TIDMTSG
RNS Number : 4592M
Trans-Siberian Gold PLC
25 May 2010
Trans-Siberian Gold plc
Final results for the year ended 31 December 2009
Highlights
· Asacha expected to be in production in 1st quarter 2011
· $25 million finance facility obtained for Asacha
· $1.6 million raised in equity placing, $5.2 million debt
converted to equity
Chairman's Statement
Trans-Siberian Gold plc ("TSG" or "the Company") entered 2009 amid the
destructive consequences of the slowdown of the Russian economy and the global
financial crisis. In these circumstances activity at the Asacha project in the
first three quarters of 2009 was somewhat limited due to funding constraints.
The Asacha investment programme was modified to focus resources on maintaining
certain minimum economically/technically required activities in order to avoid
damage to the site and to fulfil payment obligations.
In May 2009 UFG Asset Management (UFG), TSG's largest shareholder, agreed to
provide the Company with bridging finance of up to $3 million, sufficient to
support minimum construction activities. A short-term commissioning plan was
modified to focus on major critical works in mine development, construction of
the plant and tailings storage facility.
After intensive negotiations with several Russian banks regarding the provision
of project finance to bring Asacha into production, a three-year $25 million
loan facility was agreed with one of the banks with the first drawdown in
October 2009. During the fourth quarter negotiations continued with the leading
Russian bank, Sberbank, which had indicated more favourable terms regarding the
period of the facility, interest rate and overall cost, with a potential
interest saving, net of arrangement fees, of approximately $1 million. On 30
December 2009 the initial facility was refinanced with Sberbank as a five year
facility.
Drawdown of the new loan facility allowed the restoration of pre-crisis activity
levels at Asacha and provided the Company with the possibility to increase the
pace of development. In 2009 mine development and preparation works, by-product
extraction works and exploration works amounted to more than 1,006 metres and
more than 10,650 m3 of mining. Ore mined in 2009 totalled 5,445 tonnes, with a
total ore stockpile (including the adit ore and the ore mined in previous
periods) of approximately 42,000 tonnes at the end of December 2009. In the
first four months of 2010 a further 517 metres of, and more than 5,400 m3, of
mine development has been completed, with an ore stockpile of more than 48,000
tonnes at the end of April 2010.
Underground activities included necessary wooden support installation, steel
arching, and shotcreting. Electric cables were laid and pumping equipment and
piping to deliver compressed air and water were installed. An underground
emergency alarm system and high voltage mining equipment were also installed and
two underground transformer substations were assembled.
The concrete foundations for the plant building (concrete plate and column
foundations) were finished in October 2009 and work started on the equipment
foundations concreting. In November 2009 assembly of the metal framework of the
plant building commenced at a rapid pace, work continuing with two shifts
employed. Earth works at the tailings storage facility site commenced in July
2009 and continued through the winter season, in spite of severe climatic
conditions. Soil removal at the fuel storage facility site started in June 2009
and continued on the foundations for the mechanical repair shops and terracing
of the fuel storage facility site.
The significant increase in the gold price since the onset of the global
financial crisis is a very positive factor for TSG. Gold's unique role as a safe
haven has been proved once again and the immense deficits with the attendant
threats of global inflation should provide the gold price with substantial
support.
As activity in the Russian economy has picked up, inflationary pressures have
returned in the Kamchatka region, with substantial cost increases in the
construction sector, particularly materials and fuel. The higher oil price is
one of the factors behind a strengthening of the Russian rouble, affecting both
projected capital and operating costs. Transportation costs are also
significantly higher. These factors, coupled with the increased investment in
equipment necessary in order to ensure that construction is completed at Asacha
before the end of 2010 with plant commissioning and first gold production in the
first quarter of 2011, have unfortunately led to a substantial increase in
Asacha's projected pre-start up cost.
TSG is therefore seeking to raise an additional $12 million by the end of the
third quarter of 2010 to ensure that the Group has adequate funds to bring
Asacha into production in the first quarter of 2011. The intention is to secure
further bank funding, possibly coupled with a small equity raising, and, while
not underestimating what needs to be done, the Company has every reason to be
encouraged by the relationship which has developed with Sberbank and by
preliminary discussions with UFG.
Financial review
The Company is in the exploration and development phase of its gold projects in
Russia. It therefore received no operating income from those projects during
2009.
The Group recorded a loss from continuing operations for the year of $5.3
million (2008: $7.9 million), including $2.2 million exchange losses (2008: $3.6
million). Administration expenses amounted to $1.2 million in UK and $1.9
million in Russia (2008: $1.0 million and $3.3 million respectively), in
aggregate $3.1 million (2008: $4.3 million).
Finance income was $104,000 (2008: $440,000). Finance costs were $187,000 (2008
$118,000). In 2008 the Group early adopted IAS23 (Revised) Borrowing Costs,
which requires borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets to be capitalised. As a result
of this change of accounting policy, there was a reduction of $177,000 (2008:
$280,000) in finance costs charged in the Consolidated Statement of
Comprehensive Income.
Total non-current assets increased from $75.9 million to $83.3 million.
Property, plant and equipment increased by $10 million to $60.4 million,
principally reflecting additional $1 million vehicles and $10.3 million assets
under construction at Asacha. Capitalised exploration and evaluation expenditure
increased from $17.1 million to $18.9 million.
Loans and borrowings at 31 December 2009 were $7.3m (2008: nil), comprising $3.3
million of the five year $25 million facility for the Asacha project and $4
million outstanding on facilities provided by UFG.
Both the May 2009 UFG loan and a second facility provided by UFG in December
2009 to facilitate the refinancing with Sberbank included an option, subject to
the approval of TSG's shareholders, for UFG to convert the outstanding balances
of its loans into TSG shares. The Company's other major shareholder, AngloGold
Ashanti Limited (AGA) also agreed that, if the two UFG loans were so converted,
it would subscribe for new TSG shares on a proportionate basis to UFG, with part
of its subscription in consideration of the settlement of outstanding amounts
due for the provision of technical services by AGA to TSG.
On 23 March 2010 the UFG loans, in aggregate $4,366,781 including accrued
interest, and TSG's net indebtedness to AGA amounting to $842,352, were
converted into TSG shares. Also on 23 March 2010 additional shares to a value of
$1,636,956 were placed with AGA.
Asacha project costs
The total project cost until Asacha is cash flow positive is now estimated at
$117.3 million, net of $14 million VAT recoveries. The total project cost
includes pre-commissioning mining costs of $2.0 million, other pre-operating
expenditure of $32.5 million, "first fill" equipment spares and consumables of
$1.0 million and contingency of $1.3 million. A further $21.1 million of capital
expenditure, including contingency of $3.5 million, will be incurred after the
commencement of production, principally completion of the powerline, mine
development and the second phase of tailings storage.
Pre-start up capital expenditure is $9.1 million more than the February 2010
forecast. In part this reflects increased expenditure on the process plant and
facilities and completion of infrastructure and the first phase of tailings
storage in 2010. Additional equipment purchases are necessary in order to ensure
the completion of construction by the end of 2010 and plant commissioning in
first quarter 2011. The increase also reflects the strengthening of the Russian
rouble to a rate of $1:RUB29.5 (previously $1:RUB33) and cost increases due to
local inflation in Kamchatka affecting the construction sector.
Although pre-production mining costs are expected to be $1.5 million less than
previously projected, reflecting mine development progress already achieved,
other pre-operating expenditure has increased by $2.5 million from the February
2010 estimate, largely due to inflation (in particular a substantial increase in
fuel and transportation costs) and the stronger Russian rouble exchange rate.
Expected VAT recoveries are $0.5 million lower than previously anticipated
reflecting timing changes. Increased expenditure during the remainder of 2010
will not be reflected in higher VAT recoveries until after start up.
Actual expenditure on the project up to March 2010 amounted to $89.7 million,
net of $6.7 million VAT recovered. The remaining costs prior to the
commencement of production are estimated at $27.6 million, net of further VAT
recoveries of $7.3 million, comprising:
+-------------+----------------------------+---------+
| | | $ |
| | | million |
+-------------+----------------------------+---------+
| Capital | Mine and mining equipment | 1.7 |
| expenditure | and facilities | |
+-------------+----------------------------+---------+
| | Gold plant, site | 14.8 |
| | facilities and tailings | |
| | storage (1st phase) | |
+-------------+----------------------------+---------+
| | Off-site power supply and | 9.1 |
| | other infrastructure | |
+-------------+----------------------------+---------+
| | Contingency | 1.3 |
+-------------+----------------------------+---------+
| | Total capital | 26.9 |
+-------------+----------------------------+---------+
| Other | Pre-production mining, | 8.0 |
| costs | spares and consumables and | |
| | other operating costs | |
+-------------+----------------------------+---------+
| | | 34.9 |
+-------------+----------------------------+---------+
| Less VAT | | 7.3 |
| recoveries | | |
+-------------+----------------------------+---------+
| | | 27.6 |
+-------------+----------------------------+---------+
Rodnikova
Under the licence as revised in 2006, the Company was required to complete the
exploration programme of the licence area and to submit a geological report
containing reserve calculations for approval by the state geological authorities
before 31 December 2008 and to prepare and permit a feasibility study for the
development of the deposit before 31 March 2010. A pre-feasibility study
containing the required reserve calculations was submitted in December 2008.
This was discussed by the State Expert Commission for Reserves in June 2009 and
their comments and recommendations received in August 2009. The pre-feasibility
study will be revised and resubmitted during 2010. It is anticipated that the
final report on reserves will be submitted by the end of the third quarter of
2010, with approval expected in late 2010.
Ends
Contacts:
TSG
Simon Olsen +44 (0) 1480 811871
+44 (0) 7770 484965
Seymour Pierce
Mark Percy/David Foreman +44 (0) 20 7107
8000
Trans-Siberian Gold plc
Consolidated Statement of Financial Position
+----------------------------------------+------+----------+----------+
| | Note | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
| | | $000 | $000 |
+----------------------------------------+------+----------+----------+
| Assets | | | |
+----------------------------------------+------+----------+----------+
| Non-current assets | | | |
+----------------------------------------+------+----------+----------+
| Property, plant and equipment | | 60,381 | 50,430 |
+----------------------------------------+------+----------+----------+
| Exploration and evaluation costs | | 18,881 | 17,089 |
+----------------------------------------+------+----------+----------+
| Trade and other receivables | | 4,022 | 8,359 |
+----------------------------------------+------+----------+----------+
| Total non-current assets | | 83,284 | 75,878 |
+----------------------------------------+------+----------+----------+
| Current assets | | | |
+----------------------------------------+------+----------+----------+
| Trade and other receivables | | 1,515 | 3,460 |
+----------------------------------------+------+----------+----------+
| Cash and cash equivalents | | 1,953 | 4,549 |
+----------------------------------------+------+----------+----------+
| Total current assets | | 3,468 | 8,009 |
+----------------------------------------+------+----------+----------+
| Total assets | | 86,752 | 83,887 |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Liabilities | | | |
+----------------------------------------+------+----------+----------+
| Non-current liabilities | | | |
+----------------------------------------+------+----------+----------+
| Loans and borrowings | | 7,255 | - |
+----------------------------------------+------+----------+----------+
| Provisions | | 304 | 254 |
+----------------------------------------+------+----------+----------+
| Total non-current liabilities | | 7,559 | 254 |
+----------------------------------------+------+----------+----------+
| Current liabilities | | | |
+----------------------------------------+------+----------+----------+
| Trade and other payables | | 3,707 | 3,158 |
+----------------------------------------+------+----------+----------+
| Total current liabilities | | 3,707 | 3,158 |
+----------------------------------------+------+----------+----------+
| Total liabilities | | 11,266 | 3,412 |
+----------------------------------------+------+----------+----------+
| Total net assets | | 75,486 | 80,475 |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Capital and reserves attributable to | | | |
| owners of the Company | | | |
+----------------------------------------+------+----------+----------+
| Ordinary shares | | 15,103 | 15,103 |
+----------------------------------------+------+----------+----------+
| Share premium | | 73,311 | 73,311 |
+----------------------------------------+------+----------+----------+
| Retained deficit | | (12,928) | (7,939) |
+----------------------------------------+------+----------+----------+
| Total equity | | 75,486 | 80,475 |
+----------------------------------------+------+----------+----------+
Trans-Siberian Gold plc
Consolidated Statement of Comprehensive Income
+----------------------------------------+------+----------+----------+
| | Note | Year | Year |
| | | ended | ended |
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
| | | $000 | $000 |
+----------------------------------------+------+----------+----------+
| Revenue | | - | - |
+----------------------------------------+------+----------+----------+
| Administrative expenses | | (3,111) | (4,314) |
+----------------------------------------+------+----------+----------+
| Net foreign exchange losses on | | (2,197) | (3,571) |
| operating activities | | | |
+----------------------------------------+------+----------+----------+
| Loss from operations | | (5,308) | (7,885) |
+----------------------------------------+------+----------+----------+
| Finance expense | | (187) | (118) |
+----------------------------------------+------+----------+----------+
| Finance income | | 104 | 440 |
+----------------------------------------+------+----------+----------+
| Net foreign exchange differences on | | 10 | (345) |
| financing activities | | | |
+----------------------------------------+------+----------+----------+
| Loss before tax | | (5,381) | (7,908) |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Income tax credit | | 124 | 10 |
+----------------------------------------+------+----------+----------+
| Loss for the year | | (5,257) | (7,898) |
+----------------------------------------+------+----------+----------+
| Total comprehensive income for the | | (5,257) | (7,898) |
| year | | | |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Loss for the year attributable to: | | | |
+----------------------------------------+------+----------+----------+
| Owners of the parent company | | (5,257) | (7,898) |
+----------------------------------------+------+----------+----------+
| Minority interest | | - | - |
+----------------------------------------+------+----------+----------+
| Loss for the year | | (5,257) | (7,898) |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Total comprehensive income for the | | | |
| year attributable to: | | | |
+----------------------------------------+------+----------+----------+
| Owners of the parent company | | (5,257) | (7,898) |
+----------------------------------------+------+----------+----------+
| Minority interest | | - | - |
+----------------------------------------+------+----------+----------+
| Loss for the year | | (5,257) | (7,898) |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Loss per share attributable to the | | | |
| owners | | | |
| of the parent company (expressed in | | | |
| cents) | | | |
+----------------------------------------+------+----------+----------+
| - basic and diluted | | (6.19) | (15.45) |
+----------------------------------------+------+----------+----------+
There are no recognised gains or losses other than those stated
above
Trans-Siberian Gold plc
Consolidated Statement of Cash Flows
+----------------------------------------+------+----------+----------+
| | Note | Year | Year |
| | | ended | ended |
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
| | | $000 | $000 |
+----------------------------------------+------+----------+----------+
| Cash flows from operating activities | | | |
+----------------------------------------+------+----------+----------+
| Loss for the year | | (5,257) | (7,898) |
+----------------------------------------+------+----------+----------+
| Adjustment for: | | | |
+----------------------------------------+------+----------+----------+
| Depreciation | | 1,692 | 1,138 |
+----------------------------------------+------+----------+----------+
| Depreciation charged to assets under | | (1,273) | (1,076) |
| construction and deferred exploration | | | |
| and evaluation costs | | | |
+----------------------------------------+------+----------+----------+
| Finance expenses - net | | 72 | 23 |
+----------------------------------------+------+----------+----------+
| Share based payments | | 268 | (129) |
+----------------------------------------+------+----------+----------+
| Corporation tax credit | | (124) | (10) |
+----------------------------------------+------+----------+----------+
| Deferred exploration and evaluation | | (253) | - |
| expenditure written off | | | |
+----------------------------------------+------+----------+----------+
| Loss on sale of property plant and | | 61 | - |
| equipment | | | |
+----------------------------------------+------+----------+----------+
| Cash flows from operating activities | | (4,814) | (7,952) |
| before changes in working capital and | | | |
| provisions | | | |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Decrease (increase) in trade and other | | 1,695 | (5,460) |
| receivables | | | |
+----------------------------------------+------+----------+----------+
| Increase in trade and other payables | | 30 | 479 |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Cash used in operations | | (3,089) | (12,933) |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Corporation tax received | | 121 | 2 |
+----------------------------------------+------+----------+----------+
| Interest paid on borrowings | | (130) | (814) |
+----------------------------------------+------+----------+----------+
| Discontinued operations | | - | (2) |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Net cash flows from operating | | (3,098) | (13,747) |
| activities | | | |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Investing activities | | | |
+----------------------------------------+------+----------+----------+
| Purchase of property, plant and | | (5,699) | (19,265) |
| equipment (PPE) | | | |
+----------------------------------------+------+----------+----------+
| Proceeds from sale of PPE | | 1 | - |
+----------------------------------------+------+----------+----------+
| Purchase of exploration and evaluation | | (1,170) | (630) |
| assets including capitalised interest | | | |
+----------------------------------------+------+----------+----------+
| Interest received - third party | | 105 | 456 |
+----------------------------------------+------+----------+----------+
| Net cash used in investing activities | | (6,763) | (19,439) |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Financing activities | | | |
+----------------------------------------+------+----------+----------+
| Proceeds from convertible debt | | - | 2,000 |
+----------------------------------------+------+----------+----------+
| Proceeds from issuance of ordinary | | - | 12,450 |
| shares, net of expenses | | | |
+----------------------------------------+------+----------+----------+
| Proceeds from bank borrowings | | 3,255 | - |
+----------------------------------------+------+----------+----------+
| Proceeds from long term borrowings | | 6,500 | - |
+----------------------------------------+------+----------+----------+
| Repayment of long term borrowings | | (2,500) | (4,000) |
+----------------------------------------+------+----------+----------+
| Net cash generated from financing | | 7,255 | 10,450 |
| activities | | | |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Net decrease in cash and cash | | (2,606) | (22,736) |
| equivalents | | | |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Cash and cash equivalents at beginning | | 4,549 | 27,630 |
| of the year | | | |
+----------------------------------------+------+----------+----------+
| Exchange gains (losses) on cash and | | 10 | (345) |
| cash equivalents | | | |
+----------------------------------------+------+----------+----------+
| | | | |
+----------------------------------------+------+----------+----------+
| Cash and cash equivalents at end of | | 1,953 | 4,549 |
| the year | | | |
+----------------------------------------+------+----------+----------+
Notes
1. Going concern
The Group has significant funding needs in order to finance the completion of
the Asacha project, continue exploration at its properties and provide ongoing
working capital.
The directors believe that, in addition to the Sberbank $25 million facility
discussed in Note 4, further funding of $12 million is required to provide
adequate financing for the Group until the Asacha mine is cash flow positive. It
is currently the intention of the Board to satisfy that funding requirement
through raising additional debt finance, or a combination of debt finance and
equity, in the third quarter of 2010. The directors believe that the raising of
additional finance will be successful. Management tightly control the level of
committed expenditure to ensure that the Group has sufficient resources
available to meet its liabilities as they fall due.
Notwithstanding the material uncertainty related to the raising of additional
finance which may cast significant doubt on the Group's ability to continue as a
going concern, based on the progress of the negotiations with potential
providers of debt finance and discussions with potential investors, the
directors believe that the necessary funds to provide adequate financing until
the Asacha mine is cash flow positive can be raised as required and accordingly
they are confident that the Group will continue as a going concern and have
prepared the financial statements on that basis. The financial statements do not
include the adjustments that would result if the Group was not able to continue
as a going concern.
2. Exploration and evaluation costs
Movements on deferred exploration and evaluation expenditure at the Kamchatka
properties, are as follows:
+------------------------+----------+----------+----------+
| | | | |
+------------------------+----------+----------+----------+
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
| | | $000 | $000 |
+------------------------+----------+----------+----------+
| At 1 January | | 17,089 | 15,058 |
+------------------------+----------+----------+----------+
| Additions i | | 2,045 | 2,031 |
+------------------------+----------+----------+----------+
| Expenditure written | | (253) | - |
| off ii | | | |
+------------------------+----------+----------+----------+
| At 31 December | | 18,881 | 17,089 |
+------------------------+----------+----------+----------+
i Additions include capitalised PPE depreciation (see Note 3).
ii Expenditure written off represents an agreed reduction in the cost of
technical consultancy services provided by AngloGold Ashanti Limited.
In 2008 the Group early adopted IAS 23 (Amendment), Borrowing costs, which
requires an entity to capitalise borrowing costs directly attributable to the
acquisition, construction or production of a qualifying asset (one that takes a
substantial period of time to get ready for use or sale) as part of the cost of
that asset. Additions in 2009 include $231,145 (2008: $280,459) of interest
capitalised. The cumulative amount of interest capitalised in exploration and
evaluation costs is $1,561,829 (2008: $1,330,684).
Under the Asacha licence as revised in 2006, the Company's subsidiary ZAO
Trevohnoye Zarevo (TZ) was required to bring the Asacha mine into operation at
its projected capacity in accordance with the technical design at a rate of at
least 1,000 kg of gold per annum by 31 December 2008. That requirement was
partially fulfilled in 2008, with the commencement of mining activities and
first ore extraction. In December 2008, the Kamchatka regional governmental
commission noted the delay in mining but concluded that work to finalise
construction should continue to put the gold plant into operation in 2009.
Government authorities have since been kept advised of the development of the
project and although it is expected that, due to funding constraints arising in
2008-09, construction at Asacha will now be completed by the end of 2010 with
the plant commissioned during the first quarter of 2011, the Company believes
that there will be no adverse consequences of the delay. Discussions in respect
of any required amendments to the licence have already commenced with the
appropriate authorities and it is expected that these will be concluded prior to
plant commissioning.
3. Property, plant and equipment
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| | Buildings | Plant | Motor | Office | Assets | Total |
| | $000 | and | vehicles | equipment | under | $000 |
| | | machinery | $000 | and | constructioni | |
| | | $000 | | furniture | $000 | |
| | | | | $000 | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Cost | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 1 January | 1,173 | 2,968 | 520 | 579 | 23,389 | 28,629 |
| 2008 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Additions | 15 | 3,455 | 100 | 61 | 20,697 | 24,328 |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Disposals | - | - | - | (3) | - | (3) |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 31 December | 1,188 | 6,423 | 620 | 637 | 44,086 | 52,954 |
| 2008 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Depreciation | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 1 January | (406) | (348) | (343) | (291) | - | (1,388) |
| 2008 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Charge for | (203) | (714) | (157) | (64) | - | (1,138) |
| year ii | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Disposals | - | - | - | 2 | - | 2 |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 31 December | (609) | (1,062) | (500) | (353) | - | (2,524) |
| 2008 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Net book value | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 1 January | 767 | 2,620 | 177 | 288 | 23,389 | 27,241 |
| 2008 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 31 December | 579 | 5,361 | 120 | 284 | 44,086 | 50,430 |
| 2008 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Cost | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 1 January | 1,188 | 6,423 | 620 | 637 | 44,086 | 52,954 |
| 2009 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Additions | 32 | 277 | 1,006 | 54 | 10,335 | 11,704 |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Disposals | (53) | (15) | - | (96) | - | (164) |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 31 December | 1,167 | 6,685 | 1,626 | 595 | 54,421 | 64,494 |
| 2009 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Depreciation | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 1 January | (609) | (1,062) | (500) | (353) | - | (2,524) |
| 2009 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Charge for | (193) | (850) | (508) | (141) | - | (1,692) |
| year ii | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Disposals | 10 | 6 | - | 87 | - | 103 |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 31 December | (792) | (1,906) | (1,008) | (407) | - | (4,113) |
| 2009 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| Net book value | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 1 January | 579 | 5,361 | 120 | 284 | 44,086 | 50,430 |
| 2009 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
| At 31 December | 375 | 4,779 | 618 | 188 | 54,421 | 60,381 |
| 2009 | | | | | | |
+----------------+-----------+-----------+----------+-----------+---------------+---------+
i Assets under construction comprise $5,482,371 (2008: $4,575,780) in relation
to the construction of an access road to Asacha; $43,448,977 (2008: $30,521,497)
for building construction and infrastructure, and $5,489,326 (2008: $8,983,105)
for plant and equipment at Asacha; and $0 (2008: $5,316) for infrastructure at
Rodnikova.
ii $1,272,854 (2008: $1,076,023) of the depreciation charge related to
property, plant and equipment used on exploration and evaluation projects or
assets under construction and was capitalised in exploration and evaluation
costs or property plant and equipment in accordance with the Group's accounting
policy.
4. Borrowings
+-----------------------+------+----------+----------+----------+
| | | | |
+-----------------------+------+---------------------+----------+
| | Note | 31 | 31 | |
| | | December | December | |
| | | 2009 | 2008 | |
| | | $000 | $000 | |
+-----------------------+------+----------+----------+----------+
| Non-current: | | | | |
+-----------------------+------+----------+----------+----------+
| Bank Borrowings | | 3,255 | - | |
+-----------------------+------+----------+----------+----------+
| Related party - | | 4,000 | - | |
| convertible debt | | | | |
+-----------------------+------+----------+----------+----------+
| | | 7,255 | - | |
+-----------------------+------+----------+----------+----------+
+-----------------------+----+---------+---------+----------+
| Movement in | | 2009 | 2008 | |
| borrowings | | $000 | $000 | |
+-----------------------+----+---------+---------+----------+
| At 1 January | | - | 10,000 | |
+-----------------------+----+---------+---------+----------+
| Increase in | | 9,755 | 2,000 | |
| borrowings | | | | |
+-----------------------+----+---------+---------+----------+
| Repayment of loan | | (2,500) | (4,000) | |
+-----------------------+----+---------+---------+----------+
| Conversion of loans | | - | (8,000) | |
| to equity | | | | |
+-----------------------+----+---------+---------+----------+
| At 31 December | | 7,255 | - | |
+-----------------------+----+---------+---------+----------+
On 19 October 2009 ZAO Trevozhnoye Zarevo (TZ) began to draw down a three year
$25 million loan facility for the Asacha project from a Russian bank at an
annual interest rate of 14.5%. This initial borrowing was refinanced with a five
year facility from Sberbank on 30 December 2009 at an annual interest rate of
11.75%. Repayments are scheduled to commence in December 2011.
On 29 May 2009 UFG Asset Management (UFG) provided TSG with a loan facility of
$3 million on commercial terms, repayable in two equal tranches, the first on
the earlier of the first anniversary of the commencement of gold production at
Asacha and 30 September 2011, and the second on the earlier of the second
anniversary of the commencement of gold production at Asacha and 30 September
2012.
On 2 December 2009 UFG agreed to provide a second loan facility of $3.5 million
on commercial terms, all or part of which could be repaid without penalty at any
time before the scheduled repayment in two tranches on the same dates as the
facility agreed in May 2009, in order to facilitate the refinancing of TZ's $25
million loan facility discussed above. TSG drew down the $3.5 million on 8
December 2009 and, following completion of the refinancing of TZ's facility,
repaid $2.5 million to UFG on 30 December 2009.
Each of the facility agreements included an option for UFG, subject to the
approval of TSG's shareholders, to convert any part of the outstanding loan into
TSG shares at a price equivalent to the volume weighted average price of TSG's
shares for the period of 60 business days prior to notice of such conversion. On
25 February 2010 UFG served notice of its option to convert the outstanding
amounts of both facilities. On 23 March 2010 the loans, in aggregate $4,366,781
including accrued interest, were converted into TSG shares.
In consideration of the May 2009 facility, the Company also agreed, subject to
obtaining the necessary shareholder approvals, to issue warrants to subscribe
for additional TSG shares to UFG on terms to be agreed and considered as fair
and reasonable by the Company's Board (excluding those directors connected to
UFG) after consultation with TSG's Nominated Adviser. No warrants were issued in
2009 or after the reporting date.
5. Share capital and premium
+------------------+-------------+------------+---------+---------+---------+
| | Number | Number | Share | Share | Total |
| | of | of | capital | premium | $000 |
| | shares | shares | $000 | $000 | |
| | authorised | allotted | | | |
| | | and | | | |
| | | fully | | | |
| | | paid | | | |
+------------------+-------------+------------+---------+---------+---------+
| | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| At 1 January | 100,000,000 | 41,163,949 | 6,951 | 60,821 | 67,772 |
| 2008 | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| Shares | 50,000,000 | | | | |
| authorised | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| Shares issued | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| - Placing for | | 43,749,082 | 8,152 | 12,490 | 20,642 |
| cash | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| At 31 December | 150,000,000 | 84,913,031 | 15,103 | 73,311 | 88,414 |
| 2008 | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| At 1 January | 150,000,000 | 84,913,031 | 15,103 | 73,311 | 88,414 |
| 2009 | | | | | |
+------------------+-------------+------------+---------+---------+---------+
| At 31 December | 150,000,000 | 84,913,031 | 15,103 | 73,311 | 88,414 |
| 2009 | | | | | |
+------------------+-------------+------------+---------+---------+---------+
On 23 March 2010 14,756,339 ordinary shares were issued at 30.8 pence in a
placing for cash as described in Note 6.
On 18 August 2008 the Company's shareholders approved an increase in the
Company's authorised share capital of 50,000,000 ordinary shares to 150,000,000
ordinary shares. On 18 August 2008 26,507,899 ordinary shares were issued at
25.5 pence per share for a total cash consideration, before issuing costs, of
GBP6.8 million ($12,595,003) to entities associated with UFG Asset Management
(UFG), two Directors and other shareholders. Also on 18 August 2008 17,241,183
ordinary shares were issued, also at 25.5 pence per share, to UFG and AngloGold
Ashanti Limited in consideration of the conversion of the Company's debt
facilities, in aggregate US$8,192,002 including accrued interest.
6. Events after the reporting date
On 23 March 2010 3,533,534 ordinary shares were issued at 30.8 pence per share
for a total cash consideration, before issuing costs, of GBP1.1 million
($1,636,956) to AngloGold Ashanti Limited (AGA).
Also on 23 March 2010 11,222,805 ordinary shares were issued, also at 30.8 pence
per share, to UFG Asset Management (UFG) and to AGA in settlement of the
Company's indebtedness, in aggregate $5,209,133 including accrued interest.
9,408,002 shares were issued to UFG in consideration of the conversion of the
outstanding amounts of two loan facilities as discussed in note 4. 1,814,803
ordinary shares were issued to AGA in settlement of technical consultancy
services provided by AGA.
7. Basis of accounting and presentation of financial information
The Group's financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union. However this announcement does not in itself contain sufficient
information to comply with IFRS.
The financial information does not constitute the Group's statutory financial
statements as defined in section 434 of the Companies Act 2006 but is derived
from those accounts. The financial information for the year ended 31 December
2009 has been extracted from the audited accounts of Trans-Siberian Gold plc
which will be delivered to the Registrar of Companies in due course. The
auditors reported on those accounts and their report was unqualified and did not
contain a statement under section 498 (2) or (3) of the Companies Act 2006. The
audit report for the year ended 31 December 2009 did contain an emphasis of
matter in respect of going concern to which the auditors drew attention without
qualifying their report. The financial information for the year ended 31
December 2008 has been extracted from the audited accounts of Trans-Siberian
Gold plc which have been delivered to the Registrar of Companies. The auditors
reported on those accounts and their report was unqualified and did not contain
a statement under section 498 (2) or (3) of the Companies Act 2006. The audit
report for the year ended 31 December 2008 did contain an emphasis of matter in
respect of going concern to which the auditors drew attention without qualifying
their report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KKQDBABKDPPB
Trans-siberian Gold (LSE:TSG)
過去 株価チャート
から 7 2024 まで 8 2024
Trans-siberian Gold (LSE:TSG)
過去 株価チャート
から 8 2023 まで 8 2024
