Company Profile

The Oxus Group was established in 1996 and quoted on the Alternative Investment Market (AIM) in London in 2001.

Oxus Gold plc is a UK based international mining group with gold mining interests in Central Asia. Oxus is the joint owner (50/50) with the government of Uzbekistan of Amantaytau Goldfields (AGF) which is developing several mining operations in the Tien Shan gold belt near Zarafshan.

The first mine was constructed and commissioned by Oxus in January 2004 on time and within budget and commercial production began the following month. AGF has since produced more than 270,000 ounces of gold to the end of September 2005 and is now producing at the planned rate of 151,000 onces per annum.




Amantaytau - Jul 2004





Contact details

Oxus Gold plc - Head & Registered Office

Tel: +44 (0)20 7907 2000
Email: enquiries@oxusgold.co.uk

Web: www.oxusgold.co.uk


For Oxus Gold press releases, click HERE

RNS Number : 1220Z
Oxus Gold PLC
16 September 2009



Oxus Gold plc




('Oxus' or the 'Company' or the 'Group')




Interim Results for the six months ended 30 June 2009




FINANCIAL REVIEW




The Group reports its results for the six month period ended 30 June 2009 (the 'Period'). Comparatives are for the six month period ended 30 June 2008.




The Group reports gross revenue, excluding attributable joint venture income, of $488,000 for the Period (2008: $1.65 million). Gross revenue primarily represents the recharge of exploration, evaluation and administrative costs which are borne by the Group and shown as Group costs, but relate directly to the Amantaytau Goldfields ('AGF') joint venture. Group revenue does not include any revenue from the sale of gold and silver since AGF, being a joint venture, is accounted for using the equity method and only the Group's 50% share of profits or losses arising from the joint venture is reflected in the consolidated income statement.




The AGF joint venture contributed an attributable loss of $1.56 million for the Period (2008: $460,000 profit), which includes $1.69 million of exceptional costs arising from a restructuring of the joint venture's operating cost base.




Total Group earnings for the Period showed a loss after taxation of $5.18 million (1.35 cents per share loss) against a profit of $1.84 million (0.50 cents per share profit) in 2008.




Total assets decreased to $67.53 million (31 December 2008: $75.65 million; 30 June 2008: $92.53 million) including cash and cash equivalents of $6.18 million (2008: $17.31 million).




During the Period the Company issued 2,165,742 ordinary shares in respect of capitalised fees and salaries relating to directors and senior management of the Group. The total number of ordinary shares in issue at 30 June 2009 was 383,605,427. Since the period end, a further 1,025,573 ordinary shares have been issued in respect of capitalised fees and salaries and there are currently 384,631,000 ordinary shares in issue.




At 30 June 2009 the Group's loan facility from Nedbank had reduced to $3.75 million. The amount outstanding on the loan at 11 September 2009 was $2.50 million.




The Group continues to take measures to preserve cash until such time as further funding is obtained and to address the items referred to by the auditors as an emphasis of matter relating to going concern in the audited accounts to 31 December 2008.




Overheads have been cut wherever possible and directors and senior management have all accepted reduced salaries and are paid a portion of those salaries in shares of the Company, rather than cash. AGF's operations have also been placed onto a temporary 'care and maintenance' basis whilst the outstanding stockpile of silver doris being refined and sold, following which the existing open pit heap leach operations will be recommenced. AGF is expected to refine approximately 18.2 tonnes of stockpiled silver dorover the period to 31 December 2009, to recover in the order of 15,860 ounces of gold equivalent. A further approximately 4,775 ounces of gold equivalent is expected to be made available to AGF during this period as a result of the release of metal previously locked-up in the refinery's furnace.




AGF is also making applications to the Uzbek Government to recover some $9.6 million of VAT, taxes and customs duties which it considers to be repayable or to have been overpaid, and to obtain confirmation that the reclassification of gold exporting businesses from 'zero-rated' to 'exempt' for VAT purposes with effect from 1 January 2009 does not apply to AGF due to the protections afforded to Oxus as a foreign investor pursuant to the Uzbek Foreign Investment Laws. In this regard, AGF has continued to file VAT returns during 2009 on the basis of a 'zero-rated' business.




Negotiations with a major Chinese contracting and financing group in respect of the financing of AGF's underground sulphide mine continue to progress and first underground production is still targeted to take place during H2 2011, subject to the availability of finance.




During the Period the Group received net repayments on its shareholder loans to AGF of $1.43 million. At 11 September 2009 the Group's cash resources stood at approximately $6 million.




Discussions are also ongoing with holders of the Company's $18.5 million 8% unsecured convertible loan notes, due May 2010, with a view to extending the maturity date on such notes. The majority of the note holders are significant shareholders in the Company.




The Company is grateful to its strategic shareholder, Zeromax GmbH, for making available an Uzbek Soum 7 billion (approximately $4.7 million) interest free working capital facility to AGF in April 2009.




REVIEW OF OPERATIONS




All figures relating to AGF are 50% attributable to Oxus.




During the six month period to 30 June 2009 AGF produced 3,612 ounces of gold and 111,586 ounces of silver, and sold 5,232 ounces of gold and 133,066 ounces of silver for gross revenue of $6.39 million.




AGF reports an operating profit, before exceptional items, of $249,000 for the Period (2008: $920,000). After exceptional restructuring costs AGF reports a loss of $3.12 million (2008: $920,000 profit).




The carbon-in-pulp ('CIP') plant operation was shut down in January 2009 as planned. AGF has decided not to process the Sarybatyr open pit oxide ore through this plant as metallurgical test work and an economic analysis demonstrated that this deposit will be more profitably processed by heap leaching. The CIP plant will not operate again until it is converted into a bio-oxidisation plant to treat the underground sulphide ore. In order to reduce costs the associated labour force, other than that required to carry out care and maintenance, has been retrenched on a temporary basis.




Stacking at the Vysokovoltnoye heap leach operation was also stopped in early January, although the heaps were irrigated until March 2009. The decision to temporarily cease operations was taken due to the delays being experienced with the in-country Almalyk refinery, which was unable to refine the required tonnage in accordance with its contractual commitments. At 30 June 2009 a total of 18.2 tonnes of silver dorwas stockpiled at AGF, representing 568,000 ounces of silver and 6,700 ounces of gold, with a total sales value of approximately $15.7 million at current metal prices.




A new refining contract, with improved commercial terms, has now been signed with the Almalyk refinery and the first four tonnes of stockpiled silver dorwere sent for refining in late July, with the first refined metal being sold in London in late August 2009. Almalyk has committed to refine and return for sale the rest of the stockpile over the period to 31 December 2009, and also to refine and return for sale 56,750 ounces of silver and 3,860 ounces of gold which has been locked-up in the refinery's furnace since the end of 2007. This metal has a sales value of approximately $4.4 million at current metal prices.




Future Open Pit Oxide Operations




It is currently planned to recommence open pit oxide mining in early 2010 and to continue heap leaching until 2022, producing an estimated 590,000 ounces of gold equivalent over this period, excluding any expansions arising as a result of exploration activities.




Initially the Vysokovoltnoye plant will process the Sarybatyr ore, followed by the balance of the Vysokovoltnoye deposit, and then a further six deposits in the immediate vicinity. The feasibility study for the Sarybatyr deposit has been approved by the State Committee for Geology and submitted to the Cabinet of Ministers in order to obtain the appropriate mining permit. This operation is expected to produce a total of 340,000 ounces of gold equivalent over the twelve year period. In parallel to the Vysokovoltnoye operation, a second heap leach plant is planned to be commissioned at Asaukak in Q4 2010, to recover a further 250,000 ounces of gold over a ten year period from the existing stockpile of Asaukak ore and subsequent mining of surrounding deposits.




Underground Sulphide Project




As previously reported, Wardell Armstrong International ('WAI') completed a bankable feasibility study ('BFS') in June 2008 in respect of AGF's underground sulphide reserves at Severny and Centralny. This BFS was subsequently updated in November 2008 to include additional reserve ounces and envisaged a 750,000 tonnes per annum operation (increasing to 1.2 million tonnes per annum) over an initial mine life of eight years, at a capital cost of approximately $170 million, and producing an average of 230,000 ounces of gold per annum.




In May 2009, WAI completed an addendum to the BFS in respect of a lower capital cost first phase of the underground sulphide project, which also includes AGF's sulphide tailings arising from transitional and sulphide ore previously processed through the CIP plant as part of AGF's open pit oxide operation. This study envisages an initial 450,000 tonnes per annum operation at a capital cost of approximately $73 million, and producing an average of 100,000 ounces of gold per annum, until expanded to process a larger tonnage.




OTHER ACTIVITY




Board of Directors




On 31 January 2009 Jonathan Kipps, Finance Director and Company Secretary, resigned as a director of the Company. On 1 February 2009 Jyoti Chandhok, a chartered management accountant, was appointed Company Secretary, Richard Shead, non-executive Chairman, assumed the role of executive Chairman, and James McBurney joined the board as a non-executive director. James McBurney has over twenty years' experience in the banking sector and has held senior positions at a number of global financial institutions.




On 1 July 2009 Richard Wilkins vacated the role of Chief Executive Officer and assumed the role of Finance Director. The executive therefore now consists of Richard Shead as executive Chairman, John Donald as Chief Operating Officer, and Richard Wilkins as Finance Director.




Financial Advisers




On 1 January 2009 Fox-Davies Capital Limited was appointed as joint broker alongside Fairfax I.S. PLC. Fairfax is also the Company's nominated adviser.

The headline "Oxus Gold swings into $5.18m H1 loss" says it all. Sp already down 10%.
However, it may be that this has come as a bit of a surprise. As this info is historic you could argue that things will get better now that the bad news is out & therefore the drop is only temporary.

Yes - not good news. Was in profit with this one yesterday as well...

Thats me out.

It's because I bought some the other day.... lol Sorry.

The drop is Way over done IMO

yes but its your opinion........the markets say otherwise

Still ............ In the past this share has bounced back from a lot worse if you are able to sit & wait or buy more on the drop ? ?? ; )

Indeed - Marni - lets see how it goes -

Already looking better than earlier today. I'm back to break even; think I'll sit tight for a bit

As per my post #577, only a drop below 9p would change the chartist's stance to bear rather than bull for OXS.
I am happy to sit tght with my stock as gold is still increasing in value & this should get dragged up by the general move of all gold miners.

lucky ol me sold at 14.75p yesterday and bought back today at 11.75p..maestro is regaining his touch again

Uzbekistan focused gold miner Oxus Gold (AIM: OXS) led the fallers, dipping 23% after releasing its interims. However, broker Fox-Davies Capital maintained its buy recommendation for the stock, though cut its price target to 30 pence from 33 pence. Oxus is currently valued at 11.5 pence per share.

http://www.proactiveinvestors.co.uk/companies/news/8208/gold-silver-and-platinum-rise-ftse-100-up-on-strong-session-from-mining-and-financial-stocks-8208.html

Just nudging the 30 DMA & the stop loss target of 9p (as suggested by Simon Griffin of Shares Mag.) Hoping that this level forms good support for the sp.

I am thinking the same Harrycat. Looking at the intra-day chart it did touch 9.5 and bounced back up.

bastards..stop loss triggered

Looking to get back in this week .

Nice rise today !!

A well deserved rise,still not back in,funds elswhere at the moment,good luck to all that hold.

decent volume today so far on this one......this could go up lots based on rising gold price plus funding issue