Kemin Resources Plc Annual Report 2014
Kemin Resources Plc
Annual Report 20 1 4 Kemin Resources Plc  Annual Report 2014
At a glance
Welcome to Kemin Resources Plc 
//Strategic report
Kemin Resources Plc (AIM:KEM) is an 
exploration and development company; 
its principal mining assets are located in 
northern Kazakhstan.
Kemin Resources Plc (AIM: KEM) was formed into its present structure  
in May 2013 with the reverse take-over of GMA Resources plc by the  
Joint Venture Kazakh-Russian Mining Company LLP (KRMC).
The Company is focussed on developing its two molybdenum and tungsten 
deposits – Drozhilovskoye and Smirnovskoye. Each of the deposits is assessed 
to have significant value.
Kemin’s 90% owned Kazakh entity, KRMC is the developer and future operator 
of the two subsoil licences that allows mining to take place at each deposit.
Both deposits are located in north west Kazakhstan.
To read more about Kemin Resources Plc, please visit our website 
www.keminresources.com
Highlights
• Completion of £2.05m fundraising in June 2014 to advance the work 
programme, and supportive strategic shareholder in place to support 
ongoing activities.
• Drozhilovskoye and Smirnovskoye supported locally and have been 
included in State Programme on Accelerated Industrial Innovative 
Development (SPAIID).
• Progression of Competent Persons Report (CPR) to establish resources 
under JORC (2012). The final CPR results for both deposits are expected 
to be released in Q3 2015.
• Investigation underway as to the possibility of a one million tonne per 
year pilot plant as a quick route to cash flow.
• The Company has also reviewed its ongoing cost commitments and as 
one of the cost-cutting measures undertaken it was decided that it was 
not in the Company’s interests to retain the services of the joint broker 
Peat & Co., at the current time. Kemin Resources Plc  Annual Report 2014 01
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Strategic report  
At a glance IFC
Areas of exploration 01
Chairman’s statement 02
Chief Executive Officer’s report 03
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 17
Notes to the consolidated financial statements 18
 
Company details 33
Glossary of terms 34
Contents Areas of exploration
CHINA
RUSSIA
TURKEY
IRAQ
AFGHANISTAN
TURKMENISTAN
IRAN
UZBEKISTAN
KYRGYZSTAN
TAJIKISTAN
NORTH
KOREA
SYRIA
JORDAN
ISRAEL
LEBANON
KUWAIT
SAUDI
ARABIA
OMAN
QATAR
UNITED
ARAB
EMIRATES
UKRAINE
BELARUS
MOLDOVA
RUSSIA
LITHUANIA
LATVIA
ESTONIA
RUSSIA
RUSSIA
MONGOLIA
PAKISTAN
CHINA
Yenisey
Obʼ
I n d u s
Tigris
Dnepr
V o l g a
A m u r
H u a n g H e
Amu Dar’ya
Caspian Sea
Pechora
Obʼ
A n g a r a
L e n a
Euphrates
Loire
Chang J i a n g
Nor th Sea
B l a ck S e a
Aral Sea
Y ellow
Sea
M e d i t e r r a n e a n S e a
ANATOLIAN
PLATEAU
L a p p l a n d
Qattara
Depression
PLA TEA U
OF TIBET
Siber ian
Lo wland
Manchur ian
Plain
A L P S
Lake
Baykal
Great
Basin
London
Paris
Prague
Milan
Budapest
Madrid
Sofiya
Moscow
Barcelona
Rome
St Peterburg
Stockholm
Istanbul
Ankara
Baghdad
Berlin
Bucharest
Warsaw
Copenhagen
Lahore
Beijing
Harbin
Changchun
Hanoi
Wuhan
Xiʼan
Dikson
Irkutsk
K A Z A K H S T A N
Lake Balkhash
Syr Dar’ya
Ishim
Irtysh
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 done and  
the latest non JORC resource estimated  
is presented in the Chief Executive  
Officer’s report.
1
1
2
Drozhilovskoye
Total deposit area
6.6km
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 non  
JORC resource estimated is presented  
in the Chief Executive Officer’s report.
2 Smirnovskoye
Total deposit area
13.7km
2 Kemin Resources Plc  Annual Report 2014 02
Chairman’s statement 
//Strategic report
The Company has continued to develop its significant deposits  
against the background of falling prices.
2014 was a challenging year for the development 
of Kemin’s molybdenum and tungsten deposits in 
Drozhilovskoye and Smirnovskoye which are both  
located in north west Kazakhstan.
Molybdenum, which is primarily used for strengthening 
steel, has been hit hard by the lower demand for 
steelmaking by China and other large steel producers.  
At the beginning of 2013 the price for molybdenum 
oxide was $26,400/t and this had fallen to $22,500/t  
by the commencement of 2014. The price subsequently  
fell further in early May 2015 to $17,500/t, a reduction  
of 34% since January 2013. 
Similarly, from January 2013 to May 2015 the price  
of ferro tungsten has also fallen by 22%. Although both 
Kemin’s deposits are predominately molybdenum ore,  
the potential tungsten concentrates revenues add  
a major positive financial impact to the deposits.
Importantly, both Drozhilovskoye and Smirnovskoye 
have molybdenum grades that are superior to many 
other mines and the tungsten credits strengthen the 
economics of the deposits further. In addition to this 
the Company will also benefit from the support of the 
Kazakhstan government as both Drozhilovskoye and 
Smirnovskoye are included within its State Programme  
on Accelerated Industrial Innovative Development 
(SPAIID). We expect that this will lead to assistance in the 
construction of infrastructure and aid to the Company  
with tax related incentives.
The Board expects molybdenum and tungsten prices  
to recover in the longer term given an improvement in 
the world economy. Overall we remain confident that 
the demand for high quality steels using molybdenum 
will continue and much of that demand will come from 
China, a neighbour and trading partner of Kazakhstan. 
Kazakhstan and China already have well established 
railway networks that link both countries for cross  
border trading.
In order to gauge the options available to the Company, 
the Board has opened preliminary discussions directly 
with potential partners in China on how best to 
develop the projects and how to access markets for 
our molybdenum and tungsten concentrates. This 
work remains ongoing and further updates will be 
reported as progress is made. The Board has noted some 
encouraging early interest from Chinese participants in 
the molybdenum and tungsten industries.
The Board and I agree that the Drozhilovskoye and 
Smirnovskoye deposits provide a very compelling 
development opportunity with good grades, simple  
low strip ratio open-pit mining and we are well located 
to the largest market for molybdenum and tungsten 
concentrates. The drop in the molybdenum and tungsten 
prices has encouraged us to make changes to the cut-off 
grade we use in estimating our JORC resources, with a 
view to how the projects may be developed. However,  
our overall view of these projects has not wavered. 
Drozhilovskoye and Smirnovskoye are exceptional, long 
life deposits with significant exploration potential beyond 
the reserves and resources already identified. The Board is 
keen to progress the projects and is working closely with 
the Government of Kazakhstan on the financing  
of a potential trial 1Mtpa mine at Drozhilovskoye.
Finally I would like to thank our staff and consultants 
who have worked diligently in progressing the technical 
work required to advance both the Drozhilovskoye and 
Smirnovskoye deposits.
Kanat Assaubayev
Chairman
18 June 2015
Government support
1Mtpa
We are working closely with the 
Government of Kazakhstan on 
the financing of a potential trial 
1Mtpa mine at Drozhilovskoye. Kemin Resources Plc  Annual Report 2014 03
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Chief Executive Officer’s report 
2014 saw major falls in the demand for mineral resources relating to the  
steel industry including molybdenum and tungsten, and the Company  
is reviewing its strategy based on the changing parameters.
Background to strategic review
A strategic review was considered prudent during a  
time of falling demand for steel and the inevitable fall 
in the price of the commodities used to make speciality 
steels. The outcome of the strategic review resulted in a 
revision of Kemin’s reserve and resource estimates using 
a higher cut-off grade. This was to ensure that the reserve 
and resource base provided a robust financial outcome at 
a time of low commodity prices. In addition the cost base 
of the Company was reviewed to conserve cash resources 
during this developmental stage of the Company.
The intention of the strategic review was to prepare 
a reserve and resource statement that would ensure 
both deposits would remain profitable even with low 
commodity prices well into the future. This strategy is 
supported by known exploration targets that indicate 
that with more drilling, significant resources and 
ultimately reserves can be added to the current reserves 
and resources. This will extend the life of both deposits 
well beyond the current resource base.
Both the Drozhilovskoye and Smirnovskoye deposits are 
large, near surface ore bodies that allow simple open-pit 
mining at low strip ratios. The Drozhilovskoye deposit is 
intended to be developed well before the Smirnovskoye 
deposit due to the fact that the molybdenum and 
tungsten grades are much higher than those at 
Smirnovskoye plus there is significantly more drilling  
and metallurgical test work completed at Drozhilovskoye.
The impact of the strategic review has delayed  
the development timeline but this work was critical  
in ensuring a robust development strategy was put  
in place. The impact of remodelling the geological data  
of both deposits, to reflect lower commodity prices 
and the development of supporting mining options 
has delayed the development timeline by nine months. 
Although it is disappointing, this work has been crucial  
in ensuring Kemin develops the deposits to maximise  
the value for its shareholders in a time of expected  
lower prices for molybdenum and tungsten.
As part of the finalisation of the strategic review, Kemin 
engaged Venmyn Deloitte to prepare an independent 
Competent Persons Report (CPR) for the Drozhilovskoye 
and the Smirnovskoye deposits. As part of this process 
Venmyn Deloitte also assisted Kemin, by coordinating 
with both Datamine Pty and Eurus Mineral Consultants, 
with studies relating to the mine plan and metallurgical 
test work. Datamine Pty provided investigations into the 
optimum mining scenarios for both the Drozhilovskoye 
and Smirnovskoye deposits aimed at maximising Net 
Present Values. Eurus Mineral Consultants completed an 
independent review of the metallurgical test work and 
proposed flow sheets for the mineral processing plants  
at Drozhilovskoye. 
Mineral resource statement
The full CPR is currently in the final stages and is  
expected to be published in Q3 2015. This is 
expected to reclassify the resources under the 
JORC (2012) code from the previously reported 
GKZ classifications reproduced below.
The Australasian Code for Reporting of Exploration 
Results, Mineral Resources and Ore Reserves (“the 
JORC code”) is a professional code of practice that sets 
minimum standards for Public Reporting of minerals 
Exploration Results, Mineral Resources and Ore Reserves. 
The JORC code provides a mandatory system for the 
classification of minerals Exploration Results, Mineral 
Resources and Ore Reserves according to the levels  
of confidence in geological knowledge and the technical  
and economic considerations in Public Reports. 
 
The current edition of the code was published in 2012, 
and moving to a JORC based classification is expected  
to have a number of benefits and is expected to define 
much more clearly the targets to be developed.
GKZ resources for the Drozhilovskoye and Smirnovskoye 
deposits at the cut-off grade of 0.05% Mo were:
GKZ resources
    Molybdenum  Tungsten
 Russian Ore Molybdenum metal Tungsten Metal
 reserve tonnes grade  equivalent Grade Equivalent
Deposit classification Mt %  Kt % Kt
Drozhilovskoye C1 139.8 0.188 262.9 0.046 64.3
Smirnovoskoye C1 170.5 0.130 221.7 0.010 17.1
Total C1 310.3 0.156 484.6 0.026 81.4
When Kemin’s deposits are benchmarked against other 
molybdenum mining operations, our grades and large 
tonnages are superior to many other existing open-pit 
molybdenum mines and deposits that are highlighted  
for future development. Kemin Resources Plc  Annual Report 2014 04
Chief Executive Officer’s report (continued)
//Strategic report
Local support for our projects
During 2014, Kemin was also able to announce that  
its Smirnovskoye and Drozhilovskoye deposits have  
been approved for inclusion in the State Programme  
on Accelerated Industrial Innovative Development 
(SPAIID). These assets have been identified as strategic 
mineral developments for Kazakhstan, and the 
Government will:
• build infrastructure to connect Kemin’s planned 
processing plant to the Bukhara-Ural gas pipeline, 
and will provide electricity, water and transportation 
networks;
• ensure regulatory approvals are issued in a timely 
manner. Additionally, the Government of Kazakhstan 
has enacted broad legislative changes that will further 
increase state support for key mineral development 
projects including:
• income tax exemptions for 10 years;
• land tax exemptions for 10 years;
• property tax exemptions for 8 years;
• reimbursement of up to 30% of project capital 
expenditure;
• guarantees to keep tax rates and state tariffs 
unchanged for a period of 10 years;
• policies to allow investors to hire foreign staff  
for the period of construction without applying  
labour quotas.
The impact of this support by the Government  
of Kazakhstan and the proposed legislative changes 
has further strengthened the investment case for 
both deposits and considerably reduced the risk, and 
should aid the Company in receiving the necessary 
development permits in a timely manner. This is  
an important step forward for both deposits 
development prospects.
Looking forward
Following the conclusion of the CPR, management 
expects to commission a definitive feasibility study  
for the Drozhilovskoye deposit initially, and anticipates 
that this will be completed during early 2016.
With the support of the Government of Kazakhstan, 
the Board is continuing to review the option of a pilot 
processing plant of 1 million tonne pa (Mtpa) capacity 
as an initial early, quick start, investment option prior to 
the major investment required at the 5Mtpa operation at 
Drozhilovskoye and then Smirnovskoye. 
 
This provides a unique opportunity to:
• test and improve enrichment technology;
• establish a customer base;
• define an efficient logistics chain to customers.
These discussions, whilst ongoing, were delayed during 
2014 as part of the strategic review to ensure that a 
robust development scenario is in place for the 1 Mtpa 
prior to any finalisation of financing.
China offers a variety of options to Kemin in terms  
of off-take agreements, potential joint venture partners 
who wish to supplement their access to molybdenum 
and tungsten concentrates, and metals and mining 
companies producing molybdenum and tungsten.  
At this early stage Kemin has conducted an initial 
scoping study to better understand its options in  
China and the interest of Chinese companies in doing 
business with Kemin. Kemin has been pleased by the 
initial interest shown by Chinese companies and looks 
forward to further discussions in due course.
Fundraising
£2.05m
In June 2014, the Company 
completed a fundraising  
of £2.05m, gross, via a  
placement of 22,804,310  
new ordinary shares.
Timeframe & Development
Event Timing
Publication of CPR Q3 2015
Updated feasibility study completion Q1 2016
Kazakhstan development bank funding  
stage 1 Drozhilovskoye Q1 2016
First stage construction complete Late 2016
Production starts Early 2017
Raise funds stage 2 & 3 expansions  
at Drozhilovskoye Late 2017
Feasibility study complete for development  
of Smirnovskoye Late 2016
Funding completed for Smirnovskoye  
& construction starts Mid 2018
Funding
To finance working capital, in June 2014, the Company 
completed a fundraising of £2.05m, gross, via a 
placement of 22,804,310 new ordinary shares. In addition, 
the Company continues to benefit from the support 
being provided by Amrita Investments Limited, which 
has provided a facility to draw funding to meet liabilities 
as they fall due.
The Company has sufficient cash flow facilities  
to meet its current obligations. It will assess its future 
funding requirements on finalisation of its future plans, 
and is considering a number of options.  Kemin Resources Plc  Annual Report 2014 05
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Financial performance review
The consolidated loss attributable to Kemin Resources 
shareholders in the twelve months ended 31 December 
2014 was £818,000 (FY 2013: £3,092,000 loss). These 
costs relate to the ongoing administrative costs and 
capital costs in developing the projects. In 2013 the 
costs were much higher as they principally related to 
higher legal and professional costs associated with the 
reverse takeover. In addition, a non-recurring adjustment 
was made for the share based payment arising as part 
of the reverse takeover of £2.6m. The strategic review 
conducted during 2014 has led to a significant reduction 
in ongoing head office costs. 
Cash spend is tightly monitored against budgets and the 
limited capital expenditure programme. 
The Company is continuing to spend resources  
on capital development and aiming to control all costs 
within tight financial limits. In the current year £1,162,000 
was spent on development of the projects, resulting  
in total capital spend to date on both projects of £2.8m.
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.
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 
given the early development of the Group.
While the Company has sufficient working capital 
facilities at present to meet its cash flow requirements,  
it is considering the availability of future funding options. 
The Company is reviewing its capital structure in this 
regard with the aim to fix interest rates, where possible, 
and with the preferred option to raise funds via equity.
Certain factors are beyond the control of the Company 
such as the fluctuations in the price of the commodities 
it is going to extract and possible political upheaval. 
However the Company is aware of these factors and 
tries to mitigate them as far as possible. The Company 
maintains close relationships with the Kazakhstan 
authorities, in order to minimise bureaucratic delays  
and problems.
In relation to the commodity prices, the project  
model, which has now been remodelled based on  
the movement in commodity prices suggests sufficient 
headroom given the low cost base which will provide 
a buffer against the effect of any further downward 
pressure on commodity prices.
The Company has used independent consultants, 
experienced in resource reports of the type required  
by the Company, to mitigate as far as possible any 
material changes in the resource estimates. It has 
recently further enhanced the estimates by engaging  
a well respected firm to obtain a JORC (2012) compliant 
resource statement. Further drilling will be undertaken  
as necessary based on the future project plan.
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: 
The key statistic is the level of resources which has been 
measured by an independent consultancy.
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 is given on page 09.
The Strategic report was approved and authorised by  
the Board on 18 June 2015 and signed on its behalf by:
Sanzhar Assaubayev
Chief Executive Officer
Key Performance Indicators
  31 December
 2014 2013
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) 704 11
Exploration expenditure (cumulative – £000’s) 2,801 1,382
Net loss (£000’s) 870 3,099 Kemin Resources Plc  Annual Report 2014 06
Board of Directors
//Governance
Kanat Assaubayev
Non-Executive Chairman 
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.
Aidar Assaubayev
Non-Executive Director 
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.
Ashar Qureshi
Non-Executive Vice Chairman
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.
Sanzhar Assaubayev
Chief Executive Officer
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.
Kemin Resources has a highly experienced Board of Directors  
with a commitment to driving profitability and long-term  
shareholder value. Kemin Resources Plc  Annual Report 2014 07
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Ken Crichton
Non-Executive Director
Ken Crichton is a mining engineer 
with over 28 years of experience 
within the mining industry. After 
graduating from the University 
of New South Wales in 1985, a 
significant proportion of his career 
has involved working in developing 
countries and a considerable part  
in active mine production roles. 
In the five years prior to joining 
GoldBridges, he was the Chief 
Executive Officer of ASCOM Precious 
Metals Mining, S.A.E., an Egyptian-
based minerals company with 
exploration and mining activities 
across Africa. Prior to that, he worked 
for 15 years with BHP Billiton in both 
Australia and Indonesia. In addition, 
he worked for four years with 
Leighton Holdings Group, a leading 
construction and mining contractor 
in Papua New Guinea and Australia. 
He is also an Executive Director of 
GoldBridges Global Resources Plc.
Neil Herbert
Non-Executive Director
Neil Herbert is a Fellow of the 
Association of Chartered Certified 
Accountants and has over 20 years  
of experience in finance. He has been 
involved in the management of 
mining and exploration companies 
for over 15 years and, until October 
2013, was Co-Chairman and 
Managing Director of AIM quoted 
Polo Resources Limited (AIM: POL), 
a natural resources and mine 
development investment company. 
Prior to this, he was Finance Director 
for UraMin Inc., an African focused 
uranium exploration company,  
from 2005-2007 during which  
period he worked to float the 
company on AIM and the Toronto 
Stock Exchange in 2006, raising 
c.US$400 million in equity financing 
and negotiating the sale of the 
group to Areva for US$2.5 billion.
William Trew
Non-Executive Director
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.
Go to page 33 to view  
our Company details Kemin Resources Plc  Annual Report 2014 08
Directors’ report
//Governance
The Directors present their report and financial statements for the year ended 31 December 2014.
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 updated studies  
indicate substantial economic exploitable reserves. This will be underpinned by a feasibility study which is expected to be completed in 2016. At this stage 
the Group 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. 
The Directors anticipate that, whilst the Group may seek to raise further finance in the future, it now has access to sufficient funding for its immediate needs. 
The Group is currently funded by a working capital facility that is being provided by a company controlled by its principal shareholder. Cash flows indicate 
that it expects to have sufficient cash flow from this facility to finance its on-going operational requirements. The Directors are confident that further sources 
of funding can be acquired in the timescales required to meet the future funding requirements as necessary.
On this basis the Directors have therefore concluded that it is appropriate to prepare the 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 principal subsidiaries of the Company  
are listed below:
 
Name of company Country of incorporation Nature of trade Shareholding
GMA Pty Ltd Australia Liquidated in 2014
Technical Training Services Limited Gibraltar Liquidated in 2014
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
Results and dividends
The results of the Company for the year ended 31 December 2014 are set out in the consolidated statement of comprehensive income and a commentary  
on the results is included in the Chairman’s statement and the Strategic report. The Group incurred losses in the year of £870,000 (2013: £3,099,000), in  
the course of developing its principal mining assets in Kazakhstan. The Directors do not recommend the payment of a dividend (2013: £Nil).
Directors
The Directors holding office during the year and up to the date of this report are set out below:
Kanat Assaubayev Executive Chairman
Ashar Qureshi Non-Executive Vice Chairman
Sanzhar Assaubayev Chief Executive Officer
Aidar Assaubayev Non-Executive Director
Ken Crichton Non-Executive Director
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 a disclosable interest of 3% or more of the nominal value of the Company’s shares as at the date of this report.
      Shareholding %
Shareholder      ordinary shares owned
Bergfolk Corporation       133,117,846 76.14
Strathland Enterprises Limited       10,642,012  5.3 Kemin Resources Plc  Annual Report 2014 09
Strategic report  01-05
Governance 06-11
Financial statements 12-32
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 2014 (2013: £Nil).
Directors’ emoluments
Details of Directors’ emoluments for the Group for the year are as follows:
      2014 2013
      Fee Fee
      £’000 £’000
Kanat Assaubayev       – –
Ashar Qureshi       – –
Sanzhar Assaubayev       – –
Aidar Assaubayev       – –
Ken Crichton      27 26
William James Trew       – 1
Neil Herbert       27 1
Ralph Browning*      – 19
Total       54  47
* Resigned on 3 June 2013.
Service contracts
The Non-Executive Directors have contracts with a rolling three-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 only 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 2014 10
Directors’ report (continued)
//Governance
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 page 08.
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 Ken Crichton 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.
Subsequent events
Details of events after the end of the financial year are set out in note 20 on page 32 of the financial statements.
Auditors
All of the current Directors have taken all of the steps that they ought to haver 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 Gowlings (UK) LLP, 15th Floor, 125 Old Broad Street, London, EC2N 1AR  
on 29 June 2015 at 11:30am. 
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
18 June 2015 Kemin Resources Plc  Annual Report 2014 11
Strategic report  01-05
Governance 06-11
Financial statements 12-32
We have audited the financial statements of Kemin Resources Plc for the year ended 31 December 2014 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 equity, the Company statement of changes in equity, the consolidated statement of cash flows, the 
Company statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation 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 2014 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; 
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 matters where the Companies Act 2006 requires us 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 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
18 June 2015
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Independent auditor’s report  
to the members of Kemin Resources Plc Kemin Resources Plc  Annual Report 2014 12
Consolidated statement of profit or loss
year ended 3 1 December 20 1 4
//Financial statements
      Year ended  Year ended
      31 December  31 December
      2014 2013
     Notes £’000 £’000
Administrative expenses      (340) (154)
Share based payment      – (2,629)
Operating loss     3 (340) (2,783)
Finance income      1 –
Finance expense     5 (531) (316)
Loss before income tax       (870) (3,099)
Income tax expense      6  –  –
Loss for the year       (870) (3,099)
Loss for the year attributable to:
Equity shareholders of the parent      (818) (3,092)
Non-controlling interest      8 (52) (7)
      (870) (3,099) 
Loss per ordinary share – basic and diluted
Attributable to the equity shareholders of the parent – basic    7 (0.5p) (2p) 
Consolidated statement of comprehensive income
year ended 3 1 December 20 1 4
      2014 2013
      £’000 £’000
Loss for the year       (870)  (3,099) 
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  121 126
Total comprehensive loss attributable to equity shareholders of the parent    (749) (2,973) 
Loss for the year attributable to:
Owners of the parent      (703)  (2,979) 
Non-controlling interest       (46) 6
      (749) (2,973)
The accompanying notes are an integral part of these financial statements. Kemin Resources Plc  Annual Report 2014 13
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Consolidated statement of financial position
year ended 3 1 December 20 1 4
      Year ended  Year ended
      31 December  31 December
      2014 2013
     Notes £’000 £’000
Assets
Non-current
Intangible assets      9 2,801 1,985
Property, plant and equipment      10  26 25
Other non-current assets      11 152 36
Restricted cash       6 3
Non-current assets       2,985 2,049
Current
Other receivable        32 6
Cash and equivalents       704 11
       736  17
Total assets        3,721  2,066 
Liabilities
Non-current
Borrowings      13  2,773 1,940
Other liabilities      12 5 –
Non-current liabilities       2,778 1,940 
Current
Trade and other payables      12 1,319 1,776
Borrowings      13 592 737
Current liabilities       1,911 2,513
Total liabilities       4,689 4,453
Net liabilities      (968) (2,387) 
Equity
Equity attributable to owners of the parent     
Ordinary share capital      15 1,748  1,520
Deferred share capital       15 6,168 6,168
Share premium account       37,414 35,693
Merger reserve       (41,682) (41,682)
Share based payments reserve       1,105 1,105 
Other reserve       921 702
Retained earnings       (6,691) (5,873)
Currency translation reserve        161 46
       (856) (2,321) 
Non-controlling interest      8 (112) (66)
Total equity       (968) (2,387)
The financial statements were approved and authorised for issue by the Board of Directors on 18 June 2015 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 2014 14
Company statement of financial position
year ended 3 1 December 20 1 4
//Financial statements
       Reclassified
      Year ended  Year ended
      31 December  31 December
      2014 2013
Company number 04674237     Notes £’000 £’000
Assets
Non-current
Amount due by subsidiary company     8 1,639 603
Non-current assets      1,639 –
Current
Other receivables      31 –
Amount due by subsidiary company      –  – 
Cash and equivalents      676  11 
        707   11 
Total assets       2,346   614 
Liabilities
Non-current
Loans and borrowings     13 (2,036)  (1,042)
Non-current liabilities      (2,036) (1,042)
Current
Trade and other payables     12 (72) (1,184)
Current liabilities      (72) (1,184)
Total liabilities      (2,108) (2,226)
Net assets/(liabilities)      238  (1,612) 
Equity   
Equity attributable to owners of the parent     
Ordinary share capital     15 1,748  1,520 
Deferred share capital     15 6,168  6,168 
Share premium account      37,414  35,693 
Merger reserve      52,654  52,654 
Other reserve      405  186 
Retained earnings      (98,151)  (97,833)
Total equity       238   (1,612)
The financial statements were approved and authorised for issue by the Board of Directors on 18 June 2015 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 2014 15
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Consolidated statement of changes in equity
year ended 3 1 December 20 1 4
     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 2013 6,180 – 27,890 (33,892) 76 2,006 (2,857) (67) (664) – (664)
Loss for the year – – – – –  – (3,092) – (3,092) (7) (3,099)
Currency translation differences arising  
  on translation of foreign operations – – – – – – – 113 113 13 126
Total comprehensive loss  – – – – – – (3,092) 113 (2,979) 6 (2,973)
Share consolidation (6,168) 6,168 – – –  – – – – – –
Lapsed/forfeited share options – – – – (76)  – 76  – – – –
Capital re-organisation  
  on acquisition of KRMC 1,483 – – (7,790) –  499  – – (5,808) (72) (5,880)
Share based payment arising  
  on acquisition of KRMC – – – – 1,105  – – – 1,105 – 1,105
Conversion of loan stock 25 – 7,803 – –  (2,006)  – – 5,822 – 5,822
Modification of loans received  – – – – – 203  – – 203 – 203
At 31 December 2013 & 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)
Modification of loans received – – – – – 219  – – 219 – 219
At 31 December 2014 1,748 6,168 37,414 (41,682) 1,105  921  (6,691) 161 (856) (112) (968)
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 adjustments required to account for the reverse takeover as required by International Financial Reporting Standard 3. 
Share based payment reserve: Value of share options granted and calculated with reference to a binomial pricing model. When options lapse or are exercised, 
amounts are transferred from this account to retained earnings. In addition this reserve includes an amount of £1,105,000 in relation to an adjustment required 
under IFRS2 to account for the reverse takeover.
Other reserve: Represents the equity component of loans received.
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 Pound Sterling.
The accompanying notes are an integral part of these Company financial statements. Kemin Resources Plc  Annual Report 2014 16
Company statement of changes in equity
year ended 3 1 December 20 1 4
//Financial statements
 Ordinary Deferred    Share based
 share share Share  Merger  payment  Other Retained
 capital capital premium reserve reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2013 6,180 – 27,890 – 76 2,006 (44,130) (7,978)
Loss for the period – – – – – – (55,407) (55,407)
Total comprehensive loss – – – – – – (55,407) (55,407)
Share consolidation (6,168)  6,168  – – – – – –
Arising on acquisition of investment 1,483  –  – 52,654  – – – 54,137 
Lapsed/forfeited share options  – –  –  – (76)  – 76  –
Modification of loans received – – – – – 186  – 186 
Conversion of loan stock 25  – 7,803  – – (2,006)  1,628  7,450 
At 31 December 2013 & 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)
Modification of loans received – – –  – – 219 – 219
At 31 December 2014 1,748  6,168  37,414  52,654  – 405  (98,151)  238 
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.
Share based payment reserve: Value of share options granted and calculated with reference to a binomial pricing model. When options lapse or are exercised, 
amounts are transferred from this account to retained earnings.
Other reserve: Represents the equity component of loans received.
Merger reserve: Amount related to the acquisition of KMRC.
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 Pound Sterling.
The accompanying notes are an integral part of these Company financial statements. Kemin Resources Plc  Annual Report 2014 17
Strategic report  01-05
Governance 06-11
Financial statements 12-32
Consolidated statement of cash flows
year ended 3 1 December 20 1 4
      Year ended  Year ended
      31 December  31 December
      2014 2013
     Notes £’000 £’000
Net cash outflow from operating activities     17  (740)  (1,006) 
Investing activities
Additions to intangible assets       (947) – 
Additions to property, plant and equipment       (4)  (43)
Net cash used in investing activities       (951)  (43)
Financing activities
Proceeds from borrowings      949  1,060 
Repayment of borrowings       (514) – 
Proceeds on issue of shares       2,052  –
Expenses on issue of shares       (103) –
Net cash inflow from financing activities       2,384   1,060 
Increase in cash and cash equivalents       693   11 
Cash and cash equivalents at the beginning of period      11  –
Cash and cash equivalents at the end of period       704   11 
Company statement of cash flows
year ended 3 1 December 20 1 4
      Year ended  Year ended
      31 December  31 December
      2014 2013
     Notes £’000 £’000
Net cash outflow from operating activities     17  (1,272)  (690)
Financing activities
Proceeds from borrowings       949   689 
Loans to subsidiary       (961) – 
Proceeds on issue of shares      2,052 – 
Expenses on issue of shares      (103) –
Net cash inflow from financing activities       1,937   689 
Increase in cash and cash equivalents      665  (1)
Cash and cash equivalents at the beginning of period     11  12 
Cash and cash equivalents at the end of period      676  11 
The accompanying notes are an integral part of these Company financial statements. Kemin Resources Plc  Annual Report 2014 18
Notes to the consolidated financial statements
year ended 3 1 December 20 1 4
//Financial statements
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’s 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 2014. 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 (IFRSs) as adopted by the  
European Union.
The consolidated financial statements have been prepared under the historical cost basis. They are presented in Pound Sterling and are rounded  
to the nearest thousand (£’000) except where otherwise noted.
The preparation of financial statements in compliance with the 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 and have been made  
in preparing the financial statements, and their effects, are disclosed in note 2.
In accordance with the provisions of Section 408 of the Companies Act 2006 the profit or loss account of Kemin Resources Plc is not presented.
Going concern
As at 31 December 2014, the Group had cash in hand of £704,000 and at the reporting date the Group’s liabilities exceeded its assets by £968,000.
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 £7m loan facility to be applied towards working capital requirements. At present there  
is still a facility of approximately £5m available under this facility. The Company has received confirmation that liquid funds of not less than £5m are held  
by Amrita with a financial institution. To compliment this the Company raised equity of £1.9m (net of fees) during the year.
The loan bears an interest rate of LIBOR +5%. The loan is repayable on the earlier of the fifth anniversary of the agreement or on the date of a fundraising 
completed date in respect of any equity fundraising, raising at least £5m (before expenses) at which point the Lender may choose to convert  
the loan in 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 but presently 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
A number of new standards and amendments to existing standards and interpretations were applicable from 1 January 2014. The adoption  
of these amendments did not have a material impact on the Group’s financial statements for the year ended 31 December 2014.
The management are evaluating the impact of new standards amendments to standards and interpretations which have been issued but are  
not yet effective. However they are not expected to have a material impact on the Group’s earnings or shareholders’ funds.
Basis of consolidation
Business combinations
IFRS 10 Consolidated Financial Statements was adopted in the year to replace IAS 27 Consolidated and Separate Financial Statements. The adoption  
of IFRS 10 has had no material impact on the financial statements.
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. Inter-company 
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 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 on which control ceases.
Segmental reporting
In the opinion of the Directors, who are regarded as the chief operating decision makers, the Group has one business activity, being the exploration for,  
and development of, the molybdenum, copper and tungsten deposits in Kazakhstan.
The Board of Directors considers 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. Kemin Resources Plc  Annual Report 2014 19
Strategic report  01-05
Governance 06-11
Financial statements 12-32
1. Accounting policies continued
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.
On consolidation, the results of overseas operations are translated into Pound 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 the 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 the 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 Group becomes party to the contractual provision  
of the instrument.
Financial assets
Financial assets of the Group consist of other receivables and cash.
All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets are initially recognised  
at fair value plus transaction costs.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade and other 
receivables and cash are classified as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using  
the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in profit  
or loss.
De-recognition of financial instruments occurs when the rights to receive cash flows from the investments expire or are transferred and substantially  
all of the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken at least at each reporting date whether  
or not there is objective evidence that a financial asset or a group of financial assets is impaired.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits that are readily convertible into known amounts of cash and which are subject  
to an insignificant risk of changes in value.
Financial liabilities
The Group’s financial liabilities include bank loans, finance lease liabilities, convertible loan stock, bank overdrafts, trade and other payables.
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of 
the instrument. All financial liabilities are recorded initially at fair value, net of direct issue costs.
Interest-free loans and loans below market rate received are initially recorded at fair value. They are estimated using discounted cash flow forecasts,  
based on a risk-adjusted discount rate which reflects the risks associated with the loans, with reference to the market rates for loans to similar companies.  
The difference between the fair value and the loan received is recorded within equity, where the loans provided by parties controlled by the Company’s 
ultimate controlling party.
Subsequently, all financial liabilities are recorded at amortised cost using the effective interest method, with interest-related charges recognised as an 
expense in finance cost in profit or loss. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged  
to profit or loss using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled  
in the period in which they arise.
A financial liability is de-recognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires.
Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument. All interest related charges  
are recognised as an expense in “Finance costs” in the income statement.
Trade payables are recognised initially at their fair value net of transaction costs and subsequently measured at amortised cost less settlement payments. Kemin Resources Plc  Annual Report 2014 20
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
//Financial statements
1. Accounting policies continued
Financial liabilities continued
Loans that have a convertible element into equity comprise both a liability and an equity component. The elements are classified in accordance with their 
contractual provisions. At the date of issue, the liability component is recorded at fair value, which is estimated using the prevailing market interest rate for  
a similar debt instrument without the equity conversion feature. Thereafter, the liability component is accounted for as a financial liability in accordance  
with the above.
The residual is the equity component, which is accounted for as an equity instrument.
Upon a conversion of a loan, a number of ordinary shares may be issued corresponding to the value of the loan note being converted and the agreed 
conversion value of the loan note. The corresponding carrying value of the loan liability and loan equity reserve are released, and the difference between 
these and the nominal value of the shares issued on conversion is recognised as share premium. Where the terms of the instrument are revised, the 
instrument is accounted for as a new instrument.
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, in which case the related expenditures are transferred to noncurrent assets as mining properties unless  
the projects are determined not to be commercially viable, in which case 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.
Pre-licence costs are recognised as an expense in the statement of comprehensive income as incurred.
Exploration and evaluation assets are assessed at each reporting year to determine whether there are indicators that assets might be impaired.
An impairment review is undertaken when indicators of impairment arise, typically when one of the following circumstances applies:
• sufficient data exists that renders the resource uneconomic and unlikely to be developed;
• title to the asset is compromised;
• budgeted or planned expenditure is not expected in the forseeable future;
• insufficient discovery of commercially viable resources leading to the discontinuation of activities.
Expenditure on research activities is recognised as an expense in the statement of comprehensive income as incurred.
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% pa
Production machinery and equipment Between 5% and 20% pa
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 account 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. Kemin Resources Plc  Annual Report 2014 21
Strategic report  01-05
Governance 06-11
Financial statements 12-32
1. Accounting policies continued
Income taxes
Current income tax assets and liabilities comprise those obligations to fiscal authorities in the countries in which the Group 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 account.
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 Group 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 Group 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) Useful lives of property, plant and equipment
Property, plant and equipment are depreciated over their useful lives. Useful lives are based on the management’s estimates of the number of years  
over which the assets will generate economic benefits. This is periodically reviewed for continued appropriateness. Due to the long lives of certain assets, 
changes to the estimates used could result in significant variations in the carrying values.
(iii) 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.
(iv) Base of mining operations
The Group’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.
(v) 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 this regard, 
the derived fair value estimates cannot be substantiated by comparison with independent markets and, in many cases, could not be realised immediately.
(vi) 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. Kemin Resources Plc  Annual Report 2014 22
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
//Financial statements
3. Operating loss
This is stated after charging:
      2014 2013
      £’000 £’000
Staff costs (note 4)       59  12 
Fees payable to Company and Group auditors:
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts    30 44
Fees payable to the Company’s auditors and its associates in respect of:
The auditing of accounts and associates of the Company pursuant to legislation  
(including that of countries and territories outside the United Kingdom)    11 11
In addition to the amounts disclosed above the auditors also charged £Nil (2013: £44,000) in relation to assistance with admission documents and the capital 
reorganisation, this was accounted for in reserves in 2013 as part of the reverse acquisition adjustment.
4. Staff number and costs
The average number of persons (including Directors) employed by the Group during the year was:
      2014 2013
      Number Number
By activity
Administration      8 7 
      2014 2013
      £’000 £’000
Staff costs (including Directors)
Wages and salaries       59  12
       59  12 
The total Directors’ emoluments as disclosed in the Directors’ report was £54,000 (2013: £47,268, of this amount £35,000 has been accounted for in reserves  
as it was incurred in the parent company prior to the capital reorganisation). The remuneration of the highest paid Director was £27,000 (2013: £26,250).
5. Finance income and expenses
      2014 2013
      £’000 £’000
Finance Income
Interest on unsecured convertible loan stock – net of conversion     1  46 
Finance expense
Interest expense      115 157
Unwinding of discount      252 149
Foreign exchange loss       164  10
       531  316  Kemin Resources Plc  Annual Report 2014 23
Strategic report  01-05
Governance 06-11
Financial statements 12-32
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.
      2014 2013
      £’000 £’000
Loss before tax       (870)   (3,099) 
Loss before tax multiplied by the standard rate of corporation tax in the UK of 21.25% (2013: 23.25%)    (185)   (720) 
Effect of:
Expenses not deductible for tax purposes      –  649 
Income not subject to tax      (2) –
Different tax rates in overseas territory      5  6 
Unrecognised tax losses carried forward       182   65 
Total tax charge for year      – – 
The parent company has tax losses of £813,000 available to carry forward (2013: £570,000). Tax losses arising in subsidiary in Kazakhstan are only recognised on 
the commencement of commercial production.
7. Loss per share
      2014 2013
Basic and fully diluted loss per share
Loss for the year attributable to the equity holders of the parent entity (£’000)     (818) (3,092)
Weighted average number of shares in issue      163,430,889  150,483,730 
Loss per share attributable to the equity holders of the parent entity      (0.5p)  (2p) 
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 had the following investments in subsidiary undertakings during the year:
Name of company Country of incorporation Nature of trade Shareholding
GMA Pty Ltd Australia Liquidated in 2014
Technical Training Services Limited Gibraltar Liquidated in 2014
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
      Subsidiary loan Total
      £’000 £’000
1 January 2013      – –
Other movements      603 603
31 December 2013 and 1 January 2014      603 603
Loans to subsidiary      961 1,463
Foreign exchange movements       75 62
31 December 2014      1,639 1,639
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 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.  Kemin Resources Plc  Annual Report 2014 24
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
//Financial statements
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:
      2014 2013
For the period ended 31 December      £’000 £’000
Administrative expenses      (36) (30)
Operating loss      (36) (30)
Finance expenses      (352) (40)
Loss before tax      (388) (70)
Tax expense      – –
Loss after tax      (388) (70)
Loss allocated to NCI      (52) (7)
Other comprehensive income allocated to NCI      6 13
Total comprehensive (loss)/income allocated to NCI     (46) 6
Dividends paid to NCI      – –
Cash flows from operating activities      (393) –
Cash flows from investing activities      (26) –
Cash flows from financing activities      446 –
Net cash inflows      27 –
      2014 2013
As at 31 December      £’000 £’000
Assets
Intangible assets      2,182 1,382
Property plant and equipment      25 25
Other non-current assets      157 40
Trade and other debtors      1 7
Cash and cash equivalents      27 –
Liabilities
Trade and other payables      (1,258) (480)
Loans and other borrowings      (2,255) (1,634)
Accumulated non-controlling interests      (112) (66) Kemin Resources Plc  Annual Report 2014 25
Strategic report  01-05
Governance 06-11
Financial statements 12-32
9. Intangible assets
     Contract Contract
     No. 1605 No. 1606 Total
Exploration & evaluation assets     £’000 £’000 £’000
Cost
At 1 January 2013     85 1,345 1,430
Additions     326 320 646
Exchange difference     (6) (85) (91)
At 31 December 2013 & 1 January 2014     405 1,580 1,985
Additions     348 599 947 
Exchange difference     (19) (112) (131)
At 31 December 2014     734 2,067 2,801 
Exploration and evaluation assets relate to the capitalised licence costs and subsequent exploration expenditure incurred in respect of the Smirnovskoye 
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 Smirnovskoye and the Drozhilovskoye deposit respectively.
Both deposits are located in the Kostanay region of Kazakhstan.
10. Property, plant and equipment
     Land and Machinery and 
     buildings equipment Total
     £’000 £’000 £’000
Cost
At 1 January 2013     4 87 91
Exchange difference     – (5) (5)
At 31 December 2013 & 1 January 2014     4 82 86
Additions     – 4 4
Exchange difference     – (7) (7)
At 31 December 2014     4 79 83
Depreciation
At 1 January 2013     (2) (61) (63)
Charge for the year     (1) (2) (3)
Exchange difference     – 5 5
At 31 December 2013 & 1 January 2014     (3) (58) (61)
Charge for the year     – (1) (1)
Exchange difference     2 3 5
At 31 December 2014     (1) (56) (57)
Net book values
At 31 December 2014     3 23 26 
At 31 December 2013     1 24 25 
At 1 January 2013     2 26 28 Kemin Resources Plc  Annual Report 2014 26
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
//Financial statements
11. Other non-current assets
     Company  Group
    2014 2013 2014 2013
    £’000 £’000 £’000 £’000
VAT recoverable    – – 123 12
Prepayments    – – 29 24
    – – 152 36
12. Trade and other payables
     Company  Group
    2014 2013 2014 2013
Current    £’000 £’000 £’000 £’000
Trade payables    38 920  1,092  920
Other payables and accruals    34 264  227  856
    72 1,184  1,319  1,776 
    2014 2013 2014 2013
Non-Current    £’000 £’000 £’000 £’000
Trade payables    – – – –
Other payables and accruals    – –  5  –
    – –  5  – 
13. Loan and borrowings
       Company
    Interest  2014 2013
    rate Maturity £’000 £’000
Non-current liabilities
Borrowings – Amrita Investments Limited    LIBOR +5% 2018  2,036   1,042 
       2,036   1,042 
Amrita Investment Limited is a company incorporated in the British Virgin Islands and ultimately controlled by the Assaubayev family. It entered into  
an agreement for the provision of an unsecured £7m loan facility to be applied toward the Group’s working capital requirements. Kemin Resources Plc  Annual Report 2014 27
Strategic report  01-05
Governance 06-11
Financial statements 12-32
13. Loan and borrowings continued
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 £5m (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  2014 2013
   Currency rate Maturity £’000 £’000
Current
AlmaSnabResours LLP   KZT 0% on demand  128   141 
Lanochkin S.S.   KZT 0% on demand  56   57 
Storm continental SA   USD 5% on demand  253   196 
Centasia Mining Corp.   USD 10% on demand  155   162 
Zadessa Limited   USD 0% on demand –   181 
Non-current       592  737 
Hawkinson Capital INC   USD 20% 2016  378   321 
Hawkinson Capital INC   KZT 0% 2016  244   233 
Hawkinson Capital INC   KZT 0% 2016 –  14 
Altyn MunaiGaz LLP   KZT 0% 2016  115   126 
Altyn Group Kazakhstan LLP   KZT 0% 2016 –  204 
Amrita Investment Limited   £ LIBOR +5% 2018  2,036   1,042 
       2,773   1,940 
Financial liabilities refer to unsecured interest on non interest bearing loans received from related parties and other companies. Interest-free loans  
are initially recognised at fair value, and are subsequently accounted for at amortised cost using an effective interest rate.
The effective interest rates used to measure the initial 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%  
(2013: from 10.0% to 10.8%).
As per the 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 and are payable on demand. 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, and 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 2014 28
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
//Financial statements
14. Financial risk management objectives and policies
The Group and 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 investing and borrowing activities.
The Group and Company are 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 £704,000 of net bank balances at the year-end (2013: £111,000). The Directors monitor cash flow on a regular basis as the Company is in  
the development stage and the cash flows are predictable on a monthly basis. The Company is currently utilising the working capital facility as provided  
by Amrita Investment Limited and is in the process of considering various avenues to raise further funds.
The table below summarises the maturity profile of the Group’s and Company’s financial liabilities at 31 December 2014 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
2014
Trade payables    1,092  – – –  1,092 
Other payables and accruals    227  – – –  227 
Borrowings    592   737   2,036  5  3,370 
    1,911   737   2,036   5   4,689 
2013
Trade payables    920  – – –  920 
Other payables and accruals    856  – –  –   856 
Borrowings    737   898  –  1,394   3,029
    2,513   898  –  1,394   4,805 
   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
Company   £’000 £’000 £’000 £’000 £’000
2014
Trade payables   38 – – –  38 
Other payables and accruals    34  – – –  34 
Borrowings   – –  2,036  –  2,036 
   72 –  2,036   –   2,108 
2013
Trade payables    920  – – –  920 
Other payables and accruals    264  – –  –   264 
Borrowings   – – –  1,394   1,394 
    1,184  –  –  1,394   2,578  Kemin Resources Plc  Annual Report 2014 29
Strategic report  01-05
Governance 06-11
Financial statements 12-32
14. Financial risk management objectives and policies continued
b) Interest rate risk
The Group and Company have 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 Pound Sterling 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. The amounts due in foreign currencies are noted below:
    Pound US  Kazakh  
    Sterling Dollar Tenge Total
Group 2014    £’000 £’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  – 1,054  1,092 
Other payables and accruals      34   112  86  232
Loans and borrowings      2,036   787   542   3,365 
      2,108   899   1,682   4,689 
    Pound US  Kazakh  
    Sterling Dollar Tenge Total
Group 2013    £’000 £’000 £’000 £’000
Loans and receivables at amortised cost
Cash and cash equivalents      11  –  –   11 
Other receivables      –   6   –   6 
      11 6  –  17 
Financial liabilities held at amortised cost
Trade payables      317 603 –  920 
Other payables and accruals      264   –  592 856
Loans and borrowings      1,042   860   775   2,677 
     1,623 1,463 1,367 4,453 
    Pound US  Kazakh  
    Sterling 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 payables and accruals      34  – –  34 
Loans and borrowings      2,036  – –  2,036 
      2,108  – –  2,108  Kemin Resources Plc  Annual Report 2014 30
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
//Financial statements
14. Financial risk management objectives and policies continued
c) Forex risk continued
    Pound US  Kazakh  
    Sterling Dollar Tenge Total
Company 2013    £’000 £’000 £’000 £’000
Loans and receivables at amortised cost
Amount due from subsidiary      –  603  –  603
Cash and cash equivalents      11   –   –   11 
      11   603   –   614 
Financial liabilities held at amortised cost
Other creditors and accruals      317   603  –  920 
Unsecured convertible loan stock      264   –  –  264 
Loans and borrowings      1,042   –  –  1,042 
      1,623   603  –  2,226 
The effect of a 10% strengthening/depreciation of the Pound Sterling against the US Dollar or Kazakh Tenge at the reporting date on the Pound Sterling 
denominated payables carried at that date with all other variables remaining constant, results in the following effect on the Group’s and Company’s losses  
and net liabilities and is shown below:
      2014 2013
      Pound Pound
      Sterling Sterling
Group      £’000 £’000
BP£ appreciation by 10%       (149)  (283)
BP£ depreciation by 10%       149   283 
      2014 2013
      Pound Pound
      Sterling Sterling
Company      £’000 £’000
BP£ appreciation by 10%      (164) (104)
BP£ depreciation by 10%      164 104 
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. These are analysed as set out below:
      2014 2013
      £’000 £’000
Share capital       7,916   7,688 
Share premium       37,414   35,693 
Total managed as capital       45,330   43,381 
e) Fair value
The Directors consider that the fair value of all financial assets and liabilities are not materially different from the carrying values. Kemin Resources Plc  Annual Report 2014 31
Strategic report  01-05
Governance 06-11
Financial statements 12-32
15. Share capital
Ordinary shares
Issued and fully paid ordinary 1p shares:
      Number £’000
1 January 2014       152,028,731   1,520 
Issued during the year
Share placement       22,804,310  228 
       174,833,041  1,748
Deferred shares
Issued and fully paid ordinary 499p shares:
      Number £’000
1 January 2014 & 31 December 2014       616,776,994   6,168 
On 30 June 2014 the Company issued 22,804,310 new ordinary shares of 1p each, to provide additional working capital and provide funds for the further 
development of the mining projects.
16. Capital commitments and contingent liabilities
The Group had the following capital commitments and contingent liabilities at the reporting date:
KRMC has a commitment to perform obligations under the exploration work programme amounting to £781,000 (KZT 218m), including investing £746,000  
(KZT 209m) in subsoil use operations, and making tax payments of £32,000 (KZT 8.9m). The work is to be performed for the extended exploration period  
from July 2013 to May 2016.
KRMC has a commitment to provide professional training to the Kazakhstan staff as follows. During the exploration period, 0.1% of the exploration costs.  
During the 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 0.1% of the direct operating costs of production to a special deposit account for formation of  
an abandonment fund, in 2014 an amount of £3,570 – KZT 1,000,000 was transferred, (2013: £3,000 – KZT 656,000).
The Company had capital commitments of £16,000 at the reporting date, and no contingent liabilities.
17. Notes to the cash flow statement
     Company  Group
    2014 2013 2014 2013
Current    £’000 £’000 £’000 £’000
Loss before taxation    (318) (55,407) (870) (3,099)
Adjusted for:
Finance expenses    191 242 531 316
Interest received    (14) – – –
Share based payment expense    – – – 2,629
Depreciation of tangible assets    – – 1 3
Amounts owed by subsidiary    – (603) – –
(Decrease) in trade and other receivables    (31) – (145) (29)
(Decrease)/increase in trade and other payables    (1,039) 941 (257) (996)
Impairment of investment    – 54,137 – –
Foreign currency translation    (61) – – 170
    (1,272) (690) (740) (1,006) Kemin Resources Plc  Annual Report 2014 32
Notes to the consolidated financial statements (continued)
year ended 3 1 December 20 1 4
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 remuneration of key management, being the Directors, 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.
      2014 2013
      £’000 £’000
Group
Shareholder loans to subsidiary
AltynMunaiGaz LLP       135   126 
AltynGroupKazakhstan LLP      –  204 
Hawkinson Capital INC       718   568 
Lanochkin S.S.      56  57 
Shareholder loans to parent company
Amrita Investment Limited       2,318   1,042 
      3,227  1,997 
Company
Shareholder loans to parent company
Amrita Investment Limited       2,318   1,042 
       2,318   1,042 
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 
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
On 16 April 2015 the Company applied to the Ministry for Investment and Development of the Republic of Kazakhstan for an extension of the exploration 
period of the contract No. 1605 until the end of 2018. Contract No. 1606 currently expires in May 2016, and is expected to be extended at that time. Kemin Resources Plc  Annual Report 2014 33
Directors
Kanat Assaubayev Executive Chairman
Ashar Qureshi Non-Executive Vice Chairman 
Sanzhar Assaubayev Chief Executive Officer
Aidar Assaubayev Non-Executive Director
Ken Crichton 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) 20 7932 2455
Web
www.keminresources.com
Kazakhstan office
4 BLDG. 122A
Kabanbai Batyr Str
Almaty
Republic of Kazakhstan
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 Kazakhstan audit, LLP
56 “A” , micro region 6
Almaty city, 050036
Kazakhstan
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
Company details Kemin Resources Plc  Annual Report 2014 34
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 Kemin Resources Plc  Annual Report 2014 35
Kemin Resources Plc
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Kemin Resources Plc
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www.carrkamasa.co.uk Kemin Resources Plc Annual Report 2014
Kemin Resources Plc
28 Eccleston Square
London
SW1V 1NZ
www.keminresources.com