TIDMALTN
ALTYNGOLD PLC
Unaudited Interim Results -- six months to 30 June 2022
AltynGold Plc ("AltynGold" or the "Company"), the gold mining
and development company, announces its unaudited results for the
six months to 30 June 2022.
The Company had a successful 6 months with milling of ore
exceeding 300kt generating an increase in profits to US$11.6m (2021
US$9.3m). The principal KPI's saw an increase from the prior
period, the Company is continuing to grow and develop in line with
its medium-term plan.
The Company's aim is to develop the mine at Sekisovskoye moving
from its current level of processing to 1mt of ore in a phased
development. The current plan is to move to 650ktpa in the current
period and progressively move up to 850ktpa in the medium term.
The management are currently finalising the funding with the
bank to invest in the processing plant to move the capability to
1mtpa.
In previous periods the Company has been developing the mine
site, investing in equipment and making use of subcontractors in
order to develop the mine and extract ore for processing. The move
to increase the involvement of the subcontractors has streamlined
the process of ore extraction and also accelerated the mines
capital development, the costs of the latter are reflected in the
additions to mining properties in the current period.
In line with its mine developments the Company is aware of its
social and environmental responsibilities, particularly in relation
to climate change and carbon reduction. Currently in Kazakhstan
there are three levels of categorisation for companies based on
their carbon emissions. AltynGold is in the lowest level of
category, and closely monitors its emissions, reporting to the
relevant government bodies on a regular basis. The Company will
continue to look at the development of its social and environmental
policies as it evolves.
Highlights:
Mine development
-- Transport declines No.1 and No. 2 have both been developed to the horizon
100masl from 150masl in the prior period.
-- Development of the mine tunneling amounted to 2,992 linear metres,
(H12021: 3,131 linear metres).
-- Exploration drilling amounted to 11,040 linear metres, (2021: 8,200m).
-- Ore was mined in the period principally from ore bodies 3.8 and 11 at
horizons between 164masl to 117 masl.
-- An extension for the licence at Teren-Sai has been applied for in July
2022 to continue exploration works for a further three years.
Production
-- The milled ore was 306,599t (H1 2021: 262,744t), in the current period,
an increase of 17%.
-- Average processed gold grade in the period was 2.06g/t (H1 2021:
1.88g/t).
-- Gold recovery averaged 83.44% during the 6 month period (H1 2021:
82.18%).
-- H1 2022 gold production from Sekisovskoye was 16,965oz, compared with H1
2021 of 13,066oz
-- H1 2022 gold sold was 17,542oz, compared with H1 2021 of 12,560oz
Financial
-- The turnover has increased to US$32m (H1 2021: US$23m). The gold price
achieved averaged US$1,830oz during the period (H1 2021: US$1,832oz).
-- The Company made a gross profit of US$17m (H1 2021: gross profit of
US$14m), with a net profit before taxation of US$11.6m (H1 2021: loss of
US$9.3m).
-- The total cash cost of production was US$884oz (H1 2021: US$766oz).
-- Adjusted EBITDA achieved was US$16.6m (H1: 2021: US$13.4m).
-- A loan in principal has been agreed with Bank Center Credit for an
additional US$40m to fund the Company's capital program.
Aidar Assaubayev, CEO of AltynGold plc commented:
'The Company is moving forward in its plan to increase its
production capability to 1mtpa and has agreed an in principal loan
with Bank Center Credit in order to assist in this process. The
current results are very encouraging and demonstrate the strong
economics of our business'.
For further information please contact:
AltynGold plc
For further information please contact:
Rajinder Basra, CFO +44 (0) 203 432 3198
Email: info@altyn.uk
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.
This report will be available on our website at
www.altyngold.uk
H1 2022 Review
Mine developments
H1 2022 Operational Overview -- Sekisovskoye
Ore H1 2022 H1 2021
Ore mined tons 277,398 266,607
Gold grade g/t 2.06 1.85
Silver grade g/t 1.69 1.80
Mineral processing H1 2022 H1 2021
Milling tons 306,599 262,774
Gold grade g/t 2.06 1.88
Silver grade g/t 1.69 1.83
Gold recovery % 83.44% 82.18%
Silver recovery % 72.34% 73.19%
Gold produced ounces 16,965 13,066
Silver produced ounces 11,306 11,315
The principal development milestones achieved in the period
were:
-- Tunnelling and decline development of 2,992 linear metres, in the similar
period last year it was 3131 metres.
-- Exploration drilling was carried out and amounted to11,039m (2021: 8,200
linear metres).
The declines have now been developed to 100masl. The ore bodies
currently being developed are ore bodies 3, 8 and 11 which, are
expected to continue to be mined into the second half of the year.
The principal ore body that is ready for extraction after those
noted above will be ore body 10 above which is above 100masl and is
readily accessible.
The principal capital expenditure relating to plant to extract
ore at the Sekisovskoye mine is now in place; the ongoing capital
expenditure will relate to the development of the processing plant
to increase the capability of ore processing and further
development of the mine declines.
The gold grade has increased from 1.88g/t to 2.06g/t and is in
line with that budgeted for the period. Further increases are
expected as the ore bodies are developed.
H1 2022 -- Teren-Sai
In the current period the Company has been concentrating on the
finalising its plans for future development of the site, with
proposals being sent into the government department in July 2022,
these are currently being reviewed. The initial exploration phase
requested is three years, but the Company is anticipating a move to
production within this period once more detailed studies have been
carried out on the approach to develop the site and define the ore
bodies.
As part of the review of Teren-Sai the Company has narrowed its
search parameters of the 288km(2) site, and reduced the areas of
interest, to concentrate on those areas showing significant
potential. Areas that are no longer of significance are to be
returned to the government for alternative use.
H1 2022 Financial Review
The Company has reported a gross profit of US$17m for H1 2022,
against US$14m for H1 2021, with turnover of US$32m (H1 2021
US$23m).
The results are in line with budget, with 306.5kt of ore milled,
the Company is expecting to process up to 650,000t for the year.
The average gold price achieved was similar to the prior period at
of US$1,830 (H1 2021 US$1,832).
Sekisovskoye produced 16,965oz of gold in H1 2022 (H1 2021:
13,066oz). Gold sold during the period amounted to 17,542oz (H2
2021: 12,560oz).
The operating cash cost of production (cost of sales excluding
depreciation and provisions) for the period was US$730/oz (H1 2021
US$546/oz). The total cash cost was US$884/oz as compared to
US$766/oz in H1 2021. These are in line with the expected costs for
the period.
Administrative costs have been contained and were US$2.7m which
is similar to the prior period. Inflationary pressures are
increasing in both Kazakhstan and the UK, and the management will
be monitoring the position closely to ensure that action is taken
to minimise any significant increase in costs to the Company. The
Company has benefited in the current period from the strength of
the US Dollar, (which is the currency in which revenues are
received) against the Kazakh, at the 31December 2021 it was 432
Kazakh Tenge, and the dollar has averaged 448 Kazakh Tenge in the
six month period. The current rate in September is one US$ to 485
Kazakh Tenge.
In terms of finance costs these are similar to the prior period;
with no new loans in the period; the finance cost was US$1.7m in
both periods. Interest and loan commitments were paid as they
arose, and plans are in place to repay the bond of US$10m in
December 2022.
The significant change in the financial position of the Company
relates to the movement in advance payments made to the contractor
who is responsible for the capital development and ore extraction
services. As the development has progressed and production growing,
the payments have increased in the period. The current contract
runs until April 2023. A monthly drawdown and reconciliation
against monies advanced is done on a monthly basis as the mine
development continues. The Company generated an EBITDA of US$16.6m
(2021: US$13.4m), but a substantial amount of this was absorbed in
the period by the capex development prepayments as noted above.
As of 30 June 2022, the Company had cash balances of US$1.1m. A
loan in principal has been agreed with Bank Center Credit in
Kazakhstan, there are sufficient projected funds from this and from
current trading to meet the Company's medium term plans. This
includes the repayment of the US$10m bonds that are due for
repayment in December 2022.
Aidar Assaubayev
Chief Executive Officer
26 September 2022
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 9 and 10 of the 2021 Annual Report and Accounts and are
reviewed on an ongoing basis. There have been no significant
changes in the first half of 2022 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 mines
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
26 September 2022
ALTYNGOLD PLC
Consolidated statement of profit or loss -- six months to 30 June 2022
Six months Six months
ended 30 June ended 30 June
2022 2021
Unaudited Unaudited
US$'000 US$'000
Revenue 32,095 23,009
Cost of sales (15,137) (9,037)
Gross profit 16,958 13,972
Administrative expenses (2,714) (2,757)
Operating profit 14,244 11,215
Foreign exchange (954) (278)
Finance expense (1,734) (1,676)
Profit before taxation 11,556 9,261
Taxation (689) (510)
Profit attributable to equity shareholders 10,867 8,751
Profit per ordinary share Note
Basic and diluted (US cent) 3 39.76c 32.03c
ALTYNGOLD PLC
Consolidated statement of profit or loss and other comprehensive income
Six months Six months
ended 30 June ended 30 June
2022 2021
unaudited unaudited
(restated)
US$'000 US$'000
Profit for the period 10,867 8,751
Currency translation differences arising on
translations of foreign operations items
which will or may be reclassified to profit
or loss (2,506) (1,493)
Total comprehensive profit for the period 8,361
attributable to equity shareholders 7,258
ALTYNGOLD PLC
Consolidated statement of financial position
Six months Six months
ended 30 June ended 30 June
2022 2021
Notes (unaudited) (audited)
US$'000 US$'000
Non-current assets
Intangible assets 5 12,576 13,016
Property, plant and equipment 6 34,130 33,163
Other receivables 7 10,348 5,996
Deferred tax asset 6,936 4,026
Restricted cash 35 13
64,025 56,214
Current assets
Inventories 10,775 8,522
Trade and other receivables 7 21,536 12,874
Cash and cash equivalents 1,148 3,478
33,459 24,874
Total assets 97,484 81,088
Current liabilities
Trade and other payables (6,030) (6,111)
Provisions (250) (186)
Borrowings 10 (19,374) (3,238)
(25,654) (9,535)
Net current assets 7,805 15,339
Non-current liabilities
Other financial liabilities &
payables (450) (388)
Provisions (5,488) (5,082)
Borrowings 10 (5,366) (23,490)
(11,304) (28,960)
Total liabilities (36,958) (38,495)
Net assets 60,526 42,593
Equity
Called-up share capital (4,267) (4,267)
Share premium (152,839) (152,839)
Merger reserve 282 282
Other reserve - (333)
Currency translation reserve 56,958 54,452
Accumulated loss 39,340 60,112
Total equity (60,526) (42,593)
The financial information was approved and authorised for issue
by the Board of Directors on 26 September 2022 and was signed on
its behalf by:
Aidar Assaubayev -- Chief Executive Officer
ALTYNGOLD PLC
Consolidated statement of changes of equity
Share
Currency based
Share Share Merger translation payment Other Accumulated
capital premium reserve reserve reserve reserves losses Total
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2022 4,267 152,839 (282) (51,412) - - (50,207) 55,205
Profit for the
period - - - - - - 10,867 10,867
Exchange
differences on
translating
foreign
operations - - - (5,546) - - (5,546)
Total
comprehensive
income for the
period - - - (5,546) - - 10,867 5,321
At 30 June 2022 4,267 152,839 (282) (56,958) - - (39,340) 60,526
Unaudited US$'000 US$'000 US'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2021 4,267 152,839 (282) (52,959) - 333 (68,863) 35,335
Profit for the
period - - - - - - 8,751 8,751
Exchange
differences on
translating
foreign
operations - - - (1,493) - - (1,493)
Total
comprehensive
income for the
period - - - (1,493) - - 8,751 7,258
At 30 June 2021 4,267 152,839 (282) (54,452) - 333 (60,112) 42,593
Audited US$'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
year - - - - - - 18,323 18,323
Exchange
differences on
translating
foreign
operations - - - 1,547 - - 1,547
Total
comprehensive
income - - - 1,547 - - 18,323 19,870
Transfer to
reserves - - 2 - - (333) 333 -
At 31 December
2021 4,267 152,839 (282) (51,412) - - (50,207) 55,205
ALTYNGOLD PLC
Consolidated statement of cash flows
Six months ended Six months ended
30 June 2022 30 June 2021
(unaudited) (unaudited)
Note US$'000 US$'000
Net cash inflow from operating
activities 8 13,622 1,819
Investing activities
Purchase of property, plant and
equipment *(11,805) *(2,133)
Acquisition of intangible assets (189) (375)
Net cash used in investing
activities (11,994) (2,508)
Financing activities
Loans received - 4,641
Loans repaid (2,668) (6,518)
Interest paid (1,282) (1,120)
Net cash flow decrease from
financing activities (3,950) (2,997)
Decrease in cash and cash
equivalents (2,322) (3,686)
Cash and cash equivalents at the
beginning of the period 3,598 7,154
Effect of exchange rate
fluctuations on cash held (128) 10
Cash and cash equivalents at end
of the period 1,148 3,478
* Cash paid to purchase property, plant and equipment represents
additions of US4.9m (2021 :US$4.2m) (note 6) plus the cash amounts
paid as a result of the net increase in prepayments/payables of
US$6.9m from the prior year.(2021 a net decrease in
prepayments/payables of $2.1m).
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 2022 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 2022
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 2021. 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 2021 , 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 2021 were
approved by the board of directors on 24 June 2022 and delivered to
the Registrar of Companies. The report of the auditors on those
accounts was qualified in relation to not obtaining sufficient
audit evidence in relation to a prepayment at the year end. Further
details are available on page 37 of the annual report.
The financial statements have not been reviewed.
The financial information is presented in US Dollars and has
been prepared under the historical cost convention. On 31 December
2021, 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.
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.
Going concern
Turnover and profitability have continued to grow as the Group
expands production. The Company has made significant payments to
facilitate the capital development of the mine at Sekisovskoye and
for ore extraction services for which the contract runs to April
2023. These prepayments will be offset as production and capital
development continues during the year.
At the period end the Group had cash resources of US$1.1m (31
December 2021: US$3.6m). The Board have reviewed the Group's cash
flow forecasts for the period to December 2023. The forecasts are
based on the current approved budgets taking into account any
adjustments from current trading. The principal capital costs and
to a large extent the mining costs of ore extraction have now been
made and the Directors are of the opinion that the current cash
balances and cash generated from operations will be sufficient for
the Group to meet its cash flow requirements. In addition, the
Group are in the final stages of agreeing a US$40m loan facility
for further capital development.
The Board have considered at the period end possible stress case
scenarios that they consider may likely impact the Group's
operations, financial position and forecasts, such as factors
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 10%, 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 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 per ordinary share
Basic profit per share is calculated by dividing the profit
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 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 2022 June 2021
(unaudited) (unaudited)
The basic weighted average number of ordinary
shares in issue during the period 27,332,933 27,332,933
The profit for the period attributable to equity
shareholders (US$'000s) 10,867 8,751
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 EBITDA may not be comparable with similar titled
performance measures as disclosed by other entities.
Six months Six months
ended 30 June ended 30 June
2022 2021
(unaudited) (unaudited)
Adjusted EBITDA US$000's US $000's
Profit before taxation 11,556 9,261
Adjusted for
Finance expense 1,734 1,676
Depreciation of tangible fixed assets 2,339 2,167
Foreign currency translation 954 278
Adjusted EBITDA 16,583 13,382
Operating cash cost US$ US$
Cost of sales 15,137 9,037
Adjusted for
Depreciation of tangible fixed assets (2,339) (2,167)
12,798 6,870
Gold sold in the period per oz 17,542 12,560
Operating cash cost per oz 729 546
Total cash cost
Cost of sales 15,137 9,037
Adjusted for
Administrative expenses 2,714 2,757
Depreciation of tangible fixed assets (2,339) (2,167)
15,512 9,627
Gold sold in the period per oz 17,542 12,560
Total cash cost per oz 884 766
Exploration and
5. Intangible Teren-Sai evaluation
assets geological data costs US$'000
Cost
1 January 2021 9,026 8,650 17,676
Additions - 830 830
Amortisation
capitalised - 585 585
Currency
translation
adjustment (225) (240) (465)
December 2021 8,801 9,825 18,626
Amortisation
capitalised - 276 276
Additions - 190 190
Currency
translation
adjustment (632) (715) (1,347)
30 June 2022 8,169 9,576 17,745
Accumulated
amortisation
1 January 2021 4,662 165 4,827
Charge for the
period 585 - 585
Currency
translation
adjustment (125) (7) (132)
31 December 2021 5,122 158 5,280
Charge for the
period 276 - 276
Currency
translation
adjustment (375) (12) (387)
30 June 2022 5,023 146 5,169
Net books
values
30 June 2022 3,146 9,430 12,576
31 December 2021 3,679 9,667 13,346
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.
The Company is in the final stages of the renewal of the
licence, an updated and revised application was submitted to the
relevant authorities in July 2022 for an extension to the
exploration licence. The licence is for three years and will
commence on the date the licence is signed, which is expected to be
in Q4 2022. During the period of licence renewal, the company can
continue its exploration activities.
6. Property, plant and equipment
Mining Freehold Plant, Assets under Total
properties land Equipment construction
fixtures
and and
buildings fittings
US$000 US$000 US$000 US$000 US$000
Cost
1 January 2021 13,264 24,050 21,102 1,973 60,389
Additions 3,356 197 2,800 2,187 8,540
Disposals - - (659) - (659)
Transfers - 1, 1,441 - (1,441) -
Transfer -
inventories - - - 170 170
Currency
translation
adjustment (611) (654) (464) (67) (1,796)
31 December
2021 16,009 25,034 22,779 2,822 66,644
Additions 2,076 43 742 2,022 4,883
Disposals - - (54) - (54)
Transfers - - 645 (6531) -
Transfer to
inventories - 1,383 - (500) (500)
Currency
translation
adjustment (1,697) (1,797) (1,689) (342) (5,525)
30 June 2022 16,388 23,280 22,423 3,357 65,448
Accumulated
depreciation
1 January 2021 2,869 11,371 14,057 - 28,297
Charge for the
period 699 2,188 1,599 - 4,486
Disposals - (2) (659) - (661)
Currency
translation
adjustment (218) (238) (372) - (828)
31 December
2021 3.350 13,319 14,625 - 31,294
Charge for the
period 401 1,088 850 - 2,339
Currency
translation
adjustment (254) (985) (1,076) - (2,315)
30 June 2022 3,497 13,422 14,399 - 31,318
Carrying amount
30 June 2022 12,891 9,858 8,024 3,357 34,130
31 December
2021 12,659 11,715 8,154 2,822 35,350
7. Trade and other receivables
Non-current
30 June 31 December
2022 2021
(unaudited) (audited)
US$000's US $000's
VAT recoverable 1,277 1,375
Prepayments- advances to suppliers 9,071 2,550
10,348 3,925
The amount recoverable in relation to Value Added Tax is
expected to be recovered by offset against VAT payable in future
periods.
The advances to suppliers relate to mining services for capital
development of the mine at Sekisovskoye.
Current
30 June 31 December
2022 2021
(unaudited) (audited)
US$000's US $000's
Trade receivables 902 -
VAT recoverable 5,428 5,054
Prepayments - advances to suppliers 11,322 14,500
Prepayments - other 3,929 -
Other receivables 96 2,917
Other receivables/prepayments -- provision (141) (941)
21,536 21,530
The prepayment of advances to suppliers relates to payments for
mining services for the extraction of ore.
8. Notes to the cash flow statement
Six months Six months
ended 30 June ended 30 June
2022 2021
(unaudited) (unaudited)
US$000's US $000's
Profit before taxation 11,556 9,261
Adjusted for
Finance expense 1,734 1,676
Depreciation of tangible fixed assets 2,339 2,167
Increase in inventories (1,809) (2,689)
Increase in trade receivables (1,310) (7,641)
Increase/(decrease) in trade and other
payables 158 (1,233)
Foreign currency translation 954 278
Cash inflow from operations 13,622 1,819
Income taxes - -
13,622 1,819
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$114,000 (31 December 2021
US$122,000).
Six months Six months
ended 30 Ended 30
June 2022 June 2021
US$000 US$000
Short term employee benefits 138 66
Social security costs 9 2
147 68
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$77,816, (31 December 2021:
US$83,850) 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$12,000 (31 December 2021
US$12,000).
-- The group made sales to Altyn Group Qazaqstan of US$122,000 the amount is
included with in receivables at the period end.
10 . Borrowings
Six months Year ended
ended 30 June 31 December
2022 2021
(unaudited) (audited)
US$000's US $000's
Current loans and borrowings
Bonds 9,891 9,723
Bank loans 5,354 5,298
Related party loans 12 12
Other borrowings - 54
15,257 15,087
Due one-two years
Bonds - -
Bank loans 3,049 3,546
3,049 3,546
Due two-five years
Bank loans 6,434 8,675
6,434 8,675
Total non-current loans and borrowings 9,483 12,221
Bond Listed on Astana International Exchange
The total number of bonds at the period end amounted to US$10m
at a coupon rate of 9%, the bonds are repayable in December 2022.
At the period end the carrying value approximates to their fair
value.
Bank loans
The bank loans are repayable in instalments and bear interest at
6%-7% on the US$ denominated loans and at 15.5% on the Kazakh
denominated loans.
The bank loans are 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 shareholders
Share capital in return for the issue of shares.
Share premium Amount subscribed for share capital in excess of
nominal value.
Merger Reserve Reserve created on application of merger
accounting under a previous GAAP.
Currency translation reserve Gains/losses arising on re-translating the net
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
In July 2022 the Company agreed in principal a US$40m loan from
Bank Center Credit in Kazakhstan, the loan facility is expected to
be signed and details agreed during Q4 2022.
An extension for the licence at Teren-Sai has been applied for
in July 2022 to continue exploration works for a further three
years.
ALTYNGOLD PLC
Company information
Directors Kanat Assaubayev Chairman
Aidar Assaubayev Chief executive officer
Sanzhar Assaubayev Executive director
Ashar Qureshi Non-executive director
Andrew Terry Non-executive director
Maryam Buribayeva 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
Kazakhstan office 10 Novostroyevskaya
Sekisovskoye Village
Kazakhstan
Telephone: +7 (0) 72331
27927
Fax: +7 (0) 72331 27933
Auditor BDO LLP,
55 Baker Street,
London W1U 7EU
Registrars Neville Registrars
Neville House
Steelpark Road
Halesowen
West Midlands B62 8HD
Telephone: +44 (0) 121
585 1131
Bankers NatWest Bank plc
London 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:
https://www.businesswire.com/news/home/20220925005040/en/
CONTACT:
AltynGold Plc
SOURCE: AltynGold Plc
Copyright Business Wire 2022
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