TIDMCAML
RNS Number : 9297O
Central Asia Metals PLC
26 September 2013
26 September 2013
Ticker: CAML (AIM)
Central Asia Metals plc ("the Group", "the Company" or
"CAML")
Interim Results for the Six Months Ended 30 June 2013
Central Asia Metals plc (AIM: CAML), a copper producing company
focussed on base metals in Central Asia is pleased to announce
unaudited interim results for the six months ended 30 June 2013
("H1 2013" or the "Period").
The Company is pleased to declare an interim dividend of 4 pence
per share (2012: 3.3 pence) due to continued strong production at
Kounrad in line with targets and the resulting positive
cash-flows.
Highlights
Operational
Strong operational performance following a successful ramp up in
production at Kounrad
-- 4,857 tonnes of cathode copper produced and 5,035 tonnes sold
(H1 2012: 1,728 produced and 1,386 sold)
-- JORC compliant resource estimate announced at Kounrad and GKZ
C1 resources accepted to the Kazakhstan 'state balance' in May
2013
-- Revised transaction agreed to acquire the remaining 40% of
Kounrad, not already owned, for 21.2m shares in the Company
-- Expiry of non-core Alag Bayan exploration licence in Mongolia
-- Guidance maintained at 10,000 tonnes of cathode copper production for 2013
Financial
Positive revenue growth underpinned by production at Kounrad,
strengthening the balance sheet and supporting the CAML dividend
policy
-- H1 2013 attributable revenues to CAML Group of $21.2 million (H1 2012: $6.8 million)
-- Average copper price received of $6,996 per tonne (2012: $7,935 per tonne)
-- Cost base effectively managed and the Company remains in the
lowest quartile on the cost curve;
o C1 cash costs of production of $1,679 per tonne of copper or
$0.76 per lb (2012: $1,562 per tonne or $0.71 per lb)
o All in cost of production within Kazakhstan of $2,344 per
tonne of copper or $1.06 per lb (2012: $2,167 per tonne of copper
or $0.98 per lb)
-- EBITDA of $12.8 million (H1 2012: $0.9 million)
-- 2013 interim dividend declared of 4 pence per ordinary share to be paid 15 November 2013
-- Cash and cash equivalents of $26.5 million as at 30 June 2013 (30 June 2012: $10.3 million)
-- No debt
-- $13.6 million loss related to discontinued operations in Mongolia
Outlook
-- On track for 10,000 tonnes of copper production in 2013
o Estimated 7,800 tonnes to end Q3 2013
-- Cash and cash equivalents of $42.7 million as at 26 September 2013
-- Acquisition of additional 40% in Kounrad project remains
on-going and is expected to be completed by the end of Q1 2014
-- Production expansion plans at Kounrad on-going
Nick Clarke, Chief Executive Officer, commented
"I am delighted to be able to announce our interim financial
results for the first six months of 2013 as we transition to a
position as the leading low cost copper producer on AIM. I am
pleased with the strength of our production performance which
resulted in 4,857 tonnes of cathode copper in the period and
healthy cash-flows. This performance will enable us to return
further cash to shareholders through an interim dividend of 4 pence
per share.
Whilst the Company remains positive about the copper market
going forward, our focus will still remain on maintaining Kounrad
production within the lowest quartile of the cost curve for copper
production, thereby ensuring that we are well protected from any
potential downward pressure on copper prices. We continue to
produce cathode copper with strong margins highlighting the
strength of our business model.
During the Period, we also completed our exploration works at
Kounrad which resulted in a JORC compliant resource estimate of
616,900 tonnes of contained copper which is sufficient to support
current operations for 25 years. In addition, acceptance of the
resources by means of a submission to the Kazakhstan Government
resulted in a tax related payment of $3.7 million.
The Company has also made good progress in the technical and
financial evaluation of the planned expansion at Kounrad but will
not be committing funds to the expansion until such time as the
ownership transaction with Kenges Rakishev is completed which is
anticipated to occur no later than end Q1 2014.
In Mongolia, the expiry of the Alag Bayan licence allows the
Company to focus financial and human resources on our current
operations in Kazakhstan and other opportunities. The Company
continues to pursue the sale of the Ereen and Handgait projects but
has taken an impairment charge in the period against all of its
Mongolian assets due to the ongoing political and regulatory
uncertainties in the country."
For further information please visit www.centralasiametals.com.
(The content of the CAML website should not be considered to form
part of or be incorporated into this announcement)
Enquiries:
Nick Clarke, Nigel +44 (0)20 7898
Central Asia Metals Plc Robinson 9001
------------------------------ --------------------- ---------------
James Macfarlane, +44 (0)20 7861
Bell Pottinger Pelham Marcin Zydowicz 3232
------------------------------ --------------------- ---------------
Andrew Chubb, Neill +44 (0)20 7253
Canaccord Genuity Limited Elliot 8500
------------------------------ --------------------- ---------------
+44 (0)20 7321
Mirabaud Securities (Broker) Peter Krens 2508
------------------------------ --------------------- ---------------
Analyst presentation conference call
There will be an analyst presentation conference call on
September 26, 2013 at 09:30 (BST). The call can be accessed by
dialling +44 (0) 208-515-2319 or 0800-358-5256 and conference ID
4642438. There will be a replay of the call available on September
27, 2013 at http://www.centralasiametals.com/.
Operating & Financial Review
Kazakhstan (Kounrad)
Operations
The 10,000 tonne per annum Solvent Extraction - Electro Winning
("SX-EW") plant and associated dump leaching systems operated
successfully through the winter period, despite the extreme weather
conditions with temperatures falling below minus 30 degrees for
extended periods. During H1 2013, the Company enjoyed good
operational performance with 4,857 tonnes of cathode copper being
produced. This strong production performance is encouraging and
provides confidence that the target of 10,000 tonnes for 2013 will
be met by the end of the year.
Deliveries of copper continued throughout the Period on a
monthly basis and as at 30 June 2013 a total of 5,000 tonnes of
copper had been despatched from site by 80 railway wagons under
Traxys off-take agreements. This generated gross project revenues
of $35.4 million with an average price received per tonne of
$6,996. The technical quality of the cathode production remains
high and continues to meet the requirements of LME
specifications.
Resource Evaluation
During H1 2013, Wardell Armstrong International (WAI) completed
the resource estimated for both the eastern and western dumps to
JORC compliant guidelines. The WAI resource estimate is detailed in
the 2012 Annual Report. Following on from this work and in order to
comply with local regulations, in May 2013, the resources were
fully approved by the Kazakhstan authorities through the State
subsoil Reserves Committee (GKZ) and added to the 'state balance'
under the C1 classification.
This effectively concludes the exploration works that CAML has
conducted under the subsoil user licence commitments and records
the estimated quantities of copper available for future
exploitation. Further work is still required to be submitted to the
Ministry such as specific mining plans and working programmes but
the resource of in excess of 600,000 tonnes of contained copper is
now officially quantified and available for development.
In line with the completion of the exploration works and the
submission to the Kazakhstan authorities for the resources to be
classified by the GKZ as approved for mining, a tax related payment
of $3.7 million was paid in September 2013.
Project Ownership & Expansion
On 27 June 2013, the Company announced the revised details of
its transaction to acquire the remaining 40% of the Kounrad project
that it does not currently own (the "Kounrad Transaction"). In
consideration for the remaining 40% ownership in the project, CAML
received approval from shareholders to issue 21,211,751 ordinary
shares to Kenges Rakishev on 23 July 2013. The Kounrad Transaction
is expected to be completed by end Q1 2014.
The commercial decision to expand production at the site will be
made based on both the technical and financial considerations once
the Kounrad Transaction has been completed. Detailed technical work
is currently on-going and a number of options are being
evaluated.
Corporate & Social Responsibility
The Company was pleased to appoint Nick Shirley to the Kounrad
management team as CSR Director in late June with the specific task
of developing and implementing a Group CSR policy and environmental
standards. This will not only fully comply with Kazakhstan
regulations but also be in line with International guidance and
standards.
During the Period the Company continued to maintain a good
safety record on site with no lost time injuries. The total number
of hours worked without injury over the reporting period was
188,271 and continues the lost time injury free record since
commencement of construction in July 2010.
The Company regularly monitors all environmental aspects of its
operations and submits detailed reports as required to the state
authorities.
Mongolia
The exploration programme at the Alag Bayan licence area failed
to identify a mineral resource of sufficient size to warrant the
issue of a mining licence and accordingly the exploration licence
officially expired in June 2013.
In March 2013, Zuun Mod UUL LLC ("ZMU", the operating subsidiary
for the Ereen project) received a claim filed in a local court in
Mongolia from Songold LLC (one of the ZMU minority shareholders)
seeking the annulment of the agreement by which ZMU purchased the
licence 2616A for the Ereen project from Songold LLC. The Company
obtained legal advice and is currently in the process of vigorously
defending their position against what is believed to be an
opportunistic approach from a minority shareholder.
The Company continues to actively seek the sale of the Ereen and
Handgait projects, although the sale process is taking considerably
longer than planned due to the current political and regulatory
uncertainties in the country and the specific actions mentioned
above. As a consequence, the CAML Board has decided to make an
impairment charge of $12.7million against all of its Mongolian
assets.
Financial Review
Income Statement
Given that production only commenced on site on 30 April 2012,
the two interim periods are not directly comparable. Nevertheless,
the production of 4,857 tonnes in the six month period to 30 June
2013 indicates that the SX-EW plant operated to its nameplate
capacity in the period. A total of 5,000 tonnes of cathode copper
were sold through the off-take agreements with Traxys during the
period and total CAML Group gross revenue was $21.2 million (H1
2012: $6.8 million) on a 60% ownership basis.
Costs of production for the period were $5.1 million (H1 2012:
$1.8 million) or $6.3 million (H1 2012: $2.1 million) after
allowing for $1.2 million related to the costs of distribution and
selling. This equates to an all in unit cost of production for the
period of $2,344 per tonne of copper or $1.06 per lb inclusive of
depreciation charges. C1 cash costs of production were $1,679 per
tonne of copper or $0.76 per lb.
General and administrative costs across the Group were $3.4
million (H1 2012: $3.9 million) resulting in an operating profit of
$11.6 million (H1 2012: $0.5 million).
Group profit after tax from continuing operations was $8.5
million (H1 2012: $0.5 million) after allowing for a $3.0 million
(H1 2012: nil) provision for Corporate Income Tax in Kazakhstan.
Earnings per share from continuing operations was 9.97 cents (H1
2012: 0.61 cents).
A write down of $12.7 million (H1 2012: Nil) has been recorded
to reflect the diminution in value in the projects held in Mongolia
by the Group. The Group will continue to market and pursue the sale
of the Ereen and Handgait projects.
The CAML Board has declared an interim dividend for the period
of 4 pence per ordinary share in accordance with its dividend
policy announced in December 2012. The interim dividend equates to
approximately 25% of the attributable CAML Group revenue for the
period and will be payable on 15 November 2013 for shareholders
registered on 25 October 2013.
Balance Sheet
The Group's balance sheet remains strong and as at 30 June 2013
the total assets were $71.6 million (31 December 2012: $91.6
million). Intangible assets were reduced to $4.2 million (31
December 2012: $7.5 million) due to the write down of Alag Bayan
which in turn was offset by the addition to intangible assets of
the amount allowed for the Commercial Discovery Bonus payable as
part of the approval of the Kounrad resources.
Long-term trade and other receivables decreased to $11.8 million
(31 December 2012: $12.3 million) with the balance consisting of
$2.6 million of VAT recoverable in Kazakhstan and a further
recoverable amount of $9.2 million from the project cash flows as a
priority repayment of the loans forwarded by CAML to finance the
capital costs of the project. Short-term trade and other
receivables decreased to $1.9 million (31 December 2012: $2.9
million) with the balance consisting of $1.2 million of trade
recoverable in Kazakhstan and prepayments of $0.7 million.
The Group had $26.5 million of cash as at 30 June 2013 (31
December 2012: $33.6 million) and no debt.
Outlook
CAML management is focussed on producing 10,000 tonnes of
cathode copper in 2013 and is well on track to deliver on this
target. Technical and financial considerations regarding the
potential increase to production capacity at the Kounrad project
are in progress although no final decision will be taken by the
CAML Board until completion of the Kounrad Transaction. It is
contractually agreed that the Kounrad Transaction will be completed
by the end of Q1 2014 and CAML management are working towards
achieving this deadline.
In Mongolia, the CAML Board will work towards completing a
satisfactory sale of Ereen and Handgait.
The continued strong production performance at Kounrad underpins
the ability of the CAML Group to return funds to shareholders in
line with the CAML dividend policy, as evidenced by the 4 pence
interim dividend announced today, whilst also looking for
additional business opportunities both within Kazakhstan and
elsewhere.
CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT (Unaudited)
for the six months period ended 30 June 2013
Six months ended
----------------------
30-Jun-13 30-Jun-12
Note $'000 $'000
------------------------------------------- ----- ---------- ----------
Continuing operations
Gross Revenue 21,227 6,784
=========================================== ===== ========== ==========
Revenue 20,177 6,784
Cost of Sales (5,128) (1,819)
------------------------------------------- ----- ----------
Gross Profit 15,049 4,965
------------------------------------------- ----- ---------- ----------
Distribution and Selling costs (203) (326)
General and Administrative Expenses (3,357) (3,880)
Other Expenses (37) (24)
Exchange rate differences Gain / (Loss) 108 (202)
Operating Profit 11,560 533
------------------------------------------- ----- ---------- ----------
Finance Income 9 1
Finance Costs (115) (4)
------------------------------------------- ----- ---------- ----------
Profit before Income Tax 11,454 530
Income Tax (2,993) -
----------
Profit from continuing operations 8,461 530
------------------------------------------- ----- ---------- ----------
Discontinuing operations
(Loss) / profit from discontinuing
operations 5 (13,567) 391
---------- ----------
(Loss) / profit for the period (5,106) 921
------------------------------------------- ----- ---------- ----------
(Loss) / profit Attributable to:
- Owners of the parent (5,106) 921
------------------------------------------- ----- ---------- ----------
Earnings per share from continuing
and discontinued operations attributable
to owners of the parent during the
period (expressed in cents per share)
From continuing operations 2 9.97 0.61
From discontinued operations (15.99) 0.45
From (loss) / profit for the period (6.02) 1.06
------------------------------------------- ----- ---------- ----------
Diluted earnings per share
From continuing operations 2 9.61 0.60
From discontinued operations (15.42) 0.44
From (loss) / profit for the period (5.81) 1.04
------------------------------------------- ----- ---------- ----------
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited)
for the six months period ended 30 June 2013
Six months ended
----------------------
30-Jun-13 30-Jun-12
$'000 $'000
---------------------------------------------- ---------- ----------
Profit for the year (5,106) 921
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss
Currency translation differences (482) (998)
Other comprehensive income for the
year, net of tax (482) (998)
---------------------------------------------- ---------- ----------
Total comprehensive income for the
period (5,588) (77)
---------------------------------------------- ---------- ----------
Attributable to:
- Owners of the parent (5,588) (77)
- Non-controlling interests - -
Total comprehensive income for the
period (5,588) (77)
---------------------------------------------- ---------- ----------
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
as at 30 June 2013
Unaudited Audited Unaudited
---------- ---------- ----------
30-Jun-13 31-Dec-12 30-Jun-12
Note $'000 $'000 $'000
---------------------------------- ----- ---------- ---------- ----------
Assets
Non-Current Assets
Property, Plant and Equipment 3 19,675 20,287 23,226
Intangible Assets 4 4,211 7,474 11,262
Investments 4,282 4,006 -
Trade and Other Receivables 6 11,784 12,343 15,404
39,952 44,110 49,892
---------------------------------- ----- ---------- ---------- ----------
Current Assets
Inventory 2,377 2,592 2,124
Trade and Other Receivables 6 1,932 2,885 1,821
Cash and Cash Equivalents 26,545 33,855 10,330
30,854 39,332 14,275
---------------------------------- ----- ---------- ---------- ----------
Assets of the disposal group
classified as held for sale 792 8,131 8,355
31,646 47,463 22,630
---------------------------------- ----- ---------- ---------- ----------
Total assets 71,598 91,573 72,522
---------------------------------- ----- ---------- ---------- ----------
Equity attributable to owners
of the parent
Ordinary Shares 7 862 862 862
Share Premium 7 61,432 61,432 61,432
Treasury Shares 7 (4,236) (4,236) (2,254)
Other Reserves 2,811 2,963 3,891
Retained Earnings 34 10,008 1,793
60,903 71,029 65,724
---------------------------------- ----- ---------- ---------- ----------
Non-controlling Interests - - -
Total Equity 60,603 71,029 65,724
---------------------------------- ----- ---------- ---------- ----------
Liabilities
Non-Current Liabilities
Obligations under finance leases - - 26
Provision for Liabilities and
Charges 2,126 2,139 2,221
Borrowings - 150 -
2,126 2,289 2,247
---------------------------------- ----- ---------- ---------- ----------
Current Liabilities
Obligations under finance leases 6 19 27
Trade and Other Payables 7,652 17,459 4,049
7,658 17,478 4,076
---------------------------------- ----- ---------- ---------- ----------
Liabilities of disposal group
classified as held for sale 911 777 475
---------------------------------- ----- ---------- ---------- ----------
8,569 18,255 4,551
Total Liabilities 10,695 20,544 6,798
---------------------------------- ----- ---------- ---------- ----------
Total Equity and Liabilities 71,598 91,573 72,522
---------------------------------- ----- ---------- ---------- ----------
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES OF EQUITY
(Unaudited)
for the six months period ended 30 June 2013
Ordinary Share Treasury Other Retained Total
Shares Premium Shares Reserves Earnings
$'000 $'000 $'000 $'000 $'000 $'000
At 31 December
2012 862 61,432 (4,236) 2,963 10,008 71,029
---------------------- --------- --------- --------- ---------- ---------- --------
Total comprehensive
income - - - (482) (5,106) (5,588)
Transactions with
owners
Stock option grants - - - 330 - 330
Dividend - - - - (4,868) (4,868)
Total transactions
with owners - - - 330 (4,868) (4,538)
---------------------- --------- --------- --------- ---------- ---------- --------
At 30 June 2013 862 61,432 (4,236) 2,811 34 60,903
---------------------- --------- --------- --------- ---------- ---------- --------
Ordinary Share Treasury Other Retained Total
Shares Premium Shares Reserves Earnings
$'000 $'000 $'000 $'000 $'000 $'000
At 31 December
2011 862 61,432 (2,304) 4,717 872 65,579
---------------------- --------- --------- --------- ---------- ---------- --------
Total comprehensive
income - - - (998) 921 (77)
Transactions with
owners
Stock options grants - - - 172 - 172
Sale of treasury
shares - - 50 - - 50
Total transactions
with owners - - 50 172 - 222
---------------------- --------- --------- --------- ---------- ---------- --------
At 30 June 2012 862 61,432 (2,254) 3,891 1,793 65,724
---------------------- --------- --------- --------- ---------- ---------- --------
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
for the six months period ended 30 June 2013
Six months ended
----------------------
30-Jun-13 30-Jun-12
Note $'000 $'000
------------------------------------------- ----- ---------- ----------
Cash Flows from Operating Activities
Cash Generated from operations 8 13,170 (1,549)
Corporation tax paid (4,477) -
Interest Paid (17) (4)
Receipts from sale of Kenes project - 200
Net Cash Generated from / (Absorbed
by) Operating Activities 8,676 (1,353)
------------------------------------------- ----- ---------- ----------
Cash Flows from Investing Activities
Payment of minorities Tochtar - (500)
Increase in Investments (276) -
Kounrad capital expenditure 3 (787) (3,419)
Proceeds from sale of Property,
Plant and Equipment 3 5 2
Purchase of Intangible Assets 4 (10) (94)
Exploration Costs Capitalised 4 (219) (475)
Interest Received 9 1
Discontinued operations (341) -
Net Cash used in Investing Activities (1,619) (4,485)
------------------------------------------- ----- ---------- ----------
Cash Flows from Financing Activities
Dividend paid (14,306) -
Sale of Treasury Shares 7 - 50
Net Cash (Absorbed by) / generated
from Financing Activity (14,306) 50
------------------------------------------- ----- ---------- ----------
Effect of foreign exchange rates
on cash and cash equivalents (61) 75
Net Decrease in Cash and Cash Equivalents (7,310) (5,713)
Cash and Cash Equivalents at 1 January 33,855 16,043
Cash and Cash Equivalents at 30
June 26,545 10,330
------------------------------------------- ----- ---------- ----------
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
6 months ended 30 June 2013
Nature of Business
Central Asia Metals plc and its subsidiaries are a copper
producing group focussed on base metals in Central Asia and a
parent holding company based in the United Kingdom. The Company
currently has various operations in Mongolia which are all held for
sale.
Basis of Preparation
The interim financial information has been prepared on the basis
of the recognition and measurement requirements of International
Financial Reporting Standards (IFRS) as adopted by the European
Union (EU) and implemented in the UK and in accordance with the AIM
Rules.
The accounting policies, methods of computation and presentation
used in the preparation of the interim financial information are
the same as those used in the Group's audited financial statements
for the year ended 31 December 2012, which this interim
consolidated financial information should be read in conjunction
with.
These condensed interim financial statements were approved for
issue on 26 September 2013. They do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2012 were
approved by the board of directors on 27 March 2013 and delivered
to the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of
the Companies Act 2006. The interim financial information should be
read in conjunction with the annual financial statements for the
year ended 31 December 2012.
These condensed interim financial statements have been reviewed,
not audited.
With effect from 1 January 2013, IFRS 11 (Joint Arrangements)
removes the option of proportional consolidation for jointly owned
legal entities and imposes the requirements for equity accounting
on such entities. The Company has made use of an EU exemption which
allows late adoption of IFRS 11 to be delayed until 1 January 2014
in order to ensure consistency of computation and presentation with
regard to its joint venture operations in Kazakhstan. These joint
venture operations are currently the subject of a purchase
transaction which will result in the Company owning 100% of the
companies and assets on completion of the project.
The accounting policies adopted are consistent with those used
in the consolidated annual financial statements for the year ended
December 31, 2012 except as described below
-- Taxes on income in the interim periods are accrued using the
tax rate that would be applicable to expected total annual
earnings;
-- IFRS 13 "Fair value measurement". IFRS 13 measurement and
disclosure requirements are applicable for the 30 June 2013.
-- IAS 1 Presentation of Financial Statements. The Group adopted
the amendments to IAS 1 which required it to group other
comprehensive income items by those that will be reclassified and
those that will not be subsequently reclassified to profit and
loss. The amendment affected presentation and had no impact on the
group's financial position or performance.
After review of the Group's operations, financial position and
forecasts, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future. Accordingly, the directors continue to
adopt the going concern basis in preparing the unaudited interim
financial information.
1. Segmental Information
As at 30 June 2013, the Group consisted of only one business
segment, namely Kounrad in Kazakhstan. The Company operates a
10,000 tonne per annum SX-EW copper plant at Kounrad. The UK head
office does not represent a separate business segment.
Previously reported business segments within the Group, namely
all the Mongolian operations, have now all been classified as held
for sale as at 30 June 2013. The Group also holds two other
Mongolian based legal entities for sale (New CAML Mongolia LLC and
Mongolian Silver Mountain LLC) and the Holland based holding
company (CAML Mongolia BV).
The Group operates out of one key geographical area which is
Kazakhstan.
The Board will continue to assess the performance of the
remaining business segment, Kounrad, based on a number of key
operational and financial measures relevant to the production of
copper at Kounrad. The key measures relate to production output,
revenues and the overall costs of producing the copper together
with close monitoring of all capital related expenditure.
The segmental results for the six months period ended 30 June
2013 are as follows:
Segmental result
----------------------
Unaudited Unaudited
Six months ended
----------------------
30-Jun-13 30-Jun-12
$'000 $'000
---------- ----------
Gross revenue 21,227 6,784
----------------------------------------- ---------- ----------
Distribution and Selling costs (1,050) -
---------- ----------
Revenue 20,177 6,784
----------------------------------------- ---------- ----------
Kounrad EBITDA 15,313 4,293
Unallocated costs including corporate (2,539) (3,403)
----------------------------------------- ---------- ----------
Group continuing operations EBITDA 12,774 890
Depreciation and amortisation (1,285) (131)
Exchange rate differences gain / (loss) 108 (202)
Other income / (expenses), net (37) (24)
Finance income 9 1
Finance costs (115) (4)
---------- ----------
Profit before taxation 11,454 530
----------------------------------------- ---------- ----------
Income tax (2,993) -
---------- ----------
Profit after taxation 8,461 530
----------------------------------------- ---------- ----------
Discontinued operations (13,567) 391
----------------------------------------- ---------- ----------
(Loss) / profit for the period (5,106) 921
----------------------------------------- ---------- ----------
The segmental assets and liabilities for the six months ended 30
June 2013 are presented in the condensed interim consolidated
statement of financial position.
2. Earnings per share
Basic earnings per share
Basic profit per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year
excluding ordinary shares purchased by the Company and held as
treasury shares.
(a) Basic Six months ended
------------------------
30-Jun-13 30-Jun-12
$'000 $'000
----------------------------------------------------- ----------- -----------
Profit from continuing operations attributable
to owners of the parent 8,461 530
(Loss) / profit from discontinued operations
attributable to owners of the parent (13,567) 391
Total (5,106) 921
----------------------------------------------------- ----------- -----------
Weighted average number of ordinary shares
in issue 84,847,005 86,165,934
----------------------------------------------------- ----------- -----------
Earnings per share from continuing and discontinued
operations attributable to owners of the parent
during the period (expressed in cents per share) $ cents $ cents
From continuing operations 9.97 0.61
From discontinued operations (15.99) 0.45
From (loss) / profit for the period (6.02) 1.06
----------------------------------------------------- ----------- -----------
(b) Diluted Six months ended
------------------------
30-Jun-13 30-Jun-12
$'000 $'000
----------------------------------------------------- ----------- -----------
Profit from continuing operations attributable
to owners of the parent 8,461 530
(Loss) / profit from discontinued operations
attributable to owners of the parent (13,567) 391
Total (5,106) 921
----------------------------------------------------- ----------- -----------
Weighted average number of ordinary shares
in issue 84,847,005 86,165,934
Adjusted for:
- Share Options 1,964,074 1,374,356
- Mirabaud Securities warrants 1,192,053 1,192,053
Weighted average number of ordinary shares
for diluted earnings per share 88,003,132 88,732,343
----------------------------------------------------- ----------- -----------
Diluted earnings per share $ cents $ cents
From continuing operations 9.61 0.60
From discontinued operations (15.42) 0.44
From (loss) / profit for the period (5.81) 1.04
----------------------------------------------------- ----------- -----------
The Mirabaud Securities warrants were granted at the time of the
IPO in September 2010. They have an exercise price of 96 pence (the
IPO price) and were originally exercisable until 24 September 2013.
In agreement with Mirabaud Securities, on 20 September 2013, the
exercise period was extended until 24 September 2015.
3. Property, Plant and Equipment
Construction Plant and Motor Vehicles Total
in progress Equipment and Office
Equipment
Group $'000 $'000 $'000 $'000
---------------------------- ------------- ----------- --------------- --------
Cost
At 1 January 2012 19,357 3,689 828 23,874
Additions 5,111 - 327 5,438
Disposals - (127) (103) (230)
Transfers (20,373) 20,373 - -
Change in JV accounting (4,090) (2,355) (201) (6,646)
Translation difference 39 37 12 88
---------------------------- ------------- ----------- --------------- --------
At 31 December 2012 44 21,617 863 22,524
Additions 600 99 88 787
Disposals - (6) - (6)
Transfers (98) 98 - -
Translation difference - (139) (7) (146)
----------------------------
At 30 June 2013 546 21,669 944 23,159
---------------------------- ------------- ----------- --------------- --------
Accumulated Depreciation
At 1 January 2012 - 1,072 339 1,411
Provided during the period - 1,174 155 1,329
Disposals - (118) (82) (200)
Change in JV accounting - (186) (100) (286)
Translation difference - (16) (1) (17)
---------------------------- ------------- --------------- --------
At 31 December 2012 - 1,926 311 2,237
Provided during the period - 1,208 58 1,266
Disposals - (1) - (1)
Translation difference - (16) (2) (18)
----------------------------
At 30 June 2013 - 3,117 367 3,484
NBV at 1 January 2013 44 19,691 552 20,287
---------------------------- ------------- ----------- --------------- --------
NBV at 30 June 2013 546 18,552 577 19,675
---------------------------- ------------- ----------- --------------- --------
4. Intangible Assets
Deferred Mining Computer Total
Exploration Licences Software
and Evaluation and Permits
costs
Group $'000 $'000 $'000 $'000
---------------------------- ---------------- ------------- ---------- --------
Cost
At 1 January 2012 5,501 3,412 24 8,937
Additions 1,067 49 34 1,150
Disposals (23) (64) - (87)
Change in JV accounting - (2,351) (5) (2,356)
Exchange Difference (137) 4 4 (129)
---------------------------- ---------------- ------------- ---------- --------
At 31 December 2012 6,408 1,050 57 7,515
Additions 219 2,217 10 2,446
Transfer to disposal group
classified as held for
sale (4,505) (1,000) - (5,505)
Exchange Difference (178) - - (178)
---------------------------- ---------------- ------------- ---------- --------
At 30 June 2013 1,944 2,267 67 4,278
---------------------------- ---------------- ------------- ---------- --------
Accumulated Amortisation
At 1 January 2012 8 17 13 38
Provided during the year - 1 31 32
Disposal (8) (21) - (29)
Change in JV accounting - - (3) (3)
Exchange Difference - 4 (1) 3
---------------------------- ---------------- ------------- ---------- --------
At 31 December 2012 - 1 40 41
Provided during the year 21 1 4 26
At 30 June 2013 21 2 44 67
NBV at 1 January 2013 6,408 1,049 17 7,474
---------------------------- ---------------- ------------- ---------- --------
NBV at 30 June 2013 1,923 2,265 23 4,211
---------------------------- ---------------- ------------- ---------- --------
5. Assets held for sale
The assets and liabilities related to all of the Group's
Mongolian subsidiaries are currently presented as held for
sale.
The Company continues to actively seek the sale of the Ereen and
Handgait projects, although the sale process is taking longer than
planned due to the current political and regulatory uncertainties
in the country around the mining laws and the laws around foreign
ownership of assets.
As a consequence, the Company deemed it prudent to write down
all of its Mongolian assets resulting in a total impairment charge
of $12.7 million against the assets and a loss from discontinuing
operations for the six month period to 30 June 2013 of $13,566,567
(H1 2012: profit $390,656).
Six months ended
----------------------
30-Jun-13 30-Jun-12
Discontinuing operations $'000 $'000
------------------------------------- ---------- ----------
General and Administrative Expenses (190) (280)
Impairment of Mongolian assets (12,670) -
Exchange rate differences (Loss)
/ Gain (707) 665
Other - 6
(Loss) / profit from discontinuing
operations (13,567) 391
------------------------------------- ---------- ----------
6. Trade and Other Receivables
30-Jun-13 31-Dec-12
$'000 $'000
---------------------------------- ---------- ----------
Trade and Other Receivables, net 3,792 2,176
Receivables from related parties 9,226 12,340
Prepayments 698 712
13,716 15,228
---------------------------------- ---------- ----------
Less: non - current portion
Trade and Other Receivables (2,558) (3)
Receivables from related parties (9,226) (12,340)
Current Portion 1,932 2,885
---------------------------------- ---------- ----------
The carrying value of all the above receivables is a reasonable
approximation of fair value.
7. Share Capital and Premium
Number Ordinary Share Premium Treasury Total Equity
of Shares Shares Shares
No $'000 $'000 $'000 $'000
At 1 January 2012 86,165,934 862 61,432 (2,304) 59,990
------------------------ ----------- --------- -------------- --------- -------------
Purchase of own
shares - - - (1,982) (1,982)
Sale of treasury
shares 50 50
At 31 December
2012 86,165,934 862 61,432 (4,236) 58,058
------------------------ ----------- --------- -------------- --------- -------------
6 months 2013 movement - - - - -
At 30 June 2013 86,165,934 862 61,432 (4,236) 58,058
------------------------ ----------- --------- -------------- --------- -------------
During 6 months 2013 the Group had no balances attributable to
non-controlling interests (2012: nil).
8. Cash Generated from operations
Six months ended
-----------------------------------------------
30-Jun-13 30-Jun-12
$'000 $'000
--------------------- ------------------------
Profit before income tax 11,454 530
--------------------------------------- --------------------- ------------------------
Adjustments for :
Depreciation 1,259 342
Amortisation 26 14
Foreign Exchange (108) 202
Share Options 330 172
Finance income (9) (1)
Finance Costs 115 4
Charges in working capital:
Inventories 215 (1,583)
Trade and Other Receivables (1,609) (1,684)
Movement in receivables (related
parties) 2,550 (2,473)
Trade and Other Payables (1,012) 2,846
Movement in Provisions (41) 82
Cash Generated / (used) in operations 13,170 (1,549)
--------------------------------------- --------------------- ------------------------
9. Commitments
30-Jun-13 31-Dec-12
$'000 $'000
------------------------------- ---------- ----------
Kazakhstan 892 411
UK 163 71
Mongolia 75 103
Total 1,130 585
------------------------------- ---------- ----------
30-Jun-13 31-Dec-12
$'000 $'000
------------------------------- ---------- ----------
Property, plant and equipment 202 186
Intangible assets 257 224
Other 671 175
Total 1,130 585
------------------------------- ---------- ----------
At 30 June 2013 amounts contracted for but not provided in the
financial statements amounted to $1,130,049 for the Group (31
December 2012: $584,960).
10. Related Party Transactions
During 6 month period ending 30 June 2013 the Group had no
transactions with related parties with the exception of the
company's subsidiaries.
11. Post Balance Sheet Events
On 1 August 2013 the Company completed a share premium
cancellation scheme through the courts which resulted in the
cancellation of the whole of its share premium account and thereby
created a reserve of $61,431,533. The Company took this course of
action in order to be able to increase distributable reserves and
thus enable it to continue with its dividend policy.
The CAML Board has subsequently, in line with these interim
results, declared an interim dividend of 4 pence per ordinary share
(H1 2012: 3.3 pence) which is payable on 15 November 2013 to
shareholders on the register at 25 October 2013. This interim
dividend totalling GBP3,393,880 (GBP) has not been recognised as a
liability in this half year financial report.
On 11 September 2013, Sary Kazna LLP, a subsidiary of CAML, paid
$3.7 million to the Kazakhstan Tax Authorities for the approval of
the resources at Kounrad and in order for them to be placed on the
Kazakhstan Government register of mineral resources. This payment,
known as a Commercial Discovery Bonus, is based on a percentage
(0.1%) of the potential mineral value of the contained copper
within the overall resource.
On 23 July 2013, an Extraordinary General Meeting was held to
approve the issue of 21,211,751 new ordinary shares as part of the
consideration for the completion of the Kounrad Transaction with
Kenges Rakishev. The shares will only be issued and allotted once
the Kounrad Transaction is completed and CAML is the owner of 100%
of the project.
In accordance with the agreement, an amount of up to a maximum
of GBP904,120 is a contingent liability for any benefits that would
have accrued to Kenges Rakishev had he been the registered holder
of 21,211,751 ordinary shares from the date that the Company
becomes the 100% beneficial owner of Kounrad Copper Company
LLP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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