30th Sep 2009 14:35
30 September 2009 Kryso Resources plc `Kryso' or `the Company' AIM: KYS Company Registration Number 0519050 Interim Results for the Six-Month Period Ended 30 June 2009
For further information please visit the Company's website (www.kryso.com) or contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc
Tel: +44 (0) 20 7371 0600
Brett Miller/Gavin Burnell, Astaire Securities plc
Tel: +44 (0) 20 7448 4400
Christian Dennis, Orbis Equity Partners Ltd
Tel: +44 (0) 20 3137 1902
Jason Bahnsen, Fox-Davies Capital Ltd
Tel: +44 (0) 20 7936 5200
Background Information on Kryso Resources plc
Kryso has 100% ownership of the Pakrut gold project, which is located in the Central Asian nation of Tajikistan. Drilling at Pakrut has returned exciting intersections, including 123.7m at 6.14g/t Au, 42m at 11.17g/t Au and 50m at 5.67g/t Au. Additionally, Kryso has 100% ownership of the Hukas nickel-copper project, which is also located in Tajikistan.
The Company is managed by a team with extensive mining industry experience in Tajikistan, which it considers to be among the most attractive operating environments in Central Asia.
About the Pakrut Gold Project
The Pakrut gold project is situated in western Tajikistan approximately 112 km northeast of the capital city Dushanbe. Pakrut has total JORC Code-compliant gold resources of 1,984,272oz Au and is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and western China and which hosts numerous multi-million ounce gold deposits.
A bankable feasibility study for the Pakrut project is currently being undertaken by the Beijing General Research Institute for Mining & Metallurgy. The bankable feasibility study is scheduled for completion before the end of 2009 and is targeting a mining operation producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au.
About Tajikistan
Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States (CIS) and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia.
KRYSO RESOURCES PLC Company Registration Number 0519050 Interim Results for the Six-Month Period Ended 30 June 2009
30 September 2009
Chairman's Statement
I am delighted to be able to report that since I last addressed shareholders on 10 June Kryso's situation has improved markedly. Most notably, the Company has appointed the Beijing General Research Institute for Mining & Metallurgy (BGRIMM) to complete the bankable feasibility study (BFS) for the Pakrut gold project.
BGRIMM is a well-regarded and highly experienced Chinese consulting group specialising in mining engineering, mineral processing and metallurgy. The group is ISO9000 certified and has a track record of working successfully with well-known international companies including El Dorado Gold, SinoGold, Kazakhmys, Griffin Mining and ArcelorMittal.
Where appropriate, BGRIMM will utilise work carried out for Kryso by other consultants, which include GBM Minerals Engineering Consultants (metallurgical test work review and preliminary process design), GeoLogix Mineral Resource Consultants (resources), Prime Resources (social and environmental), Scott Wilson Group (tailings dam design), SGS Group (metallurgical test work) and Turgis Mining Consultants (mining and infrastructure).
In addition, and equally important, Kryso has raised a total of 1,722,750 of equity financing to underpin its future activities. The most recent placing of shares, to ALTUS Resource Capital Limited, ensures that the Company has adequate funding for the completion of the Pakrut BFS, which we expect to achieve before the end of 2009.
It was very pleasing to report in July that new JORC Code-compliant inferred resources of 245,243oz Au in Ore Zones 5, 6, 7, 14 and 16 have been identified at the Pakrut gold project. We intend to report an updated JORC Code-compliant resource estimate for Pakrut to the market shortly, and expect this to show a further increase in the overall JORC Code-compliant resources of the project.
The Pakrut gold deposit remains open in multiple directions and the Pakrut licence area as a whole is very prospective for the discovery of additional gold resources. However, Kryso's immediate attention will remain fixed on defining additional resources at Pakrut and Eastern Pakrut, as these are likely to have the most rapid positive impact on the proposed mining operation centred on the Pakrut deposit.
On a final note, it is tremendously encouraging to see the price of gold repeatedly exceeding the psychologically important level of US$1,000 per troy ounce. Kryso is now well-funded to achieve its objectives, and is making strong progress. In summary, I feel able to look to the future of the Company with renewed optimism.
The amount spent on development work and capitalised during the six months to 30 June 2009 has decreased compared with the six months to 30 June 2008. The amount capitalised during the six months to 30 June 2009 was US$217,000. This decrease occurred as following the completion of the underground drilling programme, drilling at Pakrut did not continue through the 2008-09 winter, as it did during the previous winter.
Administration expenditure increased by US$277,000 during the six months to 30 June 2009 compared with the six months to 30 June 2008, and the overall loss increased from US$409,000 to US$729,000. The increase in administration expenditure and hence the increased overall loss was due to costs associated with the abortive Vertex Mining International (Cyprus) Limited transaction.
Dr. Trevor DavenportChairmanKRYSO RESOURCES PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2009 Audited Unaudited Unaudited Year ended Six months to Six months to 31 December 30 June 2009 30 June 2008 2008 Note US$'000 US$'000 US$'000Group Revenue - - -Cost of sales - - - ______ ______ ______Gross Profit - - -Administrative expenses (678) (401) (980)Loss on foreign exchange (52) (30) (105) ______ ______ ______Operating Loss (730) (431) (1,085)Finance income 1 22 42 ______ ______ ______Loss on Ordinary Activities before Taxation 2 (729) (409) (1,043)Tax on loss on ordinary activities - - - ______ ______ ______Total Comprehensive Income attributable to equityholders of the Company (729) (409) (1,043) ______ ______ ______Loss Per Share (expressed in US dollars per share)- basic and diluted (0.0079) (0.0052) (0.0125) ______ ______ ______
All of the activities of the Group are classed as continuing.
KRYSO RESOURCES PLC CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2009 Audited Unaudited Unaudited Year ended Six months to Six months to 31 December 30 June 2009 30 June 2008 2008 US$'000 US$'000 US$'000Non-current AssetsIntangible assets 14,161 11,849 13,893Tangible assets 114 250 170 ______ _____ _____ 14,275 12,099 14,063 ______ _____ _____Current AssetsInventories 616 714 452Debtors 46 396 78Cash and cash equivalents 295 637 453 ______ _____ _____ 957 1,747 983Current Liabilities (1,439) (1,418) (1,544) ______ _____ _____Net Current (Liabilities)/Assets (482) 329 (561) ______ _____ _____ Total Assets less Current Liabilities 13,793 12,428 13,502 ______ _____ _____Equityand reserves attributable to equityholders of the CompanyCalled-up equity share capital 1,890 1,481 1,680Share premium account 15,339 13,033 14,529Retained earnings (3,436) (2,086) (2,707) ______ _____ _____Total Equity 13,793 12,428 13,502______ _____ _____KRYSO RESOURCES PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2009 Audited Unaudited Unaudited Year ended Six months to Six months to 31 December 30 June 2009 30 June 2008 2008 US$'000 US$'000 US$'000Net Cash Outflow from Operating Activities (962) (446) (100)
Cash flows from Investing Activities
Interest received 1 22 42Payments to acquire intangible fixed assets (217) 1,516) (3,486)Payments to acquire tangible fixed assets - (7) (8) ______ _____ _____Net cash outflow from Investing Activities (216) (1,501) (3,452) ______ _____ _____
Cash flows from Financing Activities
Issue of Equity Share Capital (Net of Issue Costs)1,020 - 1,695Receipt of convertible loan - 998 -Proceeds from borrowings - - 724 ______ _____ _____Net cash inflow from Financing Activities 1,020 998 2,419 ______ _____ _____Decrease in Cash and Cash Equivalents (158) (949) (1,133)Cash and cash equivalents at beginning of period 453 1,586 1,586 ______ _____ _____Cash and cash equivalents at end of period 295 637 453 ______ _____ _____Reconciliation of Operating Loss to Net CashOutflow from Operating ActivitiesOperating loss (730) (431) (1,085)Depreciation 5 8 15Share based payments - - 12(Increase)/decrease in inventories (164) (93) 169Decrease/(increase) in debtors 32 (69) 249(Decrease)/increase in creditors (105) 139 540 ______ _____ _____Net Cash Outflow from Operating Activities (962) (446) (100) ______ _____ _____KRYSO RESOURCES PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2009 Capital Share Retained Total premium earnings equity US$'000 US$'000 US$'000 US$'000Balance at 1 January 2008 1,481 13,033 (1,676) 12,838 ______ ______ ______ ______Total comprehensive income - - (409) (409) ______ ______ ______ ______Balance at 30 June 2008 1,481 13,033 (2,085) 12,429 ______ ______ ______ ______Total comprehensive income - - (634) (634)Share based payment - - 12 12New Shares issued 199 1,585 - 1,784Cost of share issue (89) (89) ______ ______ ______ ______Balance at 31 December 2008 1,680 14,529 (2,707) 13,502 ______ ______ ______ ______Total comprehensive income - - (729) (729)New Shares issued 210 908 - 1,118Cost of share issue (98) (98) ______ ______ ______ ______Balance at 30 June 2009 1,890 15,339 (3,436) 13,793 ______ ______ ______ ______
KRYSO RESOURCES PLC NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
1. Accounting Policies
Basis of Accounting
These unaudited interim financial statements were approved for issue by the Kryso Resources plc Board of Directors on 29 September 2009.
This financial information has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRIC Interpretations. The financial information has been prepared under the historical cost convention. The annual financial statements are prepared in accordance with IFRS as adopted by the European Union. The same accounting policies are followed in the interim financial information as applied in the Group's latest annual audited financial statements.
As permitted, the Group has chosen not to adopt IAS 34 `Interim Financial Statements' in preparing this interim financial information.
Except as described below, the Group has applied consistent accounting policies in preparing the consolidated interim financial statements for the six months ended 30 June 2009, the comparative information for the six months ended 30 June 2008, and the financial statements for the year ended 31 December 2008.
The Group applies revised IAS 1 Presentation of Financial Statements, which became effective as of 1 January 2009. As a result, the Group presents in the consolidated statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the consolidated statement of comprehensive income. This standard is concerned with presentation only and does not have any impact on the results or net assets of the Group. Comparative information has been re-presented so that it also is in conformity with the revised standard.
These interim results are unaudited and do not constitute statutory financial statements as defined in section 435 of the Companies Act 2006. The functional currency of the Group is US dollars and accordingly the amounts in the interim results are denominated in that currency. The balance sheet rate of exchange for the US dollar to UK Sterling was US$1.65163 to: 1.
The statutory financial statements for Kryso Resources plc for the year ended 31 December 2008 received an unqualified Auditors Report and have been filed with the Registrar of Companies.
Basis of Consolidation
The consolidated interim results incorporate the interim results of the Company and all Group undertakings. These are adjusted, where appropriate, to conform to Group accounting policies. Acquisitions are accounted for under the acquisition method. Goodwill on consolidation is capitalised and the value of this goodwill is reviewed for impairment on a periodic basis. The results of companies acquired or disposed of are included in the Group income statement after or up to the date that control passes respectively. All significant intercompany transactions and balances between group undertakings are eliminated on consolidation.
Exploration and Development Expenditure
Research expenditure is written off in the year in which it is incurred. When a decision is taken that a mining property becomes viable for commercial production, all further pre-production expenditure is capitalised. Expenditure included in the initial measurement of exploration and evaluation assets and which are classified as intangible assets relate to the acquisition of rights to undertake topographical, geological, geochemical and geophysical studies, exploratory drilling, trenching, sampling and other activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource. Capitalisation of pre-production expenditure ceases when the mining property is capable of commercial production.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of any asset may exceed its recoverable amount. The assessment is carried out by allocating exploration and evaluation assets to cash generating units which are based on geographical areas. Where exploration for and evaluation of mineral resources in cash generating units does not lead to the discovery of commercially viable quantities of mineral resources and the Group has decided to discontinue such activities at that unit, the associated expenditure will be written off in the Income Statement.
KRYSO RESOURCES PLC NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
2. Operating Loss
Operating loss is stated after charging/(crediting): Audited Unaudited Unaudited Year ended Six months to Six months to 31 December 30 June 2009 30 June 2008 2008 US$'000 US$'000 US$'000Depreciation 56 218 300Less transfer to exploration costs (51) (210) (285)Auditors' remunerationFees payable to the Company's auditor for the audit of Group's and Company's annual accounts 10 9 35Other services under legislative requirements - 2 2Tax services 11 - 2Services relating to corporate finance transaction 5 - 29Operating lease rentals - other 28 20 41
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