Hello there, dear stakeholders and shareholders. Welcome to Auriant Mining 9- month interim results. Today I'm with my colleagues, Petr Kustikov to my left, our COO, and to my right, Alexander Buchnev, our new CFO. We do the presentation in the normal Zoom format for approximately 20 minutes. We have muted your microphones as usual as well. Please use already as you do right now, the chat facilities for asking questions during the session which we will answer at the end of the session. Today we're gonna talk about the production and the KPIs of it, which Petr will do the sales update and the financials from Alexander's part. I will give a few words about the current outlook and the current situation and the outlook for the company. Petr, please go ahead with the Tardan gold production. Thank you, Danilo. Good afternoon, ladies and gentlemen. Let me present Tardan's 9-month gold production results of year 2022. Within the nine months, almost 298,000 tons of ore were processed through the CIL plant. The gold grade in the processed ore was estimated at 2.17 gr per ton. As you also can see on the slide, the recovery rate in the nine months amounted to 93%, compared to 93% in the previous year. This indicates that we managed to set up the CIL reagent feeding process accurate enough to achieve the same high recovery rate for the type of ore we mined from Tardan's Ore body #26 and Ore zone #3. As a result, we got 604 kg of gold produced in the CIL plant in the nine months of 2022, which is fully in line with our production forecast. In regards to our set KPIs, I would like to emphasize again that we tend to catch up with the waste stripping at Tardan deposit, providing an access to the ore bodies, which then will be our main source for further feeding of the CIL plant. The reason of postponing the waste stripping at Tardan was reported before. For those who are not aware of it, let me repeat it again, there was the license restriction imposed on Tardan deposit in 2020, which was successfully cleared by end of the year. This gave us the possibility to start stripping in 2021. The fact that we didn't mine waste at Tardan in 2020, of course, affected our waste stripping activity to be more intensive from 2021 - 2024. The stripping volume in the nine months of 2022 amounted to almost 1.7 million cubic meters. That is 27% higher than in 2021, but exactly in line with our production plan. As you can see on the slide, the ore mined in nine months of 2022 amounted to 316,000 tons at the average grade of 2.02 gr per ton. As I mentioned, despite we faced some different types of ore at Tardan's Ore body #26 and Ore zone #3, we did manage well our processing side of things to be able to exceed the plant's designed recovery rate. Summarizing our CIL plant output, almost 298,000 tons of ore were processed through the CIL plant at the higher recovery rate of 93%. As a result, we fully achieved our production targets with the total hard rock gold production in nine months of 2022 amounted to 604 kg. Regarding our alluvial gold mining at Staroverinskaya area, as it was reported in the operational update, our mining contractor unfortunately was not able to get all this equipment in time as breaking logistics caused by the current situation. This, together with delayed start of the gold sands mining because of the late ground defrosting caused the decrease in production. The production amounted to 6.3 kg in the nine months of 2022. Here, we would like to notice that we managed the contractor to stay on site despite the current weather. He will keep mining till end of the year, trying to fulfill the plan. Concluding the production results, I'm glad to say that the properly balanced workflow during the nine months of 2022 allowed us to be in line with our production forecast and produce 610.5 kg or 19,600 ounces of gold. The average cash cost per ounce increased by 53% from $756 per ounce in nine months of 2021 to $1,156 per ounce in the nine months of 2022. This was mainly driven by the ruble strengthening, higher stripping activity, and speculative prices increase from the local suppliers. Yeah. Thank you, Petr. So, l et's continue with you, Alexander. Yeah. Dear shareholders and dear stakeholders, let's move to slide of Tardan gold sales. Sales volume increased by 14% compared to prior year period and amounted to 684 kg of gold. Average selling gold price increased significantly and equal to $1,820. Due to the fact that G7 countries stopped gold import, the company continues sales of gold with discounts to LBMA gold price. This, together with local currency reinforcement against U.S. dollar makes strong negative effect on the company's financial performance. We can move to the next slide. The next slide is income statement. Total gold sales revenue increased by $4.5 million or 13%. That was a result of gold sales volume increase by 76 kg of gold with slight effect of gold price rounds increase up to $1,820. The group cash costs, the group cost of sales increased by 60% mainly as a result of the cash operating expenses increase by 35%. During the reporting period, we increased stripping volumes by 27% in order to getting access to the ore in the future periods. It was mentioned that most of cash operating expenses are denominated in local ruble currency. Significant reinforcement of ruble against U.S. dollar in the current period makes a negative effect on the group margin. The company also met with cost increase for materials, spare parts, fuel, and services. As a result, increased cash operating expenses in line with decreased volume of gold produced led to growth of average cash costs per ounce produced up to $1,156 per ounce. Other operating expenses decreased by $2.5 million, down to $0.2 million in the reporting period. That was due to the fact that in prior year the company accrued waste disposal provision in amount of $2.2 million. The company's financial expenses increased by $0.2 million and amount to $2.7 million. That was caused by interest rate and loan liability to Golden Empire increase. Golden Empire is a group of intercompany. As a result, the company's EBITDA decreased down to $14.8 million, while in prior year period it was equal to $16.6 million, mostly as a result of growth of cash operating expenses. The company's net profit amounted to $9.3 million. We have an increase compared to prior year period, which is mainly caused by reduction of amortization charge. The next slide. As usual, we show our EBITDA bridge slide. We forwarded gold sales volume of 76 kg from 2021 - 2022, which increased gold sales revenue by $4.4 million. We have a slight growth of gold sales price up to $1,820 per ounce. This all was offset by increase of production costs by $6.4 million as a result of increased volume of stripping activities to access the future ore and cost inflation for materials, spare parts, and services. Thus, EBITDA in the reporting period is equal to $14.8 million. Okay, moving to the next slide. Cash flow slide. First of all, I would like to point out that there is difference between income and cash flow statement in sales revenue due to sales shift at the end of the accounting period in the prior year. On September 30th, 2021, we made gold sales. However, cash was received on October 1st. In prior year, we had one day of receivables. Thus, gold sales revenue in accordance with the cash flow increased by $5.6 million compared to prior year. Payments to suppliers increased by $6.6 million as a result of growth of mining activity, significant local currency reinforcement, and process inflation. Income tax paid was equal to $3 million. In prior year, we had tax loss carryforward which allowed to get savings in tax payment, and we paid $1.9 million. Thus, cash flow from operating activities had decreased down to $10.3 million. This cash was used for payments to the bank in amount of $7.8 million. $1.1 million was paid to Kronofogdemyndigheten, a Swedish state authority. Interest and lease payments amounted to $0.5 million per year. Now, I give floor back to Danilo. Yeah. Thank you, Alexander. I would like to say a few words about the outlook for the remaining months of this year. We as a company expect to achieve the annual production forecast and the guidance of around 800 kg of gold. We are continuing to strip heavily in Tardan to get access to future ore bodies. Of course, we are anticipating higher total cash costs caused by the extended mining activities inflation. The company finished the exploration drilling at Bai-Syut area and moved to O re zone #15 in Tardan. There we are aiming to confirm historical data. The results of the Bai-Syut drillings and the confirmation of the historical data we are expecting also by the end of the month. We'll be able to present it at the next reporting period. The company's subsidiaries continue to sell gold with the discount in rather wide bandwidth from 1%-7%, depending to which seller we are able to sell gold. Due to the industrial inflation, the company expects significant cost increases in spare parts, chemicals, all other consumables, and also services. Further costs increases due to governmental new obligations such as the increase in base salaries, which are to be expected to can also affect the results, unfortunately negatively. Otherwise, looking at the geopolitical situation, it's very difficult to make any long-term forecasting, we basically focus on a day-to-day business and try to be as conservative as possible and necessary. Dear shareholders and stakeholders, if you have now any questions, I finished with the outlook for 2022. Please start using the chat facilities and my colleagues and myself, we will be able to answer questions. KB, actually, we didn't put KB into this reporting period because nothing has changed from the last from the six months reporting period, we are still waiting information from the local government when they finally appoint a company to build the electricity line. They're in the process of doing this. There's apparently a tender in process, so we are strongly monitoring it, but there's nothing to be reported otherwise. The tax charge in Q3 seemed quite high. Is that right? Presumably, it's a one-off. In the economy that yes, the tax charge is correct. From the point of gold sales, this period is quite good, due to the fact we've, we forwarded some sales from 2021 - 2022, and then that have a profit, which is taxable. This is why it's quite, it's quite high, but it's correct. In prior year, it was lower due to the fact that we had the tax loss carryforward, which was utilized. Now we cannot use tax loss carry forward anymore, and we pay tax in full. Is there any other questions? Effects on staff, not to an extent that we would need to worry. There was a mobilization drive as everybody understood. Some of our colleagues have been called in, but have not been basically recruited. We are still, let's say, out of the whole overall situation. No, there is no such effect, and nobody has been drafted to the army. All right. I thank you very much for attending the nine months report. We will focus until the end of the year to keep the company running as smoothly as possible and as we have always done in the past. I thank you for attending, and I thank my colleagues for the report. Wish you all a good afternoon. Goodbye and, see you soon. Thank you. Thank you.
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