Annual / Quarterly Financial Statement • Mar 14, 2025
Annual / Quarterly Financial Statement
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(Convenience translation of the audit report and financial statements originally issued in Turkish)
| Table of contents | |
|---|---|
| -------------------------- | -- |
| Report on the audit of financial statements 1-6 | |
|---|---|
| Statement of financial position 7-8 | |
| Statement of profit or loss and other comprehensive income 9 | |
| Statement of changes in equity 10 | |
| Cash flow statement 11 | |
| Explanatory notes to the financial statements 12-80 |
| Key Audit Matters | |
|---|---|
| Capitalized mining assets | How our audit addressed the key audit matter |
| The Company capitalizes the expenses made in the following cases; |
The following audit procedures have been applied for the mining assets capitalized: |
| Where the development costs incurred in the mine sites are highly likely to obtain an economic benefit in the future from the mine in question, can be |
Evaluation of the content of development ÷. costs capitalized for each mine site, |
| defined for certain mining areas and the cost can be measured reliably, |
Meeting with the responsible executives $\overline{\phantom{a}}$ of the Company's departments for mining sites, |
| When there are direct costs incurred during stripping work that facilitates access to the defined part of the ore in each open pit ore deposit and overhead costs associated with stripping |
development, Detailed testing on a $\overline{\phantom{a}}$ stripping and rehabilitation costs, |
| When the provision for expenses that are likely to be spent during the closure and rehabilitation of mines are reduced cost values as of the balance sheet date, reclamation, rehabilitation and closure costs according to the current conditions of the mine fields that arise due to the open pit mine development activities and the production in the |
Checking the compliance of $\blacksquare$ evaluations with the management independent valuation report on mineral reserves of expected future economic benefit, Testing the capitalized rehabilitation, $\overline{\phantom{a}}$ land and rights costs by comparing them |
| open pit | with the actualized ones. |
| The share of the capitalized development costs in the financial statements dated December 31, 2024, the judgments applied the management during capitalization of the related costs and the complexity and significance of the assumptions are significant to our audit. Thus capitalized mining assets have been identified as a key audit matter. |
Within the scope of the above-mentioned specific accountings, questioning the appropriateness of the information in the financial statements and explanatory notes. |
| Detailed explanations about the capitalized mining assets can be found in Note 2.4 and Note 12. |
| Application the hyperinflationary of accounting |
How our audit addressed the key audit matter |
|---|---|
| As stated in Note 2.1 to the financial statements, the Company continues to apply TAS 29 "Financial Hyperinflationary Reporting in Economies" since the functional currency of the Company (Turkish Lira) is considered a currency hyperinflationary of economy ٥f a. as December 31, 2024. In accordance with TAS 29, financial statements and corresponding figures for previous periods have been restated for the changes in the general purchasing power of Turkish Lira and, as a result, are expressed in terms of purchasing power of Turkish Lira as of the reporting date. In accordance with the guidance in TAS 29, the Company utilized the Turkey consumer price indices to prepare inflation adjusted financial statements. The principles applied for inflation adjustment is explained in Note 2.1. Given the significance of the impact of TAS 29 on the reported result and financial position of the Company, we have assessed the hyperinflation accounting as a key audit matter. |
Our audit procedures included the following; Inquired of management responsible for financial reporting on the principles, which they have considered during the application of TAS 29, identification of non-monetary accounts and performing testing over TAS 29 models designed, Testing the inputs and indices used, to $\blacksquare$ ensure completeness and accuracy of the calculations. Auditing the restatements of $\sim$ corresponding figures as required bv TAS 29. Assessing the adequacy 0f the disclosures of inflation adjusted financial statements for compliance with TAS 29. |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| Notes | Audited Current period December 31, 2024 |
Audited Prior period December 31, 2023 |
|
|---|---|---|---|
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash and cash equivalents | 3 | 107.365 | 375.515 |
| Financial investments | 9 | 11.014.862 | 13.546.572 |
| Trade receivables | |||
| - Due from third parties | 4 | 3.133 | 588 |
| Other receivables | |||
| - Due from third parties | 5 | 4.772 | 221.256 |
| Inventories | 6 | 2.766.612 | 1.960.236 |
| Prepaid expenses | 7 | 137.704 | 418.130 |
| Assets related to current period tax | 25 | 255.116 | - |
| Other current assets | 8 | 1.094 | 2.755 |
| TOTAL CURRENT ASSETS | 14.290.658 | 16.525.052 | |
| NON-CURRENT ASSETS | |||
| Financial investments | 9 | 2.760.487 | 3.407.199 |
| Other receivables | |||
| - Due from related parties | 5 | 43.772 | 1.110.439 |
| - Due from third parties | 5 | 4.085 | 4.520 |
| Right-of-use assets | 10 | 7.847 | 30.904 |
| Investment properties | 11 | 1.390.350 | - |
| Property, plant and equipment | 12 | 10.238.792 | 7.004.659 |
| Intangible assets | |||
| - Goodwill | 13 | - | 137.525 |
| - Other intangible assets | 13 | 38.495 | 17.613 |
| Prepaid expenses | 7 | 1.532.593 | 2.810.119 |
| Deferred tax assets | 25 | 1.203.392 | 1.464.001 |
| Other non-current assets | 8 | 900.995 | 823.003 |
| TOTAL NON-CURRENT ASSETS | 18.120.808 | 16.809.982 | |
| TOTAL ASSETS | 32.411.466 | 33.335.034 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| Notes | Audited Current period December 31, 2024 |
Audited Prior period December 31, 2023 |
|
|---|---|---|---|
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Short-term lease liabilities | |||
| - Bank credits | - | 553.456 | |
| - Lease liabilities | 14 | 4.910 | 11.686 |
| Trade payables | |||
| - Due to third parties | 4 | 199.086 | 431.808 |
| Payables related to employee benefits | 15 | 153.485 | 170.747 |
| Other payables | |||
| - Due to related parties | 16 | 105.696 | 771 |
| - Due to third parties | 16 | 46.480 | 470 |
| Deferred revenues (Excluding liabilities arising | |||
| from customer agreements) | 208 | 301 | |
| Current income tax liabilities | - | 218.342 | |
| Short-term provisions | |||
| - Provisions for employee benefits | 17 | 43.877 | 38.016 |
| - Other short-term provisions | 17 | 1.156.580 | 1.198.480 |
| Other current liabilities | 45.846 | 24.627 | |
| TOTAL CURRENT LIABILITIES | 1.756.168 | 2.648.704 | |
| NON-CURRENT LIABILITIES | |||
| Long-term lease liabilities | |||
| - Lease liabilities | 14 | 1.339 | 9.047 |
| Other payables | |||
| - Due to third parties | 16 | 193.419 | 233.391 |
| Long-term provisions | |||
| - Provisions for employee benefits | 17 | 206.736 | 200.520 |
| - Other long-term provisions | 17 | 682.024 | 473.100 |
| TOTAL NON-CURRENT LIABILITIES | 1.083.518 | 916.058 | |
| EQUITY | 29.571.780 | 29.770.272 | |
| Paid-in share capital | 18 | 3.202.500 | 3.202.500 |
| Adjustment to share capital | 18 | 6.086.535 | 6.086.535 |
| Withdrawn shares (-) Other comprehensive income / expense not to be reclassified to profit or loss |
18 | (2.776.900) | (2.088.263) |
| - Actuarial gain / (loss) fund | |||
| for employee benefits | (290.012) | (176.167) | |
| Restricted reserves | 18 | 3.150.440 | 3.150.440 |
| Reserves for withdrawn shares | 18 | 2.776.900 | 2.088.263 |
| Retained earnings | 16.818.327 | 16.920.656 | |
| Net profit / loss for the period | 603.990 | 586.308 | |
| TOTAL LIABILITES AND EQUITY | 32.411.466 | 33.335.034 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| Notes | Audited Current period January 1 – December 31, 2024 |
Audited Prior period January 1 – December 31, 2023 |
|
|---|---|---|---|
| Revenue | 19 | 8.735.920 | 11.705.057 |
| Cost of sales (-) | 19 | (5.749.802) | (6.748.060) |
| GROSS PROFIT | 2.986.118 | 4.956.997 | |
| Research and development expenses (-) | (1.054.386) | (857.694) | |
| Marketing, sales and distribution expenses (-) | (178.720) | (160.747) | |
| General administrative expenses (-) | (1.129.062) | (1.363.195) | |
| Other operating income | 21 | 210.451 | 188.586 |
| Other operating expenses (-) | 21 | (838.207) | (1.910.678) |
| OPERATING (LOSS) / PROFIT | (3.806) | 853.269 | |
| Income from investing activities | 22 | 5.763.977 | 9.950.891 |
| Expenses from investment activities | 23 | (161.289) | - |
| Impairment gains (losses) and reversals of impairment losses | |||
| determined in accordance with TFRS 9 | - | 77 | |
| OPERATING PROFIT BEFORE FINANCIAL INCOME | 5.598.882 | 10.804.237 | |
| Financial expenses (-) | (5.425) | (67.808) | |
| Monetary loss (-) | 24 | (4.645.887) | (10.544.265) |
| PROFIT/LOSS BEFORE TAX FROM CONTINUED | |||
| OPERATIONS | 947.570 | 192.164 | |
| - Current tax expense (-) | 25 | (45.023) | (1.354.852) |
| - Deferred tax income / (expense) (-) | 25 | (298.557) | 1.748.996 |
| NET PROFIT FOR THE PERIOD | 603.990 | 586.308 | |
| Other comprehensive expense (-) | (113.845) | (42.020) | |
| Total other comprehensive income not to be classified to profit or loss in subsequent years |
|||
| Gains / (losses) on remeasurements of defined benefit plans | 17 | (151.793) | (56.026) |
| Gains / (losses) on remeasurements of defined benefit plans, | |||
| tax effect | 25 | 37.948 | 14.006 |
| TOTAL COMPREHENSIVE INCOME | 490.145 | 544.288 | |
| Earnings per 100 share | |||
| - common stock (TL) | 26 | 0,019 | 0,018 |
| Earnings per 100 shares from total comprehensive income | |||
| - common stock (TL) | 26 | 0,015 | 0,017 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| Other comprehensive income/expense not to be reclassified to profit or loss |
Retained earnings | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Paid in capital | Adjustment to capital |
Treasury Shares |
Actuarial (loss) / gain fund for employment termination benefit |
Restricted reserve |
Retained earnings |
Net profit for the period |
Total equity | ||
| Balance as of January 1, 2023 | 152.500 | 2.540.483 | - | (134.147) | 2.583.360 | 33.231.152 | (4.771.545) | 33.601.803 | |
| Net profit for the period Other comprehensive income/ (loss) |
- - |
- - |
- - |
- (42.020) |
- - |
- - |
586.308 - |
586.308 (42.020) |
|
| Total comprehensive income/ (loss) | - | - | - | (42.020) | - | - | 586.308 | 544.288 | |
| Capital increase (*) Increase (Decrease) through Treasury Share |
3.050.000 | 3.546.052 | - | - | - | (6.596.052) | - | - | |
| Transactions Dividend Payment Transfers |
- - - |
- - - |
(2.088.263) - - |
- - - |
2.088.263 - 567.080 |
(2.088.263) (2.287.556) (5.338.625) |
- - 4.771.545 |
(2.088.263) (2.287.556) - |
|
| Balance as of December 31, 2023 | 3.202.500 | 6.086.535 | (2.088.263) | (176.167) | 5.238.703 | 16.920.656 | 586.308 | 29.770.272 | |
| Balance as of January 1, 2024 | 3.202.500 | 6.086.535 | (2.088.263) | (176.167) | 5.238.703 | 16.920.656 | 586.308 | 29.770.272 | |
| Net profit for the period Other comprehensive loss |
- - |
- - |
- - |
- (113.845) |
- - |
- - |
603.990 - |
603.990 (113.845) |
|
| Total comprehensive income/ (loss) | - | - | - | (113.845) | - | - | 603.990 | 490.145 | |
| Increase (Decrease) through Treasury Share Transactions(**) Transfers |
- - |
- - |
(688.637) - |
- - |
688.637 - |
(688.637) 586.308 |
- (586.308) |
(688.637) - |
|
| Balance as of December 31, 2024 | 3.202.500 | 6.086.535 | (2.776.900) | (290.012) | 5.927.340 | 16.818.327 | 603.990 | 29.571.780 |
(*) In 2023, The Company's issued capital, which is 152,500 Thousand TL (One Hundred Fifty Two Million Five Hundred Thousand Turkish Liras) within the registered capital ceiling of 5,000,000 Thousand TL (Five Billion Turkish Lira), is fully covered by internal resources of 3,050,000 Thousand TL (Three Billion Fifty Million Turkish Liras) by 2000% and it was increased to 3,202,500 Thousand TL (Three Billion Two Hundred Two Million Five Hundred Thousand Turkish Liras).
(**) It is related to the repurchased shares of the Company within the scope of share purchase and sale transactions initiated by the decision of the Company's Board of Directors. During the period, total of 25,000,000 shares were bought for Thousand TL 688,637.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| Notes | Audited Current period January 1 – December 31, 2024 |
Audited Prior year January 1 – December 31, 2023 |
|
|---|---|---|---|
| A. Cash flows from operating activities | 3.121.453 | (1.630.888) | |
| Profit for the period from the continuing operations | 603.990 | 586.308 | |
| Adjustments to reconcile profit for the period | |||
| Adjustments to depreciation and amortization Adjustments for fair value (gains) of financial assets Adjustments for provisions - Adjustments for sectoral provisions |
10,12,13 22 |
1.253.851 (4.559.107) 1.371.999 |
1.058.539 (8.069.543) 1.023.812 |
| - Adjustments for debt provisions - Adjustments for lawsuits and/ or penalty provisions - Adjustments for provisions for employee benefits Adjustments for tax expense Adjustments for interest expenses |
17 17,21 17 25 |
(20.898) 213.781 41.905 343.580 53.014 |
(158.431) 167.730 (101.130) (394.144) 99.467 |
| Adjustments for interest income Adjustments for (gains) arising from disposal of tangible assets Adjustments for (gains) on disposal of investment properties Adjustments related to the impairment of investment property Adjustments for impairment of goodwill Monetary loss |
22 22 22 11,23 23 |
(1.197.758) (7.037) - 21.687 137.525 3.487.307 |
(520.376) (275.311) (1.078.091) - - 8.697.997 |
| Total adjustments | 1.139.849 | 450.519 | |
| Increase in trade receivables Decrease / (increase) in other receivables Increase /(decrease) in other payables Increase in inventories Increase /(decrease) in prepaid expenses Decrease in trade payables Increase in other receivables from related parties related to activites (Decrease) / increase in payables related to employee benefits (Increase) / decrease in other assets related to activities Increase in other liabilities related to activities Payments of employee retirement benefits Payments related to other provisions |
17 | 25.433 216.919 110.870 (806.376) 2.676.359 (232.722) 1.066.667 (17.262) (76.331) 36.388 (157.004) (991.869) |
82.621 (7.277) (189.611) (122.172) (49.494) 66.105 (727.139) 86.891 358.098 9.318 (89.698) (860.525) |
| Taxes paid Net cash from operating activities |
25 | (473.458) 1.377.614 |
(1.224.832) (2.667.715) |
| B. Cash flows from investing activities | (2.094.385) | 5.887.700 | |
| Cash outflows from purchase of tangible assets Cash outflows from purchase of intangible assets Cash outflows from the sale of investment properties Cash inflows from the sale of investment properties |
12 13 11 |
(4.382.283) (2.218) (1.412.037) - |
(1.795.217) (19.969) - 1.560.005 |
| Cash advances and debts given (-) Cash inflows related to sale of tangible assets Interest received Cash inflows related to financial investments Cash outflows related to financial investments Cash outflows from the purchase of fixed assets classified for sale (-) |
7 12 |
(1.118.407) 31.730 1.199.256 6.377.754 (2.788.180) - |
(2.455.141) 377.521 461.497 20.155.548 (12.397.246) 702 |
| C. Net cash from financing activities | (1.085.613) | (3.917.019) | |
| Dividends paid Cash outflows related to withdrawn transactions (-) Cash outflows related to lease liabilities (-) Cash outflows due to borrowing Cash inflows due to borrowing |
14 | - (688.637) (13.640) (383.336) - |
(2.287.556) (2.088.263) (45.309) - 504.109 |
| D. Monetary loss on cash and cash equivalents | (208.107) | (301.794) | |
| Net increase in cash and cash equivalents (A+B+C+D) | (266.652) | 37.999 | |
| E. Cash and cash equivalents at the beginning of the year | 3 | 373.521 | 335.522 |
| F. Cash and cash equivalents at the end of the year (A+B+C+D+E) | 3 | 106.869 | 373.521 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Koza Altın İşletmeleri A.Ş. ("Koza Altın" or the "Company") was established on September 6, 1989 under the name of Eurogold Madencilik A.Ş. for the operation of the gold mine in Ovacık-Bergama, İzmir. Its name was changed to Normandy Madencilik A.Ş. ("Normandy Madencilik") with regard to the purchase of all shares of Eurogold Madencilik A.Ş. by Normandy Mining Ltd.
The name of the Company was registered as Koza Altın İşletmeleri A.Ş. on August 29, 2005 after ATP İnşaat ve Ticaret A.Ş. ("ATP"), a subsidiary of Koza İpek Holding A.Ş. ("Koza İpek Holding") acquired all shares of Normandy Madencilik from Autin Investment on March 3, 2005.
As of December 31, 2024, including the stocks traded in Borsa Istanbul ("BIST"), 48.01% of the Company's shares owned by ATP and 21.99% owned by Koza İpek Holding (December 31, 2023: 45.01% owned by ATP and 24.99% by Koza İpek Holding) and as of December 31, 2024, shares corresponding to 30% of the Company's shares (December 31, 2023: 30%) are traded on BIST.
The Company management was transferred to the Board of Trustees, pursuant to the decision of Ankara 5th Criminal Court of Peace, dated October 26, 2015, and subsequently transferred to the Savings Deposit Insurance Fund ("SDIF") on September 22, 2016. As of this date, all the authories of the management have been transferred to the trustees appointed to the management of Koza Altın İşletmeleri A.Ş. and it has been decided to establish new management by these trustees.
With the Decree Law No. 674 on Making Some Regulations under the State of Emergency ("Decree") published on September 1, 2016, it was decided to transfer all the powers previously given to the trustees assigned to companies by the courts to the Savings Deposit Insurance Fund ("SDIF").
In accordance with the "reservation of the rights of bona fide shareholders and third parties" stipulated in the decision of the 3rd Criminal Chamber of the Supreme Court of Appeals dated April 14, 2023, numbered 2022/18087 Principles, Decision no. 2023/2215, the Company and other Koza İpek Group companies are In a way that protects the rights of bona fide shareholders and third parties, the parent company-subsidiary structure in group companies continues as it is, and the rights of investors in companies traded on BIST are protected, and the registration and announcement of the shares of real persons other than these on behalf of the Treasury are carried out by the Trade Registry Office. It was held in July 2023.
By preserving the parent partnership-subsidiary structures, the transfer of the company's shares belonging to the Treasury to the Türkiye Wealth Fund was published in the Official Gazette dated August 20, 2024 and numbered 32638, by Presidential decision numbered 8857. Taking into account the strategic importance of the sectors in which the Company and all group companies operate for the country's economy, the partnership structure and group company integrity will be ensured, without disrupting the parent company-subsidiary relations, and by protecting the rights of bona fide beneficiaries and stock market investors, it is decided to transfer of the company's shares belonging to the Treasury to the Türkiye Wealth Fund. With the decision of the Savings Deposit Insurance Fund (TMSF) Fund Board dated September 12, 2024 and numbered 2024/406 and the decision of the Board of Directors dated September 12, 2024, the transfer of the shares of the companies belonging to the Treasury to the Türkiye Wealth Fund was recorded in the share ledger. The transfer of the Company's shares belonging to the treasury to the Türkiye Wealth Fund was registered on October 18, 2024 and was published in the Trade Registry Gazette dated October 22, 2024 and numbered 11191.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company's financial statements for the years ended December 31, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 have been approved by the Board of Directors with the board decisions dated April 24, 2018, April 30, 2018, February 28, 2019, February 27, 2020, March 1, 2021, March 1, 2022, March 1, 2023 and May 9, 2024 respectively and published by excluding the possible cumulative effects of the works and transactions belonging to the previous financial periods, whose judgment process continues, in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC"). Audited financial statements for the year ended December 31, 2015 were not approved by the Board of Directors in accordance with the provisions of Article 401/4 of the TCC. Subsequently, with the decision of the Board of Directors of the Company the phrase " excluding the possible cumulative effects of the transactions and operations from previous financial periods on the statements in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC")" have been removed from the decisions regarding the approval of the financial statements for December 31, 2023.Ordinary general assembly meetings of the Company for the years 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 as explained in detailed in Note 17, could not be carried out due to various examinations and works by the Prosecutor's Office, the Police Financial Crimes Branch and the CMB, and these financial statements of the Company could not be submitted to the approval of the General Assembly.
The main activities of the Company are operating seven mines in five regions which are Ovacık-Bergama-İzmir, Çukuralan-İzmir, Kaymaz-Eskişehir, Mastra-Gümüşhane and Himmetdede-Kayseri, searching for gold mines generally in different regions of Türkiye and improving the mine fields of on going projects.
The Company sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment. Due to the fact that the sales are made on demand and the customer is corporate, the Company effectively manages the receivable risk, taking into account the past experiences.
The Company has established UK based Koza Ltd., which owns 100%, in order to establsihabroad mining ventures on March 31, 2014. The control of Koza Ltd, which the Company was consolidated until September 11, 2015, was lost as a result of the General Assembly held on September 11, 2015. The legal process initiated by the CMB regarding loss of control pursuant to decision dated February 4, 2016 continues as of the date of this financial statements. Under financial statements, the Company has presented Koza Ltd. under the "Financial Investments" account with a cost value amounting to 2,471,133 thousand TL (December 31, 2023: 2,471,133 thousand TL).
As of December 31, 2024, the number of employees is 2.058 people (December 31, 2023: 2.491).
The registered address of the Company is below:
Uğur Mumcu Mahallesi, Fatih Sultan Mehmet Bulvarı, İstanbul Yolu 10. Km, No: 310, 06370, Yenimahalle-Ankara, Türkiye.
The financial statements dated December 31, 2024 were approved by the Board of Directors and authorized to be published on March 14, 2025.
The Company and its subsidiaries established in Türkiye, prepare its financial statements in accordance with the Turkish Commercial Code (TCC) numbered 6102, tax legislation and the Uniform Chart of Accounts published by the Ministry of Finance.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The accompanying financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which were published in the Resmi Gazete No:28676 on June 13, 2013. The accompanying financial statements are prepared based on the Turkish Financial Reporting Standards and Interpretations ("TAS/TFRS") that have been put into effect by the Public Oversight Accounting and Auditing Standards Authority ("POA").
The financial statements and notes are presented in accordance with the "2024 TAS Taxonomy" announced by the POA with the principle decision dated July 3, 2024. The financial statements are based on legal records and expressed in TL, and have been prepared by subjecting to some corrections and classification changes in order to present the Companys status according to TAS and TFRS.
Financial statements are presented in TL, which is the functional and presentation currency of the Company.
Foreign currency transactions have been converted over the exchange rates valid on the dates of the transaction. Monetary assets and liabilities based on foreign currency are converted using the exchange rates valid on the date of the statement of financial position. Exchange difference income or expense arising from foreign currency-based operational transactions (trade receivables and debts) is presented under the "other income / expenses from operating activities", while the exchange difference income or expense arising from the translation of other foreign currency based monetary assets and liabilities is presented under "finance income / expenses" in the statement of profit or loss.
In accordance with the decision of the CMB dated December 28, 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of December 31, 2023. Based on the aforementioned CMB decision, the announcement made by the KGK on November 23, 2023 and the "Implementation Guide on Financial Reporting in Hyperinflationary Economies" published, the Company has prepared its financial statements for the period and ending on the same date as of December 31, 2024 by applying the TAS 29 "Financial Reporting in Hyperinflationary Economies" Standard. According to this standard, financial statements prepared based on the currency of an economy with high inflation should be prepared in the purchasing power of this currency at the balance sheet date and the financial statements of previous periods should be restated in terms of the current measurement unit at the end of the reporting period. For this reason, the Company has presented its financial statements as of December 31, 2023 on the basis of purchasing power as of December 31, 2024. Except for financial investments, assets and liabilities are prepared on the basis of historical cost.
The re-arrangements made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index ("CPI") in Türkiye published by the Turkish Statistical Institute ("TÜİK"). As of December 31, 2024, the indexes and correction coefficients for the current and comparative periods used in the correction of the financial statements are as follows:
| Period end | Index | Index, % | Three-year cumulative inflation rates |
|---|---|---|---|
| December 31, 2024 | 2.684,55 | 1,00000 | 291% |
| December 31, 2023 | 1.859,38 | 1,44379 | 268% |
| December 31, 2022 | 1.128,45 | 2,37897 | 156% |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Assets and liabilities were separated into those that were monetary and non–monetary, with non–monetary items were further divided into those measured on either a current or historical basis to perform the required restatement of financial statements under TAS 29. Monetary items (other than index -linked monetary items) and non-monetary items carried at amounts current at the end of the reporting period were not restated because they are already expressed in terms of measuring unit as of December 31, 2024. Non-monetary items which are not expressed in terms of measuring unit as of December 31, 2024 were restated by applying the conversion factors. The restated amount of a non-monetary item was reduced, in accordance with appropriate TFRSs, in cases where it exceeds its recoverable amount or net realizable value. Components of shareholders' equity in the statement of financial position and all items in the statement of profit or loss and other comprehensive income have also been restated by applying the conversion factors.
Non-monetary items measured at historical cost that were acquired or assumed and components of shareholders' equity that were contributed or arose before the time when the Turkish lira previously ceased to be considered currency of hyperinflationary economy, i.e before January 1, 2005, were restated by applying the change in the CPI from January 1, 2005 to December 31, 2024.
The application of TAS 29 results in an adjustment for the loss of purchasing power of the Turkish lira presented in Net Monetary Position Gains (Losses) item in the profit or loss section of the statement of profit or loss and comprehensive income. In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. This gain or loss on the net monetary position is derived as the difference resulting from the restatement of non-monetary items, owners' equity and items in the statement of profit or loss and other comprehensive income and the adjustment of index linked assets and liabilities. In addition, in the reporting period in which IAS 29 was first applied, the provisions of the Standard were applied assuming that there was always high inflation in the relevant economy. Therefore, the statement of financial position as of January 1, 2022, the beginning of the earliest comparative period, has been adjusted for inflation in order to form the basis for subsequent reporting periods. The inflation-adjusted amount of the retained earnings/losses item in the financial position statement dated January 1, 2022 was obtained from the balance sheet balance that should have occurred after adjusting the other items of the said table for inflation.
The Company has prepared its financial statements according to the going concern principle.
The Company has prepared its financial statements for the period ending on December 31, 2024, in accordance with the CMB's Communiqué Serial: II-14.1 and its announcements clarifying this communiqué. The financial statements and notes are presented in accordance with the formats recommended by CMB and including the required information.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Accounting policy changes arising from the implementation of a new TAS / TFRS for the first time are applied retrospectively or prospectively in accordance with the transition provisions of the TAS / TFRS, if any. If there is no transition requirement, significant optional changes in accounting policies or detected accounting errors are applied retrospectively and the financial statements of the previous period are restated. Changes in accounting estimates are applied in the current period when the change is made if they are related to only one period, and if they are related to future periods, they are applied both in the period of change and prospectively.
The accounting policies adopted in preparation of the financial statements as of December 31, 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2024 and thereafter. The effects of these standards and interpretations on the Company's financial position and performance have been disclosed in the related paragraphs.
The amendments did not have a significant impact on the financial position or performance of the Company.
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the financial statements are as follows. The Company will make the necessary changes if not indicated otherwise, which will be affecting the financial statements and disclosures, when the new standards and interpretations become effective.
Overall, the Company expects no significant impact on its balance sheet and equity.
Amendments to TAS 12 - International Tax Reform – Pillar Two Model Rules
The amendments did not have a significant impact on the financial position or performance of the Company.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The following amendments to IAS 21 and IFRS 18 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Company will make the necessary changes to its financial statements after the amendments and new Standard are issued and become effective under TFRS.
IFRS 19 is not valid for the Company and the effects of other Standards and amendments on the Company's financial position and performance are being evaluated.
Significant accounting policies adopted in the preparation of financial statements are summarized below:
Cash and cash equivalents consist of cash on hand and short-term time deposits. Short-term time deposits are highly liquid that can be easily converted into cash without a risk of losing its value. Cash and cash equivalents are presented in the statement of financial position with the sum of acquisition cost and accured interest. Deposits from which interest income is obtained despite being blocked are classified under long-term financial investments.
The Company sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment.
The "simplified approach" is applied within the scope of the impairment calculations of trade receivables originating from other activities of the Company, which are accounted at amortized cost in the financial statements and do not contain a significant financing component (with a term of less than 1 year). With the application of this approach, in cases where the trade receivables are not impaired for certain reasons (except for the realized impairment losses), the loss allowance for trade receivables is measured at an amount equal to "lifetime expected credit losses". Following the allocation of a provision for impairment, if all or a portion of the impaired receivable is collected, the collected amount is deducted from the provision for the impairment allocated and recorded in other operating income.
The cost of inventories comprises all costs incurred in bringing the inventories to their present location and condition. The components of the cost included in inventories are material, labor and overhead costs. The cost of inventories is determined on the weighted average basis. Inventories are stated at the lower of cost and net realizable value. The Company's inventories consists of mining inventories, chemicals and operating materials. Mining inventories consists of ready to be processed and mined ore clusters, solution obtained by treating mining inventories through tank leaching (heap leach) and gold and silver bars in the production process or ready for shipment. The ore clusters ready to be processed and the costs of gold and dore bars made ready for shipment in the production process are calculated by taking into account the amount of gold they contain on an ounce basis and the recycling rate calculated based on the processing in the facility. The quantities of ready-to-work, mined ore clumps and dore bars made of gold and silver are determined by periodic counts. Depreciation and amortizatioof mineral assets and other fixed assets related to production are included in the costs of the inventory at the relevant production location and stage.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
If one of the below listed criteria exists the party is regarded as related with the Group:
Transaction with related parties is the transfer of resources, services or obligations between related parties, regardless of whether they are paid for.
At inception of a contract, the Company assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company recognises a right-of-use asset and a lease liability at the commencement date of the lease following the above mentoned assessments.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the following:
Useful lives of right-of-use assets are as follows:
| Building | 4 years |
|---|---|
| Motor vehicles | 2-4 years |
Right-of-use assets are subject to impairment.
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable.
The lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:
After the commencement date, Company measures the lease liability by:
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Company assesses the contractual options to extend or to terminate the lease when determining the lease liability. Most of the options to extend and terminate are exercisable both by the Company and the respective lessor. Company determines the lease term of a lease considering the periods covered by options to extend and terminate the lease if the options are exercisable by the Company and the Company is reasonably certain to exercise those options. If a significant change in circumstances takes place, related lease term assessment is revisited by the Company.
The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).
The Company applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
The Company applies a single discount rate to a portfolio of leases which have similar characteristics (asset classes which have similar remaining rent periods in a similar economic environment).
Some lease contracts of the Company contain variable payment terms. Variable lease payments are recognised in the statement of profit or loss in the related period.
All the leases that Company is the lessor are operating leases. Assets leased out under operating leases are classified under investment properties or operating leases in the financial position. Rental income is recognised in the statement of income on a straight-line basis over the lease term.
Transaction with related parties is the transfer of resources, services or obligations between related parties, regardless of whether they are paid for.
Properties those are held for long term rental yields or capital appreciation or both, rather than in the production of supply of goods and services or administrative purposes or for the sale in the ordinary course of business are classified as "Investment property". Investment properties are carried at cost less accumulated depreciation. Depreciation is provided for investment properties on a straight-line basis over their estimated useful lives.
Investment properties are reviewed for possible impairment losses and where the carrying amount of the investment property is greater than the estimated recoverable amount, it is written down to its recoverable amount. Recoverable amount of the investment property is the higher of the estimated future cash flows discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or fair value less costs of disposal.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss. When assets are sold or retired, their costs and accumulated depreciation are eliminated from the accounts and any gain or loss resulting from their disposal is included in the consolidated statement of income.
Property, plant and equipments are depreciated with the linear depreciation method in accordance with the useful life principle. The useful lives of buildings, machinery, facilities and devices are limited by the useful life of the respective mines. Land is not depreciated as it is deemed to have an indefinite useful life. Depreciation commences when the assets are ready for their intended use.
The cost of the property, plant and equipment consists of acquisition cost, import taxes, non-refundable taxes, and expenses incurred to make the asset ready for use. After the asset is started to be used, expenses such as repair and maintenance are recognized as an expense in the period they occur. If the expenditures provide an economic value increase for the related asset in its future use, these expenses are added to the cost of the asset.
Assets in the construction phase are shown by deducting the impairment loss, if any, from their cost. When these assets are built and ready for use, they are classified into the relevant fixed asset item. Such assets are subject to depreciation when they are ready for use, as in the depreciation method used for other fixed assets.
The depreciation periods for property, plant and equipment, which approximate the economic useful lives of such assets, are as follows:
| Useful lives | |
|---|---|
| Land improvements | (During the useful life of the relevant mine) 2-15 years |
| Buildings | (During the useful life of the relevant mine) 2-50 years |
Furniture and fixtures 3-20 years The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Machinery and equipments (During the useful life of the relevant mine) 2-20 years Motor vehicles 2-15 years
Repair and maintenance expenses are charged to the income statements during the period in which they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable that future economic benefits more than the originally assessed standard of performance of the existing asset will flow to the Company. Major renovations are depreciated over the remaining useful life of the related asset.
Gains or losses on disposals of property, plant and equipment are determined by comparing proceeds with their net carrying amounts and are classified under "gains/losses from investing activities" in the current period.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Mining assets consist of mine site development, mining rights, mining plots, deferred mining costs and discounted costs associated with the rehabilitation, rehabilitation and closure of mine sites. Mineral assets are reflected in the financial statements with their net value after deducting the accumulated depreciation and permanent impairment, if any, over their acquisition costs.
Mining assets begin to be amortized with the commencement of production. The depreciation expenses of the mining assets are associated with the production costs on the basis of the relevant mining sites.
The mine site development costs include the evaluation and development of new ore veins, as well as the opening of underground galleries, excavation and construction of roads for the continuation and development of existing ore seams. Mine development costs are capitalized in cases where it is highly likely to obtain an economic benefit in the future from the mine in question, can be identified for specific mining areas and the cost can be measured reliably. Costs incurred during production are capitalized as long as they are directly related to the development of the mine site. Production-related costs are reflected as expense in the statement of profit or loss and other comprehensive income.
In cases where mining site development expenses cannot be distinguished from research and evaluation expenses, the said expenses are recorded as expense in the profit or loss and other comprehensive income statement in the period they occur.
Mining assets are depreciated when their capacity is ready to be used fully and their physical conditions meet the production capacity determined by the Company management. Mine development costs are capitalized in cases where it is highly probable to obtain economic benefit in the future and are subject to depreciation considering the economic benefit. Mine development costs are distributed to the departments to the extent that they can be defined on the basis of the relevant mining areas as soon as they are first recorded, and the departments in each mine area are subjected to depreciation by using the units of production method, taking into account the economic benefits separately.
The large-scale and important revision works carried out at the said mine, which will increase the economic benefits to be obtained during the life of the relevant mine, are capitalized. Maintenance and repair expenses, excluding large-scale and significant revisions, that can be evaluated within this scope are recorded as expense in the profit or loss and other comprehensive income statement of the period in which they occur.
The mine development costs at each mine site are depreciated over the redemption rate found by dividing the total amount of gold in ounce mined from the relevant mine by the total ounce of visible and possible workable remaining gold reserves in the said mine during the period. The visible and possible reserve amounts in each mine site indicate the known and measurable resource that can be extracted and processed economically in the foreseeable future.
Apart from the land on which the production facilities are built and where the wastes are stored, the Company also purchases land for mining exploration activities. These lands are followed in mineral assets and are reflected in the financial statements over their acquisition costs. These lands begin to be depreciated over the depreciation rate found by dividing the total ounce of visible and possible workable reserve in the said mine by the remaining gold reserve amount as soon as the ore is started to be extracted in the relevant mine site.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The deferred mining costs consist of the direct costs incurred during stripping, which facilitates access to the defined part of the ore in each open pit ore deposit during the period, and the general production costs associated with the stripping work. It is subject to depreciation taking into account the deferred extraction rate, which is calculated based on the usable remaining life of each open pit.
The production costs corresponding to the part of the benefit generated in the stripping work realized in the form of manufactured products are accounted for by including the cost of inventories. The removal costs of each open pit ore deposit and, as long as it is measurable, for phases related to each ore deposit are accounted by taking into account the calculated rates.
Deferred mining costs are depreciated over the amortization rate found by dividing the total ounce of gold mined from the relevant mine by the total ounce of visible and possible workable remaining gold reserves in the said mine. The visible and possible reserve amounts in each mine site indicate the known and measurable resource that can be extracted and processed economically in the foreseeable future.
The actual mineral extraction rate is calculated by proportioning the amount of waste and ore extracted from each open pit until the balance sheet date. The estimated mineral extraction rate, which is calculated by taking into account the remaining useful life of each open pit, is calculated by proportioning the estimated cumulative pass and ore amounts to each other in tonnes to be prospectively extracted from each open pit connected to the reserve.
Accordingly, if the actual extraction rate is higher than the estimated extraction rate calculated by taking into account the useful life of each related open pit, part of the estimated cumulative passage during the year and the cost incurred for ore extraction is capitalized in line with the said rates.
If the estimated mineral extraction rate calculated considering the useful life of the mine is higher than the actual extraction rate, the related costs are accounted as production expense in the profit or loss and other comprehensive income statement, taking into account the depreciation rate stated above. The useful life of the mine is reviewed annually and changes in the deferred extraction rate are accounted for prospectively.
Mining rights are accounted in the financial statements at the acquisition cost. It is amortized by using the lower of the depreciation rate found by dividing the remaining economic lives of the relevant mine or the ounce amount of gold extracted from underground and open pit during the period by the amount of visible and possible workable remaining ounce of gold reserves.
Reclamation, rehabilitation and closure costs according to the current conditions of the mine fields that arise due to the open pit mine development activities and the production in the open pit; Provision for expenses that are likely to be spent during the closure and rehabilitation of mines is reflected in the financial statements at their reduced cost values as of the balance sheet date.
These provisions are reduced to their values at the balance sheet date, taking into account the risk of interest and liability in the markets, with a pre-tax discount rate that does not include the risk of future cash flow estimates, and the calculations are reviewed in each balance sheet period. Changes resulting from changes in management estimates used in the computation of the reclamation, rehabilitation and closure provision of mine sites are reflected in the cost of rehabilitation, rehabilitation and closure of mine sites.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
On the other hand, for each mine, the costs of rehabilitation, rehabilitation and closure of the respective mine sites; It is amortized by using the lower of the depreciation rate found by dividing the remaining economic lives of the relevant mine or the ounce amount of gold extracted from the relevant open pit during the period by the remaining visible and possible workable reserve amount in ounce. The costs incurred in relation to the prevention of environmental pollution and protection of the environment within the scope of the existing programs are reflected in the profit or loss and other comprehensive income statement as expense in the period they occur.
Pre-license costs are expensed in the period in which they occur.
After the license acquisition, mineral exploration and evaluation expenses include all kinds of technical services from the initial prospecting and exploration stages of a mine site to the realization of a mining project. These technical services; All kinds of geological studies from mining activities to reserve calculation, all kinds of ore production planning from exploitable reserve calculation to production method, optimization and organization, construction and implementation of ore enrichment projects for determination of complete flow chart, from process mineralogy to market analysis, necessary financing It includes activities such as feasibility studies in every scope up to its source.
Mine site development costs are capitalized in cases where it is highly likely that an economic benefit will be obtained from the mine in question in the future, can be identified for specific mine sites and the costs can be measured reliably. The costs incurred during the research and evaluation are capitalized as long as they are directly related to the development of the mine site.
At the point where production is decided at the mine site, all costs incurred are transferred to the mining assets account. However, when it is decided that there is no future economic benefit, all costs incurred are reflected in the income statement. As the production starts after the preparation period, mineral assets begin to be depreciated.
For the capitalized development costs, the Company management evaluates on each balance sheet date whether there is any indication of depreciation, such as a significant decrease in the reserve amount, expiration of the rights acquired for mining sites, and failure to renew or cancel. If there is such an indicator, the relevant recoverable value, which is determined as the higher of the amount to be recovered through sale after deducting the expenses required for the use or sale of the said asset, is estimated and the impairment losses are reflected as expense in the profit or loss and other comprehensive income statement. The carried value is reduced to its recoverable value.
Intangible assets are comprised of rights and computer software. They are initially recognised at acquisition cost and amortised on a straight-line basis over their estimated useful lives. Whenever there is an indication that the intangible is impaired, the carrying amount of the intangible asset is reduced to its recoverable amount and the impairment loss is recognised as an expense.
Any gain or loss arising on the disposal of an item of intangible asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss as "gains from investment activities".
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Computer software and rights are recognized at their acquisition cost. They are amortized on a straight-line basis over their estimated useful lives and carried at cost less accumulated amortization. Their estimated useful lives are between 3 and 5 years.
Business combinations are accounted for by using the purchase method in the scope of TFRS 3 "Business combinations". Any excess of the cost of acquisition over the acquirer's interest in the (i) net fair value of the acquiree's identifiable assets and contingent liabilities as of the acquisition date, (ii) amount of any non-controlling interest in the acquired entity and (iii) fair value of any equity interest previously held by acquirer is accounted for as goodwill. If those amounts are less than fair value of the net identifiable assets of the business acquired, the difference is recognised directly in "Gains from investment activities" as a gain from bargain purchase.
Under this method, the cost of an acquisition is measured over the fair value of cash and other assets given as of the acquisition date, equity instruments issued or liabilities incurred. If a business combination contract includes clauses that enable adjustments in the cost of business combination depending on events after the acquisition date; in case the adjustment is measurable and more probable than not, than the cost of business combination at acquisition date is adjusted. Costs related to the purchase are recognized as expense in the period in which they are incurred.
Identifiable assets, liabilities and contingent liabilities of the business acquired are measured initially at their fair values at the acquisition date in the scope of TFRS 3.
Goodwill recognised in business combinations is tested for impairment annually (as of December 31) or more frequently if events or changes in circumstances indicate impairment, instead of amortisation. Impairment losses on goodwill are not reversed. Goodwill is allocated to cash-generating units for the purpose of impairment testing.
Legal mergers between entities controlled by the Company are not considered within the scope of TFRS 3. Therefore, goodwill is not recognized in such transactions.
In business combinations involving entities under common control, assets and liabilities subject to a business combination are recognised at their carrying amounts in the consolidated financial statements. In addition, statements of income are consolidated from the beginning of the financial year in which the business combination takes place. Similarly, comparative consolidated financial statements are restated retrospectively for comparison purposes. As a result of these transactions, no goodwill is recognised. The difference arising in the elimination of the carrying value of the investment held and share capital of the acquired company is directly accounted under "transactions under common control" in "prior years' income".
At each financial position date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cashgenerating unit to which the asset belongs.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.
Impairment losses of continuing operations are recognised in the statement of profit or loss in expense categories consistent with the function of the impaired asset, except for properties previously revalued with the revaluation taken to other comprehensive income. For such properties, the impairment is recognised in other comprehensive income up to the amount of any previous revaluation.
When an impairment loss subsequently reversed, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.
Taxes include current period income tax liabilities and deferred tax liabilities. A provision is recognised for the current period tax liability based on the period results of the Company at the financial position date.
Deferred income tax is provided for in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. Currently enacted tax rates are used to determine deferred income tax.
Deferred tax liabilities are recognised for all taxable temporary differences, where deferred tax assets resulting from deductible temporary differences (including unused incentive amounts and carried forward tax losses of prior years) are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilised.
The parent company recognizes deferred tax asset for all deductible temporary differences arising from investments in Subsidiaries, only to the extent that:
The parent company recognizes deferred tax liability for all taxable temporary differences associated with investments in Subsidiaries except to the extent that both of the following conditions are satisfied:
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Government grants allowing reduced corporate tax payment are evaluated within the scope of TAS 12 Income Taxes standard and are recognised as deferred tax asset by the qualified tax advantage amount, to the extent it is highly probable that future taxable profits will be available against which the unused investment tax credits can be utilised.
The tax effects of the transactions that are accounted directly in the equity are also reflected to the equity.
When the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority with the condition of being same taxpayer entity and there is a legally enforceable right to set off current tax assets against current tax liabilities, deferred tax assets and deferred tax liabilities are offset accordingly.
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.
Where the effect of the time value of money is material, the amount of provision shall be the present value of the expenditures expected to be required to settle the obligation. The discount rate reflects current market assessments of the time value of money and the risks specific to the liability. The discount rate shall be a pre-tax rate and shall not reflect risks for which future cash flow estimates have been adjusted.
Possible assets or obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company are not included in the financial statements and treated as contingent assets or liabilities.
The Company records the present value of the estimated costs of legal and constructive obligations required to restore the operating places in the period in which the obligation occurred (Note 17). These restoration activities include the dismantling and removal of structures, the rehabilitation of mines and waste dams, the dismantling of operating facilities, the closure and restoration of factories and waste areas, and the remediation and greening of the affected areas. The requirement usually occurs when the asset is set up or the place / environment in the production area is adversely affected.
When the liability is first recorded, the present value of the estimated costs is capitalized by increasing the net book value of the relevant mining assets up to the amount at which the development / construction of the mine will take place. The liability that is discounted over time is increased by the change in the present value, which depends on the discount rates reflecting the market evaluations in the current period and the risks specific to the liability.
The periodic fluctuation of the discount is recognized as a financial cost in the income statement. Additional disruptions or changes in rehabilitation costs are reflected in the respective assets and rehabilitation liabilities as purchase or expense as they occur.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The provision for employment termination benefits, as required by Turkish Labour Law represents the present value of the future probable obligation of the Company arising from the retirement of its employees based on the actuarial projections.
The provision for severance pay represents the discounted value at the date of the statement of financial position of the estimated total provision for possible future liabilities arising from the retirement of the Company's employees in accordance with the Labor Law.
TAS 19 "Employee Benefits" requires actuarial assumptions (net discount rate, turnover rate to estimate the probability of retirement etc.) to estimate the entity's obligation for employment termination benefits. The effects of differences between the actuarial assumptions and the actual outcome together with the effects of changes in actuarial assumptions compose the actuarial gains / losses and recognised under the statement of other comprehensive income.
The Company has to pay contributions to the Social Security Institution on a mandatory basis. The Company has no further payment obligations once the contributions have been paid. These contributions are recognised as an employee benefit expense when they are accrued.
Liabilities arising from unused vacations of the employees are accrued in the period when the unused vacations are qualified.
Ordinary shares are classified in equity. Costs related to the issuance of new shares and options are recognized in equity with an amount equal to collected amount less tax effects.
Earnings per share disclosed in the income statement are determined by dividing net income attributable to equity holders of the parent by the weighted average number of shares outstanding during the period concerned.
In Türkiye, companies can increase their share capital through a pro-rata distribution of shares ("bonus shares") to existing shareholders from retained earnings and inflation adjustment to equity. For the purpose of earnings per share computations, the weighted average number of shares in existence during the period has been adjusted in respect of bonus share issues without a corresponding change in resources, by giving them retroactive effect for the period in which they were issued and each earlier period as if the event had occurred at the beginning of the earliest period reported.
Since the company has withdrawn shares in the current accounting period, the effect of these transactions is also taken into account in the calculation of earnings per share.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
In accordance with TFRS 15 "Revenue from Customer Contracts", effective from January 1, 2018, the Company has started to use the five-step model below to recognize revenue.
Company evaluates each contracted obligation separately and respective obligations, committed to deliver the distinct goods or perform services, are determined as separate performance obligations.
According to this model, firstly, the goods or services in the contract with the customers are assessed and each commitment for transfering the goods or services is determined as a separate performance obligation. Then it is assessed whether the performance obligations will be fulfilled at a point in time or over time. When the Company transfers control of a good or service over time, and therefore fulfilles a performance obligation over time, then the revenue is recognised over time by measuring the progress of completion. Revenue is recognized when control of the goods or services is transferred to the customers.
Following indicators are considered while evaluating the transfer of control of the goods and services:
The main activities of the Company are operating seven mines in five regions which are Ovacık-Bergama-İzmir, Çukuralan-İzmir, Kaymaz-Eskişehir, Mastra-Gümüşhane and Himmetdede-Kayseri, searching for gold mines generally in Türkiye regions and improving the mine fileds of on going projects.
The Company sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment. Due to the fact that the sales are made on demand and the customer is corporate, the Company effectively manages the receivable risk, taking into account the past experiences.
At contract inception, if the Company expects that the period between the transfer of the promised good or service and the payment is one year or less, the Company applies the practical expedient and does not make any adjustment for the effect of a significant financing component on the promised amount of consideration. On the other hand, when the contract effectively constitutes a financing component, the transaction price for these contracts is discounted, using the interest rate implicit in the contract. The difference between the discounted value and the nominal amount of the consideration is recognised on an accrual basis as other operating income.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash fows through the expected life of the financial asset to that asset's net carrying amount on initial recognition. Interest and foreign exchange gains and losses arising from trading transactions are recognized in other operating income and expense.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
At initial recognition Company classifies its financial assets in three categories as; financial assets measured at amortised cost, financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit of loss.
The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them.
With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit of loss:
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
The Company's financial assets at amortised cost includes cash and cash equivalents, trade receivables and other receivables.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through other comprehensive income when they are not held for trading. The classification is determined on an instrument-byinstrument basis. The Company elected to classify irrevocably its non-listed equity investments under this category .
The accounting policies below apply to gains and losses from subsequent measurements:
| Debt instruments measured at fair value through other comprehensive income |
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss. |
|---|---|
| Equity instruments | These assets are subsequently measured at fair value. Dividends are recognized as |
| measured at fair value | income in profit or loss unless the dividend clearly represents a recovery of part of |
| through other | the cost of the investment. Other net gains and losses are recognized in other |
| comprehensive income | comprehensive income and are never reclassified to profit or loss. |
All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as described above are measured at fair value through profit or loss.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Company's statement of financial position) when:
When the Company transfers a financial asset, it evaluates the extent to which it retains the risks and rewards of ownership of the financial asset. When the Company has transferred its contractual rights to receive cash flows from an asset and neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of its continuing involvement.
The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss.
ECLs are recognised in two stages:
For trade receivables, other receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The expected credit losses were calculated based on a provision matrix that is based on the Company's historical credit loss experience, considering for forward-looking factors.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Financial instruments (continued)
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables.
For purposes of subsequent measurement, financial liabilities are classified in two categories:
This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by TFRS 9. Gains and losses are recognised in the statement of profit or loss.
After initial recognition, borrowings and trade and other payables are subsequently measured at amortised cost using the effective inerest rate method. Gains and losses are recognised in the statement of profit or loss.
A financial liability is derecognised 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 the derecognition of the original liability and the recognition of a new liability.
Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Government grants along with investment, research and development grants are accounted on accrual basis with their fair values when the application of grants is approved. These grants are accounted for as deferred income in the statement of financial position and are credited to income statement on a straight-line basis over the expected lives of related assets. Government grants allowing reduced corporate tax practice are evaluated within the scope of TAS 12 Income Taxes standard.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Cash flows during the period are classified and reported by operating, investing and financing activities in the cash flow statements.
Cash flows from operating activities represent the cash flows generated from the Company's activities. Cash flows related to investing activities represent the cash flows that are used in or provided from the investing activities of the Company (tangible and intangible assets and financial assets). Cash flows arising from financing activities represent the cash proceeds from the financing activities of the Company and the repayments of these funds.
The Company adjusts the amounts recognised in its financial statements to reflect the adjusting events after the financial position date. If non-adjusting events after the financial position date have material influence on the economic decisions of users of the financial statements, they are disclosed in the notes to the financial statements.
To be designated as a reportable segment, an operating segment's reported revenue, including sales to external customers and intersegment sales or transfers, must be 10 percent or more of the total revenue of all operating segments, both internal and external, its reported profit or loss must be 10 percent or more of the total assets of all operating segments, or its assets must be 10 percent or more of the total assets of all operating segments. If management believes that the information about the segment will be useful to financial statement users, operating segments that do not meet any of the above numerical thresholds may also be considered as reportable segments and information about them may be disclosed separately. Therefore, in line with the relevant provisions in TFRS 8, "Operating Segments", the Company has a single reportable operating segment and financial information is not reported according to operating segments.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
In the preparation of financial statements, the Company management requires the use of estimates and assumptions that may affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the amounts of income and expenses reported during the accounting period. Accounting judgments, estimates and assumptions are continuously evaluated by considering past experience, other factors and reasonable expectations about future events under current conditions. Necessary corrections are made and presented in the profit or loss statement in the period when it realized. Although these estimates and assumptions are based on management's best knowledge of current events and transactions, actual results may differ from their assumptions.
a) Mining assets consists of mine site development costs, mining rights, mining lands, deferred stripping costs and discounted costs associated with the improvement, rehabilitation and closure of mine sites. Mining assets are accounted in the consolidated financial statements with their net book value after deducting the accumulated depreciation and permanent impairment, if any, from their acquisition costs. Mining assets start to be amortized on a production basis according to producible ore reserve with the commencement of production. The depreciation expenses of the mining assets are associated with the production costs on the basis of the relevant mining sites.
Within the scope of long-term plan studies, which are regularly updated, the Company conducts studies to determine the remaining reserves of mining assets, production-based depreciation calculations, and rehabilitation provisions within this scope.
The Company management reviews the estimates made in relation to the visible and probable mineral reserves in each balance sheet period. In certain periods, the Company management has independent professional valuation companies make valuation studies in accordance with the Australian Exploration Results, Mineral Resources and Gold Reserves 2012 Standards ("JORC") to determine the amount of visible, possible and probable mineral reserves and It is updated by or under the supervision of persons who have the competencies specified in. The reserves and resource amounts in question have been audited and approved by the independent professional valuation company "SRK Consulting" in line with the "JORC" standards as of December 31, 2023. Inspection of reserves and resources according to UMREK standards has been completed and approved as of December 31, 2023.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Within the scope of these studies, the assumptions and methods used in determining the mineral reserves contain some uncertainties (such as gold prices, exchange rates, geographic and statistical variables), and the assumptions and methods developed in relation to the mineral reserve may change significantly depending on the availability of new information. The cost and depreciation of mining assets are adjusted prospectively based on these updates.
The impairment tests performed by the Company management depend on the management's estimates about the future gold prices, current market conditions, exchange rates and pre-tax discount rate together with the relevant project risk. The recoverable value of the cash-generating units is determined as the higher one from the use value of the relevant cash-generating unit or its fair value after deducting sales costs. These calculations require the use of some assumptions and estimates. Changes in assumptions and estimates based on gold prices may affect the useful life of mines, and conditions may arise that may require adjustment on the carrying values of both goodwill and related assets.
Assets are grouped as independent and smallest cash generating units. If an impairment indicator is determined, estimates and assumptions are established for the cash flows to be obtained from each cashgenerating unit determined. Impairment tests of both tangible assets and goodwill contain a certain amount of uncertainty due to the estimates and assumptions used. This uncertainty arises from the amount of visible and possible workable gold reserves used, current and future predicted gold prices, discount rates, exchange rates and estimated production costs.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
c) Amount of provisions reflected in consolidated financial statements regarding environmental rehabilitation, improvement of mine sites and closure of mine sites is based on the plans of the Company management and the requirements of the relevant legal regulations. Changes in the aforementioned plans and legal regulations, up-to-date market data and prices, discount rates used, changes in estimates based on mineral resources and reserves may affect provisions.
As of December 31, 2024, the Company reassessed the provision amounts due to changes in discount rates, costs, production areas subject to rehabilitation and reserve lifetimes. The Company evaluates the mine rehabilitation provision annually. Significant estimates and assumptions are made in determining the provision for mine rehabilitation due to the large number of factors that may affect the final liability to be paid. These factors include estimates of the scope and cost of rehabilitation activities, technological changes, changes in regulations, cost increases proportional to inflation rates and changes in net discount rates (December 31, 2024: 4.33%, December 31, 2023: 5.35%). These uncertainties may cause future expenditures to differ from the amounts estimated today.
The provision amount at the reporting date represents the best estimate of the present value of future rehabilitation costs. Changes in estimated future costs are accounted in the balance sheet by increasing or decreasing the rehabilitation obligation or asset if the initial estimate was initially recognized as part of an asset measured in accordance with TAS 16 Property, plant and equipment. Any reduction in the rehabilitation obligation and hence any reduction in the rehabilitation asset cannot exceed the carried value of that asset. In case of excess, the amount exceeding the carried value is immediately taken to profit or loss.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Cash | 18 | 219 |
| Banks | ||
| - Demand deposits | 34.260 | 365.994 |
| - Time deposits | 73.087 | 9.302 |
| Total | 107.365 | 375.515 |
| Less: Interest accruals | (496) | (1.994) |
| Cash and cash equivalents presented in the cash flow statement | 106.869 | 373.521 |
The details of the Company's time deposits as of December 31, 2024 are as follows;
| Currency | Interest rate | Maturity | Currency amount | TL Equivalent |
|---|---|---|---|---|
| TL | %46,00 - %50,00 | 1-30 Days | 73.087 | 73.087 |
| Total | 73.087 |
The details of the Company's time deposits as of December 31, 2023 are as follows;
| Currency | Interest rate | Maturity | Currency amount | TL Equivalent |
|---|---|---|---|---|
| TL | %35,00 - %45,00 | 1-30 Days | 9.302 | 9.302 |
| Total | 9.302 |
The Company's blocked deposits of 24,612 Thousands TL have been presented under financial investments account (December 31, 2023: 109,363 Thousands TL).
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The trade receivables of the Company as of December 31, 2024 and 2023 are as follows;
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Trade receivables Provision for doubtful trade receivables (-) |
64.521 (61.388) |
90.594 (90.006) |
| Total | 3.133 | 588 |
The movement of provision for doubtful trade receivables is as follows;
| 2024 | 2023 | |
|---|---|---|
| January 1 | 90.006 | 172.781 |
| Year additions | 513 | 1.324 |
| Provisions no longer required | (1.153) | (19.104) |
| Monetary gain | (27.978) | (64.995) |
| December 31 | 61.388 | 90.006 |
The trade payables of the Company as of December 31, 2024 and 2023 are as follows;
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Trade payables | 199.086 | 431.808 |
| Total | 199.086 | 431.808 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The other receivables of the Company as of December 31, 2024 and 2023 are as follows;
| December 31, 2024 | December 31, 2023 | ||
|---|---|---|---|
| VAT refund receivables Other miscellaneous receivables |
4.348 424 |
220.337 919 |
|
| Total | 4.772 | 221.256 | |
| ii- | Long-term other receivables | ||
| a- | Other receivables from related parties | ||
| December 31, 2024 | December 31, 2023 | ||
| Other receivables from related parties (Note 27) | 43.772 | 1.110.439 | |
| Total | 43.772 | 1.110.439 | |
| b- | Other receivables form third parties | ||
| December 31, 2024 | December 31, 2023 | ||
| Deposits and guarantees given | 4.085 | 4.520 | |
| Total | 4.085 | 4.520 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The inventories of the Company as of December 31, 2024 and 2023 are as follows;
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Gold and silver in the production process and gold and silver bars Ready to be processed and mined ore clusters Chemicals and operating materials |
1.649.425 820.917 296.270 |
1.149.138 537.781 273.317 |
| Total | 2.766.612 | 1.960.236 |
The prepaid expenses of the Company as of December 31, 2024 and December 31, 2023 are as follows;
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Advances given | 28.340 | 333.616 |
| Costs for the future months (*) | 109.364 | 84.514 |
| Total | 137.704 | 418.130 |
| ii- Long-term prepaid expenses |
||
| December 31, 2024 | December 31, 2023 | |
| Advances given (**) | 1.528.499 | 2.808.933 |
| Costs for the coming years (*) | 4.094 | 1.186 |
| Total | 1.532.593 | 2.810.119 |
(*) The company's expenses consist of rental fees and insurance costs for the coming years.
(**) Of the advances given, TL 1,118,407 thousand relates to advance payments made within the scope of the Company's ongoing Ağrı province Mollakara Gold Mine Project.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The other current assets of the Company as of December 31, 2024 and December 31, 2023 are as follows;
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Job advances given Advances given to personnel |
325 769 |
1.264 1.491 |
| Total | 1.094 | 2.755 |
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Spare parts and other materials (*) | 900.995 | 823.003 |
| Total | 900.995 | 823.003 |
(*) It consists of spare parts, materials and operating materials that are generally consumed over a period of more than one year.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The short term financial investments of the Company as of December 31, 2024 and December 31, 2023 are as follows;
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Currency protected time deposits () Financial assets accounted at fair value under profit or loss (*) |
2.584.743 8.430.119 |
2.035.543 11.511.029 |
| Total | 11.014.862 | 13.546.572 |
The long term financial investments of the Company as of December 31, 2024 and December 31, 2023 are as follows;
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Shares in subsidiaries (*) Blocked deposits |
2.476.094 284.393 |
2.476.094 931.105 |
| Total | 2.760.487 | 3.407.199 |
(*) With the decisions taken at the General Assembly meeting held on September 11, 2015 and the amendment of the articles of association on the same date of Koza Ltd. which is the subsidiary of the Company with 100% share, two A Group shares each worth 1 GBP ("GBP") and the control has transferred to A Group shareholders. Pursuant to the amendment to the articles of association made as of September 11, 2015, savings regarding all operational and managerial activities of Koza Ltd., decision and approval of the articles of association, approval of liquidation transactions and share transfer transactions, etc. rights are given to directors. As a result of the mentioned changes, the Company has lost the control over Koza Ltd. and Koza Ltd. was excluded from the scope of consolidation. It has been accounted in the financial statements at cost since the date the control has ended. As of the report date, fair value measurement could not be calculated due to uncertainties arising from the ongoing legal processes about Koza Ltd.
A legal process has been initiated by the CMB with the decision dated February 4, 2016 regarding the General Assembly and the resolutions taken, in cases where the final judicial decisions regarding this decision differ from the initially recorded amounts, these differences will be accounted in the period determined.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The right of use assets of the Company as of December 31, 2024 and 2023 are as follows;
| January 1, 2024 |
Addition | Disposals | Contract change impact |
December 31, 2024 |
|
|---|---|---|---|---|---|
| Cost: | |||||
| Buildings | 87.006 | - | (49.287) | (5.057) | 32.662 |
| Vehicles | 240.140 | - | (240.140) | - | - |
| Total | 327.146 | - | (289.427) | (5.057) | 32.662 |
| Accumulated amortization: | |||||
| Buildings | 66.216 | 7.886 | (49.287) | - | 24.815 |
| Vehicles | 230.026 | - | (230.026) | - | - |
| Total | 296.242 | 7.886 | (279.313) | - | 24.815 |
| Net book value | 30.904 | 7.847 | |||
| January 1, 2023 |
Addition | Disposals | Contract change impact |
December 31, 2023 |
|
| Cost: | |||||
| Buildings | 97.484 | - | - | (10.478) | 87.006 |
| Vehicles | 244.248 | - | - | (4.108) | 240.140 |
| Total | 341.732 | - | - | (14.586) | 327.146 |
| Accumulated amortization: |
|||||
| Buildings | 56.219 | 9.997 | - | - | 66.216 |
| Vehicles | 164.334 | 65.692 | - | - | 230.026 |
| Total | 220.553 | 75.689 | - | - | 296.242 |
| Net book value | 121.179 | 30.904 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The investment properties of the Company as of December 31, 2024 and 2023 are as follows;
| January 1, 2024 | Addition | Disposals | Impairment | December 31, 2024 | |
|---|---|---|---|---|---|
| Cost | |||||
| Buildings | - | 1.412.037 | - | (21.687) | 1.390.350 |
| Total | - | 1.412.037 | - | (21.687) | 1.390.350 |
| Accumulated amortization | |||||
| Buildings | - | - | - | - | - |
| Total | - | - | - | - | - |
| Net book value | - | 1.390.350 | |||
| January 1, 2023 | Addition | Disposals | Transfers | December 31, 2023 | |
| Cost | |||||
| Buildings | 1.263.267 | - | (1.127.275) | (135.992) | - |
| Total | 1.263.267 | - | (1.127.275) | (135.992) | - |
| Accumulated amortization | |||||
| Buildings | 180.379 | 5.672 | (166.509) | (19.542) | - |
| Total | 180.379 | 5.672 | (166.509) | (19.542) | - |
| Net book value | 1.082.888 | - |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The property, plant and equipment of the Company as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Mining assets Other tangible assets |
2.278.386 7.960.406 |
2.246.685 4.757.974 |
| Total | 10.238.792 | 7.004.659 |
As of December 31, 2024 and December 31, 2023, mining assets consists of mining rights, mine site development costs, deferred stripping costs, mining sites, and closing and rehabilitation of mines, and the net book values of these mining assets are as follows.
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Mining sites | 196.297 | 143.281 |
| Mine site development cost | 1.590.043 | 1.456.481 |
| Deferred stripping costs | - | 142.977 |
| Rehabilitation of mining facility | - | 108.444 |
| Mining rights | 492.046 | 395.502 |
| Total | 2.278.386 | 2.246.685 |
The movements of mining assets are as follows;
| January 1, 2024 |
Addition | Disposals | Inflation effect (*) |
December 31, 2024 |
|
|---|---|---|---|---|---|
| Cost | |||||
| Mining sites | 735.975 | 70.960 | (1.815) | - | 805.120 |
| Mine site development costs | 6.957.238 | 246.768 | - | - | 7.204.006 |
| Deferred stripping costs | 2.568.524 | - | - | - | 2.568.524 |
| Rehabilitation of mining facility | 633.577 | 174.505 | - | (194.747) | 613.335 |
| Mining rights | 595.159 | 96.833 | - | - | 691.992 |
| Total | 11.490.473 | 589.066 | (1.815) | (194.747) | 11.882.977 |
| Accumulated depreciation | |||||
| Mining sites | 592.694 | 16.129 | - | - | 608.823 |
| Mine site development costs | 5.500.757 | 113.206 | - | - | 5.613.963 |
| Deferred stripping costs | 2.425.547 | 142.977 | - | - | 2.568.524 |
| Rehabilitation of mining facility | 525.133 | 249.616 | - | (161.414) | 613.335 |
| Mining rights | 199.657 | 289 | - | - | 199.946 |
| Total | 9.243.788 | 522.217 | - | (161.414) | 9.604.591 |
| Net book value | 2.246.685 | 2.278.386 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| January 1, | Inflation | December 31, | |||
|---|---|---|---|---|---|
| 2023 | Addition | Disposals | effect (*) | 2023 | |
| Cost | |||||
| Mining sites | 735.762 | 213 | - | - | 735.975 |
| Mine site development costs | 6.817.959 | 139.279 | - | - | 6.957.238 |
| Deferred stripping costs | 2.456.763 | 111.761 | - | - | 2.568.524 |
| Rehabilitation of mining facility | 894.886 | 90.474 | - | (351.783) | 633.577 |
| Mining rights | 640.905 | 43.187 | (88.933) | - | 595.159 |
| Total | 11.546.275 | 384.914 | (88.933) | (351.783) | 11.490.473 |
| Accumulated depreciation | |||||
| Mining sites | 560.214 | 32.480 | - | - | 592.694 |
| Mine site development costs | 5.366.589 | 134.168 | - | - | 5.500.757 |
| Deferred stripping costs | 2.357.511 | 68.036 | - | - | 2.425.547 |
| Rehabilitation of mining facility | 780.631 | 51.371 | - | (306.869) | 525.133 |
| Mining rights | 288.364 | 226 | (88.933) | - | 199.657 |
| Total | 9.353.309 | 286.281 | (88.933) | (306.869) | 9.243.788 |
| Net book value | 2.192.966 | 2.246.685 |
(*) The reclamation, rehabilitation and closure costs of the mine sites resulting from open pit mining site development activities and open pit production, according to their current conditions, are not indexed and are evaluated in US Dollar values.
All depreciation expenses are included in the cost of goods produced.
There isn't any mortgage on mining assets as of December 31, 2024 (December 31, 2023: None).
The costs of the mine sites, mining rights and mine site development costs of the Company, which have been fully depreciated as of December 31, 2024, but are in use, are amounting to thousand TL 4,147,650. (December 31, 2023: TL 3,460,273).
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Movements of other tangible assets during the period as of December 31, 2024 and 2023 are as follows;
| January 1, 2024 |
Addition | Disposals | Transfers (*) | December 31, 2024 |
|
|---|---|---|---|---|---|
| Cost | |||||
| Land, buildings and land improvements |
3.890.550 | 97.944 | (2.933) | 59.100 | 4.044.661 |
| Machinery and equipment | 9.624.776 | 308.791 | (50.816) | 5.558 | 9.888.309 |
| Motor vehicles | 1.813.443 | 181.751 | (4.603) | (175.320) | 1.815.271 |
| Furnitures and fixtures | 723.131 | 16.409 | (426) | 4.353 | 743.467 |
| Construction in progress(**) | 609.224 | 3.362.827 | (4.139) | (141.015) | 3.826.897 |
| Total | 16.661.124 | 3.967.722 | (62.917) | (247.324) | 20.318.605 |
| Accumulated depreciation | |||||
| Buildings and land improvements | 2.337.104 | 134.755 | - | - | 2.471.859 |
| Machinery and equipment | 7.928.135 | 178.824 | (35.987) | - | 8.070.972 |
| Motor vehicles | 1.071.261 | 304.727 | (3.626) | (175.320) | 1.197.042 |
| Furnitures and fixtures | 566.650 | 52.102 | (426) | - | 618.326 |
| Total | 11.903.150 | 670.408 | (40.039) | (175.320) | 12.358.199 |
| Net book value | 4.757.974 | 7.960.406 |
There isn't any mortgage on other tangible assets as of December 31, 2024 (December 31, 2023: None).
There are annotations on the Gümüşhane dormitory building (net value of 135,992 Thousand TL as of December 31, 2024) by the General Directorate of National Real Estate.
As of December 31, 2024, the insurance paid on the tangible assets of the Company is thousand TL 23,245 (December 31, 2023: thousand TL 3,423).
The cost of other tangible assets of the Company, which have been fully depreciated as of December 31, 2024, but are in use, is amounting to thousand TL 9,522,463 (December 31, 2023: TL 5,939,103).
Except for the ongoing fixed expenses related to the Mastra field, the operations of which have been discontinued, depreciation expenses are included in the cost of goods produced and general administrative expenses. There is no capitalized financing expense in tangible fixed assets.
(*) As of December 31, 2024, the capitalized license software expenses (72,004 thousand TL) have been transferred to other intangible assets, and the vehicles (cost of 175,320 thousand TL) od which net book value of zero have been transferred to assets held for sale.
(**) The company has made an investment decision for Mollakara Project for gold and silver production within the scope of Mollakara Gold Mine Project in Diyadin District of Ağrı Province. The construction in progress made during the year are mostly related to the this Project.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| January 1, 2023 |
Addition | Disposals | Transfers | December 31, 2023 |
|
|---|---|---|---|---|---|
| Cost | |||||
| Land, buildings and land improvements |
3.825.663 | 47.681 | (246.488) | 263.694 | 3.890.550 |
| Machinery and equipment | 10.063.152 | 305.151 | (758.993) | 15.466 | 9.624.776 |
| Motor vehicles | 1.335.651 | 512.813 | (35.021) | - | 1.813.443 |
| Furnitures and fixtures | 841.855 | 34.511 | (163.594) | 10.359 | 723.131 |
| Construction in progress | 171.120 | 600.621 | (2.328) | (160.189) | 609.224 |
| Total | 16.237.441 | 1.500.777 | (1.206.424) | 129.330 | 16.661.124 |
| Accumulated depreciation | |||||
| Buildings and land improvements | 2.403.910 | 80.677 | (167.025) | 19.542 | 2.337.104 |
| Machinery and equipment | 8.356.354 | 316.664 | (744.883) | - | 7.928.135 |
| Motor vehicles | 893.993 | 210.752 | (33.484) | - | 1.071.261 |
| Furnitures and fixtures | 662.556 | 62.916 | (158.822) | - | 566.650 |
| Total | 12.316.813 | 671.009 | (1.104.214) | 19.542 | 11.903.150 |
| Net book value | 3.920.628 | 4.757.974 |
As of December 31, 2024 and December 31, 2023 the details of the Company's intangible assets are as follows:
| December 31, 2024December 31, 2023 | ||
|---|---|---|
| Goodwill related to Newmont Gold purchase | - | 137.525 |
| Total | - | 137.525 |
The Company purchased 99.84% of Newmont Altın's shares in order to gain competitive advantage and create synergy by benefiting from the mining fields owned by Newmont Altın on June 28, 2010, in accordance with the "Share Purchase Agreement" with Newmont Overseas and Canmont. As of the same date, control of Newmont Altın was transferred to Koza Altın. As a result of the evaluations made by the management, goodwill has been recognized in the profit or loss statement as of December 31, 2024.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The details of the Company's other intangible assets as of December 31, 2024 and 2023 are as follows:
| January 1, 2024 |
Additions | Disposals | Transfers | December 31, 2024 |
|
|---|---|---|---|---|---|
| Costs | |||||
| Rights | 149.593 | 2.218 | (94) | 72.004 | 223.721 |
| Total | 149.593 | 2.218 | (94) | 72.004 | 223.721 |
| Accumulated depreciation | |||||
| Rights | 131.980 | 53.340 | (94) | - | 185.226 |
| Total | 131.980 | 53.340 | (94) | - | 185.226 |
| Net book value | 17.613 | 38.495 | |||
| January 1, 2023 |
Additions | Disposals | Transfers | December 31, 2023 |
|
| Costs | |||||
| Rights | 166.717 | 19.969 | (43.755) | 6.662 | 149.593 |
| Total | 166.717 | 19.969 | (43.755) | 6.662 | 149.593 |
| Accumulated depreciation | |||||
| Rights | 155.847 | 19.888 | (43.755) | - | 131.980 |
| Total | 155.847 | 19.888 | (43.755) | - | 131.980 |
| Net book value | 10.870 | 17.613 |
Depreciation expenses are included in the cost of goods produced and general administrative expenses.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Short-term lease liabilities Long-term lease liabilities |
4.910 1.339 |
11.686 9.047 |
| Total | 6.249 | 20.733 |
Movement of lease liabilities for the year ended on December 31, 2024 and 2023 is as follows:
| 2024 | 2023 | |
|---|---|---|
| January 1 | 20.733 | 84.251 |
| Paid during the period | (13.640) | (45.310) |
| Interest accrued | 5.529 | 7.474 |
| Monetary gain | (6.373) | (25.682) |
| December 31 | 6.249 | 20.733 |
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Social Security Institution premiums to be paid | 76.704 | 75.261 |
| Taxes and funds payable | 43.089 | 66.796 |
| Due to personnel | 33.692 | 28.690 |
| Total | 153.485 | 170.747 |
The details of the Company's other payables as of December 31, 2024 and 2023 are as follows:
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Other payables due to related parties (*) (Note 27) Other payables due to third parties |
105.696 46.480 |
771 470 |
| Total | 152.176 | 1.241 |
(*) It consists of debts related to the purchase of real estates located in Istanbul Province Beşiktaş District Bebek Neighborhood, island 1259, parcel 132 and 133 and in Ankara Province Çankaya District, island 28371, parcel 1 from Koza İpek Holding A.Ş.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Other payables due to third parties (*) | 193.419 | 233.391 |
| Total | 193.419 | 233.391 |
(*) Koza Altın has paid 538 thousand USD and 2.462 thousand USD, which constitute part of the total purchase price of 8.500 thousand US dollars, for 99.84% Newmont Altın shares, on June 28, 2010 and July 2, 2010, respectively. The remaining 5.500 thousand USD of the purchase price, 3.000 thousand USD will be paid after the start of the Diyadin project, which is planned for at least one year after the balance sheet date, and the remaining 2.500 thousand USD will be paid one year after the second payment.
As of December 31, 2024 and 2023, the details of the Company's provisions, contingent assets and liabilities are as follows:
| December 31, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| State right expense provision | 729.192 | 792.595 |
| Provisions for lawsuit | 329.610 | 201.407 |
| Environmental rehabilitation, rehabilitation of mining sites | ||
| and mine closure provision | 95.245 | 181.047 |
| Other provisions | 2.533 | 23.431 |
| Total | 1.156.580 | 1.198.480 |
| The movement table for state right expense provision is as follows; | ||
| 2024 | 2023 | |
| January 1 | 792.595 | 1.066.129 |
| Paid during the period | (598.285) | (791.602) |
| Effect of changes in estimates and assumptions | (173.548) | (190.406) |
| Additions | 952.056 | 1.127.575 |
| Monetary gain | (243.626) | (419.101) |
| December 31 | 729.192 | 792.595 |
| The movement table for provision for lawsuits is as follows; | ||
| 2024 | 2023 | |
| January 1 | 201.407 | 121.655 |
| Additions / (cancellations), net | 213.781 | 167.730 |
| Monetary gain | (85.578) | (87.978) |
| December 31 | 329.610 | 201.407 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Environmental rehabilitation, rehabilitation of mining sites and mine closure provision |
682.024 | 473.100 |
| Total | 682.024 | 473.100 |
The movement table for environmental rehabilitation, rehabilitation of mining sites and provision for mine closure is as follows;
| 2024 | 2023 | |
|---|---|---|
| January 1 | 654.147 | 871.683 |
| Paid during the period | (393.584) | (68.922) |
| Discount effect | 47.537 | 14.612 |
| Effect of changes in estimates and assumptions | 720.459 | 162.504 |
| Monetary gain | (251.290) | (325.730) |
| December 31 (*) | 777.269 | 654.147 |
(*) The amount of provisions reflected to the financial statements for environmental rehabilitation, reclamation and closure of mine sites is based on the plans of the Company management and the requirements of the relevant legal regulations, changes in the plan and legal regulations, current market data and prices, discount rates used, mineral resources and regulations. Changes in estimates based on reserves may affect provisions. As with reserve and resource amounts, rehabilitation provision amounts are evaluated by SRK Consulting and provision figures are determined in US Dollars.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Provision for unused vacation | 43.877 | 38.016 |
| Total | 43.877 | 38.016 |
| The movement of provision for unused vacation is as follows; | ||
| 2024 | 2023 | |
| January 1 | 38.016 | 75.461 |
| Additions / (cancellations), net | 19.959 | (7.781) |
| Monetary gain | (14.098) | (29.664) |
| December 31 | 43.877 | 38.016 |
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Provision for employee termination benefits | 206.736 | 200.520 |
| Total | 206.736 | 200.520 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Under the Turkish Labour Law, the Company is required to pay employment termination benefits to each employee who has qualified for such benefits as the employment ended. Also, employees who are entitled to a retirement are required to be paid retirement pay in accordance with Law No: 2422 dated March 6, 1981 and No: 4447 dated August 25, 1999 and the amended Article 60 of the existing Social Insurance Code No: 506. Some transition provisions related to the pre-retirement service term were excluded from the law since the related law was changed as of May 23, 2002.
The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the real rate net of expected effects of inflation. The severance pay ceiling is revised in every six months, and the ceiling amount of TL 41,828.42 (2023: TL 23,489.83) was taken into consideration in the calculation of the provision for severance pay. TFRS requires actuarial valuation methods to be developed to estimate the provision for severance pay. Accordingly, the following actuarial assumptions were used in the calculation of the total liability:
| December 31, | December 31, | ||
|---|---|---|---|
| 2024 | 2023 | ||
| Net discount rate | 3,35% | 2,00% | |
| Probability of qualifying for seniority | 95,03% | 94,41% |
The movements of the provision for severance pay within the accounting periods of December 31, 2024 and 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| January 1 | 200.520 | 253.639 |
| Interest cost | 47.485 | 42.579 |
| Service cost | 21.946 | 30.186 |
| Prior period service cost (*) | - | 4.710 |
| Severance paid | (157.004) | (89.698) |
| Actuarial loss | 151.793 | 56.026 |
| Monetary gain | (58.004) | (96.922) |
| December 31 | 206.736 | 200.520 |
(*) The regulation that lifts the retirement age requirement for employees who started work before September 8, 1999 was published in the Official Gazette on March 3, 2023. Accordingly, those employees who have completed the number of premium days and insurance period are entitled to retire. The amount in question is the past service cost of the personnel who are considered to be at retirement age due to the regulation considered as a plan change.
Severance pay liability is not legally subject to any funding. Provision for severance pay is calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of the employees. TAS 19 ("Employee Benefits") stipulates the development of Group's liabilities within the scope of defined benefit plans by using actuarial valuation methods. The sensitivity analysis of the important assumptions used in the calculation of the provision for employee termination benefits as of December 31, 2024 and 2023 is as follows:
| Discount rate | Rate of retirement | |||
|---|---|---|---|---|
| 0,50% increase | 0,50% decrease | 0,50% increase | 0,50% decrease | |
| December 31, 2024 | (30.058) | 37.182 | 8.810 | (8.077) |
| Discount rate | Rate of retirement | |||
| 0,50% increase | 0,50% decrease | 0,50% increase | 0,50% decrease | |
| December 31, 2023 | (27.539) | 33.861 | 7.983 | (7.271) |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
These lawsuits are related to the expansion of the activities in some licensed fields and / or the permits and licenses of the new areas to be operated.
A lawsuit numbered 2017/1656 E. was filed against the Ministry of Environment and Urbanization at the İzmir 6th Administrative Court for the cancellation of the positive EIA report given for the Çukuralan Operation 3rd Capacity Increase Project, and the Company intervened in the lawsuit. The court decided to cancel the transaction in question, and as a result of the appeal review, the Council of State found the decision of the local court to be incorrect and overturned the decision in favor of the Company. While the trial is continuing at the İzmir 6th Administrative Court on the basis of case number 2019/574, the court decided to cancel the said transaction with its decision dated February 23, 2021. The decision has been appealed. A lawsuit numbered 2019/1120 E. was filed at the İzmir 6th Administrative Court for the stay of execution and cancellation of the positive Environmental Impact Assessment (EIA) Decision given by the Ministry of Environment and Urbanization regarding the Çukuralan Gold Mine Operation 3rd capacity increase 2009/7 project. The company has intervened in the relevant case alongside the defendant Ministry. The previous main file number and court of the relevant case is İzmir 3rd Administrative Court 2019/171 E. and due to the connection with the relevant case Çukuralan 3rd Capacity Increase file, the main file record was closed by the decision of İzmir Regional Administrative Court 4th Administrative Litigation Department and due to the connection, İzmir 3rd Administrative Court decided to send it to İzmir 6th Administrative Court. While the relevant case continues with İzmir 6th Administrative Court number 2019/1120 E., according to the decision given by the court, the positive EIA decision in question was annulled and an appeal was filed. At this point, according to the Council of State decision, for the file 2019/574 E., it was concluded that due to the fact that a second positive EIA decision was given regarding the project in question, it was not possible to apply two different positive EIA decisions regarding the same project together, that the defendant Ministry should accept that the EIA positive decision in question was implicitly withdrawn, and that the subject of the ongoing case was no longer a subject, therefore, it was definitely decided that the decision numbered 2019/574 E. of the İzmir 6th Administrative Court should be overturned and that there was no need to give a decision; and for the file 2019/1120 E., it was definitely decided that there was no legal error in the part of the decision of the İzmir 6th Administrative Court regarding the cancellation of the transaction in question, and that the appeal requests of the defendant Ministry and the intervening company as well as the defendant Ministry should be rejected.
In addition, the company intervened in the lawsuit filed by some plaintiffs against the Governorship of Izmir for the annulment of the Environmental Impact Assessment Not Required decision given for the Çukuralan Gold Mine Crushing and Screening Facility Project planned to be built by the company in the Izmir 6th Administrative Court file numbered 2020/1479 E., and it was decided to partially accept and partially reject the appeal requests of the intervening company.
The company intervened in the relevant case alongside the defendant ministry in both files, and in both files, the court ruled to reject the case on the grounds that the EIA positive decision was in accordance with the law. The decision given in the file numbered 2021/1407 E. of the Izmir 4th Administrative Court and the file numbered 2021/1013 E. of the Izmir 4th Administrative Court was appealed by the plaintiffs, and as a result of the appeal trial, the plaintiffs' appeal request was accepted, and since a more detailed examination was required procedurally, the first instance court decision was overturned by a majority vote against the company, and the file was sent to the first instance court for a more detailed examination. The file numbered 2021/1407 E. of the Izmir 4th Administrative Court has received the number 2023/1278 E. of the Izmir 4th Administrative Court, and the file numbered 2021/1013 E. of the Izmir 4th Administrative Court has received the number 2023/1294 E. of the Izmir 4th Administrative Court.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
In both files, the court decided to cancel the transaction in question. The defendant administration and the company appealed the decision given in file numbered 2023/1294 E. of the İzmir 4th Administrative Court. The file is being viewed through the Council of State 4th Chamber Presidency file numbered 2024/1085 E. The defendant administration and the company requested a stay of execution during the appeal period, and the request for a stay of execution was rejected by the Council of State 4th Chamber Presidency with its decision dated March 28, 2024. The appeal hearing is ongoing. The decision given in file numbered 2023/1278 E. of the İzmir 4th Administrative Court was notified to the parties and the company applied for an appeal. The file is being viewed through the Council of State 4th Chamber Presidency file numbered 2024/1769 E. The defendant administration and the company requested a stay of execution during the appeal period, and the request for a stay of execution was rejected by the 4th Chamber of the Council of State with its decision dated May 16, 2024. The company objected to the decision in question with a petition dated 16 June 2024, and the objection to the decision of the Council of State 4th Chamber Presidency regarding the rejection of the request for a stay of execution dated 4 July 2024 was rejected without examination.
As a result of the appeal trial held by the 4th Chamber of the Council of State with the files numbered 2024/1769 and 2024/1085; with the decision numbered 2024/1085 E., 2024/5582 K. of the 4th Chamber of the Council of State; it was decided to accept the appeal request, to overturn the decision numbered 2023/1294 E., 2024/267 K. given by the İzmir 4th Administrative Court dated 14 February 2024, and to reject the case.
Again, with the decision numbered 2024/1769 E., 2024/5583 K. of the Council of State 4th Chamber; it was decided to accept the appeal request, to overturn the decision numbered 2023/1278 E., 2024/520 K. dated 27 March 2024 given by the Izmir 4th Administrative Court, and to reject the case.
In the lawsuit filed for the annulment and suspension of the EIA positive decision regarding the S: 201001197 Gold and Silver Mine Project, which is planned to be made in the vicinity of Serçiler and Terziler villages in the central district of Çanakkale, the company intervenes with the Ministry of Environment and Urbanization within the case number 2020/763 E. At the current stage, Çanakkale 1st Administrative Court decided to cancel the act subject to the lawsuit, an appeal was filed against the decision. It has been decided to definitely reject the appeal requests of the intervening company.
Legal proceedings have been initiated against the amendment of the articles of association, establishment of privileged shares and change of board of directors of Koza Ltd., headquartered in London, in which the Company has 100% shares, and the legal proceedings are ongoing in the London courts. In the decision taken on January 23, 2019 in the file numbered 2017/349 E. of the Ankara 10th Commercial Court of First Instance, it was decided that 60,000,000 British Pounds Sterling be collected from the defendants and paid to Koza Altın İşletmeleri A.Ş. together with the interest accrued as of September 1, 2015 in accordance with Article 4/a of Law No. 3095, with the right to appeal within two weeks from the notification of the decision. Against this decision, the defendants appealed, and the Ankara Regional Court of Justice 21st Civil Chamber ruled with its decision numbered 2019/699 E. and 2019/1189 K. that the defendants' appeal application should be deemed not to have been made due to procedural reasons. The defendants appealed against this decision. The Supreme Court of Appeals ruled to quash the file due to procedural reasons. The Ankara 10th Commercial Court of First Instance ruled with its additional decision that the defendants' appeal application should be deemed not to have been made. The defendants appealed the decision. The Ankara Regional Court of Justice 21st Civil Chamber ruled to reject the appeal application made by the defendants in the file numbered 2022/727 E. on the merits. The defendants appealed against the relevant decision. In response to the appeal petition submitted by the defendants, Koza Altın İşletmeleri A.Ş. submitted a response petition to the appeal. It was decided to approve the decision of the Regional Court of Justice by the decision of the 11th Civil Chamber of the Supreme Court of Appeals, numbered 2024/2772, Decision numbered 2024/3573, dated May 6, 2024.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
As a result of the evaluations made by the CMB after the decision to appoint a trustee, the Company was instructed to file a liability lawsuit against previous board members for various reasons, and various liability lawsuits were filed against former managers on behalf of Ankara Commercial Courts, and the lawsuits are still pending. Lawsuits that may affect the activities of the Company are announced on the public disclosure platform in legal periods.
Based on the decision of the Ankara 5th Criminal Court of Peace dated October 26, 2015, the management of the Company was transferred to the Board of Trustees, and subsequently to the Savings Deposit Insurance Fund ("SDIF") on September 22, 2016. The indictment prepared by the Ankara Chief Public Prosecutor's Office regarding the events that led to the appointment of a trustee was accepted by the Ankara 24th High Criminal Court and their trial began with the file numbered 2017/44 E. and the case was concluded by the first instance court. In the decision of the first instance court; it was decided to confiscate the company shares belonging to the previous board members who were on trial. It was decided that the above-mentioned measure of appointing a trustee would continue until the decision was finalized. The appeal review of the Ankara 24th High Criminal Court regarding the file numbered 2017/44 E. has been completed and the decision of the appeal court has been announced on the Public Disclosure Platform. Following the decision of the Court of Cassation, the transfer and registration procedures of all Koza Group companies to the Ministry of Treasury and Finance have been carried out. Upon the objection made in the file in question, the Office of the Chief Public Prosecutor of the Court of Cassation has conducted an examination and as a result of the examination, no objection was filed as there was no material or legal reason requiring an objection.
With the Presidential Decree No. 8857 published in the Official Gazette dated August 20, 2024 and numbered 32638, it was decided that all of the shares belonging to the Treasury in the capitals of the Koza Group companies mentioned in the confiscation decision would be transferred to the Türkiye Wealth Fund as a whole, while preserving the parent company-subsidiary relations. Following the relevant Presidential decision, transfer and registration procedures for all Koza Group companies were carried out with the Türkiye Wealth Fund.
In the Ankara 24th High Criminal Court case numbered 2017/44 E., it was also decided that the files of the previous board members, whose trials could not be held because they did not come to court, be separated and recorded on a new basis, the trials continue on this file, and the measure of appointing a trustee, as explained above, be continued until the end of the trial. The separated file received the Ankara 24th High Criminal Court number 2020/20 E. and the trial continues on the relevant file.
In the file numbered 2017/44 E. of the Ankara 24th High Criminal Court, the defense counsel of Cafer Tekin İpek requested the court to retry the trial with a petition dated September 23, 2024. The request for a new trial was rejected by the court with an additional decision dated September 26, 2024 on the grounds that the issues put forward as reasons for a new trial were not new events or new evidence, no legal reason was given and no evidence was disclosed to confirm them, and the issues listed in the law regarding the retrial did not occur. With the petition submitted by Ebru Şedele Tınmaz's defense, the court was requested to lift the measure imposed on Ebru Şedele Tınmaz's assets. The request was rejected by the court with an additional decision dated September 30, 2024 on the grounds that the relevant injunction decision was given by the Ministry of Treasury and Finance and that there was no action to be taken by the court. The defense counsel of Ebru Şedele Tınmaz appealed against the additional decision, and the Ankara 25th High Criminal Court ruled to reject the objection with the decision dated October 15, 2024 in the file number 2024/735 D. İş.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
In the case where the defendants Cafer Tekin İpek and Özlem Özdemir are tried, which is a case file numbered 2021/157 E. of the Ankara 24th High Criminal Court, it was decided that the defendants would be punished with the appeal being open, and as a result of the appeal trial, the file was partially returned (overturned) by the appeal and it was decided that the file be sent to the first instance court, where the verdict was overturned, to be reexamined and ruled on behalf of the defendant Cafer Tekin İpek. The trial process continued with the defendant Cafer Tekin İpek with the file number 2022/193 E. of the Ankara 24th High Criminal Court. The relevant file was decided on January 10, 2024, and the case was rejected based on the prosecutor's opinion; because the same defendant was sentenced for the same crimes in the file number 2022/133 E. of the Ankara 24th High Criminal Court. The company and the Revenue Administration Presidency appealed against this decision. With the decision numbered 2024/464 E., 2024/464 K. of the Ankara Regional Court of Justice, 4th Criminal Chamber, dated May 28, 2024, it was decided to reject our appeal on the merits. An objection was filed against this decision on June 14, 2024, and the Ankara Regional Court of Justice 4th Criminal Chamber decided that there was no need to correct the decision and that the file be sent to the Ankara Regional Court of Justice 5th Criminal Chamber for evaluation. The Ankara Regional Court of Justice 5th Criminal Chamber's decision dated July 3, 2024 definitively ruled to reject the objection.
The file numbered 2022/133 E. heard at the Ankara 24th High Criminal Court is the file that was separated from the main file numbered 2017/44 E. heard at the Ankara 24th High Criminal Court in terms of the crime of contravention of the Tax Procedure Law against the defendants Ali Serdar Hasırcıoğlu, Orhan Selçuk Hasırcıoğlu, Şaban Aksöyek and Cafer Tekin İpek. In the relevant file, a decision was made regarding the punishment of all defendants, including the defendant Cafer Tekin İpek, and the relevant decision was annulled by the decision numbered 2024/26 D.İş of the Ankara 25th High Criminal Court dated February 5, 2024, as a result of the objections made by the defendants and the participating Revenue Administration Presidency. Following the aforementioned annulment decision, the file was sent back to the Ankara 24th High Criminal Court and received the number 2024/115 E. and the trial continues on the relevant file. In the relevant file, a reversal in the interest of law was sought regarding the decision numbered 2024/26 D.İş of the Ankara 25th High Criminal Court dated February 5, 2024, and at the hearing dated May 14, 2024, it was decided to await the result of the relevant reversal in the interest of law and to postpone the next hearing to September 10, 2024.
It was reported by the Ankara Chief Public Prosecutor's Office Legal Remedies Bureau that no reversal was sought in the interest of the law because the problem could be resolved through judicial channels. At the hearing held on September 10, 2024, it was decided that a warrant be written to the penal institution so that Cafer Tekin İpek would be present at the next hearing and that the next hearing would be postponed to October 16, 2024. At the hearing dated October 16, 2024, the prosecution requested that the defendants be punished. Due to the change of the panel, the court decided to review the file for a verdict and the next hearing was postponed to December 10, 2024. At the hearing dated December 10, 2024; it was decided that the defendants Cafer Tekin İpek, Ali Serdar Hasırcıoğlu, Şaban Aksöyek, Orhan Selçuk Hasırcıoğlu would be penalized for their violation of the Tax Procedure Law. The reasoned decision regarding the punishment has been notified to the parties; the defendants and the participating Revenue Administration have filed an objection against the decision numbered 2024/469, case numbered 2024/115, dated 10 December 2024, of the Ankara 24th High Criminal Court. The file was sent to the Ankara 25th High Criminal Court for the examination of the objection on January 14, 2025, and the relevant objections are being examined by the Ankara 25th High Criminal Court.
As of December 31, 2024, the provision amount accounted for ongoing employee and other lawsuits against the Company is amounting to TL 329,610 Thousand (December 31, 2023: TL 201,407 Thousand)
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The details of the letter of guarantees given by the Company as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| A. CPM's given on behalf of own legal entity | 211.348 | 259.288 |
| - Guarantee | 211.348 | 259.288 |
| - Mortgage | - | - |
| B. CPM's given in favor of partnerships which are fully consolidated | - | - |
| C. CPM's given for assurance of third parties debts in order to conduct | ||
| usual business activities | - | - |
| D. Total amount of other CPM's given | 111.619 | 161.834 |
| i. Total amount of CPM's given in favor of the parent company | 111.619 | 161.834 |
| ii. Total amount of CPM's given in favor of other group companies | ||
| which are not in scope of B and C | - | - |
| iii. Total amount of CPM's given on behalf of | ||
| third parties which are not in scope of C | - | - |
| Total | 322.967 | 421.122 |
The details of the Company's letter of guarantees received as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Guarantee letters Guarantee cheques |
2.458.583 2.366.192 |
3.660.271 2.855.361 |
| Security bonds | 127 | 184 |
| Total | 4.824.902 | 6.515.816 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
6% of the income tax calculated on the Employer's Insurance Premium Share for the employees of the Company's mining processing facility in Mastra-Gümüşhane is covered by the Treasury within the scope of the "Regional Insurance Premium Incentive" numbered 56486. The company also benefits from the 5% employer's insurance premium incentive within the scope of the "Social Insurance and General Health Insurance Law" No. 5510 in all workplaces.
The company benefits from investment incentives in İzmir Çukuralan, Kayseri-Himmetdede, Eskişehir-Kaymaz, Ağrı-Mollakara enterprises and Ankara Central Solar Power Plant (Electricity Generation, Transmission and Distribution). Within the scope of the investment incentive certificates in question, the Company's contribution to investment rate is 40% in İzmir Çukuralan, Kayseri-Himmetdede, Eskişehir-Kaymaz enterprises and 80% as corporate tax reduction rate, 50% as contribution to investment rate in Ağrı-Mollakara and 50% as corporate tax reduction rate. 90%, Ankara Central Solar Power Plant (Electricity Generation, Transmission and Distribution investment incentive Contribution to Investment rate is 30% and corporate tax reduction rate is 70%.
Within the scope of the incentive used in the İzmir Çukuralan region, on March 27, 2018, within the scope of the incentive used for the Himmetdede region, on December 21, 2017, within the scope of the incentive used in the Ağrı-Mollakara region, on October 06, 2022, within the scope of the incentive used in the Kaymaz region, on May 08, 2023, within the scope of the incentive used in the Ankara Central Solar Power Plant. Within the scope of the incentive, investment started on March 17, 2023.
As of December 31, 2024, the Company's paid-in capital is amounting to TL 3,202,500 Thousand (December 31, 2023: TL 3,202,500 Thousand) and consists of 320,250,000,000 shares with a nominal share value of 1 Kuruş (December 31, 2023: 320,250,000,000 units).
It has been decided to increase the Company's issued capital, which is TL 152,500,000 (One Hundred Fifty Two Million Five Hundred Thousand Turkish Liras), within the registered capital ceiling of TL 5,000,000,000 (Five Billion Turkish Lira), to TL 3,202,500,000 (Three Billion Two Hundred Two Million Five Hundred Thousand Turkish Liras), by an increase of TL 3,050,000,000 (Three Billion Fifty Million Turkish Liras) and 2000%, by being covered by internal resources. The permission and approval for the amendment of Article 6, titled "Type of Capital and Shares", was given by the Capital Markets Board on February 02, 2023, registered on February 15, 2023 and announced in the Trade Registry Gazette dated February 15, 2023 and numbered 10770. The transfer of the company's shares belonging to the treasury to the Türkiye Wealth Fund was registered on October 18, 2024 and was published in the Trade Registry Gazette dated October 22, 2024 number 11191. The Company's main parent is the Türkiye Wealth Fund.
| December 31, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| Share | Share | Share | Share | Share | |
| Equity | Group | Rate | Amount | Rate | Amount |
| ATP İnşaat ve Ticaret A.Ş. | A, B | 48,01 | 1.537.417 | 45,01 | 1.441.343 |
| Koza İpek Holding A.Ş. | A, B | 21,99 | 704.333 | 24,99 | 800.407 |
| Other | B | 30,00 | 960.750 | 30,00 | 960.750 |
| Paid-in capital | 100 | 3.202.500 | 100 | 3.202.500 | |
| Capital adjustment differences | 6.086.535 | 6.086.535 | |||
| Total | 9.289.035 | 9.289.035 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The company's board of directors consists of six people, and four of these six members are elected by the general assembly among the candidates nominated by the (A) group registered shareholders, and two independent members are among the candidates nominated at the general assembly. The Board of Directors elects the chairman and vice chairman among the members representing the (A) group registered shareholders at each ordinary general assembly meeting or after each general assembly where the members are elected. Apart from this, Group (A) shares do not have any other privileges. A trustee has been appointed to the Company pursuant to the decision of Ankara 5th Criminal Court of Peace dated October 26, 2015, and with the Decree Law No. 674 on President decision published in the Official Gazette dated August 15, 2016, the powers of trustees working in companies that have been decided to appoint trustees have been determined. A regulation has been introduced regarding the transfer of funds to the SDIF by a judge or court. Ankara 4th Criminal Judgeship dated September 6, 2016 and 2016/4628 D. Job. With the Decision No., it has been decided that the duties of trustees will end on the day when the procedures of trusteeship powers are completed. With the SDIF Board's decision dated September 22, 2016 and numbered 2016/206, a board of directors was established by the SDIF. For this reason, the privileges of (A) share groups cannot be used.
Capital adjustment differences amounting to TL 6,086,535 Thousand (December 31, 2023: TL 6,086,535 Thousand), the remaining amount after the deduction of accumulated losses realized in 2006 from the difference between the inflation-adjusted total amount of the Company's capital and the capital amount before the inflation adjustment and the transfer to the paid-in capital means. Publicly traded companies make their dividend distributions in accordance with the CMB's "Dividend Communiqué No. II19.1", which came into effect as of February 1, 2014.
Unless the reserves that should be set aside according to the TCC and the dividend determined for the shareholders in the articles of association or in the profit distribution policy are reserved; it cannot be decided to allocate other reserves, to transfer profits to the next year, and to distribute dividends to dividend owners, members of the board of directors, company employees and persons other than shareholders, and no dividends can be distributed to these persons unless the dividend determined for shareholders is paid in cash.
Within the scope of the share buyback transactions initiated with the decision of the Company's Board of Directors, 75,000,000 shares were repurchased for TL 2,776,900 thousand.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company's restricted reserves as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Restricted reserves | 3.150.440 | 3.150.440 |
| Reserves for withdrawn shares | 2.776.900 | 2.088.263 |
| Total | 5.927.340 | 5.238.703 |
According to the Turkish Commercial Code, legal reserves consist of first and second legal reserves. The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Company's paid-in share capital. The second legal reserve is 10% of the distributed profit in excess of 5% of the paid-in share capital. According to the Turkish Commercial Code, as long as the legal reserves do not exceed 50% of the paid-in capital, they can only be used to offset the losses, it is not possible to use them in any other way.
According to the Turkish Commercial Code, the Company allocates reserves for its own shares acquired in an amount that meets the acquisition value. These reserves can be dissolved in an amount that meets their acquisition value if the aforementioned shares are transferred or destroyed. In accordance with the legislation related to the revaluation fund, other funds in the liabilities can be dissolved if they are converted into capital and the reassessed assets are amortized or transferred.
It was published in the Official Gazette dated December 30, 2023 and numbered 32415 (Second Extraordinary) pursuant to the Tax Procedure Law. According to the relevant Communiqué, the balance sheet dated December 31, 2023, prepared in accordance with the Tax Procedure Law, has been corrected by using the Producer Prices General Indices (PPI) published by the Turkish Statistical Institute within the scope of inflation accounting application. The attached financial statements have been subjected to inflation adjustment using the Consumer Price Indices (CPI) published by the Turkish Statistical Institute in accordance with TAS 29, and ultimately the amounts for the current and previous reporting period are expressed in terms of purchasing power as of December 31, 2024. Due to the use of distinct indices in the Tax Procedural Law and TAS 29 inflation accounting differences have emerged between The amounts included in the balance sheet prepared in accordance with the Tax Procedure Law regarding the items "Inflation Adjustment on Capital" and " Restricted reserves appropriated from profits" the amounts included in the financial statements prepared in accordance with TAS / TFRS.
These differences are accounted in the "Retained Earnings or Losses" item in the TAS/TFRS financial statements, and these differences are given in detail below:
| December 31, 2024 | ||
|---|---|---|
| Adjustment to | Restricted | |
| capital | reserve | |
| To TAS/TFRS Financial Reports | 6.086.535 | 5.927.340 |
| To Tax Procedure Law | 6.095.549 | 3.611.978 |
| Differences | (9.014) | 2.315.362 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The details of the Company's revenue and cost of sales as of January 1 – December 31, 2024 and 2023 are as follows:
| January 1 – December 31, 2024 |
January 1 – December 31, 2023 |
|
|---|---|---|
| Domestic sales | 8.735.920 | 11.705.057 |
| Total sales | 8.735.920 | 11.705.057 |
| Cost of sales | (5.749.802) | (6.748.060) |
| Gross profit | 2.986.118 | 4.956.997 |
The distribution of the Company's revenues by product type as of January 1 – December 31, 2024 and 2023 are as follows:
| January 1 – December 31, 2024 |
January 1 – December 31, 2023 |
|
|---|---|---|
| Sales of gold bars Sales of silver bars |
8.699.498 36.422 |
11.630.312 74.745 |
| Total | 8.735.920 | 11.705.057 |
| January 1 – | January 1 – | |
|---|---|---|
| December 31, 2024 | December 31, 2023 | |
| Personnel expenses | 1.855.852 | 1.771.749 |
| Depreciation and amortisation expense | 1.064.975 | 977.178 |
| State right expenses | 952.056 | 1.127.575 |
| Direct materials used | 859.457 | 1.103.372 |
| Rehabilitation expenses | 514.024 | 91.303 |
| Electricity and fuel expenses | 406.504 | 652.067 |
| Repair and maintenance expenses | 374.310 | 594.681 |
| Transportation costs | 212.862 | 177.133 |
| Rent expenses | 93.121 | 76.872 |
| Stripping and crusher feeding expenses | 64.975 | 264.564 |
| Other | 135.088 | 166.556 |
| Change in work-in-progress and finished good inventory | (783.422) | (254.990) |
| Total | 5.749.802 | 6.748.060 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| January 1 – | January 1 – | |
|---|---|---|
| December 31, 2024 | December 31, 2023 | |
| Research expenses | 1.000.658 | 1.008.851 |
| Personnel expenses | 672.079 | 704.934 |
| Depreciation and amortisation expenses | 188.876 | 81.361 |
| Advertising and marketing expenses | 168.586 | 197.672 |
| Legal expenses | 72.649 | 93.029 |
| Outsourced security expenses | 66.209 | 59.273 |
| Electricity and fuel expenses | 27.417 | 54.678 |
| Audit and consultancy expenses | 16.021 | 12.889 |
| Taxes, duties and charges expenses | 15.052 | 24.401 |
| Insurance expenses | 10.615 | 14.331 |
| Travel expenses | 6.080 | 5.242 |
| Dues, donations and aids | 5.933 | 1.112 |
| Communication expenses | 2.787 | 6.217 |
| Other | 109.206 | 117.646 |
| Total | 2.362.168 | 2.381.636 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The details of the Company's other operating incomes as of January 1 – December 31, 2024 and 2023 are as follows:
| January 1 – December 31, 2024 |
January 1 – December 31, 2023 |
|
|---|---|---|
| Extra-group and intra-group charge income | 52.716 | 64.477 |
| Foreign exchange income related to trading activities | 45.431 | - |
| Scrap sales income | 20.812 | 24.970 |
| Doubtful receivable provision released | 1.153 | 19.104 |
| Other | 90.339 | 80.035 |
| Total | 210.451 | 188.586 |
The details of the Company's other operating expenses as of January 1 – December 31, 2024 and 2023 are as follows:
| January 1 – | January 1 – | |
|---|---|---|
| December 31, 2024 | December 31, 2023 | |
| Lawsuit provision | 213.781 | 167.730 |
| Rent expense | 5.529 | 7.744 |
| Foreign exchange expense related to trading activities | - | 169.504 |
| Other (*) | 618.897 | 1.565.700 |
| Total | 838.207 | 1.910.678 |
(*) As of December 31, 2024 TL 163,812 thousand of the balance consists of VAT receivables that are expensed, TL 160,441 thousand of the balance consists of ongoing fixed expenses of the Mastra facility that have been discontinued, and TL 73,137 thousand of the balance consists of donations and aid.
As of December 31, 2023, TL 889,305 thousand of the balance consists of earthquake donations, and TL 293,480 thousand of the balance consists of the cost incurred for school donations.
The details of the Company's income from investing activities as of January 1 – December 31, 2024 and 2023 are as follows:
| January 1 – | January 1 – | |
|---|---|---|
| December 31, 2024 | December 31, 2023 | |
| Investment fund and stock fair value increases | 3.535.266 | 6.589.638 |
| Interest income (*) | 1.197.758 | 520.376 |
| Currency-protected deposit fair value increases | 1.023.841 | 1.479.905 |
| Income from fixed asset sales | 7.037 | 275.311 |
| Income from investment property sales | - | 1.078.091 |
| Other | 75 | 7.570 |
| Total | 5.763.977 | 9.950.891 |
(*) It consists of interest income obtained from time deposits and currency protected time deposit accounts.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The details of the Company's expense from investing activities as of January 1 – December 31, 2024 and 2023 are as follows:
| January 1 – December 31, 2024 |
January 1 – December 31, 2023 |
|
|---|---|---|
| Goodwill impairment Investment property impairment Other |
137.525 21.687 2.077 |
- - - |
| Total | 161.289 | - |
| January 1 – | |
|---|---|
| Non-monetary items | December 31, 2024 |
| Inventories | 417.196 |
|---|---|
| Prepaid expenses | 262.527 |
| Financial investments | 761.095 |
| Tangible assets | 1.976.244 |
| Intangible assets | 28.145 |
| Mining assets | 715.522 |
| Investment properties | 41.864 |
| Adjustment to share capital | (2.855.239) |
| Restricted reserves | (1.610.259) |
| Retained earnings | (5.381.245) |
| Reserves for withdrawn shares | 768.775 |
| Other comprehensive income/expense not to be reclassified to profit/loss | 54.150 |
| Goodwill | 42.272 |
| Deferred tax | 450.001 |
| Revenue | (1.483.399) |
|---|---|
| Cost of sales | 974.436 |
| Research and development expenses | 118.510 |
| Marketing, sales and distribution expenses | 22.207 |
| General administrative expenses | 124.454 |
| Other operating income | (23.424) |
| Other operating expense | 111.422 |
| Income from investing activities | (207.979) |
| Expense from investment activities | 361 |
| Financial expenses | 1.454 |
| Current tax expense | 45.023 |
| Net monetary loss | (4.645.887) |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding back non-deductible expenses, dividend income from domestic companies, other exempt income and investment incentives utilized.
As of December 31, 2024, the effective tax rate applied is 25% (December 31, 2023: 25%).
In Türkiye, advance tax is calculated and accrued on a three-month basis. The provisional tax rate to be calculated on corporate earnings during the taxation of 2024 corporate earnings as of the provisional tax periods is 25%. Losses can be carried forward for a maximum of 5 years to be deducted from taxable profits in future years. However, losses incurred cannot be deducted retroactively from profits in previous years.
In addition to corporate tax, income tax withholding must be calculated separately on dividends, excluding those distributed to full-fledged corporations and foreign companies' branches in Türkiye, which receive dividends in case of distribution and declare these dividends by including them in corporate income. Income tax withholding was applied as 10% in all companies between April 24, 2003 and July 22, 2006. As of December 22, 2021, this rate is applied as 10% with the President's decision numbered 4936. Dividends that are not distributed and added to the capital are not subject to income tax withholding.
Corporate tax liabilities / (assets) recognized in the balance sheet as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Current tax expense Prepaid taxes (-) |
- (255.116) |
994.226 (775.884) |
| Current income tax liability | (255.116) | 218.342 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Tax expense details recognized in the income statement as of December 31, 2024 and 2023 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Current tax expense Deferred tax expense / (income) |
(45.023) (298.557) |
(1.354.852) 1.748.996 |
| Total tax expense | (343.580) | 394.144 |
The Company recognizes deferred tax assets and liabilities for temporary differences arising from differences between its tax base legal financial statements and its financial statements prepared in accordance with TMS / TFRS. The aforementioned differences are generally due to the fact that some income and expense items are included in different periods in the financial statements subject to tax and the financial statements prepared in accordance with TMS / TFRS, and these differences are stated below. In the calculation of deferred tax assets and liabilities, the tax rates expected to be applied in the periods when assets are converted into income or debts are paid are taken into account. The breakdown of cumulative temporary differences and the resulting deferred tax assets/(liabilities) at December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Cumulative | Cumulative | |||
| temporary | temporary | Deferred | ||
| differences | Deferred tax | differences | tax | |
| Mining assets | 3.382.889 | 845.722 | 1.886.424 | 471.606 |
| State right provision | 729.192 | 182.298 | 792.595 | 198.148 |
| Financial investments | 577.135 | 144.284 | 645.408 | 161.352 |
| Lawsuit provision | 324.159 | 81.040 | 193.537 | 48.384 |
| Employee termination benefit | 206.736 | 51.684 | 200.520 | 50.130 |
| Provision for unused vacation | 43.877 | 10.969 | 38.016 | 9.504 |
| Investment properties | 21.687 | 5.422 | - | - |
| Provisions for doubtful receivables | 5.082 | 1.270 | 9.396 | 2.349 |
| IFRS 9 provision | 59 | 15 | 85 | 22 |
| Inventories | (376.049) | (94.012) | 19.114 | 4.779 |
| Tangible and intangible assets | (107.767) | (26.942) | 2.081.836 | 520.459 |
| Leasing transactions | (1.598) | (399) | (10.171) | (2.543) |
| Bank loans | - | - | (758) | (189) |
| Other | 8.164 | 2.041 | - | - |
| Total deferred tax assets | 1.203.392 | 1.464.001 | ||
| Deferred tax assets, net | 1.203.392 | 1.464.001 | ||
| Movement of deferred tax is as follows: | ||||
| 2024 | 2023 | |||
| January 1 | 1.464.001 | (299.001) | ||
| Deferred tax recognized in profit or loss | (298.557) | 1.748.996 | ||
| Deferred tax recognized in equity | 37.948 | 14.006 | ||
| December 31 | 1.203.392 | 1.464.001 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The reconciliation of the tax is as follows:
| 2024 | 2023 | |
|---|---|---|
| Profit before tax 947.570 |
192.164 | |
| Effective tax rate | 25% | 25% |
| Tax calculated using effective tax rate (236.893) |
(48.041) | |
| Non-taxable inflation adjustments (2.441.302) |
(3.161.070) | |
| Effect of non-deductible expenses (30.653) |
(249.983) | |
| Additional tax within the scope of Law No. 7440 | - | (95.958) |
| Effect of investment incentive allowance | - | 53.436 |
| Tax rate change impact | - | 442.726 |
| Exemptions and discounts (*) 663.647 |
1.345.573 | |
| Effect of indexing legal accounts (**) 1.711.838 |
2.109.670 | |
| Other income / (expense) (10.217) |
(2.209) | |
| Current tax expense (343.580) |
394.144 |
(*) 475,238 thousand TL of the exceptions and discounts are related to the income from the funds, 166,716 thousand TL is from Currency-protected deposits, 7,522 thousand TL is from donations and aids and the rest is from other exemptions.
(**) It consists of the deferred tax effect of the temporary differences created by the adjustments made regarding inflation accounting in accordance with the circular numbered 32415 (2nd Duplicate) dated 30 December 2023 of the Tax Procedure Law.
Earnings per share is calculated by dividing the current year net profit of the parent company by the weighted average number of shares traded throughout the year. Companies in Türkiye have right to increase its capital through the distribution of bonus shares to be met from the re-valuation fund or accumulated profits. During the calculation of earnings per share, these increases are accepted as shares distributed as dividends. Dividend distributions added to the capital are also evaluated in the same way. Therefore, while calculating the average number of shares, it is assumed that such shares are in circulation throughout the year. For this reason, the weighted average of the number of shares used in calculating the earnings per share is determined by considering the retroactive effects.
The earnings per share of the Company as of December 31, 2024 and 2023 are as follows:
| January 1 – December 31, 2024 |
January 1 - December 31, 2023 |
|
|---|---|---|
| Net profit / loss attributable to the owners of the Company Weighted average number of share certificates (*) |
603.990 320.197.633.363 |
586.308 320.213.081.151 |
| Earnings per 100 share | 0,019 | 0,018 |
| Total comprehensive income attributable to the owners of the Company | 490.145 | 544.288 |
| Earnings per 100 shares from total comprehensive income | 0,015 | 0,017 |
(*) If the number of ordinary or potential ordinary shares outstanding increases as a result of capitalization, bonus issue or share split, or decreases as a result of a share merger, the calculation of basic and diluted earnings per share for all periods presented is adjusted retrospectively. If these changes occur after the reporting period but before the financial statements are approved for issue, the calculations per share in the financial statements of the current period and prior periods presented are based on the number of new shares outstanding. It is disclosed to the public that the calculations per share reflect the changes in the number of shares. In addition, for all periods presented, basic and diluted earnings per share figures are adjusted for the effects of retrospectively corrected errors and changes in accounting policies. The average number of shares in the current period was determined by calculating on a daily basis according to the repurchased shares.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The other trade payables and other receivables of the Group consist of the payables and receivables given and received in order to meet the financing needs of the Group and its related parties during the year. Other payables and other receivables do not have a certain maturity, and the Group accrues interest on the related payables and receivables at the end of the period, using the current interest rate determined monthly, taking into account the evaluations made by the Group management and the developments in the markets. In this context, the current interest for December 2024 was applied as %55,56 per year (December 31, 2023: 52,07%).
Transactions with related parties are classified according to the following groups and include all related party disclosures in this note:
The details of the transactions between the Company and other related parties are explained as below.
Other long term receivables of the Company from related parties as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Konaklı Metal Madencilik San. Tic. A.Ş. (2) (*) | 21.621 | 30.421 |
| Özdemir Antimuan Madenleri A.Ş. (2) | 16.575 | - |
| ATP Koza Gıda Tarım Hay. A.Ş. (2) | 241 | 2.809 |
| ATP İnşaat ve Ticaret A.Ş. (1) | 178 | 60 |
| ATP Havacılık ve Ticaret A.Ş. (2) | 46 | 74 |
| Koza İpek Holding A.Ş. (1) | - | 1.066.158 |
| Other (3) | 5.111 | 10.917 |
| Total | 43.772 | 1.110.439 |
(*) A large part of the related amount consists of personnel and consultancy services given to the company.
Other payables of the Company to related parties as of December 31, 2024 and December 31, 2023 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Koza İpek Holding A.Ş. (1) (**) | 95.408 | 213 |
| Koza İpek Sigorta | 10.099 | 558 |
| Other | 189 | - |
| Total | 105.696 | 771 |
(**) It consists of debts related to the purchase of real estates located in Istanbul Province Beşiktaş District Bebek Neighborhood, island 1259, parcel 132 and 133 and in Ankara Province Çankaya District, island 28371, parcel 1 from Koza İpek Holding A.Ş.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The purchases of the Company from related parties between January 1 – December 31, 2024 and 2023 are as follows;
| January 1 - December 31, 2024 | January 1 – December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| Rent | Service | Other | Rent | Service | Other | |
| İpek Doğal Enerji Kaynakları Araştırma | ||||||
| ve Üretim A.Ş. (2) | 17.897 | - | - | 20.574 | - | - |
| Koza İpek Holding A.Ş. (1) (*) | - | - | 1.433.482 | - | - | - |
| Turkcell Satış ve Dijital İş Servisleri A.Ş (3) | - | - | 1.425 | - | - | - |
| Türk Telekomünikasyon A.Ş (3) | - | - | 1.124 | - | - | - |
| Other (3) | - | - | 4.720 | - | - | 139.546 |
| Total | 17.897 | - | 1.440.751 | 20.574 | - | 139.546 |
(*) The 1,412,037 TL portion of the relevant amount relates to real estate purchased in cash from Koza İpek Holding A.Ş.
Sales of the Company to related parties between January 1 – December 31, 2024 and 2023 are as follows;
| January 1 – December 31, 2024 | January 1 – December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| Interest | Service | Other | Interest | Service | Other | |
| Koza İpek Holding A.Ş. (1) | 581.796 | - | 3.984 | 164.831 | - | 1.755.182 |
| Özdemir Antimuan Madenleri A.Ş.(2) | - | - | 16.201 | - | - | - |
| ATP Koza Gıda Tarım Hay. A.Ş. (2) | - | - | 3.264 | - | - | - |
| ATP Koza Turizm Seyahat Ticaret A.Ş.(2) | - | - | 1.413 | - | - | - |
| Koza Anadolu Metal Maden İşletmeleri A.Ş. | - | - | 2.654 | - | - | - |
| T.C. Ziraat Bankası A.Ş. (3) (*) | - | - | 2.625.950 | - | - | - |
| Other (3) | 143 | - | 5.704 | 3.333 | - | 19.517 |
| Total | 581.939 | - | 2.659.170 | 168.164 | - | 1.774.699 |
(*) The Company sells its dore bars of gold to T.C. Ziraat Bankası A.Ş. on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights. T.C. Ziraat Bankası A.Ş.
c) Compensations provided to key management; The Company's key management consist of the general manager and assistant general managers. Compensations provided to senior management include benefits such as wages and bonuses. Total amount of wages and similar benefits paid to key management between January 1 – December 31, 2024 is amounting to TL 63,531 thousand. The entire amount consists of the wages. (January 1 – December 31, 2023: TL 40,508 thousand)
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company's main financial instruments consist of cash, short-term deposits, currency protected deposits and funds. The main purpose of financial instruments is to finance the activities of the Company. Apart from these, the Company has financial instruments such as trade receivables and payables that arise as a result of its activities.
The Company is exposed to market risk, which consists of currency, cash flow and interest rate risks, capital risk, credit risk and liquidity risk, due to operations. Risk management policy is to focus on unexpected changes in the financial markets.
The management policy of financial risks should be made by the Company's senior management and commercial and financial affairs department in line with the policies and strategies approved by the Board of Directors. The Board of Directors should prepare general principles and policies for the management of currency, interest and capital risks, and closely monitor financial and operational risks (especially arising from fluctuations in gold prices). The Company does not have an Early Risk Detection Committee.
The purpose that the Company should set to manage financial risks can be summarized as follows:
The main risks arising from the financial instruments of the Company are interest rate risk, foreign currency risk, credit risk and liquidity risk. The policies of the management regarding to manage these risks are summarized below.
The risk of financial loss of the Company due to the failure of one of the parties to the financial instrument to fulfill its contractual obligation is defined as credit risk. Financial instruments of the Company that may cause a significant concentration of credit risk mainly consist of cash and cash equivalents and trade receivables. The maximum credit risk that the Company may be exposed to is up to the amounts reflected in the financial statements.
The Company has cash and cash equivalents in various financial institutions.
The Company sells its dore bars of gold to a domestic bank on consignment to be sold to the Central Bank of the Republic of Türkiye which has pre-emptive rights, and silver to a domestic refinery again on consignment. Due to the fact that the sales are made on demand and the customer is corporate, the Company considers that there is no significant risk of receivables.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The analysis of the Company's credit risk as of December 31, 2024 and December 31, 2023 are as follows:
| Cash and cash | |||||
|---|---|---|---|---|---|
| Trade receivables | Other receivables | equivalents | |||
| December 31, 2024 | Related party | Third party Related party | Third party | Deposits in banks |
|
| Maximum credit risk exposure as of the reporting date |
|||||
| (A+B+C+D+E) * | - | 3.133 | 43.772 | 8.857 | 107.347 |
| Portion of the maximum risk that is guaranteed | |||||
| with a collateral, etc | - | - | - | - | - |
| A. Net book value of financial assets that are | |||||
| not overdue or not impaired | - | 3.133 | 43.772 | 8.857 | 107.347 |
| B. The book value of financial assets whose conditions have been renegotiated or that would be deemed overdue or impaired |
- | - | - | - | - |
| C. Net book value of assets that are overdue but not impaired |
- | - | - | - | - |
| D. Net book values of impaired assets | - | - | - | - | - |
| Overdue (gross book value) | - | 61.388 | - | - | - |
| Impairment (-) The part of net value under |
- | (61.388) | - | - | - |
| guarantee with collateral, etc | - | - | - | - | - |
| Not due (gross book value) | - | - | - | - | - |
| Impairment (-) | - | - | - | - | - |
| The part of net value under | |||||
| guarantee with collateral, etc | - | - | - | - | - |
| E. Off-balance sheet items with credit risk | - | - | - | - | - |
| Trade receivables | Other receivables | Cash and cash equivalents |
|||
|---|---|---|---|---|---|
| December 31, 2023 | Related party | Third party | Related party | Other party | Related party |
| Maximum credit risk exposure as of the reporting | |||||
| date (A+B+C+D+E) * | - | 588 | 1.110.439 | 225.776 | 375.296 |
| Portion of the maximum risk that is guaranteed | |||||
| with a collateral, etc | - | - | - | - | - |
| A. Net book value of financial assets that are not | |||||
| overdue or not impaired | - | 588 | 1.110.439 | 225.776 | 375.296 |
| B. The book value of financial assets whose | |||||
| conditions have been renegotiated or that would | |||||
| be deemed overdue or impaired | - | - | - | - | - |
| C. Net book value of assets that are overdue but | |||||
| not impaired | - | - | - | - | - |
| D. Net book values of impaired assets | - | - | - | - | - |
| Overdue (gross book value) | - | 90.006 | - | - | - |
| Impairment (-) | - | (90.006) | - | - | - |
| The part of net value under | |||||
| guarantee with collateral, etc | - | - | - | - | - |
| Not due (gross book value) | - | - | - | - | - |
| Impairment (-) | - | - | - | - | - |
| The part of net value under | |||||
| guarantee with collateral, etc | - | - | - | - | - |
| E. Off-balance sheet items with credit risk | - | - | - | - | - |
(*) In determining the amount, factors that increase credit reliability, such as guarantees received, have not been taken into account.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Due to operations, the Company is exposed to financial risks related to changes in exchange rates and interest rates. Market risks encountered by the Company are measured on the basis of sensitivity analysis. In the current year, there isn't any change in the market risk that the Company is exposed to, or the method of handling the encountered risks or the method used to measure these risks, compared to the previous year.
Transactions in foreign currency cause exchange risk. The Company controls this risk through a natural precaution that occurs by netting foreign currency assets and liabilities.
The distribution of the monetary and non-monetary assets and monetary and non-monetary liabilities of the Company in foreign currency as of the date of financial position is as follows:
| Foreign exchange position table TL equivalent (functional |
||||
|---|---|---|---|---|
| December 31, 2024 | currency) | Usd | Euro | Gbp |
| Cash and cash equivalents | 81 | - | 1 | 1 |
| Other receivables | 3.482 | 30 | 1 | 54 |
| Current assets | 3.563 | 30 | 2 | 55 |
| Total assets | 3.563 | 30 | 2 | 55 |
| Trade payables | 128.952 | 2.219 | 1.106 | 227 |
| Other payables | 193.724 | 5.491 | - | - |
| Current liabilities | 322.676 | 7.710 | 1.106 | 227 |
| Total liabilities | 322.676 | 7.710 | 1.106 | 227 |
| Net foreign currency position | (319.113) | (7.680) | (1.104) | (172) |
As of December 31, 2024, the Company has foreign currency protected deposits amounting to thousand TL 2,584,743.
| Foreign exchange | |||||
|---|---|---|---|---|---|
| Foreign exchange | position table | ||||
| position table | TL equivalent | ||||
| TL equivalent | (functional currency) | ||||
| December 31, 2023 | (Functional currency) | (Historical values) | Usd | Euro | Gbp |
| Cash and cash equivalents | 5.391 | 3.734 | 117 | 2 | 6 |
| Other receivables | 4.284 | 2.967 | 31 | 1 | 54 |
| Current assets | 9.675 | 6.701 | 148 | 3 | 60 |
| Total assets | 9.675 | 6.701 | 148 | 3 | 60 |
| Trade payables | 337.158 | 233.523 | 1.995 | 3.235 | 1.854 |
| Other payables | 233.381 | 161.645 | 5.491 | - | - |
| Current liabilities | 570.539 | 395.168 | 7.486 | 3.235 | 1.854 |
| Total liabilities | 570.539 | 395.168 | 7.486 | 3.235 | 1.854 |
| Net foreign currency position | (560.864) | (388.467) | (7.338) | (3.232) | (1.794) |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company is exposed to currency risk mainly in US Dollars, Euro and GBP.
The table below shows the sensitivity of the Company to 10% increase and decrease in US Dollar, Euro and GBP exchange rates. The sensitivity analysis includes only open monetary items in foreign currency at the end of the period and shows the effects of the 10% exchange rate change at the end of the year. Positive value indicates an increase in profit / loss and other equity items.
| December 31, 2024 Profit / Loss |
Equity | ||||
|---|---|---|---|---|---|
| Appreciation of | Depreciation of | Appreciation of | |||
| foreign | foreign | foreign | Depreciation of | ||
| currency | currency | currency | foreign currency | ||
| In case of 10% appreciation / depreciation of USD against TL | |||||
| 1- USD net asset/liability 2- Portion protected from USD risk (-) |
(27.095) - |
27.095 - |
(27.095) - |
27.095 - |
|
| 3- USD net effect (1+2) | (27.095) | 27.095 | (27.095) | 27.095 | |
| In case of 10% appreciation / depreciation of EUR against TL | |||||
| 4- EUR net asset/liability 5- Portion protected from EUR risk (-) |
(4.056) - |
4.056 - |
(4.056) - |
4.056 - |
|
| 6-EUR net effect (4+5) | (4.056) | 4.056 | (4.056) | 4.056 | |
| In case of 10% appreciation / depreciation of GBP against TL | |||||
| 7-GBP net asset/liability | (760) | 760 | (760) | 760 | |
| 8- Portion protected from GBP risk (-) | - | - | - | - | |
| 9-GBP Net effect (7+8) | (760) | 760 | (760) | 760 | |
| Total (3+6+9) | (31.911) | 31.911 | (31.911) | 31.911 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
| December 31, 2023 | Profit / Loss | Equity | ||
|---|---|---|---|---|
| Appreciation of foreign currency |
Depreciation of foreign currency |
Appreciation of foreign currency |
Depreciation of foreign currency |
|
| In case of 10% appreciation / depreciation of USD against TL | ||||
| 1- USD net asset/liability 2- Portion protected from USD risk (-) |
(31.188) - |
31.188 - |
(31.188) - |
31.188 - |
| 3- USD net effect (1+2) | (31.188) | 31.188 | (31.188) | 31.188 |
| In case of 10% appreciation / depreciation of EUR against TL | ||||
| 4- EUR net asset/liability 5- Portion protected from EUR risk (-) |
(15.200) - |
15.200 - |
(15.200) - |
15.200 - |
| 6-EUR net effect (4+5) | (15.200) | 15.200 | (15.200) | 15.200 |
| In case of 10% appreciation / depreciation of GBP against TL | ||||
| 7-GBP net asset/liability 8- Portion protected from GBP risk (-) |
(9.698) - |
9.698 - |
(9.698) - |
9.698 - |
| 9-GBP Net effect (7+8) | (9.698) | 9.698 | (9.698) | 9.698 |
| Total (3+6+9) | (56.086) | 56.086 | (56.086) | 56.086 |
The most important operational risk of the Company is the gold price risk.
The operational profitability of the Company and the cash flows it provides from its operations are affected by the changes in gold and silver prices in the markets. If the gold prices decrease comparing under the cash-based operational production costs of the Company and continue in this way for a certain period, the operational profitability of the Company may decrease.
The Company does not expect any change in gold prices to drop significantly in the near future. Accordingly, the Company has not used any derivative instruments to hedge the risk of falling gold prices and has not made a similar agreement.
While managing the capital, the Company's objectives are to maintain the most appropriate capital structure in order to benefit its shareholders and reduce the cost of capital and to ensure the continuity of the Company's activities.
In order to return capital to shareholders, the Company could maintain or reorganize its capital structure, issue new shares, and sell assets to reduce borrowing.
The Company uses the net financial debt / equity ratio to monitor the capital structure. Net debt is calculated by deducting cash and cash equivalents from the total debt amount (including loans and other payables to related parties as shown in the balance sheet). Company management should follow the net debt / equity ratio regularly and update it when necessary. The Company does not have an Early Detection of Risk Committee.
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company classifies the fair value measurements of the financial instruments measured at their fair values in the financial statements according to the source of the inputs of each financial instrument class, using a three-level hierarchy as follows.
| December 31, 2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Assets: Financial investments |
8.430.119 | 2.584.743 | - | 11.014.862 |
| Total | 8.430.119 | 2.584.743 | - | 11.014.862 |
| December 31, 2023 | Level 1 | Level 2 | Level 3 | Total |
| Assets: Financial investments |
11.511.029 | 2.035.543 | - | 13.546.572 |
| Total | 11.511.029 | 2.035.543 | - | 13.546.572 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
Therefore, it was decided in favor of the applicant that the appeal request be accepted, the decision of the Eskişehir 1st Administrative Court dated 13 June 2024 and numbered 2023/858 E., 2024/651 K. be reversed, and the case be dismissed in accordance with Article 20/A-2(i) of the Administrative Procedure Law No. 2577. In line with the decisions of the Council of State; the company continues its mining activities in accordance with the relevant legislation within the scope of the "Kaymaz Gold and Silver Mine 3rd Capacity Increase and additional mine waste storage facility project. Within the scope of the project in question; Kaymaz gold mine 3rd Mine Waste storage facility will be completed and put into operation after the necessary permits are obtained.
iii- Regarding the Çukuralan Gold Mine Crushing-Screening Facility Project planned to be built by the company, the Ministry of Environment, Urbanization and Climate Change has given a "Positive EIA" decision for the EIA process and final EIA report carried out in accordance with the legislation. Within the scope of this project, which is indirectly linked to production activities; in the underground cut-and-fill ore production system implemented at world standards in the Çukuralan enterprise, the aggregate/gravel material, which is a component of the backfill material, is supplied from outside and brought to the enterprise by transportation, while when the crushing-screening facility, which will only carry out physical processes, becomes operational, the waste material coming out of the underground production of the enterprise will be crushed, sized and produced within the enterprise. With this project, the relevant material will be supplied by in-house resources, environmental and social impacts will be reduced by reducing processes such as transportation, storage and loading, waste material will be reused on-site, rehabilitation costs will be reduced and the sustainability of mining activities in the facility will be increased.
The Company's explanation regarding the fees for services rendered by independent audit firms, which is prepared by the KGK pursuant to the Board Decision published in the Official Gazette on March 30, 2021, and the preparation principles of which are based on the KGK letter dated August 19, 2021 are as follows:
| December 31, 2024 |
December 31, 2023 |
|
|---|---|---|
| Independent audit fee for the reporting period | 5.270 | 4.334 |
| Total | 5.270 | 4.334 |
(Amounts are expressed in thousands of TL, based on the purchasing power of Turkish Lira ("TL") as of December 31, 2024, unless otherwise stated.)
The Company's financial statements for the years ended December 31, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023 have been approved by the Board of Directors with the board decisions dated April 24, 2018, April 30, 2018, February 28, 2019, February 27, 2020, March 1, 2021, March 1, 2022, March 1, 2023, and May 9, 2024, respectively, and published by excluding the possible cumulative effects of the works and transactions belonging to the previous financial periods, whose judgment process continues, in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC"). The audited financial statements for the year ended December 31, 2015 were not approved by the Board of Directors in accordance with the provisions of Article 401/4 of the TCC. Subsequently, with the decision of the Board of Directors of the Company, the phrase "excluding the possible cumulative effects of the transactions and operations from previous financial periods on the statements in accordance with the provisions of Article 401/4 of the Turkish Commercial Code No. 6102 ("TCC")" has been removed from the decisions regarding the approval of the financial statements for December 31, 2023. The ordinary general assembly meetings of the Company for the years 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023, as explained in detail in Note 9, could not be carried out due to various examinations and works by the Prosecutor's Office, the Police Financial Crimes Branch, and the Capital Markets Board (CMB), and these financial statements of the Company could not be submitted to the approval of the General Assembly. Following the decision of the Ankara 5th Criminal Court of Peace dated October 26, 2015, the management of the Company was transferred to the trustee committee, and subsequently, with the Law No. 674 published on September 1, 2016, regarding certain regulations within the scope of the state of emergency, all powers of the Company were transferred to the Savings Deposit Insurance Fund ("TMSF") on September 22, 2016. With the decision of the TMSF Fund Board dated September 12, 2024, numbered 2024/406, and the decision of the Board of Directors dated September 12, 2024, the transfer of the Company's shares belonging to the treasury to the Türkiye Wealth Fund has been registered in the share register. The transfer of the Company's shares belonging to the treasury to the Türkiye Wealth Fund was registered on October 18, 2024, and published in the Trade Registry Gazette dated October 22, 2024, numbered 11191. As of the report date, the ordinary general assembly meetings for the relevant years and the financial statements for the relevant periods could not be submitted for approval to the General Assembly.
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