ALTYNGOLD PLC

Unaudited Interim Results – six months to 30 June 2022

AltynGold Plc (“AltynGold” or the “Company”), the gold mining and development company, announces its unaudited results for the six months to 30 June 2022.

The Company had a successful 6 months with milling of ore exceeding 300kt generating an increase in profits to US$11.6m (2021 US$9.3m). The principal KPI’s saw an increase from the prior period, the Company is continuing to grow and develop in line with its medium-term plan.

The Company’s aim is to develop the mine at Sekisovskoye moving from its current level of processing to 1mt of ore in a phased development. The current plan is to move to 650ktpa in the current period and progressively move up to 850ktpa in the medium term.

The management are currently finalising the funding with the bank to invest in the processing plant to move the capability to 1mtpa.

In previous periods the Company has been developing the mine site, investing in equipment and making use of subcontractors in order to develop the mine and extract ore for processing. The move to increase the involvement of the subcontractors has streamlined the process of ore extraction and also accelerated the mines capital development, the costs of the latter are reflected in the additions to mining properties in the current period.

In line with its mine developments the Company is aware of its social and environmental responsibilities, particularly in relation to climate change and carbon reduction. Currently in Kazakhstan there are three levels of categorisation for companies based on their carbon emissions. AltynGold is in the lowest level of category, and closely monitors its emissions, reporting to the relevant government bodies on a regular basis. The Company will continue to look at the development of its social and environmental policies as it evolves.

Highlights:

Mine development

  • Transport declines No.1 and No. 2 have both been developed to the horizon 100masl from 150masl in the prior period.
  • Development of the mine tunneling amounted to 2,992 linear metres, (H12021: 3,131 linear metres).
  • Exploration drilling amounted to 11,040 linear metres, (2021: 8,200m).
  • Ore was mined in the period principally from ore bodies 3.8 and 11 at horizons between 164masl to 117 masl.
  • An extension for the licence at Teren-Sai has been applied for in July 2022 to continue exploration works for a further three years.

Production

  • The milled ore was 306,599t (H1 2021: 262,744t), in the current period, an increase of 17%.
  • Average processed gold grade in the period was 2.06g/t (H1 2021: 1.88g/t).
  • Gold recovery averaged 83.44% during the 6 month period (H1 2021: 82.18%).
  • H1 2022 gold production from Sekisovskoye was 16,965oz, compared with H1 2021 of 13,066oz
  • H1 2022 gold sold was 17,542oz, compared with H1 2021 of 12,560oz

Financial

  • The turnover has increased to US$32m (H1 2021: US$23m). The gold price achieved averaged US$1,830oz during the period (H1 2021: US$1,832oz).
  • The Company made a gross profit of US$17m (H1 2021: gross profit of US$14m), with a net profit before taxation of US$11.6m (H1 2021: loss of US$9.3m).
  • The total cash cost of production was US$884oz (H1 2021: US$766oz).
  • Adjusted EBITDA achieved was US$16.6m (H1: 2021: US$13.4m).
  • A loan in principal has been agreed with Bank Center Credit for an additional US$40m to fund the Company’s capital program.

Aidar Assaubayev, CEO of AltynGold plc commented:

‘The Company is moving forward in its plan to increase its production capability to 1mtpa and has agreed an in principal loan with Bank Center Credit in order to assist in this process. The current results are very encouraging and demonstrate the strong economics of our business’.

For further information please contact:

AltynGold plc

For further information please contact:

Rajinder Basra, CFO

+44 (0) 203 432 3198

 

Email: info@altyn.uk

Information on the Company

AltynGold plc (LSE:ALTN) is an exploration and development company, which is listed on the main market segment of the London Stock Exchange. The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

This report will be available on our website at www.altyngold.uk

H1 2022 Review

Mine developments

H1 2022 Operational Overview – Sekisovskoye

 

 

 

 

Ore

 

H1 2022

H1 2021

Ore mined

tons

277,398

266,607

Gold grade

g/t

2.06

1.85

Silver grade

g/t

1.69

1.80

 

 

 

 

Mineral processing

 

H1 2022

H1 2021

Milling

tons

306,599

262,774

Gold grade

g/t

2.06

1.88

Silver grade

g/t

1.69

1.83

Gold recovery

%

83.44%

82.18%

Silver recovery

%

72.34%

73.19%

Gold produced

ounces

16,965

13,066

Silver produced

ounces

11,306

11,315

The principal development milestones achieved in the period were:

  • Tunnelling and decline development of 2,992 linear metres, in the similar period last year it was 3131 metres.
  • Exploration drilling was carried out and amounted to11,039m (2021: 8,200 linear metres).

The declines have now been developed to 100masl. The ore bodies currently being developed are ore bodies 3, 8 and 11 which, are expected to continue to be mined into the second half of the year. The principal ore body that is ready for extraction after those noted above will be ore body 10 above which is above 100masl and is readily accessible.

The principal capital expenditure relating to plant to extract ore at the Sekisovskoye mine is now in place; the ongoing capital expenditure will relate to the development of the processing plant to increase the capability of ore processing and further development of the mine declines.

The gold grade has increased from 1.88g/t to 2.06g/t and is in line with that budgeted for the period. Further increases are expected as the ore bodies are developed.

H1 2022 – Teren-Sai

In the current period the Company has been concentrating on the finalising its plans for future development of the site, with proposals being sent into the government department in July 2022, these are currently being reviewed. The initial exploration phase requested is three years, but the Company is anticipating a move to production within this period once more detailed studies have been carried out on the approach to develop the site and define the ore bodies.

As part of the review of Teren-Sai the Company has narrowed its search parameters of the 288km2 site, and reduced the areas of interest, to concentrate on those areas showing significant potential. Areas that are no longer of significance are to be returned to the government for alternative use.

H1 2022 Financial Review

The Company has reported a gross profit of US$17m for H1 2022, against US$14m for H1 2021, with turnover of US$32m (H1 2021 US$23m).

The results are in line with budget, with 306.5kt of ore milled, the Company is expecting to process up to 650,000t for the year. The average gold price achieved was similar to the prior period at of US$1,830 (H1 2021 US$1,832).

Sekisovskoye produced 16,965oz of gold in H1 2022 (H1 2021: 13,066oz). Gold sold during the period amounted to 17,542oz (H2 2021: 12,560oz).

The operating cash cost of production (cost of sales excluding depreciation and provisions) for the period was US$730/oz (H1 2021 US$546/oz). The total cash cost was US$884/oz as compared to US$766/oz in H1 2021. These are in line with the expected costs for the period.

Administrative costs have been contained and were US$2.7m which is similar to the prior period. Inflationary pressures are increasing in both Kazakhstan and the UK, and the management will be monitoring the position closely to ensure that action is taken to minimise any significant increase in costs to the Company. The Company has benefited in the current period from the strength of the US Dollar, (which is the currency in which revenues are received) against the Kazakh, at the 31December 2021 it was 432 Kazakh Tenge, and the dollar has averaged 448 Kazakh Tenge in the six month period. The current rate in September is one US$ to 485 Kazakh Tenge.

In terms of finance costs these are similar to the prior period; with no new loans in the period; the finance cost was US$1.7m in both periods. Interest and loan commitments were paid as they arose, and plans are in place to repay the bond of US$10m in December 2022.

The significant change in the financial position of the Company relates to the movement in advance payments made to the contractor who is responsible for the capital development and ore extraction services. As the development has progressed and production growing, the payments have increased in the period. The current contract runs until April 2023. A monthly drawdown and reconciliation against monies advanced is done on a monthly basis as the mine development continues. The Company generated an EBITDA of US$16.6m (2021: US$13.4m), but a substantial amount of this was absorbed in the period by the capex development prepayments as noted above.

As of 30 June 2022, the Company had cash balances of US$1.1m. A loan in principal has been agreed with Bank Center Credit in Kazakhstan, there are sufficient projected funds from this and from current trading to meet the Company’s medium term plans. This includes the repayment of the US$10m bonds that are due for repayment in December 2022.

Aidar Assaubayev
Chief Executive Officer

26 September 2022

Directors Responsibility Statement and Report on Principal Risks and Uncertainties

Responsibility statement

The Board confirms to the best of their knowledge, that the condensed set of financial statements have been prepared in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority.

The interim management report includes a fair review of the information required by:

DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

DTR 4.2.8R of the Disclosures and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

The Company’s management has analysed the risks and uncertainties and has in place control systems that monitor daily the performance of the business via key performance indicators. Certain factors are beyond the control of the Company such as the fluctuations in the price of gold and possible political upheaval. However, the Company is aware of these factors and tries to mitigate these as far as possible. In relation to the gold price the Company is pushing to achieve a lower cost base in order to minimise possible downward pressure of gold prices on profitability. In addition, it maintains close relationships with the Kazakhstan authorities in order to minimise bureaucratic delays and problems.

Risks and uncertainties identified by the Company are set out on page 9 and 10 of the 2021 Annual Report and Accounts and are reviewed on an ongoing basis. There have been no significant changes in the first half of 2022 to the principal risks and uncertainties as set out in the 2020 Annual Report and Accounts and these are as follows:

  • Fiscal changes in Kazakhstan
  • No access to capital
  • Commodity price risk
  • Currency risk
  • Reliance on operating in one country
  • Reliant on one operating mine
  • Technical difficulties associated with developing the underground mines at Sekisovskoye and Teren-Sai
  • Failure to achieve production estimates
  • COVID -19 uncertainties
  • Health, safety and environment

The Directors do not expect any changes in the principal risks for the remaining six months of the financial year.

Aidar Assaubayev
Chief Executive Officer

26 September 2022

ALTYNGOLD PLC

Consolidated statement of profit or loss – six months to 30 June 2022

 

Six months
ended 30 June
2022

Six months
ended 30 June
2021

Unaudited

Unaudited

US$’000

US$’000

Revenue

32,095

23,009

Cost of sales

(15,137)

(9,037)

Gross profit

16,958

13,972

Administrative expenses

(2,714)

(2,757)

Operating profit

14,244

11,215

Foreign exchange

(954)

(278)

Finance expense

(1,734)

(1,676)

Profit before taxation

11,556

9,261

Taxation

(689)

(510)

Profit attributable to equity shareholders

10,867

8,751

Profit per ordinary share Note
Basic and diluted (US cent) 3

39.76c

32.03c

ALTYNGOLD PLC

Consolidated statement of profit or loss and other comprehensive income

 

 

 

Six months

ended 30 June

2022

 

Six months

ended 30 June

2021

 

 

unaudited

unaudited

 

 

 

(restated)

 

 

US$’000

US$’000

Profit for the period

 

10,867

8,751

Currency translation differences arising on translations
of foreign operations items which will or may be reclassified
to profit or loss

 

(2,506)

(1,493)

Total comprehensive profit for the period
attributable to equity shareholders

 

8,361

 

7,258

ALTYNGOLD PLC

Consolidated statement of financial position

 

 

 

 

 

Six months

ended 30 June

2022

 

Six months

ended 30 June

2021

 

Notes

 

(unaudited)

(audited)

 

 

 

US$’000

US$’000

 

Non-current assets

 

 

 

 

Intangible assets

5

 

12,576

13,016

Property, plant and equipment

6

 

34,130

33,163

Other receivables

7

 

10,348

5,996

Deferred tax asset

 

 

6,936

4,026

Restricted cash

 

 

35

13

 

 

 

64,025

56,214

 

Current assets

 

 

 

 

Inventories

 

 

10,775

8,522

Trade and other receivables

7

 

21,536

12,874

Cash and cash equivalents

 

 

1,148

3,478

 

 

 

33,459

24,874

Total assets

 

 

97,484

81,088

 

Current liabilities

 

 

 

 

Trade and other payables

 

 

(6,030)

(6,111)

Provisions

 

 

(250)

(186)

Borrowings

10

 

(19,374)

(3,238)

 

 

 

(25,654)

(9,535)

Net current assets

 

 

7,805

15,339

 

Non-current liabilities

 

 

 

 

Other financial liabilities & payables

 

 

(450)

(388)

Provisions

 

 

(5,488)

(5,082)

Borrowings

10

 

(5,366)

(23,490)

(11,304)

(28,960)

Total liabilities

 

 

(36,958)

(38,495)

Net assets

 

 

60,526

42,593

 

Equity

 

 

 

 

Called-up share capital

 

 

(4,267)

(4,267)

Share premium

 

 

(152,839)

(152,839)

Merger reserve

 

 

282

282

Other reserve

 

 

-

(333)

Currency translation reserve

 

 

56,958

54,452

Accumulated loss

 

 

39,340

60,112

Total equity

 

 

(60,526)

(42,593)

 

The financial information was approved and authorised for issue by the Board of Directors on 26 September 2022 and was signed on its behalf by:

Aidar Assaubayev – Chief Executive Officer

ALTYNGOLD PLC

Consolidated statement of changes of equity

 

 

 

 

Share
capital

Share
premium

Merger
reserve

Currency
translation
reserve

Share based
payment
reserve

Other
reserves

Accumulated
l
osses

Total

Unaudited

US$'000

US$'000

US'000

US$'000

US$'000

US$'000

US$'000

US$'000

At 1 January 2022

4,267

152,839

(282)

(51,412)

-

-

(50,207)

55,205

Profit for the period

-

-

-

-

-

-

10,867

10,867

Exchange differences on translating foreign operations

-

-

-

(5,546)

 

-

-

(5,546)

Total comprehensive income for the period

-

-

-

(5,546)

-

-

10,867

5,321

At 30 June 2022

4,267

152,839

(282)

(56,958)

-

-

(39,340)

60,526

 

 

 

 

 

 

 

 

 

Unaudited

US$'000

US$'000

US'000

US$'000

US$'000

US$'000

US$'000

US$'000

At 1 January 2021

4,267

152,839

(282)

(52,959)

-

333

(68,863)

35,335

Profit for the period

-

-

-

-

-

-

8,751

8,751

Exchange differences on translating foreign operations

-

-

-

(1,493)

 

-

-

(1,493)

Total comprehensive income for the period

-

-

-

(1,493)

-

-

8,751

7,258

At 30 June 2021

4,267

152,839

(282)

(54,452)

-

333

(60,112)

42,593

 

 

 

 

 

 

 

 

 

Audited

US$'000

US$'000

US'000

US$'000

US$'000

US$’000

US$'000

US$'000

At 1 January 2021

4,267

152,839

(282)

(52,959)

-

333

(68,863)

35,335

Profit for the year

-

-

-

-

-

-

18,323

18,323

Exchange differences on translating foreign operations

-

-

-

1,547

 

-

-

1,547

Total comprehensive income

-

-

-

1,547

-

-

18,323

19,870

Transfer to reserves

-

-

2

-

-

(333)

333

-

At 31 December 2021

4,267

152,839

(282)

(51,412)

-

-

(50,207)

55,205

 

ALTYNGOLD PLC

Consolidated statement of cash flows

 

 

 

 

Six months ended

30 June 2022

Six months ended

30 June 2021

 

 

 

 

(unaudited)

 

(unaudited)

Note

 

US$’000

US$’000

Net cash inflow from operating activities

8

 

13,622

1,819

Investing activities

Purchase of property, plant and equipment

 

*(11,805)

*(2,133)

Acquisition of intangible assets

 

 

(189)

(375)

Net cash used in investing activities

(11,994)

(2,508)

 

Financing activities

 

 

 

 

Loans received

 

 

-

4,641

Loans repaid

 

 

(2,668)

(6,518)

Interest paid

 

 

(1,282)

(1,120)

Net cash flow decrease from financing activities

 

 

(3,950)

(2,997)

Decrease in cash and cash equivalents

 

 

(2,322)

(3,686)

Cash and cash equivalents at the beginning of the period

 

3,598

7,154

 

Effect of exchange rate fluctuations on cash held

 

 

(128)

 

10

Cash and cash equivalents at end of the period

1,148

3,478

* Cash paid to purchase property, plant and equipment represents additions of US4.9m (2021 :US$4.2m) (note 6) plus the cash amounts paid as a result of the net increase in prepayments/payables of US$6.9m from the prior year.(2021 a net decrease in prepayments/payables of $2.1m).

ALTYNGOLD PLC

Notes to the consolidated financial information

1. Basis of preparation

General

AltynGold Plc (the “Company”) is a Company incorporated in England and Wales under the Companies Act 2006. The address of its registered office, and place of business of the Company and its subsidiaries is set out within the Company information at the end of this interim report.

The Company is registered and domiciled in England and Wales, whose shares are publicly traded on the London Stock Exchange. The interim financial results for the period ended 30 June 2022 are unaudited. The financial information contained within this report does not constitute statutory accounts as defined by Section 434(3) of the Companies Act 2006.

This interim financial information of the Company and its subsidiaries (“the Group”) for the six months ended 30 June 2022 have been prepared, in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority, and on a basis consistent with the accounting policies set out in the Group's consolidated annual financial statements for the year ended 31 December 2021. It has not been audited, does not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2021 , which has been prepared in accordance with both “international accounting standards in conformity with the requirements of the Companies Act 2006” and “international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union”.

These interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2021 were approved by the board of directors on 24 June 2022 and delivered to the Registrar of Companies. The report of the auditors on those accounts was qualified in relation to not obtaining sufficient audit evidence in relation to a prepayment at the year end. Further details are available on page 37 of the annual report.

The financial statements have not been reviewed.

The financial information is presented in US Dollars and has been prepared under the historical cost convention. On 31 December 2021, IFRS as adopted by the European Union at that date was brought into UK law and became UK adopted international accounting standards, with future changes being subject to endorsement by the UK Endorsement Board.

The same accounting policies, presentation and method of computation together with critical accounting estimates, assumptions and judgements are followed in this consolidated financial information as were applied in the Group's latest annual financial statements except that in the current financial year, the Group has adopted a number of revised Standards and Interpretations. However, none of these have had a material impact on the Group. In addition, the IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group.

Going concern

Turnover and profitability have continued to grow as the Group expands production. The Company has made significant payments to facilitate the capital development of the mine at Sekisovskoye and for ore extraction services for which the contract runs to April 2023. These prepayments will be offset as production and capital development continues during the year.

At the period end the Group had cash resources of US$1.1m (31 December 2021: US$3.6m). The Board have reviewed the Group’s cash flow forecasts for the period to December 2023. The forecasts are based on the current approved budgets taking into account any adjustments from current trading. The principal capital costs and to a large extent the mining costs of ore extraction have now been made and the Directors are of the opinion that the current cash balances and cash generated from operations will be sufficient for the Group to meet its cash flow requirements. In addition, the Group are in the final stages of agreeing a US$40m loan facility for further capital development.

The Board have considered at the period end possible stress case scenarios that they consider may likely impact the Group’s operations, financial position and forecasts, such as factors impacting the production and possible falls in gold prices. From the analysis undertaken the Board have concluded that the Group will be able to continue to trade based on its existing resources. The stress tests included a drop in the gold price of 10% from the current gold price and budgeted production by 10%, in both scenarios and combination of both together it was concluded that the Group had sufficient cash reserves to continue to operate. The Board therefore considers it appropriate to adopt the going concern basis of accounting in preparing these financial statements.

2. Segmental information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments and making strategic decision, has been identified as the Board of Directors.

The Board of Directors consider there to be two operating segments, the exploration and development of mineral resources at Sekisovskoye and at Teren-Sai, both based in one geographical segment, being Kazakhstan. All sales were made in Kazakhstan from the mine at Sekisovskoye. However, in relation to Teren-Sai as there is discrete financial information available and the assets account for greater than 10% of the combined total assets of all segments it is a separate operating segment.

Teren-Sai is an exploration asset, details of the carrying value of the asset are shown in note 5.

3. Profit per ordinary share

Basic profit per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The weighted average number of ordinary shares and retained profit for the financial period for calculating the basic loss per share for the period are as follows:

 

 

Six months

ended 30

June 2022

Six months

ended 30

June 2021

 

(unaudited)

(unaudited)

The basic weighted average number of ordinary shares
in issue during the period

 

27,332,933

27,332,933

The profit for the period attributable to equity shareholders (US$’000s)

 

10,867

8,751

4. Alternative performance measures

The Directors have presented the alternative performance measures adjusted EBITDA , operating cash cost and total cash cost as they monitor these performance measures at a consolidated level and the Directors believe it is relevant in measuring the Group’s performance.

A reconciliation of the alternative performance measures is shown below.

Adjusted EBITDA, operating cash cost and total cash cost are not defined performance measures in IFRS. The Group’s definition of adjusted EBITDA may not be comparable with similar titled performance measures as disclosed by other entities.

Adjusted EBITDA

 

Six months

ended 30 June

2022

(unaudited)

US$000's

Six months

ended 30 June

2021

(unaudited)

US $000's

Profit before taxation

 

11,556

9,261

Adjusted for

 

 

 

Finance expense

 

1,734

1,676

Depreciation of tangible fixed assets

 

2,339

2,167

Foreign currency translation

 

954

278

Adjusted EBITDA

 

16,583

13,382

Operating cash cost

US$

US$

Cost of sales

 

15,137

9,037

Adjusted for

 

 

 

Depreciation of tangible fixed assets

 

(2,339)

(2,167)

 

 

12,798

6,870

Gold sold in the period per oz

 

17,542

12,560

Operating cash cost per oz

 

729

546

Total cash cost

Cost of sales

 

15,137

9,037

Adjusted for

 

 

 

Administrative expenses

 

2,714

2,757

Depreciation of tangible fixed assets

 

(2,339)

(2,167)

 

 

15,512

9,627

Gold sold in the period per oz

 

17,542

12,560

Total cash cost per oz

 

884

766

5. Intangible assets

 

Teren-Sai
geological data

Exploration and
evaluation costs

US$'000

 

 

 

 

Cost

 

 

 

1 January 2021

9,026

8,650

17,676

Additions

-

830

830

Amortisation capitalised

-

585

585

Currency translation adjustment

(225)

(240)

(465)

December 2021

8,801

9,825

18,626

Amortisation capitalised

-

276

276

Additions

-

190

190

Currency translation adjustment

(632)

(715)

(1,347)

30 June 2022

8,169

9,576

17,745

 

 

 

 

Accumulated amortisation

 

 

 

1 January 2021

4,662

165

4,827

Charge for the period

585

-

585

Currency translation adjustment

(125)

(7)

(132)

31 December 2021

5,122

158

5,280

Charge for the period

276

-

276

Currency translation adjustment

(375)

 

(12)

(387)

30 June 2022

5,023

146

5,169

 

 

 

 

 

Net books values

 

 

 

30 June 2022

3,146

9,430

12,576

31 December 2021

3,679

9,667

13,346

The intangible assets relate to the historic geological information pertaining to the Teren-Sai ore fields. The ore fields are located in close proximity to the current open pit and underground mining operations of Sekisovskoye.

The Company is in the final stages of the renewal of the licence, an updated and revised application was submitted to the relevant authorities in July 2022 for an extension to the exploration licence. The licence is for three years and will commence on the date the licence is signed, which is expected to be in Q4 2022. During the period of licence renewal, the company can continue its exploration activities.

6. Property, plant and equipment

 

Mining

 

Freehold

Plant,

Assets under

Total

 

properties

 

land

Equipment

construction

 

 

 

 

and

fixtures and

 

 

 

 

buildings

fittings

 

 

US$000

 

US$000

US$000

US$000

US$000

Cost

 

 

 

 

 

1 January 2021

13,264

24,050

21,102

1,973

60,389

Additions

3,356

197

2,800

2,187

8,540

Disposals

-

-

(659)

-

(659)

Transfers

-

1, 1,441

-

(1,441)

-

Transfer - inventories

-

-

-

170

170

Currency translation adjustment

(611)

(654)

(464)

(67)

(1,796)

31 December 2021

16,009

25,034

22,779

2,822

66,644

Additions

2,076

43

742

2,022

4,883

Disposals

-

-

(54)

-

(54)

Transfers

-

-

645

(6531)

-

Transfer to inventories

-

1,383

-

(500)

(500)

Currency translation adjustment

(1,697)

(1,797)

(1,689)

(342)

(5,525)

30 June 2022

16,388

23,280

22,423

3,357

65,448

 

Accumulated depreciation

 

 

 

 

 

1 January 2021

2,869

11,371

14,057

-

28,297

Charge for the period

699

2,188

1,599

-

4,486

Disposals

-

(2)

(659)

-

(661)

Currency translation adjustment

(218)

(238)

(372)

-

(828)

31 December 2021

3.350

13,319

14,625

-

31,294

Charge for the period

401

1,088

850

-

2,339

Currency translation adjustment

(254)

(985)

(1,076)

-

(2,315)

30 June 2022

3,497

13,422

14,399

-

31,318

 

Carrying amount

 

 

 

 

 

30 June 2022

12,891

9,858

8,024

3,357

34,130

31 December 2021

12,659

11,715

8,154

2,822

35,350

 

7. Trade and other receivables

Non-current

 

 

30 June

2022

(unaudited)

US$000's

31 December

2021

(audited)

US $000's

VAT recoverable

 

1,277

1,375

Prepayments- advances to suppliers

 

9,071

2,550

 

 

10,348

3,925

The amount recoverable in relation to Value Added Tax is expected to be recovered by offset against VAT payable in future periods.

The advances to suppliers relate to mining services for capital development of the mine at Sekisovskoye.

Current

 

 

30 June

2022

(unaudited)

US$000's

31 December

2021

(audited)

US $000's

Trade receivables

 

902

-

VAT recoverable

 

5,428

5,054

Prepayments - advances to suppliers

 

11,322

14,500

Prepayments - other

 

3,929

-

Other receivables

 

96

2,917

Other receivables/prepayments – provision

 

(141)

(941)

 

 

21,536

21,530

The prepayment of advances to suppliers relates to payments for mining services for the extraction of ore.

8. Notes to the cash flow statement

 

 

Six months

ended 30 June

2022

(unaudited)

US$000's

Six months

ended 30 June

2021

(unaudited)

US $000's

Profit before taxation

 

11,556

9,261

Adjusted for

 

 

 

Finance expense

 

1,734

1,676

Depreciation of tangible fixed assets

 

2,339

2,167

Increase in inventories

 

(1,809)

(2,689)

Increase in trade receivables

 

(1,310)

(7,641)

Increase/(decrease) in trade and other payables

 

158

(1,233)

Foreign currency translation

 

954

278

Cash inflow from operations

 

13,622

1,819

Income taxes

 

-

-

 

 

13,622

1,819

9. Related party transactions

Remuneration of key management personnel

The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 - “Related Party Disclosures”. The total amount remaining unpaid with respect to remuneration of key management personnel amounted to US$114,000 (31 December 2021 US$122,000).

 

 

Six months

ended 30

June 2022

Six months

Ended 30

June 2021

 

 

US$000

US$000

Short term employee benefits

 

138

66

Social security costs

 

9

2

 

 

147

68

During the period, the following transactions were connected with Company’s in which the Assaubayev family have a controlling interest:

  • An amount is owing to Asia Mining Group of US$77,816, (31 December 2021: US$83,850) and is included within trade payables.
  • Loan amounts due by the Group to Amrita Investments Limited a company controlled by the Assaubayev family total US$12,000 (31 December 2021 US$12,000).
  • The group made sales to Altyn Group Qazaqstan of US$122,000 the amount is included with in receivables at the period end.

10 . Borrowings

 

 

Six months

ended 30 June

2022

(unaudited)

US$000's

Year ended

31 December

2021

(audited)

US $000's

 

 

 

 

Current loans and borrowings

 

 

 

Bonds

 

9,891

9,723

Bank loans

 

5,354

5,298

Related party loans

 

12

12

Other borrowings

 

-

54

 

 

15,257

15,087

Due one-two years

 

 

 

Bonds

 

-

-

Bank loans

 

3,049

3,546

 

 

3,049

3,546

Due two-five years

 

 

 

Bank loans

 

6,434

8,675

 

 

6,434

8,675

Total non-current loans and borrowings

 

9,483

12,221

Bond Listed on Astana International Exchange

The total number of bonds at the period end amounted to US$10m at a coupon rate of 9%, the bonds are repayable in December 2022. At the period end the carrying value approximates to their fair value.

Bank loans

The bank loans are repayable in instalments and bear interest at 6%-7% on the US$ denominated loans and at 15.5% on the Kazakh denominated loans.

The bank loans are secured over the assets of the Group.

11. Reserves

A description and purpose of reserves is given below:

Reserve

Description and purpose

 

Share capital

 

Amount of the contributions made by shareholders in return for the issue of shares.

Share premium

Amount subscribed for share capital in excess of nominal value.

Merger Reserve

Reserve created on application of merger accounting under a previous GAAP.

Currency translation reserve

Gains/losses arising on re-translating the net assets of overseas operations into US Dollars.

Accumulated losses

Cumulative net gains and losses recognised in the consolidated statement of financial position.

12. Events after the balance sheet date

In July 2022 the Company agreed in principal a US$40m loan from Bank Center Credit in Kazakhstan, the loan facility is expected to be signed and details agreed during Q4 2022.

An extension for the licence at Teren-Sai has been applied for in July 2022 to continue exploration works for a further three years.

ALTYNGOLD PLC

Company information

Directors

Kanat Assaubayev

Chairman

Aidar Assaubayev

Chief executive officer

Sanzhar Assaubayev

Executive director

Ashar Qureshi

Non-executive director

Andrew Terry

Non-executive director

Maryam Buribayeva

Non-executive director

Victor Shkolnik

Non-executive director

Secretary

Rajinder Basra

 

Registered office and number

Company number: 05048549

 

28 Eccleston Square

London

SW1V 1NZ

Telephone: +44 208 932 2455

Company website

www.altyngold.uk

 

Kazakhstan office

10 Novostroyevskaya

 

Sekisovskoye Village

Kazakhstan

Telephone: +7 (0) 72331 27927

Fax: +7 (0) 72331 27933

Auditor

BDO LLP,

 

55 Baker Street,

London W1U 7EU

Registrars

Neville Registrars

 

Neville House

Steelpark Road

Halesowen

West Midlands B62 8HD

Telephone: +44 (0) 121 585 1131

Bankers

NatWest Bank plc

 

London City Commercial Business Centre

7th Floor, 280 Bishopsgate

London

EC2M 4RB

 

LTG Bank AG

Herrengasse 12

FL-9490, Vaduz

Principal of Liechtenstein

 

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