Central Asian Minerals and Resources PLC
LSE : CMRP

September 30, 2011 05:30 ET

Interim Results for the six months ended 30 June 2011

                                                                                               IM00B61FM981
                                                                                          30 September 2011
                                                     
                                 CENTRAL ASIAN MINERALS AND RESOURCES PLC
                                        ("CAMAR" or the "Company")
                                                     
                                         Unaudited interim results
                                   for the six months ended 30 June 2011
                                                     
CAMAR, the gold production and exploration company focused in Tajikistan, announces its interim results for
the  six  months  ended  30 June 2011. During this period the Company acquired the share  capital  of  Gulf
International Minerals Limited with its joint venture stake in the Aprelevka production operations.

Chairman's statement

The  first  six months of 2011 saw a number of significant developments for the Company. On 26 April  2011,
CAMAR completed the acquisition (the "Acquisition") of Gulf International Minerals Limited ("Gulf UK"), the
joint  owner of the Joint Tajik-Canadian Limited Liability Company "Aprelevka" ("Aprelevka"). Aprelevka  is
licensed to operate and is currently operating the Aprelevka gold mine in Tajikistan.

The Company had revenues of USD 48,000 in the six months ended 30 June 2011 and made a loss of USD 550,271.
For  most of the period, CAMAR was an investment vehicle and received no contribution from its 49 per  cent
interest in Aprelevka.

The circular to shareholders in the Company containing further information about the Acquisition included a
Competent  Person's Report ("CPR") which identified  the opportunities and risks associated with Gulf  UK's
interest  in the Aprelevka mine and made certain recommendations to the Company as to how best  to  exploit
the  opportunities at the mine. One of the key recommendations of the CPR was that CAMAR  should  undertake
additional due diligence on the resources at Aprelevka and determine the extent of lower grade reserves  at
the mine, as these had been disregarded by early Soviet geological surveys.

Since  completion of the Acquisition, CAMAR has therefore undertaken extensive mapping and sampling  across
Aprelevka's licence areas. A number of samples are currently being tested at a laboratory in Kyrgyzstan and
initial  results indicate the existence of significant lower grade resources. CAMAR is also in the  process
of  reviewing  overall  mine  planning  and the implementation of  various  mining  techniques  to  improve
productivity  and  lower the overall cash cost per ounce produced.  An initial scoping phase  of  the  mine
planning is underway and is expected to be completed in the near future.

CAMAR  also  intends  to commission additional geochemical and geophysical surveys of  its  licence  areas,
including  hyperspectral imaging, ahead of a planned diamond drilling programme. Moreover, the Company  has
been  granted permission to commence mining at the Aprelevka East pit and intends to start operations there
as soon as practicable. In addition, the Company has applied for a new mining licence in an area contiguous
to its existing operations and the Directors are confident that this application will be successful.

Following  the  appointment of Neil Stevenson as Chief Operating Officer of the Company in Tajikistan,  the
company  is  now  well placed to push forwards with its current strategy. Neil, who  is  a  Fellow  of  the
Australasian Institute of Mining and Metallurgy, has over 25 years' experience operating in both  open  pit
and  underground mining operations, most recently with Hambledon Mining PLC in Kazakhstan.  Neil's  initial
tasks are to assess the operation of the Company's mill at Kansai and to examine mining methods across  the
various licence areas as part of CAMAR's efforts to bring Aprelevka's historically high recovery costs down
to a level equal to or below industry benchmarks.

A  review  of the mining and processing operations has commenced.  The further assessment will be conducted
using  external consultants and local staff.  Initial indications are that significant improvements can  be
made  to  the current operation that will allow some increased production within the existing  budget.   In
addition we will be examining the heap leach potential of the Aprelevka mine.  Subsequent to the validation
sampling  and testing, a re-evaluation of the model data on Aprelevka will be carried out to determine  the
impact of current gold prices on the pit design.

Post the period GBP4,377,105 was raised in August 2011 through a placing of 6,734,008 units at 65 pence per
unit  (a  "Unit").  Each  Unit comprises one ordinary share of no par value in the  Company  (an  "Ordinary
Share") and one warrant to subscribe for an Ordinary Share at 65p per Ordinary Share at any time before  30
June  2014  (the  "Placing"). This funding allows us to aggressively pursue our strategy to  optimise  gold
production  at  Aprelevka and establish significant independently audited gold resources to internationally
recognised standards.

Oliver John Vaughan
Chairman

Enquiries:

Central Asian Minerals and Resources PLC                                                      01624 679 000
Christine Melian or John Leech

St Helens Capital Partners LLP                                                                020 7368 6959
Mark Anwyl or Duncan Vasey

Threadneedle Communications                                                                   020 7653 9850
Laurence Read or Richard Gotla
CENTRAL ASIAN MINERALS AND RESOURCES PLC

Condensed Consolidated Statement of Comprehensive Income (unaudited)
for the six months ended 30 June 2011

                                                        6 months to         6 months to             Year to
                                                       30 June 2011        30 June 2010         31 Dec 2010
                                                        (unaudited)         (unaudited)           (audited)
                                                                USD                 USD                 USD

Revenue                                                      48,000             100,000             157,000

Administrative expenses                                 (1,770,940)           (326,284)         (1,205,038)
                                                             ------              ------              ------
Operating loss                                          (1,722,940)           (226,284)         (1,048,038)

Share of operating profit in joint venture                  247,778                   -                   -
Negative Goodwill arising on acquisition                    926,103                   -                   -
                                                             ------              ------              ------
Group operating loss                                      (549,059)           (226,284)         (1,048,038)

Interest receivable                                             542                   -                 612
Finance costs                                               (1,754)               (405)             (1,075)
                                                             ------              ------              ------
Loss on ordinary activities before tax                    (550,271)           (226,689)         (1,048,501)

Tax expense                                                       -                   -                   -
                                                             ------              ------              ------
Loss for the period and total
comprehensive loss for the period                         (550,271)           (226,689)          (1,048,51)
                                                             ------              ------              ------

Loss per share
Basic                                                        (0.09)              (0.13)              (0.41)
Diluted                                                      (0.09)              (0.13)              (0.41)
                                                             ------              ------              ------


All losses for the period are attributable to the equity shareholders of the company.
All operations are continuing operations.



CENTRAL ASIAN MINERALS AND RESOURCES PLC

Condensed Consolidated Statement of Financial Position (unaudited)
as at 30 June 2011

                                                              As at               As at
                                                       30 June 2011        30 June 2010         31 Dec 2010
                                                        (unaudited)         (unaudited)           (audited)
                                                                USD                 USD                 USD

ASSETS
Non-current assets
Property, plant and equipment                               268,470             475,036             300,080
Interest in joint venture:
Share of gross assets                                     7,219,550                   -                   -
Share of gross liabilities                              (1,873,971)                   -                   -
                                                             ------              ------              ------
                                                          5,345,579                   -                   -
                                                             ------              ------              ------
                                                          5,614,049             475,036             300,080
Current assets
Trade and other receivables                                 157,585              16,559             791,964
Cash and cash equivalents                                   555,634             291,145             498,485
                                                             ------              ------              ------
                                                            713,219             307,704           1,290,449
Current liabilities
Trade and other payables                                   (75,370)             (9,268)           (119,513)
                                                             ------              ------              ------
Net current assets                                          637,849             298,436           1,170,936
                                                             ------              ------              ------
NET ASSETS                                                6,251,898             773,472           1,471,016
                                                             ------              ------              ------

SHAREHOLDERS' EQUITY
Called up share capital - equity                                  -                   -                   -
Share premium account                                     7,881,733           1,031,224           2,550,580
Retained earnings                                       (1,629,835)           (257,752)         (1,079,564)
                                                             ------              ------              ------
TOTAL EQUITY                                              6,251,898             773,472           1,471,016
                                                             ------              ------              ------



CENTRAL ASIAN MINERALS AND RESOURCES PLC

Condensed Consolidated Statement of Cash Flows (unaudited)
for the six months ended 30 June 2011

                                                        6 months to         6 months to             Year to
                                                       30 June 2011        30 June 2010         31 Dec 2010
                                                        (unaudited)         (unaudited)           (audited)
                                                                USD                 USD                 USD

Operating loss                                            (549,059)           (226,284)         (1,048,038)
Depreciation of property, plant and equipment                31,610              25,033              47,381
Impairment of property, plant and equipment                       -                   -             152,609
Decrease/(increase) in trade and other receivables           21,539             310,379           (465,026)
(Decrease)/increase in trade and other payables            (44,143)           (490,731)           (380,487)
Negative goodwill on acquisition of subsidiary            (926,103)                   -                   -
                                                             ------              ------              ------
Cash flows from operating activities                    (1,466,156)           (381,603)         (1,693,561)
                                                             ------              ------              ------

Net cash from operating activities                      (1,466,156)           (381,603)         (1,693,561)

Cash flows from investing activities
Interest received                                               542                   -                 612
Interest paid                                               (1,754)               (405)             (1,075)
                                                             ------              ------              ------
Net cash from investing activities                          (1,212)               (405)               (463)

Cash flows from financing activities
Proceeds from issue of ordinary shares                    1,559,791             500,000           2,112,625
Expenses of issue of ordinary shares                       (35,274)                   -            (93,269)
                                                             ------              ------              ------
Net cash from financing activities                        1,524,517             500,000           2,019,356
                                                             ------              ------              ------
Increase in cash and cash equivalents                        57,149             117,992             325,332
                                                             ------              ------              ------

Cash and cash equivalents at start of period                498,485             173,153             173,153
Increase in cash and cash equivalents                        57,149             117,992             325,332
                                                             ------              ------              ------
Cash and cash equivalents at end of period                  555,634             291,145             498,485
                                                             ------              ------              ------




CENTRAL ASIAN MINERALS AND RESOURCES PLC

Condensed Consolidated Statement of Changes in Equity (unaudited)
for the six months ended 30 June 2011


                                          Share               Share            Retained
                                        capital             premium            earnings               Total
                                            USD                 USD                 USD                 USD


At 1 January 2009                             -                   -                   -                   -
Total comprehensive
loss for the year                             -                   -            (31,063)            (31,063)
Shares issued in the year                     -              31,154                   -              31,154
                                         ------              ------              ------              ------
At 31 December 2009                           -              31,154            (31,063)                  91
                                         ------              ------              ------              ------

Total comprehensive
loss for the period                           -                   -           (226,689)           (226,689)
Shares issued in the year                     -           1,000,070                   -           1,000,070
                                         ------              ------              ------              ------
At 30 June 2010                               -           1,031,224           (257,752)             773,472
                                         ------              ------              ------              ------

Total comprehensive
loss for the period                           -                   -           (821,812)           (821,812)
Shares issued in the year                     -           1,612,625                   -           1,612,625
Less expenses of issue                        -            (93,269)                   -            (93,269)
                                         ------              ------              ------              ------
At 31 December 2010                           -           2,550,580         (1,079,564)           1,471,016
                                         ------              ------              ------              ------

Total comprehensive
loss for the period                           -                   -         (1,476,374)         (1,476,374)
Shares issued in the year                     -           5,366,427                   -           5,366,427
Less expenses of issue                        -            (35,274)                   -            (35,274)
                                         ------              ------              ------              ------
At 30 June 2011                               -           7,881,733         (2,555,938)           5,325,795
                                         ------              ------              ------              ------






CENTRAL ASIAN MINERALS AND RESOURCES PLC

Notes to the Interim Financial Information (unaudited)
for the six months ended 30 June 2011



1.   Basis of preparation

     The  condensed consolidated financial information for the six months to 30 June 2011 and  30  June  2010
     does not constitute statutory accounts for the purposes of Section 434 of the Companies Act 2006 and has
     not  been  audited.  No  statutory  accounts for the period have been  delivered  to  the  Registrar  of
     Companies.
     
     The  condensed  financial information in respect of the year ended 31 December 2010  has  been  produced
     using  extracts from the statutory accounts from this period which has been reported on by the Company's
     auditor. The auditors' report was unqualified for this period.
     
     Central Asian Minerals and Resources plc is a public limited company incorporated and domiciled  in  the
     Isle  of Man. The principal activity of the company is the development and exploitation of the Aprelevka
     mine.   The  company's ordinary shares are traded on the PLUS market of the London  Stock  Exchange  plc
     ("PLUS").
     
     The registered office of the Company is at 34 North Quay, Douglas, Isle of Man, IM1 4LB.
     
     The  preparation of financial statements in conformity with IFRS requires the use of certain  critical
     accounting estimates. It also requires management to exercise its judgement in the process of applying
     the Company's accounting policies.

     The  financial  statements  have  been prepared under the historical cost  basis,  and  following  the
     implementation of IFRS, the Company's accounting policies have been consistently applied  to  all  the
     periods presented unless otherwise stated. The significant accounting policies are detailed below.


2.   Key accounting policies

     Basis of consolidation

     The financial information consolidates the Company and entities controlled by the Company. Control  is
     achieved  where  the Company has power to govern the financial and operating policies of  an  investee
     entity so as to obtain benefits from its activities.
     
     Business combinations where there is control are consolidated using the acquisition method.
     

     
     Interests in joint ventures
     
     A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic
     activity  that  is subject to joint control that is when the strategic financial and operating  policy
     decisions  relating to the activities of the joint venture require unanimous consent  of  the  parties
     sharing control.
     
     The  Group  reports its interests in joint ventures using the equity method of accounting. Under  this
     method  the  interest in the joint venture is carried in the consolidated balance  sheet  at  cost  as
     adjusted for the post-acquisition changes in the Group's share of the net assets of the venture,  less
     any  impairment  in the value of individual investments. Losses of a joint venture in  excess  of  the
     Group's  interest  in  that joint venture are not recognised unless the Group has  incurred  legal  or
     constructive obligations or made payments on behalf of the joint venture.
     
     Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable
     assets,  liabilities and contingent liabilities of the joint venture at the date  of  acquisition  are
     recognised as goodwill.
     
     The goodwill, if any, is included within the carrying value of the investment and is assessed annually
     as  part  of  the  investment. Any excess of the Group's share of net fair value of  the  identifiable
     assets,  liabilities and contingent liabilities over the cost of acquisition, after  reassessment,  is
     recognised immediately in the consolidated statement of comprehensive income.


    Foreign currencies
    
    The  financial  statements  have  been  presented in United  States  Dollars  which  is  the  Company's
    functional  currency.  Exchange differences arising on the settlement of  monetary  items  and  on  the
    retranslation  of monetary items are included in the Statement of Comprehensive Income  for  the  year.
    Exchange  differences  arising on the retranslation of non-monetary items carried  at  fair  value  are
    included  in the Statement of Comprehensive Income for the year except for the differences  arising  on
    the  retranslation  of non-monetary items in respect of which gains and losses are recognised  directly
    in  equity. For such non-monetary items, any exchange component of that gain or loss is also recognised
    directly in equity.
    

    Inventories
    
    Inventories  are  valued  at  the  lower of cost and net realisable  value.  Gold  on  hand  represents
    production  on hand after the smelting process. Due to the different nature of Aprelevka's  operations,
    gold  in  process for such operations represents either production in broken ore form, gold in  circuit
    or production from the time of placement on heap leach pads.
    
    Cost is determined on the following basis:
    
       *   Gold on hand and gold in process is valued using weighted average cost. Cost includes production,
           amortisation and related administration costs.
             
       *   Consumable stores are valued at weighted average cost, after appropriate provision for redundant
           and slow moving items.
             
       *   Net realisable value is determined by reference to relevant market prices.
             
    Revenue recognition
    
    Revenue  is  recognised  to  the extent that it is probable that economic benefits  will  flow  to  the
    Company  and  the  amount  can  be  reliably measured. Revenue is stated  at  the  fair  value  of  the
    consideration received or receivable.
    
    Revenue arising from gold and gold equivalent sales is recognised when sufficient risks and rewards  of
    ownership pass to the buyer. The price of gold and silver is determined by market forces.
    
    Revenue  from  services is recognised over the period the services are rendered and is accrued  in  the
    financial statements.
    


3.   Loss per share                                     6 months to         6 months to             Year to
                                                       30 June 2011        30 June 2010         31 Dec 2010
                                                        (unaudited)         (unaudited)           (audited)
                                                                USD                 USD                 USD
     Basic and diluted
     Loss attributable to ordinary shareholders           (550,271)           (226,689)         (1,048,501)
     Weighted average number of shares (number)           6,457,893           1,714,743           2,547,022
                                                             ------              ------              ------
     Basic and diluted loss per share (USD)                  (0.09)              (0.13)              (0.41)
                                                             ------              ------              ------




4.   Share capital                                      6 months to         6 months to             Year to
                                                       30 June 2011        30 June 2010         31 Dec 2010
                                                        (unaudited)         (unaudited)           (audited)
                                                                USD                 USD                 USD
     Authorised
     300,000,000 ordinary shares of nil par value                 -                   -                   -
                                                             ------              ------              ------

     Allotted, called up and fully paid
     9,971,705 ordinary shares of nil par value                   -                   -                   -
                                                             ------              ------              ------

     All  ordinary  shares  rank equally in respect of shareholders' rights. The following  allotments  were
     made during the period:
     
    *     5 March 2010 750,000 Ordinary Shares at 41.50p per share were issued on conversion of a loan note
    *     26 March 2010 750,000 Ordinary Shares at  41.50p per  share were  issued as consideration for the
          acquisition of certain mining equipment
    *     29 September 2010 1,854,754 Ordinary Shares at 55.00p per  share  were  issued  for  cash  with a
          warrant attached as detailed below
    *     25 March 2011 1,595,531  Ordinary  Shares  at 60.00p per share were issued for cash with a warrant
          attached as detailed below
    *     26 April 2001 4,188,087 Ordinary Shares at 55.00p per share  were  issued as consideration for the
          acquisition of the shares in Gulf International Minerals Limited
             
     At  31  December  2010, the Company had 1,854,754 warrants in issue entitling the  warrant  holders  to
     subscribe  for  1,854,754 ordinary shares at 75p per share. The warrants are exercisable  at  any  time
     before 17 September 2012.
     
     On  25 March 2011 a further 797,766 warrants were issued entitling the warrant holders to subscribe for
     797,766  ordinary shares at 75p per share. The warrants are exercisable at any time before 27 September
     2012.
     
     On  26 April 2011 a further 99,093 warrants were issued entitling the warrant holders to subscribe  for
     99,093  ordinary  shares at 55p per share. The warrants are exercisable at any  time  before  26  April
     2016.
     

5.   Subsequent events

     On  26  August  2011  the  Company issued a further 6,734,008 ordinary  shares  for  net  proceeds  of
     GBP4,377,105 and a further 6,734,008 warrants entitling the warrant holders to subscribe for 6,734,008
     ordinary shares at 65p per share. The warrants are exercisable at any time before 30 June 2014.

Contact Information

  • Central Asian Minerals and Resources PLC