REG - Central Asia Metals - Interim Results <Origin Href="QuoteRef">CAML.L</Origin> - Part 2
22/09/2017 07:07
- Part 2: For the preceding part double click ID:nRSV5043Ra
15,136 10,599
Weighted average number of Ordinary Shares in issue 111,558,091 111,558,091
Earnings/(loss) per share from continuing and discontinued operations attributable to owners of the parent during the period (expressed in $ cents per share) $ cents $ cents
From continuing operations 13.50 9.57
From discontinued operations 0.07 (0.07)
From profit for the period 13.57 9.50
The diluted earnings/(loss) per share is calculated by adjusting the weighted
average number of Ordinary Shares outstanding after assuming the conversion of
all outstanding granted share options.
(b) Diluted
Six months ended
30-Jun-17 30-Jun-16
$'000 $'000
Profit from continuing operations attributable to owners of the parent 15,056 10,676
Profit/(loss) from discontinued operations attributable to owners of the parent 80 (77)
Total 15,136 10,599
Weighted average number of ordinary shares in issue 111,558,091 111,558,091
Adjusted for: - Share Options 3,033,290 2,643,025
Weighted average number of ordinary shares for diluted earnings per share 114,591,381 114,201,116
Diluted earnings per share $ cents $ cents
From continuing operations 13.14 9.35
From discontinued operations 0.07 (0.07)
From profit for the period 13.21 9.28
8. 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 2016 2,003 49,408 1,601 1,301 54,313
Additions 11,572 557 - 202 12,331
Disposals - (246) - (3) (249)
Change in estimate - asset retirement obligation - (22) - - (22)
Transfers (10,443) 10,427 - 16 -
Exchange differences 67 985 30 26 1,108
At 31 December 2016 3,199 61,109 1,631 1,542 67,481
Additions 1,030 22 - 125 1,177
Disposals - (104) - (21) (125)
Change in estimate - asset retirement obligation - (230) - - (230)
Transfers (2,331) 2,310 - 21 -
Exchange differences 137 1,812 60 50 2,059
At 30 June 2017 2,035 64,919 1,691 1,717 70,362
Accumulated depreciation
At 1 January 2016 - 12,953 62 498 13,513
Provided during the year - 3,445 38 155 3,638
Disposals - (246) - (3) (249)
Exchange differences - 213 - 42 255
At 31 December 2016 - 16,365 100 692 17,157
Provided during the period - 2,476 20 90 2,586
Disposals - (102) - (18) (120)
Exchange differences - 356 4 18 378
At 30 June 2017 - 19,095 124 782 20,001
Net book value at 31 December 2016 3,199 44,744 1,531 850 50,324
Net book value at 30 June 2017 2,035 45,824 1,567 935 50,361
The reduction in estimate in relation to the asset retirement obligation of
$230,000 (2016: $22,000) is due to a combination of adjusting the provision
recognised at the net present value of future expected costs using an
inflation rate of 5.56% (2016: 6.02%) and discount rate of 8.07% (2016: 8.07%)
representing the risk-free rate (pre-tax) for Kazakhstan as well as updating
the provision for management's best estimate of the costs that will be
incurred based on current contractual and regulatory requirements and the
estimated useful life of mine to 2034.
9. Intangible assets
Goodwill Exploration and evaluation costs Mining licences and permits Computer software Total
Group $'000 $'000 $'000 $'000 $'000
Cost
At 1 January 2016 10,106 2,039 30,631 38 42,814
Additions - 1,561 14 19 1,594
Exchange differences 187 - 306 1 494
At 31 December 2016 10,293 3,600 30,951 58 44,902
Additions - 438 - 9 447
Exchange differences 379 - 1,083 - 1,462
At 30 June 2017 10,672 4,038 32,034 67 46,811
Accumulated amortisation
At 1 January 2016 - - 2,524 23 2,547
Provided during the year - - 1,554 9 1,563
Exchange differences - 30 3 33
At 31 December 2016 - - 4,108 35 4,143
Provided during the period - - 823 2 825
Exchange differences - - 82 - 82
At 30 June 2017 - - 5,013 37 5,050
Net book value at 31 December 2016 10,293 3,600 26,843 23 40,759
Net book value at 30 June 2017 10,672 4,038 27,021 30 41,761
Copper Bay project
The Group has reviewed the indicators for impairment under IFRS 6 Exploration
and Evaluation of Mineral Resources and has not identified any indicators of
impairment.
10. Inventories
30-Jun-17 $'000 31 Dec 16 $'000
Raw materials 3,781 2,962
Finished goods 625 357
4,406 3,319
11. Trade and other receivables
30-Jun-17 31-Dec-16
Current receivables $'000 $'000
Trade receivables 22 -
Prepayments 443 347
VAT receivable 357 548
Other receivable 153 24
975 919
Non-current receivables
Prepayments 73 368
VAT receivable 2,580 2,370
2,653 2,738
As at 30 June 2017, the total Group VAT receivable was $2,937,000 (31 December
2016: $2,918,000) which included an amount of $2,725,000 (31 December 2016:
$2,838,000) of VAT owed to the Group by the Kazakhstan authorities. During the
six month period ended 30 June 2017, the authorities refunded $545,000 and a
further amount of $145,000 was refunded from the authorities in July 2017 and
has been classified as current trade and other receivables as at 30 June 2017.
The Group is working closely with its advisors to recover the remaining VAT, a
portion of which will be recovered through local sales of copper cathode to
effectively offset VAT liabilities.
12. Deferred income tax liability
The movements in the Group's deferred tax assets and liabilities which are
expected to be recovered or settled more than 12 months after the reporting
period are as follows:
At 1January 2017 $'000 Currency translation differences$'000 Credit to income statement$'000 At 30 June 2017 $'000
Other timing differences (82) - - (82)
Deferred tax liability on fair value adjustment on Kounrad Transaction (8,459) (317) 197 (8,579)
Deferred tax liability, net (8,541) (317) 197 (8,661)
A taxable temporary difference arose as a result of the Kounrad Transaction,
where the carrying amount of the assets acquired were increased to fair value
at the date of acquisition but the tax base remained at cost. The deferred
tax liability arising from this taxable temporary difference has been reduced
by $197,000 to reflect the tax consequences of depreciating and amortising the
recognised fair values of the assets during the period.
At 1 January 2016 $'000 Currency translation differences $'000 Credit to income statement $'000 At 30 June 2016 $'000
Other timing differences (134) (18) - (152)
Deferred tax liability on fair value adjustment on Kounrad Transaction (10,106) - - (10,106)
Deferred tax liability, net (10,240) (18) - (10,258)
Where the realisation of deferred tax assets is dependent on future profits,
the Group recognises losses carried forward and other deferred tax assets only
to the extent that the realisation of the related tax benefit through future
taxable profits is probable.
13. Cash generated from operations
Six months ended
30-Jun-17 30-Jun-16
$'000 $'000
Profit before income tax including discontinued operations 20,498 14,884
Adjustments for:
Depreciation 2,511 1,361
Amortisation 825 888
Gain on disposal of property, plant and equipment (71) -
Foreign exchange loss 373 246
Share based payments 1,235 1,392
Finance income (80) (39)
Finance costs 92 71
Charges in working capital:
Inventories (1,085) (1,079)
Trade and other receivables 41 1,640
Trade and other payables (1,217) (1,969)
Cash generated from operations 23,122 17,395
14. Commitments
Significant capital expenditure contracted for at the end of the reporting
period but not recognised as liabilities is as follows:
30-Jun-17 30-Jun-16
$'000 $'000
Property, plant and equipment - 309
Other 283 1,269
Total 283 1,578
The reduction in commitments from the prior period is due to the completion of
the Kounrad Stage 2 Expansion.
15. Dividend per share
An interim dividend of 6.5 pence per ordinary share (2016: 5.5 pence per
share) was declared by the CAML Board on 22 September 2017.
16. Related party transactions
During the six month period ended 30 June 2017, 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.
In June 2017, Kenges Rakishev sold his 86.09% interest in JSC Kazkommertsbank
("KKB") to JSC Halyk Bank and resigned as Chairman of KKB in July 2017. The
Group uses the facilities of KKB and JSC Halyk Bank within Kazakhstan for its
normal day-to-day banking.
Kenges Rakishev is a Director of JSC Insurance Company. The Group incurs
insurance premiums with JSC Insurance Company and has made an insurance claim
under which a syndicate of insurers, including JSC Insurance Company, have a
potential liability.
During the period, the Group paid consultancy fees of $37,500 to Nurlan
Zhakupov, a Non-Executive Director of the company, under a consultancy
agreement in terms of which Mr Zhakupov provides services over and above his
normal duties.
17. Events after the reporting period
Kazakhstan VAT recoverability
As at 30 June 2017 a total of $2,725,000 (31 December 2016: $2,838,000) of VAT
receivable was still owed to the Group by the Kazakhstan authorities. A
portion of this amount totalling $145,000 was refunded from the authorities in
July 2017 and has been classified as current trade and other receivables as at
30 June 2017.
Shuak project
During August 2017, CAML became the registered owner of the Shuak sub soil
user contract.
Copper Bay project
Given that CAML does not intend to develop the Copper Bay project in current
market conditions, in August 2017, the CAML Board made the decision to dispose
of its holding in that company and will commence the sales process during Q4
2017.
Project Lion
Acquisition of Lynx Resources, a Macedonian zinc and lead producer, and
associated equity issue, announced separately today.
This information is provided by RNS
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