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
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,
Stockholm, August 29, 2019
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,
Outstanding shares: 103,825,869
Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") publicerar härmed en operationell uppdatering för andra kvartalet 2021. Produktionen av guldekvivalenter ("GE"*) ökade med 69% jämfört med första kvartalet 2021. Produktionsguidningen för 2021 är oförändrad. Covid-19 fortsatte att påverka guldproduktionen huvudsakligen till följd av brist på kvalificerad gruvpersonal.
Årsstämman i Kopy Goldfields AB (publ), ("Kopy" eller "Bolaget") hölls idag den 27 maj 2021 varvid aktieägarna fattade följande beslut.
The annual general meeting of Kopy Goldfields AB (publ), ("Kopy" or the "Company") was held today on 27 May 2021 and the following resolutions were passed by the meeting.
Januari-mars 2021 (januari-mars 2020)
- Intäkter 19 362 TUSD (23 125), -16 %
- EBITDA 7 181 TUSD (9 277), -23 %
- Resultat före skatt 10 014 TUSD (5 012), +100 %
- Periodens resultat 7 870 TUSD (3 926), +100 %
- Resultat per aktie före utspädning 0,01 USD (0,01)
- Produktionen påverkades av konsekvenserna av covid-19-utbrottet vid Yubileyniy-gruvan i december 2020.
- 2021 års estimat för guldproduktionen på 56-59 koz oförändrat
January - March 2021 (January - March 2020)
- Revenue TUSD 19,362 (23,125), -16%
- EBITDA TUSD 7,181 (9,277), -23%
- Profit before tax TUSD 10,014 (5,012), +100%
- Profit for the period TUSD 7,870 (3,926), +100%
- Earnings per share before dilution USD 0.01 (0.01)
- Production affected by consequences of the outbreak of Covid-19 at the Yubileyniy mine in December 2020.
- 2021 gold production guidance of 56-59 koz unchanged
Kopy Goldfields AB (publ) publicerar kvartalsrapporten för första kvartalet 2021 torsdagen den 27 maj 2021 kl. 08:00. Kopy Goldfields inbjuder till en webbsänd telefonkonferens samma dag kl 10.00 där VD Mikhail Damrin och CFO Tim Carlsson presenterar och kommenterar rapporten.
Kopy Goldfields AB (publ) will publish the interim report for the first quarter 2021 on Thursday 27 May 2021 at 8:00 am (CEST). Kopy Goldfields has scheduled a webcasted conference call the same day at 10.00 CEST. CEO Mikhail Damrin and CFO Tim Carlsson will present and comment on the report.
Aktieägarna i Kopy Goldfields AB (publ), org.nr 556723-6335, ("Bolaget") kallas härmed till årsstämma torsdag den 27 maj 2021.
The shareholders of Kopy Goldfields AB (publ), reg. no. 556723-6335, (the "Company") are hereby invited to the annual general meeting on Thursday 27 May 2021.
Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") publicerar härmed en operationell uppdatering för första kvartalet 2021. Covid-19-utbrottet i december 2020 påverkade guldproduktionen i början av 2021, vilket tidigare redovisats. Bolaget har emellertid tryggat säkerheten för sin personal mot pandemin och guldproduktionen har återhämtat sig under kvartalet. Produktionsestimatet för 2021 är oförändrat.
Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") hereby announces an operational update for the first quarter 2021. As previously disclosed, the outbreak of COVID-19 in December 2020 affected the gold production in early 2021. However, the Company has secured the safety of its personnel against the pandemic and gold production has been recovering during the quarter. The 2021 production guidance is unchanged.
De konsoliderade finansiella räkenskaperna för Kopy Goldfields Koncernen ("Kopy Goldfields", "Bolaget"), för vilken Kopy Goldfields AB (publ) med organisationsnummer 556723-6335 är moderbolaget ("Moderbolaget"), redovisas här för det helår som avslutades den 31 december 2020. Efter transaktionen med Amur Zoloto har Kopy Goldfileds valt att byta rapporteringsvaluta från svenska kronor (SEK) till amerikanska dollar (USD). I enlighet med den svenska bokföringslagen redovisas moderbolagets finansiella information i SEK och inte koncernens rapporteringsvaluta som är USD.
The consolidated financial statements of the Kopy Goldfields Group ("Kopy Goldfields", "the Company"), of which Kopy Goldfields AB (publ) with corporate identity number 556723-6335 is the parent company ("the Parent Company"), are hereby presented for the full-year period ended on 31 December 2020. Following the transaction with Amur Zoloto, Kopy Goldfields has chosen to change the presentation currency from Swedish krona (SEK) to US dollars (USD). In accordance with the Swedish Accounting Act, the Parent Company's financial information is reported in SEK and not the Group's presentation currency of USD.
Kopy Goldfields AB (publ) kommer att publicera sin bokslutskommuniké för 2020 den 25 mars 2021 kl. 08:00 (CET). Bokslutskommunikén är den första konsoliderade finansiella rapporten sedan samgåendet av Kopy Goldfields och Amur Zoloto förra året. Investerare, kapitalförvaltare, aktieanalytiker, media och andra intresserade välkomnas att delta i konferensen där VD Mikhail Damrin och CFO Tim Carlsson presenterar och kommenterar på rapporten.
On 25 March 2021 at 8:00 am (CET), Kopy Goldfields AB (publ) will publish the 2020 Year End Report. The report is the first consolidated financial report after the merger between Kopy Goldfields and Amur Zoloto conducted last year. Accordingly, investors, asset managers, financial analysts and the press are invited to a presentation where CEO Mikhail Damrin and CFO Tim Carlsson will present and comment on the report.
INSIDERINFORMATION: Kopy Goldfields AB (publ) ("Kopy Goldfields" eller "Bolaget") har som mål att producera 56 koz till 59 koz guldekvivalenter (GE) under 2021, en ökning med 5-11 % jämfört med 53,1 koz GE som producerades 2020. Bolaget planerar investeringar på cirka 56 miljoner USD under 2021 i projekt för produktionstillväxt och prospektering. Utgifterna kommer att finansieras genom befintliga lånefaciliteter och förväntat kassaflöde från produktionen.
INSIDE INFORMATION: Kopy Goldfields AB's (publ) ("Kopy Goldfields" or "the Company") target is to produce 56 koz to 59 koz of gold equivalent (GE) in 2021, an increase of 5-11% compared to 53.1 koz of GE produced in 2020. The Company plans capital expenditures of around USD 56 million in 2021 on production growth and exploration projects. The expenditures will be funded through existing available debt facilities and expected cash flow from production.
Kopy Goldfields AB