KOPY GOLDFIELDS AB (publ) Half Year Report January - June 2019

Financial information half year 2019

  • The Company does not report any revenue
  • Income from sale of the Kopylovskoye project MSEK 2.9 (0)
  • Net income MSEK -0.6 (-9.3)
  • Total comprehensive income MSEK 2.9 (-4.3)
  • Earnings per share before and after dilution SEK -0.01 (-0.11)
  • Total cash flow MSEK -8.7 (8.0), including paid interest of MSEK -2.8 (0) and new loans MSEK 0 (15)
  • Investments in exploration work and licenses MSEK 0 (0.9)
  • Investments into joint ventures MSEK 0 (0)
  • Cash and cash equivalents amounted to MSEK 11.4 (13.8) at period end

Significant events January - June 2019

Existing long-term loans were renegotiated and extended in March 2019

  • As per year end 2018, the Company held two loans of SEK 15 million each, granted by Scandinavian Credit Fund I AB, originally due for repayment on July 7, 2019 and March 3, 2020.
  • In March 2019, the loans were merged into one loan of SEK 30 million and accumulated interest of SEK 2.8 million was paid.
  • New repayment date is set to March 4, 2021 and the loan bears an annual interest rate of 11.75 percent and no arrangement fees.

In April 2019, a new exploration property to the Maly Patom project was acquired by the Company

  • The new exploration license, called Polovinka, is bordering the Gorbylyakh license area, which is part of the Maly Patom exploration project.
  • The new property covers an area of 88 sq. km and provides the right for bedrock gold prospecting and exploration for seven years.
  • The license was issued by the Russian State Federal authorities on a "first come, first served" basis with no upfront payment. If gold is discovered within the license area, Kopy Goldfields is entitled to a priority production permit for the area.
  • The license is 100% controlled via the fully owned Russian subsidiary LLC Patom Gold.

In June 2019, a new scoping study for the Krasny project was published

  • The Scoping study was developed by AMC Consultants Pty Ltd from Perth, Australia, which has a strong expertise for Lena Goldfeilds area by working for Poluys Gold's local projects. The scoping study was based on the most recent gold resource estimation in accordance with the JORC from 2018.
  • The study provides several production scenarios for developing the Krasny project, all with positive NPV.
  • The recommended production option for Kopy Goldfields, providing the highest internal rate of return (IRR), uses an annual 1 million tonne plant throughput rate and a combined open pit and underground mine at the Krasny deposit in combination with an open pit mine at the Vostochny mineralization.
  • The recommended option returns a Pre-tax NPV of USD 90 to 104 million at 6% discount rate and pre-tax IRR of 20% to 26%, using a gold price of 1,300 USD/oz

Significant events after the reporting period

An exploration program was initiated on the Maly Patom project in the summer 2019

  • The exploration program at Maly Patom exploration project will target gold discoveries at 1-3 previously identified gold anomalies
  • The exploration program will include core drilling, trench sampling, logging and assay testing.
  • The drilling will commence within the Gorbylyakh license area. Explorations will start with trench sampling to better understand the geometry of gold mineralization.
  • The follow up drilling program will preliminary include drilling of several holes to the depth of 80-100 meters within drill profiles located 160-200 meters apart within identified mineralized area.

In July 2019, the Company paid a contribution to the Krasny JV to defend it's 49% stake in Krasny project

  • During the summer 2018, Kopy Goldfields and GV Gold agreed to invest totally USD 2.3 million into the Krasny project to support sales activities, the 2018 exploration and other value adding activities. GV Gold paid its part in full during 2018, while Kopy Goldfields, after the finalization of the 2018 share issue, paid USD 559 thousand in November 2018 and the rest, amounting to USD 599 thousand including accumulated interest, was due for payment in July 2019.

Comments from the CEO

Dear shareholders,

During the first part of 2019, many activities have been going on behind the scenes. Our main project is Krasny, and of course, most of the work has been focused on this project, but in parallel, we are preparing our Company for further growth. We acquired new licenses and we initiated an exploration program in Maly Patom (Northern Territories).

To support the Krasny sales process, we assigned AMC Consultants Pty Ltd from Perth, Australia to do a scoping study for the project. The scoping study was published during the spring and provided several production scenarios for developing the Krasny project, all with positive NPV. The recommended production option for Kopy Goldfields, providing the highest internal rate of return (IRR) but not the highest NPV for the investments, shows a pre-tax NPV of USD 90 to 104 million at a 6% discount rate and pre-tax IRR of 20% to 26%, using a gold price of 1,300 USD/oz. We see that this scoping study provides both a valuation benchmark for the project and several potential mine development alternatives. The study is based on the most recent gold resource estimation from 2018 and it comes as the fourth report of similar studies. All studies have returned positive NPV results for the project.

We have approached many mining companies and investors with Krasny and we do appreciate that Krasny is not a "simple" project and it would require further drilling and various studies to be completed before it is ready for mine construction and production. Many investors are looking for "ready to mine" gold reserves but there are no simple projects in the gold mining industry nowadays. The worldwide market for gold mining projects above 1 Moz is very limited and it is getting more and more scarce every year. We notice an increase in M&A activity in the Russian gold mining industry with several significant transactions reported during the first half of 2019. With the rising gold prices of 2019, we are not interested in divesting Krasny at just any price since we wish to realize the best possible value of the project.

In 2018, we sold our Kopylovskoye project with payment terms through 2021. The total sale price amounts to USD 6 million with a potential reduction to USD 5 million if all payments are made before the end of 2020. We are closely following the buyer's process of prolonging the license terms and preparation for production. So far, the process appears to be on track so we expect to receive the future payments as agreed. The expected payments are discounted by the end of each reporting period, and as per June 30, 2019, profit and loss shows income of SEK 2.9 million from the Kopylovskoye sale.

Lena Goldfields is an exciting gold mining and exploration region. The area is currently producing some 0.5% of the annual global gold output. With the announced start of the Sukhoy Log mine in the mid-2020s, the gold production from the area will increase to 2% of global output. Kopy Goldfields currently has a land position corresponding to 28% of the total gold properties in the area, which makes us one of three major players. Following the completed sale of the Kopylovskoye project and the targeted exit from Krasny, our next project to develop will be the Maly Patom (Northern Territories) project, which we believe is likely to contain good discoveries. We are working on strengthening the Maly Patom project this year to prepare for further growth of the Company.

In April 2019, we completed the acquisition of a new exploration property called "Polovinka", which extended the Maly Patom project by 88 sq.km. The license entitles us to prospect and explore for bedrock gold for seven years and the area of the new license covers the likely extension of the previously identified soil geochemical gold anomaly located within one of our already owned Maly Patom licenses. In August 2019, we commenced a drilling program at Maly Patom. The exploration program targets gold discoveries at previously identified gold anomalies and will focus on one to three previously identified targets. It will include core drilling, trench sampling, logging and assay testing. We are excited about this new exploration program and will provide regular updates and exploration results during the autumn.

We welcome all our existing shareholders and new investors to follow Kopy Goldfields development in 2019. We foresee a very interesting and exciting period ahead with a new exploration program, an ongoing sale process and an increasing gold price.

With kind regards,

Mikhail Damrin

Stockholm, August 29, 2019

For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com
Tim Carlsson, CFO, + 46 702 31 87 01, tim.carlsson@kopygoldfields.com

This information is information that Kopy Goldfields AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 CEST on August 29, 2019.

About Kopy Goldfields AB

Kopy Goldfields AB (publ), listed on NASDAQ First North in Stockholm, is a Swedish gold exploration company operating in the Irkutsk and Amur regions of Russia, which are two of the most gold rich areas in the world. The Company currently holds 15 licenses, grouped into four projects, which entitle the holder to explore for and produce gold. Kopy Goldfield's strategy is to create value by identifying and acquiring high potential gold projects, and then prospecting and exploring them until they reach the stage of being ready to be sold for cash or further developed in cooperation with a partner.

Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Hagberg & Aneborn Fondkommission acts as Certified Adviser, contact number: +46 8 408 933 50,
e-mail: info@hagberganeborn.se

The Share
Ticker: KOPY
http://www.nasdaqomxnordic.com/shares/microsite?Instrument=SSE77457
Outstanding shares: 103,825,869

Bokslutskommuniké januari - december 2019

Finansiell information för andra halvåret samt helåret 2019

  • Bolaget rapporterar ingen omsättning
  • Intäkter från försäljningen av Kopylovskoye-projektet 3,4 MSEK (-20,4), för helåret 6,4 MSEK (-20,4)
  • Resultat efter skatt -3,1 MSEK (-34,7), för helåret -3,7 MSEK (-44,0)
  • Summa totalresultat -9,3 MSEK (-0,9), för helåret -6,4 MSEK (-5,2)
  • Resultat per aktie före och efter utspädning -0,03 SEK (-0,40), för helåret -0,04 SEK (-0,52)
  • Periodens kassaflöde uppgick till -5,0 MSEK (6,3), för helåret -13,8 MSEK (14,2)
  • Investeringar i prospektering och licenser 6,0 MSEK (1,6), för helåret 6,0 MSEK (2,5)
  • Investeringar i joint venture 5,7 MSEK (5,1), för helåret 5,7 (5,1)
  • Likvida medel vid periodens utgång uppgick till 6,3 MSEK (20,1)
  • Styrelsen föreslår att ingen utdelning lämnas

Year End Report January - December 2019

Financial information July - December and full year 2019

  • The Company does not report any revenue
  • Income from sale of the Kopylovskoye project MSEK 3.4 (-20.4), full year MSEK 6.4 (-20.4)
  • Net income MSEK -3.1 (-34.7), full year -3.7 (-44.0)
  • Total comprehensive income MSEK -9.3 (-0.9), full year -6.4 (-5.2)
  • Earnings per share before and after dilution SEK -0.03 (-0.40), full year -0.04 (-0.52)
  • Total cash flow of MSEK -5,0 (6.3), full year -13,8 (14.2)
  • Investments in exploration work and licenses MSEK 6.0 (1.6), full year 6.0 (2.5)
  • Investments into joint ventures MSEK 5.7 (5.1), full year 5.7 (5.1)
  • Cash and cash equivalents amounted to MSEK 6.3 (20.1) at period end
  • The Board of Directors proposes that no dividend is paid

Kopy Goldfields participates in the PDAC 2020 conference

Kopy Goldfields is attending the PDAC 2020 conference in Toronto on March 1-4, 2020. The Company will be represented by Mikhail Damrin, CEO, and Tim Carlsson, CFO, who welcome all visitors to booth 2302.


Prospekteringsprojektet Maly Patom ("Norra territoriet") - flera guldanomalier och sulfidmineraliseringar upptäckta

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") har slutfört 2019 års prospekteringsprogram på Maly Patom-projektet ("Norra territoriet" eller "NT"). Flera guldanomalier upptäcktes, dock ännu inga med kommersiella guldhalter. Flera sulfidmineraliseringar identifierades och bekräftar att området har en stark prospekteringspotential. Resultatet bekräftar att det är möjligt att uppnå det långsiktiga målet om att göra en eller flera upptäckter om +1 Moz inom Maly Patom-licenserna.


Maly Patom ("Northern Territories") exploration project - several gold anomalous areas and sulfide mineralizations discovered

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") completed its 2019 exploration program at the Maly Patom ("Northern Territories" or "NT") project. Several gold anomalous areas were discovered, however not yet with commercial gold grades. Multiple sulfide mineralizations were identified confirming strong exploration potential of the area. The results confirm that the long-term target of making one or several +1 Moz discoveries within the Maly Patom licenses is achievable.


Fältarbetet avslutat vid Maly Patom-projektet

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") har framgångsrikt genomfört det fältarbete som planerats för 2019 vid prospekteringsprojektet Maly Patom ("Northern Territories" eller "NT").


Field operations completed at the Maly Patom project

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") has successfully completed all the planned scope of 2019 field operations for the Maly Patom ("Northern Territories" or "NT") exploration project.


Kopy Goldfields participates and speaks at the Minex Russia 2019 show

Kopy Goldfields will participate in the "MINEX Russia Mining and Exploration Forum", which will take place in Moscow on 9-10 October 2019 under the theme of "Foresight of the Russian Mining and Exploration Industry Development". During the show, we will present our company and projects for investors, potential partners and other stakeholders in one of the largest mining events in Russia.


De första hålen borrade i Maly Patom projektet

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") har påbörjat ett borrprogram vid prospekteringsprojektet Maly Patom ("Northern Territories" eller "NT"). Prospekteringsprogrammet syftar till att upptäcka guld inom en till tre tidigare identifierade guldanomalier. Hittills har sex hål borrats. Sulfidmineralisering har identifierats i flera prover och två prover innehåller synliga guldkorn.


First holes drilled at the Maly Patom project

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") commenced a drilling program at the Maly Patom ("Northern Territories" or "NT") exploration project. The exploration program targets gold discoveries at one to three previously identified gold anomalies and so far, six holes have been drilled with sulfide mineralization identified in several samples and two samples containing visible gold grains.


Kopy Goldfields säkerställer ny finansiering om 15 MSEK

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") är glada att kunna tillkännage att ett nytt lån om 15 miljoner kronor har beviljats från Scandinavian Credit Fund I AB med avsikt att finansiera Bolagets verksamhet, inklusive det pågående prospekteringsprogrammet på Maly Patom-projektet. Samtidigt har också det befintliga långfristiga lånet om 30 miljoner kronor omförhandlats och förlängts. Ny förfallodag är 13 september 2022.


Kopy Goldfields secures new financing of MSEK 15

Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") is happy to announce that a new loan of SEK 15 million has been granted from Scandinavian Credit Fund I AB for the purpose of financing the Company's operations, including the current Maly Patom exploration program. At the same time, the existing long-term loan of SEK 30 million was renegotiated and extended. The new repayment date is September 13, 2022.


KOPY GOLDFIELDS AB (publ) Delårsrapport januari-juni 2019

Finansiell information för första halvåret 2019

  • Bolaget rapporterar ingen omsättning
  • Intäkter från försäljningen av Kopylovskoye-projektet 2,9 MSEK (0)
  • Resultat efter skatt -0,6 MSEK (-9,3)
  • Summa totalresultat 2,9 MSEK (-4,3)
  • Resultat per aktie före och efter utspädning -0,01 SEK (-0,11)
  • Periodens kassaflöde uppgick till -8,7 MSEK (8,0), inklusive betalda räntor -2,8 MSEK (0) och upptagna lån 0 MSEK (15)
  • Investeringar i prospektering och licenser 0 MSEK (0,9)
  • Investeringar i joint venture 0 MSEK (0)
  • Likvida medel vid periodens utgång uppgick till 11,4 MSEK (13,8)

KOPY GOLDFIELDS AB (publ) Half Year Report January - June 2019

Financial information half year 2019

  • The Company does not report any revenue
  • Income from sale of the Kopylovskoye project MSEK 2.9 (0)
  • Net income MSEK -0.6 (-9.3)
  • Total comprehensive income MSEK 2.9 (-4.3)
  • Earnings per share before and after dilution SEK -0.01 (-0.11)
  • Total cash flow MSEK -8.7 (8.0), including paid interest of MSEK -2.8 (0) and new loans MSEK 0 (15)
  • Investments in exploration work and licenses MSEK 0 (0.9)
  • Investments into joint ventures MSEK 0 (0)
  • Cash and cash equivalents amounted to MSEK 11.4 (13.8) at period end

Kopy Goldfields påbörjar borrprogram i Maly Patom-projektet ("Norra Territoriet")

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") påbörjar ett borrprogram vid prospekteringsprojektet Maly Patom ("Norra Territoriet" eller "NT") som inriktar sig på guldfyndigheter vid en till tre tidigare identifierade guldanomalier.


Kopy Goldfields commences drilling program at the Maly Patom ("Northern Territories") project

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") is commencing a drilling program at the Maly Patom ("Northern Territories" or "NT") exploration project targeting gold discoveries at one to three previously identified gold anomalies.


Nettonuvärdet (NPV) för Krasny varierar mellan 100 och 300 MUSD före skatt enligt ny preliminär förstudie

Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") är glada att kunna presentera nya positiva resultat från den oberoende preliminära förstudien (eng: "scoping study") avseende företagets andel på 49 % i guldprojektet Krasny, som ligger i Irkutsk-regionen i Ryssland. Den preliminära förstudien, utförd av AMC Consultants Pty Ltd i Perth, Australien (AMC), omfattar flera produktionsscenarier för att utveckla Krasny-projektet, antingen som ett rent dagbrott eller som en kombination av dagbrott och underjordsgruva, med en årlig bearbetningskapacitet mellan 0,4 Mt (miljoner ton) och 3 Mt. Alla scenarier ger positiva NPV före tillämpning av potentiella skatteförmåner.


Net present value (NPV) for Krasny varies from MUSD 100 to MUSD 300 pre-tax according to new Scoping study

Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") is pleased to announce new positive results from the independent scoping study for its 49% stake in the Krasny gold project, located in the Irkutsk region of Russia. The scoping study, performed by AMC Consultants Pty Ltd from Perth, Australia (AMC), provides several production scenarios for developing the Krasny project either as an open pit alone, or combined open pit and underground mine, with annual processing plant throughput capacities varying from 0.4 Mt to 3 Mt. All scenarios would return positive NPVs before application of potential tax benefits.


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