD 1,444 thousand), since management of these assets is carried out at the Group's level.

As at 31 March 2019 liabilities of segments do not include deferred tax liabilities (USD 133 thousand), other taxes payable (USD 4,287 thousand), income tax payables (USD 1,477 thousand), provision on tax liabilities (USD 1,863 thousand), since management of these liabilities is carried out at the Group's level.

Information about the segments of business for the three months ended 31 March 2019:

	Business segments
	Mineral resource and processing industry	Trade activity	Other activity		Assets and liabilities not included in segments	Total
Revenue Sales to external customers	3,445	-		5		- 3,450
Profit/(Loss) before tax of the segment	1,371	-		5		- 1,376
Depreciation and amortization expenses Defined benefits plan obligations expenses	(961) 3,836	- -		- -		- (961) - 3,836
Operational assets	79,740	1,042		120	1,519	82,421
Operational liabilities	(142,711)	(1,284)		(182)	(7,760)	(151,937)
Disclosure of other information
Capital expenditures	603	-		6		- 609
	9 months ended 31 March 2020		3 months ended 31 March 2020		9 months ended 31 March 2019	3 months ended 31 March 2019
Revenue received from sale of finished goods		3,472	7		9,146	3,455
Revenue from trading activity		-	-		1,200	-
Revenue from other activity		44 3,516	9 16		67 10,413	5 3,450

During the reviewed periods sales were performed on the territory of Ukraine exclusively.

All non-current assets of the Group are located in Ukraine.

6 COST OF SALES

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Raw materials	(931)	(4)	(3,253)	(2,249)
Cost of merchandising inventory	(157)	(22)	(931)	-
Wages and salaries of operating personnel	(349)	(70)	(782)	(152)
Depreciation and amortization expenses	(769)	(299)	(543)	(194)
Subcontractors services	(1,445)	(8)	(2,495)	(750)
Energy supply	(162)	(100)	(1,156)	(507)
Change in finished goods	187	49	208	164
Other expenses	(178)	(4)	(399)	(240)
	(3,804)	(458)	(9,351)	(3,928)

7 GENERAL AND ADMINISTRATIVE EXPENSES

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Subcontractors services	(92)	(30)	(116)	(51)
Wages and salaries of administrative personnel	(44)	(13)	(57)	(16)
Depreciation and amortization expenses	(35)	(7)	(21)	(7)
Bank services	(1)	-	(3)	-
Taxes	(142)	-	-	-
Other expenses	(39)	(48)	(4)	(1)
	(353)	(98)	(201)	(75)

8 SELLING AND DISTRIBUTION EXPENSES

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Delivery costs	(49)	(1)	(161)	(33)
Subcontractors services	(3)	-	(3)	(1)
Wages and salaries of distribution personnel	-	-	(1)	(1)
Depreciation and amortization expenses	(1)	-	(1)	-
	(53)	(1)	(166)	(35)

9 OTHER OPERATING INCOME/(EXPENSES), NET

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Doubtful debts income/(expenses)	(1,183)	(1,628)	-	-
Writing-off of VAT	(11)	-	(13)	-
Gain/(loss) from operating exchange differences	33	-	149	113
Other operating income/(expenses), net	-	-	1,098	1,098
	(1,161)	(1,628)	1,234	1,211

9.1 IDLE CAPACITY EXPENSES

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Depreciation and amortization expenses	(1,392)	(440)	(1,684)	(759)
Wages and salaries	(46)	(19)	(460)	(4)
Other expenses	(74)	(65)	(2)	(1)
	(1,512)	(524)	(2,146)	(764)

10 OTHER NON-OPERATING INCOME/(EXPENSES), NET

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Recognized penalties, fines, charges	(2,342)	(590)	(405)	1,004
Depreciation of non-operating PPE	(2)	-	(4)	(1)
Impairment of current assets	-	-	(508)	(506)
Other non-operating income	-	-	97	9
Other non-operating expenses	(233)	(9)	(12)	-
	(2,577)	(599)	(832)	506

11 DEPRECIATION AND AMORTIZATION EXPENSES

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Depreciation
Cost of sales	(739)	(279)	(531)	(189)
Idle capacity expenses	(1,191)	(379)	(1,497)	(697)
Selling and distribution expenses	(1)	-	(1)	-
General and administrative expenses	(18)	(5)	(21)	(7)
Other non-operating expenses	(2)	-	(4)	(1)
	(1,951)	(663)	(2,054)	(894)
Amortization
Cost of sales	(30)	(20)	(12)	(5)
Idle capacity expenses	(201)	(61)	(187)	(62)
General and administrative expenses	(17)	(2)	-	-
	(248)	(83)	(199)	(67)
	(2,199)	(746)	(2,253)	(961)

12 FINANCIAL INCOME

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Gain from non-operating exchange differences	3,983	(2,629)	4,335	2,971
Income from measurement of financial instruments at amortized cost	249	-	140	3
Interests received	93	93	-	-
	4,325	(2,536)	4,475	2,974

13 FINANCIAL COSTS

	9 months ended 31 March 2020	3 months ended 31 March 2020	9 months ended 31 March 2019	3 months ended 31 March 2019
Interest expenses	(4,545)	(1,515)	(4,664)	(1,203)
Loss from non-operating exchange differences	(5,922)	(4,530)	(4,672)	(695)
Loss from measurement of financial instruments at amortized cost	(77)	-	(194)	(65)
	(10,544)	(6,045)	(9,530)	(1,963)

14 INCOME TAX EXPENSES

	9 months ended	3 months ended	9 months ended	3 months ended
	31 March 2020	31 March 2020	31 March 2019	31 March 2019
Current income tax	-	-	(6)	(3)
Deferred tax	897	(8)	1	(175)
Income tax benefit/(expenses)	897	(8)	(5)	(178)
At the beginning of the period	(1,491)	(1,593)	(1,762)	(1,727)
Current income tax charge	-	-	(6)	(3)
Income tax paid	-	-	-	-
Effect of translation to presentation currency	7	109	291	253
At the end of the period	(1,484)	(1,484)	(1,477)	(1,477)
Income tax reconciliation
Profit/(loss) before tax	26,283	(11,873)	(6,104)	1,376
Income tax (18%)	(4,731)	2,137	1,099	(248)
Effect of different statutory tax rates of overseas jurisdictions	360	145	95	27
Tax effect of permanent differences	5,268	(2,290)	(1,199)	43
Income tax income/(expenses)	897	(8)	(5)	(178)

According to the Tax Code of Ukraine effective from 1 January 2014, corporate income tax rate is 18%.

Deferred tax assets and liabilities are measured at the corporate income tax rates, which are expected to be applied in the periods when an asset is realized, or liability is calculated in accordance with the tax rates provided by the Tax Code of Ukraine.

14 INCOME TAX EXPENSES (CONTINUED)

	30 June 2019	Recognized in profit/(loss)	Currency translation effect	31 March 2020
Deferred tax assets
Property, plant and equipment, intangible assets	280	(52)	13	241
Inventories	19	101	(57)	63
Provisions	474	46	(53)	467
Defined benefit plan obligations	1,665	(72)	(57)	1,536
Charged vacation expenses	32	(12)	5	25
Folded on individual Companies level	(917)	755	159	(3)
	1,553	766	10	2,329
Property, plant and equipment, intangible assets	(1,053)	886	154	(13)
Folded on individual Companies level	917	(755)	(159)	3
	(136)	131	(5)	(10)
Net deferred tax asset/(liability)	1,417	897	(5)	2,319

		Recognized in	Currency
	30 June 2018	profit/(loss)	translation effect	30 June 2019
Effect of temporary differences on deferred tax assets
Property, plant and equipment, intangible assets	233	94	(47)	280
Inventories	53	(68)	34	19
Provisions	429	90	(45)	474
Defined benefit plan obligations	1,922	(516)	259	1,665
Charged vacation expenses	19	26	(13)	32
Folded on individual Companies' level	(923)	13	(7)	(917)
Total deferred tax assets	1,733	(362)	182	1,553
Effect of temporary differences on deferred tax liabilities
Property, plant and equipment, intangible assets	(1,297)	489	(245)	(1,053)
Folded on individual Companies' level	923	(13)	7	917
Total deferred tax liabilities	(374)	476	(238)	(136)
Net deferred tax asset/(liability)	1,359	115	(57)	1,417

15 PROPERTY, PLANT AND EQUIPMENT

Historical cost	Underground mining	Buildings and constructions	Machinery, equipment and vehicles	Other	Construction in progress	Total
as at 30 June 2018	35,976	9,389	11,225	573	789	57,952
Additions	1,466	56	185	9	700	2,416
Disposals	(644)	-	(90)	(40)	(233)	(1,007)
Reclassification to Right-of-use assets	(3,760)	-	-	-	-	(3,760)
Effect of translation to presentation currency	315	10	9	-	4	(338)
as at 30 June 2019	33,353	9,455	11,329	542	1,260	55,939
Additions	1,074	306	654	-	-	2,034
Disposals	-	(2,709)	(1,101)	(23)	(1,034)	(4,867)
Effect of translation to presentation currency	(3,008)	(304)	(690)	(34)	38	(3,998)
as at 31 March 2020	31,419	6,748	10,192	485	264	49,108
Accumulated depreciation
as at 30 June 2018	(10,001)	(3,587)	(10,067)	(523)	-	(24,178)
Depreciation for the period	(1,488)	(699)	(440)	(31)	-	(2,658)
Disposals	139	-	85	40	-	264
Effect of translation to presentation currency	(64)	(32)	(25)	-	-	(121)
as at 30 June 2019	(11,414)	(4,318)	(10,447)	(514)	-	(26,693)
Depreciation for the period	(1,327)	(361)	(252)	(11)	-	(1,951)
Disposals	-	1,514	1,091	23	-	2,628
Effect of translation to presentation currency	934	127	591	33	-	1,685
as at 31 March 2020	(11,807)	(3,038)	(9,017)	(469)	-	(24,331)
Net book value
as at 30 June 2018	25,975	5,802	1,158	50	789	33,774
as at 30 June 2019	21,939	5,137	882	28	1,260	29,246
as at 31 March 2020	19,612	3,710	1,175	16	264	24,777

15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

As at 31 March 2020, property, plant and equipment were pledged under loans and borrowings amounted USD 5 822 (As at 30 June 2019 – USD 5,979 thousand). During the reporting period, there were no capitalized borrowing costs. During the reporting period, there were no capitalized research and development costs. The Group's mining activity currently relates to exploitation of the existing mines and mined beds. As at 31 March 2020 and 30 June 2019, contractual commitments for property, plant and equipment of the Group were immaterial.

As at the date of publication of these financial statements, the Group`s management has no possibility to estimate impact of military conflict on impairment of property, plant and equipment considering uncertainties of their future economic benefits.

16 INTANGIBLE ASSETS

Historical cost	Licenses, special permissions and patent rights	Other intangible assets	Other projects and permissions	Total
as at 30 June 2018	3,291	16	34	3,341
Effect of translation to presentation currency	5	-	-	5
as at 30 June 2019	3,296	16	34	3,346
Effect of translation to presentation currency	(223)	(1)	(3)	(227)
as at 31 March 2020	3,073	15	31	3,119
Accumulated depreciation
as at 30 June 2018	(2,200)	(15)	(30)	(2,245)
Amortization charge for the period	(282)	-	(2)	(284)
Effect of translation to presentation currency	(13)	(1)	-	(14)
as at 30 June 2019	(2,495)	(16)	(32)	(2,543)
Amortization charge for the period	(248)	-	-	(248)
Effect of translation to presentation currency	206	1	2	209
as at 31 March 2020	(2,537)	(15)	(30)	(2,582)
Net book value
as at 30 June 2018	1,091	1	4	1,096
as at 30 June 2019	811	-	2	813
as at 31 March 2020	536	-	1	537

Licenses, special permissions and patent rights included following special permissions for subsurface use:

-special permissions for subsurface use # 5098 as of 30 December 2009 issued by Ministry of ecology and natural resources of Ukraine for 20 years. Net book value of this permission as 31 March 2020 amounted USD 156 thousand (30 June 2019: USD 161 thousand);

-special permissions for subsurface use # 4782 as of 18 November 2008 issued by Ministry of ecology and natural resources of Ukraine for 13 years. Net book value of this permission as at 31 March 2020 amounted USD 211 thousand (30 June 2019: USD 288 thousand);

• special permissions for subsurface use # 9754 as of 27 December 2011 issued by Ministry of ecology and natural resources of Ukraine for 20 years. Net book value of this permission as at 31 March 2020 amounted USD 124 thousand (30 June 2019: USD 126 thousand);

-special permissions for subsurface use # 4820 as of 16 December 2008 issued by Ministry of ecology and natural resources of Ukraine for 12 years. Net book value of this permission as of 31 March 2020 amounted USD 68 thousand (30 June 2019: USD 162 thousand);

As at 31 March 2020 and 30 June 2019, there were no pledged intangible assets. As at 31 March 2020 and 30 June 2019, there were no contractual commitments for intangible assets of the Group.

17 FINANCIAL ASSETS

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Non-current financial assets
Held-to-maturity investments	5	20	9
Loans issued	43,887	-	-
	43,892	20	9
Current financial assets
Loans issued	4,778	5,124	5,051
Allowance for loans issued	(4,778)	(5,124)	(5,051)
	-	-	-

18 INVENTORIES

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Merchandise	10,126	10,919	10,491
Finished goods	1,803	2,756	2,739
Raw materials	8,804	11,209	10,120
Spare parts	1,802	2,487	2,423
Goods on commission	150	438	420
Other inventories	19	20	22
	22,704	27,829	26,215

As at 31 March 2020, inventories were pledged under loan agreements amounted USD 5,500 thousand (as at 30 June 2019 – USD 5,500 thousand).

As at the date of publication of these financial statements, the Group`s management has no possibility to assess inventory damage, theft probability and to estimate impact of military conflict on impairment of inventories.

19 TRADE AND OTHER RECEIVABLES

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Trade receivables	11,320	14,250	14,133
Allowance for trade receivables	(3,326)	(3,895)	(3,798)
Receivables under factoring contracts	466	1,475	1,416
Other receivables	11,231	7,848	7,717
Allowance for other receivables	-	(1)	(1)
Receivables on sale of property, plant and equipment	44	47	45
Allowance for receivables on sale of property, plant and equipment	-	-	-
	19,735	19,724	19,512

As at 31 March 2021, trade receivables were pledged under loans amounted USD 4,637 thousand (As at 30 June 2019 – USD 4,637 thousand).

20 PREPAYMENTS AND PREPAID EXPENSES

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Prepayments made and prepaid expenses	3,580	3,656	3,560
Allowance for prepayments made	(659)	(707)	(679)
	2,921	2,949	2,881
21 TAXES RECEIVABLE AND PAYABLE

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Current taxes receivable
VAT recoverable	327	139	-
Prepayments for other taxes	-	-	54
	327	139	54
Current taxes payable
Payable for wages and salaries related taxes	1,162	2,964	2,776
VAT payable	(1,354)	600	683
Payables for other taxes	572	910	828
	380	4,474	4,287

22 CASH AND CASH EQUIVALENTS

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Cash in bank	14	7	6
Cash in hand	1	-	1
	15	7	7

23 SHARE CAPITAL

		As at 31 March 2020		As at 30 June 2019		As at 31 March 2019
	%	Amount	%	Amount	%	Amount
Lycaste Holding Limited*	75	338	75	338	75	338
Free float	25	112	25	112	25	112
	100	450	100	450	100	450

* - according to the pledge agreement signed as at 11 February 2013 between Lycaste Holding Limited, European Bank for Reconstruction and Development and Coal Energy S.A. 6747167 shares owned by Lycaste Holding Limited are pledged.

During the nine months ended 31 March 2021, quantity of shares did not change.

24 LOANS AND BORROWINGS

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Non-current loans and borrowings
Loans received	35,000	35,000	35,000
	35,000	35,000	35,000
Deducting current portion of long-term borrowings:
Current portion of long-term loans and borrowings	(35,000)	(35,000)	(35,000)
Total non-current loans and borrowings	-	-	-
Current loans and borrowings
Bank loans	25,748	33,882	33,742
Current portion of long-term loans and borrowings	35,000	35,000	35,000
Current payables under factoring contract	351	1,225	1,176
Notes issued	72	49	74
Total current loans and borrowings	61,171	70,156	69,992

Notes issued are presented by the interest-free notes. These notes are reflected at amortized cost using effective interest rate of 18%.

25 LEASE

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Due within 1 year	255	281	270
From 1 to 5 years	910	984	981
More than 5 years	2,596	2,503	2,367
	3,506	3,768	3,618

There are fixed payments on these contracts, but each consequent lease payment is determined by correction of previous month payment on current month inflation rate. Amendments, addendums or cancellation of this contract are possible under agreement of both parties.

Net book value of leased assets

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Intangible assets	434	450	649
	434	450	649

Intangible assets were not reclassified into right-of-use assets due to close termination of appropriate lease agreement.

Right-of-use assets

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Property, plant and equipment	3,506	3,760	-
	3,506	3,760	-

26 PROVISIONS

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Non-current provisions
Provision for land restoration	2,220	2,296	2,176
Dismantling provision	312	337	310
	2,532	2,633	2,486
Current provisions
Provision on tax liabilities	1,808	1,940	1,863
	1,808	1,940	1,863

The Group liabilities, connected with environmental restoration, notably decommission of property, plant and equipment and land restoration under waste dumps. Estimation of liability bases on estimated prices of decommissions of property, plant and equipment and land restoration under waste dumps procedures. Discount rate used by the Group is 18%.

Management recognized provision for the payment of potential tax liabilities. However, if the tax authorities classify such transactions as subject to taxation and apply such classification to the companies of the Group, actual taxes and penalties may differ from the Management assessment

27 TRADE AND OTHER PAYABLES

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Trade payables	8,718	11,729	10,009
Interest due	44,318	42,476	37,840
Payables for wages and salaries	1,192	1,621	1,458
Interest due to factoring contract	1,142	376	361
Payables for unused vacations	137	176	166
Other payables	30,204	6,520	6,591
Advances received	2,999	1,640	1,688
Payables for acquisition property, plant and equipment	505	1,097	1,053
	89,215	65,635	59,166

28 TRANSACTIONS WITH RELATED PARTIES

According to existing criteria of determination of related parties, the related parties of the Group are divided into the following categories:

• Entities - related parties under common control with the Companies of the Group;

• Entities - related parties, which have joint key management personnel with the Companies of the Group.

Ultimate controlling party is Mr. Vyshnevetskyy V.

The sales of finished goods, merchandises and rendering of the services to related parties are made at terms equivalent to those that prevail in arm's length transactions on market price basis. Provision of loans and operations with notes are made at terms different from the transactions with independent parties.

Details of transactions between entities - related parties under common control with the Companies of the Group are disclosed below:

	9 months ended 31 March 2020	Year ended 30 June 2019	9 months ended 31 March 2019
Income from sales of finished products, goods	2,535	12,637	10,264
Income from other sales	35	67	67
Purchases of property, plant and equipment	(21)	(790)	783
Purchases of inventories	(49)	(1,737)	1,737

Details of balances between entities - related parties under common control with the Companies of the Group are disclosed below:

	As at 31 March 2020	As at 30 June 2019	As at 31 March 2019
Held-to-maturity investments	5	20	14
Non-current loans issued	43,887	-	-
Current loans issued	4,778	5,124	5,148
Allowances for loans issued	(4,778)	(5,124)	(5,148)
Trade receivables	6,844	7,215	7,372
Allowances for trade receivables	(361)	(399)	(383)
Advances paid	307	432	385
Allowances for advances paid	(26)	(28)	(27)
Other receivables	3,650	4,486	4,363
Receivables on sale of property, plant and equipment	44	47	45
Advances received	593	1,238	1,007
Other payables	2,586	3,208	3,127
Trade payables	107	105	147

29 CONTINGENT ASSETS AND LIABILITIES

As at the date of presentation of the financial statements, the Group is not involved in any legal processes that can have material impact on its financial position.

30 DISPOSALS OF SUBSIDIARIES

As at 31 October 2019, the Group sold 100% shares of Toretsk Coal Mining Company LLC with total consideration of UAH 1 thousand. As at 10 December 2019, the Group sold 99% shares of Antracit LLC with total consideration of UAH 1 thousand. Net assets and results of disposals are presented as follows:

	Toretsk CMC	Antracit	Total
Property, plant and equipment	-	1,813	1,813
Inventories	1,417	1,434	2,851
Trade and other receivables	196	19,612	19,808
Loans and borrowings	-	(49,197)	(49,197)
Deferred tax liabilities	-	(113)	(113)
Trade and other payables	(5,303)	(6,550)	(11,853)
Taxes payable	(2,529)	(215)	(2,744)
Net assets at the date of disposal	(6,219)	(33,216)	(39,435)
Consideration received	-	-	-
Net assets disposed	(6,219)	(33,216)	(39,435)
Reclassification of currency translation reserve of disposed subsidiaries	652	337	989
Profit from disposal	5,567	32,879	38,446

31 SUBSEQUENT EVENTS

According to the management's opinion, the following events after the reporting date would substantially influence the financial standing of the Group:

• i) During the three months ended 31 March 2021, the Group sold its 100% shares in the three subsidiaries: Nedra Donbasa LLC with total consideration of UAH 20 thousand, Progress-Vugillya LLC with total consideration of UAH 52 thousand, CwAL LE "Sh/U Blagoveshenskoe" with no consideration;
• ii) During the six months ended 31 December 2020, the Group sold its 100% shares in the six subsidiaries: Donugletekhinvest LLC with total consideration of UAH 26 thousand, Donprombiznes LLC with total consideration of UAH 15 thousand, Ugledobycha LLC with total consideration of UAH 16 thousand, Donantracit LLC with total consideration of UAH 46 thousand, Eximenergo LLC with total consideration of UAH 7 thousand, Coal Energy Ukraine LLC with total consideration of UAH 16 thousand;
• iii) During the three months ended 31 March 2021, the Group established new subsidiary Perspective resources LLC for searching for new deposits of coking coal with registration of mining licenses as well as study of business opportunities, related to other minerals (ore and other minerals, mining and chemical raw materials, etc.) with the subsequent registration of licenses for the extraction and development of deposits.