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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Avocet Mining Plc | LSE:AVM | London | Ordinary Share | GB00BZBVR613 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 13.10 | 11.40 | 14.80 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAVM
RNS Number : 0358Q
Avocet Mining PLC
01 November 2012
Avocet Mining Unaudited Results for
the Quarter ended 30 September 2012
-- Operational improvements at Inata yield increase in mining volumes of 11% -- Gold production of 33,067 oz. (Q2 2012: 32,917 oz.) at cash costs US$937 per oz.
(Q2 2012: US$1,006 per oz.)
-- Net cash generated by operating activities lower at US$1.4 million (Q2 2012:
US$20.7 million) due to timing of supplier payments
-- EBITDA of US$6.3 million (Q2 2012: US$8.7 million), as gold inventory reduces by
US$5.6 million over the quarter
-- Cash of US$62.0 million, with external debt reduced to US$11.0 million -- Results from Inata metallurgical testwork received
-- Anticipated reduction in Inata Mineral Reserves at Inata makes expansion unlikely in the short term - engineering now focused on recovery enhancements at existing plant
-- Group total Mineral Resources increased 23% to 7.70 million oz.
KEY FINANCIAL METRICS
Quarter ended Quarter ended Quarter ended Quarter ended 30 September 30 September 30 June 30 June 2012 2011 2012 2011 Period Unaudited Unaudited Unaudited Unaudited ================================= ============== ============== ============== ============== Gold production (ounces) 33,067 33,256 32,917 39,423 ================================= ============== ============== ============== ============== Average realised gold price (US$/oz.) 1,506 1,316 1,439 1,161 ================================= ============== ============== ============== ============== Cash production costs (US$/oz.) 937 830 1,006 677 ================================= ============== ============== ============== ============== Profit/(loss) before tax (US$000) (323) (33,540) 2,458 14,862 ================================= ============== ============== ============== ============== Earnings per share (US cents per share) (0.46) (11.87) 0.81 6.32 ================================= ============== ============== ============== ============== EBITDA(2) (US$000) 6,281 14,952 8,679 16,600 ================================= ============== ============== ============== ============== Net cash generated by operating activities (US$000) 1,411 2,658 20,717 2,414 ================================= ============== ============== ============== ==============
[1] Key Financial Metrics are presented for continuing operations only, and represent results excluding the Group's former operations in South East Asia, which were sold in June 2011. Refer to note 2 of these interim financial statements for further information.
2 EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
David Cather, Chief Executive Officer, commented:
"Our main focus in the third quarter has been driving operational improvements at Inata. This has begun to bear fruit, with a noticeable increase in mining volumes in the quarter. Further operating efficiency gains in both mining and processing are expected to be achieved in the coming months.
Engineering cost studies on an expansion at Inata have progressed. The early indications from these studies, as well as the anticipated reduction in Mineral Reserves are informing our views on an optimal expansion strategy. Accordingly, our earlier ambition to expand production through the construction of a second processing plant appears unlikely in the near term. Instead our focus has turned to optimising the existing plant, while adding Mineral Reserves at Souma and elsewhere in the Bélahouro district."
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining Pelham Bell J.P. Morgan Arctic SEB Enskilda PLC Pottinger Cazenove Securities Financial Financial Lead Broker Financial Adviser & PR Consultants Adviser Market Maker & Market Maker ============== ================== ========================== ============ ================= David Cather, Daniel Thöle Michael Wentworth-Stanley Arne Wenger Fredrik Cappelen CEO Joanna Boon Neil Passmore Petter Mike Norris, Bakken FD Angela Parr, IR ============== ================== ========================== ============ ================= +44 20 7766 +44 20 7861 +44 20 7588 +47 2101 7676 3232 2828 3100 +47 2100 8500
NOTES TO EDITORS
Avocet Mining is a gold mining and exploration company listed on the London Stock Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The Company's principal activities are gold mining and exploration in West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The deposit at Inata currently comprises a Mineral Resource of 3.99 million ounces and a Mineral Reserve of 1.85 million ounces. The Inata Gold Mine poured its first gold in December 2009 and produced 167,000 ounces of gold in 2011 and is expected to produce 135,000 - 140,000 ounces of gold in 2012.
Other assets in Burkina Faso include eight exploration permits surrounding the Inata Gold Mine in the broader Bélahouro region. The most advanced of these projects are Souma, some 20 kilometres from the Inata Gold Mine, and Filio, adjacent to the mine licence area, where Mineral Resources of 0.56 million ounces and 0.14 million ounces respectively exist.
In Guinea, Avocet owns twelve exploration licences in the north east of the country. Mineral Resource development has been ongoing since 2005 and the project at Tri-K is the most advanced. Within the Tri-K project, Koulékoun has a Mineral Resource of 2.15 million ounces and Kodiéran of 0.87 million ounces.
CHIEF EXECUTIVE OFFICER'S REVIEW
We made some encouraging operational improvements at Inata during the third quarter, with our new management team working effectively with consultants Alexander Proudfoot. Mining operations, which underperformed earlier in the year due to a combination of poor equipment availability and sub-optimal operating practices, achieved an increase in average daily volumes of 11%. The challenge now is to achieve and exceed this level on a consistent basis into 2013.
The metallurgical testwork associated with the Inata expansion scoping study has yielded extensive results. This testwork involved the taking of 5,000 samples from across the ore body which were analysed for PRI (Preg Robbing Index), Quick Leach Test, sulphurs, carbon and a suite of other minerals. Analysis of this data has been used to generate block models of the various geological and metallurgical parameters across the ore body.
The metallurgical testwork identified two main factors affecting gold recoveries namely: preg-robbing by active carbonaceous material and fine grained gold locked up in sulphide ores. The testwork indicates that there is a significant proportion of the ore body (50 - 60%) which is regarded as having very low to no preg-robbing capacity, while less than 3% of the ore body is considered highly preg-robbing. The testwork also indicates that processing options identified would achieve acceptable recoveries for ore with low preg-robbing capacity, with only a minor drop in recoveries when treating the highly preg-robbing ore. Accordingly a number of potential processing options have been identified, developed using conventional techniques that can deliver acceptable recoveries across the ore body.
The Company is re-estimating its Mineral Reserves at Inata using current cost levels and the lower forecast metallurgical recoveries that have been estimated as a result of the metallurgical testwork. These factors are likely to negatively influence the estimate, with the result that Mineral Reserves are expected to decrease from the 1.85 million ounces previously announced. Although engineering work has not yet been completed, the anticipated reduction in Mineral Reserves indicates that the significant investment that would be required for a new processing plant is unlikely to provide a satisfactory return. Accordingly engineering studies are now focused on optimising operations at the current plant, including more modest capital expenditure..
The 2011/2012 drilling season was completed in the second quarter of 2012 and revised Mineral Resource estimates for operations in Burkina Faso and Guinea were recently announced. At Bélahouro, Burkina Faso, Mineral Resources increased by 17% to 4.69 million ounces, of which 3.99 million ounces are within the Inata mine licence area. Infill and step-out drilling is ongoing at Souma where a Mineral Resource update is anticipated in Q1 2013. The ongoing evaluation of Souma, that includes metallurgical testwork, has been prioritised with a view to submitting an application for a mining licence in 2013.
The Mineral Resources in Guinea also increased, growing 34% to 3.02 million ounces at Koulékoun and Kodiéran in the Tri-K region. Constructive discussions with the Guinean Government continued during the quarter and the Ministry of Mines and Geology has granted Avocet an extension to its Koulékoun exploration licence to the third quarter of 2013. A revised mining code is widely anticipated but not yet confirmed. We have commenced the environmental studies and have started the metallurgical testwork programme both of which will form part of the feasibility study, which the decision has been taken to progress.
On 19 September 2012 the second Indonesian civil case brought by PT Lebong Tandai (PTLT) against Avocet and other parties in April 2012 was dismissed by the South Jakarta District Court, on the grounds of lack of jurisdiction. PTLT has appealed the District Court's decision, as it did after the first case was similarly dismissed in 2011. The Company has no knowledge of when either appeal may be heard by the High Court of Indonesia.
OPERATIONAL REVIEW
Gold production and cash costs
2012 2011 ------------------------- --------- Q3 Q2 Q1 2012 YTD FY 2011 Ore mined (k tonnes) 559 610 578 1,747 2,494 Waste mined (k tonnes) 7,565 6,689 7,240 21,494 22,707 Total mined (k tonnes) 8,124 7,299 7,818 23,241 25,201 Ore processed (k tonnes) 643 651 608 1,902 2,471 Average head grade (g/t) 1.62 1.82 2.36 1.93 2.26 Process recovery rate 91% 86% 87% 88% 91% ------- ------- ======= --------- -------- Gold Produced (oz.) 33,067 32,917 38,296 104,280 166,744 Cash costs (US$/oz.) Q3 Q2 Q1 2012 YTD FY2011 Mining 374 402 332 367 217 Processing 279 332 283 297 244 Administration 167 145 122 144 139 Royalties 117 127 113 119 93 ------- ------- ======= --------- -------- 937 1,006 850 927 693
Gold production in the quarter was 33,067 ounces, in line with the previous quarter. This was ahead of expectations as gold in circuit was drawn down by 2,630 ounces.
Daily mining volumes improved by some 11% compared with Q2 2012, as a result of a programme of operating improvement initiatives implemented in conjunction with Alexander Proudfoot as well as the commissioning of additional rented equipment in September. These initiatives included revised haul cycles, operator training programmes, improved supervisor monitoring, loading optimisation and a detailed revision of standard operating practices. Total mining volumes of 8,124,000 tonnes averaged approximately 88,000 tonnes per day across the quarter as a whole, up from 80,000 per day in Q2 2012. By the quarter end, daily production in excess of 110,000 tonnes was achieved on a number of days. Although a programme of haul truck maintenance is planned for Q4 2012, efforts to achieve further volume improvements will continue in the quarter.
Plant throughput was in line with the previous quarter as plant availability remained good with only scheduled maintenance and minor outages. As expected, head grades were lower at 1.62 g/t Au during the quarter, down 11% compared with Q2 2012. However, recoveries of 91% were higher than the previous quarter, reflecting mining of predominantly oxide ore which leaches more easily.
Cash costs were US$937 per ounce in the quarter. Whilst cost savings were achieved on reagent consumption and operating efficiency improvements, overall cash costs reduced by lower maintenance activity and less grade control drilling, both of which are expected to reverse in Q4 2012. Included in cash costs were fees paid to Alexander Proudfoot, whose work at Inata will continue until Q1 2013. Full year production guidance is maintained at 135,000 - 140,000 ounces at a cash cost of US$1,000 to 1,050 per ounce.
Whilst the political situation in Northern Mali, which is to the north of the Inata mine, remains unstable Inata has not been affected by the ongoing unrest.
Exploration
With the advent of the rainy season, little drilling has been undertaken either in Burkina Faso or in Guinea during the third quarter. Instead, work focused on analysing the samples collected during the 2011/2012 field season, and modelling the results. This work culminated in the Mineral Resource increase of 23% to 7.70 million ounces announced on 25 October. The Company is re-estimating its Mineral Reserves at Inata using current cost levels and lower forecast metallurgical recoveries. As highlighted these factors are likely to negatively influence the Mineral Reserves estimate.
During the fourth quarter, exploration activities will focus on completing the drilling at Filio, where a maiden resource was recently announced, and developing the resources at Souma through step-out and infill drilling.
FINANCIAL REVIEW
Revenue in the quarter was US$50.1 million, reflecting sales of 33,298 ounces of gold at an average realised price of US$1,506 per ounce, (including 8,250 ounces into forward contracts at US$950 per ounce), compared to revenue of US$49.3 million in Q2 2012, representing 34,218 ounces at an average realised price of US$1,439 per ounce. At the quarter end Avocet's outstanding hedge was 189,750 ounces.
EBITDA for the quarter totalled US$6.3 million, compared with US$8.7 million in Q2 2012. Although cash costs were lower in the period, this was offset by adverse movements in both stockpile (as the mining schedule delivered less ore to the stockpile), and by gold inventory, which largely reflects the timing of gold pours, shipments and sales.
Negative working capital movements contributed to net cash from operating activities being US$1.4 million in the quarter, compared with US$20.7 million in Q2 2012. In particular, the quarter on quarter timing of supplier payments accounted for a decrease in cash flow of US$19.2 million, as the positive movement in Q2 of US$11.6 million was followed by a negative movement in Q3 of US$7.6 million. However, on a year to date basis, movement in creditors is US$1.5 million positive, as quarterly movements offset each other. During Q3, US$8.9 million was invested in capital expenditure, the bulk of which was on the second tailings facility at Inata, and only US$4.9 million on exploration.
At the end of the period, the cash balance stood at US$62.0 million, with debt reduced to US$11.0 million, leaving net cash at US$51.0 million, compared with US$63.4 million at the end of Q2 2012.
As noted in the Company's Interim Results announcement, in anticipation of Inata's existing project finance facility with Macquarie Bank being fully repaid by March 2013, discussions are in progress with various lenders, including Macquarie Bank, with a view to replacing the existing facility. A new financing facility would be used for standby and Inata development purposes. The amount of funding required for Inata development will depend on the outcome of the ongoing studies outlined above.
OUTLOOK
In view of our encouraging progress, we retain our guidance for 2012 and 2013, and believe that our efforts over the coming months will re-establish Inata as a strong cash generative operation. In the meantime, the receipt of the metallurgical testwork along with initial process flow sheet designs is enabling management and the Board to evaluate the optimal means by which to further develop Inata.
DAVID CATHER
Chief Executive Officer
CONDENSED CONSOLIDATED INCOME STATEMENT For the three months ended 30 September 2012 Three months ended 30 September Three months ended 30 2012 September 2011 Unaudited Unaudited Note Continuing Discontinued Continuing Discontinued operations operations(1) Total operations operations Total ============================ ===== ============ =============== ========= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 Revenue 3 50,146 - 50,146 42,413 - 42,413 Cost of sales 3 (45,689) - (45,689) (32,567) (939) (33,506) ============================ ===== ============ =============== ========= ============ ============= ========= Gross profit/(loss) 4,457 - 4,457 9,846 (939) 8,907 ============================ ===== ============ =============== ========= ============ ============= ========= Administrative expenses (3,630) - (3,630) (2,295) - (2,295) Share based payments (517) - (517) (387) - (387) ============================ ===== ============ =============== ========= ============ ============= ========= Profit/(loss) from operations 310 - 310 7,164 (939) 6,225 ============================ ===== ============ =============== ========= ============ ============= ========= Profit on disposal of investments 2 - - - - 2,427 2,427 Profit on disposal of subsidiaries 2 - - - - 12,995 12,995 Restructure of hedge 13 - - - (39,757) - (39,757) Finance items Exchange gains 76 - 76 24 - 24 Finance expense (720) - (720) (991) - (991) Finance income 11 - 11 20 - 20 Net finance items - discontinued operations - - - - (7) (7) (Loss)/profit before taxation (323) - (323) (33,540) 14,476 (19,064) ============================ ===== ============ =============== ========= ============ ============= ========= Analysed as: (Loss)/profit before taxation and exceptional items (323) - (323) 6,217 (946) 5,271 Exceptional items 13 - - - (39,757) 15,422 (24,335) ============================ ===== ============ =============== ========= ============ ============= ========= (Loss)/profit before taxation (323) - (323) (33,540) 14,476 (19,064) ============================ ===== ============ =============== ========= ============ ============= ========= Taxation (486) - (486) 7,323 - 7,323 (Loss)/profit for the period (809) - (809) (26,217) 14,476 (11,741) ============================ ===== ============ =============== ========= ============ ============= ========= Attributable to: Equity shareholders of the parent company (918) - (918) (23,635) 14,518 (9,117) Non-controlling interest 109 - 109 (2,582) (42) (2,624) ============================ ===== ============ =============== ========= ============ ============= ========= (809) - (809) (26,217) 14,476 (11,741) ============================ ===== ============ =============== ========= ============ ============= ========= Earnings per share - basic (cents per share) 4 (0.46) - (0.46) (11.87) 7.29 (4.58) - diluted (cents per share) 4 (0.46) - (0.46) (11.87) 7.17 (4.58) EBITDA(2) 6,281 - 6,281 14,952 (939) 14,013 ============================ ===== ============ =============== ========= ============ ============= =========
(1) During 2011, the Group disposed of all of its trading subsidiaries which were classified as discontinued
operations. All operations for 2012 are continuing. Refer to note 2 for further information.
(2) EBITDA represents earnings before finance items, taxation, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
CONDENSED CONSOLIDATED INCOME STATEMENT For the nine months ended 30 September 2012 Nine months ended 30 September Nine months ended 30 September 2012 2011 Unaudited Unaudited Note Continuing Discontinued Continuing Discontinued operations operations(1) Total operations operations Total =========================== ===== ============ =============== ========== ============ ============= ========== US$000 US$000 US$000 US$000 US$000 US$000 Revenue 3 159,657 - 159,657 142,929 67,236 210,165 Cost of sales 3 (124,430) - (124,430) (106,055) (51,101) (157,156) =========================== ===== ============ =============== ========== ============ ============= ========== Gross profit 35,227 - 35,227 36,874 16,135 53,009 =========================== ===== ============ =============== ========== ============ ============= ========== Administrative expenses (8,950) - (8,950) (7,101) - (7,101) Share based payments (1,547) - (1,547) (1,053) - (1,053) =========================== ===== ============ =============== ========== ============ ============= ========== Profit from operations 24,730 - 24,730 28,720 16,135 44,855 =========================== ===== ============ =============== ========== ============ ============= ========== Profit on disposal of investments 7,13 - - - 8,990 2,427 11,417 (Loss)/profit on disposal of subsidiaries 2,13 - (105) (105) - 85,802 85,802 Restructure of hedge 13 - - - (39,757) - (39,757) Finance items Exchange gains/(losses) 440 - 440 (58) - (58) Finance expense (2,321) - (2,321) (4,023) - (4,023) Finance income 125 - 125 20 - 20 Net finance items - discontinued operations - - - - (26) (26) Profit/(loss) before taxation 22,974 (105) 22,869 (6,108) 104,338 98,230 =========================== ===== ============ =============== ========== ============ ============= ========== Analysed as: Profit before taxation and exceptional items 22,974 - 22,974 24,659 16,109 40,768 Exceptional items 12 - (105) (105) (30,767) 88,229 57,462 =========================== ===== ============ =============== ========== ============ ============= ========== Profit/(loss) before taxation 22,974 (105) 22,869 (6,108) 104,338 98,230 =========================== ===== ============ =============== ========== ============ ============= ========== Taxation (7,959) - (7,959) 2,721 (2,723) (2) Profit/(loss) for the period 15,015 (105) 14,910 (3,387) 101,615 98,228 =========================== ===== ============ =============== ========== ============ ============= ========== Attributable to: Equity shareholders of the parent company 13,290 (105) 13,185 (2,160) 99,448 97,288 Non-controlling interest 1,725 - 1,725 (1,227) 2,167 940 =========================== ===== ============ =============== ========== ============ ============= ========== 15,015 (105) 14,910 (3,387) 101,615 98,228 =========================== ===== ============ =============== ========== ============ ============= ========== Earnings per share - basic (cents per share) 4 6.68 (0.05) 6.63 (1.09) 49.98 48.90 - diluted (cents per share) 4 6.64 (0.05) 6.59 (1.09) 49.07 48.00 EBITDA(2) 43,061 - 43,061 56,955 16,135 73,090 =========================== ===== ============ =============== ========== ============ ============= ==========
(1) During 2011, the Group disposed of all of its trading subsidiaries in South East Asia, which were classified as discontinued operations. All operations for 2012 are continuing. In Q1 2012 the Group completed the disposal of one of the remaining exploration assets in South East Asia. Refer to note 2 for further information.
(2) EBITDA represents earnings before finance items, taxation, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three months ended 30 September 2012 Three months ended 30 September Three months ended 30 2012 September 2011 Unaudited Unaudited ============================= ===== ===================================== ======================================= Continuing Discontinued Continuing Discontinued Note operations operations Total operations operations Total ============================= ===== ============ ============= ======== ============ ============= ========== US$000 US$000 US$000 US$000 US$000 US$000 (Loss)/profit for the period (809) - (809) (26,217) 14,476 (11,741) Revaluation of other financial assets 7 (172) - (172) - - - Total comprehensive income for the period (981) - (981) (26,217) 14,476 (11,741) Attributable to: Equity holders of the parent company (1,090) - (1,090) (23,635) 14,518 (9,117) Non-controlling interest 109 - 109 (2,582) (42) (2,624) ============================= ===== ============ ============= ======== ============ ============= ========== (981) - (981) (26,217) 14,476 (11,741) ============================= ===== ============ ============= ======== ============ ============= ========== CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the nine months ended 30 September 2012 Nine months ended 30 September Nine months ended 30 September 2012 2011 Unaudited Unaudited ============================= ===== ===================================== ======================================= Continuing Discontinued Continuing Discontinued Note operations operations Total operations operations Total ============================= ===== ============ ============= ======== ============ ============= ========== US$000 US$000 US$000 US$000 US$000 US$000 Profit/(loss) for the period 15,015 (105) 14,910 (3,387) 101,615 98,228 Revaluation of other financial assets 7 (776) - (776) (2,903) - (2,903) Disposal of other financial assets - - - (9,725) - (9,725) Reclassification of foreign exchange translation reserve on disposal of subsidiaries 2 - - - (627) - (627) ============================= ===== ============ ============= ======== ============ ============= ========== Total comprehensive income for the period 14,239 (105) 14,134 (16,642) 101,615 84,973 Attributable to: Equity holders of the parent company 12,514 (105) 12,409 (15,415) 99,448 84,033 Non-controlling interest 1,725 - 1,725 (1,227) 2,167 940 ============================= ===== ============ ============= ======== ============ ============= ========== 14,239 (105) 14,134 (16,642) 101,615 84,973 ============================= ===== ============ ============= ======== ============ ============= ========== CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 September 2012 30 September 31 December 30 September 2012 2011 2011 Note Unaudited Audited Unaudited ===================================== ===== ============= ============ ============= US$000 US$000 US$000 Non-current assets Intangible assets 5 50,655 42,390 32,543 Property, plant and equipment 6 270,856 247,954 252,326 Other financial assets 7 1,052 1,828 2,313 Deferred tax assets - - 1,459 ===================================== ===== ============= ============ ============= 322,563 292,172 288,641 Current assets Inventories 8 52,820 40,515 40,650 Trade and other receivables 9 27,158 28,529 22,689 Cash and cash equivalents 10 62,043 105,236 120,373 ===================================== ===== ============= ============ ============= 142,021 174,280 183,712 Assets of disposal group classified as held for sale 2,3 - 2,085 1,935 Current liabilities Trade and other payables 29,545 25,544 45,767 Other financial liabilities 11 11,704 24,711 24,000 ===================================== ===== ============= ============ ============= 41,249 50,255 69,767 Non-current liabilities Other financial liabilities 11 2,508 8,018 11,000 Deferred tax liabilities 22,525 14,566 6,007 Other liabilities 5,143 5,143 3,737 ===================================== ===== ============= ============ ============= 30,176 27,727 20,744 Net assets 393,159 390,555 383,777 ===================================== ===== ============= ============ ============= Equity Issued share capital 16,247 16,247 16,247 Share premium 149,915 149,915 149,915 Other reserves 15,411 15,273 15,614 Retained earnings 208,870 208,129 201,772 Total equity attributable to the parent 390,443 389,564 383,548 Non-controlling interest 2,716 991 229 ===================================== ===== ============= ============ ============= Total equity 393,159 390,555 383,777 ===================================== ===== ============= ============ =============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Nine months ended 30 September 2012 ===================================================================================================== Total attributable Share Share Other Retained to the Non-controlling Total capital premium reserves earnings parent interest equity =============== ======== ======== ========= ========= ============= ================ ========= US$000 US$000 US$000 US$000 US$000 US$000 US$000 At 31 December 2011 (Audited) 16,247 149,915 15,273 208,129 389,564 991 390,555 Profit for the period - - 13,185 13,185 1,725 14,910 Revaluation of other financial assets - - (776) - (776) - (776) Total comprehensive income for the period - - (776) 13,185 12,409 1,725 14,134 =============== ======== ======== ========= ========= ============= ================ ========= Share based payments - - - 1,942 1,942 - 1,942 Release of treasury and own shares - - 914 (865) 49 - 49 Exercise of share options - - - (16) (16) - (16) Final dividend - - - (13,505) (13,505) - (13,505) =============== ======== ======== ========= ========= ============= ================ ========= At 30 September 2012 (Unaudited) 16,247 149,915 15,411 208,870 390,443 2,716 393,159 =============== ======== ======== ========= ========= ============= ================ =========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Nine months ended 30 September 2011 ==================================================================================================================== Total attributable Share Share Other Retained to the parent Non-controlling Total capital premium reserves earnings interest equity =================== ========== ========= ========== ========== =================== ================ ========= US$000 US$000 US$000 US$000 US$000 US$000 US$000 At 31 December 2010 (Audited) 16,086 144,571 30,632 118,606 309,895 9,344 319,239 Profit for the period - - - 97,288 97,288 940 98,228 Revaluation of other financial assets - - (2,903) - (2,903) - (2,903) Disposal of other financial assets - - (9,725) - (9,725) - (9,725) ==================== ========= ========= ========== ========== =================== ================ ========= Reclassification of foreign exchange translation reserve on disposal of subsidiaries - - (627) - (627) - (627) ==================== ========= ========= ========== ========== =================== ================ ========= Total comprehensive income for the period - - (13,255) 97,288 84,033 940 84,973 ==================== ========= ========= ========== ========== =================== ================ ========= Share based payments - - - 1,001 1,001 - 1,001 Interim dividend - - - (6,814) (6,814) - (6,814) Issue of shares - exercise of share options 35 - - - 35 - 35 Issue of shares - bonuses 75 3,177 - (3,200) 52 - 52 Issue of shares into EBT 51 2,167 (2,218) - - - - Purchase of treasury shares - - (2,910) - (2,910) - (2,910) ==================== ========= ========= ========== ========== =================== ================ ========= Release of EBT and treasury shares - - 1,373 (487) 886 - 886 ========= ========= ========== ========== =================== ================ ========= Net exercise of share options settled in cash - - - (2,630) (2,630) - (2,630) ==================== ========= ========= ========== ---------- =================== ================ ========= Non-controlling interest share of dividend from subsidiary - - - - - (2,000) (2,000) ==================== ========= ========= ========== ========== =================== ================ ========= Disposal of subsidiaries - - - - - (8,055) (8,055) ==================== ========= ========= ========== ========== =================== ================ ========= Transfer acquisition reserve - - 1,992 (1,992) - - - ==================== ========= ========= ========== ========== =================== ================ ========= At 30 September 2011 (Unaudited) 16,247 149,915 15,614 201,772 383,548 229 383,777 ==================== ========= ========= ========== ========== =================== ================ ========= CONDENSED CONSOLIDATED CASH FLOW STATEMENT Three months ended 30 September Three months ended 30 2012 September 2011 Unaudited Unaudited Continuing Discontinued Continuing Discontinued Note operations operations Total operations operations Total ============================== ===== ============ ============= ========= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 Cash flows from operating activities (Loss)/profit for the period (809) - (809) (26,217) 14,476 (11,741) Adjusted for: Depreciation of non-current assets 3 5,971 - 5,971 7,788 - 7,788 Share based payments 517 - 517 386 - 386 Taxation in the income statement 486 - 486 (7,323) - (7,323) Non-operating items in the income statement 12 1,796 - 1,796 41,054 (15,423) 25,631 ============================== ===== ============ ============= ========= ============ ============= ========= 7,961 - 7,961 15,688 (947) 14,741 Movements in working capital Increase in inventory (111) - (111) (12,783) - (12,783) Decrease in trade and other receivables 1,396 - 1,396 4,481 529 5,010 Decrease in trade and other payables (7,596) - (7,596) (4,198) (1,008) (5,206) ============================== ===== ============ ============= ========= ============ ============= ========= Net cash generated by operations 1,650 - 1,650 3,188 (1,426) 1,762 Interest received - - - 20 - 20 Interest paid (239) - (239) (550) - (550) Net cash generated by operating activities 1,411 - 1,411 2,658 (1,426) 1,232 Cash flows from investing activities Payments for property, plant and equipment 3 (8,876) - (8,876) (18,586) 3 (18,583) Exploration and evaluation expenses 3,5 (4,871) - (4,871) (2,796) - (2,796) Disposal of discontinued operation, net of cash disposed of 2 - - - 18,856 - 18,856 Net cash (used in)/generated by investing activities (13,747) - (13,747) (2,526) 3 (2,523) ============================== ===== ============ ============= ========= ============ ============= ========= Cash flows from financing activities Restructure of hedge - - - (39,757) - (39,757) Settlement of share options in cash (14) - (14) (2,471) - (2,471) Purchase of treasury shares - - - (2,910) - (2,910) Loans repaid 11 (6,000) - (6,000) (6,000) - (6,000) Dividend - - - (6,505) - (6,505) Payments in respect of finance leases (63) - (63) - - - Net cash used in financing activities (6,077) - (6,077) (57,643) - (57,643) ============================== ===== ============ ============= ========= ============ ============= ========= Net cash movement (18,413) - (18,413) (57,511) (1,423) (58,934) Exchange gains/(losses) 76 - 76 23 (9) 14 Transfer of cash not held for sale 2,3 - - - (1,432) 1,432 - Total decrease in cash and cash equivalents (18,337) - (18,337) (58,920) - (58,920) ============================== ===== ============ ============= ========= ============ ============= ========= Cash and cash equivalents at start of the period 80,380 - 80,380 179,293 - 179,293 ============================== ===== ============ ============= ========= ============ ============= ========= Cash and cash equivalents at end of period 62,043 - 62,043 120,373 - 120,373 ============================== ===== ============ ============= ========= ============ ============= ========= CONDENSED CONSOLIDATED CASH FLOW STATEMENT Nine months ended 30 September Nine months ended 30 September 2012 2011 Unaudited Unaudited Continuing Discontinued Continuing Discontinued Note operations operations Total operations operations Total =============================== ===== ============ ============= ========= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 Cash flows from operating activities Profit/(loss) for the period 15,015 (105) 14,910 (3,387) 101,615 98,228 Adjusted for: Depreciation of non-current assets 6 18,331 - 18,331 28,235 - 28,235 Share based payments 1,547 - 1,547 1,053 - 1,053 Provisions - - - - 574 574 Taxation in the income statement 7,959 - 7,959 (2,721) 2,723 2 Non-operating items in the income statement 12 3,746 105 3,851 35,066 (88,404) (53,338) =============================== ===== ============ ============= ========= ============ ============= ========= 46,598 - 46,598 58,246 16,508 74,754 Movements in working capital (Increase)/decrease in inventory (12,305) - (12,305) (20,270) 341 (19,929) Decrease/(increase) in trade and other receivables 1,055 - 1,055 (6,102) (745) (6,847) Increase/(decrease) in trade and other payables 1,460 - 1,460 2,477 (1,256) 1,221 =============================== ===== ============ ============= ========= ============ ============= ========= Net cash generated by operations 36,808 - 36,808 34,351 14,848 49,199 Interest received 138 - 138 20 17 37 Interest paid (966) - (966) (2,494) - (2,494) Income tax paid - - - (865) (3,679) (4,544) =============================== ===== ============ ============= ========= ============ ============= ========= Net cash generated by operating activities 35,980 - 35,980 31,012 11,186 42,198 Cash flows from investing activities Payments for property, plant and equipment 6 (22,592) - (22,592) (40,582) (881) (41,463) Deferred consideration paid - - - - (1,330) (1,330) Exploration and evaluation expenses 3,5 (26,907) - (26,907) (22,027) (2,995) (25,022) Rehabilitation costs - - - - (393) (393) Disposal of discontinued operation, net of cash disposed of 2 1,980 - 1,980 177,007 - 177,007 Net cash received from disposal of other investments 7 - - - 16,501 - 16,501 =============================== ===== ============ ============= ========= ============ ============= ========= Net cash (used in)/generated by investing activities (47,519) - (47,519) 130,899 (5,599) 125,300 =============================== ===== ============ ============= ========= ============ ============= ========= Cash flows from financing activities Proceeds from issue of equity shares - - - 35 - 35 Restructure of hedge - - - (39,757) - (39,757) Settlement of share options in cash (155) - (155) (2,471) - (2,471) Purchase of treasury shares - - - (2,910) - (2,910) Loans repaid 11 (18,000) - (18,000) (43,000) - (43,000) Dividend (13,166) - (13,166) (6,505) - (6,505) Payments in respect of finance leases (434) - (434) - - - Non-controlling interest share of dividend from subsidiary - - - - (2,000) (2,000) =============================== ===== ============ ============= ========= ============ ============= ========= Net cash used in financing activities (31,755) - (31,755) (94,608) (2,000) (96,608) =============================== ===== ============ ============= ========= ============ ============= ========= Net cash movement (43,294) - (43,294) 67,303 3,587 70,890 Exchange gains/(losses) 101 - 101 206 (246) (40) Transfer of cash not held for sale 2,3 - - - 3,341 (3,341) - Total (decrease)/increase in cash and cash equivalents (43,193) - (43,193) 70,850 - 70,850 =============================== ===== ============ ============= ========= ============ ============= ========= Cash and cash equivalents at start of the period 105,236 - 105,236 49,523 - 49,523 =============================== ===== ============ ============= ========= ============ ============= ========= Cash and cash equivalents at end of period 62,043 - 62,043 120,373 - 120,373 =============================== ===== ============ ============= ========= ============ ============= =========
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The condensed consolidated interim financial statements, which are unaudited, have been prepared in accordance with the requirements of International Accounting Standard 34 as adopted for use in the European Union. This condensed interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this condensed report is to be read in conjunction with the Annual Report for the year ended 31 December 2011, which has been prepared in accordance with IFRS as adopted by the European Union, and any public announcements made by the Group during the interim reporting period.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The unaudited condensed financial statements for the three and nine months ended 30 September 2012 have been drawn up using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ending 31 December 2012, which are not expected to be significantly different to those set out in note 1 to the Group's audited financial statements for the year ended 31 December 2011.
The Company's statutory financial statements for the year ended 31 December 2011 are available on the Company's website www.avocetmining.com. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.
After review of the Group's operations, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.
2. Disposal group classified as held for sale and discontinued operations
On 24 June 2011, Avocet completed the sale of its main South East Asian assets, namely its 100% interest in the Penjom gold mine in Malaysia and its 80% interest in PT Avocet Bolaang Mongondow (PT ABM), which owned the North Lanut mine and Bakan project in North Sulawesi, Indonesia, for proceeds of US$170 million. In the third quarter of 2011, Avocet announced that further sales had been concluded, namely PT Avocet Mining Services, Avocet Mining (Malaysia) OHQ Sdn. Bhd., its 75% interest in PT Gorontalo Sejahtera Mining, and its 60% interest in PT Arafura Surya Alam. The combined gross proceeds for the disposals completed in the third quarter of 2011 were US$27 million. All of the sales completed in 2011 were originally announced on 24 December 2010.
In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, all of the assets and liabilities of the Indonesian and Malaysian operations, apart from cash, were treated as a disposal group from the date of the announcement of the sale on 24 December 2010, and were disclosed separately in the statement of financial position at 31 December 2010 and 31 March 2011, and the remaining unsold entities were disclosed separately at 30 June 2011, 30 September 2011, and 31 December 2011. As the transaction was on a cash free debt free basis, the cash held by entities held for sale was classified as continuing operations rather than discontinued operations. Prior to the reclassification, management reviewed the carrying values and recognition of assets and liabilities respectively, and no adjustments were required to measure assets and liabilities at the lower of carrying value or fair value less costs to sell. Since 24 December 2010, the date on which the criteria for being held for sale were met, no depreciation was charged in the Group financial statements for the Malaysian and Indonesian assets, in accordance with IFRS.
In 2011, Avocet completed the sale of PT Arafura Mandiri Semangat (PT Arafura) and PT Aura Celebes Mandiri (PT ACM) to Reliance Resources Limited, a company owned by Golden Peaks Resources Limited (Golden Peaks). Consideration was in the form of 7.9 million Golden Peaks shares, which are classed as available for sale financial assets and are recognised at fair value at the reporting date (note 7). Golden Peaks announced that it had changed its name to Reliance Resources in January 2012. Reliance Resources is listed on the Toronto Stock Exchange. PT AMS and PT ACM held non-core exploration projects in Indonesia.
The results of the disposal group are presented separately in the comparative consolidated income statement and the segmental analysis, as required by IFRS.
The profit on disposal of the entities sold during 2011 is presented in full in the annual report for the year ended 31 December 2011.
Completion of one of the last two exploration assets occurred on 16 February 2012 for proceeds of US$2.0 million, resulting in a loss of US$0.1 million. There are no remaining assets or liabilities recognised in the Group statement of financial position in respect of the last remaining South East Asian exploration company, which the Company no longer expects to sell.
3. Segmental reporting
IFRS 8 requires the disclosure of certain information in respect of reportable operating segments. One of the criteria for determining reportable operating segments is the level at which information is regularly reviewed by the Chief Operating Decision Maker (CODM) for the purposes of making economic decisions. In the prior year, this segmental information was presented for the UK and West Africa as continuing operations, and Malaysia and Indonesia as discontinued operations. The disposal of Avocet's assets in South East Asia enabled the strategic refocus of the Group, with the Inata operating mine and exploration projects in West Africa being the core focus. To reflect this change, management has reassessed the segments which should be reported under IFRS 8. In this report, operating segments for continuing operations are determined as the UK, West Africa mining operations (which includes exploration activity within the Inata mine licence area), and West Africa exploration (which includes exploration projects in Burkina Faso, Guinea and Mali). Exploration projects are aggregated into the single reportable segment because the projects are managed by a single operating division and reported to the CODM on this basis. Discontinued operations for 2012 represent the disposal of one of the remaining assets in South East Asia that was subject to the agreement with J&Partners L.P. (note 2). Comparative periods have been represented on this basis to allow for a consistent comparison.
3. Segmental Reporting West Africa Continuing For the three months ended mining West Africa operations Discontinued 30 September 2012 UK operations exploration total operations Total ====================================== ======== ============ ============= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 INCOME STATEMENT Revenue - 50,146 - 50,146 - 50,146 ====================================== ======== ============ ============= ============ ============= ========= Cost of Sales 718 (45,308) (1,099) (45,689) - (45,689) ====================================== ======== ============ ============= ============ ============= ========= Cash production costs: - mining - (12,355) - (12,355) - (12,355) - processing - (9,219) - (9,219) - (9,219) - overheads - (5,521) - (5,521) - (5,521) - royalties - (3,877) - (3,877) - (3,877) ====================================== ======== ============ ============= ============ ============= ========= - (30,972) - (30,972) - (30,972) Changes in inventory - (5,662) - (5,662) - (5,662) Expensed exploration and other cost of sales (a) 751 (2,736) (1,099) (3,084) - (3,084) Depreciation and amortisation (b) (33) (5,938) - (5,971) - (5,971) =============================== ===== ======== ============ ============= ============ ============= ========= Gross profit/(loss) 718 4,838 (1,099) 4,457 - 4,457 Administrative expenses and share based payments (4,147) - - (4,147) - (4,147) ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit from operations (3,429) 4,838 (1,099) 310 - 310 Net finance items 4 (641) 4 (633) - (633) ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit before taxation (3,425) 4,197 (1,095) (323) - (323) Taxation - (486) - (486) - (486) ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit for the period (3,425) 3,711 (1,095) (809) - (809) ====================================== ======== ============ ============= ============ ============= ========= Attributable to: Equity shareholders of parent company (3,425) 3,602 (1,095) (918) - (918) ====================================== ======== ============ ============= ============ ============= ========= Non-controlling interest - 109 - 109 - 109 (Loss)/profit for the period (3,425) 3,711 (1,095) (809) - (809) ====================================== ======== ============ ============= ============ ============= ========= EBITDA (c) (3,396) 10,776 (1,099) 6,281 - 6,281 =============================== ===== ======== ============ ============= ============ ============= =========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued) West Africa Continuing At 30 September mining West Africa operations Discontinued 2012 UK operations exploration total operations Total ============================= ===== ========= ============ ============= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 STATEMENT OF FINANCIAL POSITION Non-current assets 1,616 271,548 49,399 322,563 - 322,563 Inventories - 52,426 394 52,820 - 52,820 Trade and other receivables 528 22,481 4,149 27,158 - 27,158 Cash and cash equivalents 13,587 48,140 316 62,043 - 62,043 Total assets 15,731 394,595 54,258 464,584 - 464,584 ==================================== ========= ============ ============= ============ ============= ========= Current liabilities (3,085) (35,070) (3,094) (41,249) - (41,249) Non-current liabilities (430) (29,746) - (30,176) - (30,176) ==================================== ========= ============ ============= ============ ============= ========= Total liabilities (3,515) (64,816) (3,094) (71,425) - (71,425) ==================================== ========= ============ ============= ============ ============= ========= Net assets 12,216 329,779 51,164 393,159 - 393,159 ==================================== ========= ============ ============= ============ ============= ========= For the three months West Africa Continuing ended 30 September mining West Africa operations Discontinued 2012 UK operations exploration total operations Total)) ============================= ===== ========= ============ ============= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 CASH FLOW STATEMENT (Loss)/profit for the period (3,425) 3,711 (1,095) (809) - (809) Adjustments for non-cash and non-operating items (d) 546 8,414 (190) 8,770 - 8,770 Movements in working capital (677) (2,608) (3,026) (6,311) - (6,311) ==================================== ========= ============ ============= ============ ============= ========= Net cash (used in)/ generated by operations (3,556) 9,517 (4,311) 1,650 - 1,650 Net interest paid (4) (235) - (239) - (239) Purchase of property, plant and equipment (5) (8,784) (87) (8,876) - (8,876) Loans repaid - (6,000) - (6,000) - (6,000) Deferred exploration expenditure - - (4,871) (4,871) - (4,871) Other cash movements (e) (25,867) 17,058 8,808 (1) - (1) ============================= ===== ========= ============ ============= ============ ============= ========= Total (decrease)/ increase in cash and cash equivalents (29,432) 11,556 (461) (18,337) - (18,337) ==================================== ========= ============ ============= ============ ============= =========
(d) Includes depreciation and amortisation, share based payments, taxation in the income statement, and other non-operating items in the income statement;
(e) Other cash movements include cash flows from financing activities, intergroup transfers; and exchange gains or losses.
3. Segmental Reporting (continued) West Africa Continuing For the three months ended mining West Africa operations Discontinued 30 September 2011 UK operations exploration total operations Total ====================================== ======== ============ ============= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 INCOME STATEMENT Revenue - 42,413 - 42,413 - 42,413 ====================================== ======== ============ ============= ============ ============= ========= Cost of Sales 572 (32,093) (1,046) (32,567) (939) (33,506) ====================================== ======== ============ ============= ============ ============= ========= Cash production costs: - mining - (8,476) - (8,476) - (8,476) - processing - (10,017) - (10,017) - (10,017) - overheads - (6,063) - (6,063) - (6,063) - royalties - (3,040) - (3,040) - (3,040) ====================================== ======== ============ ============= ============ ============= ========= - (27,596) - (27,596) - (27,596) Changes in inventory - 4,902 - 4,902 - 4,902 Expensed exploration and other cost of sales (a) 605 (1,644) (1,046) (2,085) (939) (3,024) Depreciation and amortisation (b) (33) (7,755) - (7,788) - (7,788) =============================== ===== ======== ============ ============= ============ ============= ========= Gross profit/(loss) 572 10,320 (1,046) 9,846 (939) 8,907 Administrative expenses and share based payments (2,682) - - (2,682) - (2,682) ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit from operations (2,110) 10,320 (1,046) 7,164 (939) 6,225 Profit on disposal of subsidiaries and investments - - - - 15,422 15,422 -------------------------------------- -------- ------------ ------------- ------------ ------------- --------- Restructure of hedge - (39,757) - (39,757) - (39,757) ====================================== ======== ============ ============= ============ ============= ========= Net finance items 37 (984) - (947) (7) (954) ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit before taxation (2,073) (30,421) (1,046) (33,540) 14,476 (19,064) ====================================== ======== ============ ============= ============ ============= ========= Analysed as: ------------------------------- ----- -------- ------------ ------------- ------------ ------------- --------- (Loss)/profit before tax & exceptional items (2,073) 9,336 (1,046) 6,217 (946) 5,271 -------------------------------------- -------- ------------ ------------- ------------ ------------- --------- Exceptional items (39,757) - (39,757) 15,422 (24,335) ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit before taxation (2,073) (30,421) (1,046) (33,540) 14,476 (19,064) ====================================== ======== ============ ============= ============ ============= ========= Taxation - 7,323 - 7,323 - 7,323 ====================================== ======== ============ ============= ============ ============= ========= (Loss)/profit for the period (2,073) (23,098) (1,046) (26,217) 14,476 (11,741) ====================================== ======== ============ ============= ============ ============= ========= Attributable to: Equity shareholders of parent company (2,073) (20,516) (1,046) (23,635) 14,518 (9,117) -------------------------------------- -------- ------------ ------------- ------------ ------------- --------- Non-controlling interest - (2,582) - (2,582) (42) (2,624) (Loss)/profit for the period (2,073) (23,098) (1,046) (26,217) 14,476 (11,741) ====================================== ======== ============ ============= ============ ============= ========= EBITDA (c) (2,077) 18,075 (1,046) 14,952 (939) 14,013 =============================== ===== ======== ============ ============= ============ ============= =========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued) West Africa Continuing mining West Africa operations Discontinued At 30 September 2011 UK operations exploration total operations Total ============================== ===== ========= ============ ============= ============ ============= ========= US$000 US$000 US$000 US$000 US$000 US$000 STATEMENT OF FINANCIAL POSITION Non-current assets 3,926 265,527 19,188 288,641 - 288,641 Inventories - 40,650 - 40,650 - 40,650 Trade and other receivables 3,101 15,357 4,231 22,689 - 22,689 Assets held for cash - - - - 1,935 1,935 Cash and cash equivalents 100,490 19,539 344 120,373 - 120,373 Total assets 107,517 341,073 23,763 472,353 1,935 474,288 ===================================== ========= ============ ============= ============ ============= ========= Current liabilities (15,650) (52,724) (1,393) (69,767) - (69,767) Non-current liabilities (430) (20,314) - (20,744) - (20,744) Total liabilities (16,080) (73,038) (1,393) (90,511) - (90,511) Net assets 91,437 268,035 22,370 381,842 1,935 383,777 For the three months West Africa Continuing ended 30 September mining West Africa operations Discontinued 2011 UK operations exploration total operations Total US$000 US$000 US$000 US$000 US$000 US$000 CASH FLOW STATEMENT (Loss)/profit for the period (2,073) (23,098) (1,046) (26,217) 14,476 (11,741) Adjustments for non-cash and non-operating items (d) 379 41,423 103 41,905 (15,423) 26,482 Movements in working capital (508) (9,181) (2,811) (12,500) (479) (12,979) ========= ============ ============= ============ ============= ========= Net cash (used in)/ generated by operations (2,202) 9,144 (3,754) 3,188 (1,426) 1,762 Net interest (paid)/received 20 (550) - (530) - (530) Purchase of property, plant and equipment - (18,586) - (18,586) 3 (18,583) Restructure of hedge (39,757) - - (39,757) - (39,757) Loans repaid - (6,000) - (6,000) - (6,000) Deferred exploration expenditure - (809) (1,987) (2,796) - (2,796) Dividend (6,505) - - (6,505) - (6,505) Net proceeds from disposal of discontinued operations 18,856 - - 18,856 - 18,856 Other cash movements (e) (27,511) 16,700 5,453 (5,358) (9) (5,367) ----- Reclassification of cash not held for sale (f) (1,432) - - (1,432) 1,432 - ========= ============ ============= ============ ============= ========= Total (decrease)/increase in cash and cash equivalents (58,531) (101) (288) (58,920) - (58,920) ========= ============ ============= ============ ============= =========
(d) Includes depreciation and amortisation, share based payments, movement in provisions, taxation in the income statement, and other non-operating items in the income statement;
(e) Other cash movements include cash flows in respect of the sale of subsidiaries, deferred consideration paid, cash flows from financing activities, and exchange gains or losses;
(f) The sale of subsidiaries in South East Asia is for a debt-free cash-free consideration. Therefore, cash held in remaining Malaysian and Indonesian subsidiaries at 30 June has been excluded from held for sales assets, and reported as Group cash in the consolidated statement of financial position.
3. Segmental Reporting (continued) West Africa Continuing For the nine months ended mining West Africa operations Discontinued 30 September 2012 UK operations exploration total operations Total ============ ========== US$000 US$000 US$000 US$000 US$000 US$000 INCOME STATEMENT Revenue - 159,657 - 159,657 - 159,657 ============ ============ ============ ========== Cost of Sales 2,576 (122,823) (4,183) (124,430) - (124,430) ============ ============ ============ ========== Cash production costs: - mining - (38,287) - (38,287) - (38,287) - processing - (30,960) - (30,960) - (30,960) - overheads - (14,995) - (14,995) - (14,995) - royalties - (12,398) - (12,398) - (12,398) ============ ============ ============ ========== - (96,640) - (96,640) - (96,640) Changes in inventory - (596) - (596) - (596) Expensed exploration and other cost of sales (a) 2,675 (7,355) (4,183) (8,863) - (8,863) Depreciation and amortisation (b) (99) (18,232) - (18,331) - (18,331) ===== ============ ============ ============ ========== Gross profit/(loss) 2,576 36,834 (4,183) 35,227 - 35,227 Administrative expenses and share based payments (10,497) - - (10,497) - (10,497) (Loss)/profit from operations (7,921) 36,834 (4,183) 24,730 - 24,730 Loss on disposal of subsidiaries - - - - (105) (105) Net finance items 433 (2,208) 19 (1,756) - (1,756) ============ ============ ============ ========== (Loss)/profit before taxation (7,488) 34,626 (4,164) 22,974 (105) 22,869 Taxation - (7,959) - (7,959) - (7,959) ============ ========== (Loss)/profit for the period (7,488) 26,667 (4,164) 15,015 (105) 14,910 ============ ========== Attributable to: Equity shareholders of parent company (7,488) 24,942 (4,164) 13,290 (105) 13,185 Non-controlling interest - 1,725 - 1,725 - 1,725 ============ ============ ============ ========== (Loss)/profit for the period (7,488) 26,667 (4,164) 15,015 (105) 14,910 ============ ============ ============ ========== EBITDA (c) (7,822) 55,066 (4,183) 43,061 - 43,061 ===== ============ ============ ============ ==========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provisions at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued) West Africa Continuing For the nine months ended mining West Africa operations Discontinued 30 September 2011 UK operations exploration total operations Total ====================================== ============ ========== US$000 US$000 US$000 US$000 US$000 US$000 INCOME STATEMENT Revenue - 142,929 - 142,929 67,236 210,165 ====================================== ============ ============ ============ ========== Cost of Sales 997 (105,679) (1,373) (106,055) (51,101) (157,156) ====================================== ============ ============ ============ ========== Cash production costs: - mining - (22,874) - (22,874) (27,336) (50,210) - processing - (29,246) - (29,246) (12,046) (41,292) - overheads - (17,558) - (17,558) (4,842) (22,400) - royalties - (10,198) - (10,198) (2,552) (12,750) ====================================== ============ ============ ============ ========== - (79,876) - (79,876) (46,776) (126,652) Changes in inventory - 6,926 - 6,926 (44) 6,882 Expensed exploration and other cost of sales (a) 1,098 (4,595) (1,373) (4,870) (4,281) (9,151) Depreciation and amortisation (b) (101) (28,134) - (28,235) - (28,235) =============================== ===== ============ ============ ============ ========== Gross profit/(loss) 997 37,250 (1,373) 36,874 16,135 53,009 Administrative expenses and share based payments (8,154) - - (8,154) - (8,154) ====================================== ============ ========== (Loss)/profit from operations (7,157) 37,250 (1,373) 28,720 16,135 44,855 Profit on sale of subsidiaries and investments - - 8,990 8,990 88,229 97,219 Restructure of hedge - (39,757) - (39,757) - (39,757) ====================================== ============ ============ ============ ========== Net finance items (655) (3,229) (177) (4,061) (26) (4,087) ====================================== ============ ============ ============ ========== (Loss)/profit before taxation (7,812) (5,736) 7,440 (6,108) 104,338 98,230 ====================================== ============ ============ ============ ========== Analysed as: ------------ ---------- (Loss)/profit before tax & exceptional items (7,812) 34,021 (1,550) 24,659 16,109 40,768 ------------ ---------- Exceptional items - (39,757) 8,990 (30,767) 88,229 57,462 ============ ========== (Loss)/profit before taxation (7,812) (5,736) 7,440 (6,108) 104,338 98,230 ============ ========== Taxation (865) 3,586 - 2,721 (2,723) (2) ====================================== ============ ========== (Loss)/profit for the period (8,677) (2,150) 7,440 (3,387) 101,615 98,228 ====================================== ============ ========== Attributable to: Equity shareholders of parent company (8,677) (923) 7,440 (2,160) 99,448 97,288 ------------ ---------- Non-controlling interest - (1,227) - (1,227) 2,167 940 (Loss)/profit for the period (8,677) (2,150) 7,440 (3,387) 101,615 98,228 ====================================== ============ ============ ============ ========== EBITDA (c) (7,056) 65,384 (1,373) 56,955 16,135 73,090 =============================== ===== ============ ============ ============ ==========
(a) Other cost of sales represents costs not directly attributable to production, including exploration expenditure expensed;
(b) Includes amounts in respect of the amortisation of mine closure provision at Inata;
(c) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
3. Segmental Reporting (continued) For the nine months West Africa ended 30 September mining West Africa Continuing Discontinued 2012 UK operations exploration operations total operations Total US$000 US$000 US$000 US$000 US$000 US$000 CASH FLOW STATEMENT (Loss)/profit for the period (7,488) 26,667 (4,164) 15,015 (105) 14,910 Adjustments for non-cash and non-operating items (d) 1,213 30,606 (236) 31,583 105 31,688 Movements in working capital (4,772) (4,796) (222) (9,790) - (9,790) Net cash (used in)/ generated by operations (11,047) 52,477 (4,622) 36,808 - 36,808 Net interest received/(paid) 134 (962) - (828) - (828) Purchase of property, plant and equipment (169) (20,557) (1,866) (22,592) - (22,592) Deferred exploration expenditure - (367) (26,540) (26,907) - (26,907) Net proceeds from disposal of discontinuing operations 1,980 - - 1,980 - 1,980 Loans repaid - (18,000) - (18,000) - (18,000) Final dividend (13,166) - - (13,166) - (13,166) Other cash movements (e) (39,899) 6,834 32,577 (488) - (488) Total (decrease)/increase in cash and cash equivalents (62,167) 19,425 (451) (43,193) - (43,193) For the nine months West Africa ended 30 September mining West Africa Continuing Discontinued 2011 UK operations exploration operations total operations Total)) US$000 US$000 US$000 US$000 US$000 US$000 CASH FLOW STATEMENT (Loss)/profit for the period (8,677) (2,150) 7,440 (3,387) 101,615 98,228 Adjustments for non-cash and non-operating items (d) 617 69,876 (8,860) 61,633 (85,107) (23,474) Movements in working capital (3,423) (17,481) (2,991) (23,895) (1,660) (25,555) Net cash (used in)/ generated by operations (11,483) 50,245 (4,411) 34,351 14,848 49,199 Net interest (paid)/received (590) (1,884) - (2,474) 17 (2,457) Net tax paid (865) - - (865) (3,679) (4,544) Purchase of property, plant and equipment (9) (40,573) - (40,582) (881) (41,463) Restructure of hedge (39,757) - - (39,757) - (39,757) Loans repaid (25,000) (18,000) - (43,000) - (43,000) Deferred exploration expenditure - (11,513) (10,514) (22,027) (2,995) (25,022) Dividend (6,505) - - (6,505) - (6,505) Net proceeds from disposal of discontinuing operations 177,007 - - 177,007 - 177,007 Net cash received from disposal of other investments - - 16,501 16,501 - 16,501 Non-controlling interest share of dividend from subsidiary - - - - (2,000) (2,000) Other cash movements (e) (26,192) 23,864 (2,812) (5,140) (1,969) (7,109) Reclassification of cash not held for sale (f) 3,341 - - 3,341 (3,341) - Total increase/(decrease) in cash and cash equivalents 69,947 2,139 (1,236) 70,850 - 70,850
(d) Includes depreciation and amortisation, share based payments, movement in provisions, taxation in the income statement, and other non-operating items in the income statement;
(e) Other cash movements include deferred consideration paid, cash flows from financing activities, and exchange gains or losses;
(f) The sale of subsidiaries in South East Asia was for a debt-free cash-free consideration. Therefore, cash held in remaining Malaysian and Indonesian subsidiaries at 30 June 2011 has been excluded from held for sales assets, and reported as Group cash in the consolidated statement of financial position.
4. Earnings per Share
Earnings per share are analysed in the table below, presenting earnings per share for continuing and discontinued operations.
30 September 30 September 30 September 30 September 2012 (three 2011 (three 2012 (nine 2011 (nine months) months) months) months) Unaudited Unaudited Unaudited Unaudited ============= ============= Shares Shares Shares Shares Weighted average number of shares in issue for the period - number of shares with voting rights 199,104,701 199,077,172 199,004,219 198,955,805 - effect of share options in issue 6,915 3,419,163 1,212,506 3,720,090 ============= ============= - total used in calculation of diluted earnings per share 199,111,616 202,496,335 200,216,725 202,675,895 ============= ============= US$000 US$000 US$000 US$000 Earnings per share from continuing operations (Loss)/profit for the period from continuing operations (809) (26,217) 15,015 (3,387) Less non-controlling interest (109) 2,582 (1,725) 1,227 ============= ============= (Loss)/profit for the period attributable to equity shareholders of the parent (918) (23,635) 13,290 (2,160) ============= ============= (Loss)/earnings per share - basic (cents per share) (0.46) (11.87) 6.68 (1.09) - diluted (cents per share) (0.46) (11.87) 6.64 (1.09) ============= ============= Earnings per share from discontinued operations Profit/(loss) for the period - 14,476 (105) 101,615 Less non-controlling interest - 42 - (2,167) ======= ======== Profit/(loss) for the period attributable to equity shareholders of the parent - 14,518 (105) 99,448 ======= ======== Earnings/(loss) per share - basic (cents per share) - 7.29 (0.05) 49.98 - diluted (cents per share) - 7.17 (0.05) 49.07 ======= ======== Total (loss)/earnings per share - basic (cents per share) (0.46) (4.58) 6.63 48.90 - diluted (cents per share) (0.46) (4.58) 6.59 48.00 ======= ====== 5. Intangible assets
Intangible assets represent deferred exploration expenditure. The movement in the period is analysed below:
30 September 31 December 30 September 2012 2011 2011 (9 months) (12 months) (9 months) US$000 US$000 US$000 At 1 January 42,390 11,091 11,091 Additions 27,383 31,874 22,027 Capitalised depreciation(1) 543 - - Transferred to property, (19,661) - - plant and equipment(2) Transferred to disposal group - (575) (575) At 30 September 50,655 42,390 32,543 30 September 31 December 30 September 2012 2011 2011 US$000 US$000 US$000 Burkina Faso 28,449 28,525 22,693 Guinea 21,900 13,655 9,697 Mali 306 210 153 Total 50,655 42,390 32,543 6. Property, plant and equipment Mining property Exploration and plant property and plant Office equipment Nine months ended 30 September 2012 West Africa West Africa UK Total US$000 US$000 US$000 US$000 Cost At 1 January 2012 316,028 2,812 952 319,792 Additions 20,557 1,389 169 22,115 Transfer from intangible exploration assets(2) 18,725 936 - 19,661 At 30 September 2012 355,310 5,137 1,121 361,568 ======== Depreciation At 1 January 2012 71,380 - 458 71,838 Charge for the period 18,232 - 99 18,331 Charge for the period - capitalised(1) - 543 - 543 ======== At 30 September2012 89,612 543 557 90,712 ======== Net Book Value At 30 September 2012 265,698 4,594 564 270,856 ======== At 1 January 2012 244,648 2,812 494 247,954 ========
(1) Capitalised depreciation represents the depreciation of items of property, plant, and equipment which are used exclusively in the Group's exploration activities. The consumption of these assets is capitalised as an intangible asset, in accordance with accounting standards and industry practice.
(2) Transfers from exploration costs of US$18.7 million represent the cost of increasing the Inata reserve from the level acquired in 2009 when Avocet acquired Wega Mining. These ounces now form part of the life of mine plan and the cost will be depreciated in accordance with the Group accounting policy. In addition to this, US$0.9 million of property, plant and equipment that is used in the Group's exploration division has been transferred from intangible to tangible assets.
7. Other financial assets 30 September 30 September 30 September 30 September 2012 2011 2012 2011 (3 months) (3 months) (9 months) (9 months) Unaudited Unaudited Unaudited Unaudited US$000 US$000 US$000 US$000 At 1 January/1 July 1,224 - 1,828 20,293 Additions - 2,313 - 2,313 Disposals - - - (17,390) Fair value adjustment (172) - (776) (2,903) At 30 September 1,052 2,313 1,052 2,313
Other financial assets represent available for sale financial assets which are measured at fair value. The fair value adjustment is the periodic re-measurement to fair value, with gains or losses on re-measurement recognised in equity.
Other financial assets relate to shares in Golden Peaks Resources Limited. The shares were acquired as consideration for the disposal of two of the Group's assets in South East Asia in 2011 (note 2). In January 2012 Golden Peaks announced that it had changed its name to Reliance Resources. Reliance Resources is listed on the Toronto Stock Exchange.
In 2011 Avocet sold its entire holding of shares in Avion Gold Corp (Avion) for cash consideration of US$16.5 million. The Avion shares were acquired as consideration for the disposal of the Houndé group of licences in 2010. On the disposal of the shares, accumulated gains previously recognised in equity were transferred to the income statement and recognised in the profit on disposal of US$8.9 million.
8. Inventories 30 September 31 December 30 September 2012 2011 2011 Unaudited Audited Unaudited US$000 US$000 US$000 Spare parts and consumables 40,513 27,612 24,919 Work in progress 10,343 12,707 13,786 Finished goods 1,964 196 1,945 52,820 40,515 40,650
Work in progress includes ore in stockpiles and gold in circuit. Finished goods represents gold in transit or undergoing refinement, prior to sale.
9. Trade and other receivables 30 September 31 December 30 September 2012 2011 2011 Unaudited Audited Unaudited US$000 US$000 US$000 Advances to suppliers 8,213 11,151 14,703 VAT 18,037 15,579 7,444 Prepaid expenses 908 1,799 542 27,158 28,529 22,689 10. Cash and cash equivalents
Included in US$62.0 million cash and cash equivalents at 30 September 2012 is US$38.3 million of restricted cash (31 December 2011: US$14.6 million), representing a minimum account balance
held in Macquarie Bank Limited, a condition of the Inata project finance facility, and US$1.3 million (31 December 2011: US$0.6 million) relating to amounts held on restricted deposit in Burkina Faso for the purposes of environmental rehabilitation work, as required by the terms of the Inata mining licence.
11. Other financial liabilities
Other financial liabilities include the remaining balance under the Inata project finance facility of US$11 million. The facility is due for repayment at US$6 million per quarter, with the final remaining balance of US$5 million due on 31 March 2013. Also included within other financial liabilities are liabilities in respect of assets held under finance lease, US$0.7 million of which is included within current financial liabilities, and US$2.5 million is included within non-current financial liabilities.
12. Non-operating items in the income statement
In arriving at net cash flow from operating activities, the following non-operating items in the income statement have been adjusted for:
30 September 30 September 30 September 30 September 2012 2011 2012 2011 (three months) (three months) (nine months) (nine months) Unaudited Unaudited Unaudited Unaudited US$000 US$000) US$000 US$000 Exchange losses - continuing operations 1,087 326 1,550 296 Exchange gains - discontinued operations - (8) - (201) Finance expense - continuing operations 720 991 2,321 4,023 Finance income - continuing operations (11) (20) (125) (20) Net finance items - discontinued operations - 7 - 26 Profit on disposal of other financial assets - - - (8,990) Profit on disposal of subsidiaries - (12,995) - (85,802) Restructure of hedge - 39,757 - 39,757 (Profit)/loss on disposal of investments - (2,427) 105 (2,427) Non-operating items in the income statement 1,796 25,631 3,851 (53,338) 13. Exceptional items 30 September 2012 30 September 2011 30 September 2012 30 September 2011 (3 months) (3 months) (9 months) (9 months) Unaudited Unaudited Unaudited Unaudited US$000 US$000) US$000 US$000 Profit /(loss) on disposal of subsidiaries - 12,995 (105) 85,802 Restructure of hedge - (39,757) - (39,757) Profit on disposal of investments - 2,427 - 2,427 Profit on disposal of other financial assets - - - 8,990 Exceptional (loss)/gain - (24,335) (105) 57,462
Profit on Disposal of Subsidiaries
Profit on disposal of subsidiaries relates to the profit on disposal of Avocet's South East Asian assets. Further details of this transaction are included in note 2.
Restructure of Hedge
On 27 July 2011, Avocet announced the restructure of forward contracts for delivery of gold bullion ("the hedge"). The restructure consisted of eliminating 58,432 ounces under the forward contracts at a cost of US$39.8 million and extending the delivery profile of the remaining ounces by four years to June 2018. The forward contracts are considered to be outside of the scope of IAS 39, on the basis that they are for own use and gold produced will continue to be physically delivered to meet the contractual requirement in future periods, and therefore no value is reflected in the consolidated financial statements for the remaining contracts, as allowed by the exemption conferred by IAS 39.5. The restructuring of the contracts, as a response to the significant change in the Group's production profile following the disposal of the Penjom Mine and North Lanut, has not changed the nature or purpose of the contracts, which continue to be held for own use, nor does it represent a practice of net settlement. Further details of this transaction were provided in note 25 of the Annual Report for the year ended 31 December 2011.
Profit/ (loss) on Disposal of Investments
Avocet completed the sale of PT Arafura Mandiri Semangat (PT Arafura) and PT Aura Celebes Mandiri (PT ACM) to Reliance Resources Limited, a company owned by Golden Peaks Resources Limited (Golden Peaks). Consideration was in the form of 7.9 million shares in Golden Peaks, a company listed on the Toronto Stock Exchange. PT Arafura and PT ACM held non-core exploration projects in Indonesia, and were included in the balances of the disposal group held for sale at 31 December 2010.
Profit on disposal of other financial assets
During 2011, Avocet disposed its entire holding of shares in Avion Gold Corp ("Avion") for cash consideration of US$16.5 million. The Avion shares were acquired as consideration for the disposal of the Houndé group of licences in 2010. The shares were recorded in the balance sheet at fair value, with movements in fair value recognised in equity, in accordance with IAS39. On the disposal of the shares, accumulated gains previously recognised in equity were transferred to the income statement and recognised in the profit on disposal.
14. Related party transactions
The table below sets out charges in the nine month period and balances at 30 September 2012 between the Company (Avocet Mining PLC) and Group companies that were not wholly owned, in respect of management fees and interest on loans. There were no other related party transactions in the period requiring disclosure.
Avocet Mining PLC Wega Mining AS Charged in Balance at Charged in Balance at nine months 30 September nine months 30 September 2012 2012 US$000 US$000 US$000 US$000 Société des Mines de Bélahouro SA (90%) 5,497 139,601 5,481 107,461
Compensation paid to key management of the Group during the quarter was US$0.8 million, including pension contributions of US$0.03 million. A share based payment expense of US$0.2 million was recognised in the quarter in respect of awards made under the Performance Share Plan, the details of which were reported in the announcement made on 13 March 2012. No dividends were received by Directors during the period in respect of shares held in the Company. There were no dividends received by Directors during the quarter in respect of shares held in the Company. In the nine months ended 30 September 2012, Directors received US$0.07 million in dividends in respect of shares held in the Company.
15. Contingent liabilities
There were no contingent liabilities at 30 September 2012 or 30 September 2011.
In respect of the PT Lebong Tandai ("PT LT") litigation, the Company can confirm that the second Indonesian civil case brought by PT LT against Avocet and other parties in April 2012, was dismissed by the South Jakarta District Court on 19 September 2012. The Court's reason for dismissing the case was based on the acknowledgement that the South Jakarta District Court does not have the jurisdiction to hear the matter. As it did after the first Indonesian civil case was dismissed in December 2011, PT LT has appealed the District Court's decision on the second case. The Company has no knowledge of when either appeal may be heard by the High Court of Indonesia.
Note 31 to the financial statements for the year ended 31 December 2011 contains a description of the background to this action, and the reader is therefore referred to the Company's Annual Report for 2011 for further details.
16. Unaudited quarterly income statement for continuing operations
Year ended Quarter ended Quarter ended Quarter ended 31 December 31 March 30 September Year to date 2012 30 June 2012 2012 2012 2011 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) US$000 US$000 US$000 US$000 US$000 Revenue 60,256 49,255 50,146 159,657 213,375 Cost of sales (36,007) (42,734) (45,689) (124,430) (156,652) Cash production costs: - mining (12,707) (13,225) (12,355) (38,287) (36,137) - processing (10,827) (10,914) (9,219) (30,960) (40,644) - overheads (4,685) (4,789) (5,521) (14,995) (23,232) - royalties (4,339) (4,182) (3,877) (12,398) (15,515) (32,558) (33,110) (30,972) (96,640) (115,528) Changes in inventory 5,163 (97) (5,662) (596) 4,098 Expensed exploration and other cost of sales (2,047) (3,732) (3,084) (8,863) (6,202) Depreciation and amortisation (6,565) (5,795) (5,971) (18,331) (39,020) Gross profit 24,249 6,521 4,457 35,227 56,723 Administrative expenses (2,154) (3,166) (3,630) (8,950) (9,657) Exceptional administrative expenses - - - - (3,078) Share based payments (559) (471) (517) (1,547) (1,941) Profit from operations 21,536 2,884 310 24,730 42,047 Restructure of hedge - - - - (39,757) Profit on disposal of investments - - - - 8,990 Finance items Exchange gains/(losses) 145 219 76 440 (116) Finance expense (858) (743) (720) (2,321) (4,812) Finance income 16 98 11 125 125 Profit before taxation 20,839 2,458 (323) 22,974 6,477 Analysed as: Profit before taxation and exceptional items 20,839 2,458 (323) 22,974 40,322 Exceptional items - - - - (33,845) Profit before taxation 20,839 2,458 (323) 22,974 6,477 Taxation (6,884) (589) (486) (7,959) (7,297) Profit/(loss) for the period 13,955 1,869 (809) 15,015 (820) Attributable to: Equity shareholders of the parent company 12,597 1,611 (918) 13,290 (355) Non-controlling interest 1,358 258 109 1,725 (465) 13,955 1,869 (809) 15,015 (820) EBITDA (1) 28,101 8,679 6,281 43,061 84,145
(1) EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.
This information is provided by RNS
The company news service from the London Stock Exchange
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