03:00 Tue 25 Jun 2019
Amur Minerals Corp - AUDITED FINAL RESULTS FOR THE YEAR
AMUR MINERALS CORPORATION
("Amur" or the "Company")
AUDITED FINAL RESULTS FOR THE YEAR ENDED
The 2017 field season resulted in an impressive 50% expansion of the Kun-Manie resource base to just over 1.5 million tonnes of nickel equivalent averaging 1.02% resulting in its being ranked among the five largest undeveloped nickel sulphide projects in the world. Although this establishes Kun-Manie as a large scale deposit by global standards we felt that there some important and valuable objectives still to be explored and proven for the 2018 field season. Primarily, that the Ikenskoe ("IKEN") and Kubuk ("KUB") deposits form one continuous open pit mineable deposit.
2018 Operational Developments
Substantial Field Season and Resource Expansion
The updated Mineral Resource statement released in
The 2018 field season was an even bigger undertaking than the year before and was targeted at converting a large block of inferred resource to indicated and very importantly determining if the Ikenskoe and Kubuk deposits are connected and the resultant linking of the two deposit was suited to allowing for a single open pit operation. Whilst we awaited final independent verification of the 2018 drill results, we reported that as much as 30 million tonnes of inferred resource has been converted to indicated and that an additional 25 million tonnes for new resource has been defined linking the Ikenskoe and Kubuk deposits. All drilling was implemented to allow for its categorisation as indicated, therefore making it suitable for inclusion in the Mining Ore Reserves. The successfully linking of the two deposits will potentially form one large 4-kilometre-long pit.
Also, as part of the 2018 drill program, a large scale metallurgical samples from Ikenskoe, Kubuk and the area between these two deposits was collected to be added to similar samples from Maly Kurumkon / Flangovy and Vodorazdelny. This bulk sample now totalling approximately 15 tonnes will be used in a number of studies to determine final processing design and the potential to produce a separate copper only concentrate stream.
We feel strongly that the newly identified mineralisation provides the potential to substantially enhance the
Financial Overview
As at
In
In
In 2018 the Company spent
In the Consolidated Statement of Comprehensive Income an exchange loss on the translation of foreign operations of
Outlook
The work that we are undertaking in 2019 is orientated towards preparing and positioning the Company for the next stage of its development - strategic investment and project financing. To date this has involved management, with support from the Group's financial advisor
With those relationships in place, and new ones being developed, we will in 2019 be able to undertake focused activities that will support the Company's aim of attracting the right sort of strategic investment and partnering. It is important that the Company is in as strong a position as it can attain for this next stage of development as success here will begin to unlock the considerable value held within the Kun-Manie project. The Board and management believe that the Company is well positioned given the size and location of Kun-Manie to capitalise on the growth in the nickel market. We have been seeing clear indicators that recent increased interest in nickel is now turning towards interest in the future sourcing of nickel supply.
The PFS is a report on the current state of Kun-Manie's development and it presents a robust picture of a large nickel/copper sulphide project ready to advance toward and through development and the value chain. However, the PFS is a living document and we will be updating the Mineable Ore Reserves to include the 2018 field season results which in turn will result in an updated mine plan and project economics. Detailed metallurgical work will also be undertaken to firstly determine if a separate copper stream can be produced and if so what the economic impact that would have as this could materially increase the revenue potential of the copper. Secondly, the detailed flow sheet or ore processing plant design will also be finalised. Both of these studies will utilise the 15 tonne bulk sample acquired across all deposits. Running concurrently with the metallurgical test work various studies such as detailed logistics, road design and environmental/social impact will also be undertaken.
This work will ultimately turn the PFS into a Bankable Feasibility Study ("BFS") and will just as importantly be used to produce the Permanent Conditions TEO, the Russian version of a BFS. So although we do not foresee the need for any further drilling this next stage of undertakings will provide the necessary information to obtain Russian authorisation to commence construction and implementation of a full-scale operation.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries:
Company |
Nomad and Broker
|
Public Relations Blytheweigh |
Robin Young CEO |
Ewan Leggat Lindsay Mair
|
Megan Ray Tim Blythe |
+7 (4212) 755 615 |
+44 (0) 20 3470 0470 |
+44 (0) 20 7138 3203 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
|
2018 |
2017 |
|
|
|
|
US$'000 |
US$'000 |
|
|
|
Non-current assets |
|
|
Exploration and evaluation assets |
23,010 |
22,376 |
Property, plant and equipment |
1,668 |
2,884 |
|
24,678 |
25,260 |
|
|
|
Current assets |
|
|
Inventories |
257 |
769 |
Other receivables |
191 |
741 |
Cash and cash equivalents |
1,257 |
2,555 |
|
1,705 |
4,065 |
|
|
|
Total assets |
26,383 |
29,325 |
|
|
|
Current liabilities |
|
|
Trade and other payables |
802 |
768 |
Convertible loan notes |
1,663 |
- |
Derivative financial liabilities |
153 |
- |
|
2,618 |
768 |
|
|
|
Net current assets |
(913) |
3,297 |
|
|
|
Non-current liabilities |
|
|
Rehabilitation provision |
146 |
176 |
|
|
|
Total liabilities |
2,764 |
944 |
|
|
|
Net Assets |
23,619 |
28,381 |
|
|
|
|
|
|
Equity |
|
|
Share capital |
65,674 |
62,879 |
Share premium |
4,904 |
4,904 |
Foreign currency translation reserve |
(15,476) |
(11,227) |
Share options reserve |
2,034 |
3,366 |
Retained deficit |
(33,517) |
(31,541) |
Total equity |
23,619 |
28,381 |
|
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED
|
2018 |
2017 |
|
US$'000 |
US$'000 |
|
|
|
Administrative expenses |
(2,153) |
(1,924) |
|
|
|
Operating loss |
(2,153) |
(1,924) |
|
|
|
Finance income |
1 |
3 |
Finance costs |
(1,223) |
- |
Fair value movements on derivative financial |
|
|
instruments |
67 |
767 |
|
|
|
Loss before taxation |
(3,308) |
(1,154) |
|
|
|
Tax expense |
- |
- |
|
|
|
Loss for the year attributable to owners of the parent |
(3,308) |
(1,154) |
|
|
|
|
|
|
Loss per share (expressed in cents) |
|
|
Basic and diluted |
(0.51) |
(0.20) |
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED
|
2018 |
2017 |
|
US$'000 |
US$'000 |
|
|
|
Loss for the year |
(3,308) |
(1,154) |
|
|
|
Other comprehensive income items that may be reclassified to profit or loss |
|
|
Exchange differences on translation of foreign operations |
(4,249) |
1,200 |
|
|
|
Total other comprehensive income for the year |
(4,249) |
1,200 |
|
|
|
Total comprehensive income for the year attributable to owners of the parent |
(7,557) |
46 |
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED
|
2018 |
2017 |
||
|
US$'000 |
US$'000 |
US$'000 |
US$'000 |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Payments to suppliers and employees |
|
(2,586) |
|
(2,703) |
|
|
|
|
|
Net cash outflow from operating activities |
|
(2,586) |
|
(2,703) |
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
Payments for exploration expenditure |
(2,003) |
|
(3,234) |
|
Payments for property, plant and equipment |
(48) |
|
(470) |
|
Interest received |
1 |
|
3 |
|
|
|
|
|
|
Net cash used in investing activities |
|
(2,050) |
|
(3,701) |
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
Cash received on issue of shares |
- |
|
570 |
|
Issue of convertible loans, net of issue costs |
3,454 |
|
- |
|
|
|
|
|
|
Net cash generated from financing activities |
|
3,454 |
|
570 |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(1,182) |
|
(5,834) |
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
2,555 |
|
8,199 |
Exchange gains/(losses) on cash and cash equivalents |
|
(116) |
|
190 |
Cash and cash equivalents at end of year |
|
1,257 |
|
2,555 |
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
|
Share capital |
Share premium |
Foreign currency translation reserve |
Share options reserve |
Retained deficit |
Total equity |
|
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
|
|
|
|
|
|
|
Balance at |
60,293 |
4,904 |
(12,427) |
3,575 |
(30,596) |
25,749 |
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
(1,154) |
(1,154) |
Other comprehensive income: |
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
1,200 |
- |
- |
1,200 |
Total Comprehensive income for the year |
- |
- |
1,200 |
- |
(1,154) |
46 |
|
|
|
|
|
|
|
Issue of share capital |
2,528 |
- |
- |
- |
- |
2,528 |
Options expired |
- |
- |
- |
(209) |
209 |
- |
Exercise of options |
58 |
- |
- |
- |
- |
58 |
Balance at |
62,879 |
4,904 |
(11,227) |
3,366 |
(31,541) |
28,381 |
|
|
|
|
|
|
|
|
Share capital |
Share premium |
Foreign currency translation reserve |
Share options reserve |
Retained deficit |
Total equity |
|
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
|
|
|
|
|
|
|
Balance at |
62,879 |
4,904 |
(11,227) |
3,366 |
(31,541) |
28,381 |
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
(3,308) |
(3,308) |
Other comprehensive income: |
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
(4,249) |
- |
- |
(4,249) |
Total Comprehensive income for the year |
- |
- |
(4,429) |
- |
(3,308) |
(7,557) |
|
|
|
|
|
|
|
Issue of share capital |
39 |
- |
- |
- |
- |
39 |
Conversion of loan notes |
2,756 |
- |
- |
- |
- |
2,756 |
Options expired |
- |
- |
- |
(1,332) |
1,332 |
- |
Balance at |
65,674 |
4,904 |
(15,476) |
2,034 |
(33,517) |
23,619 |
|
|
|
|
|
|
|
1. Basis of prePARATION
a) General Information
The Company and its subsidiaries ("Group") locates, evaluates, acquires, explores and develops mineral properties and projects in the Russian Far East.
The Company is the 100% owner of
The Group's principal place of business is in the
The Group's principal asset is the Kun-Manie production licence, which was issued in
b) Basis of Preparation
These financial statements have been prepared under the historical cost convention, except for the valuation of derivative financial instruments, on the basis of a going concern and in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the
The financial statements are presented in thousands of United States Dollars.
The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods.
c) Going concern
The Group operates as a natural resources exploration and development group. To date, it has not earned significant revenues and is considered to be in the final stages of exploration and evaluation activities of its Kun-Manie project.
The Directors have reviewed the Group's cash flow forecast for the period to
The Directors are currently in negotiations with a number of parties in respect of raising further funds. Whilst progress is being made on a number of potential transactions which would provide additional funding to the Group, there are no binding agreements in place.
These conditions indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern. Based on the current progress of the negotiations with potential investors and providers of finance the Directors believe that the necessary funds to provide adequate financing to continue with the current work program on its Kun-Manie project will be raised as required and accordingly they are confident that the Group will continue as a going concern and have prepared the financial statements on that basis.
The financial statements do not include the adjustments that would result if the Group was not able to continue as a going concern.
c) Loss per share
Basic and diluted loss per share are calculated and set out below. The effects of warrants and share options outstanding at the year ends are anti-dilutive and the total of 12.4 million (2017: 30.7 million) of potential ordinary shares have therefore been excluded from the following calculations:
|
2018 |
2017 |
Number of shares |
|
|
Weighted average number of ordinary shares used in the calculation of basic earnings per share |
656,558,298 |
613,250,727 |
|
|
|
|
|
|
|
2018 |
2017 |
Earnings |
US$'000 |
US$'000 |
Net loss for the year from continued operations attributable to equity shareholders |
(3,308) |
(1,154) |
|
|
|
Loss per share for continuing operations (expressed in cents) |
|
|
Basic and diluted earnings per share |
(0.51) |
(0.20) |
d) Events after the reporting date
On
On
On
On
Annual Accounts
Copies of the Group's Annual Accounts will be posted to the Amur shareholders today and are available for download from the Company's website at www.amurminerals.com.
Notes to Editors
The information on exploration results and Mineral Resources contained in this announcement has been reviewed and approved by the CEO of Amur, Robin Young. Mr. Young is a Geological Engineer (cum laude) and is a Qualified Professional Geologist, as defined by the Toronto and Vancouver Stock Exchanges and a Qualified Person for the purposes of the AIM Rules for Companies.
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (
A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.
An 'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.
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