TIDMAMC
RNS Number : 9102S
Amur Minerals Corporation
30 September 2014
30 September 2014
AMUR MINERALS CORPORATION
(AIM: AMC)
Interim Financial Results 2014
Amur Minerals Corporation ("Amur" or the "Company"), the
nickel-copper exploration and development company focused on base
metal projects located in the Far East of Russia, is pleased to
announce its results for the six months ended 30 June 2014.
Financially, the Company remains debt free and funded.
Exploration has now defined the presence of more than 830,000
tonnes of nickel equivalent metal placing it among the 20 largest
nickel sulphide projects in the world. Even with this upgrade in
our ranking, substantial potential for further expansion of the
Resource remains immediately adjacent to the drilled deposits and
in areas lying between the five deposits that have been drilled to
date.
The Company is well positioned to resume detailed exploration at
Kun-Manie once the mining licence is awarded. The site has been
restocked with necessary fuel and spare parts allowing the Company
to be prepared to undertake additional field exploration work on a
short term notice basis.
Extensive engineering work has also been implemented to update
the 2007 Pre Feasibility Study ("PFS") compiled by SRK Consulting
Ltd. Additional engineering results in the area of metallurgy,
changes in Russian legislation, and a substantial increase in the
Resource base have allowed us to also expand our Reserve. This has
included a comprehensive recalculation of the currently projected
operating costs which now account for inflation and operation
changes to account for information that has been acquired since the
2007 PFS was issued.
The expansion of the Resource and Reserve has also presented the
Company with the opportunity to expand the annual nominal
throughput capacity permitting reduction in unit costs as related
to the Economies of Scale. Presently the operation is envisioned to
mine and process 6.0 million tonnes of ore per year wherein a
simple single sulphide concentrate is generated for onward sale to
a contract smelter. Additional modifications to the design basis
have included a substantial upgrade in the access road design to
handle the additional production requirements, on site power
generation rather than the construction of an expensive and long
lead time power line, and relocation of the processing plant to a
location allowing for increased tailing storage and to be more
centrally located to all mineralised deposits.
These developments have necessitated in a comprehensive update
of the PFS by the Company and now include updated operating and
capital cost estimates based on Q1 2014 USD. The internally derived
study is under management and Board review and results will be
released when finalised. It is the intention of the Company to
undertake an independent audit of the report by a qualified
organisation.
We have also remained focused on obtaining our mining production
licence covering a 36 kilometre area which contains all drill
resources and reserves as well as areas that potentially host
additional deposits and undrilled areas immediately adjacent to
existing holes containing ore located at the limits of the drill
identified mineralisation. Presently the application of the
production licence is being reviewed by the Ministry of Economic
Development which is the last of four agencies tasked with
reporting to Rosnedra.
The outlook remains highly positive and the Board remains
positive that we will ultimately be awarded our production licence
allowing us to advance to the next stage of development of
Kun-Manie. This would be the development of a bankable study and
further detailed engineering work including the assessment of the
construction of our own flash smelter or hydrometallurgical
recovery process.
Mr. Robin Young, CEO of Amur Minerals Corporation states;
"We are at a point where multiple tasks are coming to completion
simultaneously. The award of the production licence will certainly
change Amur from an explorer to a pre-production focused company.
It is very rare that a Company discovers an economically viable
operation, in fact recent annual discovery rates of major deposits
has declined to range from 10 to 20 per year most of which are gold
deposits. Our discovery presents Amur with a rare opportunity for a
pure junior explorer to become a nickel sector player. We thank the
shareholders for their continued support and perseverance."
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals S.P. Angel Yellow Jersey
Corp. Corporate Finance
LLP
Robin Young Ewan Leggat Dominic Barretto
CEO Laura Harrison Kelsey Traynor
+44 (0) 7981 +44 (0) 20 +44 (0) 77
126 818 3463 2260 6853 7739
Chairman's Statement
Dear Shareholder:
It is with pleasure that I take this opportunity to update
shareholders of Amur Minerals Corporation on the Company's
financial review during the first six months of 2014 and activities
summary through the present.
For the six month period, our activities have been focused on
two primary areas with the primary objective of the Company's being
its efforts to convert a 36 square kilometre area of our 950 square
kilometre exploration licence to that of a "Detailed Exploration
and Production Licence" on our Kun-Manie nickel copper sulphide
project in the Russian Far East. Equally as important is the
ongoing update of our 2007 SRK Consulting Ltd ("SRK")
Prefeasibility Study ("PFS") which is under final review by the
Board of Directors and executive management.
2014 Mid-Year Highlights
-- The Company is set up to begin exploration site work on a short notice basis.
-- Resources and Reserves have been substantially expanded and
there is a high prospect for further expansion of both with step
out and infill drilling.
-- The proposed operational design is being modified.
-- Power will be generated onsite.
-- The proposed access road design has been upgraded to account
for expansion in the resources and reserves.
-- The annual production rate of the proposed operation has been
increased from 4 to 6 million tonnes of ore per year.
-- New Russian legislation has reduced the net profits tax and
metals extraction tax (Royalty).
-- Operating costs have been updated to a Q1 2014 basis.
-- Zeppelin heavy lift is being considered and could eliminate
the need to construct and access road.
-- An updated internal prefeasibility study is under review by
the Board of Directors and Executive Management, results will be
announced and subsequently audited by an independent
contractor.
-- The conversion from an exploration licence to that of a
production licence continues through the award process.
Field Operations
In March 2014, the Company restocked the Kun-Manie site with
fuel, spares and supplies using the annually constructed ice road.
All equipment has been repaired and is readied for our next field
season and the initiation of our resumption of road and drill site
construction and site support once the mining licence is awarded.
Until issuance of the mining licence and necessary approvals, the
Company intends to remain focused on the engineering aspects of the
proposed design and preparing additional filings for the various
Russian agencies that are required post mining licence award.
Technical Assessment
In 2007, SRK Consulting LTD ("SRK") completed a positive
Prefeasibility Study ("PFS") based on the available technical and
economic information as well as specific project assumptions.
During the last six years, a financial market crash, inflation,
substantial increases in the resources and reserves, metallurgical
recovery improvements, reduction in taxation, reduction in
royalties and key assumptions have resulted in the study being
considered to be outdated.
With newly acquired post 2007 PFS information and the issuance
of the December 2013 resource update, the Company began a
comprehensive internal review of the PFS. The review and additional
information acquired since 2007 has resulted in our redesign of the
base case operation and subsequent assessment of the proposed
Kun-Manie operation. This internally compiled report is presently
being reviewed by the Board of Directors and Executive Management.
Once approved, it is the intent of the Company to have it reviewed
by qualified external consultants.
Resources and Reserves
The Kun-Manie nickel copper sulphide project ranks among the 20
largest nickel sulphide projects in the world. Exploration within
the mining licence area remains highly prospective with the limits
of mineralisation along strike and down dip not yet being
established at four of our five drilled deposits. The potential for
reserve expansion is also substantial. As reserves are based solely
on the specific resource classes of Measured and Indicated, the
immediately adjacent Inferred Resources could well contribute
substantially to the Reserve. A summary of highlights follow:
-- Since the issuance of the 2007 PFS, the global JORC Resource
has been increased by 76% bringing the mineralised tonnage to 120.8
million, 91% to a total of 650,600 tonnes contained nickel and 87%
to a total of 178,400 total tonnes of copper. The average grade per
ore tonne for nickel is 0.54% and for copper is 0.15%. Platinum
Group Metals (PGM's) are projected to be 16.9 tonnes of platinum
and palladium.
-- The combined Measured and Indicated Resources total 50.1
million tonnes containing 268,000 tonnes of nickel, 72,000 tonnes
of copper and a combined total of 15.2 tonnes for the PGM's. The
remaining 70.7 million tonnes of mineralised material are
classified as Inferred resources and successful infill drilling is
required to upgrade its classification for consideration in the
definition of Reserves.
-- Operating costs have been updated and are now projected to
total approximately $US 42.12 per ore tonne and have been used to
define the currently defined Reserve.
-- Metallurgical recoveries of all metals have been improved and
the net profit tax has been reduced from 24% to 0% for the first
five years of operation and increasing to a maximum of 10%. MgO
penalties at the smelter will be reduced as test work indicates it
can be suppressed to a greater degree. Royalties for production
have been substantially reduced. These parameters are an integral
part of the determination of Reserves.
-- The increase in operating costs is offset by the improved
metallurgical recoveries, reduced smelter penalties and reduced
royalties.
-- Pit-optimisation has defined the potential presence of a
combined Proved and Probable Reserve of 39.2 million tonnes of ore
containing 219.1 thousand tonnes of nickel at an average grade of
0.56% nickel, 58.1 thousand tonnes at an average grade of 0.15%
copper, and 11.6 tonnes of PGM's. Nearly 80% of the Measured and
Indicated Resources are projected to be mineable. Within the
Reserve, approximately 35% is considered to be within the Proved
Reserve class with the remainder being considered to be Probably
Reserve. (Note: the updated Reserve has been calculated by the
Company and is not considered to be JORC compliant until a sign off
by a Competent Person (as defined by the JORC Code)).
-- The Reserve has been delimited using the Earnings Before
Interest, Tax, Depreciation, and Amortisation ("EBITDA") and a
maximum stripping ratio of 20 tonnes of waste per tonne of ore.
Based on Q1 2014 costs and the newly acquired results from various
technical studies, the EBITDA is projected to range from $732
million to $1.057 billion. Respective nickel prices used to
establish the EBITDA are $18,730 per tonne and $20,940 per tonne
for nickel.
-- Substantial potential remains to increase both the Resource
and Reserve at Kun-Manie. Successful infill drilling converting
Inferred Resources to Measured and Indicated will likely increase
the currently defined pits along strike. This is specifically the
case at Maly Kurumkon/Flangovy and Ikenskoe/Sobolevsky. Kubuk may
also contribute substantially to the reserve with successful infill
drilling. Kubuk is currently only drilled to the extent that it is
classified as Inferred Resources thereby not contributing to the
Reserve.
-- There is also highly prospective ground located immediately
adjacent to resources where drilling has not yet defined the limits
of mineralisation. This is the case at all but one deposit,
Vodorazdelny. The increase in Resources could lead to an even
greater expansion of the Reserve.
Operational Design Updates
In our review of the 2007 PFS and based on advances since the
study, the base case design is being modified. These modifications
substantially change the operational design and include the
following:
-- The Resources and Reserves at Maly Kurumkon/Flangovy and
Ikenskoe/Sobolevsky have added substantially to the resource and
reserve base. There have also been the discoveries at Gorny and
Kubuk. The additional contribution to resources and ultimately to
reserves indicates that the processing plant needs to be relocated
to a more central location and to allow for the need of a
substantial increase in the ability to store more tailings.
-- The relocation of the plant will require greater haulage
distances which have been included in the updated Q1 2014 operating
costs.
-- Projections of the ultimate reserve potential indicate that
the annual throughput of 4.0 million tonnes can potentially be
increased to 6.0 million tonnes thereby increasing metal production
by 50% per annum and taking advantage of the economy of scale. This
will also increase the amount of concentrate generated and the need
for transport to the Baikal Amur rail system located to the west of
Kun-Manie.
-- All facilities have been upgraded to handle the production
increase to 6.0 million tonnes of ore per year. This also includes
a substantial increase in the mobile mining fleet to enable
handling of the increased production tonnage and increased ore haul
distance to the new plant site location.
-- The Russian utility companies responsible for construction of
the power line from the Zeya hydroelectric dam to the site will
construct the (more than 360 kilometre long power line) to the site
with the Company having to fund to the construction. This is a
substantial change to the 2007 study where the utility company
would construct the line at their cost. The high cost of
construction per kilometre (up to $US 1 million per kilometre) has
resulted in the decision to generate power onsite using diesel
(black oil). The evaluation indicates this alternative to be
substantially less capital intensive and provides less exposure to
intermittent power drop outs related to inclement weather.
-- The expansion of the production capacity from 4.0 to 6.0
million tonnes per annum will require an increase of 50% in
operational supplies to be delivered to site and the need to handle
the transport of the additional fuel for power generation. Also,
the amount of concentrate to be transported will substantially
increase. As a result, the 2007 road design is inadequate to
support the enhanced operation and has been substantially upgraded.
The proposed design will allow for handling the necessary transport
of all materials to and from the site and will be upgraded to
ensure year round access which will include emergency stop over
stations and a greater compliment of road maintenance equipment and
staffing.
In the last quarter of 2013 and early first quarter of 2014, the
Company began to investigate a developing innovative transport
system, heavy lift zeppelins. Research indicated that the
development of the zeppelin system was rapidly advancing. The
system possesses multiple significant and substantial benefits to
the Company. Benefits would include:
-- The potential elimination of the need to construct the access
road - successful implementation of the system would preclude the
need for the construction of the access road which ranges from $US
250,000 to $US 1,000,000 per kilometre.
-- The system also substantially reduces the environmental
footprint necessary for construction of the road.
-- Concentrate could be directly delivered to a port whilst
supplies and personnel would be hauled to the site on its
return.
-- It would eliminate the longer lead time to survey, engineer and construct the access road.
In light of the zeppelin potential, the Company conducted a site
visit to Aeroscraft Corporation in Monte Bello, California to
inspect the development of the system and its potential. With the
potential to substantially reduce up-front initial capital
expenditure for the road and the longer lead time to construct the
road, AMC entered into a Memorandum of Understanding ("MOU") to
participate as a launch partner in the development of the
system.
Two additional Russian regulatory changes have been instituted
during the first half of this year. One is the reduction of the net
profit tax (0% for the first five years) and the other is the
reduction of the metals extraction tax (a reduction of 50% over the
first 10 years of operation). These incentives have been
implemented to encourage investment in the Far East.
Detailed Exploration and Production Licence Update
The Company possesses an exploration licence on the mineral
rights of Kun-Manie which expires 31 December 2014. The Company has
compiled a TEO (Sibsvetmetniproyect, the certified Russian
institute) which was reviewed and approved by the State Committee
on Reserves ("GKZ"). In 2008 and based on the GKZ approval, a
Certificate of Discovery ("Certificate") was awarded by Rosnedra.
Within one month of the award of the Certificate, the Company
applied for a production licence. By submitting its application
within the 30 day period, the Company is granted the right to
production without the need of going to an auction and we maintain
first right of refusal on production. Should the exploration
licence expire prior to the award of the "Detailed Exploration and
Production Licence", the Company maintains the production rights to
the property. The production licence application includes a 36
square kilometre area within the limits of the 950 square kilometre
exploration licence area.
In addition, our project is classified as a Strategic Project
based on implemented Russian regulations in 2008. During the last
four years, the Company has been working with various agencies
responsible for the award and conversion of an exploration licence
to that of a production licence. A Strategic Project requires
substantially more information and work to convert from exploration
to production. AMC is the first Company (Russian or western) that
has undertaken the process to convert an exploration licence issued
before enactment of the Strategic Law to that of a production
licence subsequent to the implementation of the Strategic Law.
During the period since the original submission of our
application, multiple modifications have been implemented by the
Ministry of Natural Resources ("MNR") which has necessitated
modification to our documentation to ensure the process is fully
completed as per Russian regulatory requirements. During the course
of this year, we have accomplished a great deal in advancing
through the licence conversion process regarding a Strategic
Project. This has been accomplished in combination with extensive
assistance and guidance from Rosnedra. It has certainly been a team
effort.
Key recent accomplishments include the following:
-- In April 2014, the Company appointed Mr. Randolph Lewis to
President of Russian Operations. His addition provided a full time
presence in Moscow allowing us to respond promptly to impromptu
meetings required to move the process forward. This along with his
success and experience in working with the various Russian
licencing agencies has been invaluable to AMC.
-- Amurnedra provided a NTS Protocol, which provides a review
and approval that the Company has met its exploration licence
obligations. This is a key document for the conversion process and
allows the Company to fully identify the area for conversion to
production while simultaneous returning the territory that is no
longer desired by the Company. Amurnedra is a subsidiary of
Rosnedra and is responsible for confirming the work and results of
the Company.
-- The Certificate of Discovery was reissued by Rosnedra. This
update was undertaken to ensure that all by-product metals could be
recovered by the Company as the previously issued Certificate
stated "associated metals". The specific recoverable metals were
added to the Certificate ensuring that the Company could recover
revenues for all metals and that the Russian government would
qualify to recover royalties.
-- An updated one time conversion payment was recalculated by
Rosnedra affiliates based on the new Certificate. This payment is
the fee to convert from an exploration licence to that of a
production licence. It was estimated that the payment would be 23.6
million Roubles (approximately US$655,000) due within 30 days of
the registration of the production licence.
-- All documentation and approvals must be less than six months
old upon award of the licence. The Company provided updated
information covering the period since the last reviews for various
agency reviews required of Strategic Projects. Presently, the
Company has updated approval reports from the Anti-Monopoly Board
("FAS"), the Federal State Security Bureau ("FSB") and the Ministry
of Defense ("MOD"). The fourth and final external agency that must
report to Rosnedra is the Ministry of Economics ("MED") which has
been provided the application by Rosnedra. This review includes a
review of the terms and conditions of the licence as well as an
overview of the environmental protection considerations. It is
noted that MED no longer calculates the one time licence conversion
payment.
Upon approval by MED, Rosnedra will collate the four reports and
provide its recommendation to its parent organisation, the Ministry
of Natural Resources ("MNR") for review and approval. From the MNR,
a recommendation is provided to the Russian Government for final
approval by Mr. Dmitry Medvedev. The approval by Mr. Medvedev (or
his designate), completes the application process in converting our
36 square kilometre area to a production licence.
Financial Overview
The Company remained debt free throughout 2014 with cash
reserves of US$1.018 million as at 30 June 2014. The Directors have
prepared a cash flow projection for the next 12 months which
indicate that the Group is sufficiently funded by its current
financial resources, which comprise cash and derivative financial
assets. The amounts receivable under the derivative financial asset
varies with share price. The Group has completed the exploration
phase and is awaiting the approval of the mining licence before any
significant further capital expenditure.
During the first half of the year the Company received the four
settlements from the Lanstead Capital LLP ("Lanstead") financing
agreement entered into during February 2012, totalling US$173,000.
The Company also received US$4,000 from a single settlement
received from the Lanstead financing agreement entered into in July
2013.
Outlook
Into the foreseeable future, the Company will continue to work
on advancing Kun-Manie on several fronts. These can be broadly
divided into three areas. These are the on-going activities on
site, assessment and development of an updated operating plan for
Kun-Manie and obtaining the mining licence.
Mr. Robert W. Schafer
Non Executive Chairman
29 September 2014
Independent Review Report
To the shareholders of Amur Minerals Corporation
Introduction
We have been engaged by the Company to review the consolidated
financial information in the interim financial report for the six
months ended 30 June 2014 which comprises the consolidated
statement of financial position, the consolidated statement of
comprehensive income, the consolidated statement of cash flows, the
consolidated statement of changes in equity and the related
notes.
We have read the other information contained in the interim
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the financial information.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the Directors. The Directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on the Alternative
Investment Market which require that the interim report be
presented and prepared in a form consistent with that which will be
adopted in the Company's annual accounts having regard to the
accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the consolidated financial information in the interim financial
report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on the Alternative Investment Market and for no other purpose. No
person is entitled to rely on this report unless such a person is a
person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised
to do so by our prior written consent. Save as above, we do not
accept responsibility for this report to any other person or for
any other purpose and we hereby expressly disclaim any and all such
liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity",
issued by the Auditing Practices Board. A review of interim
financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the consolidated financial information in
the interim financial report for the six months ended 30 June 2014
are not prepared, in all material respects, in accordance with the
rules of the London Stock Exchange for companies trading securities
on the Alternative Investment Market.
Emphasis of matter - grant of mining licence
In forming our review conclusion, which is not modified, we have
considered the adequacy of the disclosures in note 3 to the
financial statements concerning the outcome of the licence
application at Kun-Manie. Since acquiring the licence in 2004 the
Group has met all of the requirements of the exploration licence
and applied for a mining licence in 2010. The realisation of the
historic costs incurred to date in the exploration assets is
dependent upon the successful application for a mining licence
which has not yet been granted. The ultimate outcome of this matter
cannot presently be determined.
BDO LLP
Chartered Accountants and Registered Auditors
London,
United Kingdom
29 September 2014
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDADTED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
30 June 30 June 31 December
2014 2013 2013
NON-CURRENT ASSETS
Capitalised exploration
costs 18,665 17,066 18,318
Property, plant and
equipment 520 742 637
Total non-current
assets 19,185 17,808 18,955
----------- ----------- -------------
CURRENT ASSETS
Other receivables 77 148 188
Inventories 428 487 269
Derivative financial
asset 3,994 3,107 8,225
Cash and cash equivalents 1,018 2,191 2,392
----------- -------------
Total current assets 5,517 5,933 11,074
----------- ----------- -------------
Total assets 24,702 23,741 30,029
=========== =========== =============
CURRENT LIABILITIES
Trade and other payables 350 223 123
Total current liabilities 350 223 123
----------- ----------- -------------
SHAREHOLDERS' EQUITY
Share capital 48,949 40,946 48,949
Share premium 6,473 6,613 6,473
Share options reserve 2,306 1,710 2,086
Retained deficit (29,070) (21,974) (23,802)
Foreign exchange
translation reserve (4,306) (3,777) ( (3,800)
Total shareholders'
equity 24,352 23,518 29,906
----------- ----------- -------------
Total liabilities
and shareholders'
equity 24,702 23,741 30,029
=========== =========== =============
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(Amounts in thousands of US Dollars)
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
2014 2013 2013
Other administrative
expenses (871) (945) (1,668)
Share based payment (343) (634) (871)
Total administrative
expenses (1,214) (1,579) (2,539)
Loss from operations (1,214) (1,579) (2,539)
Finance expense (355) (895) (1,141)
Fair value gain/(loss)
on derivative financial
assets (3,699) 455 (151)
Loss before tax (5,268) (2,019) (3,831)
Taxation - - -
Loss for the period attributable
to owners of the parent (5,268) (2,019) (3,831)
============= =========== ============
Other Comprehensive income:
Exchange differences
on translation of foreign
operations which could
subsequently be reclassified
to profit or loss (506) (1,339) (1,362)
Total comprehensive loss
for the period attributable
to owners of the parent (5,774) (3,358) (5,193)
============= =========== ============
Loss per share: basic US$ (0.012) US$ (0.006) US$ (0.009)
& diluted
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 2014 30 June 2013 2013
Cash flow from operating
activities:
Payments to suppliers
and employees (932) (698) (1,556)
Net cash used in operating
activities (932) (698) (1,556)
-------------- -------------- -------------
Cash flow from investing
activities:
Payment for property,
plant and equipment - (86) (70)
Payments for capitalised
exploration expenditure (840) (1,113) (2,245)
Net cash used in investing
activities (840) (1,199) (2,315)
-------------- -------------- -------------
Cash flow from financing
activities:
Proceeds from issue of
equity shares (net of
issue costs) - - 1,832
Settlements of derivative
financial asset 532 3,135 3,551
Finance expense (355) (895) (1,141)
Net cash from financing
activities 177 2,240 4,242
-------------- -------------- -------------
Net change in cash and
cash equivalents (1,595) 343 371
Cash and cash equivalents
brought forward 2,392 2,048 2,048
Foreign exchange effects 221 (200) (27)
Cash and cash equivalents
carried forward 1,018 2,191 2,392
============== ============== =============
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(Amounts in thousands of US Dollars)
Foreign exchange
Share Share translation reserve
Share capital premium options reserve Retained deficit Total
------------- -------- ----------------- ------------------ --------------------- -------
At 1 January 2014 48,949 6,473 2,086 (23,802) (3,800) 29,906
Loss of the period - - - (5,268) - (5,268)
Comprehensive income
for the period - - - - (506) (506)
Equity settled share
based payments
associated with issue
of shares - - (123) - - (123)
Equity settled share
based payments - - 343 - - 343
At 30 June 2014
(unaudited) 48,949 6,473 2,306 (29,070) (4,306) 24,352
============= ======== ================= ================== ===================== =======
At 1 January 2013 40,902 6,613 1,256 (20,135) (2,438) 26,198
Loss for the period - - - (2,019) - (2,019)
Other comprehensive
income for the period - - - - (1,339) (1,339)
Share options expired
in the period - - (180) 180 - -
Equity settled share
based payments - - 634 - - 634
Shares issued for
services 44 - - - - 44
At 30 June 2013
(unaudited) 40,946 6,613 1,710 (21,974) (3,777) 23,518
============= ======== ================= ================== ===================== =======
At 1 January 2013 40,902 6,613 1,256 (20,135) (2,438) 26,198
Loss for the year - - - (3,831) - (3,831)
Other comprehensive
income for the year - - - - (1,362) (1,362)
Shares issued 8,047 - - - - 8,047
Share options expired
in the year - - (164) 164 - -
Equity settled share
based payments - - 871 - - 871
Equity settled share
based payments
associated with issue
of shares - (123) 123 - - -
Costs associated with
issue of share
capital - (17) - - - (17)
------------- -------- ----------------- ------------------ --------------------- -------
At 31 December 2013
(audited) 48,949 6,473 2,086 (23,802) (3,800) 29,906
============= ======== ================= ================== ===================== =======
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(Amounts in thousands of US Dollars)
1. Reporting Entity
Amur Minerals Corporation (the "Company") is a company domiciled
in the British Virgin Islands. The consolidated interim financial
information as at and for the six months ended 30 June 2014
comprise the Company and its subsidiaries (together referred to as
the "Group").
The consolidated financial statements of the Group as at and for
the year ended 31 December 2013 are available upon request from the
Company's registered office at Kingston Chambers, P.O. Box 173,
Road Town, Tortola, British Virgin Islands, from offices of RBC
Europe Limited, Riverbank House, 2 Swan Lane London EC4R 3BF or at
www.amurminerals.com.
2. BASIS OF PREPARATION
The financial information set out in this report is based on the
consolidated financial information of Amur Minerals Corporation and
its subsidiary companies. The financial information of the Group
for the 6 months ended 30 June 2014 was approved and authorised for
issue by the Board on 29 September 2014. The interim results have
not been audited, but were the subject to an independent review
carried out by the Company's auditors, BDO LLP. This financial
information has been prepared in accordance with the accounting
policies that are expected to be applied in the Report and Accounts
of Amur Minerals Corporation for the year ended 31 December 2014
and are consistent with IFRS as adopted by the European Union. The
auditors' report on the group accounts to 31 December 2013 was
unqualified, but did include an emphasis of matter on grant of
mining licence. The comparative information for the full year ended
31 December 2013 is not the Group's full annual accounts for that
period but has been derived from the annual financial statements
for that period.
The consolidated financial information incorporates the results
of Amur Minerals Corporation and its subsidiaries undertakings as
at 30 June 2014, using the acquisition method of accounting as
appropriate. The corresponding amounts are for the year ended 31
December 2013 and for the 6 month period ended 30 June 2013.The
Group financial information is presented in US Dollars ('US$') and
values are rounded to the nearest thousand Dollars.
3. GOING CONCERN
The Group operates as a natural resources exploration and
development company. To date, the Group has not earned significant
revenues and is considered to be in the exploration and development
stage. The Directors anticipate that a mining licence will
eventually be granted for the Kun-Manie deposit, but cannot
estimate a date for commercial production to commence. Presently,
the Company has updated approval reports from the Anti-Monopoly
Board ("FAS"), the Federal State Security Bureau ("FSB") and the
Ministry of Defense ("MOD"). The fourth and final external agency
that must report to Rosnedra is the Ministry of Economics (MED") to
which an application has been delivered. This review includes a
review of the terms and conditions of the licence as well as an
overview of the environmental protection considerations.
The Directors have prepared a cash flow projection for the next
12 months which indicate that the Group is sufficiently funded by
its current financial resources, which comprise cash and derivative
financial assets. The amounts receivable under the derivative
financial asset varies with share price. The Group has completed
the exploration phase and is awaiting the approval of the mining
licence before any significant further capital expenditure.
Accordingly the financial information has been prepared on a going
concern basis.
4. LOSS PER SHARE
Basic and diluted loss per share are calculated and set out
below. The effects of warrants and share options outstanding at the
period ends are anti-dilutive and have therefore been excluded from
the following calculations.
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
2014 2013 2013
------------ ------------ -------------
Net loss for the
period (5,268) (2,019) (3,831)
Average number of
shares for the period 431,151,334 353,296,237 387,227,252
Basic and diluted
loss per share US$ (0.012) US$ (0.006) US$ (0.009)
The Group had no dilutive potential ordinary shares in either
period that would serve to increase the loss per ordinary share.
There is therefore no difference between the basic and diluted loss
per share for either period. A total of 27,265,500 (2013:
27,941,400) potential ordinary shares have therefore been excluded
from the above calculations.
5. capitalised expenditures
During the six months ended 30 June 2014, the Group capitalise
exploration and development related expenditures of US$840,000 (1H
2013: US$1,113,000). The Group did not recognise any impairment of
capitalised expenditure during the period (1H 2013: nil).
6. related parties
Key management personnel and directors were paid a total
compensation of US$337,000 for the six months ended 30 June 2014
(1H 2013: US$251,000). No new options were granted to directors in
the six months ended 30 June 2014 (1H 2013: 11.7 million).
7. EVENTS AFTER THE BALANCE SHEET DATE
On the 14 July 2014 the Certificate of Discovery was reissued by
Rosnedra to ensure that all by-product materials could be recovered
by the Company.
On the 11 August 2014 an updated one-time payment to convert
from an exploration licence to a production licence was
recalculated by Rosnedra affiliates based on the new Certificate of
Discovery
On the 4 September 2014 the Ministry of Defense delivered its
updated approval report to Rosnedra which was followed by the
approval report from the Federal Security Service on 9 September
2014. As a result, the necessary updates, approvals and protocols
are now in hand for further advancement through the production
licence review and approval.
8. INTERIM REPORT
Copies of this interim report for the six months ended 30 June
2014 will be available from the Company's website
www.amurminerals.com.
NOTES TO EDITORS
GLOSSARY
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)
The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves ('the JORC Code') is a
professional code of practice that sets minimum standards for
Public Reporting of minerals Exploration Results, Mineral Resources
and Ore Reserves.
The JORC Code provides a mandatory system for the classification
of minerals Exploration Results, Mineral Resources and Ore Reserves
according to the levels of confidence in geological knowledge and
technical and economic considerations in Public Reports.
Public Reports prepared in accordance with the JORC Code are
reports prepared for the purpose of informing investors or
potential investors and their advisors. They include, but are not
limited to, annual and quarterly company reports, press releases,
information memoranda, technical papers, website postings and
public presentations of Exploration Results, Mineral Resources and
Ore Reserves estimates.
A 'Mineral Resource' is a concentration or occurrence of
material of intrinsic economic interest in or on the Earth's crust
in such form, quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources are
sub-divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories.
An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which tonnage, grade and mineral content can be
estimated with a low level of confidence. It is inferred from
geological evidence and assumed but not verified geological and/or
grade continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes which may be limited or of uncertain
quality and reliability.
An 'Indicated Mineral Resource' is that part of a Mineral
Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.
A 'Measured Mineral Resource' is that part of a Mineral Resource
for which tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough
to confirm geological and/or grade continuity.
An 'Ore Reserve' is the economically mineable part of a Measured
and/or Indicated Mineral Resource. It includes diluting materials
and allowances for losses which may occur when the material is
mined. Appropriate assessments and studies have been carried out,
and include consideration of and modification by realistically
assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. These assessments
demonstrate at the time of reporting that extraction could
reasonably be justified. Ore Reserves are sub-divided in order of
increasing confidence into Probable Ore Reserves and Proved Ore
Reserves.
A 'Probable Ore Reserve' is the economically mineable part of an
Indicated, and in some circumstances, a Measured Mineral Resource.
The confidence in the Modifying Factors applying to a Probable Ore
Reserve is lower than that applying to a Proved Ore Reserve.
Consideration of the confidence level of the Modifying Factors is
important in conversion of Mineral Resources to Ore Reserves. A
Probable Ore Reserve has a lower level of confidence than a Proved
Ore Reserve but is of sufficient quality to serve as the basis for
a decision on the development of the deposit.
A 'Proved Ore Reserve' is the economically mineable part of a
Measured Mineral Resource. A Proved Ore Reserve implies a high
degree of confidence in the Modifying Factors. A Proved Ore Reserve
represents the highest confidence category of reserve estimate and
implies a high degree of confidence in geological and grade
continuity, and the consideration of the Modifying Factors. The
style of mineralisation or other factors could mean that Proved Ore
Reserves are not achievable in some deposits.
QUALIFIED PERSONS
The information contained in this document has been reviewed and
approved by the CEO of Amur, Mr. Robin Young. Mr. Young is a
Geological Engineer (cum laude) and is a Qualified Professional
Geologist, as defined by the Toronto and Vancouver Stock Exchanges.
An employee of Amur for 10 years, previously Mr. Young was employed
as an independent consultant with Fluor Engineers, Fluor Australia
and Western Services Engineering, Inc. during which time his
responsibilities included the independent compilation of resources
and reserves in accordance with JORC standards. In addition, he was
the lead engineer and participant of numerous studies and projects
requiring the compilation of independent Bankable Studies utilised
to finance small to large scale projects located worldwide. Mr.
Young is responsible for the content of this document that has
included information derived by SRK, RPM, SGS and AMC's staff of
professionals.
Mr. A.E. Jack Swanson is the COO of Amur and has 49 years of
international experience. His roles have included executive
management positions wherein he was manager of various underground
and open pit mining operations. A participant in the compilation of
Bankable Studies for companies within which he was employed and for
internationally recognised mining consultancy companies, he led the
team in the compilation of the internally derived operating costs
utilised to define the Reserves reported within this document.
For further information, see the Company website at
www.amurminerals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BUGDCLDDBGSC
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Apr 2024 to May 2024
Amur Minerals (LSE:AMC)
Historical Stock Chart
From May 2023 to May 2024