REG-Altyn Plc Half-year Report
30/09/2020 18:25
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Half-year Report
Altyn Plc (“Altyn” or the “Company”), the gold mining and development
company, announces its unaudited results for the six months to 30 June 2020.
There has been a significant improvement in the current period with the
impetus given by the introduction of the new equipment, in Q2 2020, increasing
production and accelerating future mine development. The positive benefits of
the introduction of the new equipment is continuing in to the second half of
the year. This in addition to a favourable exchange rate, cost savings and
higher gold price has resulted in a profit in the current period.
Highlights:
Mine development
* Ore was mined in the period from several ore bodies at different depths,
including ore bodies 1, 2, 5, 6, 8 and11.
* A number of ore bodies have been prepared for production in H2 2020, ore
bodies 1,10, 11 and 14.
* Extensive capital development completed in the period lowering transport
decline 1 to +178masl and transport decline 2 to +163masl.
* A significant level of maintenance was carried out on grinding mills 1 and 2,
and a fine crusher added to the production line, in addition maintenance was
carried out on the sorption tanks and other parts of the processing plant.
* Exploration continued at both Sekisovskoye and Teren-Sai, involving extensive
drilling and core sampling to delineate the ore bodies and provide further
detailed information in relation to the geology of the area.
Production
* Ore extracted in the period was 235,324t (H1 2019: 99,000t), the current
monthly run rate is circa 45,000t-50,000t.
* Gold recovery averaged 79.8% during the 6 month period (H1 2019: 81.53%).
* H1 2020 gold production from Sekisovskoye was 6,990oz, compared with H1 2019
of 5,561 oz. The level of production in the period was affected by the
scheduled process plant maintenance which was largely completed in H1 2020.
* The actual milled ore was 186,966t (H1 2019: 114,000t), in the current period.
Financial
* The turnover has increased to US$11.5m (H1 2019: US$7.2m). The gold price
achieved averaged US$1,693oz during the period (H1 2019: US$1,308oz).
* The Company made an operating profit of US$3.9m (H1 2019: profit of US$1.3m),
with a net profit before taxation of US$1.0m (H1 2019: loss of US$0.6m).
* The total cash cost of production was US$926oz (H1 2019: US$1,015oz).
* EBITDA achieved was positive at US$5m (H1 2019: US$1.5m).
* During the period cash funding was raised from the Company’s existing
facility with Bank Center Credit of US$7m and a further placing of the bonds
on the Astana Stock Exchange of US$6.9m (net of expenses).
* Cash flow from operating activities was positive at US$1.3m, (H1 2019:
US$0.4m)
* Cash balances at 30 June 2020 were US$7.9m.
* Freedom finance JSC have given notice that they will take up the share options
issued to them resulting in an additional 154,028.981 shares being issued at a
consideration of US$1.5m.
Aidar Assaubayev, CEO of Altyn Plc commented:
“With the required capital in place we are pleased that the Company is
progressing its plans of increasing production and realising the full
potential of the gold targets. With the potential of Teren-Sai and the
increased production from the existing mine, the future looks positive for the
Company and its shareholders
In relation to COVID -19, the Company has complied with all government
directives and has been sensitive to the needs and support required by its
employees, currently there has been no negative impacts on the Group’s
trading but the Board will keep this risk area under review ”.
For further information please contact:
Altyn PLC
For further information please contact:
Rajinder Basra, CFO +44 (0) 207 932 2456
Information on the Company
Altyn 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.
To read more about Altyn Plc please visit our website www.altyn.uk
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.altyn.uk&esheet=52298099&newsitemid=20200930005831&lan=en-US&anchor=www.altyn.uk&index=1&md5=0fdda0601196db7231d584408dfb64c2)
H1 2020 Review
Mine development
Sekisovskoye
The key asset of the Company is the Sekisovskoye mining site and the sub-soil
use contract has been extended until 2030.
During the period the Company mined ore bodies 5, 6 and 8 at +200 metres above
sea level (masl), ore body 11 at +187masl, ore body 2 at +320masl and ore body
1 at +370masl. In addition to mining the ore, the Company prepared a number of
the ore bodies for production. These ranged from ore bodies 1 and 10 at
+303masl, to ore body 11 at +174masl.
In the first half of 2020, the company also continued its capital investment
in developing and expanding the mine.
The key developments in the period were as follows:
• increase the transport decline 1: from level +183masl to level +163masl,
• increase the transport decline 2: from level +200masl to level +178masl,
• develop the ventilation raise from level +180masl to level + 200masl,
• create an underground chamber for the Korfmann ventilation unit at the
level +330masl.
In addition to the above there were also a number of other smaller development
projects completed in order to raise production in H2 2020.
In relation to the Company’s exploration program, the following ore bodies
were the subject of extensive drilling and investigation ore bodies 3, 5 and 8
from level +210masl to 150masl, and ore body 10 from +300masl to +250masl.
This entailed the drilling and sampling of 6,630rm. As a result of the
exploratory drilling, ore bodies have been better defined and local mining
projects developed for future production.
The maintenance at the mine which is an ongoing process is outlined below, the
management try to spread this over the course of the year. Inevitably as in
the current period there is sometimes disruption to production schedules,
however the major refurbishments have now been finalised in H1 2020.
Teren-Sai
In relation to Teren-Sai the Company has concentrated its efforts on two
locations within the extensive licence area, known as Area No.2 and Area No.3.
In Area No.2 the Company has continued exploration works and conducted 2,065rm
of core drilling, and also conducted pneumatic drilling of the site. The
Company has now clarified the morphology of the ore body and prepared
preliminary plans to develop the site for mining. This target will initially
be mined as an open pit operation, progressing to underground operations.
In Area No.3 the prospecting and exploration core drilling amounted to
3,200rm. This has resulted in a much greater understanding of the geology and
structure of the ore bodies. Further drilling and exploration is planned for
this area in H2 2020, there are a number of promising targets that are
emerging.
The current plan as outlined in the 2019 Annual Report is to operate both open
pit and underground mining operations at Teren-Sai Area No. 2. The Company is
in the process of reviewing and updating its operational plans based on the
drilling and exploration information that it has obtained. The Company
currently plans to prepare the site for production in 2020/2021 and commence
production in 2022.
H1 2020 Operational Overview – Sekisovskoye
Underground mine H1 2020 H1 2019
Ore extracted tons 235,724 98,725
Gold grade g/t 1.49 2.09
Silver grade g/t 1.10 1.77
Mineral processing H1 2020 H1 2019
Milling tons 186,966 113,669
Gold grade g/t 1.53 1.89
Silver grade g/t 1.05 1.67
Gold recovery % 79.79% 81.53%
Silver recovery % 72.88% 70.01%
Gold produced ounces 6,990 5,561
Silver produced ounces 4,555 4,111
During the period the ore extracted was at an average rate of 39,000t a month,
this has been increasing steadily as the new equipment has come on stream, the
current monthly run rate is circa 45,000t-50,000t. In the September the
Company is expecting to receive an additional excavator – Volvo EC300DL
which is expected to further increase ore extraction.
During the period the Company made a significant capital investment in the
underground equipment from the funds raised from the bank and from the listing
of the US10m bonds on the Astana Stock Exchange. The equipment purchased
included the following: 3 UG trucks CAT AD-30, 3 LHD CAT R 1300, 3 Shacman
trucks, an LHD ZL-50, Atlas Copco Diamec, Jumbo Drill Boomer T1D and
production Drill Boomer T1D LHD. In addition to the above the Company
purchased a significant amount of equipment in order to improve the
ventilation and heating in the underground mine.
The crushing and milling is lower than that budgeted as there was extensive
maintenance carried out in the period on both grinding mills and the sorption
tanks. The Company has now also added a fine crusher which was installed and
tested in the period. The majority of the maintenance on the mills has now
been completed but it is expected there will be some further maintenance in H2
on the grinding mills as it is being completed in stages.
As outlined in the RNS in June 2020, the average grade was lower than the
previous period but was in line with our internal budgets at 1.5g/t. There has
been significant capital and horizontal development carried out by the Company
at the mine. In addition, the new exploration drilling equipment only arrived
at the end of the second quarter. It is expected that there should be a marked
reduction in the dilution and improvement in the grades in the second half of
the year in line with our annual budget. The lower grade ore also affected the
recovery rate which was lower at 79.79%, again this is expected to increase to
be between 82% - 83% in line with the budget.
H1 2020 Financial Review
The Company has reported a gross profit of US$3.9m for H1 2020, against
US$1.3m for H1 2019, with turnover of US$11.5m (H1 2019 US$7.2m). The Company
has seen a significant increase in its margin, this is a result of the
combination of three principal factors, the increase in gold price which is
currently in the region of US$1,900/oz, the increase in the $ rate against the
Kazakh Tenge and finally cost savings the Company has made principally in
relation to its payroll costs.
Sekisovskoye produced 6,990oz of gold in H1 2020 (H1 2019: 5,561oz). Gold sold
during the period amounted to 6,790oz (H1 2019: 5,369oz) at an average price
of US$1,693/oz (H1 2019: US$1,338/oz). The average price of sales achieved
includes revenues generated from silver sales in the period, which are treated
as incidental to gold production.
The operating cash cost of production (cost of sales excluding depreciation
and provisions) for the period was US$794/oz (H1 2019 US$801/oz). The total
cash cost was US$926/oz as compared to US$1,073/oz in H1 2019.
During the period the Company increased its borrowing from Bank Center Credit
based in Kazakhstan to fund its acquisition of equipment, the borrowing as at
30 June 2020 amounts to US$16.2m and is repayable in instalments till 2026.
In addition the Company raised funds of US$6.9m (less expenses), being the
balance of the funds in relation to the bond placement initiated in 2019 on
the Astana Stock exchange. The total amount repayable now amounts to US$10m
due in 2022.
As of 30 June 2020, the Company had cash balances of US$7.9m. The Company
currently has sufficient cash resources to achieve its budgeted medium term
plans.
The Company has received notification that Freedom Finance JSC, will take up
its entitlement to its share options resulting in an additional 154,028,981
shares being issued for a consideration of US$1.5m. Based on the exchange
rates agreed the shares will be issued at an average price of .75p a share.
The Company secretary has been instructed to prepare the necessary forms and
shareholders will updated as the issue progresses.
Aidar Assaubayev
Chief Executive Officer
30 September 2020
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2020 2019 2019
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Revenue 14,908
Cost of sales (7,571) (5,914) (12,390)
Gross profit 3,924 1,270 2,518
Administrative expenses (918) (1,459) (2,600)
Impairments - 81 107
Operating profit/(loss) 3,006 (108) 25
Foreign exchange (890) 12 116
Finance Expense (867) (507) (1,183)
Profit/(loss) before taxation 1,249 (603) (1,042)
(2
Taxation - - (214)
Profit/(loss) attributable to equity shareholders
1,249 (603) (1,256)
Profit/(loss) per ordinary share Note
Basic (US cent) 2 0.049c (0.02c) (0.05c)
Profit/(loss) per ordinary share - -
Diluted (US cent) 2 0.045c
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2020 2019 2018
(unaudited)
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Profit/l(loss) for the period/year 1,249 (603) (1,256)
Currency translation differences arising on translations of foreign operations (1,649) 411 129
items which will or may be reclassified to
profit or loss
Currency translation differences arising on translations of foreign operations - -
relating to taxation
- - (461)
Total comprehensive loss for the period/year attributable to equity
shareholders
(400) (192) (1,588)
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2020 2019 2020
Notes
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Non-current assets
Intangible asset 3 12,527 12,481 12,943
Property, plant and equipment 4 32,853 29,037 30,316
Other receivables 5,478 1,315 6,048
Deferred tax asset 6,971 8,078 7,346
Restricted cash - - -
57,829 50,911 56,663
Current assets
Inventories 6,014 2,017 3,631
Trade and other receivables 3,817 3,829 3,615
Cash and cash equivalents 7,874 50 1,934
17,705 5,896 9,180
Total assets 75,534 56,807 65,843
Current liabilities
Trade and other payables (6,924) (8.645) (7,553)
Other financial liabilities - - -
Provisions (130) (152) (130)
Borrowings (6,178) (2,947) (2,550)
(13,232) (11,744) (10,233)
Net current assets/(liabilities) 4,473 (5,848) (1,053)
Non-current liabilities
Other financial liabilities & payables (751) (1,521) (2,297)
Provisions (5,142) (4,745) (5,007)
Borrowings (23,455) (4,129) (15,027)
(29,348) (10,395) (22,331)
Total liabilities (42,580) (22,140) (32,564)
Net assets 32,954 34,668 33,279
Equity
Called-up share capital 7 4,068 4,054 4,055
Share premium 151,538 151,470 151,476
Merger reserve (282) (282) (282)
Other reserve 333 333 333
Currency translation reserve (49,751) (47,359) (48,102)
Accumulated loss (72,952) (73,548) (74,201)
Total equity 32,954 34,668 33,279
The financial information was approved and authorised for issue by the Board
of Directors on 30 September 2020 and was signed on its behalf by:
Aidar Assaubayev – Chief Executive Officer
Share capital Share premium Merger reserve Currency translation Other Accumulated losses Total
reserve reserves
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2020 4,055 151,476 (282) (48,102) 333 (74,201) 33,279
Profit for the period - - - - - 1,249 1,249
Exchange differences on translating foreign operations - - - (1,649) - - (1,649)
Total comprehensive loss for the period - - - (1,649) - 1,249 (400)
New share capital subscribed 13 62 - - - - 7 75
At 30 June 2020 4,068 151,538 (282) (49,751) 0 0 333 (72,952) 32,954
Unaudited US$'000 US$'000 US'000 US$'000 US$’000 US$'000 US$'000
At 1 January 2019 4,054 151,470 (282) (47,770) 333 (72,945) 34,860
Loss for the period - - - - - (603) (603)
Exchange differences on translating foreign operations - - - 411 - - 411
Total comprehensive loss for the period - - - 411 - (603) (192)
At 30 June 2019 4,054 151,470 (282) (47,289) 333 (73,548) 34,668
Audited US$'000 US$'000 US'000 US$'000 US$’000 US$'000 US$'000
At 1 January 2019 4,054 151,470 (282) (47,770) 333 (72,945) 34,860
Loss for the year - - - - - (1,256) (1,256)
Other comprehensive loss - - - (332) - - (332)
Total comprehensive loss for the year - - - (332) - (1,256) (1,588)
New share capital subscribed 1 6 - - - - 7
At 31 December 2019 4,055 151,476 (282) (48,102) 333 (74,201) 33,279
Six months ended 30 June 2020 Six months ended 30 Year ended 31 December 2019
June 2019
Note (unaudited) unaudited (audited)
US$’000 US$’000 US$’000
Net cash inflow/(outflow) from operating activities 5 1,280 352 (2,832)
Investing activities
Purchase of property, plant and equipment (6,371) (2,291) (7,180)
Disposal of property, plant and equipment - - 20
Acquisition of intangible assets (265) - (552)
Net cash used in investing activities
(6,636) (2,291) (7,712)
Financing activities
Loans received 13,956 2,023 14,089
Loans and Interest paid (2,660) (139) (1,716)
Net cash flow from financing activities
11,296 1,884 12,373 12,373
Increase/(decrease) in cash and cash equivalents
5,940 (55) 1,829
Cash and cash equivalents at the beginning of the period/year
1,934 105 105
Cash and cash equivalents at end of the period/year
7,874 50 1,934
1. Basis of preparation
General
Altyn Plc 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 2020 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 2020 have been prepared, in
accordance with IAS34 ( interim financial statements) 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 2019. 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 2019.
The 2019 annual report and accounts, as filed with the Registrar of Companies,
received an unqualified opinion from the auditors.
The financial information is presented in US Dollars and has been prepared
under the historical cost convention.
The same accounting policies, presentation and method of computation 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
The current cash position is sufficient to cover ongoing operating and
administrative expenditure for the next 12 months from the date these accounts
were released.
The Directors consider that the cash generated from its operations from the
Group's producing assets to be sufficient to cover the expenses of running the
Group's business for the foreseeable future. As reported in the Annual Report
2019 the Board has considered any disruption that may be caused by the impact
of COVID – 19 on the Group’s operations and any supply chain disruption.
Having considered and updated various stress tests and possible scenarios, the
Board considers that the Company has sufficient funds to continue to trade.
The cash forecasts have included the consideration of COVID – 19, the
maturing loan liabilities, the principal ones being the maturing bond
liabilities in 2021, and other loan commitments of the Company.
At present there has been little impact on the Company’s production from the
effects of the COVID - 19 pandemic.
The Company has therefore adopted the going concern basis in the preparation
of these financial statements.
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 IAS 34 Interim
Financial Reporting as adopted by the EU;
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 8 and 9
of the 2019 Annual Report and Accounts and are reviewed on an ongoing basis.
There have been no significant changes in the first half of 2020 to the
principal risks and uncertainties as set out in the 2019 Annual Report and
Accounts and these are as follows:
* Fiscal changes in Kazakhstan
* No access to capital
* Commodity price risk
* Currency risk
* Changes to mining code in Kazakhstan
* Reliance on operating in one country
* Reliant on one operating mine
* Technical difficulties associated with developing the underground mine at
Sekisovskoye and Teren-Sai
* Failure to achieve production estimates
* COVID -19 uncertainties
* Health, safety and environment
2. Profit/(loss) per ordinary share
Basic profit/(loss) per share is calculated by dividing the loss 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/(loss)t for the financial period for calculating the basic
loss per share for the period are as follows:
Six months Six months Year ended
ended 30 ended 30 31 December
June 2020 June 2019 2019
(unaudited) (unaudited) (audited)
2,569,703,561 2,567,875,463 2,567,772,041
The basic weighted average number of ordinary shares in issue during the
period
1,249 (603) (1,256)
The profit/(loss) for the period attributable to equity shareholders
(US$’000s)
The potential number of shares which could be issued following the conversion
of the bonds currently outstanding amounts to approximately 227m shares being
issued on conversion, a total of 2,797,556,561 shares which is used in the
calculation of diluted earnings per share.
3. Intangible assets
Teren-Sai Exploration and evaluation costs US$'000
geological data
Cost
1 January 2019 9,889 5,919 15,808
Additions - - -
Amortisation capitalised - 501 501
Currency translation adjustment 112 62 174
30 June 2019 10,001 6,482 16,483
Additions - 552 552
Amortisation capitalised - 491 491
Currency translation adjustment (70) (37) (107)
December 2019 9,931 7,488 17,419
Additions - 265 265
Amortisation capitalised - 369 369
Currency translation adjustment (523) (394) (917)
30 June 2020 9,408 7,728 17,136
Accumulated amortisation
1 January 2019 3,470 - 3,470
Charge for the period 501 - 501
Currency translation adjustment 31 - 31
30 June 2019 4,002 - 4,002
Charge for the period 491 - 491
Currency translation adjustment (17) (17)
31 December 2019 4,476 - 4,476
Charge for the period 369 - 369
Currency translation adjustment (236) - (236)
30 June 2020 4,609 - 4,609
Net books values
30 June 2019 5,999 6,482 12,481
31 December 2019 5,455 7,488 12,943
30 June 2020 4,799 7,728 12,527
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. In May
2016 the Company was awarded an exploration and evaluation contract, which is
valid for six years, with a right to extend for a further 4 years. Ongoing
costs in relation to exploration and evaluation are capitalised.
4. Property, plant and equipment
Mining properties Freehold land Plant, Equipment Assets under construction Total
and leases and buildings fixtures and fittings
US$000 US$000 US$000 US$000 US$000
US$000 US$000
Cost
1 January 2019 11,730 24,481 14,748 978 51,937
Additions 1,451 - 652 189 2,292
Disposals - (4) (27) - (31)
Transfers - - - (221) (221)
Currency translation adjustment 136 236 135 11 518
30 June 2019 13,317 24,713 15,508 957 54,495
Additions 689 71 2,056 112 2,928
Disposals - - (48) - (48)
Transfers - 134 - 6 140
Currency translation adjustment (57) (132) (70) (8) (267)
31 December 2019 13,949 24,786 17,446 1,067 57,248
Additions 1,269 - 4,806 296 6,371
Disposals - - (180) - (180)
Transfers (924) 924 - (131) (131)
Currency translation adjustment (890) (1,304) (889) (53) (3,136)
30 June 2020 13,404 24,406 21,183 1,179 60,172
Accumulated depreciation
1 January 2019 2,220 6,291 13,305 - 23,458
Charge for the period 122 1,050 440 - 1,612
Disposals - (3) (23) - (26)
Currency translation adjustment 21 184 121 - 326
30 June 2019 2,363 9,522 13,573 - 25,458
Charge for the period 87 1,083 571 - 1,741
Disposals - - (180) - (180)
Currency translation adjustment (9) (149) (62) - 220
Transfer - 107 (1 (107) - -
31 December 2019 2,441 10,563 13,928 - 26,932
Charge for the period 219 931 797 - 1,947
Disposals - - (180) - (180)
Currency translation adjustment (128) (556) (696) - (1,380)
Transfer - - - - -
30 June 2020 2,532 10,938 13,849 - - 27,319
Net Book Values 9,510 16,190 1,713 978 28,391
1 January 2019 10,872 13,468 7,334 1,179 32,853
30 June 2019 10,954 15,191 1,935 957 29,037
31 December 2019 11,508 14,223 3,518 1,067 30,316
30 June 2020 10,872 13,468 7,334 1,179 32,853
5. Notes to the cash flow statement
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2020 2019 2019
(unaudited) US$000's (unaudited) (audited)
US$000's US $000's
Profit/(loss) before taxation 1,249 (603) (1,042)
Adjusted for
Finance expense 867 507 1,183
Depreciation of tangible fixed assets 1,947 1,612 3,353
Increase in inventories (2,424) (720) (2,115)
Other financial liabilities - (122) (122)
Increase in trade receivables (102) (733) (1,495)
(Increase)/decrease in trade and other payables (1,147) 418 (2,533)
Loss/(gain) on disposal of property, plant and equipment - 5 (15)
Impairment and provisions - - 70
Foreign currency translation 890 (12) (116)
Cash inflow/(outflow) from operations 1,280 352 (2,832)
Income taxes - - -
1,280 352 (2,832)
6. 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$59,000
(31 December 2019 US$149,000).
Six months Six months Year to
ended 30 ended 30 December
June 2020 June 2019 2019
US$000 US$000 US$000
Short term employee benefits 35 55 122
35 55 122
Social security costs 2 3 7
37 58 129
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$67,000, (31 December 2019:
US$165,000) and is included within trade payables.
* Loans at an average in interest rate of 7% were made to the subsidiaries by
Amrita Investments Limited. The total amount currently outstanding including
accrued interest amounts to US$Nil (31 December 2019 US$1,047,000).
* An amount of US$45,000 is owing to a member of the Assaubayev family on an
interest free basis on demand basis, (31 December 2019 US$673,000).
* An interest free loan of US$81,000 is repayable on demand is due to Chartmile
Inc. (31 December 2019: US$81,000).
6. Related party transactions (Cntd.)
* The Company has in issue a convertible bond issued to African Resources
Limited which carries a coupon rate of 10% per annum payable semi-annually in
arrears in February and July each year. Unless the bonds are re-purchased and
cancelled redeemed or converted prior to the scheduled maturity date, they
will be repaid in February 2021 at their principal amount. At 30 June 2020 an
amount of US$2.2m, including accrued interest was payable on the remaining
bonds.
* In February 2020 the Company was informed that holders an aggregate nominal
value of U$ 1.5 million of Altyn plc’s 10% convertible bonds due 2021, had
gone into liquidation. The liquidators were seeking to accelerate the bonds
held by the entity in liquidation and demanding immediate repayment. As the
monies raised by the Company had already been earmarked for investment
projects, assistance was provided by Amrita Investments Limited, a company
beneficially owned by the Assaubayev family. After a period of negotiations,
the parties entered into a series of transactions pursuant to which Amrita
agreed to acquire the aforesaid bonds and the liquidators’ claims were
settled.
7. Share capital
In June 2020 the Company issued 10,429,230 shares at a total value of U$75,000
in order to settle outstanding remuneration due to a former Director of the
Company. The shares rank pari-passu with the existing shares in issue.
8. 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.
Share based payment Amount accrued in relation to the share based payment charge relating to the
share options issued.
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.
9. Events after the balance sheet date
There were no significant post balance sheet events to report.
This report will be available on our website at www.altyn.uk
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.goldbridgesplc.com%2F&esheet=52298099&newsitemid=20200930005831&lan=en-US&anchor=www.altyn.uk&index=2&md5=716e406533735aeb3709cbedc0e04af9)
Directors Kanat Assaubayev Chairman
Aidar Assaubayev Chief executive officer
Sanzhar Assaubayev Executive director
Ashar Qureshi Non-executive director
Vladimir 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.altyn.uk
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.altyn.uk&esheet=52298099&newsitemid=20200930005831&lan=en-US&anchor=www.altyn.uk&index=3&md5=994b121c5934e21addf5f55432c1a68d)
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
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200930005831/en/
(https://www.businesswire.com/news/home/20200930005831/en/)
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