Central Asian Minerals and Resources PLC

LSE : CMRP


May 30, 2014 02:00 ET

Audited Results for the year ended 31 December 2013

                                                                                                30 May 2014
                                                                                               IM00B61FM981
                                                     
                                 Central Asian Minerals and Resources PLC
                                        ("CAMAR" or the "Company")

                            AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013

The Directors of Central Asian Minerals and Resources PLC (ISDX: CMRP), the gold production and exploration
company focused on Tajikistan, are pleased to announce the Company's audited results for the year ended  31
December 2013.

Chairman's Statement

The Group made a loss for the year of USD 4,818,043 (2012: loss of USD 6,364,791).  The results reflect the
Group's  share of losses from the Aprelevka Joint Venture during the year, which were USD 3,077,872  (2012:
USD  2,152,397).  These losses included USD 2,242,972 (2012: USD 1,652,466) relating to the  impairment  of
certain intangible exploration assets.

As  I  wrote  last year CAMAR has made significant investment in the last few years into its Joint  Venture
"Aprelevka"  which  continues to produce around 1,000 oz. of gold each month. To increase  production  will
however  require substantial additional investment, and the decline in the price of gold  (a  fall  of  22%
since  31  December  2012)  has both impacted the production revenue stream and  provided  a  deterrent  to
investors willing to commit funds to the venture.

Despite  this, your board has had some success in attracting potential investors, though further investment
has  been conditional upon the Tajik Government accepting a reduction of their share in Aprelevka. To  date
the  government has yet to formally respond to our proposals. While awaiting their decision, your board has
conducted  a  program of cost reductions and continues to investigate alternative methods  of  funding  the
development of its interest in the Aprelevka mine.

Oliver John Vaughan
Chairman
30 May 2014


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
                                                                                                     


                                                                                 Year ended     Year ended
                                                                                 2013           2012
                                                                                 USD            USD
                                                                                                
 Revenue                                                                         -              139,251
                                                                                                
 Administrative expenses                                                         (1,843,944)    (3,444,363)
 Net loss from joint venture                                                     (3,077,872)    (2,152,397)
                                                                                                
                                                                                                
 Operating loss                                                                  (4,921,816)    (5,457,509)
                                                                                                
 Investment revenue                                                              195,095        107,006
 Other gains and losses                                                          704,364        (33,566)
 Finance costs                                                                   (795,686)      (980,722)
                                                                                                
                                                                                                
 Loss before taxation                                                            (4,818,043)    (6,364,791)
                                                                                                
 Taxation                                                                        -              -
                                                                                                
                                                                                                
 Loss for the year                                                               (4,818,043)    (6,364,791)
                                                                                                
 Other comprehensive income                                                                     
 Exchange difference on translation of foreign operations                        (208,336)      (305,261)
 Share of other comprehensive income of joint venture                            (232,848)      (232,929)
                                                                                                
                                                                                                
 Total comprehensive loss for the year                                           (5,259,227)    (6,902,981)
                                                                                                
                                                                                                
                                                                                                
 Loss per share                                                                                 
 Basic                                                                           (0.29)         (0.38)
 Diluted                                                                         (0.29)         (0.38)
                                                                                                
                                                                                                

The loss for the year is attributable to the equity shareholders of the company.

All operations are continuing operations.
 
 
 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013
                                                                                                     


                                                                                 2013           2012
                                                                                 USD            USD
 ASSETS                                                                                         
 Non-current assets                                                                             
 Property, plant and equipment                                                   -              2,652
 Investment in joint venture                                                     7,538,615      10,646,775
                                                                                                
                                                                                                
                                                                                 7,538,615      10,649,427
 Current assets                                                                                 
 Loans to joint venture                                                           996,582        1,106,312
 Trade and other receivables                                                     123,447        200,844
 Cash and cash equivalents                                                       854            807,663
                                                                                                
                                                                                                
                                                                                 1,120,883      2,114,819
                                                                                                
                                                                                                
                                                                                                
 TOTAL ASSETS                                                                    8,659,498      12,764,246
                                                                                                
                                                                                                
                                                                                                
 EQUITY AND LIABILITIES                                                                         
 Equity attributable to owners of the parent                                                    
 Share capital                                                                   -              -
 Share premium account                                                           14,606,453     14,606,453
 Retained earnings                                                               (11,980,082)   (6,973,524)
                                                                                                
                                                                                                
 Total equity                                                                    2,626,371      7,632,929
                                                                                                
 Current liabilities                                                                            
 Convertible loan notes                                                          5,132,339      4,985,322
 Trade and other payables                                                        900,788        145,995
                                                                                                
                                                                                                
 Total liabilities                                                               6,033,127      5,131,317
                                                                                                
                                                                                                
                                                                                                
 TOTAL EQUITY AND LIABILITIES                                                    8,659,498      12,764,246
                                                                                                
                                                                                                

Audit Report

The text of the Independent Auditor's Report to the shareholders of the Company is set out below:

"We  have  audited  the  financial statements (the "financial statements") of Central  Asian  Minerals  and
Resources  Plc  for  the  year  ended  31  December  2013 which  comprise  the  Consolidated  Statement  of
Comprehensive  Income, the Consolidated and Company Statements of Financial Position, the Consolidated  and
Company  Statements of Cash Flows, the Consolidated and Company Statements of Changes  in  Equity  and  the
related notes. These financial statements have been prepared under the accounting policies set out in  note
2 to the financial statements. The financial reporting framework that has been applied in their preparation
is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

This  report is made solely to the company's members as a body. Our audit work has been undertaken so  that
we  might  state  to the company's members those matters we are required to state to them in  an  auditor's
report  and  for  no  other purpose. To the fullest extent permitted by law, we do  not  accept  or  assume
responsibility  to anyone other than the company and the company's members as a body, for our  audit  work,
for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As  explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for
the  preparation of financial statements that give a true and fair view. Our responsibility is to audit and
express  an opinion on the group's financial statements in accordance with applicable law and International
Standards  on  Auditing  (UK  and Ireland). Those standards require us to comply  with  Auditing  Practices
Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An  audit  involves  obtaining  evidence  about the amounts and disclosures  in  the  financial  statements
sufficient  to give reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or error. This includes an assessment of:

    *       whether the accounting policies are appropriate to the group's and the company's circumstances and
            have been consistently applied and adequately disclosed;

    *       the reasonableness of significant accounting estimates made by the directors; and

    *       the overall presentation of the financial statements.

Basis for disclaimer of opinion on financial statements

The  audit evidence available to us was limited because the joint venture company in which the Group has  a
49%  shareholding did not prepare financial statements in accordance with IFRSs nor did it instruct a  firm
of  auditors to perform an audit in accordance with International Standards on Auditing.  We were not  able
to  obtain sufficient audit evidence by other means and this represents a limitation placed on the scope of
our  work  by  the  directors of the Company. As a result of this we have been unable to obtain  sufficient
appropriate  audit  evidence concerning the Group's investment in joint venture or the net  loss  from  the
joint  venture.  In addition, we have been unable to obtain sufficient appropriate audit evidence  relating
to the carrying value of the Company's investment in subsidiaries and loans to subsidiaries as the carrying
value  is  supported by the underlying investment in the joint venture together with the expected  proceeds
receivable on the future disposal of the Company's investment which, at this stage, is uncertain.

Disclaimer of opinion on group financial statements

Because  of  the significance of the matters described in the Basis for Disclaimer of Opinion on  Financial
Statements  paragraph, we have not been able to obtain sufficient appropriate audit evidence to  provide  a
basis  for  an audit opinion on the financial statements. Accordingly we do not express an opinion  on  the
financial statements.

Emphasis of matter - going concern

In  forming our opinion, we have considered the adequacy of the disclosures made in note 2 to the financial
statements concerning the Company's ability to continue as a going concern. The going concern assumption is
predicated on a number of scenarios, either the receipt of funds from the sale of the Group's investment in
the  joint  venture  and/or the receipt of funds through an equity fundraising or  debt  issue  and/or  the
extension of the repayment date of the convertible loan notes.   The outcome of these scenarios is not  yet
certain.

These  conditions indicate the existence of a material uncertainty which may cast significant  doubt  about
the  Company's  ability  to  continue  as a going concern. The financial  statements  do  not  include  the
adjustments that would result if the Company was unable to continue as a going concern.

Adler Shine LLP
Statutory Auditor
Chartered Accountants
Aston House
Cornwall Avenue
London
N3 1LF
United Kingdom

30 May 2014"

The Directors do not recommend the payment of a dividend.

The Directors of CAMAR are responsible for the contents of this announcement.

Enquiries:

Central Asian Minerals and Resources PLC                                          01624 679 000
Oliver Vaughan/Peter Zihlmann

Peterhouse Corporate Finance Limited                                              020 7220 9796
Mark Anwyl and Duncan Vasey

Contact Information

  • Central Asian Minerals and Resources PLC