REG - Central Asia Metals - Half Yearly Report <Origin Href="QuoteRef">CAML.L</Origin> - Part 2
14/09/2015 07:00
- Part 2: For the preceding part double click ID:nRSN8882Ya
Disposals - (13) (65) (78)
Exchange differences - (236) (15) (251)
At 30 June 2015 - 20,388 763 21,151
Net book value at 31 December 2014 7,683 65,990 988 74,661
Net book value at 30 June 2015 2,836 71,016 1,209 75,061
The change in estimate in relation to the asset retirement obligation of
$778,000 is as a result of adjusting the provision recognised at the net
present value of future expected costs using an inflation rate of 4.3% (H1
2014: 6.6%) and discount rate of 8.07% (H1 2014: 8.65%) representing the risk
free rate (pre-tax) for Kazakhstan.
8. Intangible assets
Goodwill Deferred exploration and evaluation costs Mininglicences and permits Computer software Total
Group $'000 $'000 $'000 $'000 $'000
Cost
At 1 January 2014 9,278 1,941 5,535 47 16,801
Additions - 98 - 17 115
Addition Goodwill 11,013 - - - 11,013
Disposals - (92) - (11) (103)
Derecognition of previously held interests - (1,649) (1,947) (16) (3,612)
Acquisition of Subsidiary 100% - 2,748 57,261 27 60,036
Exchange differences - (241) (450) (9) (700)
At 31 December 2014 20,291 2,805 60,399 55 83,550
Additions - 150 - 9 159
Acquisition of Copper Bay (see below) - (1,581) - - (1,581)
Exchange differences - (58) (414) (2) (474)
At 30 June 2015 20,291 1,316 59,985 62 81,654
Accumulated amortisation
At 1 January 2014 - 51 29 28 108
Provided during the year - 65 1,857 14 1,936
Derecognition of previously held interests - (92) - (11) (103)
Acquisition of Subsidiary 100% - (42) (22) (9) (73)
Disposal - 70 37 15 122
Exchange differences - 12 (51) (6) (45)
At 31 December 2014 - 64 1,850 31 1,945
Provided during the year - 14 1,414 6 1,434
Exchange differences - 1 (14) (2) (15)
At 30 June 2015 - 79 3,250 35 3,364
Net book value at 31 December 2014 20,291 2,741 58,549 24 81,605
Net book value at 30 June 2015 20,291 1,237 56,735 27 78,290
Copper Bay investment
On 30 June 2015, CAML subscribed for 135,621,610 newly allotted ordinary
shares in Copper Bay Limited for cash consideration of $3.0 million, which
increased CAML's shareholding from 50% to 75%.
Following this additional investment, management has reconsidered the
accounting treatment of the initial $3.2 million investment in 2013 and have
fully consolidated the Copper Bay Group as at 30 June 2015 at historical cost.
An intangible asset of $3.2 million recognised in 2013 equal to the cash
consideration paid for the initial 50% shareholding has been reduced by $1.6
million. The resulting value of the intangible exploration and evaluation
assets currently held in the Copper Bay Group as at 30 June 2015 was $1.6
million.
9. Trade and other receivables
30-Jun-15 31-Dec-14
$'000 $'000
Trade receivables 13,046 6,953
Less: provision for impairment of trade receivables (39) (41)
Trade receivables, net 13,007 6,912
Prepayments 1,163 2,695
14,170 9,607
Less: non-current portion:
Trade and other receivables (7,100) (6,393)
Current Portion 7,070 3,214
As at 30 June 2015, current trade and other receivables were $7.1 million (31
December 2014: $3.2 million). The increase is a result of $4.5 million owed
for the sale of copper for June deliveries. These funds were received in
early August 2015.
The carrying value of all the above receivables is a reasonable approximation
of fair value.
10. Share capital and premium
Number of Shares Ordinary Shares Share Premium Treasury Shares Total
No $'000 $'000 $'000 $'000
At 1 January 2014 86,165,934 862 - (4,100) (3,238)
Ordinary shares issue 21,211,751 212 56,041 - 56,253
Issue of EBT shares 3,500,000 35 9,110 (9,145) -
Exercised warrants 1,192,053 12 1,928 - 1,940
Exercised options - - - 3,399 3,399
Sales of EBT shares - - - 202 202
At 31 December 2014 112,069,738 1,121 67,079 (9,644) 58,556
Capital reduction - - (67,079) - (67,079)
Exercised options - - - 1,327 1,327
Sales of EBT shares - - - 171 171
At 30 June 2015 112,069,738 1,121 - (8,146) (7,025)
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. A condition of the capital
reduction scheme was to set aside an amount into a restricted bank account,
which would cover certain creditors as of the effective date of the capital
reduction (13 May 2015). The balance of the restricted bank account in
relation to the capital reduction scheme as at 30 June 2015 was $0.4 million.
11. Cash generated from operations
Six months ended
30-Jun-15 30-Jun-14
$'000 $'000
Profit before income tax including discontinued operations 9,966 52,176
Adjustments for:
Depreciation 4,620 4,485
Amortisation 1,434 467
Change in provision for doubtful receivables (2) -
Foreign exchange gain (1,091) (2,495)
Gain on re-measuring to fair value the existing interest on acquisition of control - (33,039)
Share based payments 1,110 799
Write-off of inventory 715 -
Finance income (21) (44)
Finance costs 257 128
Charges in working capital:
Inventories (416) 437
Trade and other receivables (3,723) (13,453)
Trade and other payables 400 (725)
Movement in provisions 1 (116)
Cash generated from operations 13,250 8,620
12. Commitments
30-Jun-15 30-Jun-14
$'000 $'000
Kazakhstan 1,166 2,398
UK 655 1,116
Mongolia 39 42
Total 1,860 3,556
30-Jun-15 30-Jun-14
$'000 $'000
Property, plant and equipment 298 1,253
Intangible assets 108 314
Other 1,454 1,989
Total 1,860 3,556
At 30 June 2015 the amounts contracted for but not provided for in the
financial information amounted to $1.9 million for the Group (31 December
2014: $3.6 million).
13. Dividend per share
An interim dividend of 4.5 pence per ordinary share (2014: 5 pence per share)
was declared by the CAML Board on 11 September 2015.
14. Related party transactions
During the six month period ending 30 June 2015, the Group had no transactions
with related parties with the exception of the Company's subsidiaries.
Mr Kenges Rakishev ("KR") 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, KR is considered a related party in any dealings
he has with the Group.
KR owns 28.67% and is a Director of JSC Kazkommertsbank ("KKB"). 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 part of the obligations on KR for completing the Kounrad Transaction, he
signed a relationship agreement with CAML setting out the terms of the
relationship between KR and the Group.
15. Events after the reporting period
KKB and KR
On 7 August 2015, KKB announced that KR had reached a preliminary agreement
with the Alnair private equity group to combine their respective shareholdings
in KKB, subject to satisfaction of regulatory and other customary conditions.
As a result of the proposed transaction, KR would acquire legal ownership over
the parent entity of JSC Alnair Capital Holding, which currently holds a
28.08% stake in KKB's issued and outstanding share capital.
In connection with the proposed transaction, KR would become the General
Partner of the Alnair private equity group and, as such, would effectively
acquire control over voting and other rights of Alnair's shareholding in KKB.
Upon completion, this transaction will effectively give KR full control over
the voting and other rights of a combined 56.75% stake in KKB's issued and
outstanding share capital, made up of shares in KKB held by KR directly and
indirectly, through Alnair.
Kazakhstan Tenge currency devaluation
During August 2015, the Kazakhstan government transitioned to a free floating
exchange rate of the KZT allowing the market to set the price.
As a result, on 21 August the exchange rate of the KZT depreciated to 255 KZT
for 1 US dollar, approximately 37% compared to the rate used for 30 June 2015
accounting purposes of 186.
Whilst no adjustment to the accounts has been made to reflect this
devaluation, it is worth noting that it will impact the results and net asset
position in future reporting periods. For example, a 30% devaluation impact
on the net assets of $73.5 million denominated in KZT as at 30 June 2015 is a
reduction of $22.0 million.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Central Asia Metals
See all newsREG - Central Asia Metals - Annual Report and Accounts 2023 and Notice of AGM
AnnouncementREG - Central Asia Metals - Grant of Long-Term Share Awards
AnnouncementREG - Central Asia Metals - Q1 2024 Operations Update
AnnouncementREG - Central Asia Metals - Investment in Aberdeen Minerals Ltd
AnnouncementREG - Central Asia Metals - 2023 Full Year Results
Announcement