TIDMEUA
RNS Number : 8308M
Eurasia Mining PLC
19 September 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
REGULATION NO. 596/2014 (AS IT FORMS PART OF RETAINED EU LAW AS
DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) AND IS IN
ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 7 OF THAT
REGULATION.
19 September 2023
Eurasia Mining plc
("Eurasia" or the "Company")
Interim Results for the six months ended 30 June 2023
Eurasia, the palladium, platinum, rhodium, iridium and gold
mining company, today reports its unaudited interim results and
operational summary for the six months ended 30 June 2023.
A copy of this announcement is also available on Eurasia's
website at:
https://www.eurasiamining.co.uk/investors/news-announcements
For further information, please contact:
Eurasia Mining Plc
Christian Schaffalitzky/ Keith Byrne
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Broker)
Jeff Keating / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Chairman's Statement
Dear Shareholder
The first six months of 2023 saw the Company focused principally
on our plan to sell our Russian assets.
Proposed sale of Russian assets
We have concentrated on this effort since 2020 and can report
that we continue to make progress. Our focus on BRICS
non-sanctioned counterparties continues, with several parties
currently at various stages of their due diligence. Although, as
stated previously, there is no guarantee of a positive outcome to
this activity, the Board remains focused on achieving a successful
conclusion.
West Kytlim
Site preparation work was completed during the first quarter of
2023, but due to the sale process being Eurasia's main priority, no
metal concentrate has been produced at West Kytlim since the end of
2022.
Our key focus at West Kytlim has been on the sale of 2022
concentrate, which is currently held in inventory, with no
restrictions related to its sale as a precious metals bearing high
grade concentrate. The Board expects the concentrates to be sold at
carrying value and we are currently evaluating offers from three
parties who responded to the tender process.
We have started to receive value-added tax refunds (VAT) against
capital expenditure in previous years, which also contributes to
our cash position (see below), in addition to the proposed
concentrate sale.
Monchetundra
The Definitive Feasibility Study ('DFS') at Monchetundra was
approved by the authorities in late June 2023. This allows Eurasia
to present this development and the resulting improvement in value
to potential purchasers. The Company does not believe it is
appropriate to commence construction immediately, as it is expected
that any counterparties to the proposed asset sale may have their
own plans for the development of Monchetundra and can either
proceed with the EPCF contract signed with Sinosteel, or with a
different contractor.
Financial position
The Company's current cash assets at 30 June 2023 including cash
held in bank accounts (GBP0.4 million) and US treasury notes
(GBP1.54 million) totalled GBP1.94 million. The value of unsold
concentrate within Inventories at 30 June 2023 was approximately
GBP3.5 million. In addition, the Company expects to receive VAT
refunds of circa GBP1.5 million.
The Company's cash reserves are held in USD and GBP accounts
outside of Russia and therefore not directly or indirectly exposed
to Rouble foreign exchange gains or losses against other major hard
currencies.
Sanctions
The Board continues to maintain a regular dialogue with the
Company's legal advisers regarding the potential impact of any US,
UK or EU sanctions on the Company, its operations and assets. The
Company remains satisfied that its current operations are not
prohibited under US, UK or EU sanctions rules. Furthermore, the
Group does not engage and has not engaged with any sanctioned
persons, entities or agencies. The Group continues to closely
monitor all regulatory requirements and changes to the laws, rules
and regulations, taking steps whenever necessary to ensure
compliance with new legislation.
Management changes
Following the retirement of James Nieuwenhuys as CEO, the
Company has established an Operations Committee, led by Christian
Schaffalitzky, which oversees the day-to-day project development
activities of the Company, alongside the proposed sale process on
which the full Board is engaged. Eurasia does not intend to make
any further management appointments at this stage.
Litigation
The previously announced litigation case between the Company and
Queeld Investments Limited and Mispare Limited, and Eurasia remains
ongoing. Further developments regarding this case will be announced
as appropriate. The previously announced case filed by Logik
Developments Ltd was settled in July 2023.
Outlook
We recognise that, in relation to the potential asset sale, it
may be a source of frustration for shareholders that we cannot
report on specific counterparties, the nature of our discussions,
and the ongoing processes in more detail. This reflects the
regulatory regime and the many confidentiality agreements that
govern this activity. However, although there can be no guarantees,
all the Eurasia Board members are engaged in contributing towards a
successful outcome to this process, and we look forward to
providing our shareholders with further updates as appropriate.
We again thank our shareholders for their continued support.
Christian Schaffalitzky
Chairman
Eurasia Mining PLC
Condensed consolidated statement
of comprehensive income
for the six months ended 30 June
2023
Note 6 months 12 months 6 months
to to to
30 June 31 December 30 June
2023 2022 2022
(unaudited) (audited) (unaudited)
GBP GBP GBP
Sales 4 - 119,525 101,836
Cost of sales - (30,173) (36,197)
------------------------------------------- ----- ------------- ------------- -------------
Gross profit - 89,352 65,639
Administrative costs (1,298,464) (4,618,351) (1,257,924)
Investment income 53,184 61,325 10,070
Finance costs (44,789) (107,697) (49,717)
Other gains 5 272,549 187,592 6,108,902
Other losses 5 (6,361,898) (2,842,309) (1,024,892)
(Loss)/profit before tax (7,379,418) (7,230,088) 3,852,078
------------------------------------------- -----
Income tax expense - - -
------------------------------------------- ----- ------------- ------------- -------------
(Loss)/profit for the period (7,379,418) (7,230,088) 3,852,078
Other comprehensive (loss)/income:
Items that will not be reclassified
subsequently to
profit and loss:
NCI share of foreign exchange differences
on translation of foreign operations 682,020 (61,656) 405,694
Items that will be reclassified
subsequently to
profit and loss:
Parents share of foreign exchange
differences on translation
of foreign operations 1,738,236 (341,762) 945,695
Other comprehensive income/(loss)
for the period, net of tax 2,420,256 (403,418) 1,351,389
------------------------------------------- ----- ------------- ------------- -------------
Total comprehensive (loss)/income
for the period (4,959,162) (7,633,506) 5,203,467
=========================================== ===== ============= ============= =============
(Loss)/profit for the period attributable
to:
Equity holders of the parent (5,638,150) (5,840,245) 2,556,416
Non-controlling interest (1,741,268) (1,389,843) 1,295,662
(7,379,418) (7,230,088) 3,852,078
------------------------------------------- ----- ------------- ------------- -------------
Total comprehensive (loss)/income
for the period attributable to:
Equity holders of the parent (3,899,914) (6,182,007) 3,502,111
Non-controlling interest (1,059,248) (1,451,499) 1,701,356
(4,959,162) (7,633,506) 5,203,467
------------------------------------------- ----- ------------- ------------- -------------
Basic and diluted (loss)/profit
(pence per share) (0.20) (0.21) 0.09
Condensed consolidated statement
of financial position
As at 30 June 2023
Note At 30 At 31 December At 30 June
June
2023 2022 2022
(unaudited) (audited) (unaudited)
GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 6 8,470,553 9,600,231 12,634,691
Assets in the course of construction 538,537 696,026 1,329,132
Intangible assets 7 2,748,361 2,859,368 3,146,073
Investment in financial assets 1,592,143 3,807,925
Investments in joint ventures - - 584,591
Total non-current assets 13,349,594 16,963,550 17,694,487
--------------------------------------- ----- -------------- --------------- --------------
Current assets
Inventories 3,687,482 4,182,382 2,135,082
Trade and other receivables 8 2,684,475 3,171,669 4,124,692
Other financial assets 89,485 - -
Current tax assets 5,967 6,050 10,371
Cash and bank balances 405,875 1,009,908 13,559,308
Total current assets 6,873,284 8,370,009 19,829,453
--------------------------------------- ----- -------------- --------------- --------------
Total assets 20,222,878 25,333,559 37,523,940
======================================= ===== ============== =============== ==============
EQUITY
Capital and reserves
Issued capital 9 61,208,111 61,187,111 61,187,111
Reserves 10 5,330,971 3,580,929 4,868,386
Accumulated losses (44,604,733) (38,954,777) (30,558,116)
--------------------------------------- ----- -------------- --------------- --------------
Equity attributable to equity holders
of the parent 21,934,349 25,813,263 35,497,381
Non-controlling interest (4,460,796) (3,401,548) (248,693)
--------------------------------------- ----- -------------- --------------- --------------
Total equity 17,473,553 22,411,715 35,248,688
--------------------------------------- ----- -------------- --------------- --------------
LIABILITIES
Non-current liabilities
Lease liabilities 11 147,592 181,198 431,973
Provisions 13 173,645 254,218 470,029
Total non-current liabilities 321,237 435,416 902,002
--------------------------------------- ----- -------------- --------------- --------------
Current liabilities
Borrowings - - 50,833
Lease liabilities 11 98,256 167,071 211,397
Trade and other payables 12 2,265,361 2,230,879 1,111,020
Provisions 13 64,471 88,478 -
Total current liabilities 2,428,088 2,486,428 1,373,250
--------------------------------------- ----- -------------- --------------- --------------
Total liabilities 2,749,325 2,921,844 2,275,252
--------------------------------------- ----- -------------- --------------- --------------
Total equity and liabilities 20,222,878 25,333,559 37,523,940
======================================= ===== ============== =============== ==============
Condensed statement of changes in
equity
For the six months ended 30 June
2022
Attributable to owners of the parent
---------------------------------------------------------------------------------
Foreign Total
currency attributable
Share Share Deferred Other translation Accumulated to owners Non-controlling Total
Note capital premium shares reserves reserve losses of parent interest equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1 January
2022 2,853,560 51,308,068 7,025,483 3,924,026 (1,335) (33,114,532) 31,995,270 (1,950,049) 30,045,221
Transaction
with owners - - - - - - - - -
--------------- ------ ----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- ------------
Loss for the period - - - - - 2,556,416 2,556,416 1,295,662 3,852,078
Other
comprehensive
loss
Exchange differences
on translation
of foreign operations - - - - 945,695 - 945,695 405,694 1,351,389
Total comprehensive
income - - - - 945,695 2,556,416 3,502,111 1,701,356 5,203,467
Balance at 30 June
2022 2,853,560 51,308,068 7,025,483 3,924,026 944,360 (30,558,116) 35,497,381 (248,693) 35,248,688
======================= =========== ============ =========== =========== ============ ============== ============= ================ ============
Condensed
statement of
changes
in equity
For the six
months ended
30 June 2023
Attributable to owners of the parent
---------------------------------------------------------------------------------
Foreign Total
currency attributable
Share Share Deferred Other translation Accumulated to owners Non-controlling Total
Note capital premium shares reserves reserve losses of parent interest equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1 January
2023 2,853,560 51,308,068 7,025,483 3,924,026 (343,097) (38,954,777) 25,813,263 (3,401,548) 22,411,715
Issue of shares under
employee
share option plan 5,000 16,000 11,806 (11,806) - - 21,000
Transaction with
owners 5,000 16,000 - 11,806 - (11,806) - - 21,000
----------------------- ----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- -------------
Loss for the period - - - - - (5,638,150) (5,638,150) (1,741,268) (7,379,418)
Other
comprehensive
loss
Exchange differences
on translation
of foreign operations - - - - 1,738,236 - 1,738,236 682,020 2,420,256
Total comprehensive
income - - - - 1,738,236 (5,638,150) (3,899,914) (1,059,248) (4,959,162)
----------- ------------ ----------- ----------- ------------ -------------- ------------- ---------------- -------------
Balance at 30 June
2023 2,858,560 51,324,068 7,025,483 3,935,832 1,395,139 (44,604,733) 21,913,349 (4,460,796) 17,473,553
======================= =========== ============ =========== =========== ============ ============== ============= ================ =============
Condensed consolidated statement
of cash flows
for the six months ended 30 June
2021
6 months 12 months 6 months
to to to
30 June 31 December 30 June
2023 2022 2022
(unaudited) (audited) (unaudited)
GBP GBP GBP
Cash flows from operating activities
(Loss)/profit for the period (7,379,418) (7,230,088) 3,852,078
Adjustments for:
Depreciation and amortisation of
non-current assets 497,628 1,006,210 1,194,452
- Asset value write off to cost
of sales 2,365,988
Gain/(loss) on sale or disposal
of property, plant and equipment - (4,952) (4,219)
Finance costs recognised in profit
or loss 47,548 107,697 49,717
Investment revenue recognised in
profit or loss (53,184) (61,325) (10,070)
(Gain)/loss on disposal of investments 18,362 814,158 -
(Loss reversal)/loss recognised
on valuation of inventory (272,549) 2,028,151 1,024,892
Rehabilitation cost recognised in
profit or loss (57,548) 99,725 90,096
Net foreign exchange loss/(profit) 6,343,536 (182,640) (6,104,683)
(855,625) (1,057,076) 92,263
Movements in working capital
Increase in inventories (75,390) (6,166,681) (3,098,450)
Increase in trade and other receivables (71,805) (1,300,887) (1,614,762)
Increase in trade and other payables 392,291 1,716,777 508,844
Cash used in operations (610,529) (6,807,867) (4,112,105)
Net cash used in operating activities (610,529) (6,807,867) (4,112,105)
-------------------------------------------- ------------- -------------- --------------
Cash flows from investing activities
Payments for investment securities - (7,030,548) -
Proceeds from sale of investment
securities 2,284,775 2,835,299 -
Interest received - 11,943 10,070
loan provided to non-related party (143,071) - -
Investment to acquire interest in
joint venture - (354,769) -
Payments for property, plant and
equipment (1,210,627) (7,190,406) (6,221,805)
Payments for other intangible assets (475,540) (1,239,085) (910,258)
Proceeds from disposal of property,
plant and equipment - 4,952 4,219
Net cash generated by/(used in)
investing activities 455,537 (12,962,614) (7,117,774)
-------------------------------------------- ------------- -------------- --------------
Cash flows from financing activities
Repayment of borrowings - (36,232) -
Proceeds from issues of equity shares 21,000 - -
Repayment of lease liability (41,167) (141,528) (24,757)
Interest paid (33,681) (90,446) (41,449)
Net cash used in financing activities (53,848) (268,206) (66,206)
-------------------------------------------- ------------- -------------- --------------
Net decrease in cash and cash equivalents (208,840) (20,038,687) (11,296,085)
Effects of exchange rate changes
on the balance of
cash held in foreign currencies (395,193) (960,912) 2,845,886
Cash and cash equivalents at the
beginning of period 1,009,908 22,009,507 22,009,507
Cash and cash equivalents at the
end of the period 405,875 1,009,908 13,559,308
============================================ ============= ============== ==============
Selected notes to the condensed
consolidated financial statements
for the six months ended 30 June
2023
1. General information
Eurasia Mining plc (the "Company") is a public limited company incorporated
and domiciled in Great Britain with its registered office at International
House, 42 Cromwell Road, London SW7 4EF, United Kingdom and principal
place of business at Clubhouse Bank, 1 Angel Court, EC2R 7HJ. The
Company's shares are listed on AIM, a market of the London Stock
Exchange. The principal activities of the Company and its subsidiaries
(the "Group") are related to the exploration for and development
of platinum group metals, gold and other minerals in Russia.
The financial information set out in these condensed interim consolidated
financial statements (the "Interim Financial Statements") do not
constitute statutory accounts as defined in Section 435 of the Companies
Act 2006. The Group's statutory financial statements for the year
ended 31 December 2022, prepared under International Financial Reporting
Standards (the "IFRS"), have been filed with the Registrar of Companies.
The auditor's report on those financial statements was unqualified.
The report did not contain a statement under Section 498(2) of the
Companies Act 2006.
2. Basis of preparation
The Group prepares consolidated financial statements in accordance
with International Accounting Standards in conformity with the requirements
of the Companies Act 2006. These condensed consolidated interim
financial statements for the period ended 30 June 2023 have been
prepared by applying the recognition and measurement provisions
of IFRS and the accounting policies adopted in the audited accounts
for the year ended 31 December 2022.
These Interim Financial Statements have been prepared under the
historical cost convention.
The accounting policies have been applied consistently throughout
the Group for the purposes of preparation of these condensed consolidated
interim financial statements.
The Interim Financial Statements are presented in Pounds Sterling
(GBP), which is also the functional currency of the parent company.
3. Accounting policies
The Interim Financial Statements have been prepared in accordance
with the accounting policies adopted in the Group's last annual
financial statements for the year ended 31 December 2022.
4. Revenue
6 months 12 months 6 months
to to to
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Sale of platinum and other metals - 61,075 -
Other revenue - 58,450 101,836
- 119,525 101,836
=================================== ========= ============ =========
5. Other gains and losses
6 months 12 months 6 months
to to to
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Gains
Gain on disposal of property, plant
and equipment - 4,952 4,219
Reversal of loss on revaluation
of stock to net realisable value 272,549 - -
Net foreign exchange gain - 182,640 6,104,683
272,549 187,592 6,108,902
Losses
Impairment of investments (18,362) (814,158) -
Loss on revaluation of stock to
net realisable value - (2,028,151) (1,024,892)
Net foreign exchange loss (6,343,536) - -
(6,361,898) (2,842,309) (1,024,892)
(6,089,349) (2,654,717) 5,084,010
===================================== ============= ============= =============
The majority of the foreign exchange gains and losses are a
result of the revaluation of monetary assets and liabilities in the
subsidiary accounts as a result of movements in the Rouble exchange
rates.
In 2022 the Group took a decision to postpone the sale of
platinum and other metals due to a strong Ruble and low platinum
price. Stock available at 30 June 2023 represents platinum
concentrate ready for refining, which was valued (i) using
methodology set in the refining and sale and purchase agreement
made with local refinery in 2021 and (ii) exchange rate and metal
prices at 30 June 2023.
6. Property, plant and equipment
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Net book value at the beginning
of period 9,600,231 5,061,743 5,061,743
Additions 1,137,353 2,443,927 5,911,509
Transferred from assets under construction 90,499 4,776,644 -
Written off to inventory - (2,365,988) (2,365,988)
Depreciation (497,628) (1,006,210) (1,194,452)
Exchange differences (1,859,902) 690,115 2,855,891
Net book value at the end of period 8,470,553 9,600,231 12,634,691
============================================= ============= ============= =============
7. Intangible assets
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Net book value at the beginning
of period 2,859,368 1,389,029 1,389,029
Additions 475,540 1,239,085 910,258
Exchange differences (586,547) 231,254 846,786
Net book value at the end of period 2,748,361 2,859,368 3,146,073
============================================= ============= ============= =============
Intangible assets represent capitalised costs associated with
Group's exploration, evaluation and development of mineral
resources.
8. Trade and other receivables
30 June 31 December 30 June
2023 2022 2022
Trade receivables - - 78,520
Advances made 677,536 822,280 1,759,183
Prepayments 26,929 135,447 36,681
VAT recoverable 1,496,281 1,942,410 2,123,355
Other receivables 483,729 271,532 126,953
2,684,475 3,171,669 4,124,692
================================ =========== ============ ===========
The fair value of trade and other receivables is not materially
different to the carrying values presented. None of the receivables
are provided as security or past due.
9. Share capital
30 June 31 December 30 June
2023 2022 2022
Issued ordinary shares with a nominal
value of 0.1p:
Number 2,858,559,995 2,853,559,995 2,853,559,995
Nominal value (GBP) 2,853,560 2,853,560 2,853,560
Fully paid ordinary shares carry
one vote per share and carry the
right to dividends.
Issued deferred shares with a nominal
value of 4.9 p:
Number 143,377,203 143,377,203 143,377,203
Nominal value (GBP) 7,025,483 7,025,483 7,025,483
Deferred shares have the following rights and restrictions
attached to them:
- they do not entitle the holders to receive any dividends and
distributions;
- they do not entitle the holders to receive notice or to attend
or vote at General Meetings of the Company; and
- on return of capital on a winding up the holders of the
deferred shares are only entitled to receive the amount paid up on
such shares after the holders of the ordinary shares have received
the sum of 0.1p for each ordinary share held by them and do not
have any other right to participate in the assets of the
Company.
There had been no change in the issued share capital during the
reporting period.
Ordinary shares Number of Share Share
shares capital premium
GBP GBP
Balance at 1 January 2023 2,853,559,995 2,853,560 51,308,068
Exercise of warrants and options 5,000,000 5,000 16,000
Balance at 30 June 2023 2,858,559,995 2,858,560 51,324,068
==================================== =============== =========== ============
Deferred shares Number of Deferred
deferred share
shares capital
GBP
Balance at 1 January and 30 June
2021 143,377,203 7,025,483
==================================== =============== =========== ============
10. Reserves
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Capital redemption reserve 3,539,906 3,539,906 3,539,906
Foreign currency translation reserve 1,395,139 (343,097) 944,360
Equity-based payment reserve 395,926 384,120 384,120
5,330,971 3,580,929 4,868,386
====================================== =========== ============ ===========
The capital redemption reserve was created as a result of a share
capital restructuring in earlier years. There is no policy of regular
transactions affecting the capital redemption reserve.
The foreign currency translation reserve represents exchange differences
relating to the translation from the functional currencies of the
Group's foreign subsidiaries into GBP.
The equity-based payments reserve represents a reserve arisen on
(i) the grant of share options to employees under the employee share
option plan and (ii) on issue of warrants under terms of professional
service agreements.
11. Lease liabilities
The Group leases certain of its plant and equipment. The average
lease term is 4.5 years, expiring in 2025. The Group has option
to purchase the equipment for a nominal amount at the maturity of
the finance lease. The Group's obligation under finance leases are
secured by the lessor's title to the leased assets.
Interest rates underlying all obligations under finance leases are
fixed at respective contract dates ranging from 21.9% to 23.5% per
annum.
Minimum lease payments 30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Less than one year 179,418 224,700 315,252
Between one and five years 103,334 202,820 496,817
More than five years - - -
--------------------------------
282,753 427,520 812,069
Less future finance charges (36,905) (79,251) (168,699)
--------------------------------- ---------- ------------ -----------
Present value of minimum lease
payments 245,848 348,269 643,370
================================= ========== ============ ===========
Present value of minimum lease 30 June 31 December 30 June
payments
2023 2022 2022
GBP GBP GBP
Less than one year 147,592 167,071 211,397
Between one and five years 98,256 181,198 431,973
More than five years - - -
Present value of minimum lease
payments 245,848 348,269 643,370
================================= ========== ============ ===========
12. Trade and other payables
30 June 31 December 30 June
2023 2022 2022
Trade payables 802,525 270,214 615,115
Accruals 1,326,107 1,825,269 56,826
Social security and other taxes 45,523 46,460 167,392
Other payables 91,206 88,936 271,687
2,265,361 2,230,879 1,111,020
================================== =========== ============ ==========
The fair value of trade and other payables is not materially
different to the carrying values presented. The above listed
payables were all unsecured.
13. Provision
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
Long term provision:
Environment rehabilitation 470,029 254,218 470,029
------------------------------------------ ----------- ------------ -----------
Short term provision:
Environment rehabilitation - 88,478 -
----------------------------------------- ----------- ------------ -----------
470,029 342,696 470,029
========================================= =========== ============ ===========
Six month 12 month Six month
Movement in provision to to to
30 June 31 December 30 June
2023 2022 2022
GBP GBP GBP
At 1 January 342,696 200,762 200,762
Recognised in the period - 54,612 79,541
Utilised in the period - - -
Reduction resulting from re-measurement
or settlement without cost (57,548) 45,446 10,555
Unwinding of discount and effect
of changes in the discount rate 13,867 17,251 8,268
Exchange difference (60,899) 24,625 170,903
At the end of the period 238,116 342,696 470,029
========================================== =========== ============ ===========
Provision is made for the cost of restoration and environmental
rehabilitation of the land disturbed by the West Kytlim mining
operations, based on the estimated future costs using information
available at the reporting date.
The provision is discounted using a risk-free discount rate of
from 6.6% to 6.88% (2020: 3.87% to 5.08%) depending on the
commitment terms, attributed to the Russian Federal Bonds.
Provision is estimated based on the sub-areas within general
West Kytlim mining licence the company has carried down its
operations on by the end of the reporting period. Timing is
stipulated by the forestry permits issued at the pre-mining stage
for each of sub-areas. Actual costs in respect of the long-term
provision recognised by 30 June 2023 will be incurred within
2023-2025.
14. Commitments
At the time of the award of the Monchetundra mining license a royalty
payment was calculated by the Russian Federal Reserves Commission.
20% of this payment was paid in December of 2018 and the remaining
80%, or Rub16.68 mln (approximately GBP150,000) to be paid by November
2023.
During 2020 the Group entered into several lease agreements to lease
mining plant and equipment. As at 30 June 2023 the average lease
term was 2 years and present value of minimum lease payments GBP245,848
(2022: GBP643,370).
This information is provided by RNS, the news service of the
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IR BRGDCDSBDGXI
(END) Dow Jones Newswires
September 19, 2023 02:00 ET (06:00 GMT)
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