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.
27 September 2024
Eurasia Mining plc
("Eurasia" or the "Company")
Interim Results for the six months ended 30 June 2024
Eurasia Mining Plc ("Eurasia" or the "Company"), 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 2024.
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
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Broker)
Jeff Keating / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah
+44 (0)207 932 0418
Chairman's Statement
Dear Shareholder,
As announced in the Annual Report, which was published earlier in this month of September, the first six months of 2024 reflected the maintenance of the Company's assets in good standing while continuing with our possible asset sale process.
At West Kytlim, low level work and maintenance required to comply with the regulations continued. The PGM concentrate inventory stockpile continues to be stored in a secure facility with some additional material generated from the required compliance. High grades of Osmium (c.2% Osmium metal content in the PGM concentrate) were discovered recently through several tests of 3 representative samples selected from over 6Koz of concentrate by internationally certified laboratory Anserteko. The discovery of high grades of Osmium leads to significant increase of the value of the existing PGM concentrate inventory, as well as the significant increase of the in-situ value of the reserves and resources of the West Kytlim mine and its revenue generation potential.
At Monchetundra, work in preparation for mine construction neared completion and the advancing of NKT tier-1 (according to Wardell Armstrong International, please refer to RNS dated 16 December 2021) brownfield asset continued.
Post period end, in September the Company entered into a trade finance facility to provide additional liquidity in addition to the stored metal concentrates. As described in the Company's announcement dated 6 September 2024, the facility will provide up to £2.5 million to the Company in tranches upon certain milestones being achieved, and is convertible by the lender at an average conversion price of 2.7 pence per share, being a premium to the current share price.
The Company continues to monitor the sanction regimes in the US, UK and EU to ensure ongoing compliance. The Company remains satisfied that its activities are not prohibited under the sanctions' rules.
Our strategy continues to focus primarily on the potential sale of the Company's assets in Russia, being the West Kytlim operating mine, the Monchetundra Project mining license, the NKT brownfield project and the entitlement to the Nyud brownfield project. The Company remains committed to this possible sale and, as ever, there can be no guarantee that Eurasia will enter into binding agreements regarding the sale process.
We are grateful to our shareholders for their continued support and I look forward to providing information regarding our forthcoming AGM.
Christian Schaffalitzky
Executive Chairman
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2024
| Note | 6 months to | 12 months to | 6 months to |
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | (unaudited) | (audited) | (unaudited) |
| | £ | £ | £ |
| | | | |
Sales | 4 | - | 2,069,262 | - |
Cost of sales | | - | (1,564,224) | - |
Gross profit |
| - | 505,038 | - |
| | | | |
Administrative costs | | (885,970) | (1,185,490) | (1,298,464) |
Investment income | | 2,958 | 55,159 | 53,184 |
Finance costs | | (49,145) | (83,101) | (44,789) |
Other gains | 5 | 1,230,703 | 391,983 | 272,549 |
Other losses | 5 | (870,249) | (6,364,529) | (6,361,898) |
| | | | |
(Loss)/profit before tax | | (571,703) | (6,680,940) | (7,379,418) |
| | | | |
Income tax expense | | - | (2,001) | - |
| | | | |
(Loss)/profit for the period |
| (571,703) | (6,682,941) | (7,379,418) |
| | | | |
Other comprehensive (loss)/income: |
| | | |
Items that will not be reclassified subsequently to |
| | | |
NCI share of foreign exchange differences on translation of foreign operations | | (134,419) | 530,146 | 682,020 |
Items that will be reclassified subsequently to |
| | | |
Parents share of foreign exchange differences on translation | | (264,735) | 1,352,061 | 1,738,236 |
| | | | |
Other comprehensive (loss)/income for the period, net of tax | (399,154) | 1,882,207 | 2,420,256 | |
| | | | |
Total comprehensive (loss)/income for the period | | (970,857) | (4,800,734) | (4,959,162) |
| | | | |
(Loss)/profit for the period attributable to: |
| | | |
Equity holders of the parent | | (553,519) | (5,486,899) | (5,638,150) |
Non-controlling interest | | (18,184) | (1,196,042) | (1,741,268) |
| | (571,703) | (6,682,941) | (7,379,418) |
| | | | |
Total comprehensive (loss)/income for the period attributable to: |
| | | |
Equity holders of the parent | | (818,254) | (4,134,838) | (3,899,914) |
Non-controlling interest | | (152,603) | (665,896) | (1,059,248) |
| | (970,857) | (4,800,734) | (4,959,162) |
| | | | |
Basic and diluted loss (pence per share) | | (0.02) | (0.21) | (0.20) |
Condensed consolidated statement of financial position
As at 30 June 2024
| Note | At 30 June 2024 | At 31 December 2023 | At 30 June 2023 |
| | (unaudited) | (audited) | (unaudited) |
| | £ | £ | £ |
ASSETS |
| | | |
Non-current assets |
| | | |
Property, plant and equipment | 6 | 9,473,508 | 10,210,983 | 8,470,553 |
Assets in the course of construction | | 518,150 | 336,131 | 538,537 |
Intangible assets | 7 | 3,436,107 | 3,148,382 | 2,748,361 |
Investment in financial assets | | - | - | 1,592,143 |
| |
|
|
|
Total non-current assets | | 13,427,765 | 13,695,496 | 13,349,594 |
| | | | |
Current assets |
| | | |
Inventories | | 4,127,939 | 2,305,108 | 3,687,482 |
Trade and other receivables | 8 | 1,271,268 | 1,736,589 | 2,684,475 |
Other financial assets | | 67,304 | 63,610 | 89,485 |
Current tax assets | | 4,661 | 5,806 | 5,967 |
Cash and bank balances | | 215,922 | 1,318,065 | 405,875 |
| | | | |
Total current assets | | 5,687,094 | 5,429,178 | 6,873,284 |
| | | | |
Total assets | | 19,114,859 | 19,124,674 | 20,222,878 |
| | | | |
EQUITY |
| | | |
Capital and reserves |
| | | |
Issued capital | 9 | 61,233,311 | 61,233,311 | 61,208,111 |
Reserves | 10 | 4,284,135 | 4,548,870 | 5,330,971 |
Accumulated losses | | (44,611,075) | (44,057,556) | (44,604,733) |
| | | | |
Equity attributable to equity holders of the parent |
| 20,906,371 | 21,724,625 | 21,934,349 |
Non-controlling interest | | (4,220,047) | (4,067,444) | (4,460,796) |
| | | | |
Total equity | | 16,686,324 | 17,657,181 | 17,473,553 |
| | | | |
LIABILITIES |
| | | |
Non-current liabilities |
| | | |
Lease liabilities | 12 | 6,142 | 24,966 | 147,592 |
Provisions | 14 | 389,325 | 397,747 | 173,645 |
| | | | |
Total non-current liabilities | | 395,467 | 422,713 | 321,237 |
| | | | |
Current liabilities |
| | | |
Borrowings | 11 | 50,713 | 44,014 | - |
Lease liabilities | 12 | 113,324 | 139,178 | 98,256 |
Trade and other payables | 13 | 1,843,351 | 861,498 | 2,265,361 |
Current tax liabilities | | - | 90 | - |
Provisions | 14 | 25,680 | - | 64,471 |
| | | | |
Total current liabilities | | 2,033,068 | 1,044,780 | 2,428,088 |
| |
|
|
|
Total liabilities | | 2,428,535 | 1,467,493 | 2,749,325 |
| |
|
|
|
Total equity and liabilities | | 19,114,859 | 19,124,674 | 20,222,878 |
Condensed statement of changes in equity
For the six months ended 30 June 2024 (unaudited)
| | Attributable to owners of the parent |
| | | |||||
| Note | Share | Share premium | Deferred shares | Other reserves | Foreign currency translation reserve | Accumulated losses | Total attributable to owners of parent | Non-controlling interest | Total equity |
| | £ | £ | £ | £ | £ | £ | £ | £ | £ |
| | | | | | | | | | |
Balance at 1 January 2024 |
| 2,864,560 | 51,343,268 | 7,025,483 | 3,539,906 | 1,008,964 | (44,057,556) | 21,724,625 | (4,067,444) | 17,657,181 |
| | | | | | | | | | |
Transaction with owners | | - | - | - | - | - | - | - | - | - |
| | | | | | | | | | |
Loss for the period | | - | - | - | - | - | (494,924) | (494,924) | (3,535) | (498,459) |
| | | | | | | | | | |
Other comprehensive loss |
| | | | | | | | | |
Exchange differences on translation | | - | - | - | - | (323,330) | - | (323,330) | (149,068) | (472,398) |
Total comprehensive income |
| - | - | - | - | (323,330) | (494,924) | (818,254) | (152,603) | (970,857) |
|
| 2,864,560 | 51,343,268 | 7,025,483 | 3,539,906 | 685,634 | (44,552,480) | 20,906,371 | (4,220,047) | 16,686,324 |
Condensed statement of changes in equity
For the six months ended 30 June 2023 (unaudited)
|
| | | | | | | | | |
| | Attributable to owners of the parent |
| | | |||||
| Note | Share | Share premium | Deferred shares | Other reserves | Foreign currency translation reserve | Accumulated losses | Total attributable to owners of parent | Non-controlling interest | Total equity |
| | £ | £ | £ | £ | £ | £ | £ | £ | £ |
| | | | | | | | | | |
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 | | - | - | - | - | 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) |
|
| 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 2024
| | 6 months to 30 June | 12 months to 31 December | 6 months to 30 June |
| | 2024 | 2023 | 2023 |
| | (unaudited) | (audited) | (unaudited) |
| | £ | £ | £ |
Cash flows from operating activities |
| | | |
| | | | |
Loss for the period | | (571,703) | (6,682,941) | (7,379,418) |
Adjustments for: | | | | |
Depreciation and amortisation of non-current assets | | 1,929,115 | 1,139,921 | 497,628 |
Finance costs recognised in profit or loss | | 49,145 | 83,101 | 47,548 |
Investment revenue recognised in profit or loss | | (2,958) | (55,159) | (53,184) |
(Gain)/loss on disposal of investments | | - | 53,408 | 18,362 |
Impairment loss/(reversal) recognised on inventory | | 870,249 | (391,983) | (272,549) |
Rehabilitation cost recognised in profit or loss | | (33,709) | 104,158 | (57,548) |
Income tax expense recognised in profit or loss | | - | 2,001 | - |
Net foreign exchange (profit)/loss | | (1,230,703) | 6,311,121 | 6,343,536 |
| | 1,009,436 | 563,627 | (855,625) |
Movements in working capital |
| | | |
(Increase)/decrease in inventories | | (2,582,503) | 1,372,033 | (75,390) |
Decrease/(increase) in trade and other receivables | | 526,726 | 840,011 | (71,805) |
Increase/(decrease) in trade and other payables | | 913,478 | (987,299) | 392,291 |
Cash (used in)/generated by operations | | (132,863) | 1,788,372 | (610,529) |
| | | | |
Income taxes paid | | 1,334 | (2,965) | - |
Net cash (used in)/generated by operating activities | | (131,529) | 1,785,407 | (610,529) |
| | | | |
Cash flows from investing activities |
| | | |
Proceeds from sale of investment securities | | - | 3,651,014 | 2,284,775 |
Interest received | | - | 382 | - |
loan provided to non-related party | | - | (61,620) | (143,071) |
Payments for property, plant and equipment | | (887,525) | (3,519,254) | (1,210,627) |
Payments for other intangible assets | | (135,366) | (912,820) | (475,540) |
Net cash (used in)/generated by investing activities | | (1,022,891) | (842,297) | 455,537 |
Cash flows from financing activities |
| | | |
Proceeds from issues of equity shares | | - | 46,200 | 21,000 |
Proceeds from borrowings | | - | 44,014 | - |
Repayment of lease liability | | (49,631) | (116,905) | (41,167) |
Interest paid | | (12,825) | (49,887) | (33,681) |
Net cash used in financing activities | | (62,456) | (76,578) | (53,848) |
| | | | |
Net (decrease)/increase in cash and cash equivalents | | (1,216,876) | 866,531 | (208,840) |
Effects of exchange rate changes on the balance of | | 114,733 | (558,374) | (395,193) |
| | | | |
Cash and cash equivalents at the beginning of period | | 1,318,065 | 1,009,908 | 1,009,908 |
| | | | |
Cash and cash equivalents at the end of the period |
| 215,922 | 1,318,065 | 405,875 |
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.
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 2023, prepared in accordance with UK-adopted International Accounting Standards, 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 UK-adopted 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 2024 have been prepared by applying the recognition and measurement provisions of the standards and the accounting policies adopted in the audited accounts for the year ended 31 December 2023.
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 (£), 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 2023.
4. Revenue
| | 6 months to | 12 months to | 6 months to |
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Sale of platinum and other metals | | - | 2,069,262 | - |
| | | | |
| | - | 2,069,262 | - |
5. Other gains and losses
| | 6 months to | 12 months to | 6 months to |
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Gains |
| | | |
Reversal of loss on revaluation of stock to net realisable value | | - | 391,983 | - |
Reversal of loss on revaluation of stock to net realisable value | | - | - | 272,549 |
Net foreign exchange gain | | 1,230,703 | - | - |
|
| 1,230,703 | 391,983 | 272,549 |
Losses |
| | | |
Impairment of investments | | - | - | (18,362) |
Loss on revaluation of stock to net realisable value | | (870,249) | - | - |
Loss on debt settlement | | - | (53,408) | - |
Net foreign exchange loss | | - | (6,311,121) | (6,343,536) |
|
| (870,249) | (6,364,529) | (6,361,898) |
| | | | |
| | 360,454 | (5,972,546) | (6,089,349) |
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.
Loss on revaluation of stock available at 30 June 2024 represents platinum concentrate ready for sale or refining, which was valued (i) using methodology set in the refining and sale and purchase agreement made with local refinery and (ii) exchange rate and metal prices at 30 June 2024.
6. Property, plant and equipment
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Net book value at the beginning of period | | 10,210,983 | 9,600,231 | 9,600,231 |
Additions | | 719,325 | 2,738,440 | 1,137,353 |
Transferred from assets under construction | | 2,305 | 991,394 | 90,499 |
Depreciation | | (1,929,115) | (1,139,921) | (497,628) |
Exchange differences | | 470,010 | (1,979,161) | (1,859,902) |
| | | | |
Net book value at the end of period | | 9,473,508 | 10,210,983 | 8,470,553 |
7. Intangible assets
| | 30June | 31December | 30June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Net book value at the beginning of period | | 3,148,382 | 2,859,368 | 2,859,368 |
Additions | | 135,366 | 912,820 | 475,540 |
Exchange differences | | 152,359 | (623,806) | (586,547) |
| | | | |
Net book value at the end of period | | 3,436,107 | 3,148,382 | 2,748,361 |
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 |
| | 2024 | 2023 | 2023 |
| | | | |
Trade receivables | | - | 760,374 | - |
Advances made | | 17,271 | - | 677,536 |
Prepayments | | 24,730 | 126,330 | 26,929 |
VAT recoverable | | 521,875 | 343,425 | 1,496,281 |
Mining tax refund due | | 408,462 | 404,195 | - |
Other receivables | | 298,930 | 102,265 | 483,729 |
| |
|
|
|
| | 1,271,268 | 1,736,589 | 2,684,475 |
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 |
| | 2024 | 2023 | 2023 |
| | | | |
Issued ordinary shares with a nominal value of 0.1p: |
| | | |
Number | | 2,864,559,995 | 2,864,559,995 | 2,858,559,995 |
Nominal value (£) | | 2,864,560 | 2,864,560 | 2,858,560 |
| | | | |
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 (£) | | 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;
- 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 shares | Share | Share |
| | | £ | £ |
Balance at 1 January 2024 | | 2,864,559,995 | 2,864,560 | 51,343,268 |
|
|
|
|
|
Balance at 30 June 2024 |
| 2,864,559,995 | 2,864,560 | 51,343,268 |
| | |
|
|
Deferred shares |
| Number of deferred shares | Deferred share | |
| | | £ | |
Balance at 1 January and 30 June 2021 |
| 143,377,203 | 7,025,483 | |
10. Reserves
| | 30June | 31December | 30June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Capital redemption reserve | | 3,539,906 | 3,539,906 | 3,539,906 |
Foreign currency translation reserve | | 744,229 | 1,008,964 | 1,395,139 |
Equity-based payment reserve | | - | - | 395,926 |
| | | | |
| | 4,284,135 | 4,548,870 | 5,330,971 |
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. Borrowings
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Current |
| | | |
Unsecured loan | | 50,713 | 44,014 | - |
|
| | | |
| | 50,713 | 44,014 | - |
In December 2023, the Group entered into unsecured loan facility to borrow RUB 5 million (GBP 44,014 at the rate exchange rate as at 31 December 2023) at 20% per annum: Russian central bank rate of 16% at the date of the borrowing (19% at the date of this report) plus 4% margin at the date of the borrowing (1% at the date of this report). The loan is repayable by 31 December 2024. No borrowing costs were capitalised in 2023 and 2024.
12. Lease liabilities
The Group has the following leases in place:
i) Leases of mining 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 obligations under finance leases are fixed at respective contract dates ranging from 21.9% to 23.5% per annum. For comparison Russian central bank rate is 19% at the date of this report.
ii) Rent of offices and other properties. The average lease term is three years expiring in 2025. There is no option to purchase properties at the end of rental period.
Interest rates underlying obligations under finance leases are fixed at respective contract dates at 10.27% per annum.
Minimum lease payments |
| 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Less than one year | | 118,706 | 157,445 | 179,418 |
Between one and five years | | 6,320 | 25,987 | 103,334 |
More than five years | | - | - | - |
| | 125,026 | 183,432 | 282,753 |
Less future finance charges | | (5,560) | (19,288) | (36,905) |
Present value of minimum lease payments | | 119,466 | 164,144 | 245,848 |
| | | | |
Present value of minimum lease payments |
| 30June | 31December | 30June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Less than one year | | 113,324 | 139,178 | 147,592 |
Between one and five years | | 6,142 | 24,966 | 98,256 |
More than five years | | - | - | - |
Present value of minimum lease payments | | 119,466 | 164,144 | 245,848 |
13. Trade and other payables
| | 30June | 31December | 30June |
| | 2024 | 2023 | 2023 |
| | | | |
Trade payables | | 1,111,521 | 552,599 | 802,525 |
Accruals | | 239,346 | 170,316 | 1,326,107 |
Social security and other taxes | | 226,368 | 33,832 | 45,523 |
Other payables | | 266,116 | 104,751 | 91,206 |
| |
|
|
|
| | 1,843,351 | 861,498 | 2,265,361 |
The fair value of trade and other payables is not materially different to the carrying values presented. The above listed payables were all unsecured.
14. Provision
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
Long term provision: | | | | |
Environment rehabilitation | | 389,325 | 397,747 | 173,645 |
Short term provision: | | | | |
Environment rehabilitation | | 25,680 | - | 64,471 |
| | | | |
| | 415,005 | 397,747 | 238,116 |
| | | | |
Movement in provision |
| Six month to | 12 month to | Six month to |
| | 30 June | 31 December | 30 June |
| | 2024 | 2023 | 2023 |
| | £ | £ | £ |
At 1 January | | 397,747 | 342,696 | 342,696 |
Utilised in the period | | - | 104,158 | - |
Reduction resulting from re-measurement or settlement without cost | | (33,709) | - | (57,548) |
Unwinding of discount and effect of changes in the discount rate | | 31,988 | 33,214 | 13,867 |
Exchange difference | | 18,979 | (82,321) | (60,899) |
|
|
|
|
|
At the end of the period |
| 415,005 | 397,747 | 238,116 |
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 14.66% to 16.67% (2023: 12.01% to 12.61%) 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 2024 will be incurred within 2025-2040.
15. Commitments
During 2020 the Group entered into several lease agreements to lease mining plant and equipment. As at 30 June 2024 the average lease term was one year.
During 2023 the Group entered into several rent agreements to rent office and other properties. As at 30 June 2024 the average rental term was 1.5 year.
Present value of minimum lease payments £119,466 (30 June 2023: £245,848).
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