TIDMAMC
RNS Number : 4493N
Amur Minerals Corporation
30 September 2021
30 September 2021
AMUR MINERALS CORPORATION
(AIM: AMC)
Interim Results 2021
Chairman's Statement
It is with pleasure that I take this opportunity to update
shareholders of Amur Minerals Corporation (the "Company") on the
Company's successful performance during the first six months of
2021.
In August 2021, the Company submitted the Permanent Conditions
Report ("TEO") on its far east Russia Kun-Manie nickel copper
sulphide project to the Russian Government Commission for Natural
Resources Reserves ("GKZ"). The TEO was completed by Moscow based
and certified Oreall LLC ("Oreall"), who have compiled Russian
based project specific operating and capital cost estimates using a
team of industry recognised specialists and experts. The completion
of the GKZ review will establish the reserves available for open
pit mining at its "Detailed Exploration and Mining Production"
licence (BLG 15883 TE) located in Amur Oblast. Subsequent to GKZ
registration of the reserves, the results will be utilised to
establish the Russian approved mine plan for Kun-Manie.
TEO Highlights:
-- Revenue is based on a conservative nickel price of US$
13,300/t (US$ 18,600/t today) and a copper price of US$5,960/t (US$
9,260/t today). Metal recoveries derived by Gipronickel Institute
(a wholly owned subsidiary of Norilsk Nickel) are anticipated to be
73.5% for nickel and 52.3% for copper based on a nickel cut-off
grade of 0.3% nickel.
-- Russian B + C1 reserve inclusive of in-balance and
off-balance totals 144.2 million ore tonnes containing 1.10 million
nickel tonnes and 304 thousand copper tonnes. This inventory
approximates the JORC resource categories of Measured and
Indicated.
-- Potential mine life estimated to be 25 years, sustaining an
11.2 million tonne per year throughput.
-- Open pit mining operating costs per ore tonne US$ 14.79 (ore
plus waste cost). All other costs total $33.25 per ore tonne FOB
Vladivostok, Russia.
-- Total initial capital costs are projected to be approximately
US$ 1.0 billion including the construction of a power line and a
dual carriageway gravel surface road. Working capital expenditures
projected to be US$ 83 million.
On 30 June 2021, the Company announced that RPM Global had
completed an update to the JORC resource estimates including all
drilling and trenching. Based on a 0.3% nickel equivalent cut-off
grade ("COG"), the global JORC ore tonnage has increased by 19.2
million tonnes ("Mt") (12.4%) to 174.3 Mt, by 156,000 nickel tonnes
(13.5%) to 1.31 Mt of nickel (averaging 0.75% nickel) and by 53,000
copper tonnes (16.6%) to 372,000 copper tonnes (averaging 0.21%
copper). A 0.3% nickel cut-off grade was used to calculate the JORC
Resource compared to previously reported resources at a 0.4% Nickel
cut off-grade. The reduction in the COG is primarily due to the
metallurgical test results by Gipronickel Institute which confirmed
that two revenue generating concentrate products (Ni and Cu) could
be produced. Previous resource estimates were based on a single
nickel only payable concentrate being produced with zero revenue
contribution being derived from the copper.
NRR Investment
On 05 July 2021, the Company sold its wholly owned subsidiary
Carlo Holdings Ltd ("CHL") which held an investment of US$4.67
million in a Convertible Loan Note ("CLN") on Nathan River
Resources Pte Limited ("NRR"). NRR owns the Roper Bar Iron Ore
Project located in the Northern Territory in Australia. Amur
acquired CHL on 28 August 2020 for a cash consideration of GBP1,
and immediately provided the funding whereby CHL subscribed for the
CLNs provided by NRR.
A share sale agreement was entered into with Hamilton
Investments Pte. Ltd., a subsidiary of Britmar (Asia) Pte Ltd for
cash consideration of US$6,137,019. This represents a profit of
US$1.47 million when set against its original investment, albeit
foregoing the interest that would otherwise be payable over the
lifetime of the CLNs at a coupon rate of 14%. During the 6 month
period to 30 June 2021, the Company received US$326,900 in interest
payments.
Financial Overview
As at 30 June 2021 the Company had cash reserves of
US$1,846,000, down from US$2,790,000 at the start of 2021. Shortly
after the period end, the Company received US$6,137,019 in cash
from Hamilton Investments Pte. Ltd in respect of the sale of CHL.
The Company remains debt free.
Administration expenses for the first half of 2021 totalled
US$1.04 million (H1 2020: US$1.3 million), a reduction caused by
the departure of two board members. There was a currency
translation gain of US$0.4 million (H1 2020: translation loss of
US$3.0 million) was due to the strengthening of the Russian rouble
to the US dollar. Expenditure on exploration was US$0.4 million (H1
2020: US$210,000) as the Company remained focused on the completion
of the TEO. The exploration asset saw an exchange gain of US$0.4
million (H1 2019: exchange loss US$2.9 million) also due to the
strengthening of the Russian rouble to the US dollar.
Covid-19
Since the start of January 2020, Covid-19 has created
significant disruption to the global markets and economies,
including Russia. In order to keep safe its personnel, the Company
has put in place special measures to protect its workforce while at
the same time ensuring business continuity. Prior to the outbreak,
the Company had the facilities in place to allow remote working for
most members of staff. This capability has been enhanced to ensure
that the Company can continue to operate effectively over an
extended period of time without requiring regular access to
physical offices. The Company maintained close contact with its
contractors working on the Permanent Conditions TEO as they also
put in place procedures to work effectively over the period in
order to ensure that these TEO was completed and delivered.
As of the date of this report, Covid-19 has created a lot of
uncertainty and disruption in the financial markets. The Company
has not seen any negative impact of Covid-19 on its ability to
raise funds, having completed multiple equity placements throughout
2020.
Outlook
The Company's principal objective is to work towards the full
registration of its reserve, compilation of its operational design
and the conversion of the Russian based work for incorporation in a
western Bankable Feasibility Study ("BFS"). The BFS provides the
necessary technical, environmental and economic detail for
institutional investors to advance funding for construction and
production. The BFS is itself a considerable undertaking and the
Amur team has been working on the detailed planning and costing of
the BFS programme. This has required considerable interaction with
both Russian and international organisations qualified in compiling
both Russian and western BFS level work.
In conjunction with the development of the BFS work programme,
the Company has also been keeping discussions open with potential
offtake partners, funding sources and governmental infrastructure
support agencies. It is the Company's belief that the successful
completion of a binding offtake agreements will provide access to
institutional investors providing financing options for BFS
programme and any associated work. Downline metallurgical processes
are also being investigated to determine if battery ready sulphate
products can be generated. We envisage that this funding will be
principally through funding at the asset level and would be
sufficient to fund the BFS programme and sustain the Company's
activity through to the completion of the BFS.
On behalf of the Board of Directors, I would like to thank all
the staff, consultants and Russian agencies for their dedication
and hard work throughout this period in successfully delivering the
TEO for its subsequent use in the registration of reserves in
accordance with Russian Federation regulatory standards.
Mr. Robert W. Schafer
Non Executive Chairman
29 September 2021
AMUR MINERALS CORPORATION
consolidated STATEMENT OF FINANCIAL POSITION
AS AT 30 June 2021
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
30 June 2021 30 June 31 December
Note 2020 2020
Non-current assets
Exploration and evaluation
assets 5 24,364 24,413 23,542
Property, plant and equipment 266 734 452
Financial assets at fair value
through profit and loss 6,137 - 5,255
30,767 25,147 29,249
-------------- ------------ -------------
Current assets
Inventories 209 238 207
Other receivables 234 146 158
Cash and cash equivalents 1,846 831 2,790
------------ -------------
2,289 1,215 3,155
-------------- ------------ -------------
Total assets 33,056 26,362 32,404
-------------- ------------ -------------
Current liabilities
Trade and other payables 836 1,191 913
Rehabilitation provision - - -
836 1,191 913
-------------- ------------ -------------
Net current assets 1,453 24 2,242
-------------- ------------ -------------
Non-Current Liabilities
Rehabilitation provision 145 144 141
Total non-current liabilities 145 144 141
-------------- ------------ -------------
Net assets 32,075 25,027 31,350
============== ============ =============
Equity
Share capital 7 80,449 71,012 80,449
Share premium 4,278 4,748 4,278
Foreign currency translation
reserve (17,091) (15,902) ( (17,474)
Share options reserve 683 1,534 577
Warrant Reserve - 93 -
Accumulated deficit (36,244) (36,458) (36,480)
Total equity 32,075 25,027 31,350
============== ============ =============
Approved on behalf of the Board on 29 September 2021
Robin Young
The accompanying notes on pages 7 to 11 form an integral part of
the financial information
AMUR MINERALS CORPORATION
CONSOLIDATED STATEMENT of COMPREHENSIVE INCOME
FOR THE six monthsED 30 June 2021
(Amounts in thousands of US Dollars)
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
Note 2021 2020 2020
Administrative expenses (1,154) (1,297) (3,083)
Operating loss (1,154) (1,297) (3,083)
Finance income 327 - 205
Finance expense - (104) (104)
Fair value movements on derivative
financial instruments and loans - (109) -
Gain on revaluation of assets
held at fair value through profit
and loss 1,046 - 423
Loss on early redemption - - (109)
Foreign exchange 17 - -
Profit/(Loss) before tax 236 (1,510) (2,668)
Tax expense - - -
Profit/ (Loss) for the period
/ year attributable to owners
of the parent 236 (1,510) (2,668)
=========== ========= ============
Other Comprehensive (loss) / income:
Items that could be reclassified
to profit or loss
Exchange differences on translation
of foreign operations 383 (3,037) (4,123)
Total comprehensive (loss) / income
for the period / year attributable
to owners of the parent 619 (4,547) (6,791)
=========== ========= ============
(Loss) per share: basic & diluted 4 US 0.02 US (0.17) US (0.25)
(expressed in cents)
The accompanying notes on pages 7 to 11 form an integral part of
the financial information.
AMUR MINERALS CORPORATION
CONSOLIDATED STATEMENT OF cash flowS
FOR THE SIX MONTHSED 30 JUNE 2021
(Amounts in thousands of US Dollars)
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
2021 2020 2020
Cash flows used in operating
activities:
Payments to suppliers and employees (1,040) (655) (2,196)
Interest paid - - -
Net cash outflow from operating
activities (1,040) (655) (2,196)
---------- ---------- -------------
Cash flow used in investing activities:
Payments for exploration expenditure (428) (210) (564)
Loans granted - - (4,658)
Payment for property, plant and - - -
equipment
Interest received 326 - 43
Net cash used in investing activities (102) (210) (5,179)
---------- ---------- -------------
Cash flow from financing activities:
Cash received on issue of shares,
net of issue costs - 1,460 10,005
Issue of convertible loan (net
of issue costs) - - 607
Loans received - 595 -
Loans repaid - (720) -
Repayment of convertible loan - - (720)
Net cash generated from financing
activities - 1,335 9,892
---------- ---------- -------------
Net (decrease)/increase in cash
and cash equivalents (1,142) 470 2,517
Cash and cash equivalents at
beginning of period / year 2,790 398 398
Effect of foreign exchange rates 198 (37) (125)
Cash and cash equivalents at
end of period / year 1,846 831 2,790
========== ========== =============
The accompanying notes on pages 7 to 11 form an integral part of
the financial information.
AMUR MINERALS CORPORATION
CONSOLIDATED Statement of changes in equity
FOR THE SIX MONTHSED 30 JUNE 2021
(Amounts in thousands of US Dollars)
Foreign
currency Share
Share translation options Warrant Accumulated
Share capital premium reserve reserve Reserve deficit Total
------------- -------- --------------- --------------- --------------- --------------- -------
At 1 January
2021 80,449 4,278 (17,474) 577 - (36,480) 31,350
Profit of the
period - - - - - 236 236
Exchange
differences on
translation of
foreign
operations - - 383 - - - 383
Total
comprehensive
income for the
period - - 383 - - 236 619
Issue of share - - - - - - -
capital
Costs of issue - - - - - - -
Options granted - - 106 - - 106
At 30 June 2021
(unaudited) 80,449 4,278 (17,091) 683 - (36,244) 32,075
============= ======== =============== =============== =============== =============== =======
At 1 January
2020 69,510 4,790 (12,865) 1,136 - (34,948) 27,623
Loss of the
period - - - - - (1,510) (1,510)
Other
comprehensive
income for the
period - - (3,037) - - - (3,037)
------------- -------- --------------- --------------- --------------- --------------- -------
Total
comprehensive
income for the
period - - (3,037) - - (1,510) (4,547)
Issue of share
capital 1,502 - - - - - 1,502
Costs of issue - (42) - - - - (42)
Options granted - - - 398 - - 398
Warrants granted - - - - 93 - 93
At 30 June 2020
(unaudited) 71,012 4,748 (15,902) 1,534 93 (36,458) 25,027
============= ======== =============== =============== =============== =============== =======
At 1 January
2020 69,510 4,790 (13,351) 1,136 - (34,948) 27,137
Loss for the
year - - - - - (2,668) (2,668)
Exchange
differences on
translation of
foreign
operations - - (4,123) - - - (4,123)
Total
comprehensive
loss for the
period - - (4,123) - - (2,668) (6,791)
Issue of share
capital 10,063 (512) - - - - 9,551
Conversion of
warrants 876 - - - - - 876
Options charge
for the year - - - 577 - - 577
Options expired - - - (1,136) - 1,136 -
At 31 December
2020 (audited) 80,449 4,278 (17,474) 577 - (36,480) 31,350
============= ======== =============== =============== =============== =============== =======
The accompanying notes on pages 7 to 11 form an integral part of
the financial information.
1. Reporting Entity
Amur Minerals Corporation (the "Company" or the "Group") is a
company domiciled in the British Virgin Islands. The consolidated
interim financial information as at and for the six months ended 30
June 2021 comprise the results of the Company and its subsidiaries
(together referred to as the "Group").
The consolidated financial statements of the Group as at and for
the year ended 31 December 2020 are available upon request from the
Company's registered office at Kingston Chambers, P.O. Box 173,
Road Town, Tortola, British Virgin Islands or at
www.amurminerals.com.
2. BASIS OF PREPARATION
The financial information set out in this report is based on the
consolidated financial information of Amur Minerals Corporation and
its subsidiary companies. The financial information of the Group
for the 6 months ended 30 June 2021 was approved and authorised for
issue by the Board on 29 September 2021. The interim results have
not been audited. This financial information has been prepared in
accordance with the accounting policies that are expected to be
applied in the Report and Accounts of Amur Minerals Corporation for
the year ended 31 December 2021 and are consistent with the
recognition and measurement requirements of IFRS as adopted by the
European Union. The auditor's report on the Group accounts to 31
December 2020 whilst unqualified raised a material uncertainty
relating to going concern due to the lack of certainty over future
funding. The comparative information for the full year ended 31
December 2020 is not the Group's full annual accounts for that
period but has been derived from the annual financial statements
for that period.
The consolidated financial information incorporates the results
of Amur Minerals Corporation and its subsidiaries undertakings as
at 30 June 2021. The corresponding amounts are for the year ended
31 December 2020 and for the 6 month period ended 30 June 2020.
The Group financial information is presented in US Dollars
('US$') and values are rounded to the nearest thousand Dollars.
The same accounting policies, presentation and methods of
computation are followed in the interim consolidated financial
information as were applied in the Group's latest annual audited
financial statements except for those that relate to new standards
and interpretations effective for the first time for periods
beginning on (or after) 1 January 2021, and will be adopted in the
2021 annual financial statements.
A number of new standards, amendments and became effective on 1
January 2021 and have been adopted by the Group. None of these
standards have materially affected the Group.
3. GOING CONCERN
The Group operates as a natural resources exploration and
development group. To date, the Group has not earned significant
revenues and is considered to be in the exploration stage.
The Directors have reviewed the Group's cash flow forecast for
the period to 31 December 2022 and plan to continue advancing the
project in 2021 - 2022. Post 30 June 2021, the Company completed
the sale of Carlo Holdings Limited for cash consideration of US$6.1
million, which was received in full.
As the Group approaches bankable feasibility, an alternative
funding option will need to be secured in order to adequately fund
this step. The Directors are currently in negotiations with a
number of parties in respect of raising further funds. Whilst
progress is being made on a number of potential transactions which
would provide adequate funding to the Group, there are no binding
agreements in place. The Company was successful in completing three
equity placements in 2020 and while the Directors are confident of
raising additional funding should it be required, their ability to
do this is not completely within in their control.
Based on the current progress of the negotiations with potential
investors and providers of finance the Directors believe that the
necessary funds to provide adequate financing to continue with the
current work program on its Kun-Manie project will be raised as
required and accordingly they are confident that the Group will
continue as a going concern and have prepared the financial
statements on that basis.
The financial statements do not include the adjustments that
would result if the Group was not able to continue as a going
concern and, therefore, that it may be unable to realise its assets
and discharge its liabilities in the normal course of business.
4. PROFIT/(LOSS) PER SHARE
Basic and diluted profit/(loss) per share is calculated and set
out below. The effects of warrants and share options outstanding at
the period end are anti-dilutive as they will serve to reduce the
profit/(loss) per share. A total of 90.1 million of potential
ordinary shares have therefore been excluded from the following
calculations:
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 2021 30 June 2020 2020
Net profit/(loss) for the
period / year 236 (1,510) (2,688)
Weighted average number
of shares for the period/year 1,379,872,315 878,022,210 1,071,175,000
Basic profit/(loss) per
share (expressed in cents) US 0.02 US (0.17) US (0.25)
-------------- -------------- --------------
5. Exploration and evaluation assets
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 2021 30 June 2020 2020
At start of the period
/ year 23,542 26,713 26,713
Additions 428 557 1,154
Foreign exchange differences 394 (2,857) (4,325)
At end of the period /
year 24,364 24,413 23,542
=================== ============== =============
The Group did not recognise any impairment in respect of its
exploration and evaluation assets during the period (H1 2020: nil)
(2020: nil).
6. SHARE BASED PAYmENTS
Options:
No options were granted during the period ended 30 June 2021. In
the period ended 30 June 2020, 55,619,260 new options were granted
to Directors, management and Russian employees.
At 30 June 2021 the following options were outstanding at the
beginning and end of the period:
Outstanding at 1 January
2021 55,619,260
Granted -
Exercised -
Expired (20,309,630)
Vesting 7,500,000
-------------
Outstanding at 30 June
2021 42,809,630
=============
The fair value of the options is estimated at the grant date
using a Black-Scholes model, taking into account the terms and
conditions on which the options were granted. This uses inputs for
share price, exercise price, expected volatility, option life,
expected dividends and risk-free rate.
The share price is the price at which the shares can be sold in
an arm's length transaction between knowledgeable, willing parties
and is based on the mid-market price on the grant date. The
expected volatility is based on the historic performance of Amur
Minerals shares on the Alternative Investment Market of the London
Stock Exchange. The option life represents the period over which
the options granted are expected to be outstanding and is equal to
the contractual life of the options. The risk-free interest rate
used is equal to the yield available on the principal portion of US
Treasury Bills with a life similar to the expected term of the
options at the date of measurement.
The total charge arising from outstanding options for the period
was US$105,527 (H1 2020: US$398,000; December 2020:
US$484,546).
Warrants:
No warrants were granted during the period ended 30 June 2021.
In the period ended 30 June 2020, 13,000,000 new warrants were
granted to participants of the equity placing completed on 4
November 2019. In conjunction with the Loan Note Instrument entered
into by the Company on 13 March 2020, 52,447,552 new warrants were
granted and are treated as equity instruments. The loan was fully
repaid on 4 May 2020. On 25 August 2020, 4,105,495 warrants were
awarded to consultants.
At 30 June 2021 the following warrants were outstanding at the
beginning and end of the period:
Outstanding at 1 January
2021 42,022,550
Granted -
Exercised -
Expired -
Outstanding at 30 June
2021 42,022,550
===========
There was no charge arising from outstanding warrants for the
period (H1 2020: nil; December 2020: nil).
7. share Capital
Audited
Unaudited Unaudited 31 December
30 June 2021 30 June 2020 2020
--------------- --------------- --------------
Number of Shares (no
par value):
Authorised 2,000,000,000 2,000,000,000 2,000,000,000
=============== =============== ==============
Total issued 1,379,872,315 968,060,149 1,379,872,315
=============== =============== ==============
8. RELATED PARTIES
For the purposes of these financial statements, entities are
considered to be related if one party has the ability to control
the other party or exercise significant influence over the other
party in making financial or operational decisions as defined by
IAS 24 "Related Party Disclosures". In addition, other parties are
considered to be related if they are under common control. In
considering each possible related party relationship, attention is
directed to the substance of the relationship, not merely the legal
form.
Details of transactions between the Group and related parties
are disclosed below.
Compensation of Key Management Personnel
Key management personnel are considered to be the Directors and
senior management of the Group
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 2021 30 June 2020 2020
Salaries and fees 501 469 830
Share-based payments 89 398 434
501 867 1,264
============== ============== =============
9. EVENTS AFTER THE REPORTING DATE
On 5 July 2021, the Company sold its wholly owned subsidiary
Carlo Holdings Limited for a cash consideration of US$6,137,019
pursuant to a share sale agreement entered into on 3 July 2021 with
Hamilton Investments Pte. Ltd., a subsidiary of Britmar (Asia) Pte
Ltd.
On 20 August 2021, the Company announced that Oreall LLC
completed the Permanent Conditions Report ("TEO") on its far east
Russia Kun-Manie nickel copper sulphide project and it was
submitted for review by the Russian Government Commission for
Natural Resources Reserves.
10. INTERIM REPORT
Copies of this interim report for the six months ended 30 June
2021 will be available from the Company's website
www.amurminerals.com .
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals Corp. S.P. Angel Corporate Finance Blytheweigh
LLP
Robin Young CEO Richard Morrison Megan Ray
Adam Cowl Tim Blythe
+44 (0) 20 7138
+7(4212)755615 +44(0)20 3470 0470 3203
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END
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