19th May 2014 13:49
LONDON (Alliance News) - Oxus Gold PLC Monday said it narrowed its losses in 2013 on the back of lower administrative expenses and arbitration costs associated with its ongoing effort to secure compensation from the government of Uzbekistan for assets it claims were taken from it illegally.
The London-based mining company reported a loss of USD4.58 million in 2013, against a loss of USD6.84 million in 2012. During the year, it said it booked USD2.14 million in arbitration expenses, and financial expenses of USD1.75 million, both lower than in 2012.
Total group assets decreased to USD75.46 million, it said, from USD75.82 million a year earlier.
Oxus is seeking compensation for the loss of its Amantaytau Goldfields and Khandiza mining assets. It is in arbitration to secure compensation from Uzbekistan for assets it claims were taken from it illegally. There are no other operating activities currently being undertaken by the group.
The company went into international arbitration proceedings in August last year, seeking damages of about USD400 million, after Uzbekistan government-backed companies initiated an audit of Oxus's Amantaytau Goldfields joint venture. Oxus alleges the audit was set up to find reasons to justify the liquidation of Amantaytau.
Oxus said Monday that a hearing has taken place in Paris, and it is currently awaiting the tribunal's decision, which is expected during 2014, with regards to both the merits and quantum of the claim.
Oxus also said that Said Ashurov, the former chief metallurgist in the country for Amantaytau Goldfields, remains in Uzbekistan prison, convicted of espionage, despite attempts to secure his release from prison. The company said it considers it to be "an unjust and improper conviction for seeking to remove allegedly classified information from the country".
Oxus shares were trading 2.0% higher at 2.08 pence Monday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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