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Kyrgyzstan Review, 10 years ago




[28.08.2OO2] Oxus Mining H1 losses deepen with provision for Jerooy licence annulment

Oxus Mining PLC saw its losses for the six months to June 2002 deepen considerably after a 6.2 mln usd provision against the annulment of its mining license for Jerooy.
 
The loss before and after tax for the first half was 7.15 mln usd, compared with a loss of 1.25 mln usd for a loss per share of 5.38 cents compared with 1.29 cents.
 
A Kyrgyz Government resolution of Aug 5 confirms the annulment of the Jerooy mining licence and seeks to dissolve the joint venture agreement. Although Oxus is disputing the annulment, the directors have decided to make a provision for impairment of the group's investment in the Jerooy Project, pending the outcome of ongoing negotiations.
 
The group said it has been focussed on financing activities for the Amantaytau Phase 1 Project in Uzbekistan.
 
Expenditure on all projects during the first half amounted to 2.1 mln usd, of which 1.7 mln usd related to Amantaytau Goldfields.
 
The company looks forward to drawing down on both the senior loan facility and the subordinated loan for the Amantaytau Goldfields project in Uzbekistan and to commencing construction of the first phase open pit heap leach gold project during September 2002. First gold production is expected in mid 2003.
 
AFX, August 28, 2002

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