REG-AltynGold Plc Half-year Report
26/09/2022 07:00
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Half-year Report
ALTYNGOLD PLC
Unaudited Interim Results – six months to 30 June 2022
AltynGold Plc (“AltynGold” or the “Company”), the gold mining and
development company, announces its unaudited results for the six months to 30
June 2022.
The Company had a successful 6 months with milling of ore exceeding 300kt
generating an increase in profits to US$11.6m (2021 US$9.3m). The principal
KPI’s saw an increase from the prior period, the Company is continuing to
grow and develop in line with its medium-term plan.
The Company’s aim is to develop the mine at Sekisovskoye moving from its
current level of processing to 1mt of ore in a phased development. The current
plan is to move to 650ktpa in the current period and progressively move up to
850ktpa in the medium term.
The management are currently finalising the funding with the bank to invest in
the processing plant to move the capability to 1mtpa.
In previous periods the Company has been developing the mine site, investing
in equipment and making use of subcontractors in order to develop the mine and
extract ore for processing. The move to increase the involvement of the
subcontractors has streamlined the process of ore extraction and also
accelerated the mines capital development, the costs of the latter are
reflected in the additions to mining properties in the current period.
In line with its mine developments the Company is aware of its social and
environmental responsibilities, particularly in relation to climate change and
carbon reduction. Currently in Kazakhstan there are three levels of
categorisation for companies based on their carbon emissions. AltynGold is in
the lowest level of category, and closely monitors its emissions, reporting to
the relevant government bodies on a regular basis. The Company will continue
to look at the development of its social and environmental policies as it
evolves.
Highlights:
Mine development
* Transport declines No.1 and No. 2 have both been developed to the horizon
100masl from 150masl in the prior period.
* Development of the mine tunneling amounted to 2,992 linear metres, (H12021:
3,131 linear metres).
* Exploration drilling amounted to 11,040 linear metres, (2021: 8,200m).
* Ore was mined in the period principally from ore bodies 3.8 and 11 at horizons
between 164masl to 117 masl.
* An extension for the licence at Teren-Sai has been applied for in July 2022 to
continue exploration works for a further three years.
Production
* The milled ore was 306,599t (H1 2021: 262,744t), in the current period, an
increase of 17%.
* Average processed gold grade in the period was 2.06g/t (H1 2021: 1.88g/t).
* Gold recovery averaged 83.44% during the 6 month period (H1 2021: 82.18%).
* H1 2022 gold production from Sekisovskoye was 16,965oz, compared with H1 2021
of 13,066oz
* H1 2022 gold sold was 17,542oz, compared with H1 2021 of 12,560oz
Financial
* The turnover has increased to US$32m (H1 2021: US$23m). The gold price
achieved averaged US$1,830oz during the period (H1 2021: US$1,832oz).
* The Company made a gross profit of US$17m (H1 2021: gross profit of US$14m),
with a net profit before taxation of US$11.6m (H1 2021: loss of US$9.3m).
* The total cash cost of production was US$884oz (H1 2021: US$766oz).
* Adjusted EBITDA achieved was US$16.6m (H1: 2021: US$13.4m).
* A loan in principal has been agreed with Bank Center Credit for an additional
US$40m to fund the Company’s capital program.
Aidar Assaubayev, CEO of AltynGold plc commented:
‘The Company is moving forward in its plan to increase its production
capability to 1mtpa and has agreed an in principal loan with Bank Center
Credit in order to assist in this process. The current results are very
encouraging and demonstrate the strong economics of our business’.
For further information please contact:
AltynGold plc
For further information please contact:
Rajinder Basra, CFO +44 (0) 203 432 3198
Email: info@altyn.uk (mailto:info@altyn.uk)
Information on the Company
AltynGold plc (LSE:ALTN) is an exploration and development company, which is
listed on the main market segment of the London Stock Exchange. The
information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014.
This report will be available on our website at www.altyngold.uk
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.altyngold.uk&esheet=52925346&newsitemid=20220925005040&lan=en-US&anchor=www.altyngold.uk&index=1&md5=813dbb8c25cd06a3b7eaa24fa676f987)
H1 2022 Review
Mine developments
H1 2022 Operational Overview – Sekisovskoye
Ore H1 2022 H1 2021
Ore mined tons 277,398 266,607
Gold grade g/t 2.06 1.85
Silver grade g/t 1.69 1.80
Mineral processing H1 2022 H1 2021
Milling tons 306,599 262,774
Gold grade g/t 2.06 1.88
Silver grade g/t 1.69 1.83
Gold recovery % 83.44% 82.18%
Silver recovery % 72.34% 73.19%
Gold produced ounces 16,965 13,066
Silver produced ounces 11,306 11,315
The principal development milestones achieved in the period were:
* Tunnelling and decline development of 2,992 linear metres, in the similar
period last year it was 3131 metres.
* Exploration drilling was carried out and amounted to11,039m (2021: 8,200
linear metres).
The declines have now been developed to 100masl. The ore bodies currently
being developed are ore bodies 3, 8 and 11 which, are expected to continue to
be mined into the second half of the year. The principal ore body that is
ready for extraction after those noted above will be ore body 10 above which
is above 100masl and is readily accessible.
The principal capital expenditure relating to plant to extract ore at the
Sekisovskoye mine is now in place; the ongoing capital expenditure will relate
to the development of the processing plant to increase the capability of ore
processing and further development of the mine declines.
The gold grade has increased from 1.88g/t to 2.06g/t and is in line with that
budgeted for the period. Further increases are expected as the ore bodies are
developed.
H1 2022 – Teren-Sai
In the current period the Company has been concentrating on the finalising its
plans for future development of the site, with proposals being sent into the
government department in July 2022, these are currently being reviewed. The
initial exploration phase requested is three years, but the Company is
anticipating a move to production within this period once more detailed
studies have been carried out on the approach to develop the site and define
the ore bodies.
As part of the review of Teren-Sai the Company has narrowed its search
parameters of the 288km(2) site, and reduced the areas of interest, to
concentrate on those areas showing significant potential. Areas that are no
longer of significance are to be returned to the government for alternative
use.
H1 2022 Financial Review
The Company has reported a gross profit of US$17m for H1 2022, against US$14m
for H1 2021, with turnover of US$32m (H1 2021 US$23m).
The results are in line with budget, with 306.5kt of ore milled, the Company
is expecting to process up to 650,000t for the year. The average gold price
achieved was similar to the prior period at of US$1,830 (H1 2021 US$1,832).
Sekisovskoye produced 16,965oz of gold in H1 2022 (H1 2021: 13,066oz). Gold
sold during the period amounted to 17,542oz (H2 2021: 12,560oz).
The operating cash cost of production (cost of sales excluding depreciation
and provisions) for the period was US$730/oz (H1 2021 US$546/oz). The total
cash cost was US$884/oz as compared to US$766/oz in H1 2021. These are in line
with the expected costs for the period.
Administrative costs have been contained and were US$2.7m which is similar to
the prior period. Inflationary pressures are increasing in both Kazakhstan and
the UK, and the management will be monitoring the position closely to ensure
that action is taken to minimise any significant increase in costs to the
Company. The Company has benefited in the current period from the strength of
the US Dollar, (which is the currency in which revenues are received) against
the Kazakh, at the 31December 2021 it was 432 Kazakh Tenge, and the dollar has
averaged 448 Kazakh Tenge in the six month period. The current rate in
September is one US$ to 485 Kazakh Tenge.
In terms of finance costs these are similar to the prior period; with no new
loans in the period; the finance cost was US$1.7m in both periods. Interest
and loan commitments were paid as they arose, and plans are in place to repay
the bond of US$10m in December 2022.
The significant change in the financial position of the Company relates to the
movement in advance payments made to the contractor who is responsible for the
capital development and ore extraction services. As the development has
progressed and production growing, the payments have increased in the period.
The current contract runs until April 2023. A monthly drawdown and
reconciliation against monies advanced is done on a monthly basis as the mine
development continues. The Company generated an EBITDA of US$16.6m (2021:
US$13.4m), but a substantial amount of this was absorbed in the period by the
capex development prepayments as noted above.
As of 30 June 2022, the Company had cash balances of US$1.1m. A loan in
principal has been agreed with Bank Center Credit in Kazakhstan, there are
sufficient projected funds from this and from current trading to meet the
Company’s medium term plans. This includes the repayment of the US$10m bonds
that are due for repayment in December 2022.
Aidar Assaubayev
Chief Executive Officer
26 September 2022
Directors Responsibility Statement and Report on Principal Risks and
Uncertainties
Responsibility statement
The Board confirms to the best of their knowledge, that the condensed set of
financial statements have been prepared in accordance with the UK-adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority.
The interim management report includes a fair review of the information
required by:
DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
DTR 4.2.8R of the Disclosures and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during the period; and any changes in the related
party transactions described in the last annual report that could do so.
The Company’s management has analysed the risks and uncertainties and has in
place control systems that monitor daily the performance of the business via
key performance indicators. Certain factors are beyond the control of the
Company such as the fluctuations in the price of gold and possible political
upheaval. However, the Company is aware of these factors and tries to mitigate
these as far as possible. In relation to the gold price the Company is pushing
to achieve a lower cost base in order to minimise possible downward pressure
of gold prices on profitability. In addition, it maintains close relationships
with the Kazakhstan authorities in order to minimise bureaucratic delays and
problems.
Risks and uncertainties identified by the Company are set out on page 9 and 10
of the 2021 Annual Report and Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2022 to the
principal risks and uncertainties as set out in the 2020 Annual Report and
Accounts and these are as follows:
* Fiscal changes in Kazakhstan
* No access to capital
* Commodity price risk
* Currency risk
* Reliance on operating in one country
* Reliant on one operating mine
* Technical difficulties associated with developing the underground mines at
Sekisovskoye and Teren-Sai
* Failure to achieve production estimates
* COVID -19 uncertainties
* Health, safety and environment
The Directors do not expect any changes in the principal risks for the
remaining six months of the financial year.
Aidar Assaubayev
Chief Executive Officer
26 September 2022
ALTYNGOLD PLC
Consolidated statement of profit or loss – six months to 30 June 2022
Six months Six months
ended 30 June
ended 30 June
2022
2021
Unaudited Unaudited
US$’000 US$’000
Revenue 32,095 23,009
Cost of sales (15,137) (9,037)
Gross profit 16,958 13,972
Administrative expenses (2,714) (2,757)
Operating profit 14,244 11,215
Foreign exchange (954) (278)
Finance expense (1,734) (1,676)
Profit before taxation 11,556 9,261
Taxation (689) (510)
Profit attributable to equity shareholders 10,867 8,751
Profit per ordinary share Note
Basic and diluted (US cent) 3 39.76c 32.03c
ALTYNGOLD PLC
Consolidated statement of profit or loss and other comprehensive income
Six months Six months
ended 30 June ended 30 June
2022 2021
unaudited unaudited
(restated)
US$’000 US$’000
Profit for the period 10,867 8,751
Currency translation differences arising on translations (2,506) (1,493)
of foreign operations items which will or may be reclassified
to profit or loss
Total comprehensive profit for the period 8,361
attributable to equity shareholders
7,258
ALTYNGOLD PLC
Consolidated statement of financial position
Six months Six months
ended 30 June ended 30 June
2022 2021
Notes (unaudited) (audited)
US$’000 US$’000
Non-current assets
Intangible assets 5 12,576 13,016
Property, plant and equipment 6 34,130 33,163
Other receivables 7 10,348 5,996
Deferred tax asset 6,936 4,026
Restricted cash 35 13
64,025 56,214
Current assets
Inventories 10,775 8,522
Trade and other receivables 7 21,536 12,874
Cash and cash equivalents 1,148 3,478
33,459 24,874
Total assets 97,484 81,088
Current liabilities
Trade and other payables (6,030) (6,111)
Provisions (250) (186)
Borrowings 10 (19,374) (3,238)
(25,654) (9,535)
Net current assets 7,805 15,339
Non-current liabilities
Other financial liabilities & payables (450) (388)
Provisions (5,488) (5,082)
Borrowings 10 (5,366) (23,490)
(11,304) (28,960)
Total liabilities (36,958) (38,495)
Net assets 60,526 42,593
Equity
Called-up share capital (4,267) (4,267)
Share premium (152,839) (152,839)
Merger reserve 282 282
Other reserve - (333)
Currency translation reserve 56,958 54,452
Accumulated loss 39,340 60,112
Total equity (60,526) (42,593)
The financial information was approved and authorised for issue by the Board
of Directors on 26 September 2022 and was signed on its behalf by:
Aidar Assaubayev – Chief Executive Officer
ALTYNGOLD PLC
Consolidated statement of changes of equity
Share Share Merger Currency Share based Other Accumulated Total
capital
premium
reserve
translation
payment
reserves
losses
reserve
reserve
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2022 4,267 152,839 (282) (51,412) - - (50,207) 55,205
Profit for the period - - - - - - 10,867 10,867
Exchange differences on translating foreign operations - - - (5,546) - - (5,546)
Total comprehensive income for the period - - - (5,546) - - 10,867 5,321
At 30 June 2022 4,267 152,839 (282) (56,958) - - (39,340) 60,526
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2021 4,267 152,839 (282) (52,959) - 333 (68,863) 35,335
Profit for the period - - - - - - 8,751 8,751
Exchange differences on translating foreign operations - - - (1,493) - - (1,493)
Total comprehensive income for the period - - - (1,493) - - 8,751 7,258
At 30 June 2021 4,267 152,839 (282) (54,452) - 333 (60,112) 42,593
Audited US$'000 US$'000 US'000 US$'000 US$'000 US$’000 US$'000 US$'000
At 1 January 2021 4,267 152,839 (282) (52,959) - 333 (68,863) 35,335
Profit for the year - - - - - - 18,323 18,323
Exchange differences on translating foreign operations - - - 1,547 - - 1,547
Total comprehensive income - - - 1,547 - - 18,323 19,870
Transfer to reserves - - 2 - - (333) 333 -
At 31 December 2021 4,267 152,839 (282) (51,412) - - (50,207) 55,205
ALTYNGOLD PLC
Consolidated statement of cash flows
Six months ended Six months ended
30 June 2022 30 June 2021
(unaudited) (unaudited)
Note US$’000 US$’000
Net cash inflow from operating activities 8 13,622 1,819
Investing activities
Purchase of property, plant and equipment *(11,805) *(2,133)
Acquisition of intangible assets (189) (375)
Net cash used in investing activities (11,994) (2,508)
Financing activities
Loans received - 4,641
Loans repaid (2,668) (6,518)
Interest paid (1,282) (1,120)
Net cash flow decrease from financing activities (3,950) (2,997)
Decrease in cash and cash equivalents (2,322) (3,686)
Cash and cash equivalents at the beginning of the period 3,598 7,154
Effect of exchange rate fluctuations on cash held (128) 10
Cash and cash equivalents at end of the period 1,148 3,478
* Cash paid to purchase property, plant and equipment represents additions of
US4.9m (2021 :US$4.2m) (note 6) plus the cash amounts paid as a result of the
net increase in prepayments/payables of US$6.9m from the prior year.(2021 a
net decrease in prepayments/payables of $2.1m).
ALTYNGOLD PLC
Notes to the consolidated financial information
1. Basis of preparation
General
AltynGold Plc (the “Company”) is a Company incorporated in England and
Wales under the Companies Act 2006. The address of its registered office, and
place of business of the Company and its subsidiaries is set out within the
Company information at the end of this interim report.
The Company is registered and domiciled in England and Wales, whose shares are
publicly traded on the London Stock Exchange. The interim financial results
for the period ended 30 June 2022 are unaudited. The financial information
contained within this report does not constitute statutory accounts as defined
by Section 434(3) of the Companies Act 2006.
This interim financial information of the Company and its subsidiaries (“the
Group”) for the six months ended 30 June 2022 have been prepared, in
accordance with the UK-adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom’s Financial Conduct Authority, and on a
basis consistent with the accounting policies set out in the Group's
consolidated annual financial statements for the year ended 31 December 2021.
It has not been audited, does not include all of the information required for
full annual financial statements, and should be read in conjunction with the
Group's consolidated annual financial statements for the year ended 31
December 2021 , which has been prepared in accordance with both
“international accounting standards in conformity with the requirements of
the Companies Act 2006” and “international financial reporting standards
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European
Union”.
These interim financial statements do not comprise statutory accounts within
the meaning of section 434 of the Companies Act 2006. Statutory accounts for
the year ended 31 December 2021 were approved by the board of directors on 24
June 2022 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was qualified in relation to not obtaining
sufficient audit evidence in relation to a prepayment at the year end. Further
details are available on page 37 of the annual report.
The financial statements have not been reviewed.
The financial information is presented in US Dollars and has been prepared
under the historical cost convention. On 31 December 2021, IFRS as adopted by
the European Union at that date was brought into UK law and became UK adopted
international accounting standards, with future changes being subject to
endorsement by the UK Endorsement Board.
The same accounting policies, presentation and method of computation together
with critical accounting estimates, assumptions and judgements are followed in
this consolidated financial information as were applied in the Group's latest
annual financial statements except that in the current financial year, the
Group has adopted a number of revised Standards and Interpretations. However,
none of these have had a material impact on the Group. In addition, the IASB
has issued a number of IFRS and IFRIC amendments or interpretations since the
last annual report was published. It is not expected that any of these will
have a material impact on the Group.
Going concern
Turnover and profitability have continued to grow as the Group expands
production. The Company has made significant payments to facilitate the
capital development of the mine at Sekisovskoye and for ore extraction
services for which the contract runs to April 2023. These prepayments will be
offset as production and capital development continues during the year.
At the period end the Group had cash resources of US$1.1m (31 December 2021:
US$3.6m). The Board have reviewed the Group’s cash flow forecasts for the
period to December 2023. The forecasts are based on the current approved
budgets taking into account any adjustments from current trading. The
principal capital costs and to a large extent the mining costs of ore
extraction have now been made and the Directors are of the opinion that the
current cash balances and cash generated from operations will be sufficient
for the Group to meet its cash flow requirements. In addition, the Group are
in the final stages of agreeing a US$40m loan facility for further capital
development.
The Board have considered at the period end possible stress case scenarios
that they consider may likely impact the Group’s operations, financial
position and forecasts, such as factors impacting the production and possible
falls in gold prices. From the analysis undertaken the Board have concluded
that the Group will be able to continue to trade based on its existing
resources. The stress tests included a drop in the gold price of 10% from the
current gold price and budgeted production by 10%, in both scenarios and
combination of both together it was concluded that the Group had sufficient
cash reserves to continue to operate. The Board therefore considers it
appropriate to adopt the going concern basis of accounting in preparing these
financial statements.
2. Segmental information
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and assessing
performance of the operating segments and making strategic decision, has been
identified as the Board of Directors.
The Board of Directors consider there to be two operating segments, the
exploration and development of mineral resources at Sekisovskoye and at
Teren-Sai, both based in one geographical segment, being Kazakhstan. All sales
were made in Kazakhstan from the mine at Sekisovskoye. However, in relation to
Teren-Sai as there is discrete financial information available and the assets
account for greater than 10% of the combined total assets of all segments it
is a separate operating segment.
Teren-Sai is an exploration asset, details of the carrying value of the asset
are shown in note 5.
3. Profit per ordinary share
Basic profit per share is calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period. The weighted average number of ordinary shares
and retained profit for the financial period for calculating the basic loss
per share for the period are as follows:
Six months Six months
ended 30 ended 30
June 2022 June 2021
(unaudited) (unaudited)
The basic weighted average number of ordinary shares 27,332,933
in issue during the period
27,332,933
The profit for the period attributable to equity shareholders (US$’000s) 10,867 8,751
4. Alternative performance measures
The Directors have presented the alternative performance measures adjusted
EBITDA , operating cash cost and total cash cost as they monitor these
performance measures at a consolidated level and the Directors believe it is
relevant in measuring the Group’s performance.
A reconciliation of the alternative performance measures is shown below.
Adjusted EBITDA, operating cash cost and total cash cost are not defined
performance measures in IFRS. The Group’s definition of adjusted EBITDA may
not be comparable with similar titled performance measures as disclosed by
other entities.
Adjusted EBITDA Six months Six months
ended 30 June ended 30 June
2022 2021
(unaudited) (unaudited)
US$000's US $000's
Profit before taxation 11,556 9,261
Adjusted for
Finance expense 1,734 1,676
Depreciation of tangible fixed assets 2,339 2,167
Foreign currency translation 954 278
Adjusted EBITDA 16,583 13,382
Operating cash cost US$ US$
Cost of sales 15,137 9,037
Adjusted for
Depreciation of tangible fixed assets (2,339) (2,167)
12,798 6,870
Gold sold in the period per oz 17,542 12,560
Operating cash cost per oz 729 546
Total cash cost
Cost of sales 15,137 9,037
Adjusted for
Administrative expenses 2,714 2,757
Depreciation of tangible fixed assets (2,339) (2,167)
15,512 9,627
Gold sold in the period per oz 17,542 12,560
Total cash cost per oz 884 766
5. Intangible assets Teren-Sai Exploration and US$'000
geological data
evaluation costs
Cost
1 January 2021 9,026 8,650 17,676
Additions - 830 830
Amortisation capitalised - 585 585
Currency translation adjustment (225) (240) (465)
December 2021 8,801 9,825 18,626
Amortisation capitalised - 276 276
Additions - 190 190
Currency translation adjustment (632) (715) (1,347)
30 June 2022 8,169 9,576 17,745
Accumulated amortisation
1 January 2021 4,662 165 4,827
Charge for the period 585 - 585
Currency translation adjustment (125) (7) (132)
31 December 2021 5,122 158 5,280
Charge for the period 276 - 276
Currency translation adjustment (375) (12) (387)
30 June 2022 5,023 146 5,169
Net books values
30 June 2022 3,146 9,430 12,576
31 December 2021 3,679 9,667 13,346
The intangible assets relate to the historic geological information pertaining
to the Teren-Sai ore fields. The ore fields are located in close proximity to
the current open pit and underground mining operations of Sekisovskoye.
The Company is in the final stages of the renewal of the licence, an updated
and revised application was submitted to the relevant authorities in July 2022
for an extension to the exploration licence. The licence is for three years
and will commence on the date the licence is signed, which is expected to be
in Q4 2022. During the period of licence renewal, the company can continue its
exploration activities.
6. Property, plant and equipment
Mining Freehold Plant, Assets under Total
properties land Equipment construction
and fixtures and
buildings fittings
US$000 US$000 US$000 US$000 US$000
Cost
1 January 2021 13,264 24,050 21,102 1,973 60,389
Additions 3,356 197 2,800 2,187 8,540
Disposals - - (659) - (659)
Transfers - 1, 1,441 - (1,441) -
Transfer - inventories - - - 170 170
Currency translation adjustment (611) (654) (464) (67) (1,796)
31 December 2021 16,009 25,034 22,779 2,822 66,644
Additions 2,076 43 742 2,022 4,883
Disposals - - (54) - (54)
Transfers - - 645 (6531) -
Transfer to inventories - 1,383 - (500) (500)
Currency translation adjustment (1,697) (1,797) (1,689) (342) (5,525)
30 June 2022 16,388 23,280 22,423 3,357 65,448
Accumulated depreciation
1 January 2021 2,869 11,371 14,057 - 28,297
Charge for the period 699 2,188 1,599 - 4,486
Disposals - (2) (659) - (661)
Currency translation adjustment (218) (238) (372) - (828)
31 December 2021 3.350 13,319 14,625 - 31,294
Charge for the period 401 1,088 850 - 2,339
Currency translation adjustment (254) (985) (1,076) - (2,315)
30 June 2022 3,497 13,422 14,399 - 31,318
Carrying amount
30 June 2022 12,891 9,858 8,024 3,357 34,130
31 December 2021 12,659 11,715 8,154 2,822 35,350
7. Trade and other receivables
Non-current
30 June 31 December
2022 2021
(unaudited) (audited)
US$000's US $000's
VAT recoverable 1,277 1,375
Prepayments- advances to suppliers 9,071 2,550
10,348 3,925
The amount recoverable in relation to Value Added Tax is expected to be
recovered by offset against VAT payable in future periods.
The advances to suppliers relate to mining services for capital development of
the mine at Sekisovskoye.
Current
30 June 31 December
2022 2021
(unaudited) (audited)
US$000's US $000's
Trade receivables 902 -
VAT recoverable 5,428 5,054
Prepayments - advances to suppliers 11,322 14,500
Prepayments - other 3,929 -
Other receivables 96 2,917
Other receivables/prepayments – provision (141) (941)
21,536 21,530
The prepayment of advances to suppliers relates to payments for mining
services for the extraction of ore.
8. Notes to the cash flow statement
Six months Six months
ended 30 June ended 30 June
2022 2021
(unaudited) (unaudited)
US$000's US $000's
Profit before taxation 11,556 9,261
Adjusted for
Finance expense 1,734 1,676
Depreciation of tangible fixed assets 2,339 2,167
Increase in inventories (1,809) (2,689)
Increase in trade receivables (1,310) (7,641)
Increase/(decrease) in trade and other payables 158 (1,233)
Foreign currency translation 954 278
Cash inflow from operations 13,622 1,819
Income taxes - -
13,622 1,819
9. Related party transactions
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the
Group, is set out below in aggregate for each of the categories specified in
IAS 24 - “Related Party Disclosures”. The total amount remaining unpaid
with respect to remuneration of key management personnel amounted to
US$114,000 (31 December 2021 US$122,000).
Six months Six months
ended 30 Ended 30
June 2022 June 2021
US$000 US$000
Short term employee benefits 138 66
Social security costs 9 2
147 68
During the period, the following transactions were connected with Company’s
in which the Assaubayev family have a controlling interest:
* An amount is owing to Asia Mining Group of US$77,816, (31 December 2021:
US$83,850) and is included within trade payables.
* Loan amounts due by the Group to Amrita Investments Limited a company
controlled by the Assaubayev family total US$12,000 (31 December 2021
US$12,000).
* The group made sales to Altyn Group Qazaqstan of US$122,000 the amount is
included with in receivables at the period end.
10 . Borrowings
Six months Year ended
ended 30 June 31 December
2022 2021
(unaudited) (audited)
US$000's US $000's
Current loans and borrowings
Bonds 9,891 9,723
Bank loans 5,354 5,298
Related party loans 12 12
Other borrowings - 54
15,257 15,087
Due one-two years
Bonds - -
Bank loans 3,049 3,546
3,049 3,546
Due two-five years
Bank loans 6,434 8,675
6,434 8,675
Total non-current loans and borrowings 9,483 12,221
Bond Listed on Astana International Exchange
The total number of bonds at the period end amounted to US$10m at a coupon
rate of 9%, the bonds are repayable in December 2022. At the period end the
carrying value approximates to their fair value.
Bank loans
The bank loans are repayable in instalments and bear interest at 6%-7% on the
US$ denominated loans and at 15.5% on the Kazakh denominated loans.
The bank loans are secured over the assets of the Group.
11. Reserves
A description and purpose of reserves is given below:
Reserve Description and purpose
Share capital Amount of the contributions made by shareholders in return for the issue of
shares.
Share premium Amount subscribed for share capital in excess of nominal value.
Merger Reserve Reserve created on application of merger accounting under a previous GAAP.
Currency translation reserve Gains/losses arising on re-translating the net assets of overseas operations
into US Dollars.
Accumulated losses Cumulative net gains and losses recognised in the consolidated statement of
financial position.
12. Events after the balance sheet date
In July 2022 the Company agreed in principal a US$40m loan from Bank Center
Credit in Kazakhstan, the loan facility is expected to be signed and details
agreed during Q4 2022.
An extension for the licence at Teren-Sai has been applied for in July 2022 to
continue exploration works for a further three years.
ALTYNGOLD PLC
Company information
Directors Kanat Assaubayev Chairman
Aidar Assaubayev Chief executive officer
Sanzhar Assaubayev Executive director
Ashar Qureshi Non-executive director
Andrew Terry Non-executive director
Maryam Buribayeva Non-executive director
Victor Shkolnik Non-executive director
Secretary Rajinder Basra
Registered office and number Company number: 05048549
28 Eccleston Square
London
SW1V 1NZ
Telephone: +44 208 932 2455
Company website www.altyngold.uk
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.altyngold.uk&esheet=52925346&newsitemid=20220925005040&lan=en-US&anchor=www.altyngold.uk&index=2&md5=c50b2df2a11e4ba08050694d95d5642f)
Kazakhstan office 10 Novostroyevskaya
Sekisovskoye Village
Kazakhstan
Telephone: +7 (0) 72331 27927
Fax: +7 (0) 72331 27933
Auditor BDO LLP,
55 Baker Street,
London W1U 7EU
Registrars Neville Registrars
Neville House
Steelpark Road
Halesowen
West Midlands B62 8HD
Telephone: +44 (0) 121 585 1131
Bankers NatWest Bank plc
London City Commercial Business Centre
7th Floor, 280 Bishopsgate
London
EC2M 4RB
LTG Bank AG
Herrengasse 12
FL-9490, Vaduz
Principal of Liechtenstein
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