TIDMFML
RNS Number : 2486P
Frontier Mining Ltd
30 September 2013
FRONTIER MINING LTD
("Frontier" or "the Company")
Interims Results for the six months ended 30 June 2013
Frontier Mining (AIM:FML), the AIM listed exploration,
development and production Company focused on Kazakhstan, is
pleased to announce its Interim Results for the six months ended 30
June 2013.
Operational and Corporate Highlights
-- Commenced operations in April following harsh winter
-- Sberbank increased debt facility by $17.9 million and extended the term until October 2018
-- Shipment of copper cathodes began on schedule in the first week of June
o A total 390 tonnes of copper cathode were shipped during the
first 6 months of 2013
o 466 tonnes of Copper produced in the period
-- Adam Moroney hired as an independent degree-qualified
consultant with 20 years of SX/EW management and heap leach
research experience
-- Optimization of performance of the existing equipment and
work to find the optimal operational parameters taking place
-- Construction commenced on an additional four leach pads which
will be bring the total number of leach pads to six
-- Operational performance data:
o Average sales price of US$7,081 per tonne
o Average cash cost of production, excluding General and
Administrative, of US$3,625 per tonne
-- Copper cathode production from Benkala operations is expected
to be in the range between 1,700 and 2,100 tones by the end of
2013
-- Contracts secured for sulphuric acid delivery at a discount
of 75% to the pricing levels contracted in the previous 12
months
-- Additional agglomerator purchased to increase ore throughput
Post period end
-- After a series of tests and trials proposed by Adam Moroney,
leach pad stacking height at pad 3 increased from 2.5 meters to 6
meters
-- Further improvement of the optimum mix for robust agglomerate using different additives
-- Independent Expert Report (Wardell Armstrong) estimates
Baitemir-Beschoku Post Tax NPV of $52.7m taking a discount rate of
10%
-- Lenders to Frontier Mining continue to be supportive of the
business, while longer term financial arrangements are secured
Yerlan Aliyev, Chairman and Chief Executive of the Company
said:
"Since commencing production in 2013, both management and
operational team is working hard and carrying out trials and tests
to find the optimal working parameters at Benkala. We have an
understanding that the resource size, type of ore, available
utilities and infrastructure we put in place enable us to reach
required levels of production.
"Baitemir continues to offer significant potential that allows
the management to be confident about the future of the company. We
were highly encouraged by the findings of an Independent Expert
Report, which we commissioned during the first half and published
results from in mid July.
"Like any production company going through a commissioning
phase, we face challenges such as cash flow, often incredibly
hostile environmental conditions, geographical remoteness and
unproven equipment.
"The qualification of the team and support of our partners equip
us well to meet these challenges, and drive this company towards
becoming an established copper producer in the region, achieving
long lasting profitability."
For further details please contact:
Frontier Mining
Ltd Yerlan Minavar +44 (0) 20 7898 9019
Libertas Capital Sandy Jamieson
(NOMAD) Richard Morrison +44 (0) 20 3697 9495
RFC Ambrian (Broker) John Harrison +44 (0) 20 3440 6800
Walbrook PR Guy McDougall
(Media Enquiries) Lianne Cawthorne +44 (0) 20 7933 8780
Walbrook IR Paul Cornelius
(Investor Enquiries)
Chairman and Chief Executive's Statement
I am pleased to report the first half of 2013 delivered
significant operational and corporate progress.
Following a harsh winter customary for the region, we were able
to restart production in April and have been working hard on
finding optimal parameters for stable operations at Benkala. The
first shipments of copper began on schedule in the first week of
June and by 30 June we had shipped 390 tonnes of copper cathode.
Since commissioning in August of 2012, the Benkala SX-EW plant has
produced more than 1,000 tonnes of LME Grade A copper-cathode and
shipped and sold approximately 953 tonnes to date. During the
period under review, we undertook a series of enhancement and
expansion activities across Benkala, which included construction
work on an additional four leach pads, which will bring the total
number of leach pads up to six.
Similarly, post the period end in July, we announced the
purchase of an additional agglomerator. This agglomerator will
enable the Company to achieve higher quality agglomeration, while
increasing throughput, by introducing an additional agglomeration
step. At the same time, the expected assembly scheme will provide a
reserve line for agglomerate production and will ensure stable
operation of the crushing and agglomeration complex.
As stakeholders will have seen, we hired Adam Moroney, who is an
independent degree-qualified consultant with 20 years of SX/EW
management and heap leach research experience. He has reported his
findings from Benkala this month and overseen the above mentioned
enhancements at Benkala. As a result of cooperation of our
operational team with Mr. Moroney, we were able to incrementally
increase the current leach pad stacking height of 2.5 meters to 3.5
meters, and then on to 4.2 meters and 6 meters, which was recently
completed. The full details of Mr Moroney's assessment, recently
released to the market, can be found on the Company's website.
Further technological studies and exploration were undertaken at
Baitemir across the latter half of the six months, incorporating
drilling, trenching and geophysics, so that the Company could gain
further understanding of the resource. Based on historical data
provided by our geology team, Wardell Armstrong published non JORC
compliant report of review and preliminary valuation of Baitemir.
In their report, Wardell Armstrong also undertook an assessment of
the Beschoku and Yubileiny deposits to further determine their
potential as a satellite feeder for proposed facilities at
Baitemir, the results of which were published post period end.
Wardell Armstrong, estimate Baitemir-Beschoku has a Post Tax NPV
of $52.7m taking a discount rate of 10%
Corporate
In March, we announced we had increased our Sberbank debt
facility by $17.9 million and extended the term until October 2018.
Sberbank has provided Frontier with loan facilities since 2011. The
additional loan brings the total amount of existing Sberbank
facilities to US$52.9 million.
I would like to announce that in addition to our London quote,
we intend to apply for the Company's shares to be listed on the
Kazak Stock Exchange in order to satisfy the demands of the
regulatory requirements in Kazakhstan.
Outlook
We have a large resource, low acid-consuming ore,
readily-available and developed utilities and an actively
competitive pool of raw materials suppliers.
In terms of Baitemir, the project offers significant potential,
which allows us to look into future with confidence, and we will be
updating the public with new information as our studies and
exploration progress.
Like any production company going through a commissioning phase,
we face challenges such as cash flow, at times incredibly hostile
environmental conditions and unproven equipment.
Nevertheless, I remain confident the qualification of the team
and support of our partners equip us well to meet these challenges,
and drive this company towards becoming an established copper
producer in the region, achieving long lasting profitability.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2013 (unaudited)
US$'s
June 30, June 30, 2012
ASSETS 2013 2012
-------------------------------- -------------------- ------------------------- --------------------
Non-current assets
Exploration and evaluation
costs 9,658,223 8,307,723 9,353,054
Mine development assets 188,517,027 188,618,203 187,669,319
Property, plant and equipment 55,336,898 49,479,033 55,318,433
Intangible assets 66,165 77,614 76,280
Advances for long-term
assets 1,445,228 8,371,281 5,969,272
Long-term value added tax
receivable 5,563,116 3,754,173 5,488,048
Restricted cash 440,019 369,927 389,593
Total Non-current assets 261,026,676 258,977,954 264,263,999
-------------------------------- -------------------- ------------------------- --------------------
Current assets
Inventory 10,314,831 5,071,373 9,766,274
Trade receivables 1,047,650 247,337 183,759
Current portion of VAT
receivable 1,031,819 1,951,585 1,000,218
Prepaid expense 1,187,221 - 5,246,718
Other receivables 1,871,377 96,259 277,842
Cash and cash equivalents 1,423,116 2,552,123 2,184,083
Total Current assets 16,876,014 9,918,677 18,658,894
-------------------------------- -------------------- ------------------------- --------------------
TOTAL ASSETS 277,902,690 268,896,631 282,922,893
================================ ==================== ========================= ====================
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 18,609,140 18,609,140 18,609,140
Additional paid-in-capital 191,334,243 191,334,243 191,334,243
Option premium on convertible
notes 120,993 - 120,993
Accumulated deficit (64,692,206) (52,890,188) (60,042,983)
Total equity 145,372,170 157,053,195 150,021,393
-------------------------------- ------------------- ------------------------- -------------------
Non-current liabilities
Borrowings 58,969,768 47,567,788 47,581,084
Site restoration provision 2,639,841 1,340,545 2,665,162
Other financial liabilities 4,345,182 1,480,717 4,271,870
Due to US Trade and Development
Agency 340,000 340,000 340,000
Deferred tax liability 34,871,818 34,923,866 34,871,818
Total non-current liabilities 101,166,609 85,652,916 89,729,934
-------------------------------- ------------------- ------------------------- -------------------
Current liabilities
Trade accounts payable 737,573 11,615,254 10,041,126
Borrowings 24,277,787 13,439,644 26,370,065
Other financial liabilities 2,993,612 51,724 3,252,233
Other current liabilities 3,354,939 1,083,898 3,508,142
Total current liabilities 31,363,911 26,190,520 43,171,566
-------------------------------- ------------------- ------------------------- -------------------
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES 277,902,690 268,896,631 282,922,893
================================ =================== ========================= ===================
CONSOLIDATED STATEMENT OF INCOME
For the six month period ended June 30, 2012 (unaudited)
US$'s
June 30, June 30, 2012
2013 2012
------------------------------------ ------------------------- ------------------------- -------------------------
Revenue 2,761,662 - 5,372,018
Cost of sales (1,646,407) - (5,208,375)
Gross profit 1,115,255 - 163,643
------------------------------------ ------------------------- ------------------------- -------------------------
Selling, general and administrative
expenses (1,934,637) (2,020,629) (6,777,102)
Operating profit/ (loss) (819,382) (2,020,629) (6,613,459)
------------------------------------ ------------------------- ------------------------- -------------------------
Finance costs (3,865,561) (1,829,469) (5,112,819)
Gain from derivative financial
instrument - - 37,595
Foreign exchange loss,
net (356,379) (295,927) (37,313)
Impairment loss 421,484 - 418,386
Loss from sales of asset (1,588,003) - -
Income from sales of asset 1,569,300 - -
Other expenses, net (10,681) 21,572 (45,452)
Income from operations (4,649,222) (4,124,453) (11,353,062)
------------------------------------ ------------------------- ------------------------- -------------------------
Taxation - - 75,814
Net income from continuing
operations (4,649,222) (4,124,453) (11,277,248)
==================================== ========================= ========================= =========================
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six month period ended June 30, 2012
(unaudited)
US$'s
June 30, 2013 June 30, 2012 2012
OPERATING ACTIVITIES:
Loss for the year (4,649,222) (4,124,453) (11,353,062)
Adjustments for non cash
flow
items:
Income tax expense
recognised
in profit and loss - - -
Depreciation of property
and
equipment 2,567,603 778,169 4,773,120
Amortization of intangible
assets 4,728 - 15,588
Change in bad debt
provision - - 319,264
Loss/ (gain) from disposal
of intangible assets - - -
Reverese of provision VAT
recoverable - - (11,125)
Impairment loss - - -
Revaluation gain, net - - -
Loss from sale of asset (1,588,003) - (418,386)
Loss from financial
liability
at fair value - - (37,595)
Finance costs - 1,829,469 5,112,819
Foreign exchange loss (210,630) - 1,532,163
Effect of financial
instrument
recognition at FV - - -
Operating cash flows before
movement in working
capital (3,875,523) (1,516,815) (67,214)
---------------------------- ---------------------------- -----------------------------
Increase in value added tax
receivable (106,669) (1,803,016) (2,574,399)
Increase in inventory (548,557) (4,837,230) (9,532,131)
Decrease in trade accounts
receivable (863,891) (209,561) (145,983)
Increase in advances and
prepaid
expenses 4,059,497 - (5,246,718)
Increase in other
receivable (1,593,536) (54,422) (236,005)
Increase/(decrease) in
accounts
payable (9,303,553) 1,855,139 281,011
Increase/(decrease) in
other
current liabilities (153,203) (3,587,620) 1,675,261
Cash outflows from
operating
activities before tax and
interest
paid (12,385,435) (10,153,525) (15,846,177)
---------------------------- ---------------------------- -----------------------------
Payment of interest (2,533,023) 1,084,062 (4,410,974)
NET CASH USED FROM
OPERATING
ACTIVITIES (14,918,459) (9,069,463) (20,257,151)
---------------------------- ---------------------------- -----------------------------
INVESTING ACTIVITIES:
Increase in exploration and
evaluation costs (305,169) (634,838) (1,680,169)
Increase in mine
development
costs (847,708) (1,986,109) (1,865,233)
Purchase of property, plant
and equipment (2,988,849) (12,440,094) (17,376,454)
Purchase of intangible
assets 5,387 (65,274) (79,528)
Proceed from sale of
property,
plant and equipment 1,990,784 - 418,386
Increase in advances for
long-term
assets 4,524,044 1,449,372 3,532,117
Restricted cash deposit (50,426) (7,880) (27,546)
NET CASH USED IN INVESTING
ACTIVITIES 2,328,063 (13,684,823) (17,078,427)
---------------------------- ---------------------------- -----------------------------
FINANCING ACTIVITIES:
Receipt of loans from related
parties - 24,706,695 8,945,384
Receipt of loans from financial
instirutions (Sberbank) 11,388,684 1,600,000 25,043,954
Receipt from notes and other
loans 440,745 - 6,600,000
Repayment of loans to related
parties - (2,501,037) (2,570,427)
NET CASH FLOWS FROM FINANCING
ACTIVITIES 11,829,429 23,805,658 38,018,911
---------------------------- ---------------------------- -----------------------
Net increase/(decrease) in
cash and cash equivalents (760,967) 1,051,373 683,333
Cash and cash equivalents at
the beginning of year 2,184,083 1,500,750 1,500,750
Cash and cash equivalents at
the end of year 1,423,116 2,552,123 2,184,083
============================ ============================ =======================
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFEIAVIIVIV
Frontier Min (LSE:FML)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Frontier Min (LSE:FML)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024