Share Name Share Symbol Market Type Share ISIN Share Description
Altyn Plc LSE:ALTN London Ordinary Share GB00B015PT76 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 0.6925p 0.655p 0.73p - - - 2,305,190 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 15.2 -3.1 -0.1 - 16

Altyn Plc Half-year Report

02/09/2019 7:00am

UK Regulatory (RNS & others)

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ALTYN PLCInterim report - six months to 30 June 2019


Altyn Plc ("Altyn" or the "Company"), the gold mining and development company, announces its unaudited results for the six months to 30 June 2019.




Mine development

    -- The Company concentrated on the development of the ore bodies 3-8 at level +200MASL and associated infrastructure development works. The Company will commence further development work to take the decline down to +135MASL in Q4 2019. 
    -- During the period the Company conducted extensive exploration drilling of 9 thousand running metres. 
    -- Altyn is in the process of completing a Competent Persons report (CPR) updating the reserve and resource statement on the Sekisovskoye deposit. The results are expected to be released in Q3 2019. 
    -- The Company purchased the following new machinery: CAT R1300G loading and hauling machine and Sandvik TH-430 underground dump truck with a lifting capacity of 30 ton using funding provided by Assaubayev family. 

Fund raising

    -- During the period a member of the Assaubayev family loaned the Company an amount of US$1.05m on an interest free basis. 
    -- The Company reached an agreement with Kazakh bank, JSC "Bank CenterCredit" (BCC), and as a first step entered into a loan agreement for a sum of KZT350m (approximately USD 950k) which was made to Altyn's subsidiary company Altyn MM LLP that owns and operates the processing plant at the Sekisovskoye gold deposit. 
    -- The Company is currently at an advanced stage with BCC for the provision of development funding, which will be used in order to achieve 800ktpa mining capacity. The Company expects to be in a position to update shareholders in relation to this in Q3 2019. 


    -- Production results in the current period were below budgeted expectations, primarily as a result of some equipment breakdowns and the associated time-lag in receiving the necessary spare parts. As such for Q1 2019 the monthly run rate of ore extraction averaged 13,300t a month compared to 20,000t in the same period in 2018. Following the delivery of the new equipment as noted in the RNS of July 2019 production has increased achieving 29,000t in July 2019. 
    -- The overall grade of ore was higher at 2.06g/t, compared to than 1.96 g/t obtained in 1H 2018. 
    -- The milled ore was 114,000 tons (H1 2018 - 182,000 tons), included lower grade stockpiled ore at 0.5g/t as in the previous period. As a number of ore bodies are ready for production the additional equipment purchased recently will result in increasing production in H2 2019 and going forward. 
    -- Gold recovery averaged 81.53% during the 6-month period (H1 2018 - 83.65%).The decline in average gold recovery was due to a larger share of low grade stockpiles being utilised principally in 2 month period. In July 2019 recovery has returned to its normal value at above 83% 
    -- Gold production was 5,561oz, compared with H1 2018 of 8,461oz. 


    -- As a result of the setback in production turnover declined to US$7.2m (H1 2018 US$10.9m). The gold price achieved averaged US$1,308oz during the period (Year 2018 US$1,292). 
    -- The Company made an operating profit of US$1.3m (H1 2018 profit US$1.6m), with a net loss before taxation of US$0.6m (H1 2018 profit US$0.6m). 
    -- The total cash cost of production was lower at US$1,015oz (Year 2018 US$1,235oz), as the Company contained costs during the period. 
    -- EBITDA achieved was positive at US$1.5m (Year 2018 US$0.9m). 
    -- Cash flow from operating activities was positive at US$0.4m, (H1 2018 US$2.5m) 

Teren-Sai fields (formerly known as Karasuyskoye)

    -- Exploration work at Teren-Sai ore fields continued in line with the development plans. Development has been intensified at two sites which have been identified as having potential for the extraction of ore at a low cost, within the contract licence area. Positive results were obtained from the test samples taken, and the detailed exploration drilling and trenching combined together with the historical data is being used as the basis for an independent Competent Persons Report (CPR), the results of which are expected in Q3 2019. 

Aidar Assaubayev, CEO of Altyn Plc commented:


Recovery in production is well on track with a significant pick up in production in July 2019. The key to moving ahead to the longer term plan is obtaining the necessary development finance. On this front we are optimistic as talks are progressing well and shareholders will be updated in Q3 2019.


In tandem with seeking development finance the management has also been working hard on finalising CPR reports for both the Sekisovskoye site and the Teren-Sai site (formerly known as Karasuyskoye), the results of which will be available shortly.


For further information please contact:


Altyn PlcRajinder Basra, CFO +44 (0) 207 932 2456


VSA Capital (Corporate Broker)Andrew Monk / Andrew Raca +44 (0) 203 005 5000


Information on the Company


Altyn Plc (LSE:ALTN) is an exploration and development company, which is listed on the standard segment of the London Stock Exchange.


To read more about Altyn Plc please visit our website


ALTYN PLCChief Executive Review


H1 2019 Review


Mine development


In H1 2019, the Company has concentrated on developing the productive ore bodies. During the period due to equipment failures progress was not in line with that envisaged. It was the intention to take the decline down to the horizon 135masl, this will now commence in Q4 2019.


The actual ore mined ranged from a low of 10,200t in February to a 24,000t in April 2019, resulting in an average tonnage over 6 months of approximately 16,500t (H1 2018: 25,000t). This was a significant shortfall to the prior year, however production has increased after maintenance and currently stands at 28,000t a month.


The production during H1 2019 was mainly from the group of ore bodies 3-8 from 200masl. Ore bodies 3-8 will continue to be developed during H2 2019, and ore will be taken from ore body 11 in addition which has an expected higher grade of 3.43g/t.


Ore body 3-8 were further developed at the 200masl which will release 300,000t for future production, from exploratory drilling conducted the grade is expected to be 2.25g/t at this level. During the period extensive exploratory work was carried out with 9,000 running meters being drilled. Infrastructure repairs were also carried out with enhancements to the sewage system and the ventilation system. Improvements were also made to accessing the various ore bodies with access tunnels being completed between ore bodies 3-8 and ore body 11. This successfully linked the eastern and western flanks of the ore body facilitating the movement of resources between the ore bodies.


Teren-Sai (formerly known as Karasuyskoye)


In addition to the underground mine development the Company is continuing to develop its prospective site at Teren-Sai. With extensive exploratory drilling being undertaken and test production being analysed at the plant based at Sekisovskoye.


H1 2019 Operational Overview - Sekisovskoye

Underground mine           H1 2019 H1 2018 
Ore extracted       tons   98,725  152,639 
Gold grade          g/t    2.09    1.96 
Silver grade        g/t    1.77    3.34 
Mineral processing         H1 2019 H1 2018 
Milling             tons   113,669 182,832 
Gold grade          g/t    1.89    1.72 
Silver grade        g/t    1.67    2.98 
Gold recovery       %      81.53%  83.65% 
Silver recovery     %      70.01%  74.29% 
Gold produced       ounces 5,561   8,461 
Silver produced     ounces 4,111   12,875 

During the period the ore extracted in the first three months averaged 13,300t a month, significantly lower than the prior period. The extraction rate has increased with the new supply of equipment and increased to 28,000t in July 2019.


As in prior periods the difference between the ore extracted and the milling is due to the use of lower grade stockpiled ore. The stockpiled ore has a grade of approximately 0.5%, leading to a processed grade of 1.89 overall (2018: 1.72). As production increases the lower grade ore is not expected to be used.


The gold recovery has dropped from that achieved last year, this is expected to be a short term issue due to a number of breakdowns as elaborated on below. The management are expecting to maintain a recovery rate of above 83%, once the necessary investment has been made.


The underground ore grade continues to be lower than that forecast as it contains a higher quantity of development ore being mined leading to a decrease in the gold grade, again the increase in grade is dependent on the deployment of additional mining equipment.


Current developments


During the period the production has been below budgeted levels due principally to the constraint of having sufficient operational machinery. As a result of time lags in obtaining parts and frequent breakdowns, there was an inevitable impact on to the level of ore mined and subsequent production.


In March 2019 the Company obtained a bank loan and in May 2019 funding was provided by the principal shareholders. The Company used the funds in order to repair the machinery in the interim and are looking to invest in new machinery once further funds become available. In addition, the Company purchased the following new machinery:


- CAT R1300G loading and hauling machine with a bucket capacity of 3.1 m3 from CAT Kazakhstan;- TN-430 underground dump truck with a lifting capacity of 30 tons from Sandvik Kazakhstan.


The Company is progressing talks with a bank in Kazakhstan to raise funds of approximately US$17m. The discussions are at an advanced stage, and the Company will update shareholders once agreements have been entered into. The funding will be used to purchase equipment, parts and provide funding to grow the productive capacity. In addition, the Company will continue to develop the decline and ore bodies in order to progress to the next stage of development.


In addition to the principal gold project at Sekisovskoye the Company is continuing the development of the Teren-Sai ore fields. During the year there was extensive drilling conducted the results of which are being interpreted, and will be used for the basis of the independent CPR.


During the period the management instructed a Company to conduct a detailed Competent Person Report (CPR), under JORC (2012), for both projects. The results are expected to be announced in Q3 2019.


H1 2018 Financial Review


The Company has reported a gross profit of US$1.3m for H1 2019, against US$2.6m for H1 2018, with turnover of US$7.2m (H1 2018 US$10.9m).


Sekisovskoye produced 5,561oz of gold in H1 2019 (H1 2018: 8,461oz). Gold sold during the period amounted to 5,369oz (H1 2018: 8,235oz) at an average price of US$1,338/oz (H1 2018: US$1,323/oz). The average price of sales achieved includes revenues generated from silver sales in the period, which are treated as incidental to gold production.


The operating cash cost of production (cost of sales excluding depreciation and provisions) for the period was US$801/oz (Year 2018 US$731/oz). The total cash cost was US$1,073/oz as compared to US$883/oz in year ended 2018. The increase in cash cost is a result of the lower level of production in the period. Costs have been rationalised and economies made as far as possible.


As of 30 June 2019, the Company had cash balances of US$50,000. The Company currently has sufficient cash resources when combined with the support of the principal shareholders to continue to operate a cash generative business.


Aidar AssaubayevChief Executive Officer


30 August 2019

                    Six monthsended 30 June2019 Six monthsended 30 June2018 Year ended31 December2018 
                    (unaudited)                 (unaudited)                 (audited) 
                    US$'000                     US$'000                     US$'000 
Revenue             7,184                       10,894                      19,366 
Cost of sales       (5,914)                     (8,240)                     (16,871) 
Gross profit        1,270                       2,654                       2,495 
Administrative      (1,459)                     (1,248)                     (5,543) 
Impairments         81                          176                         562 
Operating           (108)                       1,582                       (2,486) 
Foreign             12                          (383)                       (196) 
Finance             (507)                       (596)                       (1,283) 
(Loss)/profit       (603)                       603                         (3,965) 
Taxation            -                           -                           (323) 
(Loss)/profit       (603)                       603                         (4,288) 
(Loss)/profit       (0.02c)                     0.02c                       (0.17c) 
per ordinary 
& diluted (US 
or loss 
               Six monthsended 30 June2019 Six monthsended 30 June2018 Year ended31 December2018 
               (unaudited)                 (unaudited)                 (audited) 
               US$'000                     US$'000                     US$'000 
(Loss)/profit  (603)                       603                         (1,929) 
Currency       411                         (2,027)                     (5,712) 
will or 
or los 
Currency       -                           -                           2,560 
Total          (192)                       (1,424)                     (7,440) 
Consolidated statement of financial position 
                                              Six monthsended 30 June2019 Six monthsended 30 June2018 Year ended31 December2018 
                                              (unaudited)                 (unaudited)                 (audited) 
                                              US$'000                     US$'000                     US$'000 
Non-current assets 
Intangible asset                        3     12,481                      11,641                      12,338 
Property, plant and equipment           4     29,037                      34,135                      28,391 
Other receivables                             1,315                       -                           1,303 
Deferred tax asset                            8,078                       6,750                       7,999 
Restricted cash                               -                           16                          28 
                                              50,911                      52,542                      50,059 
Current assets 
Inventories                                   2,017                       3,096                       1,297 
Trade and other receivables                   3,829                       3,964                       3,081 
Cash and cash equivalents                     50                          201                         105 
                                              5,896                       7,261                       4,483 
Total assets                                  56,807                      59,803                      55,542 
Current liabilities 
Trade and other payables                      (8.645)                     (8,501)                     (7,846) 
Other financial liabilities                   -                           (407)                       (122) 
Provisions                                    (152)                       (85)                        (94) 
Borrowings                                    (2,947)                     (1,557)                     (1,218) 
                                              (11,744)                    (10,550)                    (9,280) 
Net current liabilities                       (5,848)                     (3,289)                     (4,797) 
Non-current liabilities 
VAT payable                                   (885)                       -                           (1,383) 
Other financial liabilities & payables        (636)                       (120)                       (644) 
Provisions                                    (4,745)                     (4,684)                     (4,412) 
Borrowings                                    (4,129)                     (2,905)                     (3,963) 
                                              (10,395)                    (7,709)                     (10,402) 
Total liabilities                             (22,140)                    (18,259)                    (19,682) 
Net assets                                    34,668                      41,544                      34,860 
Called-up share capital                       4,054                       4,210                       4,054 
Share premium                                 151,470                     151,314                     151,470 
Merger reserve                                (282)                       (282)                       (282) 
Other reserve                                 333                         333                         333 
Currency translation reserve                  (47,359)                    (46.645)                    (47,770) 
Accumulated loss                              (73,548)                    (67,386)                    (72,945) 
Total equity                                  34,668                      41,544                      34,860 

The financial information was approved and authorised for issue by the Board of Directors on 30 August 2019 and were signed on its behalf by:


Aidar Assaubayev - Chief Executive Officer

of changes of equity 
                        Sharecapital Sharepremium Mergerreserve Currencytranslationreserve Otherreserves Accumulatedlosses 
Unaudited               US$'000      US$'000      US'000        US$'000                    US$'000       US$'000           US$'000 
At 1 January            4,054        151,470      (282)         (47,770)                   333           (72,945)          34,860 
Loss for the            -            -            -             -                          -             (603)             (603) 
Exchange differences    -            -            -             411                        -             -                 411 
on translating 
foreign operations 
Total comprehensive     -            -            -             411                        -             (603)             (192) 
for the period 
At 30 June              4,054        151,470      (282)         (47,359)                   333           (73,548)          34,668 
Unaudited               US$'000      US$'000      US'000        US$'000                    US$'000       US$'000           US$'000 
At 1 January            3,886        141,918      (282)         (44,618)                   333           (67,989)          33,248 
Profit for              -            -            -             -                          -             603               603 
the period 
Exchange differences    -            -            -             (2,027)                    -             -                 (2,027) 
on translating 
foreign operations 
Total comprehensive     -            -            -             (2,027)                    -             603               (1,424) 
for the period 
Equity shares           324          9,396        -             -                          -             -                 9,720 
At 30 June              4,210        151,314      (282)         (46,645)                   333           (67,386)          41,544 
Audited                 US$'000      US$'000      US'000        US$'000                    US$'000       US$'000           US$'000 
At 1 January            3,886        141,918      (282)         (44,618)                   333           (67,989)          33,248 
Loss for                -            -            -             -                          -             (4,288)           (4,288) 
the year 
Other comprehensive     -            -            -             (3,152)                    -             -                 (3,152) 
Total comprehensive     -            -            -             (3,152)                    -             (4,288)           (7,440) 
loss for the year 
Conversion of bonds     168          9,552        -             -                          -             (668)             9,052 
into shares 
At 31 December          4,054        151,470      (282)         (47,770)                   333           (72,945)          34,860 
                   Six months ended 30June 2019 Six months ended 30June 2018 Year ended 31December 2018 
                   (unaudited)                  unaudited                    (audited) 
              Note US$'000                      US$'000                      US$'000 
Net           7    352                          2,504                        940 
Purchase           (2,291)                      (2,397)                      (1,108) 
Disposal           -                            -                            264 
Net                (2,291)                      (2,397)                      (844) 
Loans              2,023                        -                            151 
Loans              (139)                        (610)                        (710) 
Net                1,884                        (610)                        (559) 
Decrease           (55)                         (503)                        (463) 
Foreign            -                            -                            (136) 
Cash               105                          704                          704 
at the 
of the 
Cash               50                           201                          105 

1. Basis of preparation




Altyn Plc is registered and domiciled in England and Wales, whose shares are publicly traded on the London Stock Exchange.


The interim financial results for the period ended 30 June 2019 are unaudited. The financial information contained within this report does not constitute statutory accounts as defined by Section 434(3) of the Companies Act 2006.


This interim financial information of the Company and its subsidiaries ("the Group") for the six months ended 30 June 2019 have been prepared, in accordance with IAS34 ( interim financial statements) and on a basis consistent with the accounting policies set out in the Group's consolidated annual financial statements for the year ended 31 December 2018. It has not been audited, does not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2018. The 2018 annual report and accounts, as filed with the Registrar of Companies, received an unqualified opinion from the auditors.


The financial information is presented in US Dollars and has been prepared under the historical cost convention.


The same accounting policies, presentation and method of computation are followed in this consolidated financial information as were applied in the Group's latest annual financial statements except that in the current financial year, the Group has adopted a number of revised Standards and Interpretations. However, none of these have had a material impact on the Group.


In addition, the IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group.


Going concern


The current cash position is sufficient to cover ongoing operating and administrative expenditure for the next 12 months from the date these accounts were released.


The Directors consider that the cash generated from its operations from the Company's producing assets to be sufficient to cover the expenses of running the Company's business for the foreseeable future.


In terms of financing the underground development, the Company will not be incurring any substantial capital expenditure until further capital funds are raised under terms acceptable to the Company. The Company is currently in advanced discussions with a Kazakh bank in order to obtain the necessary finance.


The Company has therefore adopted the going concern basis in the preparation of these financial statements.


Directors Responsibility Statement and Report on Principal Risks and Uncertainties


Responsibility statement


The Board confirms to the best of their knowledge:


The condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;


The interim management report includes a fair review of the information required by:


DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and


DTR 4.2.8R of the Disclosures and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.


The Company's management has analysed the risks and uncertainties and has in place control systems that monitor daily the performance of the business via key performance indicators. Certain factors are beyond the control of the Company such as the fluctuations in the price of gold and possible political upheaval. However, the Company is aware of these factors and tries to mitigate these as far as possible. In relation to the gold price the Company is pushing to achieve a lower cost base in order to minimise possible downward pressure of gold prices on profitability. In addition, it maintains close relationships with the Kazakhstan authorities in order to minimise bureaucratic delays and problems.


Risks and uncertainties identified by the Company are set out on page 8 and 9 of the 2018 Annual Report and Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2019 to the principal risks and uncertainties as set out in the 2018 Annual Report and Accounts and these are as follows:

    -- Fiscal changes in Kazakhstan 
    -- No access to capital / funding for Sekisovskoye or Karasuyskoye 
    -- Commodity price risk 
    -- Currency risk 
    -- Changes to mining code in Kazakhstan 
    -- Reliance on operating in one country 
    -- Reliant on one operating mine 
    -- Technical difficulties associated with developing the underground mine at Sekisovskoye 
    -- Failure to achieve production estimates 

2. (Loss)/profit per ordinary share


Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The weighted average number of ordinary shares and retained (loss)/profit for the financial period for calculating the basic loss per share for the period are as follows:

                      Six monthsended Six monthsended Year ended31 
                      30June 2019     30June 2018     December2018 
                      (unaudited)     (unaudited)     (audited) 
The basic weighted    2,567,875,463   2,528,508,797   2,567,875,463 
number of ordinary 
shares in issue 
the period 
2. (Loss)/profit per 
ordinary share 
The (loss)/profit     (603)           603             4,054 
for the 
period attributable 
equity shareholders 

The potential number of shares which could be issued following the conversion of the bonds currently outstanding amounts to approximately 198m shares being issued on conversion.


3. Intangible assets

                          Teren-SaiGeological data Exploration   US$'000 
1 January 2018            11,424                   3,326         14,750 
Additions                 -                        -             - 
Amortisation capitalised  -                        581           581 
Currency translation      (338)                    -             (338) 
30 June 2018              11,086                   3,907         14,993 
Additions                 -                        1,605         1,605 
Amortisation capitalised  -                        520           520 
Currency translation      (1,197)                  (113)         (1,310) 
December 2018             9,889                    5,919         15,808 
Amortisation capitalised  -                        501           501 
Currency translation      112                      62            174 
30 June 2019              10,001                   6,482         16,483 
Accumulated amortisation 
1 January 2018            2,869                    -             2,869 
Charge for the period     581                      -             581 
Currency translation      (98)                     -             (98) 
30 June 2018              3,352                    -             3,352 
Charge for the period     520                      -             520 
Currency translation      (402)                                  (402) 
31 December 2018          3,470                    -             3,470 
Charge for the period     501                      -             501 
Currency translation      31                       -             31 
30 June 2019              4,002                    -             4,002 
Net books values 
30 June 2018              7,734                    3,907         11,641 
31 December 2018          6,419                    5,919         12,338 
30 June 2019              5,999                    6,482         12,481 

The intangible assets relate to the historic geological information pertaining to the Teren-Sai (formerly Karasuyskoye) ore fields. The ore fields are located in close proximity to the current open pit and underground mining operations of Sekisovskoye. In May 2016 the Company was awarded an exploration and evaluation contract, which is valid for six years, with a right to extend for a further 4 years. Ongoing costs in relation to exploration and evaluation are capitalised. The Company is in the process of carrying out a detailed Competent Persons Report on the site, the results of which are expected shortly.


4. Property, plant and equipment

                  Miningproperties Freehold         Plant,Equipmentfixtures Assets            Total 
                  andleases        landandbuildings andfittings             underconstruction 
                  US$000           US$000           US$000                  US$000            US$000 
1 January 2018    10,843           26,751           20,074                  2,106             59,774 
Additions         1,837            2                141                     417               2,397 
Disposals         -                -                (262)                   -                 (262) 
Transfers         389              7                8                       (404)             - 
Currency          (488)            (686)            (679)                   -                 (1,853) 
30 June 2018      12,581           26,074           19,282                  2,119             60,056 
Additions         1,103                             7                       304               1,414 
Disposals         -                (1)              (2,921)                 -                 (2,922) 
Transfers         (389)            1,487            33                      (1,257)           (126) 
Currency          (1,565)          (3,079)          (1,653)                 (188)             (6,485) 
31 December 2018  11,730           24,481           14,748                  978               51,937 
Additions         1,451            -                652                     189               2,292 
Disposals         -                (4)              (27)                    -                 (31) 
Transfers                                                                   (221)             (221) 
Currency          136              236              135                     11                518 
30 June 2019      13,317           24,713           15,508                  957               54,495 
1 January 2018    2,306            7,260            15,045                  -                 24,611 
Charge for        124              1,254            839                     -                 2,217 
the period 
Disposals         -                -                (147)                   -                 (147) 
Currency          (65)             (240)            (455)                   -                 (760) 
30 June 2018      2,365            8,274            15,282                  -                 25,921 
Charge for        127              988              569                     -                 1,684 
the period 
Disposals                          (1)              (1,294)                                   (1,295) 
Currency          (272)            (970)            (1,522)                 -                 (2,764) 
31 December 2018  2,220            8,291            13,035                  -                 23,546 
Charge for        122              1,050            440                     -                 1,612 
the period 
Disposals         -                (3)              (23)                    -                 (26) 
Currency          21               184              121                     -                 326 
30 June 2019      2,363            9,522            13,573                  -                 25,458 
Net Book Values 
1 January 2018    8,537            19,491           5,029                   2,106             35,163 
30 June 2018      10,216           17,800           4,000                   2,119             34,135 
31 December 2018  9,510            16,190           1,713                   978               28,391 
30 June 2019      10,954           15,191           1,935                   957               29,037 

The additions in the period relate to the continuing works associated with the underground mine.


5. Reserves


A description and purpose of reserves is given below:

Reserve                        Description and purpose 
Share capital                  Amount of the contributions 
                               made by shareholders 
                               in return for the issue of shares. 
Share premium                  Amount subscribed for share capital 
                               in excess of nominal value. 
Share based payment            Amount accrued in relation 
                               to the share based payment 
                               charge relating to the 
                               share options issued. 
Merger Reserve                 Reserve created on application of merger 
                               accounting under a previous GAAP. 
Currency translation reserve   Gains/losses arising on 
                               re-translating the net 
                               assets of overseas operations 
                               into US Dollars. 
Accumulated losses             Cumulative net gains and 
                               losses recognised in the 
                               consolidated statement 
                               of financial position. 

6. Related party transactions


Remuneration of key management personnel


The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 - "Related Party Disclosures". The total amount remaining unpaid with respect to remuneration of key management personnel amounted to US$148,000 (December 2017 US$127,000).

                       Six monthsended Six monthsended Year toDecember2018 
                       30June 2019     30June 2018 
                       US$             US$             US$ 
Short term employee    54,600          73,500          189,956 
                       54,600          73,500          189,956 
Social security costs  3.450           7,132           13,469 
                       58,050          80,632          203,425 

During the period, the Company entered into the following transactions in which the Assaubayev family have an interest:

    -- An amount is owing to Asia Mining Group of US$458,000, (H1 30 June 2018: US$522,000) and is included within trade payables. 
    -- Loans at an average in interest rate of 7% were made to the subsidiaries by Amrita Investments Limited. The total amount currently outstanding including accrued interest amounts to US$1,078,000 (31 December 2018 US$850,000), the loans are repayable on demand or by 31 December 2019, however the management of Amrita have confirmed that the repayments will only be repaid if cash resources permit. 
    -- During the period a member of the Assaubayev family loaned a subsidiary of the parent Company an amount of US$1,050,000 on an interest free basis on demand basis, but only to be repaid if cash resources permit. 
    -- The Company has in issue a convertible bond issued to African Resources Limited which carries a coupon rate of 10% per annum payable semi-annually in arrears on 29 February and 29 July each year. Unless the bonds are re-purchased and cancelled redeemed or converted prior to the scheduled maturity date, they will be repaid in February 2021 at their principal amount. At 30 June 2019 an amount of US$2.2m, including accrued interest was payable on the remaining bonds. 

The transactions incurred by the Company were on normal commercial terms.


7. Notes to the cash flow statement

                          Six                         Six                         Year 
                          monthsended                 monthsended                 ended31 
                          30                          30                          December2018(audited)US 
                          June2019(unaudited)US$000's June2018(unaudited)US$000's $000's 
(Loss)/profit before      (603)                       603                         (3,965) 
Adjusted for 
Finance expense           507                         596                         1,055 
Depreciation of tangible  1,612                       2,217                       3,901 
fixed assets 
(Increase)/decrease       (720)                       (1,383)                     332 
in inventories 
Decrease in other         (122)                       (92)                        (277) 
(Increase)/decrease in    (733)                       41                          1,432 
trade receivables 
Decrease/(increase)       418                         4                           (1,701) 
in trade 
and other payables 
Loss on disposal          5                           135                         301 
of property, 
plant and equipment 
Fair value adjustment     -                           -                           228 
Foreign currency          (12)                        383                         196 
Cash inflow from                                      2,504                       940 
Income taxes              -                           -                           - 
                          352                         2,504                       940 

8. Events after the balance sheet date


There were no significant post balance sheet events to report.


This report will be available on our website at

Company information 
Directors                      Kanat Assaubayev    Chairman 
                               Aidar Assaubayev    Chief executive officer 
                               Sanzhar Assaubayev  Executive director 
                               Ashar Qureshi       Non-executive director 
                               Victor Shkolnik     Non-executive director 
Secretary                      Rajinder Basra 
Registered office and number   Company number: 05048549 
                               28 Eccleston Square 
                               SW1V 1NZ 
                               Telephone: +44 208 932 2455 
Company website       
Kazakhstan office              10 Novostroyevskaya 
                               Sekisovskoye Village 
                               Telephone: +7 (0) 72331 27927 
                               Fax: +7 (0) 72331 27933 
Auditor                        BDO LLP, 
                               55 Baker Street, 
                               London W1U 7EU 
Registrars                     Neville Registrars 
                               18 Laurel Lane 
                               West Midlands B63 3DA 
                               Telephone: +44 (0) 121 585 1131 
Bankers                        NatWest Bank plc 
                               London City Commercial Business Centre 
                               7th Floor, 280 Bishopsgate 
                               EC2M 4RB 
                               LTG Bank AG 
                               Herrengasse 12 
                               FL-9490, Vaduz 
                               Principal of Liechtenstein 

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This information is provided by Business Wire 

(END) Dow Jones Newswires

September 02, 2019 02:00 ET (06:00 GMT)

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