TIDMALTN
ALTYNGOLD PLC
Chief Executive Review
AltynGold Plc ("AltynGold" or the "Company"), the gold mining
and development company, announces its unaudited results for the
six months to 30 June 2021.
The financing raised in 2020 has been utilised to buy new
underground mining equipment and improve the infrastructure at the
mine. The resultant increase in production and improving grade as
the orebody is being mined more efficiently is now translating into
increased turnover and profitability for the Group. With the gold
price at its current levels of around US$1,800oz, the Group has
improved its turnover from the prior period June 2020 by more than
100%.
Highlights:
Mine development
-- Transport decline No.1 was developed by 150 linear metres, on ore bodies
3-8 at 148masl, transport decline 2 by 144 linear metres, opening up
reserves of 770,000 tons for extraction.
-- Development of the shaft and tunneling amounted to 3,131 linear metres,
(H12020:2,345 linear metres).
-- Blast hole drilling amounted to 60,161 linear metres, (H1 2020: 22,500
linear metres).
-- Ore was mined in the period principally from ore bodies 3-8 at 150 and
the level of 178masl, and ore body 11 at the levels 131-174masl.
-- Exploration drilling at Sekisovskoye amounted to 8,200 linear metres.
-- Extensive maintenance and improvement works were carried out to maintain
production safely and efficiently.
-- Exploration work at Teren-Sai continued -- 9,330 linear metres of
exploratory drilling in Area No. 1, 3,860 core samples extracted in Area
No.2.
Production
-- Ore extracted in the period was 266,607t (H1 2020: 235,724t).
-- The milled ore was 262,744t (H1 2020: 186,966t), in the current period,
an increase of 41%.
-- Average processed gold grade in the period was 1.88g/t (H1 2020:
1.53g/t).
-- Gold recovery averaged 82.18% during the 6 month period (H1 2020:
79.79%).
-- H1 2021 gold production from Sekisovskoye was 13,066oz, compared with H1
2020 of 6,990oz.
Financial
-- The turnover has increased to US$23m (H1 2020: US$11.5m). The gold price
achieved averaged US$1,832oz during the period (H1 2020 US$1,693oz).
-- The Company made a gross profit of US$14.0m (H1 2020: gross profit of
US$3.9m), with a net profit before taxation of US$9.3m (H1 2020: loss of
US$1.2m).
-- The total cash cost of production was US$766oz (H1 2020: US$963oz).
-- Adjusted EBITDA achieved was positive at US$13.4m (H1: 2020: US$5.0m).
-- Borrowings were reduced by US$2.4m in the period. Cash balances at 30
June 2021 were US$3.5m (H1 2020: US$7.2m).
Aidar Assaubayev, CEO of AltynGold plc commented:
"The Board are pleased with the progress being made with
turnover increasing by more than 100% to US$23m and operating
profit moving up to US$11.2m from US$0.6m. The capital expenditure
has boosted production and revenues and the full year results look
promising. Progress at Teren-Sai is continuing, and the Company is
in the process of compiling the documentation to renew the licence
and to move Area No.2 into the next phase to calculate the
reserves."
For further information please contact:
AltynGold plc
For further information please contact:
Rajinder Basra, CFO +44 (0) 203 432 3198
Information on the Company
AltynGold 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 AltynGold plc please visit our website
www.altyngold.uk
H1 2021 Review
Mine development
Sekisovskoye
The input of significant capital equipment additions in 2020 and
H1 2021 has enabled the Company to progress mining operations in
all areas of mining operations. A significant acquisition in this
regard was the purchase of the self-propelled tunnelling
equipment.
The principal development milestones achieved in the period
were:
-- Tunnelling and shaft sinking of 3,131 linear metres, in the similar
period last year it was 2,345 metres.
-- Blast hole drilling of 60,161 linear metres (H1 2020: 22,500 metres).
-- Exploration drilling was carried out and amounted to 8,200 linear metres
-- Backfilling of voids was carried out in the period amounting to a volume
of 38,177m.
During this period the Company has been concentrating on
developing ore bodies 3-8 at horizons 150m-178m and ore body 11 at
horizons 134m-174m. The transport decline No.2 was extended by 144
linear metres allowing the access of 640,000 tons of ore. Similarly
transport decline No. 1 was extended by 150 linear metres opening
up accessible reserves of 130,000 tons.
In order to continue to mine efficiently and safely the
following capital/maintenance was carried out:
-- A forced air facility was commissioned and built at elevation 355masl,
this necessitated the installation of 17km of overhead 6Kv lines. The
Korfmann ventilation equipment will allow safe and stable operations for
a period up to 2029 in accordance with the mine operational plans.
-- Various works were carried out to enable the efficient and safe working
of the stoping, this included introducing a new system of stoping and
obtaining an Ulba-150 charging unit to improve the quality of ore
crushing.
-- The mine operational procedures are constantly being updated to conform
to current safe working practices, during the period an electronic
accounting and explosive digitised log was introduced.
In summary the Company has been operating in line with its
budgeted mining plan, the operations at the mine have complied with
all current government guidelines in relation to COVID-19. There
has been minimal disruption to the production at the mine and the
procedures and operations employed by the Company have ensured that
the employees have been working in a safe environment.
Teren-Sai
In the current six month period the Company has been
concentrating its efforts on the exploration of two particular
areas within the 198km area of the prospective site.
In relation to Area No.1, 233 exploratory pneumatic wells were
drilled, resulting in 9,330 linear metres of drilling. From this
4,665 core samples were extracted. The area is currently being
mapped to outline the morphology of the ore body and calculate the
reserves at this site. The work is ongoing, but good progress was
made in the period.
With regards to Area no. 2 this is the most advanced project in
the Teren-Sai block, with extensive drilling being undertaken in
prior periods. The exploration program in this area is now complete
with 15 core wells and 3,860 linear metres being drilled in the
period, and 3,860 core samples being extracted. The reserves
estimate is currently being calculated in accordance with the State
Reserves Committee of Kazakhstan, once completed the analysis will
be forwarded to the appropriate government department. This will
enable the Company to start to move to the next phase of operations
and plan for production from Area No. 2.
H1 2021 Operational Overview -- Sekisovskoye
Underground mine H1 2021 H1 2020
Ore extracted tons 266,607 235,724
Gold grade g/t 1.85 1.49
Silver grade g/t 1.80 1.10
Mineral processing H1 2021 H1 2020
Milling tons 262,774 186,966
Gold grade g/t 1.88 1.53
Silver grade g/t 1.83 1.05
Gold recovery % 82.18% 79.79%
Silver recovery % 73.19% 72.88%
Gold produced ounces 13,066 6,990
Silver produced ounces 11,315 4,555
During the period there was a significant amount of planned
repair and restoration work carried out at the processing plant. To
the extent it related to an upgrade/major overhaul the costs were
capitalised, these works were in addition to normal planned repairs
absorbed into the costs for the period. The work included the
replacement of essential components in one of the grinding mills,
as well as significant upgrades to the electrolysis section of the
plant. The management see the upgrades and renewal of equipment as
key to moving production up to the next level.
An advance payment was made in July 2021 for the following
equipment which is due to be delivered for installation in Q3 2021,
regeneration heater, KMD fine crusher, shaker screens for the
crushing and grading complex. It is anticipated the improvements
will lead to uninterrupted and more efficient production in future
periods.
The ore milled in the period saw an increase from the prior
period of 41%, and further increases are expected as the upgrades
and maintenance programs progress. Significantly the grade achieved
of 1.88g/t is higher than the grade that was budgeted at 1.81g/t.
The effect of the new equipment reducing the dilution is having the
desired effect in increasing the grade, the grade is budgeted to
increase as the mine moves down to the lower levels.
The upgrades are also feeding into the increased recovery rates
which have moved up from 79.8% to 82%, the Company expects to
maintain recovery at these enhanced levels.
There has been a significant increase in production and sales of
gold dore, increasing from 6,990oz in June 2020 to in excess of
13,000oz in June 2021, for the full year to 31 December 2020 the
total gold poured was 17,000oz. The Company is pleased with the
progress that has been made.
H1 2021 Financial Review
The Company has reported a gross profit of US$14.0m for H1 2021,
against US$3.9m for H1 2020, with turnover of US$23m (H1 2020
US$11.5m).
The Company has seen a significant increase in its margin as
revenue grows with increasing production from higher grade ore and
a higher average gold price achieved of US$1,832 (H1 2020
US$1,693).
Sekisovskoye produced 13,066oz of gold in H1 2021 (H1 2020:
6,990oz). Gold sold during the period amounted to 12,560oz (H1
2020: 6,790oz).
The operating cash cost of production (cost of sales excluding
depreciation and provisions) for the period was US$546/oz (H1 2020
US$828/oz). The total cash cost was US$766/oz as compared to
US$963/oz in H1 2020. The directors monitor the cash cost closely
and see it as a key indicator of the cost being incurred to extract
the gold.
In terms of other costs there has been a significant increase in
administrative costs these relate to three principal factors. An
increase in travel expenses compared to the prior period. In the
period to June 2020 there was restricted travel due to COVID-19. An
increase in administrative salaries, a number of additional staff
at higher skill levels and remuneration were employed by the
Company. The third factor related to the use of specialist
consultants and advisors that were utilised on special projects and
for the provision of strategic advice to the Company. In total
these accounted for US$1.3m of the total increase of US$1.9m.
In terms of finance costs there is a significant increase in the
period from 2020 of US$0.9m to US$1.7m. The principal factor was
due to a full period charges on the loans drawn down from Bank
Center Credit and the balance of the Bond that was raised on the
Kazakh Stock exchange which amounted to US$6.5m and was drawn down
in June 2020.
The financial statements for June 2020 have been adjusted for
the fair value of the share options granted on 30 June 2020 to
Freedom Finance who were instrumental in raising the bonds on the
Kazakh stock exchange, as disclosed in note 1. This has resulted in
an additional charge in the 30 June 2020 income statement of
US$2.4m and a corresponding credit of US$2.4m to the share based
reserve. As the options were subsequently issued in October 2020
the share based reserve have since been credited to accumulated
losses.
In terms of the financial position of the Company at 30 June
2021 the deferred tax asset has reduced with the Company moving
into profit, resulting in a charge in the current period of
US$0.5m. At June 2020 no adjustment was made to deferred tax as the
impact of the acquisition of new equipment driving up production
and profitability was not clear. During the period the Company has
made substantial advance payments for equipment, parts and mining
services increasing by US$2.6m from 31 December 2020.
Borrowings have reduced by US$ 2.4m overall from December 2020
due principally to the repayment of bonds in line with the agreed
terms of repayment.
As of 30 June 2021, the Company had cash balances of US$3.5m.
The Directors have assessed that with the current cash balances and
cash forecast to be generated from operations sufficient cash will
be available to meet its current budgeted medium term plans. The
directors are forward looking and are aiming to develop further
funding opportunities to grow the Company.
Aidar Assaubayev
Chief Executive Officer
3 September 2021
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 the UK-adopted International Accounting Standard
34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
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 2020 Annual Report and Accounts and are
reviewed on an ongoing basis. There have been no significant
changes in the first half of 2021 to the principal risks and
uncertainties as set out in the 2020 Annual Report and Accounts and
these are as follows:
-- Fiscal changes in Kazakhstan
-- No access to capital
-- Commodity price risk
-- Currency risk
-- 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
The Directors do not expect any changes in the principal risks
for the remaining six months of the financial year.
Aidar Assaubayev
Chief Executive Officer
3 September 2021
INDEPENT REVIEW REPORT TO ALTYNGOLD PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2021 which comprises the consolidated
income statement, the consolidated statement of profit and loss and
other comprehensive income, the consolidated statement of financial
position, the consolidated statement of changes in equity, the
consolidated statement of cash flows and notes to the financial
information.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of and
has been approved by the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the
group will be prepared in accordance with UK adopted international
accounting standards. The condensed set of financial statements
included in this interim financial report has been prepared in
accordance with UK adopted International Accounting Standard 34,
"Interim Financial Reporting".
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Financial Reporting Council for use
in the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2021 is not prepared, in all material respects, in accordance
with UK adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
Use of our report
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting its responsibilities in
respect of half-yearly financial reporting in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority and for no other purpose. No person is
entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose
of our terms of engagement or has been expressly authorised to do
so by our prior written consent. Save as above, we do not accept
responsibility for this report to any other person or for any other
purpose and we hereby expressly disclaim any and all such
liability.
BDO LLP
Chartered Accountants
London
United Kingdom
3 September 2021
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
ALTYNGOLD PLC
Consolidated income statement
Six months Six months
ended 30 June ended 30 June
2021 2020
Unaudited Unaudited
(restated)
US$'000 US$'000
Revenue 23,009 11,495
Cost of sales (9,037) (7,571)
Gross profit 13,972 3,924
Administrative expenses (2,757) (918)
SShare based payment - (2,400)
Operating profit 11,215 606
Foreign exchange (278) (890)
Finance expense (1,676) (867)
Profit/(loss) before taxation 9,261 (1,151)
Taxation (510) -
Profit/(loss) attributable to s equity
shareholders
8,751 (1,151)
Profit/(loss) per ordinary share Note
Basic and diluted (US cent) 3 32.03c (4.48c)
ALTYNGOLD PLC
Consolidated statement of profit or loss and other comprehensive
income
Six months Six months
ended 30 June ended 30 June
2021 2020
unaudited unaudited
(restated)
US$'000 US$'000
Profit/l(loss) for the period 8,751 (1,151)
Currency translation differences arising on
translations of F foreign operations items
which will or may be reclassified to profit
or loss (1,493) (1,649)
Total comprehensive profit/(loss) for the
period attributable to equity shareholders 7,258 (2,800)
ALTYNGOLD PLC
Consolidated statement of financial position
Six months Year ended
ended 30 June 31 December
2021 2020
Notes (unaudited) (audited)
US$'000 US$'000
Non-current assets
Intangible assets 5 13,016 12,849
Property, plant and equipment 6 33,163 32,092
Other receivables 7 5,996 6,700
Deferred tax asset 4,026 5,311
Restricted cash 13 13
56,214 56,965
Current assets
Inventories 8,522 5,468
Trade and other receivables 7 12,874 7,182
Cash and cash equivalents 3,478 7,154
24,874 19,804
Total assets 81,088 76,769
Current liabilities
Trade and other payables (6,111) (6,705)
Provisions (186) (151)
Borrowings 10 (3,238) (5,833)
(9,535) (12,689)
Net current assets 15,339 7,115
Non-current liabilities
Other financial liabilities & payables (388) (722)
Provisions (5,082) (4,763)
Borrowings 10 (23,490) (23,260)
(28,960) (28,745)
Total liabilities (38,495) (41,434)
Net assets 42,593 35,335
Equity
Called-up share capital 4,267 4,267
Share premium 152,839 152,839
Merger reserve (282) (282)
Other reserve 333 333
Currency translation reserve (54,452) (52,959)
Accumulated loss (60,112) (68,863)
Total equity 42,593 35,335
The financial information was approved and authorised for issue
by the Board of Directors on 3 September 2021 and was signed on its
behalf by:
Aidar Assaubayev -- Chief Executive Officer
ALTYNGOLD PLC
Consolidated statement of changes of equity
Share
Currency based
Share Share Merger translation payment Other Accumulated
capital premium reserve reserve reserve reserves losses Total
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2021 4,267 152,839 (282) (52,959) - 333 (68,863) 35,335
Profit for the
period - - - - - - 8,751 8,751
Exchange
differences on
translating
foreign
operations - - - (1,493) - - (1,493)
Total
comprehensive
profit for the
period - - - (1,493) - - 8,751 7,258
At 30 June 2021 4,267 152,839 (282) (54,452) - 333 (60,112) 42,593
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2020 4,055 151,476 (282) (48,102) - 333 (74,201) 33,279
Profit for the
period - - - - - - 1,249 1,249
Other
comprehensive
loss - - - (1,649) - - (1,649)
Total
comprehensive
loss for the
period - - - (1,649) - 1,249 (400)
New share capital
subscribed 13 62 - - - - - 75
At 30 June 2020
as previously
reported 4,068 151,538 (282) (49,751) 333 (72,952) 32,954
Share based
payment (see
note 1) - - - - 2,400 - (2,400) -
Loss for the
period restated - - - - - - (1,151) (1,151)
Total
comprehensive
loss for the
period -- as
restated - - - - - (1,151) (1,151)
At 30 June 2020
as restated 4,068 151,538 (282) (49,751) 2,400 333 (75,352) 32,954
Audited US$'000 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
Loss for the year - - - - - - 2,938 2,938
Other
comprehensive
loss - - - (4,857) - - (4,857)
Total
comprehensive
loss for the
year - - - (4,857) - - 2,938 (1,919)
Share based
payment charge - - - - 2,400 - - 2,400
Share options
exercised 199 11 1,301 - (2,400) - 2,400 1,500
New share capital
subscribed 13 6 2 - - - - - 75
At 31 December
2020 4,267 152,839 (282) (52,959) - 333 (68,863) 35,335
ALTYNGOLD PLC
Consolidated statement of cash flows
Six months ended Six months ended
30 June 2021 30 June 2020
(unaudited) (unaudited)
Note US$'000 US$'000
Net cash inflow from operating
activities 81,819 1,280
Investing activities
Purchase of property, plant and
equipment *(2,133) (6,371)
Acquisition of intangible assets (375) (265)
Net cash used in investing
activities (2,508) (6,636)
Financing activities
Loans received 4,641 13,956
Loans repaid (6,518) (1,711)
Interest paid (1,120) (949)
Net cash flow (decrease)/increase
from financing activities (2,997) 11,296
(Decrease)/increase in cash and
cash equivalents (3,686) 5,940
Cash and cash equivalents at the
beginning of the period 7,154 105
Effect of exchange rate
fluctuations on cash held 10 -
Cash and cash equivalents at end
of the period/year 3,478 7,874
* Cash paid to purchase property, plant and equipment represents
additions of US$4.2m (note 6) plus a decrease in trade payables of
$0.3m less by a decrease in prepayments for equipment of $2.4m
(Note 7).
ALTYNGOLD PLC
Notes to the consolidated financial information
1. Basis of preparation
General
AltynGold Plc (the "Company") is a Company incorporated in
England and Wales under the Companies Act 2006. The address of its
registered office, and place of business of the Company and its
subsidiaries is set out within the Company information at the end
of this interim report
The Company 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 2021 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 2021
have been prepared, in accordance with the UK-adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority, 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 2020. 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 2020 , which has been
prepared in accordance with both "international accounting
standards in conformity with the requirements of the Companies Act
2006" and "international financial reporting standards adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union".
These interim financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2020 were
approved by the board of directors on 30 April 2021 and delivered
to the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of
the Companies Act 2006.
The financial statements have been reviewed, not audited.
The financial information is presented in US Dollars and has
been prepared under the historical cost convention. On 31 December
2020, IFRS as adopted by the European Union at that date was
brought into UK law and became UK-adopted international accounting
standards, with future changes being subject to endorsement by the
UK Endorsement Board. AltynGold Plc transitioned to UK-adopted
international accounting standards in its consolidated financial
statements on 1 January 2021. There was no impact or changes in
accounting policies from the transition.
The same accounting policies, presentation and method of
computation together with critical accounting estimates,
assumptions and judgements 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.
Prior period adjustments
Share based payment
The prior period has been adjusted to account for the fair value
of the grant of share options made on 30 June 2020, which was not
accounted for in that period. This has resulted in a charge to the
profit and loss account of US$2.4m at 30 June 2020 with a
corresponding credit entry to the share based payment reserve in
the statement of changes in equity. There was no impact on the
equity attributable to shareholders as at 30 June 2020 which
remained unchanged at US$32.9m
The share options were exercised in October 2020 resulting in
the transfer of the share based payment reserve to accumulated
losses.
ALTYNGOLD PLC
Notes to the consolidated financial information (continued)
Going concern
During the current period the Group has been able to grow its
turnover and profitability, increasing production facilitated by
the capital expenditure funded by the borrowings which the Group
has been able to reduce by US2.4m, and which now stand at US$26.7m.
The resultant increase in cash flow and adjusted EBITDA which has
moved up from US$5m to US$13.4m has enabled the Group to maintain
cash reserves and repay the bonds during the year which amounted to
US$2.3m.
At the period end the Group had cash resources of US$3.5m (31
December 2020: US$7.2m). The Board have reviewed the Group's cash
flow forecasts for the period to December 2022. The forecasts are
based on the current approved budgets taking in to account any
adjustments from current trading. The principal capital costs have
now been made and the Directors are of the opinion that the current
cash balances and cash generated from operations will be sufficient
to for the Group to meet its cash flow requirements.
As reported in the 2020 Annual Report there has been minimal
disruption at present from the effects of COVID-19 on the
operations of the Group. However the Board are mindful that this is
a constantly changing and evolving situation that needs to be kept
under constant review. As such the existing arrangements in
relation to all stakeholders to include employees, suppliers and
customers are monitored to ensure there is no disruption in the
operations.
The Board have considered as at the period end possible stress
case scenarios that they consider may likely impact the Group's
operations, financial; position and forecasts. As at the year-end
these are seen as being, illness of the employees, disruption to
supply chains in and out of the group, impacting the production and
possible falls in gold prices.
From the analysis undertaken the Board have concluded that the
Group will be able to continue to trade based on its existing
resources. The stress tests included a drop in the gold price of
10% from the current gold price and budgeted production by 20%, in
both scenarios and combination of both together it was concluded
that the Group had sufficient cash reserves to continue to operate.
The Board therefore considers it appropriate to adopt the going
concern basis of accounting in preparing these financial
statements.
2. Segmental information
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for
allocating resources and assessing performance of the operating
segments and making strategic decision, has been identified as the
Board of Directors.
The Board of Directors consider there to be two operating
segments, the exploration and development of mineral resources at
Sekisovskoye and at Teren-Sai, both based in one geographical
segment, being Kazakhstan. All sales were made in Kazakhstan from
the mine at Sekisovskoye. However in relation to Teren-Sai as there
is discrete financial information available and the assets account
for greater than 10% of the combined total assets of all segments
it is considered to be a separate operating segment.
Teren-Sai is an exploration asset, details of the carrying value
of the asset are shown in note 5.
3. Profit/(loss) per ordinary share
Basic profit/(loss) per share is calculated by dividing the
profit/(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) for the financial period for calculating the basic
loss per share for the period are as follows:
Six months Six months
ended 30 ended 30
June 2021 June 2020
(restated)
(unaudited) (unaudited)
The basic weighted average number of ordinary
shares in issue during the period
27,332,933 *25,697,036
The profit/(loss) for the period attributable to
equity shareholders (US$'000s)
8,751 (1,151)
*Restated to reflect the 100:1 consolidation of shares in
October 2020.
4. Alternative performance measures
The Directors have presented the alternative performance
measures adjusted EBITDA , operating cash cost and total cash cost
as they monitor these performance measures at a consolidated level
and the Directors believe it is relevant in measuring the Group's
performance.
A reconciliation of the alternative performance measures is
shown below.
Adjusted EBITDA, operating cash cost and total cash cost are not
defined performance measures in IFRS. The Group's definition of
adjusted these may not be comparable with similar titled
performance measures as disclosed by other entities.
Six months
Six months ended 30 June
ended 30 June 2020
2021 (unaudited)
(unaudited) (restated)
Adjusted EBITDA US$000's US $000's
Profit/(loss) before taxation 9,261 (1,151)
Adjusted for
Finance expense 1,676 867
Depreciation of tangible fixed assets 2,167 1,947
Share based payment - 2,400
Foreign currency translation 278 890
Adjusted EBITDA 13,382 4,953
Operating cash cost
US$ US$
Cost of sales 9,037 7,571
Adjusted for
Depreciation of tangible fixed assets (2,167) (1,947)
6,870 5,624
Gold sold in the period per oz 12,560 6,790
Operating cash cost per oz 546 828
Total cash cost
Cost of sales 9,037 7,571
Adjusted for
Administrative expenses 2,758 918
Depreciation of tangible fixed assets (2,167) (1,947)
9,628 6,542
Gold sold in the period per oz 12,560 6,790
Total cash cost per oz 766 963
Teren-Sai Exploration and
5. Intangible assets geological data evaluation costs US$'000
Cost
1 January 2020 9,931 7,488 17,419
Additions - 1,271 1,271
Amortisation capitalised - 608 608
Currency translation
adjustment (905) (717) (1,622)
December 2020 9,026 8,650 17,676
Additions - 375 375
Amortisation capitalised - 324 324
Transfer - (165) (165)
Currency translation
adjustment (145) (140) (285)
30 June 2021 8,881 9,044 17,925
Accumulated amortisation
1 January 2020 4,476 - 4,476
Charge for the period 608 - 608
Currency translation
adjustment (422) - (422)
Revenue relating to
production 165 165
31 December 2020 4,662 165 4,827
Charge for the period 324 - 324
Transfer to cost - (165) (165)
Currency translation
adjustment (77) (77)
30 June 2021 4,909 - 4,909
Net books values
30 June 2021 3,972 9,044 13,016
31 December 2020 4,364 8,485 12,849
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 6
years, with the right to extend for another 5 years if there is a
commercial discovery of resources. It is the intention of the
Company to extend the licence and the necessary documentation is
being prepared. Ongoing costs in relation to exploration and
evaluation are capitalised.
6. Property, plant and equipment
Plant,
Freehold land Equipment Total
Mining and fixtures
properties buildings and Assets under
and leases fittings construction
US$000 US$000 US$000 US$000 US$000
Cost
1 January 2020 13,949 24,786 17,446 1,067 57,248
Additions 1,622 166 5,555 1,246 8,589
Disposals - - (250) - (250)
Transfers (764) -- 1,383 1,3811,383 (8) (471) 140
Transfer from
inventories - -- -1,383 - 241 241
Currency
translation
adjustment (1,543) (2,285) (1,641) (110) (5,579)
31 December
2020 13,264 24,050 21,102 1,973 60,389
Additions 1,761 103 1,633 745 4,242
Disposals - - - - -
Transfers 161 652 67 (652) (6531) 228
Transfer to
inventories - - -1,383 - (365) (365)
Currency
translation
adjustment (325) (410) (346) (29) (1,110)
30 June 2021 14,861 24,395 22,456 1,672 63,384
Accumulated
depreciation
1 January 2020 2,441 10,563 13,928 - 26,932
Charge for the
period 520 1,885 1,545 - 3,950
Disposals - - (250) - (250)
Transfers 140 (80) 80 - 140
Currency
translation
adjustment (232) (997) (1,246) - (2,475)
1 December
2020 2,869 11,371 14,057 - 28,297
Charge for the
period 299 1,074 794 - 2,167
Transfers 161 - 67 - 228
Currency
translation
adjustment (54) (191) (226) - (471)
30 June 2021 3,275 12,254 14,692 - - 30,221
Carrying
amount
30 June 2021 11,586 12,141 7,764 1,672 33,163
31 December
2020 10,395 12,679 7,045 1,973 32,092
ALTYNGOLD PLC
Notes to the consolidated financial information (continued)
7. Trade and other receivables
Non-current
30 June 31 December
2021 2020
(unaudited) (audited)
US$000's US $000's
VAT recoverable 3,436 1,705
Prepayments- advances to suppliers for equipment 2,560 4,995
5,996 6,700
The amount recoverable in relation to Value Added Tax is
expected to be recovered by offset against VAT payable in future
periods.
Current
30 June 31 December
2021 2020
(unaudited) (audited)
US$000's US $000's
Trade receivables 783 -
VAT recoverable 4,199 3,549
Prepayments- advances to suppliers 7,884 2,826
Other receivables -- recoverable 23 823
Other receivables -- provision (15) (16)
12,874 7,182
Prepayments have increased as a result of advance payments to
suppliers for parts and consumables.
8. Notes to the cash flow statement
Six months Six months
ended 30 June ended 30 June
2021 2020
(unaudited) (unaudited)
(restated)
US$000's US $000's
Profit/(loss) before taxation 9,261 (1,151)
Adjusted for
Finance expense 1,676 867
Depreciation of tangible fixed assets 2,167 1,947
Increase in inventories (2,689) (2,424)
Increase in trade receivables (7,641) (102)
Decrease in trade and other payables (1,233) (1,147)
Share based payment - 2,400
Foreign currency translation 278 890
Cash inflow from operations 1,819 1,280
Income taxes - -
1.819 1,280
9. 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$77,000 (31 December 2020
US$52,000).
Six months Six months
ended 30 Ended 30
June 2021 June 2020
US$000 US$000
Short term employee benefits 66 35
66 35
Social security costs 2 2
68 37
During the period, the following transactions were connected
with Company's in which the Assaubayev family have a controlling
interest:
-- An amount is owing to Asia Mining Group of US$nil, (31 December 2020:
US$85,892) and is included within trade payables.
-- Loan amounts due by the Group to Amrita Investments Limited a company
controlled by the Assaubayev family, total US$nil (31 December 2020
US$45,000). The 10% convertible bond and interest due to Amrita
Investments of U$1,559,250 was repaid in May 2021 as per the terms of the
bond, (31 December 2020 US$1,525,747).
-- The balance of the 10% convertible bond issued to African Resources
Limited amounting to US$297,000 (including accrued interest) was repaid
in May 2021.
10 . Borrowings
Six months Year ended
ended 30 June 31 December
2021 2020
(unaudited) (audited)
US$000's US $000's
Current loans and borrowings
Bonds - 2,882
Bank loans 3,238 2,906
Related party loans - 45
3,238 5,833
Due one-two years
Bonds 9,458 9,317
Bank loans 5,348 2,997
14,806 12,314
Due two-five years
Bank loans 8,684 8,990
8,684 8,990
Due more than five years
Bank loans - 1,956
- 1,956
Total non-current loans and borrowings 23,490 23,260
Bond Listed on Astana International Exchange
The total number of bonds at the period end amounted to US$10m
at a coupon rate of 9%, the bonds are repayable in December 2022.
At the year end the carrying value approximates to their fair
value.
Bank loans
The Company has an agreed a facility with JSC Bank Center Credit
(BCC) for an amount of US$17m. The bank loan is repayable in
instalments over a term of 7 years and bears interest at 6%-7%,
capital repayments commenced in October 2020.
In addition on 30 December 2020 the Company agreed a new
facility with BCC of US$5.5m (2.3bln Tenge), of this amount US$3.6m
has to be utilised to purchase equipment and the balance of US$1.9m
for working capital purposes. US$973,000 was drawn down in December
2020, the balance of the loan was drawn down in 2021. The loan is
denominated in Kazakh Tenge with interest at 15.5% repayable in
instalments over 5 years with a 6 month capital repayment
holiday.
The bank loan is secured over the assets of the Group.
11. Reserves
A description and purpose of reserves is given below:
Reserve Description and purpose
Amount of the contributions made by
Share capital 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.
Gains/losses arising on re-translating the net
Currency translation reserve assets of overseas operations into US Dollars.
Accumulated losses Cumulative net gains and losses recognised in
the consolidated statement of financial
position.
12. 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.altyngold.uk
ALTYNGOLD PLC
Company information
Directors Kanat Assaubayev Chairman
Aidar Assaubayev Chief executive officer
Sanzhar Assaubayev Executive director
Ashar Qureshi Non-executive director
Thomas Gallagher Non-executive director
Victor Shkolnik Non-executive director
Secretary Rajinder Basra
Registered office and Company number: 05048549
number 28 Eccleston Square
London SW1V 1NZ
Telephone: +44 208 932
2455
Company website www.altyngold.uk
10 Novostroyevskaya
Kazakhstan office Sekisovskoye Village
Kazakhstan Telephone: +7
(0) 72331 27927 Fax: +7
(0) 72331 27933
Auditor BDO LLP,
55 Baker Street,
London W1U 7EU
Neville Registrars
Registrars Neville House Steelpark
Road Halesowen West
Midlands B62 8HD
Telephone: +44 (0) 121
585 1131
NatWest Bank plc London
Bankers 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:
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CONTACT:
Altyn Plc
SOURCE: Altyn Plc
Copyright Business Wire 2021
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