TIDMAMC
RNS Number : 5617D
Amur Minerals Corporation
30 June 2021
30 June 2021
AMUR MINERALS CORPORATION
("Amur" or the "Company")
AUDITED FINAL RESULTS FOR THE YEARED 31 DECEMBER 2020
2020 Highlights:
-- Work on Permanent Conditions TEO ("TEO") continued, with a
one year extension to delivery date
-- Metallurgical test work confirmed Kun-Manie ores can produce
two separate saleable concentrates which could materially increase
project's gross revenue
-- Investment in Nathan River Resources Pte Limited convertible loan note
-- Board and executive management restructuring
Chairman's Statement
It is with pleasure that I update you on the activities of the
Company for the twelve months period to 31 December 2020. Along
with all worldwide corporate entities, Amur Minerals Corporation
(the "Company") has had to balance and endure the challenging year
given the Covid-19 pandemic, despite which the Company progressed
its Federation of Russia Kun-Manie Nickel/Copper sulphide project
("Kun-Manie"). In addition, the Company established a source of
income generated through its ownership of 14% interest Convertible
Loan Notes ("CLN"") supporting the resumption of Nathan River
Resources' ("NRR") Roper Bar iron ore production located in the
Northern Territories of Australia.
We present the Annual Report and Accounts for the year to 31
December 2020. It is noted that over the course of the year 2020,
the Company continued to remain debt free and its cash reserve
increased by 600% from US$398,000 (1 January 2020) to US$2,800,000
(31 December 2020). Going forward, the NRR CLN will generate
interest revenue through to Q3 2023 and at the rate of
approximately US$170,000 per quarter.
Looking forward, we continue our work toward the completion of
the funded Permanent Conditions TEO ("Feasibility Study level
work") for identification of reserves per the Russian mineral
classification system. Subsequent Russian Federation and western
required documentation allowing for production approvals,
development and compilation of the necessary information to provide
both a Russian compatible Bankable Feasibility Study ("RBFS") and
western BFS standard studies shall be undertaken. This binary study
approach should provide the Company with the flexibility to
evaluate and identify the best approaches to develop and advance
the Company.
Kun-Manie Nickel-Copper Sulphide project
The 2019 Kun-Manie project focus of the Company has been and
continues to be the Kun-Manie nickel copper sulphide project in the
far east of Russia. Despite the disruption of the global pandemic,
work on the TEO continued throughout the year with a one year
extension to the delivery date being granted. The TEO is a
mandatory Russian feasibility study, independently compiled,
addressing the physical and operating project considerations and
paving the way for registration of a project's mineral reserve by
the State Committee on Reserves ("GKZ"). Reserve registration is a
necessary milestone for all companies to undertake detailed
engineering, procurement and construction designs suited for
compilation of a Russian Bankable Feasibility Study ("RBFS").
Planned for delivery in December 2020, the impact of having to
work remotely meant that the Company had to request an extension
for the delivery date of the TEO to 1 December 2021. Approved by
the Russian Federation, the Company still accomplished the majority
of its TEO related tasks including:
-- Russian grade estimates for nickel, copper, cobalt, platinum,
palladium, gold and silver. Maiden estimates for gold and silver
were generated;
-- Hydrological assessment determined that a more than
sufficient water supply is available to support the project;
-- Rock mechanics study work confirmed that open pit and/or
underground operations can be successfully implemented;
-- Base Line Environmental Assessment have defined the base line
preproduction environmental settings and operational
considerations;
-- Metallurgical test work confirming that individual copper
sulphide and nickel sulphide concentrates can be generated using
standard industry sulphide floatation methods;
-- Key equipment list of the key components based the global
metallurgical test works has establish specific equipment
lists;
-- The 10 tonne representative bulk sample, (as well as multiple
test programmes conducted over the years), had established the
nickel and copper can be recovered in individual sulphide
concentrate streams improving revenue generation streams for the
project;
-- Process flow sheets and estimated operating costs have been substantially refined;
-- Non-binding off-take terms and conditions by a confidential
metals trader have provided guidance to assist in the determination
of revenue generation;
-- Pit designs at four cut-off grades have been generated for
each of the three deposits. Reserve resource models indicate an as
yet uncertified potential mine life ranging from 24 to 41 years
based on a 6.0 mtpa nominal operating capacity;
-- A comprehensive mine site layout has been identified.
Oreall (a Moscow based independent company licenced to compile
TEO study results) has compiled the document to be provided to the
GKZ for reserve certification. As with the Temporary Conditions TEO
done in the past, the Company is independently verifying the draft
results including independent reviews and the inclusion of the
newly acquired metallugical test work results.
Concurrently and separate from the TEO work, RPM Global has
recently completed (post 2020) an update to the JORC resource
estimates including all drilling and trenching. The resource for
all categories of Measured, Indicated and Inferred has been
increased from the most recent resource number by as much as 14.1%
to 15.4% for tonnage of ore and tonnages of nickel and copper. With
regard to Measured and Indicated resources used to define reserves,
these have been increased from 25 to 31% by tonnage of ore and
tonnages of nickel and copper.
A 0.3% Nickel cut-off grade has been used to calculate the JORC
Resource compared to a 0.4% Nickel cut off-grade. The reduction in
the COG is primarily due to the metallurgical test results by
Gipronickel which confirmed that two revenue generating concentrate
products (Ni and Cu) could be produced. Previous resource estimates
were based on a single nickel only payable concentrate being
produced with zero revenue contribution being derived from the
copper.
Below is a summary of the newly reported JORC resource within
the global mineral resource within the 100% owned (and the
operator) Kun-Manie licence area. These results have only recently
been obtained from RPM Global.
Kun-Manie Nickel Copper Sulphide Mineral Resource Estimate
(0.3% Ni Eq COG)
Resource Classification Ore Ni Cu Ni T Cu T
Mt % % (1,000's) (1,000's)
Maly Kurumkon / Flangovy
Measured 7.3 0.76 0.22 55 16
------ ----- ----- ----------- -----------
Indicated 38.0 0.80 0.22 300 84
------ ----- ----- ----------- -----------
M+I 45.3 0.79 0.22 355 100
------ ----- ----- ----------- -----------
Inferred 3.1 0.79 0.23 24 7
------ ----- ----- ----------- -----------
MKF TOTAL 49 0.79 0.22 380 110
------ ----- ----- ----------- -----------
Ikenskoe / Sobolevskey /Kubuk
Measured 11 0.70 0.19 77 21
------ ----- ----- ----------- -----------
Indicated 88 0.74 0.21 650 180
------ ----- ----- ----------- -----------
M+I 99 0.73 0.20 727 201
------ ----- ----- ----------- -----------
Inferred 25 0.68 0.19 170 48
------ ----- ----- ----------- -----------
ISK TOTAL 120 0.72 0.20 890 250
------ ----- ----- ----------- -----------
Vodorazdelny
Measured 1.8 0.84 0.24 15 4
------ ----- ----- ----------- -----------
Indicated 2.2 0.80 0.22 17 5
------ ----- ----- ----------- -----------
M+I 4.0 0.80 0.23 32 9
------ ----- ----- ----------- -----------
Inferred 1.3 0.78 0.22 10 3
------ ----- ----- ----------- -----------
VOD TOTAL 5.3 0.81 0.23 43 12
------ ----- ----- ----------- -----------
TOTAL KUN-MANIE
Measured 20.1 0.73 0.20 147 41
------ ----- ----- ----------- -----------
Indicated 128.2 0.75 0.21 697 269
------ ----- ----- ----------- -----------
M+I 148.3 0.75 0.21 1,114 310
------ ----- ----- ----------- -----------
Inferred 29.4 0.69 0.20 204 58
------ ----- ----- ----------- -----------
GLOBAL TOTAL 174.3 0.75 0.21 1,313 372
------ ----- ----- ----------- -----------
TEO Resource (0.3% Ni COG)
All (B, C1,
C2) 168.1 0.76 0.21 1,279 353
------ ----- ----- ----------- -----------
Notes;
1. Totals may differ due to rounding, Mineral Resources reported on a dry in-situ basis.
2. Mineral Resources are reported in accordance with the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (The Joint Ore Reserves Committee Code -
JORC 2012 Edition).
NRR Rope Bar Iron Ore Operation
On 25 August 2020, the Company completed an equity placing of
GBP6,100,000 and an investment of US$4,670,000 to hold a
Convertible Loan Note ("CLN") on Nathan River Resources Pte Limited
("NRR") which owns the Roper Bar Iron Ore Project ("Roper Bar").
Roper Bar is a large established iron ore deposit in the Northern
Territory of Australia with a defined JORC resource of 446,000,000
tonnes at 39.9% Fe and a JORC reserve of 4,760,000 tonnes at 60.1%
Fe. NRR has re-established the mining and shipping of iron ore to
China under an offtake agreement with Glencore.
The Company is paid on the 14% coupon of the CLN which is
convertible into 17% of the current issued share capital of NRR.
During 2020 the Company was due US$205,000 in interest payments, of
which US$43,000 was received during the year and US$162,000 post
year end. These notes have a three year maturity life.
Financial Overview
As at 31 December 2020 the Company had cash reserves of
US$2,800,000 up from US$398,000 at the start of 2020 and remains
debt free.
The Company undertook a number of funding initiatives during
2020 providing total funds from equity placings of approximately
US$10,000,000 net of issue costs. In addition, on 12 March 2020,
the Company entered into a GBP1,500,000 fixed term loan with Plena
Global securities LLC ("Plena") with an immediate initial advance
of GBP500,000. As part of this loan facility, the Company also
granted Plena 52,447,552 warrants with an exercise price of 1.43
pence per ordinary share.
On 16 April 2020, the Company completed an equity placing of
75,000,000 new ordinary shares at a price of 1p per share to raise
gross proceeds of GBP750,000. Funds raised from this placing were
used to repay in full the initial advance of the Plena loan
facility on 4 May 2020.
On 27 May 2020, the Company completed an equity placing of
47,619,048 new ordinary shares at a price of 1.05 pence per share
to raise gross proceeds of GBP500,000.
During 2020, Plena has exercised 47,723,776 warrants providing
GBP682,450 of additional funding for the Company. As at time of
writing this report, Plena has 4,723,776 warrants outstanding.
On 19 June 2020, the Company held an Extraordinary General
Meeting during which a resolution was passed to increase the number
of shares which the Company is authorised to issue to
2,000,000,000.
On 25 August 2020, the Company completed an equity placing of
$6,100,000 and an investment of US$4,670,000 in a Convertible Loan
Note ("CLN") in NRR.
On the 13 February 2020, the Company appointed Mr. Adam Habib as
Advisor to the Board. As part of his appointment, Mr. Habib was
granted 12,809,630 options with an exercise price of 1.95 pence per
share, with a further 12,809,630 options subject to the successful
completion by the Company of a non-binding off-take agreement, for
the completion of a producing asset investment.
On the 3 April 2020, the Company made a grant of 30,000,000
options with an exercise price of 1.75 pence per ordinary share to
Directors, executives and employees. As at 31 December 2020, the
Company has 55,619,260 options outstanding.
Administration expenses for the 2020 year totalled US$3,000,000
(2019: US$2,000,000). The main reason for the increase in
administration expenses was caused by the hiring of a new Officer
and Adviser and modest employee salary increases totalling
US$1,400,000 (2019: US$1,100,000) and professional fees of
US$874,000 (2019: US$402,000) associated with TEO activities. Other
Comprehensive income was charged with a translation loss of
US$4,100,000 (2019: gain of US$2,900,000) was due to the weakening
of the Russian rouble to the US dollar. Expenditure on exploration
was US$1,200,000 (2019: US$1,300,000) as the Company remained
focused on the completion of the TEO. Exploration assets realized
an exchange loss of US$3,800,000 (2019: exchange gain US$2,700,000)
also due to the weakening of the Russian rouble to the US
dollar.
As detailed in the notes to the financial statements, the
Kun-Manie asset value have been restated by US$486,000. This is due
to certain exploration costs that were incurred and were
capitalised within the Parent Company, whereas these costs should
have been capitalised within Russian operating subsidiary in its
functional currency, with resulting foreign exchange gains or
losses being recognised at the end of each reporting period
end.
Covid-19
Since the start of January 2020, Covid-19 created significant
disruption to the global markets and economies, including Russia.
To keep safe its personnel, the Company has put in place special
measures to protect its workforce while at the same time ensuring
business continuity. Prior to the outbreak, the Company had the
facilities in place to allow remote working for most members of
staff. This capability was enhanced to ensure that the Company can
now operate effectively over an extended period of time without
requiring regular access to physical offices. The Company maintains
close contact with its contractors working on the Permanent
Conditions TEO as the contractors have also put in place procedures
to work effectively over the coming months in order to ensure that
these projects are delivered within their original schedules. As an
additional assurance to shareholders, the Russian Federation
subsoil law allows for and was granted extensions to filing
dates.
As of the date of this report, Covid-19 also created significant
uncertainty and disruption in the financial markets. The Company
has not realised a negative impact of Covid-19 on its ability to
raise funds, having completed equity placements in April 2020 of
GBP750,000, May 2020 of GBP500,000 and GBP6,100,000 in August 2020.
However, the Directors are cognisant that conditions in the
financing market are changeable and will continue to monitor
developments.
Outlook
The Company's primary objectives for 2021 are the completion of
the TEO and continued work on the commencement of the Bankable
Feasibility Study and the required incumbent study work.
The BFS provides the necessary technical, environmental and
economic detail for institutional investors to advance funding for
construction and into production. The BFS is itself a considerable
undertaking and the Amur team has been working on the detailed
planning and costing of the BFS programme. This has required
considerable interaction with both Russian and international
organisations qualified in conducting BFS level work.
In conjunction with the development of the BFS work programme,
the Company has also been maintaining open discussions with
potential offtake partners which the Company believes will provide
access to the types of institutional investors who provide
financing, principally through debt, for BFS programmes.
The Company is well placed to take advantage of the growing
interest in the global development of low carbon economies and the
key battery materials, especially nickel and copper, that underpin
this movement. We believe shareholders have a good cause to be
optimistic about the future of the Company, and we thank them for
their patience and continued support.
On behalf of the Board of Directors, I would like to thank all
the staff for their dedication and hard work throughout this period
in getting the TEO programme organised and progressing toward its
completion.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals Corp. S.P. Angel Corporate Finance LLP Blytheweigh
Robin Young CEO Richard Morrison Megan Ray
Adam Cowl Tim Blythe
+7 (4212) 755 615 +44 (0) 20 3470 0470 +44 (0) 20 7138 3203
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
Restated Restated
2020 2019 2018
US$'000 US$'000 US$'000
Non-current assets
Exploration and evaluation
assets 23,542 26,227 22,204
Property, plant and equipment 452 1,154 1,668
Financial assets at fair
value through profit and
loss 5,255 - -
-------- -------- --------
29,249 27,381 23,872
-------- -------- --------
Current assets
Inventories 207 276 257
Other receivables 158 211 191
Cash and cash equivalents 2,790 398 1,257
-------- -------- --------
3,155 885 1,705
-------- -------- --------
Total assets 32,404 28,266 25,577
-------- -------- --------
Current liabilities
Trade and other payables 913 965 802
Convertible loan notes - - 1,663
Derivative financial liabilities - - 153
913 965 2,618
-------- -------- --------
Non-current liabilities
Rehabilitation provision 141 164 146
-------- -------- --------
Total liabilities 1,054 1,129 2,764
-------- -------- --------
Net assets 31,350 27,137 22,813
-------- -------- --------
Equity
Share capital 80,449 69,510 65,674
Share premium 4,278 4,790 4,904
Foreign currency translation
reserve (17,474) (13,351) (16,282)
Share options reserve 577 1,136 2,034
Retained deficit (36,480) (34,948) (33,517)
-------- -------- --------
Total equity 31,350 27,137 22,813
-------- -------- --------
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 DECEMBER 2020
2020 2019
US$'000 US$'000
Administrative expenses (3,083) (1,984)
--------------------- --------------------------
Operating loss (3,083) (1,984)
Finance income 205 1
Finance costs (104) (803)
Fair value movements on derivative
financial instruments - 342
Gain on revaluation of assets held 423 -
at fair value through profit and
loss
Loss on early redemption (109) -
(Loss)/Gain on loan modification - 115
--------------------- --------------------------
Loss before taxation (2,668) (2,329)
Tax expense - -
--------------------- --------------------------
Loss for the year attributable to
owners of the parent (2,668) (2,329)
--------------------- --------------------------
Loss per share (expressed in cents)
Basic and diluted (0.25) (0.32)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2020
Restated
2020 2019
US$'000 US$'000
Loss for the year
(2,668) (2,329)
-------------- --------
Other comprehensive (loss)/income
Items that may be reclassified to
profit or loss
Exchange differences on translation
of foreign operations (4,123) 2,931
-------------- --------
Total other comprehensive (loss)/income
for the year (4,123) 2,931
-------------- --------
Total comprehensive (loss)/income
for the year attributable to owners
of the parent (6,791) 602
-------------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2020
2020 2019
US$'000 US$'000 US$'000 US$'000
Cash flows from operating activities
Payments to suppliers and employees (2,196) (1,884)
Interest expense - (18)
----------- -------
Net cash outflow from operating
activities (2,196) (1,902)
Cash flow from investing activities
Payments for exploration expenditure (564) (501)
Loans granted (4,658)
Payments for property, plant - -
and equipment
Interest received 43 1
----------------- ----------------------
Net cash used in investing
activities (5,179) (500)
Cash flow from financing activities
Cash received on issue of shares,
net of issue costs 10,005 1,845
Issue of convertible loans,
net of issue costs 607 492
Repayment of convertible loans (720) (835)
----------------- ----------------------
Net cash generated from financing
activities 9,892 1,502
----------- -------
Net Increase/(decrease) in
cash and cash equivalents 2,517 (900)
Cash and cash equivalents at
beginning of year 398 1,257
Exchange differences on cash
and cash equivalents (125) 41
----------- -------
Cash and cash equivalents at
end of year 2,790 398
----------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2020
Share Share Foreign Share Retained Total
capital premium currency options deficit equity
translation reserve
reserve
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 1 January 2019
(as previously stated) 65,674 4,904 (15,476) 2,034 (33,517) 23,619
------------ ------------------------ ------------ --------- ------------
Prior year restatement - - (806) - - (806)
------------ ------------------------ ------------ --------- ------------
Balance restated at 1
January 2019 65,674 4,904 (16,282) 2,034 (33,517) 22,813
------------ ------------------------ ------------ --------- ------------
Year ended 31 December
2019:
Loss for the year - - - - (2,329) (2,329)
Other comprehensive income:
Exchange differences on
translation of foreign
operations - - 2,931 - - 2,931
------------ ------------------------ ------------ --------- ------------
Total comprehensive income
for the year - - 2,931 - (2,329) 602
Issue of share capital 1,988 (114 ) - - - 1,874
Conversion of loan 1,848 - - - - 1,848
Options expired - - - (898) 898 -
------------ ------------------------ ------------ --------- ------------
Balance at 31 December
2019 69,510 4,790 (13,351) 1,136 (34,948) 27,137
------------ ------------------------ ------------ --------- ------------
Share Share Foreign Share Retained Total
capital premium currency options deficit equity
translation reserve
reserve
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 1 January 2020 69,510 4,790 (13,351) 1,136 (34,948) 27,137
------------ ------------------------ ------------ ---------- ------------
Year ended 31 December
2020:
Loss for the year - - - - (2,668) (2,668)
Other comprehensive income:
Exchange differences on
translation of foreign
operations - * (4,123) - - (4,123)
------------ ------------------------ ------------ ---------- ------------
Total comprehensive income
for the year - * (4,123) - (2,668) (6,791)
Issue of share capital 10,063 (512) - - - 9,551
Conversion of warrants 876 - - - - 876
Options charge for the
year - - - 577 - 577
Options expired - - - (1,136) 1,136 -
------------ ------------------------ ------------ ---------- ------------
Balance at 31 December
2020 80,449 4,278 (17,474) 577 (36,480) 31,350
------------ ------------------------ ------------ ---------- ------------
1. Basis of prePARATION
a) General Information
Amur Minerals Corporation is incorporated under the British
Virgin Islands Business Companies Act 2004. The registered office
is Kingston Chambers, P.O. Box 173, Road Town, Tortola, British
Virgin Islands.
The Company and its subsidiaries ("Group") locates, evaluates,
acquires, explores and develops mineral properties and projects in
the Russian Far East.
The Company owns 100% of the share capital of Carlo Holdings
Limited, which was acquired in the year. The Company is the 100%
owner of Irosta Trading Limited ("Irosta"), an investment holding
company incorporated and registered in Cyprus. Irosta holds 100% of
the shares in ZAO Kun-Manie ("Kun-Manie"), an exploration and
mining company incorporated and registered in Russia, which holds
the Group's mineral licences.
The Group's principal place of business is in the Russian
Federation.
The Group's principal asset is the Kun-Manie production licence,
which was issued in May 2015. The licence is valid until 1 July
2035 and allows the Company's subsidiary, ZAO Kun-Manie, to recover
all revenues from 100% of the mined metal that specifically
includes nickel, copper, cobalt, platinum, palladium, gold and
silver. The Company's management are evaluating the project with a
view of determining an appropriate model for the development and
ultimate exploitation of the project.
b) Basis of Preparation
These financial statements have been prepared under the
historical cost convention, except for the valuation of derivative
financial instruments, on the basis of a going concern and in
accordance with International Financial Reporting Standards (IFRS)
and IFRIC interpretations issued by the International Accounting
Standards Board (IASB) as adopted by the European Union.
The financial statements are presented in thousands of United
States Dollars.
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise
stated.
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making judgements about
carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates. The areas involving a higher degree of judgement or
complexity, or where assumptions and estimates are significant to
the consolidated financial statements, are disclosed in note 3.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision only
affects that period, or in the period of revision and future
periods if the revision affects both current and future periods
.
c) Going concern
The Group operates as a natural resources exploration and
development group. To date, it has not earned any revenues and is
considered to be in the final stages of exploration and evaluation
activities of its Kun-Manie project.
The Directors have reviewed the Group's cash flow forecast for
the period to 31 December 2022 and note that the Group's ability to
continue to meet its obligations as and when they fall due is
dependent on a variety of factors, one being the receipt of
quarterly interest payments from NRR in respect of the convertible
loan facility. Should no further quarterly interest payments be
received from the date of this report, it is foreseen that cash
will run out in April 2022.
As the Group approaches bankable feasibility, an alternative
funding option will need to be secured in order to adequately fund
this step. The Directors are currently in negotiations with a
number of parties in respect of raising further funds. Whilst
progress is being made on a number of potential transactions which
would provide adequate funding to the Group, there are no binding
agreements in place. The Company was successful in completing three
equity placements in 2020 and while the Directors are confident of
raising additional funding should it be required, their ability to
do this is not completely within in their control.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt over the Group's
ability to continue as a going concern. Based on the current
progress of the negotiations with potential investors and providers
of finance the Directors believe that the necessary funds to
provide adequate financing to continue with the current work
program on its Kun-Manie project will be raised as required and
accordingly they are confident that the Group will continue as a
going concern and have prepared the financial statements on that
basis.
The financial statements do not include the adjustments that
would result if the Group was not able to continue as a going
concern and, therefore, that it may be unable to realise its assets
and discharge its liabilities in the normal course of business.
c) 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
year ends are anti-dilutive and the total of 90.1 million (2019:
27.1 million) of potential ordinary shares have therefore been
excluded from the following calculations:
2020 2019
Number of shares
Weighted average number of ordinary shares
used in the calculation of basic
earnings per share 1,071,175,000 735,839,463
2020 2019
Earnings US$'000 US$'000
Net loss for the year from continued operations
attributable to equity shareholders (2,688) (2,329)
------------- ------------
Loss per share for continuing operations
(expressed in cents)
Basic and diluted loss per share (0.25) (0.32)
d) Prior year restatement
Since incorporation in 2005 costs incurred by Amur Minerals
Corporation (the "Company"), relating to exploration and mining
activity, have been capitalised on the Group Statement of Financial
Position as Exploration and Evaluation costs. During the year ended
31 December 2020 management has undertaken an exercise to reassess
these costs and has determined that, given the parent company does
not hold the overarching exploration and mining licences of the
Group or directly controls these assets, the capitalisation of
these costs as Exploration and evaluation costs in the parent
company was done in error. These costs have been incurred on behalf
of the Parent company's subsidiaries and should have been
capitalised within the Russian Operating subsidiary's functional
currency with resulting foreign exchange gains or losses being
recognised at each reporting period end on consolidation into the
Group's presentation currency. These costs would have been
capitalised using the subsidiaries' functional currency, which is
the Russian Rouble. A cumulative adjustment has been calculated to
reflect the translation of these costs into Russian Rouble and then
back to the Group's presentation currency of USD on consolidation.
This has had the following impact -
Group Balance Sheet (2019)
Exploration and Evaluation assets has decreased by $486,193 to
an adjusted balance of $26,227,000.
The Foreign Currency translation reserve within equity has
increased by $486,193 to an adjusted balance of $13,351,000. A
third balance sheet has been included in the financial statements
to demonstrate the effects of this adjustment on prior periods.
Group Statement of Comprehensive Income/(Loss) (2019)
The Exchange difference on translating foreign operations has
increased by $319,104 to $2,931,000.
We note that these adjustments have had no impact upon the Group
Profit after Tax.
e) Events after the reporting date
The terms and conditions for the Company's Kun-Manie "Detailed
Exploration and Mine Production Licence" ("DEMP"), were amended and
registered with Rosnedra, the State Licencing Agency. The certified
modification to the DEMP was received 9 February 2021 from
Amurnedra and is dated effective 30 November 2020. The Company
submitted the application to amend the delivery date of the 1
December 2020 TEO which has now been successfully extended to 1
December 2021 for its delivery.
Annual Accounts
Copies of the Group's Annual Accounts will be posted to the Amur
shareholders today and are available for download from the
Company's website at www.amurminerals.com .
Notes to Editors
The information on exploration results and Mineral Resources
contained in this announcement has been reviewed and approved by
the CEO of Amur, 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 and a Qualified Person
for the purposes of the AIM Rules for Companies.
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) ( www.jorc.org
)
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.
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END
FR SESEFUEFSELM
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June 30, 2021 02:00 ET (06:00 GMT)
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