ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.

KEM Kemin Resources

2.30
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Kemin Resources LSE:KEM London Ordinary Share GB00B8T2QJ39 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% 2.30 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Kemin Resources Half-year Report

27/09/2017 7:00am

UK Regulatory


Kemin Resources (LSE:KEM)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Kemin Resources Charts.
 
TIDMKEM 
 
 

Kemin Resources plc

 

("Kemin" or the "Company")

 

Interim report - 6 months to 30 June 2017

 

Kemin Resources Plc (AIM: KEM), the exploration and development company with substantial interests in Kazakhstan, announces its unaudited interim results for the six months ended 30 June 2017.

 

Highlights:

 
 
    -- Supplement to the licence extension in relation to the Smirnovskoye 

(licence 1605) deposit agreeing the work programmes has been approved

allowing exploration and production until July 2019;

 
    -- The initial licence extension in relation to (licence 1606) deposit 

has been approved, for a three year period, final approval is subject

to agreements in relation to the environmental and work programmes.

Final licence approval expected in Q4 2017;

 
    -- In accordance with the mine development plan, company representatives 

arranged visits in April and June 2017 to several institutes in China

and Russia, which deal with the design of molybdenum, tungsten, and

lithium ore treatment and processing plants.

 
    -- Core drilling in Drozhilovskoye and Smirnovskoye to be carried out in 

H1 2018 to enable the shipment of samples to China and/or Russia in

order to conduct technological testing.

 
    -- Continued support for the Company from its major shareholder; and 
 
    -- Attributable loss reduced to GBP206k (2016: GBP232k), due to continuing 

savings in administrative overheads;

 

Commenting on the results, Sanzhar Assaubayev, CEO of Kemin Resources said:

 

"The Company is very close to approval of the work programmes with the Kazakh authorities in relation to Drozhilovskoye, and is expecting to commence the exploration works in H1 2018 on both sites. The next stage is the construction of a trial plant for the development and testing of the processing technology, which will allow the future deposits' development on a full scale basis".

 

For further information, please visit http://www.keminresources.com or contact:

 

Kemin Resources PlcRajinder Basra (CFO)+44(0)207 932 2456

 

Strand Hanson Limited (Nomad, Financial Adviser and Broker)James Spinney/Ritchie Balmer+44(0)207 409 3494

 

Information on the Company

 

Kemin Resources plc (AIM: KEM) was formed into its present structure in April 2013 by the reverse take-over of GMA Resources plc by the 'Joint Venture Kazakh-Russian Mining Company LLP' (KRMC).

 

The Company is focused on developing its mineral resources including molybdenum, tungsten and lithium deposits Drozhilovskoye and Smirnovskoye. Each of the deposits is assessed to have significant value.

 

Kemin's 90% owned Kazakh entity, KRMC, is the developer and future operator of the two subsoil licences that allow exploration and mining at each deposit.

 

Both deposits are located in northern Kazakhstan.

 

Kemin Resources Plc

 

Chief Executive Officer's Review

 

The Company has now agreed the work programmes in relation to Smirnovskoye, but will commence the work as agreed with the Kazakh authorities on this site once the final Drozhilovskoye work programmes have been signed off. This is expected to be in Q4 2017, and the exploration work is therefore expected to commence in H1 2018. The licence is valid after the supplemental agreements for the Smirnovskoye area until July 2019.

 

In relation to Drozhilovskoye, the Company is agreeing the final form and content of the work programmes with the Kazakh authorities. Within the revisions to the work programme it has been agreed that the area is to be split into a north and south area and a commitment has been given that after one year of exploration works the northern area will be transferred to the production stage. These documents were delivered to the Kazakh authorities in September 2017, for final sign off, and are no further amendments are expected.

 

In accordance with the mine development plan, company representatives arranged visits in April and June 2017, to several institutes in China and Russia, which dealt with design of molybdenum, tungsten, and lithium recovery processing plants with facilities in China covering ore treatment.

 

In April 2017, several negotiations were held with IISC SB RAS (Institute of Solid State Chemistry and Mechanochemistry of the Siberian Branch of Russian Academy of Sciences) regarding the technological testing of molybdenum, tungsten and lithium recovery into concentrate. Commercial quotes were received which are being considered, these will allow the company to arrange the technological research and testing. IISC SB RAS has designed a Chemicometallurgical Plant in Krasnoyark, Russia, which processes lithium ores into metal and crystallised lithium as a final product.

 

In June 2017 company representatives also arranged visits to several institutes in China (Beijing, Urumqi, Yantai), which dealt with the recovery technologies of molybdenum, tungsten and lithium. In addition, at this time a number of working processing plants were visited in order to plan for the future production of ore.

 

The core drilling in Drozhilovskoye and Smirnovskoye is expected to commence in H1 2018 with samples of the cores extracted to be sent to China and/or Russia for technological testing the results of the pilot tests are expected in the same period or shortly thereafter.

 

We would like to thank the shareholders for their patience during this time but see a positive future for the Company going forward and for developments in 2018.

 

The major shareholder Bergfolk Corporation which is owned by the Assaubayev family, is fully committed to continuing to advance the project. Under the facility agreement in place with Amrita Investments Limited the Company has access to circa GBP4.5m of financing. Further details in relation to this facility are set out later in this letter.

 

Sanzhar Assaubayev

 

CEO Kemin Resources Plc

 
Kemin 
Resources 
Plc 
Consolidated 
income 
statement 
Six months 
ended 
30 June 
2017 
                      Six months to                Six months to    Year ended 
                      30 June                      30 June          31 December 2016 
                      2017                         2016 
                      (unaudited)                  (unaudited)      (audited) 
                      GBP000                         GBP000             GBP000 
Continuing 
operations 
Administrative        (93)                         (104)            (158) 
expenses 
Operating             (93)                         (104)            (158) 
Loss 
Finance               (115)                        (134)            (287) 
Expense 
Loss before           (208)                        (238)            (445) 
taxation 
Income tax            -                            -                - 
expense 
Loss for              (208)                        (238)            (445) 
the 
period 
Loss for 
the 
period 
attributable 
to: 
Equity                (206)                        (232)            (432) 
shareholders 
of the 
parent 
Non-controlling       (2)                          (6)              (13) 
interest 
                      (208)                        (238)            (445) 
Loss per 
ordinary 
share 
Basic                 (0.12p)                      (0.14p)          (0.25p) 
& Diluted 
Consolidated 
statement 
of 
comprehensive 
income 
Six months 
ended 
30 June 
2016 
                      Six months to                Six months to    Year ended 
                      30 June                      30 June          31 December 2016 
                      2017                         2016 
                      (unaudited)                  (unaudited)      (audited) 
                      GBP000                         GBP000             GBP000 
Loss for              (208)                        (238)            (445) 
the 
period 
Currency              10                           (76)             (58) 
translation 
differences 
arising 
on 
translations 
of foreign 
operations* 
Total                 (198)                        (314)            (503) 
comprehensive 
loss 
* items 
which 
may 
be 
re-classified 
to 
statement 
or profit 
or loss. 
Loss for 
the 
period 
attributable 
to: 
Equity                (200)                        (291)            (481) 
shareholders 
of the 
parent 
Non-controlling       2                            (23)             (22) 
interest 
                      (198)                        (314)            (503) 
 
Kemin 
Resources 
Plc 
Consolidated 
Statement 
of 
financial 
position 
Six months 
ended 
30 June 
2017 
                   30 June 2017     30 June 2016     31 December 2016 
                   (unaudited)      (unaudited)      (audited) 
                   GBP000             GBP000             GBP000 
Non-current 
assets 
Intangible         2,502            2,221            2,539 
assets 
Property,          14               14               15 
plant 
and 
equipment 
Other              167              162              169 
non-current 
assets 
Restricted         4                4                5 
cash 
                   2,687            2,401            2,728 
Current 
assets 
Other              24               25               10 
receivables 
Cash and           8                119              59 
cash 
equivalents 
                   32               144              69 
Total              2,719            2,545            2,797 
assets 
Current 
liabilities 
Trade and          1,617            1,439            1,590 
other 
payables 
Loans              669              441              690 
and 
borrowings 
Other              -                -                - 
liabilities 
                   2,286            1,880            2,280 
Non-current 
liabilities 
Loans              3,104            2,936            2,990 
and 
borrowings 
                   3,104            2,936            2,990 
Total              5,390            4,816            5,270 
liabilities 
Net                (2,671)          (2,271)          (2,473) 
liabilities 
Equity 
Ordinary           1,748            1,748            1,748 
share 
capital 
Deferred           6,168            6,168            6,168 
share 
capital 
Share              37,414           37,414           37,414 
premium 
Merger             (41,682)         (41,682)         (41,682) 
reserve 
Share based        1,105            1,105            1,105 
payment 
reserve 
Other              1,188            1,172            1,188 
reserve 
Currency           9                (7)              3 
translation 
reserve 
Retained           (8,430)          (8,024)          (8,224) 
earnings 
                   (2,480)          (2,106)          (2,280) 
Non-controlling    (191)            (165)            (193) 
interest 
Total              (2,671)          (2,271)          (2,473) 
equity 
 
 
Kemin 
Resources 
Plc 
Consolidated 
Statement 
of 
changes 
in 
equity 
Six 
months 
ended 
30 June 
2017 
                Ordinary  Deferred                     Share based           Currency               Attributed to  Non- 
                share     share     Share    Merger    payment      Other    translation  Retained  owners of the  controlling 
                capital   capital   premium  reserve   reserve      reserve  reserve      earnings  parent         interest     Total 
                GBP000      GBP000      GBP000     GBP000      GBP000         GBP000     GBP000         GBP000      GBP000           GBP000         GBP000 
1               1,748     6,168     37,414   (41,682)  1,105        1,188    3            (8,224)   (2,280)        (193)        (2,473) 
January 
2017 
Loss for        -         -         -        -         -            -        -            (206)     (206)          (2)          (208) 
the 
period 
Currency        -         -         -        -         -            -        6            -         6              4            10 
translation 
differences 
arising 
on 
translation 
of 
foreign 
operations 
Total           -         -         -        -         -            -        6            (206)     (200)          2            (198) 
comprehensive 
loss 
At 30           1,748     6,168     37,414   (41,682)  1,105        1.188    9            (8,430)   (2,480)        (191)        (2,671) 
June 
2017 
At              1,748     6,168     37,414   (41,682)  1,105        912      52           (7,792)   (2,075)        (171)        (2,246) 
1 
January 
2016 
Loss for        -         -         -        -         -            -        -            (232)     (232)          (6)          (238) 
the 
period 
Currency        -         -         -        -         -            -        (59)         -         (59)           (17)         (76) 
translation 
differences 
arising 
on 
translation 
of 
foreign 
operations 
Total           -         -         -        -         -            -        (59)         (232)     (291)          (23)         (314) 
comprehensive 
loss 
Modification    -         -         -        -         -            260      -            -         260            29           289 
of 
loans 
received 
At 30           1,748     6,168     37,414   (41,682)  1,105        1.172    (7)          (8,024)   (2,106)        (122)        (2,271) 
June 
2016 
At              1,748     6,168     37,414   (41,682)  1,105        912      52           (7,792)   (2,075)        (171)        (2,246) 
1 
January 
2016 
Loss for        -         -         -        -         -            -        -            (432)     (432)          (13)         (445) 
the year 
Currency        -         -         -        -         -            -        (49)         -         (49)           (9)          (58) 
translation 
differences 
arising 
on 
translation 
of 
foreign 
operations 
Total           -         -         -        -         -            -        (49)         (432)     (481)          (22)         (503) 
comprehensive 
profit 
- 
31 
December 
2015 
Contribution    -         -         -        -         -            276      -            -         276            -            276 
from 
related 
party 
At              1,748     6,168     37,414   (41,682)  1,105        1,188    3            (8,224)   (2,280)        (193)        (2,473) 
31 
December 
2016 
 
 
Kemin Resources 
Plc 
Consolidated cash 
flow statement 
Six months ended 
30 June 2017 
                        Six months to    Six months to   Year ended 
                        30 June 2017     30 June 2016    31 December 2016 
                        (unaudited)      (unaudited)     (audited) 
                        GBP000             GBP000            GBP000 
Net cash outflow        (51)             (188)           (247) 
from 
operating activities 
Financing 
activities 
Loans                   -                -               (1) 
repaid 
Net cash outflow        -                -               (1) 
from 
financing activities 
Decrease in cash and    (51)             (188)           (248) 
cash equivalents 
Cash and cash           59               307             307 
equivalents 
at 
the beginning of 
the period 
Cash and cash           8                119             59 
equivalents 
at the end of 
the period 
 
 

Kemin Resources Plc

 

Notes to the consolidated financial information

 

Six months ended 30 June 2017

 

1 Basis of preparation

 

The consolidated interim financial information has been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU.

 

The consolidated interim financial information have been prepared using the accounting policies which will be applied in the Group's financial statements for the year ended 31 December 2016. The consolidated interim financial information for the period 1 January 2017 to 30 June 2017 is unaudited and incorporates unaudited comparative figures for the interim period 1 January 2016 to 30 June 2016 and the audited financial information for the year to 31 December 2016. It does not include all disclosures that would otherwise be required within a complete set of financial statements.

 

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 have a material impact on the Group.

 

Going Concern

 

As at 30 June 2017, the Group had cash in hand of GBP8,000 (December 2016:GBP59,000).

 

Under a loan agreement dated 10 April 2013, Amrita Investment Limited (a company incorporated in the British Virgin Islands and ultimately controlled by the Assaubayev family) made available a facility of GBP7,000,000 on an unsecured basis. This was to be applied towards the Group's working capital requirements and the settlement of debts due of the Joint Venture Kazakhstan-Russian Mining Company LLP (KMRC). There is currently approximately GBP4.5m available under this facility.

 

The loan bears interest at LIBOR+5%. The loan is repayable on the earliest of the fifth anniversary of the agreement or of the fundraising completion date in respect of any equity fundraising which raises at least GBP5,000,000 (before expenses). At this point the Lender may choose to convert the loan into the ordinary shares of the Company at the conversion rates stipulated within the contract.

 

The Directors are confident that the Group has sufficient resources available to meet its liabilities as they fall due and its working capital requirements going forward and have therefore prepared these financial statements on a going concern basis.

 

2 Loss per ordinary share

 

The calculation of basic and diluted earnings per share from continuing operations is based upon the retained loss for the financial period, six months to 30 June 2017 is GBP206,000, (30 June 2016: loss GBP232,000 , 31 December 2016 loss GBP432,000).

 

The weighted average number of ordinary shares for calculating the basic loss per share and diluted loss per share for the six months to 30 June 2017 is 174,833,041 (30 June 2016 174,833,041, 31 December 2016 174,833,041).

 

3 Functional and presentational currency

 

The Group has prepared its financial statements in British Pounds. The functional currency of Joint Venture Kazakhstan-Russian Mining Company LLP (KRMC) trading company in Kazakhstan is the Kazakhstan Tenge ("KZT"). The functional currency of Kemin Resources is Pound Sterling. The rates used to convert Kazakhstan Tenge into British Pounds in these financial statements are as follows:

 
          30 June 2017        30 June 2016        31 December 2016 
          Closing  Average    Closing  Average    Closing  Average 
KZT= GBP    414.00   402.00     449.35   493.52     406.65   467.79 
 
 

The currency translation movement on the Group's net investment in its subsidiaries in Kazakhstan is taken to reserves.

 

The financial statements of all Group companies are translated into British Pounds whereby their income statements are translated at the average rate of exchange for the year and their statement of financial position at the closing rate of exchange at the reporting date. Currency translation adjustments arising on the restatement of opening net assets, together with adjustments arising from the retranslation of intergroup and long term foreign currency loans to subsidiaries, are taken direct to reserves.

 

Transactions denominated in currencies other than the functional currency of a Company are recorded at the rate of exchange prevailing at the date of the transaction. Monetary assets and liabilities are translated into the relevant functional currency at the closing rates of exchange at the reporting date. Exchange differences arising from the restatement of monetary assets and liabilities at the closing rate of exchange at the reporting date or from the settlement of monetary transactions at a rate different from that at which the asset or liability was recorded are dealt with through the income statement.

 

4 Events after the balance sheet date

 

There were no significant transactions after the reporting date.

 

5 Approval of interim group financial statements

 

The interim group financial statements for the six months to 30 June 2017 were approved by the directors on 26 September 2017.

 

6 Ultimate Controlling Party

 

The controlling party of Kemin Resources plc is Bergfolk Corporation, by virtue of the fact that it owns 76,14% of the voting rights in the company. The ultimate controlling party is the Assaubayev family.

 

Kemin Resources Plc

 

Company Details

 
Directors            Sanzhar Assaubayev, Chief Executive 
                     Kanat Assaubayev, Chairman 
                     Ashar Qureshi, Non-Executive Director (Vice-Chairman) 
                     Aidar Assaubayev, Non-Executive Director 
                     Neil Herbert, Non-Executive Director 
Secretary            Rajinder Basra FCA 
Registered office    28 Eccleston Square 
                     London 
                     SW1V 1NZ 
Nominated and        Strand Hanson Limited 
Financial 
Adviser 
and Broker           26 Mount Row 
                     Mayfair 
                     London 
                     W1K 3SQ 
                     Telephone: +44 (0) 20 7409 3494 
Auditors to          BDO LLP 
the Group 
                     55 Baker Street 
                     London 
                     W1U 7EU 
Registrars           Neville Registrars 
                     18 Laurel Lane 
                     Halesowen 
                     West Midlands 
                     B63 3DA 
 
 
 
 

View source version on businesswire.com: http://www.businesswire.com/news/home/20170926006468/en/

 
This information is provided by Business Wire 
 
 

(END) Dow Jones Newswires

September 27, 2017 02:00 ET (06:00 GMT)

1 Year Kemin Resources Chart

1 Year Kemin Resources Chart

1 Month Kemin Resources Chart

1 Month Kemin Resources Chart

Your Recent History

Delayed Upgrade Clock