Kemin Resources Plc Annual Report 2015
Kemin Resources Plc
Annual Report 20 1 5 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
01
Contents
Strategic report
At a glance IFC 
Areas of exploration 01 
Chairman’s statement 02 
Chief Executive Officer’s report 03
Areas of exploration
KAZAKHSTAN
Russia
Russia
Governance
Board of Directors 06
Directors’ report 08
Independent auditor’s report  
to the members of Kemin Resources Plc 11
Financial statements
Consolidated statement of profit or loss 12
Consolidated statement  
of comprehensive income 12
Consolidated statement of financial position 13
Company statement of financial position 14
Consolidated statement of changes in equity 15
Company statement of changes in equity 16
Consolidated statement of cash flows 17
Company statement of cash flows 18
Notes to the financial statements 19
Notice of Annual General Meeting  33
Company details 36
Glossary of terms IBC
 Drozhilovskoye Smirnovskoye 1 2
The Smirnovskoye molybdenum-tungsten copper 
deposit is located in the Karabalyksky rayon, 120km 
north west of the Kostanay oblast and some 41km 
north of Karabalyk, the district centre in northern 
Kazakhstan. The village of Smirnovka is in the 
immediate vicinity of the deposit. The deposit  
area covers approximately 13.7km
2
.
The deposit has been divided into a larger  
northern and a smaller southern zone. Within both 
zones, the principal ore mineral is molybdenite 
which is associated with chalcopyrite and pyrite. 
Other minerals are rare.
The deposit has been studied in less detail than 
Drozhilovskoye, although a 1996, GKZ approved, 
resource estimate produced a combined Category 
C1 and C2 resource for both the larger northern 
and smaller southern zones of approximately 
109Mt at a grade of 0.1378% molybdenum using  
a 0.05% molybdenum equivalent cut-off grade.
A further estimate was undertaken in 2007 
which gave an estimate of 108Mt at a grade of 
0.1056% molybdenum using the same cut-off 
grade. Subsequently, additional drilling has been 
undertaken and the latest GKZ resource estimated 
is presented in the Chief Executive Officer’s report.
The Drozhilovskoye molybdenum-tungsten 
deposit is located in the Denisovski rayon of 
the Kostanayskaya oblast, 55km north east of 
Zhitigara and 31km north west of the rayon centre, 
Denisovka. The small settlement of Okrainka lies 
some 4km from the deposit.
The deposit area covers approximately 6.6km
2
. 
In addition to the molybdenum and tungsten 
content, the deposit is also thought to contain 
quantities of bismuth, beryl, lithium, rubidium, 
caesium, copper, gold and silver.
Since the deposit was discovered in 1964, 
considerable exploration work has taken place 
culminating in the most recent resource statement 
undertaken in 2005 (using the former Soviet 
Union resource and reserve classification system 
common in Central Asia), which estimated a GKZ 
approved Category C1 and C2 resource estimate 
for the northern stockwork of 37.2Mt at 0.107% 
molybdenum and 0.086% tungsten trioxide.
This assumed a 0.05% molybdenum equivalent  
cut-off grade. Importantly, the first resource 
estimate undertaken in 1974 defined a GKZ 
approved estimate for the whole deposit at a 
C2 category of approximately 140Mt at 0.188% 
molybdenum. Subsequently additional drilling 
has been completed and the latest GKZ resource 
estimated is presented in the Chief Executive 
Officer’s report.
1
2 Kemin Resources Plc 
Annual Report 201 5
02
Chairman’s statement
Since I last reported to you there has not been  
any significant change in the prices of our principal 
commodities. However it appears that the prices 
have stabilised, with Molybdenum trading around 
US$16,000/mt. It appears clear to both myself and 
the Board that our current strategy is the correct 
one to maximise the return to shareholders. 
In simple terms our strategy is to put major 
development of the assets on hold whilst at the 
same time putting the Company in a position  
to develop the resource once economic  
conditions improve.
In the current year we have taken steps to  
improve our understanding of our deposits 
performing infill drilling and targeting potentially 
high grade zones for testing, this has been 
complemented by laboratory testing of samples. 
Some improvements have been made to the 
infrastructure but at this stage we are conscious  
of cost control at all levels. In this regard costs 
savings were made at head office in order to 
preserve the cash balances at this time.
The work undertaken was used to underpin our 
licence renewals for both deposits, and a detailed 
programme of exploration works has formed part 
of our application to extend the licences which 
are currently with the relevant ministry. We will 
continue with further exploration and evaluation 
work during the licence renewal process and  
do not anticipate any issues in the grant of  
the licence contract extensions. 
As stated previously, the Board is of the opinion 
that both Drozhilovskoye and Smirnovskoye remain 
very attractive projects for Kemin and, because 
of their relatively high grades, low strip ratios and 
their proximity to the largest steel producer in the 
world, China, they remain outstanding investment 
opportunities. However, given the current pricing 
environment the Board will continue to refine its 
understanding of the resources and to optimise 
the strategy for bringing the commodities into 
commercial production in the medium to long 
term. It is difficult at this stage to give a definitive 
roll out plan to move the Company to the 
production phase, however the Board is  
reassessing the situation on a regular basis.
In the meantime, the Board remains focussed  
on preserving cash and maintaining our low  
cost base where possible. 
The Company will continue to benefit from 
the backing of its major shareholder, which has 
indicated its support for the current strategy  
and will provide finance as and when required.
Kanat Assaubayev 
Chairman 
6 June 2016
“In simple terms our strategy is  
to put major development of the  
assets on hold whilst at the same  
time putting the Company in a  
position to develop the resource  
once economic conditions improve.”
Exploration and evaluation
In the current year we have taken steps to 
improve our understanding of our deposits, 
performing infill drilling and targeting 
potentially high grade zones for testing. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
03
Since our H1 2015 results, where we reported 
that it would not make economic sense to 
accelerate into production our Drozhilovskoye 
and Smirnovskoye deposits given current market 
conditions, we have been undertaking certain 
further work to optimise returns to shareholders  
in the future. During this period we are aware that 
we also need to maintain our focus on keeping  
our operating costs to a minimum, with the aim  
to be able to move quickly once the conditions  
are conducive to the development of the asset.
We are currently in the process of renewing the 
licences for both sites, and have provided all 
the necessary documentation to the relevant 
authorities in Kazakhstan. The normal process 
time tends to span between 9-12 months. We are 
confident we will obtain the necessary licence 
extensions and expect the confirmation of licence 
extension for contract 1605 (Smirnovskoye) in H2 
2016. This licence will run until 2018 with contract 
1606 (Drozhilovskoye) running to 2021.
Licence 1605 recently expired in May 2016 but we 
expect to obtain confirmation in relation to this in 
H2 2016 or H1 2017 at the latest. 
The recent price performance of Molybdenum  
and Tungsten has stabilised with the current  
prices for Molybdenum and Tungsten in the  
region of US$16,000 and US$10,500/mt 
respectively. We do not believe that moving  
the resources to the production phase at these 
prices will deliver the maximum return to 
 our shareholders.
As noted in the 2015 interims, Kemin’s 
management team has been continuing its work 
following up on the recommendations provided 
by consultants for both Drozhilovskoye and 
Smirnovskoye. A number of key actions were 
identified at that stage, and these are forming 
the basis of the current work programme,  
and are expanded on below: 
 ■ further infill drilling of the ore body  
has been undertaken and specific areas  
have been targeted in order to increase  
the resource confidence. During 2015 
19 exploratory holes were drilled on the 
Smirnovskaya prospect, and 34 in the 
Drozhilovskoe deposit with a number  
of core samples being processed. In  
particular further laboratory testing  
has been undertaken into the metallurgy 
properties of tungsten and to identify  
other resources such as lithium, rubidium  
and caesium and their potential value;
 ■ upgrades have been made at both sites  
to the infrastructure to include hydro 
geological works, and upgrades to the 
pumping stations and offices. Further 
work has been undertaken in relation to 
geophysical surveys, topographical studies 
and assessments in relation to environmental 
impact of development and; 
 ■ an updated geological model is being 
completed encompassing the results 
obtained from the additional drilling 
complimented with modelling techniques  
as recommended by the external advisors  
to better understand the available resources.
It is expected that once the geological model  
has been re-assessed and remodelled using 
implicit modelling techniques and further 
metallurgical studies are carried out on tungsten, 
a more detailed pit optimisation and push back 
study will be carried out which we anticipate will 
be completed in H1 2017. This will be key in order 
to better determine the mining options and to 
complete a life of mine plan. It is envisaged that  
the greater depth of information available will 
be used to complete more detailed Competent 
Person’s Report in relation to both deposits.  
The current intention is to finalise the report  
once the work programme is completed, and  
move onto a feasibility study after this stage. 
The key factors now required to move the 
Company forward are out of the Company’s 
control, being the improvement in the price of 
both molybdenum and tungsten. Albeit it is not 
envisaged that the price will return to the levels  
of a few years ago, the Board does believe there  
will be a cyclical upturn in the price sufficient to 
justify the move to development. At this point  
the Company will be well positioned to move 
ahead quickly with the roll out plan to move  
into production.
As reported in the interims a number of 
preliminary discussions were undertaken with 
Chinese groups however there are currently 
no plans to follow up on any of the discussions 
that were held. We still believe that there are 
good opportunities to work with a number of 
interested parties, however the Board is of the 
opinion that this is better undertaken once 
a more defined roll out plan, backed up with 
more detailed information, is developed. 
“The recent price performance of 
Molybdenum and Tungsten has 
stabilised with the current prices  
for Molybdenum and Tungsten 
in the region of US$16,000 and 
US$10,500/mt respectively. We 
do not believe that moving the 
resources to the production 
phase at these prices will deliver 
the maximum return to our 
shareholders.”
Chief Executive 
Officer’s report Kemin Resources Plc 
Annual Report 201 5
04
Chief Executive  
Officer’s report continued
Administrative expenses reduced from 
£340,000 last year to £309,000 in the current 
year, due to cuts at Head Office in the 
support functions of investor relations and 
consultancy, they are set to reduce again  
in the forthcoming year.
Cost control
Financial performance review
The consolidated loss attributable to  
Kemin shareholders in the twelve months  
ended 31 December 2015 was £1,101,000  
(FY 2014: £818,000). The overall loss including  
that attributable to minority shareholders  
was £1,261,000 (2014:£870,000), an increase  
of £391,000.
The increase in the loss is principally a reflection  
of the devaluation of the Kazakh Tenge in the  
year, which saw it reduce in value against the 
Pound and US Dollar by 75% from the start of  
year. The retranslation of the non intercompany 
dollar denominated loans in the subsidiary has 
resulted in forex loss of approximately £575,000 
due to this devaluation. The other principal 
expense relates to finance charges which total 
£377,000. These are accrued charges mainly in 
relation to the borrowings from Amrita, which  
are in line with the prior year. Administrative 
expenses reduced from £340,000 last year  
to £309,000 in the current year, due to cuts  
at Head Office in the support functions of  
investor relations and consultancy, they are  
set to reduce again in the forthcoming year.
As in the prior year the cash spend is kept to 
a minimum at present with a limited capital 
expenditure programme. 
The current cash balances and availability of  
further draw downs on the loan facility if required, 
provides sufficient funds for the company to 
continue to meet its current obligations.
Mineral resource statement as at February 2013
The tables below demonstrate the most recent reserves/ 
resources for the two deposits at a cut-off grade of 
0.05% based on GKZ classifications as follows : 
Drozhilovskoye
     
Reserve Ore reserve/ Molybdenum Molybdenum Tungsten Tungsten 
resource resource metal grade metal grade 
classification (Mt) (kt)  (%) (kt) (%)
C1 139.8 262.9 0.19 64.3 0.05
C2 130.5 77.5 0.06 88.3 0.03
p 300 150 0.05 150 0.05
Smirnovskoye
     
Reserve Ore reserve/ Molybdenum Molybdenum Tungsten Tungsten 
resource resource metal grade metal grade 
classification (Mt) (kt)  (%) (kt) (%)
C1 170.5 221.7 0.13 17.1 0.01
C2 108.1 114.2 0.11 13.2 0.12
p 673 417 0.06 165 0.03 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
05
Key performance indicators
Principal risks and uncertainties
The principal risks exposed to the Company are:
 ■ availability of future funding;
 ■ political and economic environment;
 ■ fluctuation in commodity prices;
 ■ financial risk; 
 ■ the resource differing in grade and quantity  
to that predicted by feasibility studies;
 ■ fluctuations in exchange rates resulting from 
changes in the value of the Kazakh Tenge.
Mitigation of risks and uncertainties
The Company’s management has analysed the  
risks and uncertainties and monitors the risks  
as far as it is practical do so given the early 
development of the Company. 
Certain factors are beyond the control of the 
Company such as the fluctuations in the price  
of the commodities. However the Group is aware  
of these factors and tries to mitigate them as far  
as possible. In relation to the commodity prices,  
we plan to preserve the value of our projects  
until such time as commodity prices recover  
in the future. The current plan is to continue 
exploration of the sites in order to maximise  
the value from exploitation of the resource  
at a later stage.
The Company cannot control the political and 
economic environment of the country in which 
the resources are based. However, to minimise 
the risk, Kemin maintains close relationships with 
the Kazakhstan authorities in order to minimise 
bureaucratic delays and problems.
 31 December 31 December 
 2015 2014
Molybdenum resources (metal equivalent) – C1 (Kt) 484.6 484.6
Tungsten resources (metal equivalent) – C1 (Kt) 81.4 81.4
Molybdenum resources – inferred grade (%) 0.156 0.156
Tungsten resources – inferred grade (%) 0.026 0.026
Cash balance (£000’s) 307 704
Exploration expenditure (cumulative – £000’s) 2070 2,801
Net loss (£000’s) 1,261 870
The Company has no current plans to raise further 
finance at present. However in the future it is 
the Company’s aim is to fix interest rates, where 
possible, with the preferred option being to raise 
funds via equity. As stated the Company has 
sufficient working capital facilities at present  
to meet its current cash flow requirements.
The Company has used independent consultants 
experienced in resource reports, of the type 
required by the Group, to mitigate as far as possible 
any material changes in the resource estimates. 
Key performance indicators
Given the stage of development of the Company,  
the key performance indicators used by the 
management for monitoring progress and strategic 
objectives for the business are set out below: 
Reduction in value of the exploration expenditure 
is due to the effect of the existing devaluation  
of the Kazakh Tenge against Sterling.
The key statistic is the level of resources which 
has been measured under the GKZ classification 
and will be updated under JORC (2012) by an 
independent consultancy once the additional 
exploration and evaluation work is completed.  
This is expected to be completed in H1 2017.
Given the stage of development of the Group, 
it has a low number of employees who are 
concentrated in the head office. Details of the 
Group policy on employees are given on page 09.
The Strategic report was approved and authorised 
by the Board and signed on its behalf by:
Sanzhar Assaubayev
Chief Executive Officer
6 June 2016 Kemin Resources Plc 
Annual Report 201 5
06
Board of Directors
Kemin Resources has 
a highly experienced 
Board of Directors with a 
commitment to driving 
profitability and long-
term shareholder value.
Kanat Assaubayev 
Appointment Kanat Assaubayev 
was appointed to the Board as 
Chairman on 23 October 2013.
Experience Kanat Assaubayev 
is one of Kazakhstan’s leading 
entrepreneurs in the natural 
resources sector. He was the first 
Kazakh to receive a doctorate in 
metallurgy. His early career was 
in academia where he was the 
Chairman of the Metallurgy and 
Mining Department of Kazakh 
National Polytechnic University.  
He subsequently began his business 
career in the 1990s and has led 
a number of natural resources 
enterprises to national and 
international success.
Non-Executive Chairman
Ashar Qureshi
Appointment Ashar Qureshi  
was appointed to the Board as  
Vice Chairman on 7 December 2012.
Experience Ashar Qureshi is a 
London based US qualified lawyer 
who is currently a member partner 
of Freshfields Bruckhaus Deringer 
LLP , a Director of Hanson Asset 
Management Limited and a partner 
of Naya Capital Management LLP . 
He was formerly the Vice Chairman 
of Renaissance Group, where his 
position was a senior investment-
banking role, and prior to that he 
worked with international firm 
Cleary Gottlieb Steen & Hamilton LLP . 
He holds a Juris Doctorate and is  
a graduate of Harvard Law School 
and Harvard College.
Non-Executive Vice Chairman
Sanzhar Assaubayev
Appointment Sanzhar Assuabayev 
was appointed to the Board as Chief 
Executive Director on 17 April 2013.
Experience Sanzhar Assaubayev was 
formerly Director of International 
Affairs of JSC MMC Kazakhaltyn 
and an Executive Director of 
KazakhGold Group Limited, the 
gold mining corporation. He is also 
a member of the board of directors 
of AltynGroup plc. He was educated 
at the Leysin American School in 
Switzerland, where he specialised 
in management, and the American 
University in the United Kingdom. 
Sanzhar Assaubayev is the son  
of Kanat Assaubayev.
Chief Executive Officer Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
07
Go to page 36 to view  
our Company details
Aidar Assaubayev
Appointment Aidar Assaubayev  
was appointed to the Board as  
Non-Executive Director on  
25 February 2013.
Experience Aidar Assaubayev is an 
Executive Director of AltynGroup 
Kazakhstan LLP . He was formerly 
Executive Vice Chairman of 
KazakhGold Limited, the gold 
mining corporation, and he was 
also formerly Vice President and a 
Director of JSC MMC Kazakhaltyn.  
He graduated from the Kazakh 
National Technical University in 
Almaty and he also holds a degree  
in Economics from the Institute  
of Systemic Analysis in Moscow. 
Aidar Assaubayev is the son  
of Kanat Assaubayev.
Non-Executive Director
William Trew
Appointment William Trew  
was appointed to the Board as  
Non-Executive Director on  
20 February 2013. 
Experience William Trew has 
over 32 years of experience in the 
engineering and mining industry 
and is a registered Professional 
Engineer with the Engineering 
Council of South Africa. He holds 
a B.Eng. (Mech.) Hon. from the 
University of Wales Institute  
Science and Technology and  
an M. Eng. from Rand Afrikaans 
University, Johannesburg.
Non-Executive Director
Neil Herbert
Appointment Neil Herbert  
was appointed to the Board as  
Non-Executive Director on  
17 December 2013.
Experience Neil Herbert has a 
wealth of experience managing, 
advising and investing in growth 
companies through business 
expansion, M&A and IPOs. Prior to 
Polo Resources, where he worked 
until 2013, he was Finance Director 
of Galahad, another investment 
company, which achieved an 
average IRR of 66%pa over its 
four year existence. Neil became 
Finance Director of its most 
successful investment which he 
took from start-up to a US$2.5bn 
takeover with Galahad achieving 
an annualised return of 167%. He 
has worked with natural resources 
since joining Antofagasta during its 
1990s transformation into a major 
copper producer with the US$1.3bn 
Los Pelambres and US$0.3bn El 
Tesoro mines taken into production. 
Following that he was CFO of gold 
explorer Brancote until its US$0.4bn 
acquisition. Neil began his career 
working with PwC, he is a Fellow 
of the Association of Chartered 
Certified Accountants and has a BA 
Joint Honours degree in Economics 
& Economic History. He has served 
as a director of companies on 
the AIM, ASX, LSE, JSE and TSX. 
Today Neil works with growth 
companies across sectors and he 
is a founder & chairman of Siderian 
Resource Capital, HeliumOne 
and Anglo African Agriculture.
Non-Executive Director Kemin Resources Plc 
Annual Report 201 5
08
Directors’ report
The Directors present their report and financial statements for the year ended 31 December 2015.
Principal activity and business review
The principal activity of the Company is that of an exploration and mine development company with a trading subsidiary in Kazakhstan. A review of the 
business and future prospects is contained in the Strategic report, which includes information on the Company’s principal risks and uncertainties and 
performance indicators to the extent they are relevant at this stage of the Company’s development. Although the financial statements are prepared on  
a going concern basis, reference should be made to the ability of the Company to continue trading as noted below.
Going concern and the availability of project finance
The Group’s principal assets are the molybdenum and tungsten deposits at Drozhilovskoye and Smirnovskoye in Kazakhstan. The exploration and evaluation 
work conducted so far indicate substantial economic exploitable reserves. The NPV obtainable will be dependent on the price obtainable for the commodities, 
however even at the current low levels the indicative NPV is positive.
Once a decision is made to proceed to commercial production the Company will access the requirements for future funding and implement a strategy  
to raise the project finance required for the long-term development needs of the Company.
As at 31 December 2015, the Group had cash on hand of £307,000 and at the reporting date the Group’s liabilities exceeded its assets by £2,246,000.
The parent Company has an agreement with Amrita Investment Limited, a company incorporated in the British Virgin Islands and ultimately controlled  
by the Assaubayev family, for the provision of an unsecured £7,000,000 loan facility to be applied towards working capital requirements. At present there  
is still a facility of approximately £4.6m available under this facility. 
The loan is repayable on the earlier of the fifth anniversary of the agreement or when an equity fundraising is undertaken that raises at least £5,000,000 (before 
expenses) at which point the Lender may choose to convert the loan into the ordinary shares of the Company at the conversion rates stipulated by the agreement.
The Directors anticipate that while they may seek to raise further finance in the future it now has access to sufficient funds for its immediate need,  
and have therefore prepared these financial statements on a going concern basis.
Corporate structure
Kemin Resources Plc is a public company limited by shares that is incorporated in England and Wales. The subsidiaries of the Company are listed below:
Name of company Country of incorporation Nature of trade Shareholding
GMA (MALTA) Ltd Malta Dormant owned 100% by Kemin Resources Plc
Joint Venture Kazakh-Russian Mining Company LLP (KRMC) Kazakhstan Mining activities owned 90% by Lother Enterprises Limited
Lother Enterprises Limited England  Dormant owned 100% by Kemin Resources Plc
Results and dividends
The results of the Company for the year ended 31 December 2015 are set out in the consolidated statement of comprehensive income and a commentary  
on the results is included in the Strategic report. The Group incurred losses in the year of £1,261,000 (2014: £870,000), in the course of developing its principal 
mining assets in Kazakhstan. The Directors do not recommend the payment of a dividend (2014: £Nil).
Directors
The Directors holding office during the year and up to the date of this report are set out below:
Kanat Assaubayev  Non-Executive Chairman
Ashar Qureshi   Non-Executive Vice Chairman
Sanzhar Assaubayev  Chief Executive Officer
Aidar Assaubayev  Non-Executive Director
Ken Crichton   Non-Executive Director (resigned 4 May 2016) 
William James Trew  Non-Executive Director
Neil Herbert  Non-Executive Director
Directors’ insurance
The Company has entered into an insurance policy to indemnify the Directors of the Company against any liability when acting for the Company.
Substantial shareholdings
The following entities had disclosable interests of 3% or more of the nominal value of the Company’s ordinary shares as at the date of this report.
      Shareholding  % 
Shareholder      ordinary shares  owned
Bergfolk Corporation       133,117,846  76.14
The Bank of New York (Nominees) Limited       12,954,271  7.4
Morgan Stanley Client Securities Nominees Limited      8,970,000  5.1 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
09
Financial risk management
Information relating to the Group’s financial risk management is set out in note 14 of the financial statements.
Employees
The Group has a policy of providing opportunities for training, career development and promotion to all employees in accordance with their skills and abilities. 
The Group supports the recruitment of disabled persons where possible. Priority is given to those who become disabled during their employment.
The Group endeavours to keep all employees informed on matters affecting them and takes into account the views of employees wherever possible.
Charitable and political contributions
There were no charitable or political contributions made in the year ended 31 December 2015 (2014: £Nil).
Directors’ emoluments
Details of Directors’ emoluments for the Group for the year are as follows:
      2015 2014
      Fee Fee
      £’000 £’000
Kanat Assaubayev       – –
Ashar Qureshi       – –
Sanzhar Assaubayev       – –
Aidar Assaubayev       – –
Ken Crichton      27 27
William James Trew       – –
Neil Herbert       27 27
Total       54 54
Service contracts
The Non-Executive Directors have contracts with a rolling one-month notice period which may be given by either party.
The Company’s policy on Executive Director Remuneration is to attract and retain high quality executives by paying competitive remuneration packages 
relevant to each Director’s role and experience and the external market.
The key management personnel comprises the Directors.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Strategic report, the Directors’ report, the Annual Report and the financial statements in accordance with 
applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group 
financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. Under Company law the Directors 
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the 
loss of the Group for that period. The Directors are also required to prepare financial statements in accordance with the rules of the London Stock Exchange for 
companies trading securities on the Alternative Investment Market.
In preparing these financial statements, the Directors are required to:
 ■ select suitable accounting policies and then apply them consistently;
 ■ make judgments and accounting estimates that are reasonable and prudent;
 ■ state whether they have been prepared in accordance with IFRSs as adopted by the European Union or United Kingdom Accounting Standards, 
subject to any material departures disclosed and explained in the financial statements;
 ■ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s and Group’s transactions and 
disclose with reasonable accuracy at any time the financial position of the Company and Group and enable them to ensure that the financial statements 
comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking 
reasonable steps for the prevention and detection of fraud and other irregularities. Kemin Resources Plc 
Annual Report 201 5
10
Directors’ report
continued
Website publication
The Directors are responsible for ensuring the Annual Report and the financial statements are made available on a website. Financial statements are published 
on the Company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which 
may vary from legislation in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the Directors which extends  
to the ongoing integrity of the financial statements contained therein.
Communications with shareholders are considered important by the Directors. The Directors regularly speak to investors and analysts during the year.
Press releases have been issued throughout the year, a website www.keminresources.com is regularly updated and contains a wide range of information  
about the Company.
Corporate governance
The Directors are aware of the UK Corporate Governance Code (“the Code”) (formerly the Combined Code), the new edition of which was published by the UK 
Financial Reporting Council in September 2012 and is applicable to all premium listed companies on the London Stock Exchange. As a company which is listed 
on AIM, the Company is not required to comply with the Code, but the Directors intend to comply with its main provisions as far as is practicable having regard 
to the size of the Group.
Board composition and committees
The Directors who served during the year are shown on pages 6 and 7.
The Directors have responsibility for the overall corporate governance of the Group and recognise the need for the highest standards of behaviour and 
accountability. The Directors are committed to the principles underlying best practice in corporate governance and intend to comply with the principles  
of the UK Corporate Governance Code in such respects as they consider appropriate for a company of its size and nature. The Board has a wide range  
of experience directly relevant to the Group and its activities and its structure ensures that no one individual or group dominates the decision making.
At each Annual General Meeting, one third of the Directors must retire by rotation, whereupon they can offer themselves for re-election if eligible.
The Company has established an Audit Committee which is responsible for ensuring that the financial performance of the Group is properly reported  
and monitored, considering and setting adequate and appropriate accounting policies and reviewing the Auditor’s report. The Audit Committee comprises  
two Directors who are considered to be independent, being Non-Executive Director Neil Herbert and Non-Executive Vice Chairman Ashar Qureshi.
Internal controls
The Board acknowledges that it is responsible for establishing and maintaining the Group’s system of internal controls and for reviewing its effectiveness.
The procedures which include, inter alia, financial, operational and compliance matters and risk management are reviewed on an ongoing basis. The internal 
control system can only provide reasonable and not absolute assurance against material misstatement or loss. The Directors do not believe an internal audit 
function is practicable for a company of this size.
Likely future developments
Details of likely future developments are set out in the Chief Executive Officer’s Report.
Subsequent events
Details of events after the end of the financial year are set out in note 19 on page 32 of the financial statements.
Auditors
All of the current Directors have taken all of the steps that they ought to have taken to make themselves aware of any information needed by the Company’s 
auditors for the purpose of their audit and to establish that the auditors are aware of this information. The Directors are not aware of any relevant audit 
information of which the auditors are unaware.
This confirmation is given and should be interpreted in accordance with the provisions of s418(2) of the Companies Act 2006.
BDO LLP have expressed their willingness to continue in office as auditors and a resolution to reappoint them will be proposed in the forthcoming  
Annual General Meeting.
Annual General Meeting
The Annual General Meeting of the Company will be held at the offices of BDO LLP , 55 Baker Street London, W1U 7EU on 29 June 2016 at 11.00am.
The Directors consider that all of the resolutions to be put to the meeting are in the best interests of the Company and its shareholders as a whole.  
The Board recommends that shareholders vote in favour of all resolutions.
The Directors’ report has been approved by the Board and signed on its behalf by:
Sanzhar Assaubayev
Chief Executive Officer
6 June 2016 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
11
Independent auditor’s report  
to the members of Kemin Resources Plc
We have audited the financial statements of Kemin Resources Plc for the year ended 31 December 2015 which comprise the consolidated statement of profit 
or loss, the consolidated statement of comprehensive income, the consolidated statement of financial position, the Company statement of financial position, 
the consolidated statement of changes in shareholders’ equity, the Company statement of changes in shareholders’ equity, the consolidated statement of cash 
flows, the Company statement of cash flow and the related notes. The financial reporting framework that has been applied in the preparation of the group 
financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent 
company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been 
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, 
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the statement of Directors’ responsibilities, the Directors are responsible for the preparation of the financial statements and for being 
satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council’s (FRC’s) Ethical Standards 
for Auditors. 
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the FRC’s website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion: 
 ■ the financial statements give a true and fair view of the state of the Group’s and the parent company’s affairs as at 31 December 2015 and of the Group’s loss for 
the year then ended;
 ■ the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
 ■ the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied  
in accordance with the provisions of the Companies Act 2006; and
 ■ the financial statements have been prepared in accordance with the requirements of the Companies Act 2006; and, as regards the Group financial statements, 
Article 4 of the IAS Regulation.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and Directors’ report for the financial year for which the financial statements are prepared  
is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
 ■ adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches  
not visited by us; or
 ■ the parent company financial statements and the part of the Directors’ remuneration report to be audited are not in agreement with the accounting  
records and returns; or
 ■ certain disclosures of Directors’ remuneration specified by law are not made; or
 ■ we have not received all the information and explanations we require for our audit.
Scott Knight (senior statutory auditor)
For and on behalf of BDO LLP , statutory auditor
London
United Kingdom
6 June 2016
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Kemin Resources Plc 
Annual Report 201 5
12 Kemin Resources Plc 
Annual Report 201 5
12
Consolidated statement of profit or loss
year ended 31 December 2015
Consolidated statement  
of comprehensive income
year ended 31 December 2015
      Year ended Year ended
      31 December 31 December
      2015  2014 
     Notes £’000 £’000
Administrative expenses     3 (309) (340)
Operating loss      (309) (340)
Finance income     5 – 1
Finance expense     5 (952) (531)
Loss before income tax      (1,261) (870)
Income tax expense     6 – –
Loss for the year      (1,261) (870)
Loss for the year attributable to:
Equity shareholders of the parent      (1,101) (818)
Non-controlling interest     8 (160) (52)
      (1,261) (870)
Loss per ordinary share – basic and diluted
Attributable to the equity shareholders of the parent – basic    7 (0.62p) (0.5p)
      2015 2014
      £’000 £’000
Loss for the year      (1,261) (870)
Items which may be re-classified to statement of profit or loss
Currency translation differences arising on translations of foreign operations that may be reclassified to the profit or loss  (8) 121
Total comprehensive loss      (1,269) (749)
Total comprehensive loss attributable to: 
Owners of the parent      (1,210) (703)
Non-controlling interest      (59) (46)
      (1,269) (749)
The accompanying notes are an integral part of these financial statements. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
13
Consolidated statement  
of financial position
year ended 31 December 2015
      Year ended Year ended
      31 December 31 December
      2015 2014
     Notes £’000 £’000
Assets
Non-current
Intangible assets     9 2,070  2,801 
Property, plant and equipment     10 14  26 
Other non-current assets     11 145  152 
Restricted cash      3  6 
Non-current assets      2,232  2,985 
Current
Other receivable      15  32 
Cash and equivalents      307  704 
       322   736 
Total assets       2,554   3,721 
Liabilities
Non-current 
Borrowings     13 2,873  2,773 
Other liabilities      –  5 
Non-current liabilities      2,873 2,778
Current
Trade and other payables     12 1,376 1,319 
Borrowings     13 551 592 
Current liabilities      1,927 1,911 
Total liabilities      4,800 4,689 
Net liabilities      (2,246)  (968)
Equity
Equity attributable to owners of the parent     
Ordinary share capital     15 1,748  1,748 
Deferred share capital     15 6,168  6,168 
Share premium account      37,414  37,414 
Merger reserve      (41,682)  (41,682)
Share based payment reserve      1,105  1,105 
Other reserve      912  921 
Retained earnings      (7,792)  (6,691)
Currency translation reserve      52  161 
       (2,075)  (856)
Non-controlling interest      (171)  (112)
Total equity       (2,246)  (968)
The financial statements were approved by the Board of Directors on 6 June 2016 and were signed on its behalf by:
Sanzhar Assaubayev
Chief Executive Officer
The accompanying notes are an integral part of these financial statements. Kemin Resources Plc 
Annual Report 201 5
14
Company statement of financial position
year ended 31 December 2015
      Year ended Year ended
      31 December 31 December
      2015 2014
Company number 04674237     Notes £’000 £’000
Assets
Non-current
Amount due by subsidiary company     8 1,990  1,639 
Non-current assets      1,990  1,639 
Current
Other receivables      14  31 
Cash and equivalents      293  676 
       307   707 
Total assets       2,297   2,346 
Liabilities
Non-current 
Loans and borrowings     13 (2,206)  (2,036)
Non-current liabilities      (2,206) (2,036)
Current
Trade and other payables     12 (84) (72)
Current liabilities      (85) (72)
Total liabilities      (2,291) (2,108)
Net assets/(liabilities)      6  238 
Equity
Equity attributable to owners of the parent     
Ordinary share capital     15 1,748  1,748 
Deferred share capital     15 6,168  6,168 
Share premium account      37,414  37,414 
Merger reserve      52,654  52,654 
Other reserve      396  405 
Retained earnings      (98,374)  (98,151)
Total equity       6   238
 
The financial statements were approved by the Board of Directors on 6 June 2016 and were signed on its behalf by:
Sanzhar Assaubayev
Chief Executive Officer
The accompanying notes are an integral part of these financial statements. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
15
Consolidated statement  
of changes in equity
year ended 31 December 2015
     Share    Attributed
 Ordinary Deferred    based  Accu-  to owners Non-
 share share Share  Merger  payment Other mulated Translation  of the controlling
 capital capital premium reserve reserve reserve losses reserve parent interest Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2014 1,520 6,168 35,693 (41,682) 1,105 702 (5,873) 46 (2,321) (66) (2,387)
Loss for the year – – – – – – (818) – (818) (52) (870)
Currency translation differences arising  
 on translation of foreign operations – – – – – – – 115 115 6 121
Total comprehensive loss – – – – – – (818) 115 (703) (46) (749)
Shares issued in the year 228  – 1,824  – – – – – 2,052  – 2,052
Share issue expenses – – (103)  – – – – – (103)  – (103)
Contribution from related party – – – – – 219  – – 219  – 219
At 31 December 2014 & 1 January 2015 1,748  6,168  37,414  (41,682)  1,105  921  (6,691)  161  (856)  (112)  (968) 
Loss for the year – – – – – – (1,101) – (1,101)  (160) (1,261)
Currency translation differences arising  
 on translation of foreign operations – – – – – – – (109) (109)  101 (8)
Total comprehensive loss – – – – – – (1,101) (109) (1,210) (59) (1,269)
Contribution to related party – – – – – (9) – – (9) – (9)
At 31 December 2015 1,748  6,168  37,414  (41,682)  1,105  912  (7,792)  52  (2,075)  (171)  (2,246) 
Ordinary share capital: Amount subscribed for share capital at nominal value.
Deferred shares: The shares carry no right to receive income distributions or entitle the shareholders to attend or vote at company meetings.
Share premium: Amount subscribed for share capital in excess of nominal value.
Merger reserve: Represents the amount arising on the acquisition of KRMC.
Share based payment reserve: This relates to an adjustment required under IFRS 2 to account for the reverse takeover.
Other reserve: The premium between the effective interest rate and coupon rate on the loan issued by a related party. This is credited to equity  
and subsequently released to the profit or loss over the remaining life of the financial liability.
Accumulated losses: Cumulative losses recognised in the consolidated statement of comprehensive income.
Translation reserve: Gains/losses arising on retranslating the net assets of overseas operations into sterling. 
The accompanying notes are an integral part of these Company financial statements. Kemin Resources Plc 
Annual Report 201 5
16
Company statement of changes in equity
year ended 31 December 2015
 Ordinary Deferred 
 share share Share  Merger Other Retained
 capital capital premium reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2014 1,520 6,168 35,693 52,654 186 (97,833) (1,612)
Loss for the period – – – – – (318) (318)
Total comprehensive loss – – – – – (318) (318)
Shares issued in the year 228  – 1,824  – – – 2,052 
Share issue expenses – – (103) – – – (103) 
Contribution from related party – – – – 219  – 219 
At 31 December 2014 & 1 January 2015 1,748  6,168  37,414  52,654  405  (98,151)  238 
Loss for the period – – – – – (223) (223)
Total comprehensive loss – – – – – (223) (223)
Contribution to related party – – – – (9)  – (9) 
At 31 December 2015 1,748  6,168  37,414  52,654  396  (98,374)  6
Ordinary share capital: Amount subscribed for share capital at nominal value.
Deferred shares: The shares carry no right to receive income distributions or entitle the shareholders to attend or vote at company meetings.
Share premium: Amount subscribed for share capital in excess of nominal value.
Merger reserve: Amount related to the acquisition of KMRC.
Other reserve: The premium between the effective interest rate and coupon rate on the loan issued by a related party. This is credited to equity  
and subsequently released to the profit or loss over the remaining life of the financial liability.
Accumulated losses: Cumulative losses recognised in the consolidated statement of comprehensive income.
The accompanying notes are an integral part of these Company financial statements. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
17
Consolidated statement  
of cash flows
year ended 31 December 2015
      Year ended Year ended
      31 December 31 December
      2015 2014
     Notes £’000 £’000
Net cash outflow from operating activities     17  (339)  (740)
Investing activities
Advances paid      –   (947)
Additions to intangible assets      –   (4)
Net cash used in investing activities      –   (951)
Financing activities
Proceeds from borrowings      –   949 
Repayment of borrowings       (58)  (514)
Proceeds on issue of shares      –   2,052 
Expenses on issue of shares      –   (103)
Net cash inflow from financing activities       (58)  2,384 
(Decrease)/increase in cash and cash equivalents       (397)  693 
Cash and cash equivalents at the beginning of period      704   11 
Cash and cash equivalents at the end of period       307   704 
The accompanying notes are an integral part of these Company financial statements. Kemin Resources Plc 
Annual Report 201 5
18
Company statement of cash flows 
year ended 31 December 2015
      Year ended Year ended
      31 December 31 December
      2015 2014
     Notes £’000 £’000
Net cash outflow from operating activities     17  (259)  (1,272)
Financing activities
Proceeds from borrowings      –   949 
Repayment of borrowings       (58) (961) 
Net loans to subsidiary       (66) –
Proceeds on issue of shares      – 2,052
Expenses on issue of shares      – (103)
Net cash (outflow)/inflow from financing activities       (124)  1,937 
(Decrease)/increase in cash and cash equivalents      (383)  665 
Cash and cash equivalents at the beginning of period     676  11 
Cash and cash equivalents at the end of period      293  676 
The accompanying notes are an integral part of these Company financial statements. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
19
Notes to the financial statements
year ended 31 December 2015
1. Accounting policies
Nature of operations and general information
The Group’s principal activity is that of mining, exploration and mine development. The parent company principal activity is managing the trade and the 
investment of its subsidiary company. It is incorporated in England and Wales and has its registered office and business address at 28 Eccleston Square,  
London, SW1V 1NZ. The shares of Kemin Resources Plc are quoted on the AIM market which is operated by the London Stock Exchange.
Basis of preparation
The Group’s consolidated financial statements are for the year ended 31 December 2015. They have been prepared in accordance with the accounting policies 
set out below.
The Group prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The parent company has taken advantage of the exemption under section 408 (3) of the Companies Act 2006 and has not presented its Statement of profit  
or loss in these Financial Statements. The Parent Company’s loss for the year ended 31 December 2015 is £223,000 (2014: £318,000).
The consolidated financial statements have been prepared under the historical cost basis. They are presented in Pounds Sterling and are rounded to the nearest 
thousand (£’000) except where otherwise noted.
The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It also requires Group 
management to exercise judgment in applying the Group’s accounting policies. The areas where significant judgments are estimates have been made  
in preparing the financial statements and their effect are disclosed in note 2.
Going concern
As at 31 December 2015, the Group had cash on hand of £307,000 and at the reporting date the Group’s liabilities exceeded its assets by £2,246,000.
The parent Company has an agreement with Amrita Investment Limited, a company incorporated in the British Virgin Islands and ultimately controlled  
by the Assaubayev family, for the provision of an unsecured £7,000,000 loan facility to be applied towards working capital requirements. At present there  
is still a facility of approximately £4.6m available under this facility. 
The loan is repayable on the earlier of the fifth anniversary of the agreement or when an equity fundraising is undertaken that raises at least £5,000,000  
(before expenses) at which point the Lender may choose to convert the loan into the ordinary shares of the Company at the conversion rates stipulated  
by the agreement.
The Directors anticipate that while they may seek to raise further finance in the future it now has access to sufficient funds for its immediate need,  
and have therefore prepared these financial statements on a going concern basis.
New accounting standards and amendments
The International Accounting standards Board (IASB) has issued the following new and revised standards, amendments and interpretations to existing standards 
that are not effective for the financial year ending 31 December 2015 and have not been adopted early:
 ■ IFRS 9 – Financial Instruments;
 ■ IFRS 15 – Revenue from Contracts with Customers;
 ■ IFRS 16 – Leases;
 ■ Amendments to IAS 1 – Presentation of Financial Statements Disclosure Initiative;
 ■ Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and Amortisation;
 ■ Amendments to IFRS 11 – Accounting amendments relating to acquisitions of interests in joint operation.
The effect of these standards and amendments is still being assessed, as they may have a significant effect on the Group’s future financial statements.
Basis of consolidation
Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are 
present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. 
Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.
The consolidated financial statements present the results of the Company and its subsidiaries (the “Group”) as if they formed a single entity. Intercompany 
transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement of financial position,  
the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of the acquired 
operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are de-consolidated from 
the date control ceases. Kemin Resources Plc 
Annual Report 201 5
20
Notes to the financial statements
continued
1. Accounting policies continued
Capital reorganisation between JV Kazakhstan-Russian Mining Company LLP (KRMC) and Kemin Resources Plc
In 2013 the Company completed the acquisition of 90 per cent of the participatory interests in the charter capital of JV Kazakhstan-Russian Mining Company LLP 
(‘KRMC’), a company registered in the Republic of Kazakhstan, in a share for share exchange.
At the time of the transaction the Company was a non-operating public shell company with nominal net assets and did not meet the definition of a business. 
This transaction is therefore not a business combination, as defined by IFRS 3, and has been accounted for as a capital transaction resulting in issuance of shares 
by KRMC for the net monetary assets of the Company accompanied by recapitalisation. Such transactions fall within the scope of IFRS 2 which requires the 
deemed shares issued by KRMC to be recognised at fair value.
Although not a business combination, the accounting result is similar to that obtained by accounting for the transaction under the reverse accounting method, 
but it does not result in the recognition of goodwill.
The following accounting treatment has been applied in respect of the above capital reorganisation:
 ■ the assets and liabilities of the legal subsidiary, KRMC, are recognised and measured in the consolidated financial statements at the pre-combination carrying 
amounts without restatement to fair value;
 ■ the deemed cost of the shares issued by the Company represents the fair value of the shares that KRMC would have had to issue for the ratio of ownership 
interest in the combined entity to be the same, if the transaction had taken the legal form of KRMC acquiring 90% of the shares in Kemin;
 ■ the retained deficit and other equity balances recognised in the consolidated financial statements reflect the retained deficit and other equity balances of 
KRMC immediately before the business combination, and the results of the period from the date of the reorganisation are those of KRMC and Kemin combined;
 ■ the equity structure appearing in the consolidated financial statements reflects the equity structure of the legal parent, Kemin Resources Plc, including  
the equity interests the legal parent issued to effect the combination.
Segmental reporting
In the opinion of the Directors, who are regarded as the chief operating decision maker, the Company has one business activity, being the exploration for,  
and development of the molybdenum, copper and tungsten deposits in Kazakhstan.
The Board of Directors consider there to be only one operating segment, the exploration and development of mineral resources and only one geographical 
segment, being Kazakhstan. Therefore no additional segmental information is presented.
Foreign currency translation
Transactions entered into by the Group entities in currencies other than the currency of the primary economic environment in which they operate (their 
“functional currency”) are recorded at the rates ruling when the transactions occurred. The functional currency of KMRC is the Kazakh Tenge which is the 
currency of KMRC’s primary economic environment in which it operates. Foreign currency monetary assets and liabilities are translated at the rates ruling  
at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit  
or loss. Retranslation of dollar denominated loans in the subsidiary are taken to the profit and loss account and shown in finance expenses.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place.  
All assets and liabilities of overseas operations are translated at the rates ruling at the reporting date. Exchange differences arising on translating the opening 
net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign 
exchange reserve.
On disposal of foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date  
of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss on disposal.
Financial instruments
Financial assets and liabilities are recognised in the statement of financial position when the Company becomes party to the contractual provision  
of the instrument.
Financial assets
The Company classifies its financial assets only as loans and receivables. These are non-derivative financial assets with fixed or determinable payments that are 
not quoted in an active market. They arise principally through the provision of goods and services to customers (trade receivables), but also incorporate other 
types of contractual monetary assets (other receivables). They are initially recognised at fair value plus transaction costs that are directly attributable to their 
acquisition or issue, and are subsequently carried at amortised costs using the effective interest rate method, less provision for impairment. 
Financial assets are assessed for indicators of impairment at reach reporting date. Financial assets are impaired where there is objective evidence that, as a result 
of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the asset have been impacted. 
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits, and other short-term highly liquid investments with original maturities of less than 
three months and which are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value; for the purposes  
of statement of cash flows, cash and cash equivalents also include bank overdrafts.  Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
21
1. Accounting policies continued
Investments and loans to subsidiaries
Investments in subsidiaries are included at cost less amounts written off. Loans to subsidiaries are initially recognised at fair value and subsequently measured  
at amortised costs.
Financial liabilities
The Company classifies its financial liabilities into one of the following categories according to the substance of the contractual arrangements entered into: 
 ■ bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing 
liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to 
repayment is charged at a constant rate on the balance of the liability carried in the statement of financial position. Interest expense includes initial transaction 
costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is not settled;
 ■ liability components of convertible loan notes are measured as described further below;
 ■ trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using  
an effective interest method;
 ■ loans from related parties are initially recognised at fair value and subsequently at amortised cost using the effective interest method. Any discount  
between the proceeds and fair value is credited to other reserve as a capital contribution in the statement of changes in equity.
The Company does not have any financial liabilities measured at fair value through profit or loss and does not have any financial liabilities in qualifying  
hedging relationships. 
Convertible debt
The proceeds received on issue of the Company’s convertible debt are allocated into their liability and equity components. The amount initially attributed to 
the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that does not include 
an option to convert. Subsequently, the debt component is accounted for as a financial liability measured at amortised cost until extinguished on conversion 
of maturity of the bond. The remainder of the proceeds is allocated to the conversion option and is recognised in other reserves within the shareholders’ equity, 
net of income tax effects. 
Share capital
Financial instruments used by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. 
The Company’s ordinary shares are classified as equity instruments and are recorded at proceeds received, net of direct issue costs. 
Exploration and evaluation assets
Exploration and evaluation assets comprise of exploration and evaluation expenditure incurred on projects where insufficient work has been performed  
to confirm whether significant mineralisation exists or whether the project is economically feasible. Costs are capitalised as intangible assets until the decision  
is made to proceed to development, whereupon the related expenditures are transferred to non-current assets as mining properties unless the projects  
are determined not to be commercially viable, whereupon the related costs are written off to the statement of comprehensive income. Depreciation  
on non-current assets used on exploration and evaluation projects is capitalised. Exploration and evaluation assets are not amortised.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount may exceed the recoverable amount. 
In accordance with IFRS 6 the Group firstly considers the following facts and circumstances in their assessment of whether the Group’s exploration and 
evaluation assets may be impaired: 
 ■ whether the during the period the licence has expired or will expire in the near future, and is not expected to be renewed;
 ■ whether substantive expenditure on further exploration for and evaluation of mineral resources in a specific area is neither budgeted nor planned;
 ■ whether sufficient data exists to indicate that although a development in a specific area is likely to proceed, the carrying amount of the exploration and 
evaluation assets period for which the Group has the right to explore in a specific area has expired;
 ■ is unlikely to be recovered in full from successful development or by sale.
If any such facts or circumstances are noted the Group must perform an impairment test in accordance with the provisions of IAS 36, assessing the recoverable 
amount of the exploration and evaluation assets together with all development and production assets, as a single cash generating unit (CGU). The aggregate 
carrying value is compared against the expected recoverable amount of the CGU. The recoverable amount is the higher of value in use and the fair value less 
costs to sell.
Any exploration and evaluation impairment loss would be recognised in the income statement and separately disclosed.
Pre-licence costs are recognised as an expense in the statement of comprehensive income as incurred.
Expenditure on research activities are recognised as an expense in the statement of comprehensive income as incurred. Kemin Resources Plc 
Annual Report 201 5
22
Notes to the financial statements
continued
1. Accounting policies continued
Property, plant and equipment
Property, plant and equipment is recorded at cost net of accumulated depreciation and any provision for impairment. Depreciation is provided to write  
off the cost of such assets other than land over their useful economic lives on a straight line basis. The periods generally applicable are:
Buildings 5% per annum
Machinery and equipment Between 5% and 20% per annum
Impairment of assets
The carrying amount of non-current assets is compared to the recoverable amount of the assets whenever events or changes in circumstances indicate  
that the net book value may not be recoverable. The recoverable amount is the higher of value in use and the fair value less costs to sell.
In assessing the value in use, the expected future cash flows from the assets is determined by applying a discount rate to the anticipated pre-tax future cash 
flows. Impairment is recognised in the statement of comprehensive income to the extent that the carrying amount exceeds the assets’ recoverable amount. 
The revised carrying amounts are depreciated/amortised in line with accounting policies.
A previously recognised impairment loss is reversed if the recoverable amount increases as a result of a reversal of the conditions that originally resulted in the 
impairment. The reversal is recognised in the profit and loss and is limited to the carrying amount that would have been determined, net of depreciation, had 
no impairment loss been recognised in prior reporting years.
Assets are grouped at the lowest levels for which there are separately identifiable cash flows (“cash generating units”) for the purposes of assessing impairment. 
The estimates of future discounted cash flows are subject to risks and uncertainties including the future commodity prices. It is therefore reasonably possible 
that changes could occur which may affect the recoverability of assets.
Income taxes
Current income tax assets and liabilities comprise those obligations to fiscal authorities in the countries in which the Company carries out its operations.  
They are calculated according to the tax rates and tax laws applicable to the fiscal period and the country to which they relate provided they are enacted  
or substantively enacted by the reporting date. All changes to current tax liabilities are recognised as a component of tax expense in the profit or loss.
Deferred income taxes are calculated using the liability method on temporary differences. This involves the comparison of the carrying amount of assets and 
liabilities in the consolidated financial statements with their respective tax bases. However, deferred tax is not provided on the initial recognition of goodwill, 
nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit.
Deferred tax liabilities are always provided for in full. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be 
available against which the temporary differences can be utilised. Deferred tax assets and liabilities are calculated at tax rates that are expected to apply  
to their respective period of realisation, provided they are enacted or substantively enacted at the reporting date.
Provisions
A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation as a result of a past event,  
and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by 
discounting the expected future cash flows at a pre-tax rate that reflect current market assessments of the time value of money and, where appropriate,  
the risks specific to the liability. Unwinding of the discount is recognised as finance expense in the statement of comprehensive income as it occurs.
Provisions are made for the estimated rehabilitation/decommissioning costs relating to areas disturbed during the mines’ operation up to the reporting date 
but not yet rehabilitated. Such provisions are been made in accordance with local legislation.
The estimated cost of rehabilitation includes the current cost of re-contouring, top-soiling and re-vegetation in accordance with legislative requirements. 
Changes in estimates are dealt with on a prospective basis as they arise.
2. Critical accounting estimates and judgements
The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historic experience 
and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may 
differ from these estimates and assumptions.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next 
financial year are discussed below.
(i)  Carrying values of exploration and evaluation assets and property, plant and equipment
The Company monitors internal and external indicators of impairment relating to its exploration and evaluation assets and property, plant and equipment. 
Management has considered whether any indicators of impairment have arisen over certain assets relating to the Company’s mining operations. After assessing 
these, management has concluded that no impairment has arisen in respect of these assets during each year.
(ii) Decommissioning and rehabilitation
The ultimate decommissioning and site restoration costs are uncertain and can be impacted by changes to legislation, restoration techniques and changes  
to the expected timing of closure resulting from changes to ore reserves. As a result there could be significant adjustments to the provisions established which 
would affect future results. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
23
2. Critical accounting estimates and judgements continued
(iii) Base of mining operations
The Company’s primary base of operations is in Kazakhstan. Kazakhstan’s economy continues to display certain characteristics of an emerging market.  
These characteristics include, in particular, inconvertibility of the national currency in most countries outside of Kazakhstan and relatively high inflation rates. 
The Kazakh tax, currency and customs legislation is subject to varying interpretations and frequent changes. The financial information has been prepared  
on the assumption that no significant adverse changes to the economic, regulatory and fiscal environment will arise.
(iv) Fair value of financial instruments
The Group determines the fair value of financial instruments that are not quoted, based on estimates using present values or other valuation techniques. Those 
techniques are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. Where market prices are not readily 
available, fair value is either based on estimates obtained from independent experts of quoted market prices of comparable instruments. In that regard, the 
derived fair value estimates cannot be substantiated by comparison with independent markets and, in many cases, could not be realised immediately.
(v) Income taxes
The Group is subject to income tax in Kazakhstan and significant judgement is required in determining the provision for income taxes. During the ordinary 
course of business, there are any transactions and calculations for which the ultimate tax determination is uncertain. As a result, tax liabilities are recognised 
based on estimates of whether additional taxes and interest will be due. These tax liabilities are recognised, when, despite the Group’s belief that its tax return 
positions are supportable, the Group believes that certain positions are likely to be challenged and may not be fully sustained upon review by tax authorities.
3. Operating loss
This is stated after charging:
      2015 2014
      £’000 £’000
Staff costs (note 4)       57  59
Fees payable to the Company’s auditors for the audit of the company and group financial statements    33  30 
Fees payable to the auditors of the Company’s subsidiary      – 11
4. Staff number and costs
The average number of persons (including Directors) employed by the Group during the year was:
      2015 2014
      Number Number
By activity
Administration      7 8
      2015 2014
      £’000 £’000
Staff costs (including Directors)
Wages and salaries       57  59
       57  59
Two Directors were paid an amount of £27,000 each at total of £54,000 (2014: £54,000). During the current and prior year the Directors were the only key 
management personnel.
5. Finance income and expenses
      2015 2014
      £’000 £’000
Finance income
Interest on unsecured convertible loan stock – net of conversion     –  1 
Finance expense
Interest expense      173 115
Unwinding of discount      204 252
Foreign exchange loss      575 164
      952 531 Kemin Resources Plc 
Annual Report 201 5
24
Notes to the financial statements
continued
6. Income tax expense
There is no tax charge/credit in the year due to losses incurred by the Group, which are not currently being recognised as a deferred tax asset due  
to uncertainty over the recoverability of such losses in the foreseeable future.
      2015 2014
      £’000 £’000
Loss before tax       (1,259)  (870)
Loss before tax multiplied by the standard rate of corporation tax in the UK of 20.00% (2014: 21.25%)
       (271)  (185)
Effect of:
Income not subject to tax      –  (2)
Different tax rates in overseas territory      –  5 
Unrecognised tax losses carried forward      271  182 
Total tax charge for year      – –
The parent company has tax losses of £1,231,000 available to carry forward (2014: £810,000). Tax losses arising in the subsidiary in Kazakhstan are only 
recognised on commencement of commercial production. The potential deferred tax asset related to tax losses is £246,000 (2014: £162,000), no deferred  
tax asset has been recognised as the future profitability of the Company is uncertain.
7. Loss per share
      2015 2014
Basic and fully diluted loss per share
Loss for the year attributable to the equity holders of the parent entity (£’000)     (1,101)  (818)
Weighted average number of shares in issue      174,833,041  163,430,889 
Loss per share attributable to the equity holders of the parent entity     (0.62p) (0.5p)
Where a loss has been incurred the diluted loss per share does not differ from the basic loss per share as the conversion of the convertible loan would have  
the effect of reducing the loss per share and are therefore not dilutive under the terms of IAS 33.
8. Investments
The Company has the following investments in subsidiary undertakings:
Name of company Country of incorporation Nature of trade Shareholding
GMA (MALTA) Ltd Malta Dormant owned 100% by Kemin Resources Plc
Joint Venture Kazakh-Russian Mining Company LLP (KRMC)  Kazakhstan Mining activities owned 90% by Kemin Resources Plc
Lother Enterprises Limited England Dormant owned 100% by Kemin Resources Plc
       Subsidiary loan
       £’000
1 January 2014       603
Loans to subsidiary       961
Foreign exchange movements       75
31 December 2014 and 1 January 2015       1,639
Loans to subsidiary       178
Foreign exchange movements       173
31 December 2015       1,990
The loans, which are denominated in US Dollars, represent investments into the subsidiaries and in the opinion of the Directors the aggregate value of  
the investments in the subsidiaries is not less than the amount shown in these financial statements. The Directors review the intercompany borrowings  
on a regular basis, together with the associated cash flows of each company, and consider that no impairment is required.
The recent loans to subsidiaries are charged at a fixed interest rate of 5% and are repayable giving twelve months notice by the lender, and these are also 
included within fixed assets. The foreign exchange movement on the loans/investments to subsidiaries is to revalue the amounts which are denominated  
in US Dollars to the year end exchange rate. The movement is reflected within the income statement of the parent company and is treated as part of the  
net investment in the subsidiary and on consolidation is taken to the translation reserve. Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
25
8. Investments continued
Non controlling interests
KRMC, a 90% owned subsidiary of the Company has material non-controlling interests (NCI).
Summarised financial information in relation to KRMC, before intra-group eliminations, is presented below together with amounts attributable to NCI:
      2015 2014
For the period ended 31 December      £’000 £’000
Administrative expenses      (20)  (36)
Operating loss      (20)  (36)
Finance expenses      (905)  (352)
Loss before tax      (925)  (388)
Tax expense      –  – 
Loss after tax      (925)  (388)
Loss allocated to NCI      (160)  (52)
Other comprehensive income allocated to NCI      101 6
Total comprehensive loss allocated to NCI      (59)  (46)
Dividends paid to NCI      – –
Cash flows from operating activities      (66)  (393)
Cash flows from investing activities      –  (26)
Cash flows from financing activities      66  446 
Foreign exchange translation      (14)  – 
Net cash (outflows)/inflows      (14)  27 
      2015 2014
As at 31 December      £’000 £’000
Assets
Intangible assets      1,724 2,182
Property, plant and equipment      13 25
Other non-current assets      132 157
Trade and other debtors      16 1
Cash and cash equivalents      14 27
Liabilities
Trade and other payables      (1,291) (1,258)
Loans and other borrowings      (2,318) (2,255)
Accumulated non-controlling interests at 10%      (171) (112)
9. Intangible assets
     Contract Contract
     No. 1605 No. 1606 Total
Exploration & evaluation assets     £’000 £’000 £’000
Cost
At 1 January 2014     405 1,580 1,985
Additions     348 599 947
Exchange difference     (19) (112) (131)
At 31 December 2014 & 1 January 2015     734 2,067 2,801
Additions     291 446 737
Exchange difference     (481) (987) (1,468)
At 31 December 2015      544 1,526 2,070 Kemin Resources Plc 
Annual Report 201 5
26
Notes to the financial statements
continued
9. Intangible assets continued
Exploration and evaluation assets relate to the capitalised licence costs and subsequent exploration expenditure incurred in respect of the Smirnovskoe  
deposit (licence No. 1605) and the Drozhilovskoye deposit (licence No. 1606 awarded to KRMC in December 2004 for the exploration and production of 
tungsten, molybdenum and copper at the Smirnovskoe and the Drozhilovskoye deposit respectively. 
Licence No. 1605: The exploration subsoil contract has expired in September 2015. All necessary documentation has been submitted to the relevant Ministry  
for extension of the contract until March 2018. The extension for the contract is expected to be signed in H2 2016 or H1 2017.
Licence No. 1606: The exploration subsoil contract has expired in May 2016. The Group has applied for the extension of the exploration contract. According  
to the underlying contract the Group has a legal right to extend the exploration contract for a period not exceeding 2 years.
Both deposits are located in Kostanay region of Kazakhstan.
10. Property, plant and equipment
     Land and Machinery and
     buildings equipment Total
     £’000 £’000 £’000
Cost
At 1 January 2014     4 82 86
Additions     – 4 4
Exchange difference     (7) (7) –
At 31 December 2014 & 1 January 2015     4 79 83
Exchange difference     – (36) (36)
At 31 December 2015     4 43 47
Depreciation
At 1 January 2014     (3) (58) (61)
Charge for the year     (1) (2) (3)
Exchange difference     – 5 5
At 31 December 2013 & 1 January 2014     (1) (56) (57)
Charge for the year     – (2) (2)
Exchange difference     – 26 26
At 31 December 2014     (1) (32) (33)
Net book values
At 31 December 2015     3 11 14
At 31 December 2014     3 23 26
At 1 January 2014     1 24 25
11. Other non-current assets
     Company  Group
    2015 2014 2015 2014 
    £’000 £’000 £’000 £’000
Other receivables and prepayments    –  – 145 152
    –  – 145  152
Other receivables of £129,000 (2014: £123,000) included within non-current assets for 2015 and 2014 relate to an amount recoverable in relation to Value Added Tax, 
which will be recovered upon successful development and operation of the Group’s projects.  Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
27
12. Trade and other payables
     Company  Group
    2015 2014 2015 2014
Current    £’000 £’000 £’000 £’000
Trade payables    32 38  1,163  1,092
Other payables and accruals    52 34  213  227
    84 72  1,375  1,319
    2015 2014 2015 2014
Non-current     £’000  £’000 £’000 £’000
Trade payables    – – – –
Other payables and accruals    – –  –  5
    – –  –  5
13. Loan and borrowings
       Company
    Interest  2015 2014
    rate Maturity £’000 £’000
Non-current liabilities
Borrowings – Amrita Investments Limited    LIBOR +5% 2018  2,206   2,036
       2,206   2,036 
Amrita Investment Limited, is a company incorporated in the British Virgin Islands and ultimately controlled by Assaubayev family, it entered into an agreement 
for the provision of an unsecured £7,000,000 loan facility to be applied toward the Group’s working capital requirements. 
The loan from Amrita Investments Limited bears an interest rate of LIBOR +5%. The loan is repayable on the earlier of the fifth anniversary of the agreement or 
when an equity fundraising is undertaken that raises at least £5,000,000 (before expenses) at which point the Lender may choose to convert the loan into the 
ordinary shares of the Company at the conversion rates stipulated by the agreement. The loan may also be terminated at an earlier date by mutual agreement 
between the parties.
       Group
    Interest  2015 2014
Current   Currency rate  Maturity £’000 £’000
AlmaSnabResours LLP   KZT 0% on demand  72   128 
Lanochkin S.S. (related party – note 18)   KZT 0% on demand  32   56 
Storm continental SA   USD 5% on demand  273   253 
Central Asia Mining Corp.   USD 10% on demand  174   155 
Non-current – (related party – note 18)       551   592 
Hawkinson Capital INC   USD 20% 2021  437   378 
Hawkinson Capital INC   KZT 0% 2021  157   244 
Altyn MunaiGaz LLP   KZT 0% 2021  73   115 
Amrita Investment Limited   £ LIBOR +5% 2018  2,206   2,036 
       2,873   2,773 
Financial liabilities refer to unsecured interest and non interest bearing loans received from related parties and other companies. Interest-free loans are initially 
recognised at fair value, and subsequently accounted at amortised cost using the effective interest rate.
The effective interest rates used to measure fair value of the interest-free loans were the interest rates on long-term loans granted in Kazakhstan. The Kazakhstan 
bank rates were applied at the date of receipt of the next tranche under the interest-free loan, which ranged from 10.0% to 10.8% (2014: from 10.0% to 10.8%).
As per Addendum dated 29 October 2008 to the loan agreement signed with Hawkinson Capital INC, 20% interest has not been accrued since 29 October 2008.
Loans provided as short-term are past due. As at the reporting date and signing date of the financial statements the Company had not agreed with the lenders 
on repayment dates of past due financial liabilities, these amounts are currently being negotiated.
All non-current loans as noted above are controlled by the ultimate owners and agreements are currently in place or have been obtained to reschedule 
repayment of the debts to a period at least one year from the date of these financial statements.  Kemin Resources Plc 
Annual Report 201 5
28
Notes to the financial statements
continued
14. Financial risk management objectives and policies
The Company’s principal financial liabilities comprise unsecured loans and other payables which are measured at amortised cost or fair value. Its principal 
financial assets comprise cash deposits in banks and other receivables which are all categorised as loans and receivables. These instruments arise from the 
Company’s investing and borrowing activities. Fair values are not significantly different to book value.
The Company is exposed to market risk by virtue of holding financial liabilities and assets. The Board reviews and agrees policies for managing the risks  
arising from the holding of these instruments, such as changes in interest rates and liquidity risks. The Company does not:
 ■ actively engage in trading of financial assets for speculative purposes;
 ■ buy or sell derivative securities or contracts; or
 ■ execute financial instruments or contracts to hedge its exposure to exchange rates or interest rates. The most significant financial risks to which  
the Group is exposed are described below.
a) Liquidity risk
The Group had £307,000 of net bank balances at the year-end (2014: £704,000). The Directors monitor cash flow on a regular basis as the company is in the 
development stage the cash flows are predictable on a monthly basis. The Company is currently utilising the working capital facility as provided by Amrita 
Investment Limited. Given the present level of contractual commitments the funds available are adequate for the Company’s requirements.
The table below summarises the maturity profile of the Group’s and Company’s financial liabilities at 31 December 2015 based on contractual  
undiscounted payments:
   Less than More than More than
   1 year 1 year but  2 years but 
   or on less than less than More than
   demand 2 years 5 years 5 years Total
Group   £’000 £’000 £’000 £’000 £’000
2015
Trade payables    1,163  – – –  1,163 
Other creditors and accruals    213  – – –  213 
Borrowings    551   667   2,206  – 3,424 
    1,927   667   2,206   –   4,800 
2014
Trade payables    1,092   –   –   –   1,092 
Other creditors and accruals    227   –   –   –   227 
Borrowings    592   737   2,036   5   3,370 
    1,911   737   2,036   5   4,689 
   Less than More than More than
   1 year 1 year but  2 years
   or on less than but less More than
   demand 2 years than 5 years 5 years Total
Company   £’000 £’000 £’000 £’000 £’000
2015
Trade payables   32 – – –  32 
Other creditors and accruals   53 – – –  53 
Borrowings   – –  2,206  –  2,206 
   85 –  2,206  –  2,291 
2014
Trade payables    38   –   –   –   38 
Other creditors and accruals    34   –   –   –   34 
Borrowings    –   –   2,036   –   2,036 
    72   –   2,036   –   2,108 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
29
14. Financial risk management objectives and policies continued
b) Interest rate risk
The Group and Company has floating rate obligations. However, the sensitivity of the Group or Company to changes in the base rate is not considered material.
c) Forex risk
The Group credit risk arises from fluctuations in foreign currency exchange rates due to the significant proportion of the KRMC’s funding being in Pound 
Sterling, whilst KRMC’s principal operating costs are denominated in Kazakh Tenge which is KMRC’s functional currency. There is no forex risk in the Company 
as the principal costs are incurred in British Pounds with the funding in Pounds. As the operating costs are at low levels at present the credit risk is not material, 
however it is the intention to minimise the effect of foreign currency fluctuations for the Group and Company by maintaining its cash reserves in sufficient 
quantum in currencies it expects to incur expenditure. All USD denominated liabilities are held in the subsidiary KRMC. The amounts due in foreign currencies is 
noted below:
    British US  Kazakh 
    Pound Dollar Tenge Total
Group 2015    £’000 £’000 £’000 £’000
Loans and receivables at amortised cost
Cash and cash equivalents     293  –  14   307 
Other receivables     14   –  1  15 
     307   –   15   322 
Financial liabilities held at amortised cost
Trade payables     32  –  1,131   1,163 
Other creditors and accruals     52   –   161   213 
Loans and borrowings     2,206   884   334   3,424 
     2,290   884   1,626   4,800 
    British US  Kazakh 
    Pound Dollar Tenge Total
Group 2014    £’000’s £’000 £’000 £’000
Loans and receivables at amortised cost
Cash and cash equivalents    676 – 28 704
Other receivables    31 – 1 32
    707 – 29 736
Financial liabilities held at amortised cost
Trade payables    38 – 1054 1,092
Other creditors and accruals    34 112 86 232
Loans and borrowings     2,036   787   542   3,365 
     2,108   899   1,682   4,689 
    British US  Kazakh 
    Pound Dollar Tenge Total
Company 2015    £’000 £’000 £’000 £’000
Loans and receivables at amortised cost
Cash and cash equivalents     293  – –  293 
Amount due from subsidiary     –   1,990  –  1,990 
Other receivables     14   –   –   14 
     307   1,990   –   2,297 
Financial liabilities held at amortised cost
Trade payables     32  – –  32 
Other creditors and accruals     53   –   –   53 
Loans and borrowings     2,206   –   –   2,206 
     2,291   –   –   2,291 Kemin Resources Plc 
Annual Report 201 5
30
Notes to the financial statements
continued
14. Financial risk management objectives and policies continued
c) Forex risk continued
    British US  Kazakh 
    Pound Dollar Tenge Total
Company 2014    £’000 £’000 £’000 £’000
Loans and receivables at amortised cost
Cash and cash equivalents     676   –   –   676 
Amount due from subsidiary    – 1,639 – 1,639
Other receivables    31 – – 31
     707   1,639   –   2,346 
Financial liabilities held at amortised cost
Trade payables     38  – –  38 
Other creditors and accruals     34  – –  34 
Loans and borrowings     2,036  – –  2,036 
     2,108   –   –   2,108 
The effect of a 20% strengthening/depreciation of the British Pound against the US Dollar or Kazakh Tenge at the reporting date on the British Pound 
denominated payables carried at that date with all other variables remaining constant, result in the following effect on the Group’s and Company’s losses  
and net liabilities is shown below:
      2015 2014
      British British
      Pound Pound
Group      £’000 £’000
BP£ appreciation by 20%       (325)  (149)
BP£ depreciation by 20%       325   149 
      2015 2014
      British British
      Pound Pound
Company      £’000 £’000
BP£ appreciation by 20%      (454) (164)
BP£ depreciation by 20%      454 164
d) Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders, 
benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Management considers as part of its capital, the 
financial sources of funding from shareholders and third parties with an equity investment in the Group. Currently the Company is dependent upon its principal 
shareholders for funding via its facility with Amrita as detailed in note 13. The current capital structure is set out below:
      2015 2014
      £’000 £’000
Share capital       7,916   7,916
Share premium       37,414   37,414 
Total managed as capital       45,330   45,330 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
31
15. Share capital
Ordinary shares
Issued and fully paid Ordinary 1p shares:
      Number £000’s
1 January 2015 & 31 December 2015       174,833,041   1,748 
Deferred shares
Issued and fully paid Ordinary 499p shares:
      Number £000’s
1 January 2015 & 31 December 2015       616,776,994   6,168 
16. Capital commitments and contingent liabilities
The Group had the following capital commitments and contingent liabilities at the reporting date:
KRMC had a commitment to perform obligations under the exploration work programs amounting to £831,000 (KZT 414m). The work was to be performed  
for the exploration period ended December 2015. Approximately 69% of the work program commitments were met, however as the current licences are  
being renewed there is no further obligation to complete the work programme, and a schedule of works under the new licence is currently in the process  
of being agreed.
KRMC has a commitment to provide professional training of the Kazakhstan staff as follows. During the exploration period 0.1% of the exploration costs, 
production period – 0.1% of the direct operating costs of production. Currently there are no payables under this obligation.
Transfer annually 1% of the exploration costs and 0.01% of the direct operating costs of production to a special deposit account for formation of abandonment 
fund, in 2015 an amount of £Nil – KZT Nil was transferred, (2014: £3,570 – KZT 1,000,000). 
The Company had no capital commitments or contingent liabilities at the reporting date.
17. Notes to the cash flow statement
     Company  Group
    2015 2014 2015 2014
    £’000 £’000 £’000 £’000
Loss before taxation    (221) (318) (1,261) (870)
Adjusted for:
Finance expenses    217 191 377 367
Interest received    (56) (14) – –
Depreciation of tangible assets    – – 2 1
Decrease in trade and other receivables    (36) (31) (56) (145)
Increase/(decrease) in trade and other payables    10 (1,039) 24 (257)
Foreign currency translation    (173) (61) 575 164
    (259) (1,272) (339) (740) Kemin Resources Plc 
Annual Report 201 5
32
18. Related party transactions
For the purposes of this financial information, parties are considered to be related if one party has the ability to control or exercise significant influence over the 
other party in making financial or operational decisions as defined by IAS 24 “Related Party Disclosures” . In considering each possible related party relationship, 
attention is directed to the economic substance of the relationship, not merely the legal form. In the normal course of business the Group enters into 
transactions with its shareholders, Directors, and other related parties.
The key management remuneration is shown in note 4.
Other related party transactions and related balances outstanding at each reporting year are as noted in note 13, being loans made to the Group by Companies 
controlled by the Assaubayev family.
      2015 2014
      £’000 £’000
Group
Shareholder loans to subsidiary
AltynMunaiGaz LLP       92   135 
Hawkinson Capital INC       690   718 
Lanochkin S.S.       32   56 
Shareholder loans to parent company
Amrita Investment Limited       2,384   2,318 
       3,198   3,227 
Company
Shareholder loans to parent company
Amrita Investment Limited       2,384   2,318 
       2,384   2,318 
The amounts above include the element attributable to the value of loans that have been allocated to equity.
19. Ultimate controlling party
The controlling party and parent entity of Kemin Resources Plc is Bergfolk Corporation, by virtue of the fact that it owns 76.14% of the voting rights of the 
voting rights of the Company. The ultimate controlling party is the Assaubayev family by virtue of the fact that they control the majority shareholder.
20. Events after the reporting date
In April 2015 the Company applied to the Ministry for Investment and Development in Kazakhstan for an extension of the exploration period for the 
contract No. 1605 until the end of 2018. The decision in relation to the award of the extension for contract is expected in H2 2016. It also applied to the same 
department in relation to contract, No. 1606 in March 2016. This contract expired during May 2016, and an application to extend the licence to 2021 is currently 
pending with a decision also expected in H2 2016.
Notes to the financial statements
continued Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
33
Notice is hereby given that the Annual General Meeting of Kemin Resources Plc (the “Company”) will be held at the offices of BDO LLP , 55 Baker Street,  
London, W1U 7EU on 29 June 2016 at 11:00am for the following purposes:
Ordinary Business
1. To receive and adopt the report of the Directors and the audited financial statements for the year ended 31 December 2015 and the report  
of the auditors.
2. To re-appoint, as a Director of the Company, Kanat Assaubayev, who retires in accordance with Article 101 of the Company’s Articles of Association  
and offers himself for re-appointment.
3. To re-appoint, as a Director of the Company, Ashar Qureshi, who retires in accordance with Article 101 of the Company’s Articles of Association  
and offers himself for re-appointment.
4. To appoint BDO LLP as auditors of the Company to hold office from the conclusion of the Annual General Meeting until the conclusion of the next Annual 
General Meeting of the Company at which financial statements are laid and to authorise the Directors of the Company to determine their remuneration.
Special Business
To consider, and if thought fit, to pass the following resolutions, of which Resolution 5 will be proposed as an Ordinary Resolution and Resolution  
6 will be proposed as a Special Resolution:
5. THAT the Directors be and they are hereby generally and unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the “Act”),  
in substitution for all previous powers granted to them, to exercise all the powers of the Company to allot shares in the Company or grant rights  
to subscribe for or convert any security into shares in the Company (“Rights”) up to an aggregate nominal amount of £582,776.00 and such authority 
shall, unless previously revoked or varied by the Company in general meeting, expire on the conclusion of the Annual General Meeting of the Company 
provided that the Company may, at any time before such expiry, make an offer or enter into an agreement which would or might require shares  
to be allotted or Rights to be granted after such expiry and the Directors may allot shares or grant Rights pursuant to any such offer or agreement  
as if the authority conferred hereby had not expired.
6. THAT, conditional on the passing of Resolution 5 above, the Directors be and they are hereby empowered pursuant to Section 570 of the Act,  
in substitution for all previous powers granted to them, to allot equity securities (as defined in Section 560 of the Act) for cash pursuant to the authority 
conferred by Resolution 5 above as if Section 561(1) of the Act did not apply to any such allotment, provided that this power shall be limited to:
(a) the allotment of ordinary shares in connection with an issue in favour of shareholders in proportion (or as nearly as may be practicable) to  
the respective number of ordinary shares in the capital of the Company held by them on the record date for such allotment but subject to such 
exclusions or other arrangements as the Directors may deem necessary or expedient in relation to fractional entitlements, record dates or legal  
or practical problems in or under the laws of any territory, or the requirements of any recognised regulatory body or any stock exchange; and
(b) the allotment (otherwise than pursuant to sub-paragraph (a) above) of further equity securities up to an aggregate nominal amount  
of £349,666, and this power shall, unless previously revoked or varied by special resolution of the Company in general meeting, expire  
at the conclusion of the Annual General Meeting of the Company.
The Company may, before such expiry, make offers or agreements which would or might require equity securities to be allotted after such expiry and  
the Directors are hereby empowered to allot equity securities in pursuance of such offers or agreements as if the power conferred hereby had not expired.
BY ORDER OF THE BOARD
Rajinder Basra
Company Secretary
6 June 2016
Notice of Annual General Meeting Kemin Resources Plc 
Annual Report 201 5
34
1. Members are entitled to appoint a proxy to exercise all or any of their rights to attend and to speak and vote on their behalf at the meeting. A proxy need 
not be a shareholder of the Company. A shareholder may appoint more than one proxy in relation to the meeting provided that each proxy is appointed  
to exercise the rights attached to a different share or shares held by that shareholder. To appoint more than one proxy you may photocopy the form  
of proxy. A proxy form which may be used to make such appointment and give proxy instructions accompanies this notice. 
2. Please indicate the proxy holder’s name and the number of shares in relation to which they are authorised to act as your proxy (which, in aggregate,  
should not exceed the number of shares held by you). Please also indicate if the proxy instruction is one of multiple instructions being given. All forms  
must be signed and should be returned together in the same envelope. 
 If you do not give your proxy an indication of how to vote on any resolution, your proxy will vote or abstain from voting at his or her discretion.  
Your proxy will vote (or abstain from voting) as he or she thinks fit in relation to any other matter which is put before the meeting.
3. To be valid, the enclosed form of proxy and the power of attorney or other authority (if any) under which it is signed or a certified copy of such power  
or authority must be lodged at the offices of the Company’s registrars, Neville Registrars at Neville House, 18 Laurel Lane, Halesowen, West Midlands,  
B63 3DA, or sent by post, so as to be received not less than 48 hours before the time fixed for the holding of the meeting or any adjournment thereof  
(as the case may be).
4. The completion and return of a form of proxy will not preclude a member from attending in person at the meeting and voting should he wish to do so.  
If you have appointed a proxy and attend the meeting in person, your proxy appointment will automatically be terminated.
5. Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the register of members at 6:00pm on  
27 June 2016 shall be entitled to attend and vote at the meeting in respect of the number of ordinary shares of 1p each in the capital of the Company held 
in their name at that time. Changes to the register after 6:00pm on 27 June 2016 shall be disregarded in determining the rights of any person to attend and 
vote at the meeting. If the Annual General Meeting is adjourned, the time by which a person must be entered on the register of members of the Company 
in order to have the right to attend and vote at the adjourned meeting is no later than two business days prior to the meeting.
6.  To change your proxy instructions either submit a new proxy appointment form or initial any amendments to the original proxy form. Note that the  
cut-off time for receipt of proxy appointments also applies in relation to amended instructions; any amended proxy appointment received after the relevant 
cut-off time will be disregarded.
 If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will take precedence.
7.  In order to revoke a proxy instruction you will need to inform the Company by sending a signed hard copy notice clearly stating your intention to revoke 
your proxy appointment to Neville Registrars at Neville House, 18 Laurel Lane, Halesowen, West Midlands, B63 3DA. In the case of a member which is  
a company, the revocation notice must be executed under its common seal or signed on its behalf by an officer of the company or an attorney for the 
company. Any power of attorney or any other authority under which the revocation notice is signed (or a duly certified copy of such power or authority) 
must be included with the revocation notice.
 In either case, the revocation notice must be received by the Company no later than 11:00am on 27 June 2016.
 If you attempt to revoke your proxy appointment but the revocation is received after the time specified then, subject to note 4, your proxy appointment  
will remain valid.
8.  In the case of joint holders, the vote of the senior joint holder, whether in person or by proxy, will be accepted to the exclusion of the votes of other joint 
holders. Seniority will be determined by the order in which the joint holders stand in the register of members.
9. As at 3 June 2016 (being the latest practicable date prior to the publication of this document), the Company’s issued share capital consists of 174,833,041 
ordinary shares of £0.01 each and which each carry one vote. Therefore, the total voting rights in the Company as at 3 June 2016 are 174,833,041.
10. A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all its powers as a member provided 
that, on a poll, if more than one corporate representative purports to exercise powers over the same share as another corporate representative, that power 
will be treated as not exercised.
Notes to the Notice of Annual General Meeting Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
35
11.  Except as provided above, members who have general queries about the Meeting should contact rajinder@aglocore.com (no other methods  
of communication will be accepted).
 You may not use any electronic address provided either:
 ■ in this Notice of Annual General Meeting; or 
 ■ any related documents (including the proxy form),
 to communicate with the Company for any purposes other than those expressly stated.
12. Resolutions 2 and 3 – Article 101 of the Company’s Articles of Association requires that one third (or the number nearest to, but not greater than,  
one third) of the Directors of the Company who are subject to retire by rotation in accordance with Article 102, must retire and, if they are eligible,  
offer themselves for re-election.
13. Resolution 5 – This resolution, to be proposed as an Ordinary Resolution, relates to the grant to the Directors of the authority to allot ordinary shares  
and grant rights to subscribe for or convert securities into ordinary shares with such authority expiring at the conclusion of the Annual General Meeting  
of the Company, unless the authority is renewed or revoked prior to such time. This authority is limited to the issue of a maximum of 58,271,855 ordinary 
shares representing one third of the Company’s entire issued ordinary share capital as at the date of this notice.
14. Resolution 6 – The Act requires that if the Directors decide to allot ordinary shares in the Company the shares proposed to be issued be first offered  
to existing shareholders in proportion to their existing holdings. This is known as shareholders’ pre-emption rights. However, to act in the best interests 
of the Company the Directors may require flexibility to allot shares for cash without regard to the provisions of Section 561(1) of the Act. Therefore this 
resolution, to be proposed as a Special Resolution, seeks authority to enable the Directors to allot equity securities for cash free of such pre-emption  
rights, with such authority expiring at the conclusion of the Annual General Meeting of the Company to be held in 2016. This authority is limited  
to the allotment of a maximum of 34,966,600 ordinary shares representing 20% of the Company’s entire issued ordinary share capital as at the date  
of this notice. Kemin Resources Plc 
Annual Report 201 5
36
Company details
Directors
Kanat Assaubayev  Non-Executive Chairman
Ashar Qureshi  Non-Executive Vice Chairman
Sanzhar Assaubayev  Chief Executive Officer
Aidar Assaubayev  Non-Executive Director
William James Trew  Non-Executive Director
Neil Herbert  Non-Executive Director
Secretary
Rajinder Basra FCA
Registered office
28 Eccleston Square
London
SW1V 1NZ
Telephone: +44 (0) 207 932 2455
Web
www.keminresources.com
Kazakhstan office
18B
Satpayev Street
Almaty 050018
Republic of Kazakhstan
Telephone: +7 727 3121672
Nominated adviser and broker
Strand Hanson Limited
26 Mount Row
Mayfair
London W1K 3SQ
Telephone: +44 (0) 20 7409 3494
Auditors to the Group
BDO LLP
55 Baker Street London W1U 7EU
Telephone: +44 (0) 20 7486 5888
BDO Kazakhstanaudit, LLP 
56 “A” , micro region 6 
Almaty city, 050036 
Registrars
Neville Registrars
18 Laurel Lane
Halesowen
West Midlands B63 3DA
Telephone: +44 (0) 121 585 1131
Bankers
LGT Bank
Herengasse 12
FL-9490 Vaduz
Liechtenstein
Telephone: +423 235 11 22 Strategic report
Governance
Financial statements
Kemin Resources Plc 
Annual Report 201 5
Glossary of terms
The tenor or concentration by weight of a metal in a mineral deposit or ore.
Metres above sea level.
Australasian code for the reporting of exploration results, mineral resources and ore reserves (Joint Ore Reserves 
Committee). See www.jorc.org/main.php 
A concentration or occurrence of solid material of economic interest in such form, grade (or quality), and quantity that 
there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity 
and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological 
evidence and knowledge, including sampling. 
That part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are 
estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine 
planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately 
detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations 
such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) 
continuity between points of observation where data and samples are gathered. An Indicated Mineral Resource has a 
lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable 
Ore Reserve.
That part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited 
geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade 
(or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate 
techniques from locations such as outcrops, trenches, pits, workings and drill holes. An Inferred Mineral Resource has 
a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an 
Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated 
Mineral Resources with continued exploration.
The economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and 
allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-
Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate 
that, at the time of reporting, extraction could reasonably be justified. The reference point at which Reserves are 
defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that, in all 
situations where the reference point is different, such as for a saleable product, a clarifying statement is included to 
ensure that the reader is fully informed as to what is being reported.
The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource.  
The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying  
to a Proved Ore Reserve.
A term used to describe mineral resources and mineable reserves which are not static as additional resource 
delineation is not yet complete, and engineering calculations are pending. As such what might be a mineral resource 
today may be a mineable reserve tomorrow.
Grade
masl
JORC code
Mineral resource
Indicated resource
Inferred resource
Ore reserve
Probable reserve
Mineral inventory
GKZ is a classification system used within CIS states. This system classifies mineralisation estimates into seven categories 
of three major groups, based on the level of exploration performed into Explored Reserves (A, B, C1), Evaluated 
Reserves (C2) and Prognostic Resources (P1, P2, P3). These categories are based on the degree of reliability of data and 
their comparative importance to the national economy. 
GKZ
Design & production
www.carrkamasa.co.uk Kemin Resources Plc Annual Report 2015
Kemin Resources Plc
28 Eccleston Square
London
SW1V 1NZ
www.keminresources.com