HALF YEAR RESULTS TO 30 JUNE 2009
(Thomson Reuters ONE) - Chaarat Gold Holdings Ltd HALF YEAR RESULTS TO 30 JUNE 2009Chaarat Gold Holdings (AIM: CGH) ("Chaarat" or "the Company) today announces itshalf-year financial results for the six months ended 30 June 2009.Highlights * Significant progress made in the field with exploration work focused on the C4600-C5300 projects * Additional drilling results now being interpreted * Prefeasibility study on schedule for completion during H1 2010 * Successful £2.1m fundraising completed in May * £5.6m investment by China Nonferrous Metals International Mining Company Limited ("CNMIM") announced in July - regulatory approval from Chinese Government expected to be received in the next few weeks.Dekel Golan CEO comments: "2009 has seen a number of significant developments forthe company. We look forward to working with CNMIM once all the necessary Chineseapprovals are received. The results from the drilling during the current seasoncontinue to be positive and indicate both an increased resource and heighten themineability of the Chaarat deposit. We also look forward to announcing thecompletion of our Prefeasibility Study before the end of H1 2010. Our hostcountry, the Kyrgyz Republic, continues to improve its support of the miningindustry with Centerra and now Gold Fields, present in the country."Enquiries:Chaarat Gold Holdings Ltd: +44 (0) 20 7499 2612Dekel Golan dekel(at)chaarat.comLinda Naylor linda.naylor(at)chaarat.comCanaccord Adams Limited: +44 (0) 20 7050 6500Mike Jones mike.jones(at)canaccordadams.comSmiths Corporate Advisory: +44 (0) 20 7239 0140Dominic Palmer-Tomkinson tomkinson(at)smiths-ca.comConduit PR +44 (0) 20 7429 6607Edward Portman ed(at)conduitpr.comLeesa Peters leesa(at)conduitpr.comDisclaimerThis press release includes forward-looking statements. Such forward-lookingstatements involve known and unknown risks, uncertainties and other importantfactors beyond Chaarat's control that would cause the actual results, performanceor achievements of Chaarat to be materially different from future results,performance or achievements expressed or implied by such forward-lookingstatements. Such forward-looking statements are based on numerous assumptionsregarding Chaarat's present and future business strategies and the environment inwhich Chaarat will operate in the future. Any forward-looking statements speak onlyas at the date of this document. Chaarat expressly disclaims any obligation orundertaking to disseminate any updates or revisions to any forward-lookingstatements contained in this document to reflect any change in Chaarat'sexpectations with regard to these or any change in events, conditions orcircumstances on which any such statements are based. As a result of these factors,the events described in the forward-looking statements in this press release maynot occur either partially or at all.Chief Executive's ReportI am pleased to present Chaarat Gold's Half Year Results for the six months to 30June 2009.The first six months of the year are a quiet period typically dedicated toanalysing the results of the last exploration season and raising funds for thenext. On both fronts significant progress has been achieved.Fund raisingThe Chaarat share price has doubled since the lows to which it had fallen followingthe forced sale by one of our shareholders, itself a victim of the global financialcrisis. In order to minimise dilution it was agreed by the Board to carry out, asan interim measure, a very small fund raising in May 2009 to raise £2.1 million,most of which was subscribed to by existing shareholders. To complement that, wehave reached an agreement with a large Chinese company to invest £5.6 million inChaarat, at a significant premium to the share price, subject only to Chinesegovernment approval anticipated to be received in the next few weeks. Both theinvestor, China Nonferrous Metals International Mining Company Limited, and Chaaratwill benefit from this arrangement; for CNMIN, it gives them exposure to aprospective gold asset in a region they understand well, while for Chaarat italleviates any further funding requirements until the beginning of 2011 as well asbringing regional support, contacts and knowledge which are critical to a juniorminer in Kyrgyzstan. Being a state enterprise CNMIM has now submitted applicationsfor the necessary governmental approvals for the deal and we expect approval duringthe next few weeks.The investment by CNMIM ensures that Chaarat will have enough money to take theproperty through to feasibility study, if we decide so to do. The Companycontinues to investigate means of improving liquidity, and coupled with ouroperational development, it is hoped this may result in the share price betterreflecting the value of the underlying asset.The results for the half year reflect the reduction in exploration expenditure asthe operating loss for the six months to 30 June 2009 was $2.86m compared to $4.72mfor the six month period to 30 June 2008.KyrgyzstanThere have been significant and positive developments in our host country, theKyrgyz Republic, during the six month period. Centerra and the Kyrgyz governmentreached agreement regarding the ownership and profit sharing of the Kumtor goldmine. Another mining dispute which damaged perceptions of the country involvedAurum Mining, but a civil case which involved its subsidiary has now beensuccessfully resolved.The careful balancing act of the Kyrgyz government in keeping both the Russian aswell as the US military air bases in the country reflects an ability to govern andget things done. The election on 23 July returned the incumbent President topower. Whilst concerns have been raised over the electoral process, stability hasbeen maintained and indications are that the country is continuing its attempts toopen up to foreign investment.In another positive sign, EBRD has invested over ?175 million in more than 50projects in the infrastructure, corporate, energy and financial sectors of theKyrgyz Republic since the beginning of its operations there.Gold Fields, the world's fourth largest gold producer, farmed in to a large, albeitlow grade, project. The presence of two majors, Gold Fields and Centerra, isdefinitely positive news for the mining industry in the Kyrgyz Republic. Both ofthese moves are important in terms of raising the profile of the country as acredible mining jurisdiction.GeologyCharacteristically, due to weather factors, the first six months of the year seeless by way of exploration activity and a greater concentration on consolidatingdata from the previous drilling season and preparing the programme for the June toNovember period.The resource calculation prepared by SRK of Johannesburg resulted in a JORCcompliant resource of 3.34 million ounces of gold at an average grade of 4.3 g/t.What has become clear is that certain areas hold very considerable potential, notonly in terms of increasing overall resources but, more importantly, in heighteningthe mineability of Chaarat as a deposit. Such is the area between Projects C5300,where the adit penetrates mineralization of 22.45m in true width at a grade of5.78g/t Au and C4600, where the last hole drilled during 2008 returned 17.97 metresof true width at a grade of 6.21g/t Au. The 640 metres of strike between those twopoints, which has been confirmed by additional drilling, has thrown up a verysignificant opportunity which we now intend to explore. There are grounds forthinking that this large area of mineralization is open on both sides as well asdown dip.The interpretation that has been developed from the data on the T0700 project atTulkubash, which is located approximately 4600m from the adit at C5300, alsosuggests a similar significance in its potential. Not only is it a highlyprospective target in its own right but, should it meet our hopes, we believe thatthe depths there could lend itself to open cut development.Prefeasibility studyProgress is ongoing on the preparation of the prefeasibility study, now scheduledfor completion during the first half of 2010, to enable us to include the currentseason's exploration results and the new resource calculation. A decision has beentaken to suspend work on mine modelling until the end of the season when it ishoped more hardened data from exploration will become available. Work ongeo-technological issues and the development of a metallurgical process is,however, going ahead as planned.CNMIM DealChina Nonferrous Metals International Mining Co. Limited (www.cnmim.com) is asubsidiary of a large Chinese state entity China Nonferrous Metal Mining (Group) CoLtd (www.cnmc.com.cn). In discussion with a number of companies, it became clear tous that the opportunity to source engineering work, contractors, equipment andproject finance from China is tremendous. It also became clear that Chineseindustry is keen to have access to projects either by way of acquiring them or viaother forms of investment. Following meetings with a number of companies we came tothe conclusion that introducing a Chinese shareholder to the company will behelpful in accessing the Chinese markets in terms of services and procurement aswell as having exposure to a Chinese company which may have an ultimate interest ineither acquiring Chaarat or working with the company in a manner that deliversvalue both to itself and to other shareholders.CNMIM will join Chaarat as a shareholder and will nominate two directors to theChaarat Board. We believe that they recognise the value of Chaarat and see it as aproject that can either be successfully brought to fruition through their owninvolvement or, through corporate activity, worked to their advantage in some otherway. For shareholders we retain flexibility and a position in which a number ofdifferent options can still be pursued.DirectorsStuart Comline, who has been with us since early 2007, left the board to focus onother opportunities. Stuart will continue to advise the board on areas of hisexpertise and the Board will continue to benefit from his experience, wisdom,knowledge and great common sense. We wish to thank Stuart for his contribution.Linda Naylor joined the company as Finance Director. Linda was an audit partnerwith Grant Thornton and has experience and knowledge of the resource sector.Dekel GolanChief Executive OfficerThe Competent Person with overall responsibility and who has reviewed theinformation in this press release is Mr. Sunit Patel, M.Sc. (Geology), FGS, GSSA,who is an employee of Chaarat Gold. Mr. Patel is an exploration geologist with 21years of experience in the resource industry who has sufficient experience relevantto the style of mineralisation and type of deposit under consideration and wassupervisor of the work which is the subject of this release.Consolidated income statementFor the six months ended 30 June 6 months to 6 months to 12 months to 30 June 30 June 31 December 2009 2008 2008 (unaudited) (unaudited) (audited) Note USD USD USDExploration expenses (1,512,461) (2,997,849) (8,244,068)Administrative expenses (932,472) (1,381,708) (2,461,734)Share options expense 5 (385,189) (357,598) (752,345)Other operating expenses (33,524) 14,569 (34,998)Operating loss (2,863,646) (4,722,586) (11,493,145)Financial expense - (247,475) (645,972)Financial income 106,880 178,239 226,753Loss for the period, attributable toequity shareholders of the Parent (2,756,766) (4,791,822) (11,912,364 )Loss per share (basic and diluted) - USDcents 2 (0.04)c (6.67)c (16.57)cAll amounts relate to continuing activities.Consolidated statement of comprehensiveincome and expenseFor the six months ended 30 June 6 months to 6 months to 12 months to 30 June 30 June 31 December 2009 2008 2008 (unaudited) (unaudited) (audited) USD USD USDLoss for the period, attributable toequity shareholders of the Parent (2,756,766) (4,791,822) (11,912,364 )Other comprehensive income:Exchange differences on translatingforeign operations (64,874) (13,357) (187,829)Total comprehensive income for theperiod (2,821,640) (4,805,179) (12,100,193)Consolidated balance sheetAt 30 June 30 June 30 June 31 December 2009 2008 2008 (unaudited) (unaudited) (audited) USD USD USDAssetsNon-current assetsIntangible assets 73,470 25,628 99,473Property, plant and equipment 1,667,202 2,064,833 2,022,414Other receivables - 38,388 - 1,740,672 2,128,849 2,121,887Current assetsInventories 27,057 294,167 59,587Trade and other receivables 212,876 1,706,812 434,610Cash and cash equivalents 2,850,852 7,004,269 1,375,445 3,090,785 9,005,248 1,869,642Assets held for sale - - 39,562 3,090,785 9,005,248 1,909,204Total assets 4,831,457 11,134,097 4,031,091Liabilities and equityEquity attributable to shareholdersShare capital 911,780 718,834 718,834Share premium 18,700,475 15,665,928 15,665,928Other reserves 12,162,011 11,405,955 11,782,189Foreign currency reserve (660,762) (421,416) (595,888)Retained losses (26,641,110) (16,787,682) (23,889,711) 4,472,394 10,581,619 3,681,352Current liabilitiesTrade payables 127,911 481,972 69,525Accrued liabilities 231,152 70,506 280,214 359,063 552,478 349,739Total liabilities and equity 4,831,457 11,134,097 4,031,091Consolidated cash flow statementFor the 6 months ended 30 June 6 months to 6 months to 12 months to 30 June 30 June 31 December 2009 2008 2008 (unaudited) (unaudited) (audited) USD USD USDOperating activitiesLoss for the period before and after tax (2,756,766) (4,791,822) (11,912,364)Adjustments:Amortisation expense - intangible assets 26,003 2,671 21,791Depreciation expense - property plant and 313,075 256,757 613,029equipmentLoss on disposal of property plant and 34,864 5,838 19,701EquipmentFinance income (4,883) (179,498) (226,753)Share based payments 385,189 357,598 752,345Foreign exchange (174,477) 247,475 618,990Decrease/(Increase) in inventories (24,012) 181,679 416,259Decrease/(Increase)in accounts receivable 345,283 (965,027) 393,189(Decrease)/Increase in accounts payable 18,418 (23,233) (225,972)Net cash flow used in operations (1,837,306) (4,907,562) (9,529,785)Investing activitiesPurchase of computer software - (23,560) (116,467)Purchase of property plant and equipment (70,217) (1,129,357) (1,642,604)Proceeds from sale of equipment 40,000 2,644 41,885Purchase of assets held for sale - - (39,562)Loans issued - - (93,316)Loans repaid 8,557 - 53,360Interest received 4,186 179,498 219,084Net cash used in investing activities (17,474) (970,775) (1,577,620)Financing activitiesProceeds from issue of share capital 3,357,258 - -Issue costs (129,765) - -Net cash from financing activities 3,227,493 - -Net change in cash and cash equivalents 1,372,713 (5,878,337) (11,107,405)Cash and cash equivalents at beginning of 1,375,445 13,128,822 13,128,822the periodEffect of changes in foreign exchange rates 102,694 (246,216) (645,972)Cash and cash equivalents at end of the 2,850,852 7,004,269 1,375,445periodConsolidated statement of changes inequityFor the six months ended 30 June Share Share Retained Other Translation capital premium losses reserves reserve Total USD USD USD USD USD USDBalance at31 December2007 718,834 15,665,928 (11,995,860) 11,048,357 (408,059) 15,029,200Currencytranslation - - - - (13,357) (13,357)Net incomerecogniseddirectly inequity - - - - (13,357) (13,357)Loss forthe sixmonthsended30 June2008 - - (4,791,822) - - (4,791,822)Totalrecognisedincome andexpense forthe sixmonths - - (4,791,822) (13,357) (4,805,179)Shareoptionsexpense - - - 357,598 - 357,598Balance at30 June2008 718,834 15,665,928 (16,787,682) 11,405,955 (421,416) 10,581,619Currencytranslation - - - - (174,472) (174,472)Net incomerecogniseddirectly inequity - - - - (174,472) (174,472)Loss forthe sixmonthsended31 December2008 - - (7,120,542) - - (7,120,542)Totalrecognisedincome andexpense forthe sixmonths - - (7,120,542) (174,472) (7,295,014)Shareoptionslapsed - - 18,513 (18,513) - -Shareoptionsexpense - - - 394,747 - 394,747Balance at31 December2008 718,834 15,665,928 (23,889,711) 11,782,189 (595,888) 3,681,352Currencytranslation - - - - (64,874) (64,874)Net incomerecogniseddirectly inequity - - - - (64,874) (64,874)Loss forthe sixmonthsended30 June2009 - - (2,756,766) - - (2,756,766)Totalrecognisedincome andexpense forthe sixmonths - - (2,756,766) (64,874) (2,821,640)Shareoptionslapsed - - 5,367 (5,367) - -Shareoptionsexpense - - 385,189 - 385,189Issuance ofshares forcash 192,946 3,164,312 - 3,357,258Share issuecosts - (129,765) - - (129,765)Balance at30 June2009 911,780 18,700,475 (26,641,110) 12,162,011 (660,762) 4,472,394 Notes to the financial statements1 DividendNo dividend is proposed in respect of the period.2 Loss per shareThe loss per share is calculated by reference to the loss of USD2,756,766 for thesix months ended 30 June 2009 and the weighted average number of shares in issue of77,038,511 during the period. There is no dilutive effect of share options orwarrants.3 Basis of preparation of financial statementsThe unaudited results have been prepared on a going concern basis and on the basisof the accounting policies adopted in the audited accounts for the year ended 31December 2008 with the exception of the impact of changes to the applicableaccounting standards as set out below. The results for the period are derived fromcontinuing activities.* IAS1 (revised), 'Presentation of Financial Statements' has become effective from 1 January 2009. The revision has resulted in minor changes to the presentation of the primary statements.* IFRS8, 'Operating segments' effective for annual periods from 1 January 2009. Management does not believe this standard is relevant to the Group disclosures.The financial information set out in this half-yearly report does not constitutestatutory accounts. The figures for the period ended 31 December 2008 have beenextracted from the statutory financial statements, prepared under IFRS, which areavailable on the Group's website www.chaarat.com. The auditor's report on thosefinancial statements was unqualified.4 Selected accounting policyMining exploration and development costsDuring the exploration phase of operations, all costs are expensed in the IncomeStatement as incurred.A subsequent decision to develop a mine property within an area of interest isbased on the exploration results, an assessment of the commercial viability of theproperty, the availability of financing and the existence of markets for theproduct. Once the decision to proceed to development is made, exploration,development and other expenditures relating to the project are capitalised andcarried at cost with the intention that these will be depreciated by chargesagainst earnings from future mining operations over the relevant life of mine on aunits of production basis.5 Share optionsOn 9 June 2009 the Company awarded 665,000 share options to staff, at an exerciseprice of GBP£0.54 per share. The total number of share options outstanding were:At 31 December 2008 7,375,000Awarded 30 June 2009 665,000Lapsed in period (45,000)At 30 June 2009 7,995,000An amount of USD 385,189 was recognised as share based payment expense during thesix month period ended 30 June 2009 (six months ended 30 June 2008: USD 357,598; 12months ended 31 December 2008: USD 752,345).6 Placing of sharesOn 1 May 2009 the Company announced the closing of a Placing of 18,558,281 newOrdinary Shares at 12p per share. Trading of the new shares commenced on the AIMmarket of the London Stock Exchange on 11 May 2009. The Placing raised USD3,357,258 before issue costs of USD 129,765.7 Post Balance Sheet EventsOn 13 July 2009 the Company announced the signing of a subscription agreement withChina Nonferrous Metals Int'l Mining Co Ltd ("CNMIM"). CNMIM will subscribe for22,469,289 shares in the Company at 25p per share for a total consideration of£5,617,322. The subscription is subject to the regulatory approval of the ChineseGovernment, which is expected to be received in September 2009.On completion CNMIM's shareholding will represent 19.9% of the Company's (non fullydiluted) issued share capital. CNMIM will have the right to appoint two directorsto the board of the Company as long as its interest in Chaarat does not fall below15%, and one director as long as its interest does not fall below 10%, in eithercase for a period exceeding 6 months. Chaarat undertakes that when it issuesfurther shares CNMIM will be invited to participate in order to maintain its levelof shareholding on the same terms as offered to other subscribers or, where optionsare exercised, by reference to the market share price prior to exercise. Chaaratfurther agreed not to exercise its right to require CNMIM to make a cash offer toshareholders under the Company's articles of association, unless CNMIM reaches a30% threshold.Directors and AdvisersDirectorsC Palmer-Tomkinson Non-executive ChairmanD Golan Chief ExecutiveOfficerA Novak Executive DirectorL Naylor Finance DirectorO Greene Non-executive DirectorCompany Secretary Auditors Solicitors (UK) Watson, Farley &Chateau Management Limited Grant Thornton UK LLP Williams LLPPO Box 693 Grant Thornton House 15 Appold StreetHamilton Estate Melton Street London, EC2A 2HBCharlestown London, NW1 2EPNevisTel +41 22 316 6620 Registrars Solicitors (Guernsey) Capita Registrars Ogierlee(at)chateaufid.ch (Guernsey) Ltd Ogier House, 2nd Floor, No 1 Le Truchot St. Julien's AvenueRegistered Office St Peter Port St. Peter PortPalm Grove House Guernsey Guernsey, GY1 1WAPO Box 438Road Town, Tortola Depositary Solicitors (BVI) Capita IRG TrusteesBritish Virgin Islands, VG1110 Limited Ogier Qwomar Complex, 4thRegistered Number 1420336 The Registry Floor 34 Beckenham Road PO Box 3170 Road TownKyrgyz Republic Office Beckenham Tortola British VirginChaarat Zaav CJSC Kent, BR3 4TU Islands, VG 1110Chokmorova Street, 127 Solicitors (Kyrgyz720040, Bishkek Principal Bankers Republic) Royal Bank of ScotlandKyrgyz Republic International Kalikova & Associates Royal Bank Place 71 Erkindik BoulevardWeb Site 1 Glategny Esplanade Bishkek, 720040www.chaarat.com St Peter Port Kyrgyz Republic Guernsey Nominated Advisor & Broker Financial PR Canaccord Adams Limited Conduit PR Cardinal Place, 7th Floor 76 Cannon Street 80 Victoria Street London London, SW1E 5JL EC4N 6AE---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.08.2009 - 08:02 Uhr
Sprache: Deutsch
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