TIDMOSU
Orsu Metals Corporation results for the period ended September 30, 2015 (Unaudited)
FOR: ORSU METALS CORPORATION
TSX, AIM SYMBOL: OSU
November 11, 2015
Orsu Metals Corporation results for the period ended September 30, 2015 (Unaudited)
LONDON, UNITED KINGDOM--(Marketwired - Nov. 11, 2015) - Orsu Metals Corporation ("Orsu" or the "Company"), the dual-
listed (TSX:OSU)(AIM:OSU) London-based base and precious metals exploration and development company, today reports its
unaudited results for the quarter ended September 30, 2015 ("Q3 2015"). A full Management's Discussion and Analysis of
the results ("MD&A") and Consolidated Financial Statements (Unaudited) for Q3 2015 (the "Financials") will soon be
available on the Company's profile on SEDAR (www.sedar.com) or on the Company's website (www.orsumetals.com). Copies
of the MD&A and Financials can also be obtained upon request from the Company Secretary.
The Financials have been prepared in accordance with applicable International Financial Reporting Standards ("IFRS").
All amounts are reported in United States Dollars ($) unless otherwise indicated. Canadian Dollars are referred to
herein as CAD$ and British Pounds Sterling are referred to as GBP.
The following information has been extracted from the MD&A and the Financials. Reference should be made to the
complete text of the MD&A and the Financials.
2015 THIRD QUARTER HIGHLIGHTS
A year on year reduction of $0.7 million in net losses to $2.6 million for the nine months ended September 30, 2015,
from $3.3 million for the nine months ended September 30, 2014, along with a year on year reduction of $0.7 million in
net cash outflows.
As at September 30, 2015 the Company had cash and cash equivalents of $5.5 million and estimates to have sufficient
working capital to fund its exploration and administration obligations for the next 12 months.
In September 2015, the Company announced the grant of a total of 15.7 million stock options (each an "Option") to
directors, employees and consultants, with each Option entitled to purchase one common share of the Company (each
a "Common Share") at an exercise price of CAD$0.02. Each Option vested with immediate effect and will expire on
September 2, 2020.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015
For the Q3 2015 the Company reported a net loss of $1.2 million compared to a net loss of $1.1 million for the three
months ended September 30, 2014.
The net loss of $1.2 million for Q3 2015 consisted of: administrative costs of $0.6 million ($0.62 million for the
three months ended September 30, 2014), legal and professional costs of $0.1 million ($0.12 million for the three
months ended September 30, 2014), exploration costs of $54,000 ($0.33 million for the three months ended September 30,
2014), a stock based compensation charge of $0.1 million (nil for the three months ended September 30, 2014), a net
foreign exchange loss of $0.3 million (nil for the three months ended September 30, 2014) and a net loss of $72,000 in
relation to the disposal group asset held for sale (nil for the nine months ended September 30, 2014).
As at September 30, 2015 the Company had net assets of $18.6 million ($21.1 million as at December 31, 2014) of which
$5.5 million was held in cash and cash equivalents ($7.6 million as at December 31, 2014).
Liquidity and capital resources
As at September 30, 2015 the Company's main source of liquidity was unrestricted cash and cash equivalents of $5.5
million, compared with $7.6 million as at December 31, 2014.
The Company measures its consolidated working capital as comprising free cash, accounts receivable, prepayments and
other receivables, less accounts payable and accrued liabilities. As at September 30, 2015 the Company's consolidated
working capital was $5.1 million (compared with a consolidated working capital of $7.7 million as at December 31,
2014).
The Company's working capital needs as at September 30, 2015 included the funding for its exploration and development
activities, future expenditure obligations of the Kogodai Project, its corporate and administrative expenditures
requirements and potential contributions towards project finance, if and when arranged, in relation to the Karchiga
Project, as deemed appropriate. The Company expects to fund its working capital requirements for 2015, other than as
set out below for the Karchiga Project, and be able to contribute towards the pursuit of future growth opportunities
(which may include acquiring one or more additional assets), if and when such opportunities arise, from its
unrestricted cash of $5.5 million as at September 30, 2015 and potential net proceeds, if any, from the sale of the
Akdjol-Tokhtazan Project.
During the nine months to the end of Q3 2015 the net cash used by the Company's operating expenditures was $2.1
million, compared to $2.8 million for the nine months ended September 30, 2014.
The minimum working capital the Company estimates for the year is set out below:
Estimated working capital requirements for 2015 $000
=-------------------------------------------------------------- -------
Estimated corporate and administration expenditure (1) 2,760
Estimated exploration expenditure for the Kogadai Project (2) 304
-------
Total 3,064
Notes:
(1) Includes office expenditure at the Karchiga Project.
(2) Total expenditure obligation of $3.75 million over five years.
In the Company's view, the consolidated working capital as at Q3 2015 is sufficient to satisfy its working capital
needs, other than as described below in relation to the Karchiga Project, for at least the next twelve months.
In order to achieve the Company's planned construction of mining facilities and commencement of mining operations at
the Karchiga Project, if any, the Company will require an estimated initial CAPEX of $115 million for which the
Company will be required to raise additional financing in the future. If the Company secures the required debt
financing on acceptable commercial terms then it may also apply a proportion of its available unrestricted cash and if
any, from the sale of the Akdjol-Tokhtazan Project, towards the project financing requirements as the Company
determines necessary. To date the Company has been unable to secure the necessary finance required and as a result is
also looking at alternative solutions, in addition to raising the complete finance for the necessary construction at
the project, which include potential joint venture agreements, revenue sharing arrangements, off-take arrangements or
the sale of part or all of the project. Whilst the Company has been successful in raising debt and other financing in
the past, the Company's ability to raise additional debt and other financing may be affected by numerous factors
beyond the Company's control, including, but not limited to, adverse market conditions and/or commodity price changes
and economic downturn and those other factors that are listed under "Risks and Uncertainties" in the Company's 2014
annual MD&A.
Consolidated statements of net loss and comprehensive loss (Unaudited)
(Prepared in accordance with IFRS)
=---------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2015 2014 2015 2014
$000 $000 $000 $000
Operating expenses
Administration (585) (623) (1,652) (2,058)
Legal and professional (115) (122) (326) (406)
Exploration (54) (331) (134) (682)
Stock based compensation (95) - (95) -
Stock based compensation - non
employees (5) - (5) -
Net foreign exchange losses (323) (21) (360) (191)
Net loss from disposal group asset
held for sale (72) (11) (148) (58)
-------------------- --------------------
(1,249) (1,108) (2,720) (3,395)
-------------------- --------------------
Unrealized (loss)/ gain on share
warrant liability (4) 36 36 69
Finance income less finance
(expense) 14 12 58 15
-------------------- --------------------
10 48 94 84
-------------------- --------------------
Net loss and comprehensive loss (1,239) (1,060) (2,626) (3,311)
-------------------- --------------------
-------------------- --------------------
Net loss attributable to:
Owners of the parent (1,187) (1,038) (2,495) (3,269)
Non-controlling interest (52) (22) (131) (42)
-------------------- --------------------
(1,239) (1,060) (2,626) (3,311)
-------------------- --------------------
-------------------- --------------------
Loss per share (US dollar per
share)
Basic $(0.01) $(0.01) $(0.01) $(0.02)
Diluted $(0.01) $(0.01) $(0.01) $(0.02)
Weighted average number of common
(MORE TO FOLLOW) Dow Jones Newswires
November 11, 2015 02:00 ET (07:00 GMT)
shares (in thousands) 182,696 182,696 182,696 182,696
Consolidated Balance Sheets (Unaudited)
(Prepared in accordance with IFRS)
=---------------------------------------------------------------------------
September 30 December 31
2015 2014
Assets $000 $000
Current assets
Cash and cash equivalents 5,517 7,606
Prepaid expenses and receivables 612 545
Assets of Akdjol-Tokhtazan Project held for
sale 4,472 4,583
--------------------------------
10,601 12,734
--------------------------------
Non-current assets
Property, plant and equipment 9,021 9,036
Other assets 500 832
--------------------------------
9,521 9,868
--------------------------------
Total assets 20,122 22,602
--------------------------------
--------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 665 377
Deferred income 400 400
Liabilities of Akdjol-Tokhtazan Project held
for sale 225 187
Lease obligations 265 -
--------------------------------
1,555 964
Non-current liabilities
Share warrant liability 10 46
Other liabilities - 509
--------------------------------
1,565 1,519
--------------------------------
Equity
Share capital 382,576 382,576
Share purchase options 216 5,601
Contributed surplus 34,045 28,560
Non-controlling interest (700) (569)
Deficit (397,580) (395,085)
--------------------------------
18,557 21,083
--------------------------------
Total equity and liabilities 20,122 22,602
--------------------------------
--------------------------------
Consolidated Statements of Cash Flows (Unaudited)
(Prepared in accordance with IFRS)
=---------------------------------------------------------------------------
Nine months ended September 30,
2015 2014
$000 $000
Cash flows used by operating activities
Net loss and comprehensive loss for the
period (2,626) (3,311)
Items not affecting cash:
Depreciation 84 62
Unrealized exchange (gains)/ losses on
cash and cash equivalent balances (33) 19
Onerous lease provision release (244) -
Share based payments 100 -
Unrealized derivative gain on share
warrant liability (36) (69)
Foreign exchange losses 370 199
--------------------------------
(2,385) (3,100)
Changes in non-cash working capital:
Accounts receivable and other assets 5 (76)
Accounts payable and accrued liabilities 326 513
--------------------------------
Net cash used by operating activities (2,054) (2,663)
Cash flows used by investing activities
Expenditures on property, plant and
equipment (68) (124)
--------------------------------
Net cash used by investing activities (68) (124)
--------------------------------
Net decrease in cash and cash equivalents in
the period (2,122) (2,787)
--------------------------------
Cash and cash equivalents - Beginning of
period 7,607 11,343
Exchange gains/ (losses) on cash and cash
equivalent balances 33 (19)
--------------------------------
Cash and cash equivalents - End of period 5,518 8,537
--------------------------------
--------------------------------
Cash and cash equivalents per the
consolidated balance sheets 5,517 8,536
Included in the Akdjol-Tokhtazan Project
classified held for sale 1 1
FORWARD-LOOKING INFORMATION
This press release and the Company's MD&A contains or refers to forward-looking information. All information, other
than information regarding historical fact that addresses activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future is forward-looking information. Such forward-looking
information includes, without limitation, statements relating to: development and operational plans and objectives,
including the Company's expectations relating to the continued and future maintenance, exploration, development and
financing for, as applicable, of the Karchiga Project, and the Kogodai Project and the timing related thereto and its
acquisition and development of new mineral exploration licenses, properties and projects; the Company's ability to
satisfy certain future expenditure obligations; mineral resource and mineral reserve estimates; estimated project
economics, cash flow, costs, expenditures, revenue, capital payback, performance and economic indicators and sources
of funding; the estimate, use and sufficiency of the Company's working capital and the Company's ability to fund its
working capital requirements; the re-negotiation of a new debt mandate with UniCredit and/or another senior debt
provider and the potential participation by other debt providers; the potential raising of additional funding through
the disposition of the Akdjol-Tokhtazan Project and the proposed uses thereof; the estimated mine life, NPV and IRR
for, and forecasts relating to tonnages and amounts to be mined from, and processing and expected recoveries and
grades at, the Karchiga Project as well as the other forecasts, estimates and expectations relating to the Karchiga
Definitive Feasibility Study Report; the mine design and plan for the Karchiga Project, including mining at, and
production from the Karchiga Project; the Company's intention to recognize the $400,000 non-refundable deposit from
the Potential Buyers as income in the future; the future political and legal regimes and regulatory environments
relating to the mining industry in Kazakhstan and/or Kyrgyzstan; the Company's expectations and beliefs with respect
to the waiver of the State's pre-emptive right with respect to the Karchiga Project and the past placements of the
Common Shares being covered thereby; the significance of any individual claims by non-Ontario residents in relation to
a class action in June 2008 brought against the Company in the Ontario Superior Court of Justice which was settled by
the Company in 2010 (the "Claim"); and the Company's future growth (including new opportunities and acquisitions) and
its ability to raise or secure new funding.
The forward-looking information in this press release and the Company's MD&A reflects the current expectations,
assumptions or beliefs of the Company based on information currently available to the Company. With respect to forward-
looking information contained in this press release and the Company's MD&A, the Company has made assumptions
regarding, among other things, the Company's ability to generate sufficient funds from debt sources and/or capital
markets to meet its future expected obligations and planned activities (including, with respect to financing for the
Karchiga Project, the ability of the Company to obtain such financing on terms acceptable to the Company or
otherwise), the Company's business (including the continued exploration and development of, as applicable, the
Karchiga Project and the Kogodai Project and the timing and methods to be employed with respect to same), the
(MORE TO FOLLOW) Dow Jones Newswires
November 11, 2015 02:00 ET (07:00 GMT)
Orsu Metals (LSE:OSU)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Orsu Metals (LSE:OSU)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
