(EUA.L) Eurasia Mining PLC Buy/Sell

RNS Number : 7182Z Eurasia Mining PLC 28 September 2009

Eurasia Mining plc

("Eurasia" or the "Company")

Interim results for the 6 months ended 30 June 2009

Chairman's statement

During the first six months of 2009 the Company undertook a full capital reorganisation which was successfully completed during June 2009. Preparatory work for this commenced in October 2008. However, frequent delays, mainly regulatory in nature, were encountered during the process. Despite these setbacks, the outcome is that the Company is now completely free of any debt and has a substantial warrant and option package in the hands of all shareholders. This provides all shareholders with the opportunity to participate in the financing of the Company at the same price as the debt conversion price.

Another outcome of the capital reorganisation is that Deloan Investments has become our largest shareholder, holding a 37.9% interest at the end of September 2009. We welcome their participation and gratefully acknowledge their ongoing support during these difficult financial times that we have all endured. The total number of shares in issue has increased during September 2009 to 330,204,007, with outstanding warrants and options totalling 275,079,110.

Following a substantial decline in PGM prices, the Company decided to take a major write down of exploration costs relating to the cessation of work on the Baronskoe palladium-gold project, which has been under continuous exploration since 1998. While two open pit resources have been delineated within the licence area, the current palladium price renders them uneconomic using conventional technologies for ore processing.

As shareholders know, it is our ambition to expand activities in Russia beyond the current platinum group element focus (in particular our venture with Anglo Platinum) into other commodities such as gold. The move to broaden and diversify our exposure has to some extent been slowed by the requirement to work using reduced expenditure levels.

Despite on-going challenges, we have made excellent progress at our West Kytlim platinum project in the Urals. Initial reserves have been approved for the Bolshaya Sosnovka area with the pre-feasibility study confirming viability of the project. Certification has been awarded to our operating company officially recognising the discovery of platinum placers. Certification is a key ingredient in the process of obtaining a mining licence, required before a company can commence production. Full documentation in support of the application for this licence was submitted in June. We now await feedback from the various statutory bodies involved in the process in the issue of this licence.

In parallel, drilling has continued on additional new areas within the existing exploration licence area, targeting the progressive expansion of platinum resources and reserves.

In Kola, fieldwork was limited due to budgetary cutbacks. We are examining options for two licence areas held by our joint venture, including the potential of introducing new partners to support exploration efforts into the future.

Looking forward, I am hopeful that at long last development plans for the West Kytlim project are reaching fruition. The timescale is still uncertain due to the permitting process but we look forward to seeing first platinum metal production in the near future.

Dr. Michael Martineau

Chairman

For more information please contact: Eurasia Mining
Christian Schaffalitzky/ Michael de Villiers Tel +44 (0) 207 932 0418

W H Ireland Ltd
Katy Mitchell Tel +44 (0) 161 832 2174

Tavistock Communications
Allan Piper/ Nick Peters/ Paul Young Tel +44 (0) 207 920 3150

Condensed consolidated statement of comprehensive income

6 months to 12 months to 6 months to
30 June 31 December 30 June

(unaudited) (audited) (unaudited)
Impairment loss 5 (1,116,921) - -
Administrative costs (380,787) (569,158) (281,743)
Result from equity accounted 6 341 (737,826) (19,532)

investments
Finance income 37 13,038 9,550
Finance costs (191,170) (209,386) (61,564)
Other financial results (333,246) 669,404 28,585

Loss before tax (2,021,746) (833,928) (324,704)

Income tax expense - - -

Loss for the period (2,021,746) (833,928) (324,704)

Other comprehensive income/(loss):

Exchange differences on 135,772 (818,560) 87,331

translation of foreign operations

Other comprehensive income/(loss) 135,772 (818,560) 87,331

for the period, net of tax

Total comprehensive loss for the (1,885,974) (1,652,488) (237,373)

period

Loss for the period attributable to:
Equity holders of the parent (1,919,209) (900,114) (324,950)
Minority interest (102,537) 66,186 246
(2,021,746) (833,928) (324,704)

Total comprehensive loss for the period attributable to:
Equity holders of the parent (1,628,657) (1,714,744) (237,543)
Minority interest (257,317) 62,256 170
(1,885,974) (1,652,488) (237,373)
Basic and diluted loss (pence per (0.87) (0.64) (0.23)

share)

Condensed consolidated statement of financial position

Note As at As at As at
30 June 31December 30 June

(unaudited) (audited) (unaudited)

Non-current assets
Property, plant and equipment 4 26,605 29,269 28,711
Intangible assets 5 - 1,272,982 888,681
Investments in equity 6 19,495 50,498 1,326,732

accounted investees
Other financial assets 118,676 135,396 125

Total non-current assets 164,776 1,488,145 2,244,249

Current assets
Inventories 611 1,369 2,027
Trade and other receivables 28,350 25,296 40,472
Cash and bank balances 364,664 594,321 538,428

Total current assets 393,625 620,986 580,927

Total assets 558,401 2,109,131 2,825,176

Capital and reserves
Issued capital 7 15,581,693 14,089,409 14,123,535
Reserves 8 3,244,014 3,267,032 4,083,818
Accumulated losses (18,746,714) (16,872,373) (16,346,376)
Equity attributable to equity 78,993 484,068 1,860,977

holders of the parent
Minority interest - 2,855 (59,231)
Total equity 78,993 486,923 1,801,746

Non-current liabilities
Borrowings 9 - 332,609 272,511

Total non-current liabilities - 332,609 272,511

Current liabilities
Trade and other payables 479,408 576,893 541,350
Borrowings 9 - 712,706 209,569

Total current liabilities 479,408 1,289,599 750,919

Total liabilities 479,408 1,622,208 1,023,430

Total equity and liabilities 558,401 2,109,131 2,825,176

These financial statements were approved by the Board on 28 September 2009.

Condensed statement of changes in equity

For the six months ended 30 June 2008
Attributable to owners of the company
Note Share Share premium Deferred shares Other reserves Translation reserve Accumulated losses Total Minority interest Total equity
capital
Balance at 1 January 2008 7,053,819 7,020,549 - 3,624,721 71,488 (16,021,426) 1,749,151 (59,401) 1,689,750
Reversal of un-used equity 8 - 49,167 - (49,167) - - - -

component of convertible loan notes
Recognition of equity 8 - - - 104,876 - - 104,876 - 104,876

component of convertible loan notes
Recognition of warrants 8 - - - 244,493 - - 244,493 - 244,493

granted
Transaction with owners - 49,167 - 300,202 - - 349,369 - 349,369
Loss for the period - - - - - (324,950) (324,950) 170 (324,780)

Other comprehensive income/(loss)
Exchange differences on - - - - 87,407 - 87,407 - 87,407

translation of foreign operations
Total comprehensive loss - - - - 87,407 (324,950) (237,543) 170 (237,373)

for the period ended 30 June

Balance at 30 June 2008 7,053,819 7,069,716 - 3,924,923 158,895 (16,346,376) 1,860,977 (59,231) 1,801,746

Condensed statement of changes in equity

For the six months ended 30 June 2009
Attributable to owners of the company
Note Share Share premium Deferred shares Other reserves Translation reserve Accumulated losses Total Minority interest Total equity
capital
Balance at 1 January 2009 7,068,860 7,020,549 - 4,010,174 (743,142) (16,872,373) 484,068 2,855 486,923
Share capital restructure 7 (7,025,483) - 7,025,483 - - - - - -
Issue of share capital 7 254,184 1,238,100 - - - - 1,492,284 - 1,492,284
Recognition of equity 8 - - - 21,726 - - 21,726 - 21,726

component of convertible loan notes
Utilised equity component of 8 - - - (120,527) - - (120,527) - (120,527)

convertible loan notes on conversion
Reversal of un-used equity 8 - - - (44,868) - 44,868 - - -

component of convertible loan notes
Reversal of share-based 8 - - - (12,574) - - (12,574) - (12,574)

payment reserve
Setting off minority 97,135 97,135

shareholder loan
Transaction with owners (6,771,299) 1,238,100 7,025,483 (156,243) - 44,868 1,380,909 97,135 1,478,044
Loss for the period (1,919,209) (1,919,209) (102,537) (2,021,746)

Other comprehensive income/(loss)
Exchange differences on - - - - 133,225 - 133,225 2,547 135,772

translation of foreign operations
Total comprehensive loss - - - - 133,225 (1,919,209) (1,785,984) (99,990) (1,885,974)

for the period ended 30 June

Balance at 30 June 2009 297,561 8,258,649 7,025,483 3,853,931 (609,917) (18,746,714) 78,993 - 78,993

Condensed consolidated statement of cash flows
6 months to 12 months to 6 months to
30 June 31 December 30 June

(unaudited) (audited) (unaudited)

Cash flows from operating activities
Profit/(loss) for the period (2,021,746) (833,928) (324,704)

Adjustments for:
Depreciation and amortisation of 1,236 1,907 1,484

non-current assets:
(Gain)/loss on sale or disposal (129) - -

of property, plant and equipment
Impairment of intangible assets 1,116,921 - -

recognised in profit or loss
(Gain)/loss on disposal of - (26,427) (26,427)

investments
Share of (profit)/loss of joint - 603,341 18,278

venture
Share of (profit)/loss of (341) 134,485 1,254

associates
Net foreign exchange (gain)/loss 333,375 (642,977) (2,158)
Investment revenue recognised in (37) (13,038) (9,550)

profit or loss
Finance costs recognised in 191,170 209,386 61,564

profit or loss
Expense recognised in profit or 17,426 - -

loss in respect of equity-settled share-based payments
(362,125) (567,251) (280,259)

Movements in working capital
Decrease/(increase) in 758 (1,369) (2,027)

inventories
(Increase)/decrease in trade and (3,054) 102,212 87,003

other receivables
(Decrease)/increase in trade and (97,485) 362,532 329,736

other payables
Cash (used in)/generated from (461,906) (103,876) 134,453

operations

Interest paid (9,679) (32,088) (22,408)
Net cash (used in)/ generated by (471,585) (135,964) 112,045

operating activities

Cash flows from investing activities
Proceeds from sale of investment - 92,379 92,379

securities
Amounts advanced to related - (135,223) -

parties
Payments for property, plant and (841) (2,708) (1,199)

equipment
Payments for other intangible (5,058) (82,122) (24,338)

assets
Proceeds from disposal of 609 370 -

property, plant and equipment
Interest received 37 8,766 9,550
Net cash (used in)/generated by (5,253) (118,538) 76,392

investing activities

Cash flows from financing activities
Proceeds from issue of 247,500 738,250 243,250

convertible loan notes
Net cash generated by financing 247,500 738,250 243,250

activities

Effects of exchange rate changes (319) 3,844 12

on the balance of cash held in foreign currencies
Net (decrease)/increase in cash (229,657) 487,592 431,699

and cash equivalents
Cash and cash equivalents at the 594,321 106,729 106,729

beginning of period
Cash and cash equivalents at the 364,664 594,321 538,428

end of the period Selected notes to the condensed consolidated financial statements for the six months ended 30 June 2009

1. General information

Eurasia Mining Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office and principal place of business at Suite 139, Grosvenor Gardens House, 35-37 Grosvenor Gardens, London SW1W 0BS. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of platinum group metals, gold and other minerals in Russia. Eurasia Mining Plc's condensed consolidated interim financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company. The financial information set out in these condensed consolidated interim financial statements does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2008, prepared under International Financial Reporting Standards (the "IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was qualified. The report did not contain a statement under Section 237(2) of the Companies Act 1985.

2. Basis of preparation The Group prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) ,as endorsed by the European Union (EU). These condensed consolidated interim financial statements for the period ended 30 June 2009 have been prepared by applying the recognition and measurement provisions of IFRS and the accounting policies adopted in the audited accounts for the year ended 31 December 2008

These financial statements have been prepared under the historical cost convention. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

3. Accounting policies Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those annual financial statements. The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009: