REG - Central Asia Metals - Half-year Report <Origin Href="QuoteRef">CAML.L</Origin> - Part 2
12/09/2016 07:05
- Part 2: For the preceding part double click ID:nRSL4637Ja
5,554
Loss from discontinued operations attributable to owners of the parent (77) (112)
Total 10,599 5,442
Weighted average number of ordinary shares in issue 111,558,091 111,558,091
Adjusted for: - Share Options 2,643,025 2,736,700
Weighted average number of ordinary shares for diluted earnings per share 114,201,116 114,294,791
Diluted earnings per share $ cents $ cents
From continuing operations 9.35 4.86
From discontinued operations (0.07) (0.10)
From profit for the period 9.28 4.76
7. Property, plant and equipment
Construction in progress Plant and equipment Mining assets Motor vehicles and office equipment Total
Group $'000 $'000 $'000 $'000 $'000
Cost
At 1 January 2015 7,683 81,990 - 1,715 91,388
Additions 6,416 935 - 486 7,837
Disposals - (76) - (65) (141)
Change in estimate - asset retirement obligation - 207 - - 207
Transfers (9,668) 9,658 - 10 -
Acquisition of Copper Bay - 3 - - 3
Transfer from intangible assets - - 1,601 - 1,601
Exchange differences (2,428) (43,309) - (845) (46,582)
At 31 December 2015 2,003 49,408 1,601 1,301 54,313
Additions 9,291 226 - 79 9,596
Disposals - (223) - (3) (226)
Change in estimate - asset retirement obligation - 150 - - 150
Transfers (1,360) 1,356 - 4 -
Exchange differences 171 51 3 3 228
At 30 June 2016 10,105 50,968 1,604 1,384 64,061
Accumulated depreciation
At 1 January 2015 - 16,000 - 727 16,727
Provided during the year - 7,630 - 164 7,794
Disposals - (69) - (56) (125)
Transfer from intangible assets - - 62 - 62
Exchange differences - (10,608) - (337) (10,945)
At 31 December 2015 - 12,953 62 498 13,513
Provided during the period - 1,497 19 72 1,588
Disposals - (223) - (3) (226)
Exchange differences - 31 - 10 41
At 30 June 2016 - 14,258 81 577 14,916
Net book value at 31 December 2015 2,003 36,455 1,539 803 40,800
Net book value at 30 June 2016 10,105 36,710 1,523 807 49,145
Following receipt of the regulatory approvals required for the Kounrad Stage 2
Expansion in November 2015, management has extended the useful economic lives
of certain property, plant and equipment and the fair value uplift on the
Kounrad Transaction. The original estimate of 10 years useful economic life
has now been increased through to 2034 which represents the end of the subsoil
user licence. This change in estimate was applied from 1 January 2016 and has
resulted in a reduction in the Group depreciation charge.
The change in estimate in relation to the asset retirement obligation of
$150,000 is as a result of adjusting the provision recognised to take into
account the expansion of the SX-EW plant at Kounrad. The net present value of
future expected costs has been calculated using an inflation rate of 5.68% (H1
2015: 4.30%) and discount rate of 7.27% (H1 2015: 8.07%) representing the risk
free rate (pre-tax) for Kazakhstan.
The fall in value of the Tenge during 2015 resulted in non-cash foreign
exchange losses within property, plant and equipment for the year ended 31
December 2015. This is due to the translation on consolidation of the Group's
Kazakhstan based subsidiaries whose functional currency is the Tenge as well
as the goodwill and fair value uplift adjustments to the carrying amounts of
assets and liabilities arising on the Kounrad Transaction which are
denominated in Tenge.
8. Intangible assets
Goodwill Exploration and evaluation costs Mining licences and permits Computer software Total
Group $'000 $'000 $'000 $'000 $'000
Cost
At 1 January 2015 20,291 2,805 60,399 55 83,550
Additions - 542 - 14 556
Transfers to property, plant and equipment - (1,601) - - (1,601)
Acquisition of Copper Bay - 1,641 (3,222) - (1,581)
Exchange differences (10,185) (1,348) (26,546) (31) (38,110)
At 31 December 2015 10,106 2,039 30,631 38 42,814
Additions - 763 4 13 780
Exchange differences 18 - (114) - (96)
At 30 June 2016 10,124 2,802 30,521 51 43,498
Accumulated amortisation
At 1 January 2015 - 64 1,850 31 1,945
Provided during the year - 41 2,668 11 2,720
Transfers to property, plant and equipment - (62) - - (62)
Exchange differences - (43) (1,994) (19) (2,056)
At 31 December 2015 - - 2,524 23 2,547
Provided during the period - - 758 11 769
Exchange differences - - 4 - 4
At 30 June 2016 - - 3,286 34 3,320
Net book value at 31 December 2015 10,106 2,039 28,107 15 40,267
Net book value at 30 June 2016 10,124 2,802 27,235 17 40,178
The fall in value of the Tenge during 2015 has resulted in non-cash foreign
exchange losses within intangible assets for the year ended 31 December 2015.
This is due to the translation on consolidation of the Group's Kazakhstan
based subsidiaries whose functional currency is the Tenge as well as the
goodwill and fair value uplift adjustments to the carrying amounts of assets
and liabilities arising on the Kounrad Transaction which are denominated in
Tenge.
9. Trade and other receivables
30-Jun-16 31-Dec-15
Current receivables $'000 $'000
Trade receivables 14 -
Prepayments 645 836
VAT receivable 2,441 1,769
Other receivable 31 43
3,131 2,648
Non-current receivables
Prepayments 221 1,493
VAT receivable 1,906 2,757
2,127 4,250
In February 2016, the Kazakhstan authorities refunded a portion of outstanding
VAT totalling $1.7 million. As at 30 June 2016, a total of $3.8 million (31
December 2015: $4.4 million) of VAT receivable was still owed to the Group
relating to historical expenditure on site at Kounrad. A further $1.9 million
was refunded in August 2016 bringing the total VAT successfully refunded in
2016 to $3.6 million.
The $1.9 million refunded after the reporting date is classified within
current receivables as at 30 June 2016. The Group still remains confident
about its prospects to recover the remaining portion outstanding of $1.9
million and is working closely with its advisers and local partners to achieve
this. The planned means of recovery will be through a combination of the
local sales of copper cathode to effectively offset VAT liabilities and by a
successful appeal to the authorities.
10. Share capital and premium
Number of Shares Ordinary Shares Share Premium Treasury Shares
No $'000 $'000 $'000
At 1 January 2015 112,069,738 1,121 67,079 (9,644)
Capital reduction - - (67,079) -
Exercised options - - - 1,663
Sales of EBT shares - - - 171
At 31 December 2015 / 30 June 2016 112,069,738 1,121 - (7,810)
On 13 May 2015, the Company completed a Court approved capital reduction
scheme, which resulted in $67.1 million being transferred from the share
premium account to distributable reserves. There were no movements in share
capital and premium during the six months ended 30 June 2016.
11. Cash generated from operations
Six months ended
30-Jun-16 30-Jun-15
$'000 $'000
Profit before income tax including discontinued operations 14,884 9,966
Adjustments for:
Depreciation 1,361 4,620
Amortisation 888 1,434
Change in provision for doubtful receivables - (2)
Foreign exchange loss/(gain) 246 (1,091)
Share based payments 1,392 1,110
Write-off of inventory - 715
Finance income (39) (21)
Finance costs 71 257
Charges in working capital:
Inventories (1,079) (416)
Trade and other receivables 1,640 (3,723)
Trade and other payables (1,969) 400
Movement in provisions - 1
Cash generated from operations 17,395 13,250
12. Commitments
Significant capital expenditure contracted for at the end of the reporting
period but not recognised as liabilities is as follows:
30-Jun-16 30-Jun-15
$'000 $'000
Property, plant and equipment 309 298
Intangible assets - 108
Other 1,269 1,454
Total 1,578 1,860
13. Dividend per share
An interim dividend of 5.5 pence per ordinary share (2015: 4.5 pence per
share) was declared by the CAML Board on 12 September 2016.
14. Related party transactions
During the six month period ending 30 June 2016, the Group had no transactions
with related parties with the exception of the Company's subsidiaries.
Mr Kenges Rakishev became a major shareholder of CAML on 23 May 2014 following
completion of the Kounrad Transaction. He was appointed to the CAML Board on 9
December 2013 following the completion of the first part of the transaction.
Consequently, Kenges Rakishev is considered a related party in any dealings he
has with the Group. As part of the obligations on Kenges Rakishev for
completing the Kounrad Transaction, he signed a relationship agreement with
CAML setting out the terms of the relationship between himself and the Group.
Kenges Rakishev is the chairman of the board of directors of JSC
Kazkommertsbank ("KKB") and has full control over the voting and other rights
of a combined 71.31% stake in KKB's issued and outstanding share capital, made
up of shares in KKB held by Kenges Rakishev directly and indirectly. The
Group uses the facilities of KKB within Kazakhstan for its normal day-to-day
banking and has insurance agreements with a subsidiary of KKB. As at 30 June
2016, the Group held $5,290,000 with KKB (31 December 2015: $6,107,000).
15. Events after the reporting period
VAT recoverability
The Group's main receivable is the VAT incurred on purchases within Kazakhstan
as explained in note 9. As at 30 June 2016 a total of $3.8 million (31
December 2015: $4.4 million) of VAT receivable was still owed to the Group by
the Kazakhstan authorities. An amount of $1.9 million was refunded from the
authorities in August 2016 and has been reclassified from non-current to
current trade and other receivables as at 30 June 2016.
This information is provided by RNS
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