TIDMALTN
AltynGold plc
("AltynGold" or the "Company")
Publication of Annual Report and Financial Results for the year
ended 31 December 2022; update on temporary share suspension
AltynGold is pleased to announce that the Company's Annual
Report and audited financial results for the year ended 31 December
2022 have been published on the Company's website at
www.altyngold.uk and uploaded to the Financial Conduct Authority's
("FCA") National Storage Mechanism at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Further to its announcement on 28 April 2023, the Company has
applied to the FCA for the restoration of its ordinary shares to
the standard listing segment of the Official List of the FCA and to
trading on the Main Market of the London Stock Exchange. A further
announcement in this respect will be made in due course.
Highlights
Financial highlights
-- Turnover increased in the year to US$62m (2021: US$50m) an
increase of 23.4%.
-- 34,499oz of gold sold (2021: 27,747oz), an increase of
24.3%.
-- Average gold price achieved (including silver), US$1,762oz,
(2021: US$1,803oz).
-- The Company made a profit before tax of US$13.4m (2021:
US$18.3m).
-- Adjusted EBITDA (Earnings before interest, tax, depreciation
and amortisation) of US$21.9m (2021: US$26.4m).
-- The Group repaid borrowings of US$15m (2021: US$7.9m).
-- The Group obtained a further advance of US$40m from Bank
Center Credit for capital development.
Operational highlights
-- Ore processed 527,000t (2021: 571,000t).
-- Gold poured 34,023oz, (2021: 28,450oz) a 19.6 % increase
year-on-year.
-- Mined gold grade 2.17g/t, (2021: 1.97g/t).
-- Operating cash cost US$805oz, (2021: US$649oz).
-- Gold recovery rate 83.43% (2021: 83.05%).
Underground development & exploration
-- Transport declines were developed and are both now at 50masl
from 117masl decline 1 and 134masl decline 2.
-- Development of the shaft and tunnelling amounted to 6,699
linear metres (2021: 6,209 linear metres).
-- Exploration drilling at Sekisovskoye amounted to 129,928
linear metres (2021: 119,438 linear metres).
-- An extension to the mining licence for two years at Teren-Sai
has been applied for and is expected to be finalised in the second
half of 2023.
The Annual General Meeting of the Company will be held at
Langham Court Hotel, 31-35 Langham Street, London W1W 6BU, United
Kingdom on Thursday 22 June 2023 at 11.00am.
Further Information:
For further information please contact:
AltynGold Plc
Rajinder Basra
+44 (0) 203 432 3198
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014, as it forms part of
domestic law by virtue of the European Union (Withdrawal) Act
2018.
Information on the Company
AltynGold Plc (LSE:ALTN) is an exploration and development
company, which is listed on the main market segment of the London
Stock Exchange.
To read more about AltynGold Plc please visit our website
www.altyngold.uk.
CHAIRMAN'S STATEMENT
The Company had another successful year increasing its sales
output to 34,499oz, generating a turnover of US$62m and a profit
before tax of US$13.4m.
The Company is advancing on its development plan having
successfully secured US$ 40m funding at attractive terms. The
ensuing objective is to increase ore production to 760ktpa in 2023
as a springboard to achieving 1mtpa thereafter in line with the
processing plant expansion planned for 2023-2024.
In conjunction with its development strategy, the Company is
closely monitoring and controlling its carbon emissions. AltynGold
currently ranks among the lowest emitters according to Kazakhstan's
environmental legislation. The Board is continuing to develop plans
and reviewing technologies that will reduce future carbon
emissions.
The development of Teren-Sai has been progressing slower than
anticipated but the management is committed to continuing the
exploration program and accelerating ore extraction; initially open
pit and then underground. The mining license for an additional two
year term is in process and expected to be granted in the second
half of 2023. The application for renewal is with the appropriate
government department for consideration, and the delay has been due
to checks to be performed by the relevant government body on the
land to be returned that is not required for commercial
development. The checks have been delayed until weather conditions
improve on site, but the Company sees no issues in progressing the
application once this has been done.
Looking forward, the Company is anticipating solid growth. While
higher interest rates and the strong dollar may hinder the demand
and price of gold, the latter should be supported by geopolitical
turmoil. Indeed, professional consensus forecasts see the gold
price trading in US$1,800oz -US$1,900oz range. Although Kazakhstan
is not immune to the global inflationary dynamic, this pressure
should be mitigated by the stronger dollar in which our revenues
are denominated.
With continuing positive operational developments, it is hoped
that the share price will be more reflective of the Company
progress and its future prospects.
Finally I would like to conclude by thanking our Board members
and employees for their unwavering support and I look forward to
another successful year.
Kanat Assaubayev
Chairman
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
The Company's gold production increased 19.6% with gold poured
reaching 34,023oz the highest level since operations at
Sekisovskoye mine commenced. This was achieved despite the setback
of extreme weather which resulted in abnormally low production of
527,000tpa of processed ore which was mitigated by higher grades of
2.17g/t and drawing on stock pile with 585,000tpa ore milled.
The budgets have been set to reach an output of 760-800,000tpa
for 2023 assuming the additional capex equipment comes on stream as
planned.
Following extensive drilling works at Teren-Sai, the exploration
area has been remapped versus the original license with areas that
are no longer of commercial interest returned to the government.
This process has slowed the license renewal which is now expected
to be finalised in the second half of 2023. In the interim, the
Company has put plans in place for further drilling and site
preparation pending the agreement on the new the license
details.
The Company entered into credit arrangements with Bank Center
Credit to finance the processing plant expansion and the
acquisition of new mining equipment. While this financing was
completed in November, the funds will be fully drawn in in 2023.
Concurrently, the processing plant expansion work has already
commenced and substantial equipment purchases were placed post year
end, which should result in higher level of ore production.
Mine development
The Company has continued its development at Sekisovskoye in
line with its mining plan. The pace of development should further
accelerate in 2023 as the US$40m funding is deployed for the
acquisition of new equipment and infrastructure development. The
majority of the new equipment is expected to be in place during the
first half of 2023
The principal development milestones achieved during the period
were:
-- Tunnelling and shaft sinking of 6,699 linear metres, (2021:
6,209). This included 1,040 linear metres at 150masl to open up
further reserves for explotation in 2023.
-- Blast hole drilling of 129,928 linear metres (2021:
119,438).
-- Exploration drilling was carried out and amounted to 13,928
linear metres (2021: 18,943). The exploration drilling was carried
out at horizons 174masl and 150masl along ore bodies 11 and 5.
-- Backfilling of voids was carried out as the declines are
moving down and the blocks are mined.
The principal mining operations in the period were at ore bodies
6-8, ore body 5 and 11 at horizons 117masl, 134masl, and
150masl.
Both transport declines have been developed to 50masl with
expected continuation of this development in 2023 as shown on the
underground map of the mine.
In order to continue safe mining operations and enable efficient
engagement with the local environment, the following capital and
maintenance works were carried out at the mine site and surrounding
areas:
-- Connections were made to the local water supply and
maintenance carried on the water pumps.
-- The local stream was cleared and the bridge giving access to
the mine and the local village repaired. The main roads were also
repaired and cleared during the winter season.
-- The Company undertook the repair of the local stadium and
park zones of the local village from where the majority of the work
force are hired.
The key production figures are shown below:
Mining results ore extraction
2022 2021
Ore mined T 527,231 571,035
Gold grade g/t 2.17 1.94
Silver grade g/t 1.78 1.81
Contained gold oz 36,835 35,580
Contained silver oz 30,233 33,296
Mining results processing
2022 2021
Crushing T 574,614 534,426
Milling T 585,480 541,576
G old grade g/t 2.17 1.97
Silver grade g/t 1.64 1.63
Gold recovery % 83.43 83.05
Silver recovery % 72.87 73.54
Contained gold oz 40,782 34,258
Contained silver oz 30,927 28,408
Gold Poured oz 34,023 28,450
Silver poured oz 22,538 20,891
Exploration -- Teren-Sai
As mentioned above the Company is awaiting the extension of the
license for a three-year period therefore only a limited
exploration activity was carried out. In the period, 2,000 linear
metres of exploration drilling were carried out.
The areas of interest are No. 2,4 and 5 with area 2 being the
first target of development. A competent persons report was
conducted on this area in 2019. As noted previously, the results
from the test production obtained from open pit workings for Area
No. 2 indicated an average grade of 1.8g/t.
The exploration work carried out in the period under the
original 2016 license is as follows:
- exploratory pneumatic percussion drilling of 1,352 wells, with
a total volume of 67,581 running meters ;
- core drilling - 74 wells, with a total volume of 18,360
running meters ;
- sludge sampling - 33,791 samples;
- core sampling - 18,350 samples.
Based on the results of prospecting work conducted during the
reporting period, three prospective areas for the discovery of gold
mineralisation were identified in the ore field areas Nos. 2, 4 and
5.
In area No. 2, 25 major ore intersections were identified in 7
wells. In area No. 4, 15 major ore intersections were identified in
6 wells. In area No. 5, 14 major ore intersections were identified
in 14 wells.
The main tasks relating to the updated license consists of the
following geological and geophysical works:
- topographic and geodetic works;
- drilling of core wells;
- logging works;
- testing;
- laboratory and analytical work;
- Topographic tie-in of the 133 wells to be drilled;
- Geophysical research in 1,995 linear meters wells;
- Drilling operations (core inclined drilling) with a volume of
39,900 linear meters;
- Laboratory work on 50,474 samples;
- Other geological operations (development of design documents,
work, etc.)
The exploration activities are aimed at obtaining sufficient
geological data to make a preliminary estimate of mineral
resources, which will be followed by production.
Capital requirements
The Company raised a US$40m facility in order to fund its
capital requirements for 2023 as detailed in the table below:
-The principal focus will be on capacity expansion which entails
upgrading the processing plant and infrastructure. An extra
grinding mill and new underground mining equipment will also be
added. The mill is expected to be installed with minimal disruption
to existing operations in 2023 with the capex program extending
into 2024.
Regarding Teren-Sai, the current capex budget foresees
continuation of exploration at the site pending the approval of the
updated development plan. Further advancement of the project will
subsequently depend on raising additional funding.
Projected capital expenditure Total 2023 2024
US$m US$m US$m
Prospect drilling 4 2 2
Underground development 19 8 11
Infrastructure 2 2 -
Ore handling facilities 17 11 6
Process plant incremental expansion 2 1 1
Total 44 24 20
Longer term plan
The Company has had a successful year, with the capex investment
increasing ore extraction from the Sekisovskoye site which
increased to 570ktpa. The aim remains to move this up to 1mtpa, and
budgets have been drawn up and funds allocated to expand the
existing capacity of the processing plant to 1mtpa within two
years. The longer term aim is to increase the ore extraction
towards the 2mtpa within a time frame of 6 years.
The capex required as outlined above amounts to US$38m, and will
be largely met from funds raised from operations. In addition to
this an amount of US$75m will be required to bring the Teren-Sai
project on stream, as it will require new processing facilities and
infrastructure to be developed at the Teren-Sai site. In the
initial period the site will be stripped and made ready for open
pit production in order to move to production efficiently once the
necessary funding is in place. The brokers who are providing
sponsored research and opening up opportunities for investor
funding will play a key role in moving the projects forward.
The Board are constantly looking to diversify and invest in new
and complementary operations in Kazakhstan and internationally,
however the primary driver at present is to bring the Kazakhstan
gold sites, as outlined above, to their full potential.
FINANCIAL PERFORMANCE
Key performance indicators 2022 2021 2020
Annual gold sales Oz 34,499 27,747 16,535
Annual gold poured Oz 34,023 28,450 17,028
Revenue US$m 62 50.0 30.0
Operating cash cost of production US$oz 805 649 800
EBITDA US$m 21.9 26.4 13.5
Net Assets US$m 62.2 55.2 35.3
The production results at Sekisovskoye are encouraging with the
investment in the capital and more efficient working practices
increasing the key figures of mineral processing towards target
levels. Further investment is planned, with the funds received from
Bank Center Credit to increase the capacity of the process plant.
As this will be an add on to the existing structures there is no
disruption anticipated while the works are being carried out to
implement the upgrades.
Ore mined totalled 527,000t which was lower than the previous
year due to extreme weather. Part of the shortfall was covered by
stockpiles from prior years.
Gold poured increased 19.6 % to 34,023oz (2021: 28,450oz).
Recovery rate also improved to 83.43% (2021:83.05%).
During 2022, the Company sold 34,499oz of gold (2021: 27,747oz)
at an average price US$1,762per oz (2021:US$1,803). As such revenue
expansion was solely driven by volume increase in production. The
Company budgets a medium term price range of US$1,700 - US$1,800.
Total Company output was taken by the Kazakh national refinery In
line with the long standing off-take agreement. As in previous
years, sales were translated using the spot US$ exchange rate at
the point of sales.
The total cash cost of production which includes administrative
costs but excludes depreciation and provisions amounted to
US$1,160oz, (2021: US$834oz). The operating cash cost excluding
administrative costs amounted to US$805oz (2021: US$649oz).
>The administrative costs have increased by US$6.6m mainly as
a result of one off items. The Company sponsored projects worth
US$3.6m for the benefit of the community in line with central
government recommendations. A further US$3m was spent on mine
upgrade, ecological research, carbon offset programs and climate
change reporting. The expenditure on these projects is expected to
decline in the forthcoming 2023 period.
The Company realised a gross profit of US$29.3m (2021: US$27.8m)
and net profit before tax of US$13.4m (2021: US$18.3m).
Adjusted EBITDA decreased to US$21.9m (2021: US$26.4m) as a
result of the non-recurring increase in administrative costs
identified above. Details of the calculation are shown in note 13
of the financial statements.
Cash at year end was US$116,000 (2021: US$3.6m). Funds
utilization included US$9.7m change in working capital following
significant prepayments for equipment, US$6.4m bond and other loans
and interest repayment net of new loans and US$9.2m capital
additions. The Company raised funds post year end from the issue of
a bond on the Astana International Exchange (AIX), raising
US$9.4m.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2022
2022 2021
Note $000 $000
Revenue 3 62,037 50,290
Cost of sales (32,697) (22,496)
Gross profit 29,340 27,794
Administrative expenses (8,590) (4,648)
Administrative expenses -- sponsorship
programs (3,654) (490)
Impairments (82) (734)
Operating profit 17,014 21,922
Foreign exchange (504) (366)
Finance expense (3,096) (3,289)
Total finance cost (3,600) (3,655)
Profit before tax 13,414 18,267
Taxation receipt/(expense) (181) 56
Profit for the year attributable to the equity
holders of the parent 13,233 18,323
Profit per ordinary share
Basic 48.42c 11.27c
Diluted 48.42c 10.97c
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2022
2022 2021
Note $000 $000
Profit for the year 13,233 18,323
Items that may be reclassified subsequently
to the income statement
Currency translation differences arising on
translations of foreign operations (4,822) (1,491)
Currency translation differences on translation of
foreign operations relating to tax (1,408) 3,038
(6,230) 1,547
Total comprehensive profit for the year 7,003 19,870
Total comprehensive profit attributable to:
Equity holders of the parent 7,003 19,870
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2022
2022 2021
(Registration number: 05048549) Note $000 $000
Assets
Non-current assets
Intangible assets 5 12,698 13,346
Property, plant and equipment 6 36,975 35,350
Deferred tax assets 6,052 8,189
Trade and other receivables 14,600 3,925
Restricted cash 50 70
70,375 60,880
Current assets
Inventories 11,260 9,121
Trade and other receivables 16,622 21,530
Cash and cash equivalents 116 3,593
27,998 34,244
Total assets 98,373 95,124
Equity and liabilities
Current liabilities
Trade and other payables (6,253) (5,684)
Provisions (263) (232)
Loans and borrowings (13,611) (15,087)
(20,127) (21,003)
Non-current liabilities
Vat payable (332) (242)
Other payables (688) (1000)
Provisions (5,517) (5,453)
Loans and borrowings (9,501) (12,221)
(16,038) (18,916)
Total liabilities (36,165) (39,919)
Equity
Share capital (4,267) (4,267)
Share premium (152,839) (152,839)
Merger reserve 282 282
Other reserves - -
Foreign currency translation reserve 57,642 51,412
Accumulated losses 36,974 50,207
Equity attributable to owners of the company (62,208) (55,205)
Total equity and liabilities (98,373) (95,124)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2022
Currency
Share Share Merger translation Other Accumulated Total
capital premium reserve reserve reserves losses equity
$000 $000 $000 $000 $000 $000 $000
At 1 January
2021 4,267 152,839 (282) (52,959) 333 (68,863) 35,335
Profit for the
year -- -- -- -- -- 18,323 18,323
Other
comprehensive
loss -- -- -- 1,547 -- -- 1,547
Total
comprehensive
loss -- -- -- 1,547 -- 18,323 19,870
Share options
exercised -- -- -- -- (333) 333 --
At 31 December
2021 4,267 152,839 (282) (51,412) -- (50,207) 55,205
At 1 January
2022 4,267 152,839 (282) (51,412) -- (50,207) 55,205
Profit for the
year -- -- -- -- -- 13,233 13,233
Other
comprehensive
income -- -- -- (6,230) -- -- (6,229)
Total
comprehensive
income -- -- -- (6,230) -- 13,233 7,004
Transfer to
reserves -- -- -- -- -- -- --
At 31 December
2022 4,267 152,839 (282) (57,642) -- (36,974) 62,208
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2022
2022 2021
$000 $000
Cash flows from operating activities
Net cash flow from operating activities 12,234 6,797
Cash flows from investing activities
Acquisitions of property plant and equipment (8,948) (5,495)
Acquisition of intangible assets (240) (837)
Net cash flows from investing activities (9,188) (6,332)
Cash flows from financing activities
Interest paid (2,388) (2,411)
Loans received 11,025 6,356
Loans repaid (15,028) (7,985)
Net cash flows from financing activities (6,391) (4,040)
Net (decrease)/increase in cash and cash equivalents (3,345) (3,575)
Cash and cash equivalents at 1 January 3,593 7,154
Effect of exchange rate fluctuations on cash held (132) 14
Cash and cash equivalents at 31 December 116 3,593
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
1 General information
AltynGold Plc (the "Company") is a Company incorporated in
England and Wales under the Companies Act 2006. The financial
information set out above for the years ended 31 December 2022 and
31 December 2021 does not constitute statutory accounts as defined
in Section 434 of the Companies Act 2006, but is derived from those
accounts. Whilst the financial information included in this
announcement has been compiled in accordance with international
financial reporting standards adopted pursuant to Regulation (EC)
in conformity with the requirements of the Companies Act 2006, this
announcement itself does not contain sufficient financial
information to comply with IFRS. A copy of the statutory accounts
for 2021 has been delivered to the Registrar of Companies and those
for 2022 will be layed before the shareholders at the Annual
General Meeting. The full audited financial statements for the
years end 31 December 2022 and 31 December 2021 do comply with
IFRS.
2 Going concern
The Group increased turnover in the year to US$62m, generating
an EBITDA of US$21.9m (2021 US$26.4m) . The EBITDA was lower than
the prior year due to additional costs incurred in the period.
Additional amounts were paid in relation to government initiated
sponsorship of community projects, these amounted to US$3.6m,
together with fees paid in relation to project appraisals and
consultancy amounting to US$3m. These fees are not expected to be
at the same level in future years.
In summary the EBITDA was utilised in repayment of debt, falling
from US$27.4m to US$23.1m, the investment in capital equipment of
US$9m , and advances to suppliers to commence works at Sekisovskoye
resulted in an increase of working capital of US$8m. As the US$10m
Bond was repaid in December 2022, this resulted in a low cash
balance at the year end of US$116,000 (2021: US$3.6m).
The Board have reviewed the Group's forecast cash flows for the
period to June 2024, which include the capital and interest
repayments to be made in relation to the Group's borrowings. The
bank loans to fund the increase in production have been agreed with
capital repayment holidays to allow production to increase before
principal loan repayments are required. In addition the Company has
raised further funds amounting to US$10m by placing a bond on AIX
in April 2023 to provide additional working capital to fund
operations in its growth stage.
Capital and operating costs are based on approved budgets and
latest forecasts and development plans. Based on the Group's cash
flow forecasts, the Directors believe that the, net cash flows from
operations, and increased production based on projections of future
growth, are sufficient for the Company to achieve its current plans
and cash requirements including the repayment of loans which are
due for repayment in the period.
The Board have considered possible stress case scenarios that
they consider may be likely to impact on the Group's operations,
financial position and forecasts. Factors considered are factors
that may lower the production at the mine and possible impact on
the price of gold if this was to fall. From the analysis undertaken
the Board have concluded that Group will be able to continue to
trade by the careful management of its existing resources. The
stress tests included the following scenarios amongst others, a
fall in the gold price by 10% from current levels, a drop in
budgeted production by 10% or a combination of both factors
together. In each case the Group would not experience a cash
shortfall in either scenario. If required the Group would manage
its resources, reducing investment and managing its payables in
order to maintain liquidity.
The Board therefore considers it is appropriate to adopt the
going concern basis of accounting in preparing these financial
statements.
3 Revenue
The analysis of the Group's revenue for the year from continuing
operations is as follows:
2022 2021
$000 $000
Sale of gold and silver 61,053 50,031
Other sales 984 259
62,037 50,290
Included in revenues from sale of gold and silver are revenues
of US$61,053,000 (2021: US$50,031,000) which arose from sales of
precious metals to one customer based Kazakhstan. Other sales
amounted to US$984,000 (2021: US$259,000) and related to lease and
rental income.
4 Profit per ordinary share
The calculation of basic and diluted earnings per share from
continuing operations is based upon the retained profit from
continuing operations for the financial year of US$13.2m (2021:
US$18.3m).
The weighted average number of ordinary shares for calculating
the basic earnings per share in 2022 and 2021 is shown below.
2022 2021
No. No.
Basic 27,332,933 27,332,933
Diluted 27,332,933 27,332,933
5 Intangible assets
Teren-Sai Exploration and
geological data evaluation costs Total
Group US$000 US$000 US$000
Cost or valuation
At 1 January 2021 9,026 8,650 17,676
Additions -- 830 830
Amortisation capitalised -- 585 585
Currency translation (225) (240) (465)
At 31 December 2021 8,801 9,825 18,626
At 1 January 2022 8,801 9,825 18,626
Additions -- 240 240
Amortisation capitalised -- 541 541
Currency translation (589) (654) (1,243)
At 31 December 2022 8,212 9,952 18,164
Amortisation
At 1 January 2021 4,662 165 4,827
Amortisation charge 585 -- 585
Currency translation (125) (7) (132)
At 31 December 2021 5,122 158 5,280
At 1 January 2022 5,122 158 5,280
Amortisation charge 541 -- 541
Currency translation (343) (12) (355)
At 31 December 2022 5,320 146 5,466
Carrying amount
At 31 December 2022 2,892 9,806 12,698
At 31 December 2021 3,679 9,667 13,346
At 1 January 2021 4,364 8,485 12,849
The value of the geological data purchased is in the opinion of
the Directors the value that would have been incurred if the
drilling had been undertaken by a third party (or internally). The
Company has continued to develop the site with a CPR completed in
2019 on one of the fifteen target zones area 2, which includes 3
potential targets, and further exploration works in the other
areas. Full details are given in the mineral resources statement
included as part of the Annual Report. A two years extension to
continue to explore the area has been applied for, the approval is
expected to be received in H2 2023.
The directors consider that no impairment is required taking
into account the CPR results, exploration and planned production in
the future. The write off of the geological data over the period of
the licence to the end of the extended licence period.is
appropriate. After that period the costs amortised are capitalised
in line with the Company's accounting policy within the subsidiary
TOO GMK Altyn MM LLP, there are no impairment indicators.
The bank loan from Bank Center Credit is secured in the assets
of the Group.
.
6 Property, plant and equipment
Equipment, Plant,
Freehold fixtures machinery
Mining Land and and and Assets under
properties buildings fittings buildings construction Total
Group US$000 US$000 US$000 US$000 US$000 US$000
Cost or
valuation
At 1 January
2021 13,264 24,050 11,780 9,322 1,973 60,389
Additions 3,356 197 2,147 653 2,187 8,540
Disposals -- -- (655) (4) -- (659)
Transfers -- 1,441 -- -- (1,441) --
Transfer from
inventories -- -- -- -- 170 170
Currency
translation (611) (654) (203) (261) (67) (1,796)
At 31
December
2021 16,009 25,034 13,069 9,710 2,822 66,644
At 1 January
2022 16,009 25,034 13,069 9,710 2,822 66,644
Additions 3,936 42 837 6 4,295 9,116
Disposals -- -- (476) (33) -- (509)
Transfers -- 4,387 187 65 (4,639) --
Transfer from
inventories -- -- -- -- (16) (16)
Currency
translation (1,584) (1,673) (929) (674) (183) (5,043)
At 31
December
2022 18,361 27,790 12,688 9,074 2,279 70,192
Depreciation
At 1 January
2021 2,869 11,371 9,182 4,875 -- 28,297
Charge for
year 699 2,188 817 782 -- 4,486
Eliminated on
disposal -- (2) (655) (4) -- (661)
Currency
translation (218) (238) (239) (133) -- (828)
At 31
December
2021 3,350 13,319 9,105 5,520 -- 31,294
At 1 January
2022 3,350 13,319 9,105 5,520 -- 31,294
Charge for
the year 800 2,128 893 770 -- 4,591
Eliminated on
disposal -- -- (464) (33) -- (497)
Currency
translation (227) (986) (590) (368) -- (2,171)
At 31
December
2022 3,923 14,461 8,944 5,889 -- 33,217
Carrying
amount
At 31
December
2022 14,438 13,329 3,744 3,185 2,279 36,975
At 31
December
2021 12,659 11,715 3,964 4,190 2,822 35,350
At 1 January
2021 10,395 12,679 2,598 4,447 1,973 32,092
Capitalised cost of mining property are amortised over the life
of the licence from commencement of production on a unit of
production basis. This basis uses the ratio of production in the
period compared to the mineral reserves at the end of the period.
Mineral reserves estimates are based on a number of underlying
assumptions, which are inherently uncertain. Mineral reserves
estimates take into consideration estimates by independent
geological consultants. However, the amount of mineral that will
ultimately be recovered cannot be known until the end of the life
of the mine.
Any changes in reserve estimates are, for amortisation purposes,
treated on a prospective basis. The recovery of the capitalised
cost of the Company's property, plant and equipment is dependent on
the development of the underground mine.
The Directors are required to consider whether the non-current
assets comprising, mineral properties, plant and equipment have
suffered any impairment. The recoverable amount is determined based
on value in use calculations. The use of this method requires the
estimation of future cash flows and the choice of a discount rate
in order to calculate the present value of the cash flows. The
directors considered entity specific factors such as available
finance, cost of production, grades achievable, and sales price.
The directors have concluded that no adjustment is required for
impairment.
The bank loan from Bank Center Credit is secured on the assets
of the Group.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20230505005209/en/
CONTACT:
AltynGold Plc
SOURCE: AltynGold Plc
Copyright Business Wire 2023
(END) Dow Jones Newswires
May 05, 2023 08:19 ET (12:19 GMT)
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