TIDMAMC
RNS Number : 1701S
Amur Minerals Corporation
29 September 2017
29 September 2017
AMUR MINERALS CORPORATION
(AIM: AMC)
Interim Results 2017
Chairman's Statement
Dear Shareholder,
It is with pleasure that I take this opportunity to update
shareholders of Amur Minerals Corporation (the "Company") on the
Company's successful performance during the first six months of
2017.
We began the year with the appointment of Mr. Lou Naumovski to
the Board as a Non-Executive Director. His three decades of
experience working in Russia strengthens the Board as we continue
to develop into and through our pre-production phase of the
Kun-Manie nickel copper sulphide project located in the Far East of
Russia.
Timeline of Key Highlights:
-- In January, Mr Lou Naumovski joined the Board as a
Non-Executive director, and the Gipronickel Institute ("GI")
completed metallurgical test work on a half-tonne bulk sample for
our largest of four deposits, Maly Kurumkon / Flangovy.
-- In February, RPMGlobal Asia ("RPM") completed a comprehensive
resource update resulting in a resource of 101 million ore tonnes
with a nickel equivalent grade of 1.03% containing over one million
nickel equivalent tonnes.
-- In March and April the ice road resupply was undertaken
comprising 9 convoys delivering over 500 tonnes of fuel, supplies
and equipment.
-- Also in March, the 2017 field season plan comprising of a
15,000 drill metre program at the Ikenskoe / Sobolevsky and Kubuk
deposits was finalised, with an optional additional 5,000 metres
planned should time and weather permit.
-- The Company engaged Medea Capital Partners Ltd ("Medea") to
undertake a survey of global debt markets.
-- In May the drill season commenced nearly four weeks ahead of
schedule, and the Company initiated a review of operating cost
estimates by RPM.
-- During June, the first of the Company's 2017 drill results
were provided and a large high grade extension having an average
grade of 0.98% nickel had been identified at our Ikenskoe /
Sobolevsky deposit.
-- Post 30 June 2017, Medea presented their report of the global
debt markets and RPM their review of operating costs in July.
Mineral Resource Estimate Update
RPM issued a project wide JORC Mineral Resource Estimate ("MRE")
update in February. The newly derived MRE reported resource for
each of the four deposits fully located within our Detailed
Exploration and Production Licence. The new MRE also utilised a
higher nickel cutoff grade of 0.4%. In total, 101.3 million tonnes
of mineralisation is present and it averages 0.76% nickel and 0.20%
copper, by-product cobalt, platinum and palladium were also
estimated. The nickel equivalent grade at Kun-Manie is projected to
be 1.03% nickel. The RPM update included all drill results
completed through 2016 and expanded the total contained tonnes of
nickel by 38%. More than 80% of the mineral resource is classified
as Measured and Indicated which is suitable for use in the
determination of Mining Ore Reserves.
JORC Mineral Resource Estimates
Februay 2017
0.4% Nickel Cutoff Grade
Classification Mt Ni Cu Co Pt Pd Contained Metal
% % % g/t g/t
---------------- ------- ----- ----- ------ ----- ----- ---------------------------------------------
Ni Cu Co Pt Pd
t t t kg kg
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Maly Kurumkon / Flangovy (MKF)
------------------------------------------------------------------------------------------------------------
Measured
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Indicated 57.5 0.77 0.22 0.02 0.15 0.16 445,000 124,000 8,900 8,800 9,300
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
M+I 57.5 0.77 0.22 0.02 0.15 0.16 445,000 124,000 8,900 8,800 9,300
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Inferred 3.4 0.80 0.22 0.02 0.16 0.15 27,000 7,000 600 500 500
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
MKF TOTAL 60.9 0.78 0.22 0.02 0.15 0.16 473,000 131,000 9,400 9,300 9,800
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Ikenskoe / Sobolevsky (IKEN)
------------------------------------------------------------------------------------------------------------
Measured 10.1 0.66 0.18 0.011 0.21 0.25 67,000 18,000 1,100 2,100 2,500
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Indicated 6.3 0.61 0.14 0.011 0.20 0.25 39,000 9,000 700 1,200 1,600
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
M+I 16.4 0.65 0.17 0.01 0.20 0.25 106,000 27,000 1,800 3,300 4,100
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Inferred 4.7 0.84 0.20 0.02 0.19 0.23 40,000 9,000 800 900 1,100
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
IKEN
TOTAL 21.1 0.69 0.17 0.01 0.20 0.25 145,000 36,000 2,500 4,200 5,200
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Kubuk (KUB)
------------------------------------------------------------------------------------------------------------
Measured
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Indicated 3.6 0.87 0.21 0.02 0.18 0.19 31,000 8,000 600 600 700
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
M+I 3.6 0.87 0.23 0.02 0.17 0.20 31,000 8,000 600 600 700
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Inferred 10.9 0.74 0.20 0.02 0.16 0.14 81,000 22,000 1,700 1,700 1,500
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
KUB TOTAL 14.5 0.77 0.20 0.02 0.16 0.15 111,000 29,000 2,300 2,300 2,200
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Vodorazdelny (VOD)
------------------------------------------------------------------------------------------------------------
Measured 0.6 0.74 0.22 0.01 0.29 0.32 5,000 1,000 100 200 200
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Indicated 3.2 0.85 0.21 0.02 0.16 0.16 27,000 7,000 500 500 500
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
M+I 3.8 0.85 0.21 0.02 0.19 0.19 32,000 8,000 600 700 700
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Inferred 1.0 0.81 0.22 0.02 0.17 0.16 8,000 2,000 200 200 200
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
VOD TOTAL 4.8 0.83 0.21 0.02 0.18 0.18 40,000 10,000 800 900 900
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Global Resource
------------------------------------------------------------------------------------------------------------
Measured 10.7 0.67 0.18 0.01 0.21 0.25 72,000 19,000 1,200 2,300 2,700
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Indicated 70.5 0.77 0.21 0.02 0.16 0.17 542,000 148,000 10,700 11,100 12,100
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
M+I 81.2 0.76 0.21 0.01 0.17 0.18 614,000 167,000 11,900 13,400 14,800
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
Inferred 20.1 0.77 0.20 0.02 0.17 0.16 156,000 40,000 3,300 3,300 3,300
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
TOTAL 101.31 0.76 0.20 0.01 0.17 0.18 769,000 206,000 15,000 16,700 18,100
---------------- ------- ----- ----- ------ ----- ----- -------- -------- ------- ------- -------
In Situ Value ($US) and Nickel Equivalent Tonnage
1 February 2017 Metal Pricing
Pricing Nickel Copper Cobalt Platinum Palladium Total Ni
US$ Eq
Value Tonnes
----------- ----------
Imperial $4.54 $2.69 $16.90 $996.00 $760.00
/ lb / lb /lb / oz /oz
---------- ---------- -------- --------- ---------- ----------- ----------
Metric $10,006 $5,929 $37,248 $32,026 $24,437
/t / t / t / kg / kg
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Measured 720.44M 112.65M 44.70M 73.66M 65.98M 1,017.43M 101,680
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Indicated 5,423.34M 877.46M 398.55M 355.49M 295.69M 7,350.52M 734,600
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
M+I 6,143.78M 990.10M 443.25M 429.14M 361.67M 8,367.95M 836,280
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Inferred 1,560.96M 237.15M 122.92M 105.68M 80.64M 2,107.36M 210,606
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
TOTAL 7,694.74M 1,221.32M 558.71M 534.83M 442.32M 10,451.92M 1,044,549
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
% Value
Content 73.6% 11.7% 5.3% 5.1% 4.2% 100.0%
----------- ---------- ---------- -------- --------- ---------- ----------- ----------
Gipronickel Metallurgical Test Work
The GI test results derived from a 443 kilogram bulk sample
consisting of half core from three holes located in the Maly
Kurumkon / Flangovy ("MKF") deposit. GI confirmed that higher
metallurgical recoveries can be obtained by the implementation of a
two stage grinding process, which had not been previously
considered in detail. GI was able to determine that recoveries are
80.63% for nickel, 83.78% for copper, 61.4% for cobalt, 59.6% for
platinum, 82.3% for palladium, 63.7% for gold and 70.5% for
silver.
Additionally GI identified and improved mass pull which could
lead to potential savings in capital expenditure for the
construction of the concentrate treatment facility and a reduction
in the concentrate transport fleet.
Medea Global Survey
The Company engaged Medea in March 2017 to undertake a survey of
the global debt markets and potential strategic partners to
determine the potential availability of project financing for
construction of the Kun-Maine project. Medea's subsequent findings
reported to the Board in early July concluded that there is
available market capacity for investment by a strategic partner and
that Export Credit Agency ("ECA") covered debt financing could be
available for the development of the project. Medea also concluded
that the Company would be better positioned in the near term by
updating the Pre-feasibility Study ("PFS"), and therefore the
economics of the project, as part of its development of a road map
to full project funding.
Review of Operating Costs
An independent review of operating cost was completed by RPM in
July. The review encompassed open pit mining, underground mining,
on site processing, all other site related costs and transport of
concentrate to the Ulak rail. From these costs the Company was able
to derive an average projected operating cost of $1.78 per pound of
contained nickel in concentrate delivered to the Ulak rail station
located on the Baikal Amur ("BAM") rail line. This figure does not
include consideration of smelter terms or royalties.
Additionally, using these costs and $4.00 per pound nickel
price, our projected open pit and underground mining cutoff grades
range from 0.29% and 0.39% nickel, meaning nearly all of our
resource as reported in Feburary 2017 using a cutoff grade of 0.40%
is available in the determination of mining tonnages and grades.
The mining cutoff grade being less than the minimum grade to model
the resource provides a highly robust model for project
evaluation.
2017 Field Season
After a very successful 2016 field season at Maly Kurumkon /
Flangovy ("MKF") deposit, the Company focused on the undrilled
potential at and between the Ikenskoe ("IKEN") and Kubuk ("KUB")
deposits in 2017 as indicated in the map below.
http://www.rns-pdf.londonstockexchange.com/rns/1701S_1-2017-9-28.pdf
A 15,000 metre drill programme of resource conversion and
resource expansion at IKEN and KUB was planned but with sufficient
supplies to drill an additional 5,000 metres should time and
weather permit. Drilling was allocated to resource conversion
(Inferred to Indicated), resource expansion via step out drill from
the known limits of mineralisation at IKEN and KUB and the
acquisition of metallurgical sample.
Mild weather meant the Company was able to start the drilling
programme on 5 May 2017, well ahead of the planned 1 June 2017
start date. Of the two Company owned drill rigs, the LF70 was
assigned to the IKEN deposit and the LF90 to the KUB deposit. As
with the 2016 field season a high drill rate averaging 135 metres
per day meant the drill programme progressed ahead of schedule.
As of the time of writing, over 23,000 metres of drilling has
been completed, with approximately 18,500 metres completed along
2,400 metres of the 3 kilometre geochemical and geophysical anomaly
linking the IKEN and KUB deposits. All but 500 to 600 metres of
this target has been drilled as part of the IKEN / KUB step out
drilling programmes, and the drill results confirm that there is
indeed potential for the IKEN and KUB deposits to both be part of a
single 4.5 kilometre long deposit.
Globally, this year's drilling has nearly doubled the size of
both the IKEN and KUB deposits as reported in the MRE of February
2017 which contained approximately a quarter million tonnes of
nickel. Not only is the expansion of IKEN and KUB likely, an 800
metre long segment has been drilled and additional resource within
this area will further expand our MRE during the next update.
Infill drilling has also likely converted 10.9 million tonnes of
Inferred resource to that of Indicated making it available for use
in the determination of Mining Ore Reserves.
Financial Overview
The Company remained debt free throughout the period with cash
reserves of US$5.4 million as at 30 June 2017, down from US$8.2
million at the start of 2017. The Company continues to work closely
with its financial advisors developing the near and long-term
financing opportunities, and the Directors are confident that they
will be able to raise funds in the near future to progress the
planned exploration programme. Should there be any delay in raising
such funds the Directors consider that they would be able to manage
on-going expenditures through cutting exploration expenditure,
other discretionary costs and reducing key management salaries that
would allow the present cash resources to cover its financial
liabilities and commitments for the period up to 31 December
2018.
In January 2017 Jett Capital Advisors LLC exercised 1m warrants
at an exercise price of 4.68p providing a cash inflow for the
Company of US$57,000.
During the period Crede CG III Ltd converted 14.5 million
warrants of tranche 3 leaving 48 million warrants still outstanding
as at 30 June 2017. The fair valuation of these remaining warrants
as at 30 June 2017 is US$763,000 (31 December 2016: US$3 million)
which is shown as a financial liability at fair value through the
profit and loss on the statement of financial position. A
significant gain on fair value therefore of US$2.3 million has been
recognised in the profit and loss for the period ended 30 June
2017. The remaining 48 million warrants where converted on 18
September 2017, resulting in Crede having no outstanding warrants
as at that date completing the Crede agreement.
In total the Company has spent US$258,000 on capital equipment
during the period (US$1.4 million for the same period in 2016) and
US$1.7 million on exploration costs (US$1.3 million in the same
period in 2016).
Although the administration expenses for the period have
significantly reduced compared to the same period last year, the
difference is mostly non-cash items in 2016. The Statement of Cash
Flows shows that the Company actually incurred comparable
administrative expenses to last year.
Outlook
The Company will continue to be very busy throughout the
remainder of 2017, aiming to complete and extend the drilling
programme which will have a material impact on the economic
potential of Kun-Manie, and to complete an updated PFS. The hard
work and dedication of our staff has been instrumental in the
success of the project.
We will also continue to work closely with Medea as we develop
the near and long-term financing opportunities for the Company. We
are also working in conjunction with Medea and our PR
representative, Yellow Jersey on improving our knowledge of the
battery metals market and the nickel/copper end user market in
general.
Lastly, the Company extends its appreciation and thanks to
long-term shareholders that have supported the Company to this
point and into the future. There was a good turn-out at the General
Meeting in July with a very productive Q&A session which we
look forward to repeating in the near future.
Mr. Robert W. Schafer
Non Executive Chairman
28 September 2017
Independent Review Report
To the shareholders of Amur Minerals Corporation
Introduction
We have been engaged by the company to review the consolidated
interim financial information in the interim financial report for
the six months ended 30 June 2017 which comprises Consolidated
Statement of Financial Position, Consolidated Statement of
Comprehensive Income, Consolidated Statement of Cash Flows,
Consolidated Statement of Changes in Equity, and related notes.
We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the interim financial
report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Financial Reporting Council for use
in the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the consolidated interim financial
information in the interim report for the six months ended 30 June
2017 is not prepared, in all material respects, in accordance with
the rules of the London Stock Exchange for companies trading
securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
London,
United Kingdom
28 September 2018
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT of COMPREHENSIVE INCOME
FOR THE six monthsED 30 June 2017
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
30 June 30 June 31 December
Note 2017 2016 2016
Non-current assets
Exploration and evaluation
assets 5 19,896 14,049 17,167
Property, plant and
equipment 3,204 3,108 2,736
23,100 17,157 19,903
------------ ------------ -------------
Current assets
Inventories 830 874 756
Other receivables 231 483 768
Cash and cash equivalents 5,438 11,495 8,199
------------ -------------
6,499 12,852 9,723
------------ ------------ -------------
Total assets 29,599 30,009 29,626
------------ ------------ -------------
Current liabilities
Trade and other payables 645 243 416
Derivative financial
liability 7 763 1,200 3,295
1,408 1,443 3,711
------------ ------------ -------------
Net current assets 5,091 11,409 6,012
------------ ------------ -------------
Non-Current Liabilities
Rehabilitation provision 172 159 166
Total non-current
liabilities 172 159 166
------------ ------------ -------------
Net assets 28,019 28,407 25,749
============ ============ =============
Equity
Share capital 8 60,548 60,278 60,293
Share premium 4,904 4,904 4,904
Foreign currency
translation reserve (11,802) (13,226) (12,427)
Share options reserve 9 3,480 3,538 3,575
Accumulated deficit (29,111) (27,087) (30,596)
Total equity 28,019 28,407 25,749
============ ============ =============
Approved on behalf of the Board on 28 September 2017
Robin Young Brian C Savage
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT of COMPREHENSIVE INCOME
FOR THE six monthsED 30 June 2017
(Amounts in thousands of US Dollars)
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
Note 2017 2016 2016
Administrative expenses (946) (2,336) (3,768)
Operating loss (946) (2,336) (3,768)
Finance income 2 - 4
Fair value movements
on derivative financial
instruments 7 2,334 88 (2,007)
Profit / (loss) before
tax 1,390 (2,248) (5,771)
Income tax expense 6 - - -
Profit / (loss) for the
period / year attributable
to owners of the parent 1,390 (2,248) (5,771)
=========== =========== ============
Other Comprehensive income:
Items that could be reclassified
to profit or loss
Exchange differences
on translation of foreign
operations 625 2,084 2,883
Total comprehensive income
/ (loss) for the period
/ year attributable to
owners of the parent 2,015 (164) (2,888)
=========== =========== ============
Earnings / (loss) per 4 US$ 0.002 US$ (0.004) US$ (0.011)
share: basic & diluted
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF cash flowS
FOR THE SIX MONTHSED 30 JUNE 2017
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 2017 30 June 2016 2016
Cash flows used in operating
activities:
Payments to suppliers
and employees (835) (1,083) (2,210)
Net cash outflow from
operating activities (835) (1,083) (2,210)
-------------- -------------- -------------
Cash flow used in investing
activities:
Payments for exploration
expenditure (1,773) (1,320) (2,863)
Payment for property,
plant and equipment (258) (1,427) (1,670)
Interest received - 4
Net cash used in investing
activities (2,031) (2,747) (4,529)
-------------- -------------- -------------
Cash flow from financing
activities:
Proceeds from issue of
shares (net of issue costs) 57 6,574 6,589
Net cash generated from
financing activities 57 6,574 6,589
-------------- -------------- -------------
Net (decrease)/increase
in cash and cash equivalents (2,809) 2,744 (150)
Cash and cash equivalents
at beginning of period
/ year 8,199 9,613 9,613
Effect of foreign exchange
rates 48 (862) (1,264)
Cash and cash equivalents
at end of period / year 5,438 11,495 8,199
============== ============== =============
Foreign currency
Share translation reserve Share
Share capital premium options reserve Accumulated deficit Total
------------- -------- -------------------- ----------------- -------------------- -------
At 1 January 2017 60,293 4,904 (12,427) 3,575 (30,596) 25,749
Profit of the period - - - - 1,390 1,390
Other comprehensive
income for the
period - - 625 - - 625
------------- -------- -------------------- ----------------- -------------------- -------
Total comprehensive
income for the
period - - 625 - 1,390 2,015
Issue of share - - - - - -
capital
Exercise of warrants 255 - - (57) 57 255
Options expired - - - (38) 38 -
At 30 June 2017
(unaudited) 60,548 4,904 (11,802) 3,480 (29,111) 28,019
============= ======== ==================== ================= ==================== =======
At 1 January 2016 54,093 5,648 (15,310) 3,907 (25,869) 22,469
Profit of the period - - - - (2,248) (2,248)
Other comprehensive
income for the
period - - 2,084 - - 2,084
------------- -------- -------------------- ----------------- -------------------- -------
Total comprehensive
income for the
period - - 2,084 - (2,248) (164)
Issue of share
capital 6,185 - - - - 6,185
Equity settled share
based payments - - - 661 - 661
Options expired - - - (1,030) 1,030 -
Costs associated with
issue of share
capital - (744) - - - (744)
At 30 June 2016
(unaudited) 60,278 4,904 (13,226) 3,538 (27,087) 28,407
============= ======== ==================== ================= ==================== =======
At 1 January 2016 54,093 5,648 (15,310) 3,907 (25,869) 22,469
Loss for the year - - - - (5,771) (5,771)
Other comprehensive
income for the year - - 2,883 - - 2,883
------------- -------- -------------------- ----------------- -------------------- -------
Total comprehensive
income for the
period - - 2,883 - (5,771) (2,888)
Issue of share
capital 6,185 - - - - 6,185
Equity settled share
based payments - - - 712 - 712
Exercise of options 15 - - (14) 14 15
Options expired - - - (1,030) 1,030 -
Costs associated with
issue of share
capital - (744) - - - (744)
At 31 December 2016
(audited) 60,293 4,904 (12,427) 3,575 (30,596) 25,749
============= ======== ==================== ================= ==================== =======
1. Reporting Entity
Amur Minerals Corporation (the "Company") is a company domiciled
in the British Virgin Islands. The consolidated interim financial
information as at and for the six months ended 30 June 2017
comprise the Company and its subsidiaries (together referred to as
the "Group").
The consolidated financial statements of the Group as at and for
the year ended 31 December 2016 are available upon request from the
Company's registered office at Kingston Chambers, P.O. Box 173,
Road Town, Tortola, British Virgin Islands, from offices of RBC
Europe Limited, Riverbank House, 2 Swan Lane London EC4R 3BF or at
www.amurminerals.com.
2. BASIS OF PREPARATION
The financial information set out in this report is based on the
consolidated financial information of Amur Minerals Corporation and
its subsidiary companies. The financial information of the Group
for the 6 months ended 30 June 2017 was approved and authorised for
issue by the Board on 28 September 2017. The interim results have
not been audited, but were the subject to an independent review
carried out by the Company's auditors, BDO LLP. This financial
information has been prepared in accordance with the accounting
policies that are expected to be applied in the Report and Accounts
of Amur Minerals Corporation for the year ended 31 December 2017
and are consistent with the recognition and measurement
requirements of IFRS as adopted by the European Union. The
auditors' report on the group accounts to 31 December 2016 was
unqualified. The comparative information for the full year ended 31
December 2016 is not the Group's full annual accounts for that
period but has been derived from the annual financial statements
for that period.
The consolidated financial information incorporates the results
of Amur Minerals Corporation and its subsidiaries undertakings as
at 30 June 2017. The corresponding amounts are for the year ended
31 December 2016 and for the 6 month period ended 30 June 2016.
The Group financial information is presented in US Dollars
('US$') and values are rounded to the nearest thousand Dollars.
3. GOING CONCERN
The Group operates as a natural resources exploration and
development company. To date, the Group has not earned significant
revenues and is considered to be in the exploration stage. In May
2015 the 20 year 'Detailed Exploration and Production Licence' was
issued to the Company's wholly owned subsidiary, ZAO Kun-Manie. The
production licence expires on 1 July 2035.
The Directors continue to work closely with Medea and other
financial advisors to develop the near and long-term financing
opportunities for the Company to progress with the ongoing
development of its projects. The Directors are confident that they
will be able to raise funds in the near future to be able to
progress with their planned exploration programme. However should
such funds not be raised the Directors consider that they would be
able to reduce expenditure through cutting exploration expenditure,
other discretionary costs and reducing key management salaries that
would allow the present cash resources to cover its financial
liabilities and commitments for the period up to 31 December 2018.
As such, the financial information has been prepared on a going
concern basis.
4. EARNINGS / (LOSS) PER SHARE
Basic and diluted profit or loss per share are calculated and
set out below.
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
------------ ------------ -------------
Net profit/(loss)
for the period / year 1,390 (2,248) (5,771)
Average number of
shares for the period 601,452,853 501,389,574 547,940,724
Basic profit/(loss)
per share US$ 0.002 US$ (0.004) US$ (0.011)
Diluted profit/(loss)
per share US$ 0.002 US$ (0.004) US$ (0.011)
Basic weighted average
number of ordinary
shares 601,452,853 501,389,574 547,940,724
Dilutive effect 32,964,403 - -
of weighted average
share options
Diluted weighted
average number of
ordinary shares 634,417,256 501,389,574 547,940,724
As of 30 June there where 31,428,387 share options and
48,076,924 warrants in issue which could have a potential dilutive
effect on the base profit per share in the future.
5. capitalised expenditures
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016
At start of the
period / year 17,167 11,513 11,513
Additions 2,264 1,320 3,487
Foreign exchange
differences 465 1,216 2,167
At end of the
period / year 19,896 14,049 17,167
========== ========== =============
The Group did not recognise any impairment of capitalised
expenditure during the period (1H 2016: nil).
6. TaXATION
No tax charge has arisen in the period and no deferred tax asset
has been recognised for past taxable losses as the recoverability
of any such assets is uncertain in the foreseeable future.
7. Derivative financial LIABILITY
During the period the Company granted no new warrants (1H 2016:
72,586,729) to Crede CG III Limited as part of an equity
subscription agreement entered into on 14 December 2015.
Under the terms of the subscription agreement 3 warrants were
issued for every 4 subscription shares with a 5 year exercise
period. Each warrant gives the warrant holder the right to
subscribe to either:
-- One ordinary share, for each warrant, at a price per ordinary
share equal to subscription price; or
-- If the share price is below the subscription price, a number
of ordinary shares calculated by dividing the aggregate
Black-Scholes value of the warrants by the closing share price, at
a price of 1 pence.
The company has the right to call the warrants at any time the
share price is trading at a 25% premium to the subscription price
of the warrants.
The movement in warrants during the year has been as
follows:
Derivative Financial Liability
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
Number Number Number
At start of period
/ year 62,586,729 17,045,455 17,045,455
New issue - 72,586,729 72,586,729
Exercise of warrants (14,509,805) (27,045,455) (27,045,455)
At end of period
/ year 48,076,924 62,586,729 62,586,729
============= ============= =============
The movement in their fair values is shown in the table
below:
Derivative Financial Liability
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
At start of period
/ year 3,295 370 370
New warrants - 1,630 1,630
Exercise of warrants (198) (712) (712)
Fair value movement (2,334) (88) 2,007
At end of period
/ year 763 1,200 3,295
========== ========== =============
As the warrants are exchangeable into variable number of shares,
their fair values on the grant date and the reporting date were
determined using a Monte-Carlo simulation. For each iteration of
the simulation, the simulated share price was analysed to determine
the warrants value. The fair value was based on the following
assumptions:
Tranche
3
--------------------- --------
Share Price 6.29
--------------------- --------
Expected volatility 111.2%
--------------------- --------
Option life 2 years
--------------------- --------
Expected dividends 0
--------------------- --------
Risk free rate 0.31
--------------------- --------
8. share Capital
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
-------------- -------------- --------------
Number of Shares
(no par value):
Authorised 1,000,000,000 1,000,000,000 1,000,000,000
============== ============== ==============
Total issued 611,552,748 594,433,617 594,683,617
============== ============== ==============
On 12 January 2017, the Company issued 500,000 new Ordinary
Shares to Jett Capital Advisors LLC, following the exercise of
warrants at an exercise price of 4.68 pence per share.
On 30 January 2017, the Company issued 500,000 new Ordinary
Shares to Jett Capital Advisors LLC, following the exercise of
warrants at an exercise price of 4.68 pence per share.
On 28 April 2017, the Company, pursuant to the subscription
agreement entered into with Crede CG III Ltd on 14 December 2015,
converted all 14,509,805 warrants held by Crede using the
Black-Scholes valuation method applicable to the agreement, for
15,869,131 new Ordinary Shares.
All of these shares have been admitted to trading on the AIM
market of London Stock Exchange plc.
9. options
During the period ended 30 June 2017 233,000 options expired (1H
2016: 9,570,000) with a write back to the Options Reserve of
US$38,000 (1H 2016: US$1,030,000). During this period no new
options were granted to key management and personnel (1H 2016:
nil).
At 30 June 2017 the following options were outstanding at the
beginning and end of the period:
Outstanding at
1 January 2017 32,661,387
Granted -
Exercised (1,000,000)
Expired (233,000)
Outstanding at
30 June 2017 31,428,387
The fair value of the options is estimated at the grant date
using a Black-Scholes model, taking into account the terms and
conditions on which the options were granted. This uses inputs for
share price, exercise price, expected volatility, option life,
expected dividends and risk free rate.
The share price is the price at which the shares can be sold in
an arm's length transaction between knowledgeable, willing parties
and is based on the mid-market price on the grant date. The
expected volatility is based on the historic performance of Amur
Minerals shares on the Alternative Investment Market of the London
Stock Exchange. The option life represents the period over which
the options granted are expected to be outstanding and is equal to
the contractual life of the options. The risk-free interest rate
used is equal to the yield available on the principal portion of UK
government issued Gilt Strips with a life similar to the expected
term of the options at the date of measurement.
There are no market conditions associated with the share option
grants. There was no charge arising from outstanding options for
the period (H1 2016: US$444,000; December 2016 US$712,000), out of
which (H1 2016: US$123,000; December 2016:US$137,000) has been
capitalized within the E&E assets.
10. related parties
Key management personnel and directors were paid a total
compensation of US$551,000 for the six months ended 30 June 2017
(1H 2016: US$477,000). No new options were granted to directors in
the six months ended 30 June 2017 (1H 2016: nil).
11. EVENTS AFTER THE BALANCE SHEET DATE
On 18 September 2017 the Company issued 22,877,041 new ordinary
shares to Crede CG III Ltd following the exercise of their
remaining 48,076,924 warrants.
12. INTERIM REPORT
Copies of this interim report for the six months ended 30 June
2017 will be available from the Company's website
www.amurminerals.com.
http://amurminerals.com/content/wp-content/uploads/AMC-H1-2017-v3.mp3
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals S.P. Angel Yellow Jersey
Corp. Corporate Finance
LLP
Robin Young Ewan Leggat Dominic Barretto
CEO +44 (0) 20 +44 (0) 77
+7 4212 755 3470 0470 6853 7739
615
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFFAATITFID
(END) Dow Jones Newswires
September 29, 2017 02:01 ET (06:01 GMT)
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Apr 2023 to Apr 2024
