REG - Central Asia Metals - Proposed acquisition of Lynx Resources Limited <Origin Href="QuoteRef">CAML.L</Origin> - Part 12
22/09/2017 07:08
- Part 12: For the preceding part double click ID:nRSV5104Rk
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 (8,328,618) (928,696)
Total net finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . (1,174,763) (550,690)
Profit before income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 25,527,564 7,348,015
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 (3,836,431) (1,166,983)
PROFIT FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 21,691,133 6,181,032
OTHER COMPREHENSIVE INCOME
Exchange differences on translation of foreign operations . . . . . . . . 14 12,157,458 2,643,625
Total other comprehensive income . . . . . . . . . . . . . . . . . . . . . . .. . . . 12,157,458 2,643,625
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD . . . . . . . 33,848,591 8,824,657
Note As at 30 June 2017 As at 31 December 2016
Unaudited
ASSETS
Non-current assetsIntangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 10,438,479 9,891,105
Property, plant and equipment (PPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 186,391,802 174,591,239
Total non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 196,830,281 184,482,344
Current assets
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2,093,795 1,569,050
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 17,409,357 3,691,173
Income tax receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1,825,687
Other financial receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3,878,643 3,213,367
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14,814,973 29,294,201
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,291 120,920
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,328,059 39,714,398
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235,158,340 224,196,742
EQUITY AND LIABILITIES
Equity
Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 97,454,015 97,454,015
Other reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5,994,486 (6,162,972)
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,253,626 11,586,641
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,702,127 102,877,684
Non-current liabilities
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 57,449,924 62,571,429
Deferred revenue received advances for silver delivery . . . . . . . . . . 15 18,483,565 19,603,463
Provision for liabilities and charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,749,709 2,949,132
Total non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,683,198 85,124,024
Current liabilities
Trade payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2,331,082 3,409,396
Income tax payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,280,933 -
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 14,219,300 28,752,611
Deferred revenue received advances for silver delivery . . . . . . . . . . . 15 2,143,404 1,970,092
Provision for liabilities and charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,447 66,284
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1,739,849 1,996,651
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 21,773,015 36,195,034
TOTAL LIABILITIES AND EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . 235,158,340 224,196,742
Balance at 1 January 2016 . . . . . . . . .. . 173,454,015 808,281 (771,695) 173,490,601
Net profit for the period . . . . . . . . . . .. . - 6,181,032 - 6,181,032
Other comprehensive income . . . . . . . . . - - 2,643,625 2,643,625
Total comprehensive income . . . . . . . .. - 6,181,032 2,643,625 8,824,657
Capital reduction . . . . . . . . . . . . . . . . . . . 14 (1,000,000) - - (1,000,000)
Balance at 30 June 2016 . . . . . . . . . . .. 172,454,015 6,989,313 1,871,930 181,315,258
Balance at 1 July 2016 . . . . . . . . . . . . . . 172,454,015 6,989,313 1,871,930 181,315,258
Net profit for the period . . . . . . . . . . . . . - 4,597,328 - 4,597,328
Other comprehensive income . . . . . . . .. . - - (8,034,902) (8,034,902)
Total comprehensive income . . . . . . . .. - 4,597,328 (8,034,902) (3,437,574)
Capital reduction . . . . . . . . . . . . . . . . . . . 14 (75,000,000) - - (75,000,000)
Balance at 31 December 2016 . . . . . . .. 97,454,015 11,586,641 (6,162,972) 102,877,684
Balance at 1 January 2017 . . . . . . . . .. . 97,454,015 11,586,641 (6,162,972) 102,877,684
Net profit for the period . . . . . . . . . . . . . - 21,691,133 - 21,691,133
Other comprehensive income . . . . . . . . . - - 12,157,458 12,157,458
Total comprehensive income . . . . . . . .. - 21,691,133 12,157,458 33,848,591
Dividend . . . . . . . . . . . . . . . . . . . . .. . . . (2,024,148) - (2,024,148)
Balance at 30 June 2017 . . . . . . . . . . .. 97,454,015 31,253,626 5,994,486 134,702,127
(Unaudited)
Six months ended 30 June
Note 2017 2016
Unaudited Unaudited
OPERATING ACTIVITIES
Profit before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,527,564 7,348,015
Adjustments for:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,10 6,568,036 7,475,682
Write-off of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . 9 1,326 -
Amortization of deferred revenue received advances for silver deliver . . . . (946,586) -
Unwind of discount on provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,850 92,203
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2,280,708 178,969
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 (151) -
Unrealized foreign exchange (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . - 221,231
Cash flow generated from operations before changes in workingcapital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,522,747 15,316,100
CASH FLOW FROM OPERATING ACTIVITIES
(Increase) / decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (524,745) 369,175
(Increase) / decrease in trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . (13,718,184) (3,254,858)
(Increase) / decrease in other financial receivables . . . . . . . . . . . . . . . . . . . (677,010) (588,189)
Increase / (decrease) in trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,078,314) (490,986)
Increase / (decrease) in other financial liabilities . . . . . . . . . . . . . . . . . . . . (137,271) (249,503)
Cash flow generated from / (used in) operating activities . . . . . . . . . . . 17,387,223 11,101,739
Interest and bank charges paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,280,708) (778,450)
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (729,811) (583,375)
Net cash flow generated from / (used in) operating activities . . . . . . . . 14,376,704 9,739,914
CASH FLOW FROM INVESTING ACTIVITIES
Purchase and deposits on property, plant and equipment . . . . . . . . . . . . . . (5,361,599) (3,191,357)
Advances for property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . (1,815,520) 63,516
Interest received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 378,250
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,176,968) (2,749,591)
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of loans and borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,654,816) (5,208,175)
Dividend paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,024,148 -
Reduction of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 - (1,000,000)
Net cash flow generated from financing activities . . . . . . . . . . . . . . . . . (21,678,964) (6,208,175)
Net increase / (decrease) in cash and cash equivalents . . . . . . . . . . . . . (14,479,228) 782,148
Cash and cash equivalents at the beginning of the period . . . . . . . . . . . . . 29,294,201 7,292,004
Cash and cash equivalents at end of the period . . . . . . . . . . . . . . . . . . . 13 14,814,973 8,074,152
8,074,152
1. General information
Lynx Resources Limited ("Lynx Resources"), was incorporated on 19 June 2015 under the Companies Act 1981 of Bermuda. The
initial paid in capital amounted to $173,454,015. The registered office of Lynx Resources is located at Canon's Court, 22
Victoria Street, Hamilton HM12, Bermuda.
On 10 July 2015, Lynx Resources through its wholly owned subsidiary, Lynx Mining Limited, established Lynx Europe dooel
Skopje. As at 3 November 2015, Lynx Europe dooel Skopje acquired 100% of the shares of the zinc and lead mine Rudnik SASA
DOOEL Makedonska Kamenica (Sasa). The ultimate controlling party of the Lynx Group is Orion Fund JV Ltd., Hamilton,
Bermuda.
The primary activity of Lynx Resources Limited and its subsidiaries (collectively, the "Lynx Group") includes the
extraction of mineralized ores and the production and sale of zinc and lead concentrates.
The Management of the Lynx Group serving during the financial year is:
Chris James-Chief Executive Officer
Stefan Peschke-Chief Financial Officer
Florian Dax-Chief Operating Officer
The activity of the Lynx Group is organized through the following organizational activities:
● Mine
● Flotation
● Laboratory
● Machine workshop
● General administration
● Wholesale and trade of zinc and lead concentrates
The condensed consolidated interim financial information incorporates the results of Lynx Resources Limited and its
subsidiary undertakings as at 30 June 2017. This condensed consolidated interim financial information does not constitute
statutory accounts. The condensed consolidated interim financial information has not been audited.
2. Summary of significant accounting policies
The principal accounting policies adopted are consistent with those of the previous financial year.
2.1. Basis of preparation
The condensed consolidated interim financial information for the six months ended 30 June 2017 is prepared for the purposes
of the re-admission of Central Asia Metals to AIM. This financial information for the period ended 30 June 2017 has been
prepared in accordance with Accounting Standard IAS 34 Interim Financial Reporting. This special purpose condensed
consolidated interim financial information should be read in conjunction with the historical financial information of Lynx
Resources for the year ended 31 December 2016, which have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union ("IFRS").
The condensed consolidated interim financial information is presented in United States Dollars. The accounting policies,
methods of computation and presentation used in the preparation of the interim financial information are the same as those
used in the Lynx Group's audited financial information for the year ended 31 December 2016 except as described below:
● A number of amendments to IFRS became effective for the financial year beginning 1 January 2017 however the Lynx
Group did not have to change its accounting policies or make material retrospective adjustments as a result of adopting
these new standards.
● Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total
annual profit or loss.
The preparation of the historical consolidated financial information in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Lynx
Group's accounting policies.
In order to maintain consistency with the current year presentation, where appropriate certain items have been reclassified
for comparative purposes. Such reclassifications, however, have not resulted in significant changes of the content and
format of the financial information as presented herein.
2.2. Going concern
After review of the Lynx Group's operations, financial position and forecasts, the Directors have a reasonable expectation
that the Lynx Group has adequate resources to continue in operational existence for a period of at least twelve months.
Accordingly, the Directors continue to adopt the going concern basis in preparing the unaudited interim financial
information.
3. Financial risk management
3.1 Financial risk factors
The group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest
rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
The condensed interim financial information does not include all financial risk management information and disclosures
required in annual financial information; they should be read in conjunction with the Lynx Group's annual financial
information as at 31 December 2016. There have been no changes in the risk management department or in any risk management
policies since the year end.
3.2. Capital risk management
The Lynx Group's objectives when managing capital are to safeguard the Lynx Group's ability to continue as a going concern
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
structure to reduce the cost of capital.
There have been no changes in the capital risk management policies since the year end.
3.3. Fair value estimation
Cash and cash equivalents, trade receivables and other financial receivables mainly have short term maturity. For this
reason, their carrying amounts at the reporting date approximate their fair values.
The table below shows the categorization of financial assets and liabilities as at 30 June 2017 and 31 December 2016:
30 June 2017 Cash and other receivables Carrying amount Fair
value
Assets as per the statement of financial position
Trade and other financial receivables .............................. 21,288,000 21,288,000 21,288,000
Cash and cash equivalents .............................................. 14,814,973 14,814,973 14,814,973
36,102,973 36,102,973 36,102,973
Other financial liabilities Carrying amount Fair
value
Liabilities as per the statement of financial position
Borrowings ........................................................................... 71,669,224 71,669,224 71,669,224
Trade and other financial receivables ................................... 4,070,931 4,070,931 4,070,931
75,740,155 75,740,155 75,740,155
31 December 2016 Cash and other receivables Carrying amount Fair
value
Assets as per the statement of financial position
Trade and other financial receivables................................ 6,904,540 6,904,540 6,904,540
Cash and cash equivalents ............................................... 29,294,201 29,294,201 29,294,201
36,198,741 36,198,741 36,198,741
Liabilities as per the statement of financial position Other financial liabilities Carrying amount Fair
value
Borrowings ........................................................................... 91,324,040 91,324,040 91,324,040
Trade and other financial receivables.................................... 5,406,047 5,406,047 5,406,047
96,730,087 96,730,087 96,730,087
The fair value of borrowings has been calculated by discounting the expected future cash flows at contracted interest
rates. The fair value of loan notes and other financial assets has been calculated using market interest rates. As at 30
June 2017 and 31 December 2016, the Lynx Group measured the fair value using techniques for which all inputs which have a
significant effect on the recorded fair value are observable, either directly or indirectly (Level 2). There have been no
transfers between fair value hierarchy level as of 30 June 2017.
The different levels have been defined as follows:
● Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
● Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
● Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
(Level 3).
4. Gross Revenue
30 June 2017 30 June 2016
Revenue on domestic market-lead and zinc concentrate................................. 54,084,815 35,644,648
Revenue on foreign market-lead and zinc concentrate.................................... 18,468 10,060
Revenue of silver...................................................................................................... 2,054,166 -
56,157,449 35,654,708
5. Operating segment
Sales of lead and zinc concentrate and sales of silver are sold to customers in Europe.
Lynx Resources has one operating segment, Lynx Mining Resources. This reflects the way in which the company's management
reviews its business performance, and is consistent with how the executive management, who act as the chief operating
decision-makers, allocate resources and assess performance of Sasa.
6. Consumed raw materials
30 June 2017 30 June 2016
Consumed materials................................................................................................. 2,309,766 2,554,732
Consumed spare parts and tools........................................................................... 2,286,133 2,065,667
Consumed electricity............................................................................................... 1,020,762 1,179,862
Consumed petrol...................................................................................................... 446,461 422,373
6,063,122 6,222,634
7. Finance income and costs
30 June 2017 30 June 2016
Foreign exchange gain............................................................................................. 7,153,704 378,006
Interest income......................................................................................................... 151 -
Finance income........................................................................................................ 7,153,855 378,006
Foreign exchange loss............................................................................................. (5,956,060) (657,524)
Interest expense........................................................................................................ (2,280,708) (178,969)
Other finance expense............................................................................................. (91,850) (92,203)
Finance costs............................................................................................................ (8,328,618) (928,696)
Net finance income/(costs)..................................................................................... (1,174,763) (550,690)
8. Income tax expense
According to the provisions of the Macedonian tax law the tax base is the profit generated during the fiscal year increased
for non-deductible expenses and reduced for deductible revenue (i.e. dividends already taxed at the payer), with income tax
at rate of 10%. In line with this Law, Income tax for the period was calculated and recorded in the consolidated statement
of comprehensive income.
The increase in income tax expense is mainly due to an increase in profit before tax, net of profit not subject to tax for
group operations in Bermuda, and non-deductible expenses. The increase in deferred tax assets for the period ending 30 June
2017 was $10,371.
9. Property, plant and equipment
Year ended 31 December 2016
Opening balance . . . . . . . . . . .. . 598,428 25,830,067 20,533,874 134,728,099 6,764,678 188,455,146
Additions . . . . . . . . . . . . . . . . . 206 2,391,165 - - 8,229,753 10,621,124
Transfer from construction in progress. . . . . . . . . . . . . . . . . . . . - 1,434,788 2,537,761 - (3,972,549) -
Write-off. . . . . . . . . . . . . . . . . . . - (1,909,846) - - - (1,909,846)
Disposals. . . . . . . . . . . . . . . . . . . - - (222) - - (222)
Depreciation charge. . . . . . . . . . . - (1,722,096) (5,093,588) (7,177,958) - (13,993,642)
Exchange differences. . . . . . . . . (18,530) (1,000,988) (392,220) (6,960,117) (209,466) (8,581,321)
Closing net book amount . . . . . 580,104 25,023,090 17,585,605 120,590,024 10,812,416 174,591,239
At 31 December 2016
Cost . . . . . . . . . . . . . . . . . . . . . . 580,104 26,745,186 22,679,193 127,767,982 10,812,416 188,584,881
Accumulated depreciation - (1,722,096) (5,093,588) (7,177,958) (13,993,642)
Net book amount 580,104 25,023,090 17,585,605 120,590,024 10,812,416 174,591,239
Period ended 30 June 2017
Opening balance . . . . . . . . . . . . 580,104 25,023,090 17,585,605 120,590,024 10,812,416 174,591,239
Additions . . . . . . . . . . . . . . . . . . - (127,202) 300,915 - 4,116,209 4,289,922
Transfer from construction in progress. . . . . . . . . . . . . . . . . . . . - 8,179,189 2,264,085 - (10,443,274) -
Write-off. . . . . . . . . . . . . . . . . . . - (1,326) - - - (1,326)
Depreciation charge. . . . . . . . . . . - (816,742) (1,993,241) (3,473,169) - (6,283,152)
Exchange differences. . . . . . . . . 49,752 856,267 158,205 11,803,589 927,306 13,795,119
Closing net book amount . . . .. 629,856 33,113,276 18,315,569 128,920,444 5,412,657 186,391,802
At 31 December 2016
Cost . . . . . . . . . . . . . . . . . . . . . . 629,856 35,652,114 25,402,398 139,571,571 5,412,657 206,668,596
Accumulated depreciation. . . . . . - (2,538,838) (7,086,829) (10,651,127) - (20,276,791)
Net book amount 629,856 33,113,276 18,315,569 128,920,444 5,412,657 186,391,802
5,412,657
186,391,802
The Lynx Group has pledged building and equipment with an estimated value of $9,086,293 as of 30 June 2017 (June 30, 2016:
$ 12,021,145) as a security for the borrowings (See Note 17).
10. Intangible assets
Year ended 31 December 2016 Total
Opening balance....................................................................................................................................................................... 10,779,153
Amortization expense.............................................................................................................................................................. (582,115)
Exchange differences................................................................................................................................................................ (305,933)
Closing net book amount..................................................................................................................................................... 9,891,105
At 31 December 2016
Cost............................................................................................................................................................................................... 10,570,268
Accumulated amortization...................................................................................................................................................... (679,163))
Exchange differences................................................................................................................................................................ (305,933)
Net book amount..................................................................................................................................................................... 9,891,105
Period ended 30 June 2017
Opening balance....................................................................................................................................................................... 9,891,105
Depreciation charge................................................................................................................................................................. (284,884)
Exchange differences................................................................................................................................................................ 832,258
Closing net book amount..................................................................................................................................................... 10,438,479
At 30 June 2017
Cost............................................................................................................................................................................................... 11,402,526
Accumulated amortization...................................................................................................................................................... (964,047)
Net book amount..................................................................................................................................................................... 10,438,479
11. Inventories
30 June 2017 31 December 2016
Raw materials............................................................................................................................................................................. 338,279 335,185
Finished goods.......................................................................................................................................................................... 61,011 284,262
Spare parts and other materials.............................................................................................................................................. 1,694,505 949,603
2,093,795 1,569,050
Finished goods represents lead and zinc concentrate.
12. Trade and other financial receivables
Carrying amount of trade receivables is presented as follows:
30 June 2017 31 December 2016
Trade receivables domestic..................................................................................................................................................... 17,409,357 3,690,147
Trade receivables foreign........................................................................................................................................................ - 1,026
Trade receivables - gross...................................................................................................................................................... 17,409,357 3,691,173
Provision for impairment of trade receivables................................................................................................................... - -
17,409,357 3,691,173
Carrying amount of trade and other financial receivables is presented as follows:
30 June 2017 31 December 2016
Trade receivables domestic (Note 18)................................................................................................................................. 17,409,357 3,690,147
Foreign receivables from related parties............................................................................................................................. - 1,026
Trade receivables - net........................................................................................................................................................... 17,409,357 3,691,173
Advanced payments................................................................................................................................................................. 1,884,399 2,218,322
VAT receivables........................................................................................................................................................................ 1,116,061 959,713
Other short-term receivables.................................................................................................................................................. 878,183 587,126
Less: provision for advances................................................................................................................................................. - (551,794)
Other financial receivables.................................................................................................................................................. 3,878,643 3,213,367
21,288,000 6,904,540
Movements on the provision for impairment of trade receivables are as follows:
30 June 2017 31 December 2016
Opening balance at 1 January................................................................................................................................................ - 6,810
Write-off previously impaired receivables......................................................................................................................... - (6,810)
- 3,691,173
Movement in allowance for impairment for other receivables is as follows:
30 June 2017 31 December 2016
Other receivables
Opening balance at 1 January................................................................................................................................................ - -
Write-off previously impaired receivables......................................................................................................................... - 551,794
- 551,794
According the Lynx Group's policies the following factors are taken into consideration when assessing the impairment of
receivables: receivables above 90 days or more, frequent late payments, high risk customers and customer with financial
difficulties.
The fair value of the trade receivables and the other financial receivables at the balance sheet date is the same as their
carrying value.
During 2016, the Lynx Group wrote off other receivables amounting to $551,794 as these amounts are not expected to be
recoverable.
13. Cash and cash equivalents
30 June 2017 31 December 2016
Bank deposits............................................................................................................................................................................ - 14,625,335
Bank accounts in domestic currency................................................................................................................................... 12,043,270 13,054,776
Bank accounts in foreign currency....................................................................................................................................... 2,771,703 1,614,090
14,814,973 29,294,201
Bank deposit in amount of $14,625,335 as of 31 December 2016 represents time deposit in Ohridska Banka AD Skopje with
validity of 13 days calculated from the date of the loan payment with no interest and was used as collateral for obtaining
short-term borrowing. Due to the economic substance of the restriction and the availability of the cash funds after the
maturity, the Lynx Group classified the bank deposits as cash and cash equivalent as at 30 June 2017, 30 June 2016 and 31
December 2016.
The carrying amounts of the cash and cash equivalents are denominated in the following currencies:
30 June 2017 31 December 2016
MKD............................................................................................................................................................................................. 280,915 14,801,010
EUR.............................................................................................................................................................................................. 2,659,415 15,290
USD.............................................................................................................................................................................................. 11,874,643 14,477,901
14,814,973 29,294,201
14. Capital and reserves
Capital
Paid-in capital
At 31 December 2016 and 2015, the Lynx Group has paid-in capital, which amounts to $97,454,015 and $173,454,015.
In February 2016, Lynx Resources bought back a $1,000,000 preference share from one of the shareholders. In October 2016,
Lynx Resources distributed a $75,000,000 dividend to its shareholders by way of capital reduction.
Other reserves-Foreign currency translation
Exchange differences arising on translation of the foreign controlled entity are recognized in other comprehensive income
and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net
investment is disposed of.
The following table shows a breakdown of the balance sheet line item 'other reserves' and the movements in these reserves
during the year:
Other reserves
At 1 January 2016.................................................................................................................................................................................................................. (771,695)
Exchange differences on foreign currency translation:
Other....................................................................................................................................................................................................................................... (114,257)
Sales........................................................................................................................................................................................................................................ 743,876
Intercompany loans............................................................................................................................................................................................................ 2,014,006
At 30 June 2016..................................................................................................................................................................................................................... 2,643,625
At 1 January 2016.................................................................................................................................................................................................................. (6,162,972)
Exchange differences on foreign currency translation:
Other....................................................................................................................................................................................................................................... 1,307,187
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