TIDMAMC
RNS Number : 2662L
Amur Minerals Corporation
30 September 2016
30 September 2016
AMUR MINERALS CORPORATION
(AIM: AMC)
Interim Results 2016
Chairman's Statement
Dear Shareholder,
I am pleased to have this opportunity to report on Amur Minerals
Corporation's ("the Company") progress over the first six months of
2016 as well as post H1 2016 developments which we consider to be
important for inclusion to provide a fuller update on our
accomplishments for the year to date. Activities on our Kun-Manie
nickel copper sulphide project located in the Russian Far East have
been focused on the preparation of a Definitive Feasibility Study
("DFS") and the implementation of the most ambitious field season
ever undertaken at Kun-Manie.
Major milestones have already been attained this year and
include the following:
-- Completion of a preliminary survey of the access road route;
-- Bench scale metallurgical test work has been completed on the four main orebodies;
-- A resource update has been completed which confirms the
presence of high grade continuous mineralised structures within 3
of the 4 main deposits;
-- A combination of both open pit and underground production is
being considered in the production development studies;
-- Over 19,000 metres of drilling have been completed within the
Maly Kurumkon / Flangovy ("MKF") deposit so far;
-- The MKF deposit has been expanded to a total length of 3,000
metres, all of which has been drilled to a JORC category of
Indicated resource suitable for use in the determination of
reserves. At the start of this year the Indicated resource was
limited to a total length of 1,400 metres;
-- A 7.5 tonne bulk metallurgical sample has been collected and
delivered to our Khabarovsk core storage facility;
-- MKF resource expansion remains to the east of the last drill
line. This target is projected to be in the order of 400 metres and
will be drilled in the future. Beyond this target, the Gorny
mineralised area is present which could be an extension of the MKF
deposit; and
-- The first of two phases of field data collection for the
determination of the source of industrial and potable water supply
has been completed.
The Company has made significant steps in the period under
review and the newly acquired information will provide valuable
input to the DFS, which will be the prime source of documentation
upon which project financing shall be obtained. This cornerstone
document provides the necessary support of the Company's ability to
fund the project from western-based financial institutions. Hence,
all work that has been completed to date and in the future will
continue to be focused on activities key to the successful
completion of the DFS.
Above all, this year's highly successful drill programme has
been extremely productive and is likely to have provided a
substantial resource increase with regard to the identification of
reserves within the MKF deposit. The potential expansion of the
Indicated resource represents a major accomplishment, with regard
to the DFS. Typically, financial institutions require seven to
eight years of reserve to ensure payback of a construction loan.
For Kun-Manie, this equates to approximately 42 to 48 million
tonnes of ore reserve. Entering this field season, the Company had
open pit reserves defined to be in the order of 39.2 million tonnes
of Proven and Probable reserves. Of this, 21.5 million tonnes of
Probable reserves were identified at MKF, with the remaining 17.7
million tonnes being located at Vodorazdelny and Ikenskoe /
Sobolevsky. This year's expansion in the MKF Indicated resource
category should provide the Company with reserves allowing the
Company have a minimum of the aforementioned seven to eight years
of reserves.
The 2016 Site Activities
The design of the 2016 field programme covers multiple facets in
our planned development of the Kun-Manie project. These include
necessary work for inclusion within the DFS as well as completion
of work commitments related to the terms and conditions of our
mining licence. Based on an integrated work programme designed to
allow the Company to obtain its objectives and the targeted DFS
completion at end of Q4 2017, an aggressive work plan was
implemented for this year's site activities. This included the
following:
-- Capital equipment purchases enabling the Company to double
our drill capacity from that of 7,500 metres per year to 15,000
metres. This included earthmoving equipment allowing for the more
rapid construction of drill roads and drill sites as well as
personnel transport;
-- Resupply the Kun-Manie site with sufficient fuel to drill up
to 20,000 metres and the accompanying drill road and drill pad
construction, spare parts and consumables to support the 75-member
team on site;
-- Drilling was designed to convert Inferred resources to that
of Indicated for use in the determination of DFS level reserves.
This was to be targeted within the MKF deposit;
-- Any newly identified mineralisation identified by step out
drilling at MKF would be immediately drilled at a spacing allowing
for its classification as Indicated resource for use in the
definition of reserves;
-- Generate a large scale (5.0 tonne minimum) bulk sample for
process flow sheet design and ultimate processing plant design;
-- Completing a geophysical survey to identify the potential
source of water to support the processing of the ores and to
provide sources of potable water for supporting the staff component
of the operation once in production; and
-- Conduct a field survey of variously available access road
routes and identify the preferred route connecting the Baikal Amur
rail system ("BAM") to the project site.
Capital Equipment Purchases
With the plan to expand reserves to cover a seven to eight year
production period and to meet the DFS completion date of Q4 2017
the Board undertook the decision in late 2015 to double Amur's
drilling capacity with the purchase of a new LF90 drill rig to
supplement the existing LF70 rig. In addition, other new mobile
fleet equipment was purchased to both support the new rig and
replace existing aging equipment. An order was placed with
Caterpiller USA for two new D9R bulldozers and a 329D excavator,
and the following equipment was purchased locally:
-- A truck mounted 25 tonne crane;
-- A 10 tonne capacity fuel truck;
-- A 10 tonne dump truck;
-- A GAZ personnel carrier;
-- Two portable housing units for the drill teams; and
-- Two diesel generators
Ice Road and Restocking
Planning for the restocking of the Kun-Manie project site began
in October 2015. The increase in scale of the 2016 field season
required an increased number of field personnel, the identification
and purchase of large of quantities of fuel, spare parts and other
materials in preparation for transportation to the Kun-Manie
project site. These were marshalled at the Company's base station
on the BAM rail line.
Construction of the 350 kilometre ice road commenced in
mid-March and transportation of supplies from our base station was
completed in mid-April. The mild winter meant that the ice road was
available for a much shorter time than usual, but the experience
and initiative of Amur's Khabarovsk staff meant the team was able
to accelerate the transportation program, and in all 500 tonnes of
materials and supplies, plus the new capital equipment, were
delivered to site in a series of seven convoys.
The Khabarovsk team has executed an incredible undertaking,
successfully restocking the project site. An upsized 2016 field
season was an essential pre-requisite for completion of the DFS at
the end of 2017.
MKF Reserve Definition Drill Programme
In February 2016, a 15,000 metre drill programme for the MKF
deposit was defined with drill start up planned for early June 2016
and completion in late October 2016. The 2016 drill plan for MKF
was organised into three sectors identified as Area's A, B and C
with the drill programme advancing from west (Area A) to the east
(Area C) which allowed for efficient support of both drill rigs and
to minimise redundant activities such as shift changes of
personnel, preventive maintenance and refuelling requirements.
The drilling objectives by area and accomplishments to date
are:
-- Area A: infill drilling to convert a 300-metre-long block of
Inferred resource to Indicated was planned and successfully
completed. A limited number of step out holes were planned to
identify the western limits of the mineralisation thought to be
limited by the presence of a fault which had been interpreted to
truncate mineralisation. However, the step out drilling indicated
the fault was pre-mineralisation meaning that an additional 300
metres of mineralisation was present. This area was then drilled to
a spacing allowing it to be classified as Indicated resources.
Metallurgical holes to acquire bulk samples for metallurgical test
work were also drilled along the entire 600 to 700-metre-long Area
A.
-- Area B: acquire bulk samples for metallurgical test work
along the 1,400-metre-long resource block which was classified to
be Indicated resources. Additional drilling was also completed to
define deeper limits of mineralisation which could be mined using
underground methods.
-- Area C: infill drilling to convert a 400-metre-long Inferred
resource to Indicated and a step out programme to identify
additional mineralisation to the east. Drilling has confirmed the
continuity of the mineralisation in the 400-metre-long Inferred
block and the area is now considered to be Indicated by resource
category. Step out drilling confirmed that mineralisation continues
for another 500 metres to the east and this has also been drilled
at a spacing allowing for its likely classification as
Indicated.
The Company is presently in the final stage of drilling which is
planned for completion in early October 2016. Since the start of
drilling in May 2016, the following has been accomplished:
-- A total of more than 19,400 metres of drilling has been
completed through 24 September 2016 and the drill season is now
very near completion. A total of 80 holes have been completed of
which 59 were drilled to define resources. The remaining 21 holes
have allowed the Company to generate a large scale bulk
metallurgical sample approaching 7.5 tonnes for use flowsheet
determination and process plant design. The bulk metallurgical
sample has already been transported to our Khabarovsk core storage
facility for future metallurgical treatment;
-- Drilling at MKF has successfully converted the May 2016
Inferred resource in Area's A and C to that of Indicated allowing
for use in reserve definition;
-- Resources have also been expanded by 300 metres to the west
of Area A and by 500 metres to the east of Area C and has been
drilled at a spacing which will allow for the mineralisation to be
classified as Indicated allowing for its consideration in the
definition of reserves. An additional 400 metre resource expansion
area remains to be drilled at the eastern limits of MKF. Beyond
this area is the Gorny deposit which may be a continuation of the
MKF deposit;
-- The continuous mineralised length of MFK deposit has been
increased to nearly 3,000 metres. All drilled MKF mineralisation is
now drilled at a spacing used to determine Indicated resource.
Previously, the total length of the Indicated resource was defined
to be approximately 1,400 metres in length;
-- Using an open pit cutoff grade of 0.20% nickel, the average
grade of this field season's drilling is 0.76% for nickel and 0.21%
for copper. The average mineralised thickness of discrete
mineralised zones is 13.5 metres with the average thickness
intersected per hole being 23.6 metres; and
-- Underground production potential using a 0.50% nickel cutoff
grade is estimated to contain 0.90% nickel and 0.25% copper.
Average thicknesses by interval and per hole are 10.5 metres and
19.7 metres, respectively. Based on the cutoff grade of 0.50%
nickel, the high grade mineralised structure is present along the
entire 3,000 metre long area of the MKF deposit and contains 85% of
the total drill defined nickel.
Maly Kurumkon / Flangovy 2016 Drill Location Map
http://www.rns-pdf.londonstockexchange.com/rns/2662L_1-2016-9-29.pdf
Additional Field Study Work
Field investigation work was completed on two areas, the
selection of the access road route and identification of industrial
and potable water supplies to support the operation. It is noted
that the field work has been completed and that reports are now
being compiled for submission to management and further
consideration. More specifically, the work included:
-- Completion of a field survey of three routes available to
access the project (averaging 320 kilometres) and selection of the
final route for further engineering and design work.
-- The first phase of a hydrological study has been completed
and is under review. This will allow the Company to establish the
source of water for industrial use to process the ores of Kun-Manie
and to also establish sources for potable water to support the
planned operation.
JORC Resource Estimate
During April and May this year, SRK Consulting (UK) Ltd ("SRK")
completed their independent resource estimate updates on the MKF,
Ikenskoe / Sobolevksy and Kubuk deposits. Based on a zero cutoff
grade including internal waste, dilution and sub-economic
mineralisation, the updated resource is presently reported as
follows:
Global JORC Resource Estimate (May 2016)
Resource Tonnage Ni Ni Cu Cu Pt Pt Pd Pd
Class
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Mt % t % t g/t kg g/t kg
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Maly Kurumkon / Flangovy
---------------------------------------------------------------------------------------------
Measured - - - - - - - - -
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Indicated 68.4 0.42 285,200 0.12 84,200 0.10 6,600 0.10 6,900
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Sub-total 68.4 0.42 285,200 0.12 84,200 0.10 6,600 0.10 6,900
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Inferred 22.2 0.37 81,400 0.12 25,70 0.09 1,900 0.09 2,000
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total 90.6 0.40 366,600 0.12 109,900 0.09 8,500 0.10 8,900
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Ikenskoe / Sobolevsky
---------------------------------------------------------------------------------------------
Measured 17.5 0.50 88,600 0.14 24,200 0.18 3,200 0.20 3,500
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Indicated 11.8 0.39 46,000 0.10 11,400 0.14 1,700 0.17 2,000
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Sub-total 29.4 0.46 134,600 0.12 35,600 0.16 4,900 0.19 5,500
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Inferred 5.9 0.78 46,100 0.19 11,400 0.17 1,100 0.21 1,200
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total 35.2 0.51 180,700 0.13 47,000 0.17 5,900 0.19 6,700
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Kubuk
---------------------------------------------------------------------------------------------
Measured - - - - - - - - -
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Indicated 3.7 0.76 28,500 0.17 7,300 0.17 700 0.18 700
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Sub-total 3.7 0.76 28,500 0.17 7,300 0.17 700 0.18 700
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Inferred 22.0 0.47 104,500 0.15 32,100 0.14 3,100 0.12 2,700
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total 25.7 0.52 133,000 0.15 39,400 0.15 3,800 0.13 3,400
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Vodorazdelny
---------------------------------------------------------------------------------------------
Measured 0.8 0.57 4,700 0.17 1,400 0.25 200 0.25 200
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Indicated 4.8 0.66 31,200 0.17 8,200 0.13 600 0.13 600
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Sub-total 5.6 0.64 35,900 0.17 9,600 0.14 800 0.14 800
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Inferred - - - - - - - - -
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total 5.6 0.64 35,900 0.17 9,600 0.14 800 0.14 800
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Gorny
---------------------------------------------------------------------------------------------
Measured - - - - - - - - -
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Indicated - - - - - - - - -
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Sub-total - - - - - - - - -
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Inferred 7.6 0.31 23,900 0.09 7,000 0.21 1,600 0.25 1,900
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total 7.6 0.31 23,900 0.09 7,000 0.21 1,600 0.25 1,900
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total Resource
---------------------------------------------------------------------------------------------
Total Measured 18.3 0.51 93,300 0.14 25,600 0.19 3,400 0.20 3,700
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total Indicated 88.7 0.44 390,900 0.12 111,100 0.11 9,600 0.11 10,200
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Sub-total 107.0 0.45 484,100 0.13 136,600 0.12 13,000 0.13 13,900
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Total Inferred 57.7 0.44 255,900 0.13 76,200 0.13 7,700 0.14 7,800
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
Grand Total 164.7 0.45 740,100 0.13 212,900 0.12 20,600 0.13 21,700
----------------- -------- ----- -------- ----- -------- ----- ------- ----- -------
The total resource estimate does not include results from the
2016 field season. The Board anticipates being able to provide an
updated JORC resource estimate in early 2017 once all assays have
been independently tested and the results incorporated into the
resource models and reviewed.
An analysis of the resource based on the application of
potential economic cutoff grades of 0.20% nickel and 0.50% nickel
provides a basis for evaluation of the open pit and underground
potential of the Kun-Manie resource inventory. At a 0.20% cutoff
grade, nearly 89% of the nickel (660,500 tonnes) and 87% (184,600
tonnes) of the copper resource is available to open pit production
consideration. At an assumed underground cutoff grade of 0.50%
nickel, the underground mineralisation potential includes 74%
(546,800 tonnes) of the drill identified nickel mineralisation and
56% (119,500 tonnes) of the identified copper mineralisation. The
average nickel grade ranges from 0.60% to .081% with copper ranging
from 0.17% to 0.18%.
Global Resource (Measured Plus Indicated Plus Inferred)
Cutoff Grade Analysis
Orebody Tonnage Ni Ni Cu Cu
------------------------
Mt % t % t
------------------------ -------- ----- -------- ----- --------
MalyKrumkon/Flangovy
--------------------------------------------------------------------
0.20%NickelCutoffGrade 50.8 0.63 320,040 0.18 91,440
------------------------ -------- ----- -------- ----- --------
0.50%NickelCutoffGrade 32.6 0.84 273,840 0.16 52,160
------------------------ -------- ----- -------- ----- --------
Ikenskoe/Sobolevsky
--------------------------------------------------------------------
0.20% Nickel Cutoff
Grade 29.5 0.58 171,100 0.15 44,250
------------------------ -------- ----- -------- ----- --------
0.50% Nickel Cutoff
Grade 17.1 0.82 140,220 0.19 32,490
------------------------ -------- ----- -------- ----- --------
Kubuk
--------------------------------------------------------------------
0.20% Nickel Cutoff
Grade 24.5 0.54 132,300 0.16 39,200
------------------------ -------- ----- -------- ----- --------
0.50% Nickel Cutoff
Grade 13.3 0.76 101,080 0.2 26,600
------------------------ -------- ----- -------- ----- --------
Vodorazdelny
--------------------------------------------------------------------
0.20% Nickel Cutoff
Grade 5.7 0.65 37,050 0.17 9,690
------------------------ -------- ----- -------- ----- --------
0.50% Nickel Cutoff
Grade 4.1 0.77 31,570 0.2 8,200
------------------------ -------- ----- -------- ----- --------
Total Resource
--------------------------------------------------------------------
0.20% Nickel Cutoff
Grade 110.5 0.60 660,490 0.17 184,580
------------------------ -------- ----- -------- ----- --------
0.50% Nickel Cutoff
Grade 67.1 0.81 546,710 0.18 119,450
------------------------ -------- ----- -------- ----- --------
Metallurgical Grade Recovery Curve Determination
Study work relevant to the DFS was initiated by SGS Minerals
("SGS") with regard to the determination of metallurgical recovery
curves for each of four deposits. Results have been obtained and
reported in a post 30 June 2016 RNS allowing the Company to
specifically determine the percentage of recovery of all metals at
various mill feed grades. This provides the Company with the
ability to determine specific cutoff grades for reserve
determination and the determination of the composition of the
concentrate with regard to total metal content and the slag forming
contents for design of a furnace intended to smelt the
concentrate.
The Definitive Feasibility Study
The function of the DFS is to evaluate, assess and establish the
detailed engineering for the Kun-Manie project, which ultimately
leads to the production decisions, financing requirements and the
overall economic potential of the project. It represents a
considerable undertaking in its own right and will require a lot of
management time in both planning and on-going management to ensure
we achieve the timely delivery of the various studies and
reports.
Of note, the DFS also includes the Russian required studies
called the Permanent Conditions TEO (Technical Economic
Explanation), which involves the compilation of detailed drawings,
construction permits and operational design parametres. Although
much of the DFS work is mutually supportive of the TEO, from a
planning and operating perspective we treat the TEO as a separate
stream of work in its own right as it does represent a separate
deliverable to the DFS and is just as important as this document is
required to obtain various mine production applications for
production.
Comprehensively, the Company has developed a plan for the DFS in
the following work streams:
-- Geology - exploration procedures such as mapping, geophysics,
sampling and drilling to be independently reviewed.
-- Resources - development of the 3D models of each deposit
showing geology, mineralisation characteristics and continuity to
JORC standards.
-- Mining and Reserves - the development of the JORC standard
Reserves Statement and the detailed final mining methods (surface
and underground).
-- Process Engineering - this includes test work on
representative samples for the development of the flow sheet
(processing of ores).
-- Concentrate Handling - this is a critical study that looks at
the four concentrate handling options available to the project of
Toll Smelting, Low Grade Matt, High Grade Matt and Refined Metal.
Presently, we anticipate that the Low Grade Matt option will be
implemented.
-- Infrastructure - as well as the road this stream pertains to
all operational sites, looking at power requirements and
generation, utilities, fuel storage / handling, site design and
facilities.
-- Marketing and Commodity Pricing - studies that define the
nature of the market looking at future product prices, potential
production rates, potential for substitution, potential
competitors, likely buyers and terms of sale.
-- Environmental and Social Management - studies that examine
the environmental controls required at the mine and furnace site,
and along the road connecting the two sites.
-- Economic Analysis - analysis using conventional techniques
including cashflow models and trade off studies using various
parameters for sensitivity analysis.
-- Permanent Conditions TEO.
The major focus for the first half of this year has been
preparing for the updated Reserve Statement and acquiring the bulk
metallurgical sample. These two functions represent the key
starting points for work streams in the DFS work and having these
completed means other studies can be initiated and utilise the most
accurate available information.
In May, a resource update was completed for four deposits likely
to produce ore grade mineralisation. The update included the
identification of two mineral grade domains (from 0.2% nickel to
0.5% nickel and in excess of 0.5% nickel) which will allow for the
Company to identify an optimised mining reserve and production
schedule. Production will be derived from a combination of open pit
and underground mining methods.
Metallurgical grade recovery curves have been independently
generated for each of the four deposits likely to provide ore for
processing. Based on bench scale test work, the composition of the
concentrate has also been established which will allow for
additional input into the design of a Company owned furnace capable
of generating a Low Grade Matte for sale into the international
market.
Financial Overview
The Company remained debt free throughout the period with cash
reserves of US$11.5 million as at 30 June 2016, up from US$9.6
million at the start of 2016.
In March 2016 and June 2016, the Company completed tranches 2
and 3 of the financing agreement entered into with Crede CG III Ltd
("Crede") in 14 December 2015 providing a further GBP5 million of
funding. This is in addition to the GBP2.5 million provided in
December 2015.
As part of the Crede financing agreement the Company issued 17m
warrants in December 2015 and a further 24.5 million warrants for
tranche 2 in March 2016 and 48 million warrants for tranche 3 in
June 2016. During the period all 17 million warrants of tranche 1
and 10m warrants of tranche 2 were exercised leaving 62.5 million
warrants still outstanding as at 30 June 2016. The fair valuation
of these remaining warrants as at 30 June 2016 is US$1.2 million
which is shown as a financial liability at fair value through the
profit and loss on the statement of financial position.
In total the Company has spent US$1.4 million of capital
equipment during the period (US$0.3 million for the same period in
2015) and US$1.3 million on exploration costs (US$1.0 million in
the same period in 2015).
Although the administration expenses for the period have more
than doubled compared to the same period last year, the difference
is mostly non-cash items. The Statement of Cash Flows shows that
the Company actually incurred lower administrative expenses
compared to last year which is due to the fact that Amur started
ordering for the current field season in late 2015, rather than the
start of the current year as would be usual.
Outlook
The Crede financing has put the Company in a strong financial
position and has allowed Amur to advance the DFS. Once the field
season has come to an end and all assay results have been
available, the Board shall finalise the Reserve Statement and the
mining plan for the DFS. The Company will commence the bulk
metallurgical test work allowing us to establish a final flow sheet
and plant design. Other aspects of the DFS study will be commenced
and the Board will keep the market abreast of these details
accordingly.
The Board would like to welcome Mr. Paul Gazzard who recently
joined Amur as a non-executive director. Paul brings a considerable
amount of experience in working with the capital markets in London
and internationally. The Company also recently signed a Letter of
Intent with IG Copper to determine if potential synergies in the
processing each Company's concentrates. Although Amur's DFS program
is only focused on Kun-Manie, assessing the potential for mutual
participation with other projects is an important part of longer
term strategic planning.
Once again, the Board would like to extend its thanks and
gratitude to the staff in Khaborvsk for a fantastic field season
which was planned and conducted with the utmost skill and
professionalism.
Mr. Robert W. Schafer
Non Executive Chairman
29 September 2016
Independent Review Report
To the shareholders of Amur Minerals Corporation
Introduction
We have been engaged by the Company to review the consolidated
financial information in the interim financial report for the six
months ended 30 June 2016, which comprises the consolidated
statement of financial position, the consolidated statement of
comprehensive income, the consolidated statement of cash flows, the
consolidated statement of changes in equity and the related
notes.
We have read the other information contained in the interim
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the financial information.
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 the Alternative
Investment Market which require for the interim 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 consolidated financial information 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 the Alternative Investment Market 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 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity",
issued by the Auditing Practices Board. 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 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 financial information in
the interim financial report for the six months ended 30 June 2016
are not prepared, in all material respects, in accordance with the
rules of the London Stock Exchange for companies trading securities
on the Alternative Investment Market.
BDO LLP
Chartered Accountants
London,
United Kingdom
29 September 2016
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 FINANCIAL POSITION
AS AT 30 June 2016
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
NON-CURRENT ASSETS
Capitalised exploration
costs 14,049 12,854 11,513
Property, plant and
equipment 3,108 455 649
Total non-current
assets 17,157 13,309 12,162
----------- ----------- -------------
CURRENT ASSETS
Other receivables 483 131 1,230
Inventories 874 512 512
Derivative financial
asset - 2,388 -
Cash and cash equivalents 11,495 8,326 9,613
----------- -------------
Total current assets 12,852 11,357 11,355
----------- ----------- -------------
Total assets 30,009 24,666 23,517
=========== =========== =============
CURRENT LIABILITIES
Trade and other payables 243 165 539
Derivative financial
liability 1,200 - 370
Total current liabilities 1,443 165 909
----------- ----------- -------------
NON-CURRENT LIABILITIES
Rehabilitation provision 159 - 139
159 - 139
----------- ----------- -------------
SHAREHOLDERS' EQUITY
Share capital 60,278 49,419 54,093
Share premium 4,904 6,473 5,648
Share options reserve 3,538 2,306 3,907
Retained deficit (27,087) (22,177) (25,869)
Foreign exchange
translation reserve (13,226) (11,520) (15,310)
Total shareholders'
equity 28,407 24,501 22,469
----------- ----------- -------------
Total liabilities
and shareholders'
equity 30,009 24,666 23,517
=========== =========== =============
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT of COMPREHENSIVE INCOME
FOR THE six monthsED 30 June 2016
(Amounts in thousands of US Dollars)
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
Administrative expenses (2,336) (1,074) (4,114)
Loss from operations (2,336) (1,074) (4,114)
Finance expense - - -
Finance income - 2,828 2,224
Fair value gain on derivative
financial assets - 1,232 1,184
Fair value gain on derivative
financial liability 88 - -
(Loss) / profit before
tax (2,248) 2,986 (706)
Taxation - - -
(Loss) / profit for the
period attributable to
owners of the parent (2,248) 2,986 (706)
=========== ========= ============
Other Comprehensive income:
Exchange differences
on translation of foreign
operations which could
subsequently be reclassified
to profit or loss 2,084 327 (3,463)
Total comprehensive (loss)/income
for the period attributable
to owners of the parent (164) 3,313 (4,169)
=========== ========= ============
(Loss) / earnings per US$ (0.004) US$ 0.007 US$ (0.002)
share: basic & diluted
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF cash flowS
FOR THE SIX MONTHSED 30 JUNE 2016
(Amounts in thousands of US Dollars)
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
30 June 2016 30 June 2015 2015
Cash flow from operating
activities:
Payments to suppliers
and employees (1,083) (1,440) (3,090)
Net cash used in operating
activities (1,083) (1,440) (3,090)
-------------- -------------- -------------
Cash flow from investing
activities:
Payment for property,
plant and equipment (1,427) (308) (610)
Payments for capitalised
exploration expenditure (1,320) (983) (2,141)
Net cash used in investing
activities (2,747) (1,291) (2,751)
-------------- -------------- -------------
Cash flow from financing
activities:
Proceeds from issue of
equity shares (net of
issue costs) 6,574 470 3,618
Cash received from derivative
financial asset - 9,053 10,789
Net cash from financing
activities 6,574 9,523 14,407
-------------- -------------- -------------
Net change in cash and
cash equivalents 2,744 6,792 8,566
Cash and cash equivalents
brought forward 9,613 1,389 1,389
Foreign exchange effects (862) 146 (342)
Cash and cash equivalents
carried forward 11,495 8,326 9,613
============== ============== =============
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED Statement of changes in equity
FOR THE SIX MONTHSED 30 JUNE 2016
(Amounts in thousands of US Dollars)
Foreign exchange
Share Share translation reserve
Share capital premium options reserve Retained deficit Total
------------- -------- ----------------- ------------------ --------------------- -------
At 1 January 2016 54,093 5,648 3,907 (25,869) (15,310) 22,469
Profit of the period - - - (2,248) - (2,465)
Other comprehensive
income for the period - - - - 2,084 2,084
Shares issued 6,185 - - - - 7,814
Equity settled share
based payments - - 661 - - 661
Expire of options - - (1,030) 1,030 - -
Costs associated with
issue of share
capital - (744) - - - (2,156)
At 30 June 2016
(unaudited) 60,278 4,904 3,538 (27,087) (13,226) 28,407
============= ======== ================= ================== ===================== =======
At 1 January 2015 48,949 6,473 2,306 (25,163) (11,847) 20,718
Profit of the period - - - 2,986 - 2,986
Other comprehensive
income for the period - - - - 327 327
Shares issued 470 - - - - 470
At 30 June 2015
(unaudited) 49,419 6,473 2,306 (22,177) (11,520) 24,501
============= ======== ================= ================== ===================== =======
At 1 January 2015 48,949 6,473 2,306 (25,163) (11,847) 20,718
Loss for the year - - - (706) - (706)
Other comprehensive
income for the year - - - - (3,463) (3,463)
Shares issued 4,887 - - - - 4,887
Equity settled share
based payments - - 1,691 - - 1,691
Exercise of options 257 - (90) - - 167
Costs associated with
issue of share
capital - (825) - - - (825)
At 31 December 2015
(audited) 54,093 5,648 3,907 (25,869) (15,310) 22,469
============= ======== ================= ================== ===================== =======
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
FOR THE SIX MONTHSED 30 JUNE 2016
(Amounts in thousands of US Dollars)
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 2016
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 2015 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 2016 was approved and authorised for
issue by the Board on 29 September 2016. 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 2016
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 2015 was
unqualified. The comparative information for the full year ended 31
December 2014 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 2016. The corresponding amounts are for the year ended
31 December 2015 and for the 6 month period ended 30 June 2015.
The Group financial information is presented in US Dollars
('US$') and values are rounded to the nearest thousand Dollars.
3. GOING CONCERN
The Group operates as a natural resources exploration and
development company. To date, the Group has not earned significant
revenues and is considered to be in the exploration stage. In May
2015 the 20 year 'Detailed Exploration and Production Licence' was
issued to the Company's wholly owned subsidiary, ZAO Kun-Manie. The
production licence expires on 1 July 2035.
The Directors have prepared a cash flow projection for the next
12 months which indicate that the Group is sufficiently funded by
its current cash resources to meet its ongoing obligations and
capital commitments. Accordingly the financial information has been
prepared on a going concern basis.
4. (LOSS) / EARNINGS PER SHARE
Basic and diluted profit or loss per share are calculated and
set out below.
Unaudited Unaudited
6 Months 6 Months Audited
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
------------ ------------ -------------
Net (loss)/profit
for the period (2,248) 2,986 (706)
Average number of
shares for the period 501,389,574 434,069,876 436,576,344
Basic and diluted
(loss)/earnings
per share US$ (0.004) US$ 0.007 US$ (0.002)
The effect of the warrants and share options outstanding at the
period end are anti-dilutive and the total of 92 million (December
2015 56.6 million) of potential ordinary shares have therefore been
excluded from the above calculations.
5. capitalised expenditures
During the six months ended 30 June 2016, the Group capitalised
exploration and development related expenditures of US$1,320,000
(1H 2015: US$983,000). The Group did not recognise any impairment
of capitalised expenditure during the period (1H 2015: nil).
6. related parties
Key management personnel and directors were paid a total
compensation of US$477,000 for the six months ended 30 June 2016
(1H 2015: US$378,000). No new options were granted to directors in
the six months ended 30 June 2016 (1H 2015: nil).
7. EVENTS AFTER THE BALANCE SHEET DATE
On 5 September 2016 the Company entered into a non-binding
Letter of Intent with IG Copper LLC to investigate the potential
synergies in processing the companies' respective sulphide
concentrates.
On 9 September 2016 at the Company's AGM, resolutions 4 and 5
required to give the Company authority to issue shares to meet the
requirements of the Crede CG III Ltd financing were not
carried.
On 19 September 2016 the Company appointed Mr Paul Gazzard as a
Non-Executive Director.
8. INTERIM REPORT
Copies of this interim report for the six months ended 30 June
2016 will be available from the Company's website
www.amurminerals.com.
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 PGUGGBUPQGMB
(END) Dow Jones Newswires
September 30, 2016 02:02 ET (06:02 GMT)
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Feb 2024 to Mar 2024
Amur Minerals (LSE:AMC)
Historical Stock Chart
From Mar 2023 to Mar 2024