AltynGold plc
ANNUAL REPORT AND
CONSOLIDATED FINANCIAL
STATEMENTS
for the Year Ended 31 December 2024
2 | AltynGold plc Annual Report 2024 2 | AltynGold plc Annual Report 2024
Strategic Report
At a glance 2
History of the areas of exploration 4
Chairman’s statement 7
Chief Executive Ocer’s review 8
Financial performance 12
Market review and share price
performance 13
Our strategy and business model 15
Principal risks and uncertainties 16
Non-nancial and sustainability
information statement 18
Directors’ Section 172 statement 23
Corporate social responsibility 25
Mineral resources statement 29
Corporate Governance
Corporate Governance Statement 34
Board of Directors 37
Directors Report 39
Statement of Directors’
Responsibilities 42
Audit committee report 43
Remuneration Committee - Statement 44
Annual remuneration report 45
Remuneration policy report 50
Independent Auditors’ Report 51
Financial Statements
Consolidated Income Statement and
Statement of Comprehensive Income 58
Consolidated Statement of
Financial Position 59
Company Statement of Financial
Position 60
Consolidated Statement of
Changes in Equity 61
Company Statement of Changes in
Equity 62
Consolidated Statement of Cash
Flows 63
Company Statement of Cash Flows 64
Notes to the Financial Statements 65
Notice of Annual General Meeting 91
WELCOME TO ALTYNGOLD PLC
AltynGold Plc (LSE: ALTN) is an exploration and
development company, with a gold producing mine in
Kazakhstan. The Company has been listed on the main
market segment of the London Stock Exchange since 2014.
To read more about AltynGold Plc visit our website
www.altyngold.uk.
AT A GLANCE
AltynGold’s main exploration and production assets are its 100% interest in the Sekisovskoye gold mine and its 100% interest in the
exploration site at TerenSai. The gold mine and the exploration site are based in north east Kazakhstan. In the most recent CPR in 2019
(page 27 of the Annual Report) the Sekisovskoye site has proved gold reserves of 3.47Moz and probable reserves of 0.33Moz. In 2024,
the Company sold 38,708oz increasing 18% from the prior year of 32,765oz.
Production and prots have been increasing in line with the budgeted plan for the mine, in 2024 net prot after tax was $26.4m
(2023: $11.3m and is targeted to be materially higher in 2025 with the addition of the third line of processing.
The mining licence for Sekisovskoye is valid until 17 July 2029, and the exploration licence for Teren Sai until March 2026. The Company
has the option to extend both licenses for further extensions in the future.
The Teren Sai Project is made up of a number of exploration targets in an area adjacent to the Sekisovskoye mine site. The Company is
currently concentrating on the exploration site designated as area 2 with a view to preparing this site for production during 2025. This
will involve agreement of the production plan with the authorities prior to commencement of site preparation, with the initial extraction
of gold being from open pit.
At Teren Sai the proved reserves amount to 0.8moz and probable reserves of 0.65moz. The CPR for the Teren Sai site is shown on
page 29 of the annual report.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
AltynGold plc Annual Report 2024 | 3AltynGold plc Annual Report 2024 | 3
OPERATIONAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
US$26.4m
COMPANY PROFIT AFTER TAX
(2023: US$11.3m)
US$50.9m
ADJUSTED EBITDA
(2023: US$22.3m)
US$20.4m
COMPANY REPAID BORROWINGS
(2023: US$16.6m)
US$49.7m
NET DEBT AT THE YEAR END
(2023: US$53m)
750,045t
ORE PROCESSED
(2023: 701,000t)
US$992/oz
OPERATING CASH COST
(2023: US$1,041/oz)
37,279oz
GOLD POURED
(2023: 33,110oz)
85.4%
GOLD RECOVERY RATE
(2023: 83.6%)
2.29g/t
MINED GOLD GRADE
(2023: 2.08g/t)
AltynGold plc Annual Report 2024 | 3
Development of the
processing capacity to
1mtpa was completed
in December 2024 as
previously indicated by
management.
Transport decline 1 is at
sea level, decline 2 is at
+34masl (2023: both
declines at 49masl)]
Development of the shaft
and tunnelling amounted to
4,079 linear metres, (2023:
6,432 linear metres).
Exploration drilling
of blastholes at
Sekisovskoye amounted
to 216,000 linear metres
(2023: 115,116 linear
metres).
UNDERGROUND DEVELOPMENT & EXPLORATION
KEY ACHIEVEMENTS IN 2024
The key highlights are documented below:
US$94.5m
TURNOVER
(2023: US$64m)
+46.1%
38,708oz
GOLD SOLD
(2023: 32,765oz)
+18%
US$2,441oz
AVERAGE GOLD PRICE ACHIEVED
(INCLUDING SILVER),
(2023: US$1,967oz)
+24%
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
4 | AltynGold plc Annual Report 2024
HISTORY OF THE AREAS OF EXPLORATION
1. Sekisovskoye
The Sekisovskoye deposit is the Company’s core asset and is located close to the village of Sekisovka, approximately 40km from
the north east Kazakhstan regional capital, Ust Kamenogorsk. The current licence expires in July 2029.
The mineral rights at Sekisovskoye are held by a 100% owned subsidiary of the Company, DTOO GRP Baurgold, and the
processing plant is owned by a 100% owned subsidiary of the Company TOO GMK Altyn MM.
The Sekisovskoye deposit was discovered in 1833 with surface mining taking place during the periods 1833 to 1847, 1932 to 1935,
and 1943 to 1946. From 1975 to 1986, a range of exploration work was carried out. Between 1978 and 1982 “AltaiZoloto” of the
Ministry of Non-Ferrous Industry, KazSSR, mined the oxidised area of the ore body. In 2003, under Hambledon Mining’s ownership
(subsequently renamed to AltynGold Plc), further exploration work was undertaken and gold production from the mine and
processing plant commenced in 2008.
In 2019, the Company received the ndings of the mining consultant, Ernst and Young’s Competent Persons Report on the mine,
which demonstrated substantial JORC reserves and resources, see page 21 for further details. Signicant capital expenditure
was incurred from 2020, with the Company establishing a platform to signicantly increase production, and purchase additional
mining equipment. The Company obtained additional funding in 2023 to expand the processing plant in order to increase its
production capacity, moving to a processing plant capacity of 1mtpa in 2024.
4 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 5
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTSSTRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. TerenSai Ore Fields
In May 2016, the Company was awarded the subsoil
exploration contract to conduct exploration testing at
the TerenSai ore eld for the 6 year term, this expired
in May 2022 and the Company that holds the licence in
Kazakhstan applied to extend the licence for a further 2
years, which was granted in March 2024.
The licence for further exploration is until March 2026,
the Company plans to nalise exploration works in 2025,
and submit plans to the authorities to prepare the site for
production during 2025.
The Company believes from the exploration drilling
conducted that this project has the potential to contain
signicant gold resources. A CPR was conducted in 2019
(see the report on page 23) which was very positive. The
site has the potential to add signicantly to the production
output of the Company in the future. The Company is
currently conducting further drilling and the aim is to move
to the production phase during 2025.
AltynGold plc Annual Report 2024 | 5
6 | AltynGold plc Annual Report 2024 6 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 7
Dear Shareholders,
The Board is pleased to report that 2024 marked a record year for
AltynGold, with revenues rising 46.1% year-on-year to US$94.5
million, supported by a 10% uplift in gold poured and a favourable
pricing environment. These results highlight the strength of
our operational execution and careful cost discipline, with the
Company remaining a low cost producer. The average gold price
rose to US$2,641/oz in Q4, enabling the Company to make record
operating prots, with an adjusted EBITDA in excess of US$50m.
Such results further underpinning management’s intention to
invest further in production enhancements to grow the Group’s
business in the coming couple of years.
Our performance is also a clear demonstration of our ability
to consistently execute the Company’s growth strategy. In
December, the third production line at Sekisovskoye was
successfully commissioned on time and budget, increasing
processing capacity by 50% to 1Mtpa. This marks a signicant
milestone in our development, reecting the dedication of our
management and sta, whose commitment remains a key driver
of our progress.
Financial strength and capital discipline
Our nancial performance in 2024 has strengthened the
Company’s balance sheet. We continued to reduce bank debt in
line with our repayment schedule and, in July, completed a Bond
issue successfully raising US$10m on the Astana Stock Exchange.
Thorough capital management remains our core principle,
ensuring the ability to fund growth while maintaining appropriate
debt levels. The strong cash generation achieved this year
provides a solid platform to support the Company’s medium-term
capital expenditure plans and strategic objectives.
Responsible operations and governance
AltynGold remains committed to operating responsibly and
transparently, guided by our core values of accountability,
integrity and sustainability. In 2024, we marked our fourth
consecutive zero-incident year, reecting our robust health and
safety culture and the eectiveness of our training and prevention
programmes. The Company as last year had no reportable injuries
that resulted in mine stoppages.
Across our operations, we strive to maintain close engagement
with our workforce and local communities, and we remain focused
on further embedding ESG considerations into our decision-
making and operational processes.
As part of our commitment to future growth to help ensure
broader institutional appeal, we are evaluating enhancements to
our governance framework that align with international standards.
Outlook and long-term growth
With the expanded capacity now in place, AltynGold enters its
next phase of growth. The Company is targeting a full-years
production of over 50,000 ounces in 2025, which, if achieved,
would mark a 60% increase in just two years. As a well-established
operator with over two decades of experience in Kazakhstan,
we continue to benet from deep regional knowledge, industry
connectivity, strong local partnerships, and a proven ability to
deliver in a complex operating environment.
Our long-term vision is to build AltynGold into a multi-asset,
multi-jurisdiction gold producer. In 2024, we made steady
progress toward this goal advancing preparations for the
TerenSai project, and we are actively reviewing several additional
domestic growth opportunities including advanced-stage
targets that could diversify our asset base and support sustained
growth. Kazakhstan remains a favourable and increasingly open
jurisdiction for mining investment, and we are well-positioned to
benet from this evolving landscape.
2024 has been an inexion point for AltynGold, both operationally
and strategically. With the foundation now laid for increased
production and a clear roadmap for expansion, we remain
condent in the Company’s ability to meet its longer term
growth targets. The management team remains fully focused on
delivering consistent operational performance and creating long-
term value for all stakeholders.
On behalf of the Board, I would like to thank our employees,
management and fellow directors for their dedication, hard work
and contribution throughout the year. I would also like to extend
our gratitude to our shareholders and partners for their continued
trust and support.
We look forward to updating you further as we continue to grow
the Company into a leading regional gold producer.
Kanat Assaubayev
Chairman
24 April 2025
AltynGold remains
committed to operating
responsibly and
transparently, guided by our
core values of accountability,
integrity and sustainability”
CHAIRMAN’S STATEMENT
AltynGold plc Annual Report 2024 | 7
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
8 | AltynGold plc Annual Report 2024
Overview
In 2024, the Company successfully delivered its key strategic
objectives, marking consistently improving operating
performance for AltynGold, key highlights including:
• Increasing processing capacity at Sekisovskoye to 1Mtpa.
The plant expansion and associated maintenance upgrade
works were completed on time and within budget at the end
of December 2024, with minimal disruption to operations.
Reecting well on our engineering and mining teams, whose
focus on delivering the Company’s projects to high quality
standards and tight timeframes positions the business well
for the future.
• The development of TerenSai, with further exploration works
in line with the agreed work plan. The move to the next phase
of planned development, which will prepare the site for
production, remains in line with the budgeted timeframe to
commence in Q3 2025.
• Raising capital in the most cost-eective and timely manner.
• Laying the groundwork for value creation by actively
reviewing additional potential domestic growth
opportunities.
Operational Developments
A primary focus in 2024 was the expansion of the processing plant
at Sekisovskoye, with a considerable amount of management
time and capital expenditure allocated to aligning production
capacity with our ore extraction target of 1 million tonnes per
annum (mtpa). I’m proud to report that the plant upgrade was
completed as planned in December, and the facility is now
operating at its new design capacity. Ore extraction for the year
totalled 750,000t, with processing volumes reaching nearly
594,000t. With the enhanced capacity now fully commissioned,
we are targeting gold production of over 50,000oz in 2025.
During 2024 the Company saw the continued development of its
underground infrastructure, including 4,079 linear metres (2023:
6,432) of tunnelling and 216,000 linear metres (2023: 151,116)
of blast hole drilling. Exploration drilling amounted to 19,200
linear metres (2023: 11,756), supporting future mine planning and
reserve growth. As the mine deepened, we progressed our twin
declines, with Decline No. 1 reaching +0masl in January 2025 and
Decline No. 2 to +34masl by year-end. Backlling, ventilation, and
drainage works progressed in parallel, with new infrastructure
installed for main fan units on Decline No. 2. The Company is now
well placed in 2025 to supply the increasing ore quantities needed
for the enhanced capacity at the processing plant.
In parallel with operational progress at Sekisovskoye, exploration
activities continued at the TerenSai licence area in line with the
approved work programme. During the year, the Company
drilled 54 core holes totalling 17,535 linear metres, targeting the
delineation of key ore bodies across multiple zones. The data is
currently being analysed to rene geological models and support
the development of a more detailed mine plan. Subject to results
and regulatory approvals, we anticipate preparing the site for
initial development in Q3 2025.
The key production gures are shown below:
Mining results ore extraction 2024 2023
Ore mined t 750,045 701,465
Gold grade g/t 2.10 2.01
Silver grade g/t 2.53 2.14
Contained gold oz 50,739 45,270
Contained silver oz 60,968 48,199
Mining results processing 2024 2023
Crushing T 680,489 595,457
Milling T 593,612 591,975
Gold grade g/t 2.29 2.08
Silver grade g/t 2.67 1.96
Gold recovery % 85.42 83.6
Silver recovery % 75.38 73.47
Contained gold oz 43,644 39,607
Contained silver oz 50,871 37,258
Gold Poured oz 37,279 33,110
Silver poured oz 38,349 27,372
With the enhanced capacity
now fully commissioned, we
are targeting gold production
of over 50,000oz in 2025.”
CHIEF EXECUTIVE OFFICER’S
REVIEW
AltynGold plc Annual Report 2024 | 9
Sekisovskoye planned operations in 2025
The completion of the processing plant in 2024 has released
resources that were previously committed to the expansion of the
processing plant. The plan for 2025 is to ensure that the planned
output for Sekisovskoye is met, implying a monthly processing
output of 83kt.
The map of the underground shows the projected development
in 2025, with further development of the declines and planned
extraction of ore.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
10 | AltynGold plc Annual Report 2024
TerenSai
In relation to TerenSai, the following map indicates the current targets within the prospective exploration site, and the location of the site
relative to Sekisovskoye.
The plots marked 5, 4 and 2 show the prospective drilling sites, the area as delineated in red was returned to the government, and was the
original exploration area.
The scheme of the contract territory with a return site and 3 sites for evaluation works
with an area of 4,489 sq.km
CHIEF EXECUTIVE OFFICER’S
REVIEW continued
AltynGold plc Annual Report 2024 | 11
Capital requirements
We maintained strict cost control across the business, ensuring
that our capital expenditure programme remained aligned with
our balance sheet strength and future cash ows. To support this,
we successfully raised US$10 million on the Astana International
Exchange and continued to reduce bank debt in line with our
repayment plan.
The CAPEX budget, as outlined below, primarily relates to the
continued development of the mining works at Sekisovskoye,
specically the development of the declines and the nal amounts
payable in relation to the expansion of the processing plant and
enhancement of the tailings dam. Prepayments have already been
made in relation to several items in the 2024 budget, including the
amount payable for the milling equipment required to expand the
processing plant’s capacity.
Regarding TerenSai, the current capital expenditure (capex)
budget, as outlined below, relates to the committed capex works
as agreed upon with the Kazakh mining authorities for the further
exploration works envisaged during the 2-year licence period.
Further advancement of the TerenSai project to full production will
subsequently depend on raising additional funding.
Projected capital
expenditure
Total
US$m
2025
US$m
2026
US$m
2027
US$m
Underground
development 24 9 7 8
Infrastructure - buildings
and facilities 18 7 6 5
Prospect drilling 6 3 2 1
TerenSai work program 5 5 - -
Underground mining
equipment 4 4 - -
Tailings dumps 1 1 - -
Process plant equipment 3 3 - -
Total 61 32 15 14
Outlook
With a major infrastructure programme at Sekisovskoye now
complete and processing capacity at full scale, we are positioned
to deliver substantial production growth and operating
eciencies in 2025. The completion of the plant expansion has
freed up internal resources that were previously dedicated to the
upgrade, enabling us to focus on meeting our increased output
targets.
Our clear focus for 2025 is to maintain a steady processing rate
of 83Kt per month. In 1Q 2025 the volume of ore processed was
208kt. The new line was bedded in January, with output steadily
increasing on a monthly basis with a output of 75kt in March
2025. With the processing plant now stabilised, we are condent
in achieving full-year production of over 50,000 ounces,
representing a 60% increase over two years.
We continue to assess various regional and domestic growth
opportunities, including advanced-stage assets that could
support AltynGold’s ambition to become a multi-asset,
multi-jurisdictional gold producer. Kazakhstan remains a well-
established and increasingly attractive mining jurisdiction, and
we are encouraged by the investment climate and regulatory
engagement.
Our team’s consistent delivery against strategic objectives
reinforces our condence in AltynGold’s long-term potential. I
would like to extend my sincere thanks to our employees, partners,
and stakeholders for their continued dedication and support.
Aidar Assaubayev
CEO
24 April 2025
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
ANNUAL GOLD POURED (OZ)
37,279
2024
2023
2022
37,279
33,110
34,023
ANNUAL GOLD SALES (OZ)
38,708
2024
2023
2022
38,708
32,765
34,499
REVENUE - GOLD/SILVER (US$M)
94.5
2024
2023
2022
94.5
63.7
61
OPERATING CASH COST OF
PRODUCTION (US$/OZ)
992
2024
2023
2022
992
1043
805
EBITDA - ADJUSTED (US$M)
50.9
2024
2023
2022
50.9
22.3
21.9
NET ASSETS (US$M)
82.2
2024
2023
2022
82.2
70.7
62.2
FINANCIAL
PERFORMANCE
KEY PERFORMANCE
INDICATORS
The revenue for the year increased as a result of a stronger gold price during the period,
combined with the increased level of production and gold grades achieved in the year.
During 2024, the Company sold 38,708oz of gold (2023:32,765oz) at an average
price US$2,441per oz (2023: US$1,967). Due to the higher gold price the revenue saw a
signicant increase, increasing to $94.5m for the gold output from US$63.6m.
The rening of the dore is carried out by the Kazakh national renery, which, as in prior
years takes 100% of the output produced at the prevailing US Dollar spot prices.
Costs have risen during the period, with the total cost of sales increasing from US$41m to
US$47m. The principal factors for the change are the increased costs of ore extraction
paid to subcontractors of US$2.6m, and US$1.9m being an increase in mineral extraction
taxes. In both cases, these result from higher rates being charged combined with an
increase in the volume of ore extracted and processed. In addition, due to the increase
in processing capacity, the employee count has increased from 477 to 530 adding an
additional US$1m to the payroll cost.
Ore mined increased again from the prior year of 701,000t to 750,000t. The budgeted
production schedule for 2025 is to increase this to 1mtpa during 2025 to feed the
increased production capacity of the processing plant.
In 2024 production resumed to normal budgeted levels of 37,279oz (2023: 33,110 oz).
This was aided by an increase in recovery levels which also increased to 85.5% (2023
83.6%).
Total cash cost of production, which includes administrative costs but excludes
depreciation and provisions, amounted to US$1,162/oz, (2023: US$1,254/oz). Operating
cash costs excluding administrative costs amounted to US$992/oz (2023: US$1,041/
oz). As noted above due to the increase in capacity, costs have increased overall, but as
noted last year as production increases the expectation is that operating cash costs will
decrease.
Administrative costs decreased to US$6.6m in (2023: US$7.0m) and reect the one-o
nature of certain 2023 costs relating to the plant expansion, such as consultancy and
increased transport costs which were incurred in 2023.
The Company realised a gross prot of US$49m (2023: US$23.3m) and net prot after
tax of US$26.4m (2023: US$11.3m). Adjusted EBITDA increased to US$50.9m (2023:
US$22.3m). Details of the calculation are shown in note 13 of the nancial statements.
Cash at year end was US$10.4m (2023: US$5.5m). The movement in funds is principally
due to the following;
• Cash generated from operations after movements in working capital amounted to
US$29.4m (2023: US$14.7m), reecting the strong growth in revenue.
• Funds utilisation included US$21.9m in relation to capital asset acquisitions (2023:
US$40.2m), a signicant reduction as the plant upgrade is essentially complete.
• US$20.4m (2023: US$16.6m) in relation to repayment and servicing of debt and
• New loans raised amounted to US$22.4m (2023: US$51.5m), principally utilised to
modernise and expand the processing plant.
The overall level of debt as of the end of 2024 stood at US$60m (2023: US$58m), the
build-up of debt was necessary for the expansion of the processing plant. This is set
to decrease by US$20m under current repayment plans during 2025 as the loans are
repaid.
Gearing as measured by the Company is on the following basis, net debt (being
total debt less cash balances) divided by total capital (equity plus debt). This is set to
decrease from over 35% at the end of 2024 to under 25%, by the end of 2025.
12 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 13
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
FTSE 350 MINING INDEX
GOLD PRICE US$/OZ
ALTN AGAINST FTSE 350 MINING INDEX
ALTN P PER SHARE
KZT/USD
FTSE 350 MINING INDEX AGAINST ALTN
MARKET REVIEW AND SHARE PRICE
PERFORMANCE
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
Jan
24
Feb
24
Mar
24
Apr
24
May
24
Jun
24
Jul
24
Aug
24
Sep
24
Oct
24
Nov
24
Dec
24
1,500
1,700
1,900
2,100
2,
300
2,
500
2,
700
2,900
Jan
24
Feb
24
Mar
24
Apr
24
May
24
Jun
24
Jul
24
Aug
24
Sep
24
Oct
24
Nov
24
Dec
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ALTN% FTSE 350%
Jan
24
Feb
24
Mar
24
Apr
24
May
24
Jun
24
Jul
24
Aug
24
Sep
24
Oct
24
Nov
24
Dec
24
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
400
420
440
460
480
500
520
540
Jan
24
Feb
24
Mar
24
Apr
24
May
24
Jun
24
Jul
24
Aug
24
Sep
24
Oct
24
Nov
24
Dec
24
FTSE 350 Mining Index Altyn plc
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
50.0
100.0
150.0
200.0
250.0
300.0
Jan
24
Feb
24
Mar
24
Apr
24
May
24
Jun
24
Jul
24
Aug
24
Sep
24
Oct
24
Nov
24
Dec
24
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
14 | AltynGold plc Annual Report 2024
Commentary
AltynGold share price commenced the year at a level of £1.06. During the
year there was a signicant uplift in the share price reecting the increased
productivity of the Company, combined with the rapid increase in the price
of gold. This has moved the share price up to a range of £3.80 and above. The
market capitalisation of the Company has increased substantially and is now in
the range of £108m based on a share price of £3.80. With increasing volatility
due to the current economic climate and upward pressure on the price of gold,
the share price still appears to have further upward momentum.
The Company’s strategy has been focused on growth by expanding its
productive capacity, by adding a third processing line and upgrading its
mining equipment. This was achieved at the end of December 2024 with the
additional production line coming on stream in 2025.
Charts below show that the gold price rose in the period moving from the
US$2,000oz range breaching the signicant US$3,000oz mark during 2025.
Current forecasts do not see any signicant correction in the midterm.
The exchange rate in the prior year was at 450 Kazakh Tenge to a Dollar. This
has moved to a higher level and is currently trading around KZT500. As dollar
loans are reduced during the year this will benet the Company given foreign
currency denominated revenue.
MARKET REVIEW AND SHARE PRICE
PERFORMANCE continued
14 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 15AltynGold plc Annual Report 2024 | 15
Our business model is two-pronged,
consisting of the continued development
of the agship underground
Sekisovskoye mine while seeking further
growth opportunities at the adjacent
TerenSai Ore Fields. For Sekisovskoye,
the short term target is to reach an annual
ore extraction level of 1mtpa, which will
be further increased to 2mtpa over the
longer term. For TerenSai, the initial
drilling tests have already indicated
grades of 1.8g/t which will be extracted
from open pit mining operations.
In combination, our strategy aims to achieve a longer
term target of 100,000oz annual gold production.
In addition to the above, the Company is always
evaluating other projects to complement existing
operations with potential acquisitions.
Mining
The Company has a proven track record with its
successful development of the Sekisovskoye
mine. We intend to continue the expansion of
Sekisovskoye mine in the most cost eective
and ecient manner, while moving TerenSai
to the production phase; initially open pit then
underground.
Development
The underground mine and processing facility
need to be further developed in order to access
signicant ore reserves at increased depth which
should extend the life of the Sekisovskoye mine.
The development of open pit operations at
TerenSai should allow an increase in production,
moving annual output of gold produced towards
100,000oz per annum.
Exploration
The Company has been conducting extensive
exploration at the TerenSai site with the completed
CPR and extraction of test production yielding
good results.
Growth
We are committed to adding value to our
shareholders by setting solid foundations for future
production growth. As such, we frequently evaluate
investment opportunities in Kazakhstan and Central
Asia in case of potentially synergetic additions to
our core assets.
DevelopmentExploration
Growth and
Evaluation
Mining
Develop
Continue to develop our high
grade underground mine
at Sekisovskoye
Grow
Production and asset
base growth via the highly
prospective Karasuyskoye
Ore Fields
Progress
Continue to grow
OUR STRATEGY AND
BUSINESS MODEL
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
PRINCIPAL RISKS AND
UNCERTAINTIES
The Company has reviewed the principal risks associated with the development of the Company, and there has been no material changes
in the level or likelihood of the risks. The Company has considered the current situation in relation to, the eect of environmental factors,
and the current political and economic environment, details of which are noted below:
Risks Mitigation
Technical diculties
developing the
underground mine
at Sekisovskoye and
exploration site at TerenSai
Encountering technical diculties in further developing the underground mine at Sekisovskoye and
developing the site at TerenSai to bring the prospective exploration site into production would be
negative for the future of the Company. To mitigate this, the Company uses external consultants as
appropriate to provide technical assistance when required, and works to a mine plan and budget
that is regularly checked and updated. The current test production at TerenSai indicates that the
production of dore from the site is technically feasible. A further exploration work program is now in
place to commence in the rst half of 2025, and a production plan in relation to future development
of the site is being prepared and will be rened once the exploration phase is completed at Area No 2.
Failure to achieve
production estimates
Failure to achieve production estimates could arise due to various circumstances, not least mining
issues, processing plant issues and breakdowns, and political and other disruptions. Given that
Company revenues are dependent on producing gold and silver from the Sekisovskoye mine, failure
to achieve production targets would adversely aect the Company’s protability and ability to
generate cash. The Company mitigates this risk by careful operational planning and detailed technical
appraisal work, as well as regular maintenance work.
The Company’s management has analysed the risks and uncertainties and has in place control
systems that monitor daily the performance of the business via key performance indicators. Certain
factors are beyond the control of the Company such as the uctuations in the price of gold and
possible political upheaval. However, the Company is aware of these factors and tries to mitigate
these as far as possible. In relation to the gold price the Company is pushing to achieve a lower cost
base in order to minimise possible downward pressure of gold prices on protability. In addition, it
maintains close relationships with the Kazakhstan authorities in order to minimise bureaucratic delays
and problems.
Fiscal changes in
Kazakhstan
Given that Altyn operates solely in Kazakhstan, the Company is naturally at risk of adverse changes to
the scal regime in the country. However, the country is outward looking and committed to attracting
foreign direct investment. Kazakhstan has hosted international exhibitions and sporting events, and
is positively encouraging investment, including relaxing visa requirements. We therefore believe
that the Kazakh government is aligned with potential foreign investors and would be very cautious
in implementing any scal changes that could deter investment. Recent tax audits of the subsidiary
companies have not revealed any material discrepancies. The Company has consulted with the tax
authorities and provided all necessary information as and when required, and will seek expert tax
advice as and when necessary.
No access to capital Funding Sekisovskoye - in order to continue with the underground development at Sekisovskoye,
the Company must incur additional capital expenditure. The Capital raised recently has provided
sucient investment for the company to move towards its medium term target of increasing the
productive capacity. In order to develop the site at Teren Sai and Sekisovskoye to their full potential
the Company is dependent on cash from external sources to develop the mine after this point and
therefore its future is at risk if funds from these external sources are unavailable. The Company is
developing a number of lines of funding to provide the required level of funding. The Assaubayev
family, who benecially own the majority of the shares, has invested in and provided loans to the
Company in the past and is keen to see the Company succeed. However, without further external
funding to complete the underground mine, production would proceed at a much slower pace. The
Company maintains good relations with its banks and bond holders who have proved to be a good
source of funds at reasonable rates for the current expansion program.
Commodity price risk The Company generates its revenue from the sale of gold and silver that it has produced. While the
Company has no control over commodity prices, it is in a fortunate position of having a very robust
mine and development project in Sekisovskoye that can withstand prolonged weak precious metals
prices. The Company is signicantly increasing production, once further equipment is obtained.
The lower resulting cash cost of production will provide a signicant buer from falling commodity
prices. The Company is looking at alternative sources of supply on a regular basis, and extending and
developing its supply chains to maintain quality but at keen prices.
16 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 17
Risks Mitigation
Inationary & Currency risk Inationary pressures are increasing throughout the world, leading to higher commodity and
overhead costs. In Kazakhstan this is balanced by the fact that some costs are paid in Kazakh Tenge,
but the revenues are earned in dollars.
The US Dollar has maintained a level in the current year at the level averaging KZT470 against KZT450
in 2023, but in 2025 is up to KZT 500. As the revenue is generated in US Dollars, any strengthening
of the US Dollar against the Kazakh Tenge will favour the Company, as a number of costs are being
met locally in Kazakh Tenge. The Company will try to mitigate the eect as previously mentioned by
expanding the sourcing of its supplies.
Reliance on operating in one
country
Currently, all of the Company’s mining assets are in Kazakhstan. The Company believes that
Kazakhstan has signicant future mineral potential, hence the choice of jurisdiction. The Company
makes it its business to be well informed of any in-country changes which may adversely aect
the business. While the Company knows and understands Kazakhstan well and hence has a strong
position in-country, it has stated that it would look at other opportunities in the future within the
Central Asia region and this may mitigate risk.
Altyn’s reliance on one
operation
Currently, the Company only generates revenue from one mine - Sekisovskoye. The Group has
recently extended the licence for a further two years at Teren Sai, with a view to developing this asset
to achieve production in the future. This will diversify the Company from the reliance on one site. The
Company is also always looking to develop other business opportunities to complement the existing
operations.
Political uncertainties Kazakhstan historically has close ties with Russia which at present is under the continuing imposition
of sanctions from a number of countries. Kazakhstan has not been aected by the imposition of
sanctions and is attracting inward investment from a number of countries internationally.
The Company maintains good relations with relevant government bodies and it has a stable and
loyal workforce which is sourced locally near the mine and is largely insulated from the disruptions
in the major cities. There have been no issues or disruptions with and the Company maintains good
communications with its stakeholders to ensure any issues are highlighted and dealt with early.
Health, safety and
environmental issues
The Company is aware of its obligations to all stakeholders in relation to maintaining a safe work
environment. It liaises on a regular basis with the authorities and monitors and reports on a regular
basis key environmental indicators such as air and water quality. There were no reported incidents
of accidents in the year at the mine. The Kazakh authorities have recently reviewed and updated the
environmental code in Kazakhstan. This has imposed a number of new regulations and requirements
on the Company. The Company has reviewed its obligations under the code to ensure that it monitors
and complies with the new requirements.
The Company is also aware of its longer term obligations in relation to reducing its carbon footprint
and aims to ensure that this is considered in its decision making processes and the impact and costs
to the wider environment. The Company is also keenly aware of the impacts arising due to changes
in the climate due to global warming, which may increase risks to the Company in terms of climatic
changes such as extreme changes in weather and potential increase in ood risks.
In this regard it has set up a board committee to monitor and progress its obligations.
Further details in relation to the measures the Company is taking in relation to environmental issues are
outlined in the sustainability information statement and its Corporate Responsibility Statement.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
18 | AltynGold plc Annual Report 2024
NON-FINANCIAL AND SUSTAINABILITY
INFORMATION STATEMENT
As required by The Companies
(strategic report) (climate related
nancial disclosure) Regulations 2022
(CFD), and the listing rule UKLR 6.6.6R,
the Company’s actions have been
mapped against the recommendations
as developed by the task force on
climate-related nancial disclosures
(TCFD).
The Company has reviewed the principal risks associated with
climate change and sustainability, covering the physical risks
associated with the climatic change of higher temperatures and
changing weather patterns, and the transition risks associated
with a move to net zero in terms of new technology and working
practices. The report focuses on the two trading subsidiaries
based in Kazakhstan that are included within the consolidated
accounts of the parent AltynGold plc. The parent is not material to
consider under CFD and TCFD as it operates as an administrative
hub managing the trades of the subsidiaries and there is little
impact from climate change. As part of the review the Company
has considered the overall risks and the opportunities arising from
the impacts of climate change.
The mining industry is highly dependent on physical conditions
to be able to operate eectively, and as such, future variations
in weather patterns globally with climate change will increase
vulnerability to operational and supply chain disruptions.
Machinery used for mining, processing and transportation is also
highly reliant on fossil fuels as a source of energy, making the
industry carbon intensive and highly exposed to risk of change and
adaption to new working practices.
The climate change disclosures fall under four thematic pillars,
governance, strategy, risk management, and metrics and
targets. The Company has mapped its compliance with the
recommendations below, and its future plans to enhance its
compliance and reporting in each area in order to manage
potential risks for the business. This report should be read
together with the Company’s approach to environmental matters
and levels of greenhouse gas emissions emitted as detailed in the
Corporate Social Responsibility Report on page 25 of the Annual
Report, in order to gain a full understanding of the compliance
requirements of the TCFD framework.
The Company has compiled in all respects with the disclosures
under the CFD and TCFD regulations other than the following,
those relating to a stress testing of the resilience of the Company
to a two centigrade change in climatic conditions, setting of
specic metrics and targets in relation to monitoring of the eects
of climate change on the Company performance, and disclosure
of Scope 3 emissions as noted on page 28.
The Company is in the process of developing a fuller
understanding of the emerging and changing eects that climate
change may have on the Company, and is looking to consult
with experts in the eld during 2025. Currently, there is no formal
process in place yet for the Board of Directors to monitor and
oversee progress against Greenhouse Gas (GHG) emissions
and climate goals and targets. This governance process will be
established once the GHG and climate related targets have been
set, and monitoring, governance and reporting programs have
been established. This work is already in progress as evidenced
by the quantication and reporting of GHG emissions, the
continuing development of a carbon reduction strategy and the
completion of a Climate Risk Assessment (CRA) on key physical
assets owned and managed by the Company. The Company is
aiming to establish its metrics and targets to fully comply with the
requirements of CFD and TCFD within 12-18 months.
AltynGold plc Annual Report 2024 | 19
The Company is currently monitoring the risk of changing demand
for its metal products under a low-carbon economy. As part of the
next stage in the development of a strategy to monitor and adapt
to various changes in the climate, the Company is in the process
of developing models that would reect the eects that may
arise as relevant to the trade of the Company and impact thereof.
The physical and transitional risks as currently identied by the
Company due to potential climate changes are detailed on
page 18.
Governance arrangements and strategy in
assessing and managing climate-related
risks and opportunities
The Company regards this issue, as does the wider community, as
growing in importance.
In 2022 it appointed two independent Non-Executive Directors to
oversee the Company’s compliance with local environmental laws,
and to assess the impact of climate change and the move to net
zero on the Company. To a large extent as described in the social
responsibility report on page 25, the basis of the environmental
approach is governed by the requirements of compliance with
the environmental laws of Kazakhstan. The two Directors Maryam
Buribayeva and Vladimir Shkolnik receive regular updates on a
quarterly basis on the Company’s environmental matters as part
of its ongoing obligations as a mining company in Kazakhstan.
The reports are received from the environmental department that
monitors the overall approach to compliance with environmental
regulations and is responsible for climate related matters.
The impact of climate change on the nancial and operational
policies of the Company are part of the overall framework
operated by the management to identify the risks and
opportunities that may arise from adaption to climate related
risks. The monitoring of the risks and opportunities arising will be
assessed and at Board level by the executive Directors from the
information received from the delegated board as noted above,
and communicated with other Directors as actions are needed.
The board committee will report to the main board on any issues
of importance as they arise, in particular if there are any issues to
consider in the overall strategic planning. During 2024 the carbon
foot print and related matters were considered by the Directors as
part of the plans in implementing the plant expansion.
Process of identifying and assessing
climate-related risks and opportunities
identied and integrated into the overall
operations of Company’s management
process
As the Company operates in a sensitive environmental industry
in Kazakhstan, it has a dedicated environmental department
that deals with its obligations under its mining licences. This
department has been charged with the remit of assessing the
impact of any climatic changes that may occur in the future on
the operations of the Company, together with the consideration
of the risks and opportunities of the transition of the Company to
net zero. It is in the process of developing modelling to include
identied climate related risks to assess in more detail the
estimated nancial risks on the Company.
The initial starting point for assessing climate related issues
that may aect the Company is the environmental legislation
in Kazakhstan. This will cover such matters as impact on the
environment, pollution, managing resources and dealing with
waste products. As the Company does operate in extreme
climatic ranges of temperatures the physical risks are well
known and monitored on a regular basis. This will form the basis
of identifying the risks of environmental factors aecting the
Company and are monitored on a monthly basis for reporting to
the authorities if necessary and is part of the overall safety regime.
The principal risks considered are physical factors, such as
increasing temperatures, ooding and other associated matters,
regulatory matters such as increases in taxes (pollution taxing)
and environmental controls, supply chain and increasing costs of
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
20 | AltynGold plc Annual Report 2024
NON-FINANCIAL AND SUSTAINABILITY
INFORMATION STATEMENT continued
Climate related risk
Financial impact on the
Company
Materiality and
timing
Risk management actions
and strategy
Flooding - in North Western
Kazakhstan there was extreme
ooding caused by snowmelt.
This was an unusual and rst time
occurrence on this scale which
caused surface water ooding.
There is a risk it could impact
mine operations.
The mine is located in North Eastern
Kazakhstan, but it may pose a risk
in the future. Currently with the
upgrade works now complete the
mine is well adapted. However
severe oods hold potential to
aect our operating costs, through
increasing the amount of pumping
required to remove water from
mine pits, or lead to mining and
processing delays.
Short term - not
material
The management have reviewed
the current pumping and water
management procedures on site,
and with the current upgrades and
investment in equipment do not
see a material impact. Additional
training and review of procedures
are being implemented and the
situation will be kept under review.
Extreme heat and dust - More
extreme temperatures or
longer dry season leading to
heightened dust concentrations
and additional costs associated
with running dust suppression
measures and ventilation at the
mine site.
Dust and ventilation is a priority
air quality issue for the Company,
arising due to mining activities,
and is exacerbated by dry and
windy conditions. Hotter and drier
conditions with climate change will
lead to higher dust concentrations,
increasing operating costs
associated with these controls,
and increase in the amount of
equipment needed.
Short term - not
material
The Site operates in hot dry
conditions in summer however
there may be further investment
needed in provision of further
ventilation equipment and
water provision for workers. The
Company will evaluate potential
costs and benets associated with
investing in additional equipment
as necessary, however with the
recent mine upgrades it is not seen
as signicant at present.
materials and equipment as well as changes in technology. The
Company assess risks and actions that may need to be taken as
short term less than 2 years, medium term 10 years , and longer
term 20 years, together with the likely of occurrence as low <10%,
medium 10%-50%, and high >50%.
In terms of quantifying risks the Company will assess each
risk based on the potential cost/benet to the Company. The
cost is based judgementally on the estimated impact on for
example closure of the mine or benet from cost savings that
may be made. The physical factors such as those noted below
are deemed as more important, but as already noted as the
companies operate in climatic extremes they are built into the
overall risk assessment process. The risks and opportunities are
initially assessed at subsidiary level and considered further at
Board level as part of the overall strategy for the Company.
The North West of Kazakhstan experienced severe ooding in
2024 aecting a large swathe of the country. In order to manage
more severe ooding scenarios capital improvements were made
to the ventilation and water management in the mine. In addition
as part of the Company’s commitment to the local community
investment is made to the local infrastructure on an ongoing basis.
As part of this process of identifying the wider risks and
opportunities the executive management will consider the future
plans in relation to development of the mine at Sekisovskoye and
the exploration site at TerenSai. This will cover as part of the review
purchasing of equipment and resources, development of the
infrastructure, transport of materials to and from the site, energy
usage, and dealing with rehabilitation of the site in the future. At
present this is being considered through internal evaluations.
The Company has also been utilising external consultants to aid
the Company in its evaluation processes as part of its normal
environmental responsibilities. The Company is currently sourcing
external consultants to increase the scope of reporting to cover a
wider range of environmental, social and other matters.
During the upgrade to the plant in 2024, the environmental
impacts were considered as part of the overall planning and
purchase of equipment and in 2025 the costs of rehabilitation of
the site were reviewed bearing climatic and other factors in mind.
Principal climate-related risks and strategy
The two mining trading subsidiaries are both operating in
Kazakhstan.
Kazakhstan is a land locked country. In the interior of the continent
it experiences extremes in temperatures ranging from -30c to
+30c in Sekisovskoye where the mine is operational. Any impact in
relation to changes in the climate are not expected to impact the
operational capabilities of the Company as it already operates in
an extremely challenging environment.
There is expected to be minimal operational impact on the
Company from physical changes in the environment in either
Astana or Almaty which are the administrative hubs of the
Company.
AltynGold plc Annual Report 2024 | 21
Transition risks
The risks and opportunities are identied below it is uncertain
as to the nancial eect or the time scale in relation to various
risk factors identied. The Company has recently nished a
signicant upgrade to the Sekisovskoye site and purchased a
signicant quantity of plant and there is not expected to be any
material impact in the short term (less than 2 years). The next major
investment in a processing plant will be in relation to Teren Sai,
which is expected to be in the midterm. The risks were qualitatively
assessed as short (> 2 years), medium (3-5 years) and long-term
(5+ years). The Company will keep the time horizons as they relate
to the Company under review, taking into consideration the
condition and age of the equipment, operational processes and
life of mine, and infrastructure.
Risk type Risk /opportunity
Impact on the
Company
Materiality and
timing
Risk management
actions and strategy
Policy The regulations in the
country may change,
which results in additional
administrative costs
and also impacts future
production and costs. The
Company may benet by
the use of government
grants, incentives and
support to switch to low
carbon equipment.
The environmental laws
in Kazakhstan have
recently been updated
by the government, see
page 27 of the Corporate
Responsibility Report.
The Company is in full
compliance with the
current regulations and will
be with the increasingly
tighter targets as they
progress in the future.
Medium term - material The newer machines
will provide a cleaner
working environment for
the workforce. As the
majority of machines
and the infrastructure at
Sekisovskoye has been
recently upgraded this
is currently not seen as a
signicant issue for the
Company. In the medium
term there may be some
impact as TerenSai is
developed and moves to
the production stage, in
terms of the acquisition of
potentially more expensive
low carbon machinery and
plant processes.
Technology New machinery may need
to be acquired with a
lower carbon technology,
with impacts in relation
to lead times, installation
and training. The benet
to the Company would
be that newer machinery
may be more ecient
and less polluting to
provide a better working
environment to the
workforce.
High polluting assets
may be retired early,
with consequent knock
on to further costs for
replacement assets.
Further funding may be
required to nance the
switch to low carbon
assets, which may require
further equity/debt
nancing.
Medium term - not
material
The newer machines
will provide a cleaner
working environment for
the workforce. As the
majority of machines
and the infrastructure at
Sekisovskoye has been
recently upgraded this
is currently not seen as a
signicant issue for the
Company. In the medium
term there may be some
impact as TerenSai is
developed and moves to
the production stage, in
terms of the acquisition of
potentially more expensive
low carbon machinery and
plant processes.
Legal &
reporting
Increased reporting
requirements, the use
of resources internally
and possibly externally
to meet reporting
requirements. There would
be greater awareness of
the challenges facing the
Company and the wider
community with regard to
climate change.
The Company could be
at risk to climate-related
legal action, reputational
issues (social licence to
operate) and investor risk
which could materialise as
increased costs, longer
permitting delays, higher
interest loans, or reduced
access to capital.
Short term - not material The Company is
developing a greater
awareness of the
challenges facing the
Company and the wider
community with regard to
climate change.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
22 | AltynGold plc Annual Report 2024
NON-FINANCIAL AND SUSTAINABILITY
INFORMATION STATEMENT continued
Metrics and targets
From the initial analysis the Company has not set targets or KPIs
to review the impact of actual or potential climate related risks
as the impact on the Company in terms of physical and transition
risks. In the short term the risks are not deemed material, in the
medium term with increased focus on this area there may be
increasing costs as regulations are expanded. The Company is
currently looking at employing consultants in the eld to review
and rene its analysis of any climate related issues at which point it
will look at setting KPIs and targets to be monitored as stated this
is expected to be in place in 12-18 months.
As noted in the corporate and social responsibility report on
page 27 the Company is assessed in Kazakhstan by the regulators
as a low or high emission business and dierent levels of checks,
controls and reporting requirements need to be met. In the
case of the companies in Kazakhstan these have been assessed
and categorised as low emission producers. The Company has
reported on the current level of greenhouse emissions, (GHG)
on page 28 of the report, noting Scope 1, and 2 emissions as
compiled by the Company. The accounting department will
collate all data in terms of energy usage for the Group and pass on
the data to the environmental department to calculate the actual
metrics of GHG emissions.
The Company has reviewed the data and information in relation to
the capture of information for the Scope 3 emissions disclosures
and calculations and based on the assessment are not satised
with the level of estimation and completeness of the data. On
this basis the information has not been included in the current
annual report, and in this regard the Company is therefore not fully
compliant with the TCFD requirements. The Company will develop
procedures in order to report on this data in the next annual report
Risk type Risk /opportunity
Impact on the
Company
Materiality and
timing
Risk management
actions and strategy
Reputational The move to a low
carbon economy, and
investor and wider public
sentiment moving against
those seen as high
polluting companies. If
the Company moves to
embrace plans to review
and move to low carbon
working practices at all
levels of the organisation
including Company,
customer and supply chain
levels, it will enhance the
prole of the Company.
This may aect the ability
of the Company to train
and recruit people as
well as raising nance.
Ultimately resulting in a
lowering of the value of the
Company, as there may
be a reduction in demand
from both investors and
shareholders.
Medium to long term - not
material
The Company is
developing plans to review
and move to low carbon
working practices at all
levels of the organisation
including Company,
customer and supply chain
levels.
Increasing
taxes
Policymakers in Kazakhstan
are implementing taxes
on carbon emissions and
over time these may be
increasing in weight and
scope. The Company will
be increasingly exposed to
the cost of carbon.
As a result, it is possible that
the operations and supply
chain will fall under some
form of carbon pricing
mechanism in the future,
leading to increased direct
and pass-through costs.
Failing to prepare for this
could lead to signicant
nancial pressure on the
Company to decarbonise
quickly to avoid the worst
impacts. In the short-term,
it is expected to be low. We
therefore do not anticipate
any signicant impacts until
the mid to long term.
Medium term - material Further develop and
implement our emissions
reduction targets
and plans. Currently
the subsidiaries are
categorised as low carbon
polluting companies.
Continue to engage
with governments to
evaluate renewable
energy opportunities,
and assess feasibility of
using renewable energy
for any new operations,
using government grants if
available.
AltynGold plc Annual Report 2024 | 23
DIRECTORS’ SECTION
172 STATEMENT
Statement by the directors in performance
of their statutory duties in accordance with
s172 (1) Companies Act 2006.
In summary the statement provides that a director of a Company
must act in a way that he considers, in good faith, would be most
likely to promote the long term success of the Company for the
benet of its members as a whole, and in doing so have regard
(amongst other matters) to various other stakeholder interests.
The 6 key factors are:
• the likely consequences of any decision in the long term;
• the interests of the company’s employees;
• the need to foster the company’s business relationships with
suppliers, customers and others;
• the impact of the company’s operations on the community
and the environment;
• the desirability of the company maintaining a reputation for
high standards of business conduct; and
• the need to act fairly between members of the company.
The Board of Directors of AltynGold Plc both individually and
collectively act in the way they consider in good faith would be
most likely to promote the success of the Company for the benet
of its members as a whole (having regard to the stakeholders and
considerations set out in s172 (1) (a-f) of the Act). In decisions taken
on the year ended 31 December 2024, we would reference our
approach to our business plan, social and corporate responsibility
and the supporting control environment which deliver good
outcomes for the company and wider stakeholders. In achieving
this, the following areas are highlighted:
The Company maintains good lines of communication with the
workforce and relevant government bodies, and there have been
no material disruptions in the year.
In making their decisions the Board carefully assessed the future
long-term aim of growing the Company. It has made its decisions
balanced against the need to maintain safe working practices for
its employees, achieving the increase in production capacity at
a reasonable cost of capital, being aware of the environmental
consideration and to obtain a good return to shareholders.
The Board has maintained regular contact with the its principal
customer and suppliers, as well as cooperating with the national
and regional authorities to ensure all regulatory and legal
requirements were met. Regular contact has also been maintained
with bankers and suppliers on a personal level and with its rener.
Shareholders have been communicated to, through the online
messaging services and the website where presentations and
Company broadcasts are available. The Company AGM also
provides a portal where shareholders will be able to physically
attend and ask any questions that they may have.
The Board made the following key decisions in the year;
a) Our Company’s plans were designed to have a long-term
benecial impact on the Company and to contribute to
the success in delivering the business of exploration and
developing and operating a mine to produce gold and other
precious metals as outlined in our strategy and business
model on page 15, and in relation to our longer term plan in the
Chief Executives’ report on page 8. We continue to operate
our business within a structured control environment and
comply with all necessary regulated requirements necessary
to maintain the operating licences. Key decisions in the year
were:
• The management agreed the budgets for 2025, to include
planned increases in production and future funding.
• The contract with the subcontractor responsible for
the extraction of ore and capital development of the
underground mine was reviewed and updated for revised
pricing and quantities during the year.
• The management renegotiated the o take agreement with
its principal customer, detailing the quantity of dore to be
supplied and payment terms for the period to December
2025, and revised costs of rening.
• Discussions were held with principal banker to update
the bank on operations and discuss future funding. After
discussion with the bank a subsidiary was set up to take
advantage of favourable bank loan rates.
• Bond of US$10m was raised on AIX in order to provide
nancing to service the capital investment in the year.
• The Board discussed expansion of the group and possibilities
to widen the investor base of the Company.
• A budget was agreed to enhance the marketing of the group
and look at instructing consultants and PR advisors in this
regard.
b) Our employees are fundamental to the delivery of our
business. AltynGold wants to build teams that are loyal and
committed to the long term success of the Company and
create a pleasant work environment where all employees can
thrive. We have put steps in place for workforce engagement,
training and development, employee networks, and regular
communication updates with senior management. During
the year the company has worked closely with its employees
and local authorities at both head oce and the mine site to
ensure that the sta were able to engage in the Company’s
activities in safe working environment.
During the year the Company recognised its wider
responsibilities to the wider community and assisted the
development of the local community infrastructure, as well as
supporting government led initiatives for the wider benet of
residents of Kazakhstan.
c) At AltynGold we think about the implications of our decisions
on everyone in our Group, our industry and our community,
because we are committed to building a sustainable business
with a legacy we can all be proud of. Our success depends
on our relationships with employees, a network of experts,
customers and suppliers beyond our business.
The majority of the workforce live and work in Sekisovska
village located next to the mine. The Company is aware of the
need to foster good relationships with the local community
and try to engage with them, keeping them informed of the
business activities.
All of our activities are informed by appropriate engagement
with stakeholders to gain an understanding of our operating
environment and the market in which we operate. At present
the Company has a single customer for its gold output as
regulated by the Kazakh authorities and it complies with all
requirements for timings and deliveries as appropriate. We
value our suppliers and maintain regular communication with
them. The Board has regular meetings with key equipment
suppliers, principal consumable suppliers and its sub-
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
24 | AltynGold plc Annual Report 2024
contractors to agree contract terms and to discuss any
issues that may have arisen. It has also established a good line
of communication with its principal nance providers at the
bank and AIX, to ensure that operations run smoothly and they
are kept abreast of Company developments.
d) Our plans take into account the impact of the company’s
operations on the community, the environment and wider
societal responsibilities, some of which are mandated
by government legislation but others are taken up by the
Company voluntarily. The Company was able to grow
employee numbers, aiding and supporting the local
community in which the mine is the key employer.
Further details on this and the Company’s impact on
the environment are as detailed in the Corporate Social
Responsibility report on page 25. AltynGold aims to ensure
that it plays a responsible part in society as a whole. We
also evolve and adapt as regulation changes and public
interest in emerging issues grow. The plans the Company
has developed helps it to stay focussed and make an impact
and, it is keenly aware of the mines environmental impact and
the dangers of not staying focused. It ensures the Company
is pragmatic and consistent, and using local resources and
people as necessary. There are regular checks made on the
environmental parameters by independent third parties
and government departments. No issues were highlighted
in the year. See further details in the Corporate Social
Responsibility Report on page 27.
e) The Board of Directors’ intention is to behave responsibly and
ensure that the business operates in a responsible manner
within the high standards of business conduct and good
governance. Our Company ensures that we meet standards
expected by our Regulators in order to ensure that our license
to operate is maintained. The Company has regular contact
with the environmental authorities to ensure the Company
complies in all aspects with the government standards
required for the operation of the mine in Kazakhstan.
There is a policy in place for whistle blowing and this ensures
that employees feel empowered to raise concerns in
condence and without fear of unfair treatment. Employees
can report anonymously any areas that are of concern to the
compliance ocer in charge of monitoring fraud, money
laundering and bribery.
The Audit Committee as a whole ensures that the processes
in place are adequate.
f) We aim to act fairly between members and act for all
shareholders. The Company does have a controlling
shareholder. However, their conduct is controlled by a
relationship agreement which aims to ensure that they act in
a fair, transparent and responsible manner. All shareholders
are welcome at the Annual General Meeting to express their
views. The Company website has a facility to obtain regular
feedback from all shareholders.
DIRECTORS’ SECTION
172 STATEMENT continued
AltynGold plc Annual Report 2024 | 25
CORPORATE SOCIAL
RESPONSIBILITY
Human resources
The workforce at the Sekisovskoye mine site averaged 443 in the
year (2023: 384), while the administration sta was similar to the
prior year at 87 (2023: 93). The total number of employees at the
year end was 530 (2023: 477).
The Company remains committed to the local village, employing
55% of the population of the Glubokoy district in East Kazakhstan
region in which the Sekisovskoye and the Teren Sai deposit are
located.
As in the prior years outsourced labour is still being utilised, in
order to develop the mine and for the extraction of ore.
Human rights
Whilst the Company does not have a specic human rights policy,
it does have policies such as Equal Opportunities and an Anti-
bribery policy that adhere to internationally proclaimed human
rights principles.
Employment policies and diversity
The Company has an equality and diversity policy and has
communicated it to its employees in a formal manner after
consultation with the local authorities. It is fully supported by
senior management and employee representatives. The policy
is monitored and reviewed annually to ensure that equality and
diversity is continually promoted in the workplace.
The aim is to ensure that all employees and job applicants
are given equal opportunity and that our organisation is
representative of all sections of society. Each employee will be
respected and valued and able to give their best as a result. This
policy reinforces our commitment to providing equality and
fairness to all in our employment and not provide less favourable
facilities or treatment on the grounds of age, disability, gender,
marriage and civil partnership, pregnancy and maternity, race,
ethnic origin, colour, nationality, national origin, religion or belief,
and sexual orientation.
The Company provides the following to sta:
• A medical station available to all employees.
• Free provision of canteen facilities.
• Bonuses/awards to sta as merited.
The Company is opposed to all forms of unlawful and unfair
discrimination. All employees, no matter whether they are part-
time, full-time, or temporary, will be treated fairly and with respect.
The Company will enforce current work practice and work within
the spirit of the law. When selecting candidates for employment,
promotion, training, or any other benet, it will be on the basis of
their aptitude and ability.
The policy will aim to create an environment in which individual
dierences and the contributions of all team members are
recognised and valued to create a working environment that
promotes dignity and respect for every employee. To not tolerate
any form of intimidation, bullying or harassment, and to discipline
those that breach this policy. To make training, development,
and progression opportunities available to all sta. To promote
equality in the workplace. To encourage anyone who feels they
have been subject to discrimination to raise their concerns so we
can apply corrective measures. To encourage employees to treat
everyone with dignity and respect. The Company reviews on a
regular basis the employment practices and procedures so that
fairness is maintained at all times.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Employee involvement
Members of the management team regularly visit the site at
Sekisovskoye and discuss matters of current interest and concern
with members of sta.
Gender
diversity Male Female Total
2024 413 117 530
2023 370 106 476
The table above shows the sta employment by gender. The
Company places a great deal of emphasis on gender equality and
diversity. At present there are 38 women in senior management
positions (2023: 43), male senior managers in 2024 were 49
(2023:43, including Directors).
Company environmental checks
Each of the Company’s facilities as is required by the government
authorities was environmentally monitored on a quarterly basis by
accredited outsourced companies. This included the following
checks which were all within environmental standards set:
• Checks were made on the water at surface and sub-surface
levels to ensure that it was within safe limits, within both the
production site and the tailings dump site - no incidences
were noted during the year and as at the date of this report.
• Checks were regularly made on the air quality at the
production site, to include testing of the air extraction
systems at the crushing and grinding plant, laboratory and
transfer conveyors. Appropriate repairs were carried out
during the year if there was any deviation from the accepted
norms - no incidences noted.
• Soil samples were analysed at the tailings dumps to ensure
that there was no adverse eects on the environment - no
incidences noted.
Of primary importance to the Company is to ensure that the
tailings dam and water discharges are within environmentally safe
limits. The facility has a system in place that provides treatment
and discharge of mine water into the surface reservoir - quarterly
testing is done to ensure all required standards are met. This is
reported to the authorities on a quarterly basis, again there were
no incidences to report.
The Company has systems to control the processing of waste in a
controlled and environmentally compliant manner. All household
waste produced is disposed of to specialised landll sites. Tyres
are temporarily stored prior to removal to a specialised site.
Hazardous waste such as Mercury is carefully sent for recycling as
are plastic waste from plastic packaging and other plastic waste
from pipes cuttings and geomembrane to reduce the amount
being sent to the landll sites. Metal scraps and exhausted oils are
recycled as far as possible on the production site.
The Company has complied with its environmental management
obligations in all respects.
Health and safety
AltynGold is pleased to report that during 2024 there were no
accidents at the Sekisovskoye mine. The Company maintains
its rst aid rooms to the highest standards and ensures that
rescue contracts are in place for employees in the event of an
emergency.
CORPORATE SOCIAL
RESPONSIBILITY continued
26 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 27
Our community
The support of the local community is key to the success of the
Company, and the various initiatives and projects have been
undertaken to ensure that the success of the mine is of benet
to all parties. This is regarded as an ongoing commitment by
the Company to the local community and has been formalised
in a memorandum of co-operation by the Company with the
authorities of the rural district. The company regularly contributes
to local projects and participates in local events. Some of the
activities that the Company participated in the year are as noted
below:
• The Sekisovskoya region in winter has very large snow drifts,
the Company regularly clears the road and access paths at
Sekisovska village.
• Assisting in the regeneration of the local area and
redevelopment of green spaces.
• Assisting in anti- ood measures and clean-up operations.
• During the year the Company provided nancial support for
the charity fund, ‘foundation for sustainable development,
health of the nation’, for the purchase of sports equipment for
local children.
• Assisting and providing food for the elderly and pensioners in
the local community.
Climate change and our approach to the
environment
The Company’s policies outline our commitment to environmental
responsibility. Safeguarding the environment and training our
employees to minimise the environmental impact of our activities
are important aspects of our business. We remain committed to
achieving the highest environmental standards.
The Company has reviewed its obligations under the guidelines
and framework as noted within the Task Force on Climate-
related Financial Disclosures (TCFD), and its obligations under
the Companies Act to comply with climate change disclosures
of actions it is taking in relation to the impacts of climate change,
(CFD). The TCFD framework has been devised to allow companies
to disclose the potential and actual impacts on the business of
climate-related risks, see report on page 14.
As part of the review the Company has assessed the impact of the
new environmental code in Kazakhstan that may have an impact on
the operations, nances and reporting required by the Company.
The environmental and ecology department in the Company
reported that no signicant issues were noted in relation to the
reports sent on a regular basis to the relevant authorities on air,
water and soil contamination levels.
The main points are listed below|:
Environmental violations are to be assessed over the much longer
period of 30 years.
Each Company is to be designated to a category based on
the potential impact on the environment. Baurgold has been
designated to the rst category, and Altyn MM to the second.
There are more stringent controls on the rst category.
• The enterprises in category one are obliged to accept the
best available technologies on a list that is approved by
the government authorities, and failure to do so will result in
penalties.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
28 | AltynGold plc Annual Report 2024
• The government has introduced a scaled increase in the
charges for environmental pollution, from 2025 they will
double, doubling again from the level in 2025 in 2028 and
again in 2031 from the level in 2028.
• It is recommended that large polluters in category one
(producing Co2 in excess of 500tons) implement automated
monitoring systems, Baurgold currently emits approximately
50tons of Co2.
• Fines and penalties have been increased as well as the use of
only licensed waste carriers.
From a review conducted by the Board the Company has
complied with the requirements of the environmental law as
outlined above. The Board remains committed to reduce its
carbon footprint and will keep this constantly under review. During
the year Baurgold was given a top award by the environmental
authorities in a regional competition for its contribution to
environmental matters.
During the year the following additional environmental measures
were implemented:
• During the summer season measures were taken to reduce
the level of dust and emissions at the process site by the
use of water irrigation and landscaping, it is estimated this
reduced emissions by 0.17t.
• The Company is on a rolling program to replace existing
lighting with lower energy using LED ttings.
• There is more ecient and regular cleaning of the sludge
tanks being undertaken that is reducing the concentration
of solids such as nitrates, sulphates and chlorides being
released into the environment.
• In the mine workings during the year an annual service check
has been introduced to ensure that the dust extraction and
pollution is reduced.
Greenhouse gas reporting
The calculations are prepared by using the parameters as set
and approved by the Minister of Environmental Protection in
Kazakhstan, which has strict guidelines and statutory requirements
in relation to the measurement of emissions. The emissions as
recorded below relate entirely to the Company’s activities in
Kazakhstan. The head oce function in the UK has a very small
carbon foot print. Data in relation to diesel, coal and electricity
is gathered by the environmental department and passed to
the accounting department to check, and prepare the relevant
calculations. In relation to scope 3 emissions as noted below there
is a certain amount of estimation involved but in the case of the
Company it is not material.
Greenhouse gas emissions (GHG), are classied as either direct
or indirect and which are divided further into Scope 1, Scope 2
and Scope 3 emissions. Direct GHG emissions are emissions from
sources that are owned or controlled by the Company. Indirect
GHG emissions are emissions that are a consequence of the
activities of the Company but that occur at sources owned or
controlled by other entities.
Scope 1 emissions
Direct emissions controlled by the Company arising from plant.
Scope 2 emissions
Indirect emissions attributable to the Company due to its
consumption of purchased electricity.
Scope 3 emissions
Other indirect emissions associated with activities that support or
supply towards the Company’s operations.
The Company has reviewed the data and information in relation to
the capture of information for the Scope 3 emissions disclosures
and calculations and based on the assessment are not satised
with the level of estimation and completeness of the data. On
this basis the information has not been included in the current
annual report, and in this regard the Company is therefore not fully
compliant with the CFD and TCFD requirements. The Company
will develop procedures in order to report on this data in the next
annual report.
The Company’s emissions by scope
Scope Source
Tonnes
CO2
2024
Tonnes
CO2
2023
Scope 1 Plant 6,229 4,023
Scope 2 Electricity 1,635 1,669
Total 7,864 5,692
Intensity 1
Tonnes
per CO2
Per US$ of
revenue 0.000082 0..000088
Intensity 2
Tonnes
per CO2
Per oz
of gold
produced 0.212 0.172
The energy consumption used to calculate emissions was
105,133kwh (2023: 75,223kwh)
CORPORATE SOCIAL
RESPONSIBILITY continued
AltynGold plc Annual Report 2024 | 29
MINERAL RESOURCES
STATEMENT
Geological Setting
The sites are located in a complex geological setting that has been
subject to much alteration and metamorphism. The projects are
exploiting gold that is hosted in a number of pipe-like breccia
bodies that have intruded into the Rudny Altai poly-metallic belt,
which is part of the larger Central Asian Orogenic Belt.
Ten breccias have been mapped in and around the Sekisovskoye
Mine. Of these, seven breccias fall within the Sekisovskoye Mine
licence boundary. Mineralisation is hosted in the breccia bodies
and includes free gold and gold sulphides. Gold is embedded
in the cement of the explosive hydrothermal breccias and is
smeared across the lithology. The breccias are cut by barren
igneous dykes that are typically planar and dip steeply to the
northeast.
The TerenSai Project is made up of 15 targets based on historical
exploration. Of these 15 targets, Altyn has identied 3 areas for
exploration that they see as signicant within Area No.2, plots 2,
4 and 5, consisting of various identied targets. Altyn is currently
focussed on exploration and development of one of these 15
targets, namely plot No.2 which consists of four breccia bodies.
Exploration
Sekisovskoye
Recent exploration refers to all exploration carried out since the
project was acquired by AltynGold (then known as Hambledon).
The Sekisovskoye Mine has undergone numerous exploration
programmes including geophysics, trenching and diamond
drilling. Recent exploration has consisted of several drilling
campaigns and a total of 1,490 drillholes have been completed.
These drillholes include both surface and underground drilling
but exclude all drilling prior to acquisition of the Sekisovskoye
Mine by Hambledon. Of these drillholes, a total of 982 holes have
Overview
Ernst and Young Advisory Services (Pty) Ltd (“EY”) were
commissioned by the directors of AltynGold Plc (“Altyn”)
in 2019 to prepare an Independent Competent Persons’
Reports (“CPR”) on the Sekisovskoye Gold Mine (“the
Sekisovskoye Mine”) and TerenSai gold project (“the TerenSai
Project”).
Both the Sekisovskoye Mine which is an operating mine
targeting gold and silver, and TerenSai which is an exploration
licence area are located in eastern Kazakhstan, adjacent to
the Sekisovka village.
EY has compiled the reports in accordance with the
Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves, 2012 edition (“the
JORC Code”). In the case of the Sekisovskoye mine it is an
update of the CPR completed in 2014, entitled “Independent
Competent Persons’ Report on the Sekisovskoye Gold
Project prepared for Goldbridges Global Resources Plc,
(subsequently renamed AltynGold Plc)” as at 31 May 2014 by
Venmyn Deloitte (Pty) Ltd (“Venmyn Deloitte”) referred to as
“the 2014 CPR”. In the case of TerenSai this will be a maiden
Mineral Resource and Ore Reserve estimate for the Project
based on exploration completed by AltynGold since granting
of the subsoil use contract in 2016.
The report describes reviews and documents the technical
and economic parameters of the Sekisovskoye mine and
TerenSai Project, in order to identify all factors of a technical
and economic nature that would inuence the future viability
of the project.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
30 | AltynGold plc Annual Report 2024
been drilled between 2011 and 2019 and these form the basis of
the orebody modelling and underground resource estimation
used in the CPR. Exploration and orebody modelling has focussed
increasingly on delineation of the orebody at depth and on inll
drilling to improve geological condence in the underground
Mineral Resources since closure of the open pit. More recent
exploration campaigns have consisted of almost exclusively
underground drilling.
TerenSai
Recent exploration refers to all exploration carried out since the
project was acquired by Altyn in 2016. Recent exploration carried
out by AltynGold includes pitting, trenching and diamond drilling.
Exploration has focussed on the two breccias within Area No.2 and
includes a total of 41 drill holes completed by AltynGold. A further
12 historical drill holes are included in the geological database.
These historical holes were drilled in 1993. The 53 drill holes drilled
in Area No.2 form the basis of the geological modelling and
resource estimation used in this CPR. Drilling has been completed
to a depth of approximately 465m below surface.
In relation to the more recent exploration activities since 2019
these are detailed in the Chief Executives report on page 5. The
Company remains focused on Area No. 2
Mineral Resource Estimates
Mineral Resource classication is based on the level of
geoscientic condence and primarily, drilling density. Due to the
nature of the deposit, which is generally narrow and extending in
a pipe-like deposit at depth, drilling and the resultant number of
samples is denser near the surface and becomes less dense with
depth.
Sekisovskoye
Measured and Indicated Resources are estimated from the
current working depth of -185masl to a depth of -400masl.
Inferred Mineral Resources have been estimated from -400masl
to -800masl. An Exploration Result has been estimated from
-800masl to -1,500masl.
TerenSai
Measured Resources from surface (approximately +490masl) to
a depth of +260masl and Indicated Resources from +260masl
to a depth of +25masl. No Inferred Mineral Resources have
been estimated. An Exploration Result has been estimated from
+25masl to -375masl. The open pit to underground boundary is at
+350masl.
Sekisovskoye
31 May 2019
Level Tonnage
Cut-o
Grade
Average
gold grade
Contained
Gold
Average
Silver Grade
Contained
Silver
Resource Classication Masl (Mt) (g/t) (g/t) (Moz) (g/t) (Moz)
Measured +250 to -400 29.03 1.50 3.76 3.51 6.2 5.79
Indicated +250 to -400 3.48 1.50 3.03 0.34 5.08 0.56
Sub-total 32.51 1.50 3.68 3.85 6.08 6.35
Inferred -400 to -800 37.15 1.50 2.37 2.83 3.99 4.77
Total mineral resources 69.66 1.50 2.98 6.68 4.97 11.12
Since 1 June 2019 to 31 December 2024 the Company has extracted 3.20mt of ore, at an average gold grade of 1.97g/t (201,863oz of
contained gold) and an average silver grade of 2.0g/t (186,547oz of contained silver).
TerenSai
31 May 2019
Level Tonnage
Cut-o
Grade
Average
gold grade
Contained
Gold
Average
Silver Grade
Contained
Silver
Resource Classication Masl (Mt) (g/t) (g/t) (Moz) (g/t) (Moz)
Measured - open pit +490 to +350 5.99 0.50 1.89 0.36 3.25 0.63
Measured - Underground +350 to +25 3.80 1.50 3.75 0.46 6.13 0.75
Sub-total 9.79 2.61 0.82 4.37 1.38
Indicated - underground +350 to +25 6.06 1.50 3.38 0.66 5.52 1.07
Total mineral Resources 15.85 2.91 1.48 4.81 2.45
The TerenSai CPR has measured Resources from surface (approximately +490masl) to a depth of +260masl and Indicated Resources
from +260masl to a depth of +25masl. No Inferred Mineral Resources have been estimated. An Exploration Result has been estimated
from +25masl to -375masl. The open pit to underground boundary is at +350masl.
MINERAL RESOURCES
STATEMENT continued
AltynGold plc Annual Report 2024 | 31
Exploration Target Estimate
Sekisovskoye
31 May 2019
Level Tonnage
Cut-o
Grade
Average
gold grade
Contained
Gold
Average
Silver Grade
Contained
Silver
Resource Classication Masl (Mt) (g/t) (g/t) (Moz) (g/t) (Moz)
Exploration -800 to -1,500 22.79 1.5 2.37 1.74 no estimate no estimate
TerenSai
31 May 2019
Level Tonnage
Cut-o
Grade
Average
gold grade
Contained
Gold
Average
Silver Grade
Contained
Silver
Resource Classication Masl (Mt) (g/t) (g/t) (Moz) (g/t) (Moz)
Exploration +25 to -375 9.28 1.50 3.46 1.03 no estimate no estimate
Ore Reserve Estimate
Sekisovskoye
The Ore Reserves have been estimated from surface (approximately +430masl) to a depth of -400masl. All the Mineral Resource blocks
that are above the Mineral Resource cut-o grade were included in the Ore Reserve, as no selective mining has been assumed for the Ore
Reserve estimation. The Ore Reserve calculation includes a 5% dilution factor, 2% mining loss and 100% extraction factor. Based on the
estimated Ore Reserves.
Sekisovskoye
31 May 2019
Tonnage
Average
gold grade
Contained
Gold
Average Silver
Grade
Contained
Silver
Resource
Classication (Mt) (g/t) (g/t) (Moz) (g/t)
Proved 29.87 3.61 3.47 5.88 5.65
Probable 3.58 2.91 0.33 4.81 0.55
Total 33.45 3.53 3.80 5.77 6.20
TerenSai
31 May 2019
Tonnage
Average
gold grade
Contained
Gold
Average Silver
Grade
Contained
Silver
Resource
Classication (Mt) (g/t) (g/t) (Moz) (g/t)
Proved - open pit 6.29 1.71 0.35 2.94 0.59
Proved -
underground 3.91 3.60 0.45 5.87 0.74
Sub-total 10.20 2.43 0.80 4.06 1.33
Probable 6.23 3.25 0.65 5.33 1.07
Total 16.43 2.74 1.45 4.54 2.40
For TerenSai the ore reserve calculation includes a dilution factor, mining loss and extraction factor. The average estimated losses and
dilution are mining losses of 5% for the open pit and 2% for the underground and mining dilution of 10% for the open pit and 5% for the
underground. An average mining extraction factor of 90% has been utilised for the Ore Reserve estimation.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
32 | AltynGold plc Annual Report 2024
Mineral asset valuation
The assumption of no selective mining was informed by both
the mining method and by guidance included in the Kazakhstan
mining legislation, which does not allow for the selective mining
of blocks above the cut-o grade approved by the Committee
of Geology of Kazakhstan. Therefore, no pay limit was used for
mining selectivity and the denition of Ore Reserves.
The key modifying factors used are as follows:
• long term prices for gold and silver of USD1,280/oz and
USD17/oz, respectively; the current prices are above
US$3,000/oz;
• a processing recovery of 83% for gold and 73% for silver,
which is in line with the current production.
• an average underground mining cost of USD425/oz, which
is based on a longer term projection based on an increased
level of ore mined. The current cash cost is in the range of
US$750/oz.
EY estimated the preferred value of Sekisovskoye Mine as the
average value between the Income-based approach and the
Market-based approach. Therefore, the preferred value for
Sekisovskoye Mine is estimated between US$383m to US$415m
and that of Teren Sai as estimated as between US$92m and
US$104m.
Summary
JORC gold mineral resources total 6.68Moz. In addition, a
further 1.74Moz have been identied as an Exploration Result
below the - 800masl. While these will require further exploration
drilling to be potentially upgraded to Mineral Resources, this
result does highlight the potential for a larger Mineral Resource
than is currently estimated. Assuming that this potential were to
be realised, the current projects as developed would contain
approximately 8.42Moz of gold.
In addition the JORC gold resources at TerenSai total 1.48Moz with
a further 1.03Moz as an exploration target.
Strategic report approved by the Board on 24 April 2024 and
signed on its behalf by:
Mr Aidar Assaubayev (Chief Executive Ocer)
Director
MINERAL RESOURCES
STATEMENT continued
AltynGold plc Annual Report 2024 | 33AltynGold plc Annual Report 2024 | 33
GOVERNANCE
Corporate Governance Statement 34
Board of Directors 37
Directors Report 39
Statement of Directors’ Responsibilities 42
Audit committee report
43
Remuneration Committee - Statement 44
Annual remuneration report 45
Remuneration policy report 50
Independent Auditors’ Report 51
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTSSTRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
34 | AltynGold plc Annual Report 2024
Our Corporate Governance Statement, explains how AltynGold’s governance framework supports the principles of integrity, strong
ethical values and professionalism integral to our business. The Board recognises that we are accountable to shareholders for good
corporate governance, and this report, together with the Reports of the Audit and Remuneration Committees, seeks to demonstrate our
commitment to high standards of governance that are recognised and understood by all.
The Company is keenly aware of its obligations under the London Stock Exchange disclosure and transparency rules and is continually
reviewing its corporate structure. Given the size of the Company it has not adopted the 2018 UK Corporate Governance Code, however
the Company believes that the policies in place ensures that there are high standards of accountability and corporate governance. The
code is currently being updated to the 2023 code which applies to nancial years starting after April 2024, and the Board is currently
assessing its impact.
Full details in relation to the composition of the Board are given on pages 37-38. There in total four Non-Executive Directors on the
Board, and two Executive Directors together with a Chairperson. The Board considers all Non-Executive Directors to be independent of
management and exercise independent judgment. In the case of Ashar Qureshi his shareholding is regarded as immaterial, in performing
his role as an independent Non-Executive Director.
The Company will continue to keep under review the composition of the Board and its committees to ensure that we have the right
balance of skills, independence, experience and diversity. The Company is aware of the growing importance on climate change and
has a Board committee to monitor the Company’s impact on the environment. The environmental social and governance committee
is composed of Vladimir Shkolnik, a non-executive director on AltynGold’s Board of Directors since 2017 and by Maryam Buribayeva.
They play an important role in assessing and reducing the Company’s impact on the environment and reviewing the compliance with the
relevant local laws.
In the opinion of the Directors these Annual Financial Statements present a fair, balanced and understandable assessment of the Group’s
position and prospects and provide the information necessary for shareholders to assess the Group’s position and performance,
business model and strategy. This is presented in more detail in the CEO review and review of nancial performance on pages 7-12. The
respective responsibilities of the Directors and the Auditor in connection with the Financial Statements are explained in the Statement of
Directors’ Responsibilities and the Auditor’s Report.
The Board delegates specic responsibilities to the Audit and Remuneration Committees, full details of their responsibilities are detailed
below. The Company currently does not have a Nomination Committee, and given its stage of development does not believe it is
appropriate. Full details of the responsibilities of the committees are detailed below.
Day-to-day management and the implementation of strategies agreed by the Board are delegated to the Executive Directors. The
Group’s reporting structure below Board level is designed so that decisions are made by the most appropriate people in a timely
manner. Management teams report to members of the Executive Committee. The Executive Directors and other managers give regular
briengs to the Board in relation to business issues and developments. Clear and measurable KPIs are in place to enable the Board to
monitor progress. These policies and procedures enable the Board to make informed decisions on key issues including strategy and risk
management.
The Chair leads the Board and is responsible for its overall eectiveness, ensuring adequate time is available for discussion of all agenda
items, in particular strategic issues, promoting openness and debate, ensuring all Directors, particularly the Non-Executive Directors,
are able to contribute, and facilitating a constructive relationship between the Executive and Non-Executive Directors. The current Chair
is not independent as he together with the two Executive Directors are the controlling shareholders of the Company. Their conduct is
controlled by a relationship agreement that will ensure that they act in a way for the benet of shareholders as a whole. The Non-Executive
Directors will also ensure that the principles of the agreement are adhered to.
The Chief Executive Ocer has responsibility for all operational matters which include the implementation of strategy and policies
approved by the Board. The senior Independent Non-Executive Directors provides a sounding board for the Chair and also acts as an
intermediary for other Directors and shareholders.
In terms of culture and engagement the Executive Directors liaise on a regular basis with the workforce and key suppliers and customer
and reports back to the Board. The human resources department has a framework to improve the way in which employee views are
communicated to the Board, how employees engage with values and culture, and how we align strategy with our workforce development
and reward policies. Details in relation to the Company’s corporate social responsibility are given on page 25, and engagement with other
stakeholders in the Directors S172 Statement on page 23.
The Board has adopted procedures for the identication, authorisation (where appropriate) and monitoring of situations which may give
rise to a conict of interest. There is a relationship agreement with the major shareholder which denes their responsibility if a situation
arises. The Board has reviewed the procedures and is satised that they are operating eectively.
The Company’s Articles of Association contain powers of removal, appointment, election and re-election of Directors and provide that at
least one-third of the Board must retire at each Annual General Meeting and each Director must retire by rotation every 3 years.
There is no formal induction programme for new Directors, however they are given a full brieng and familiarised with all aspects of the
Company’s operations. The Company maintains directors’ and ocers’ liability insurance to cover legal proceedings against Directors
and Ocers acting in that capacity.
CORPORATE GOVERNANCE
STATEMENT
AltynGold plc Annual Report 2024 | 35
Remuneration Committee
The Remuneration Committee currently comprises of two Directors - Ashar Qureshi and Vladimir Shkolnik, which meets as required. It is
responsible for determining the contract terms, remuneration and other benets of the Executive Directors. The remuneration of the
Non- Executive Directors is determined by the Board within the limits set out in the articles of association. None of the Committee
members has any personal nancial interest in the matters to be decided (other than as shareholders), potential conicts of interest
arising from cross-Directorships, or any day-to-day involvement in running the business. The Committee has access to professional
advice from inside and outside the Company at the Company’s expense.
Company Secretary
The Company Secretary is responsible for the scheduling and administration of Company meetings, updating of the statutory
information, ling requirements at Companies House, and liaising with the relevant authorities at the FCA and London stock exchange as
directed by the Board.
Board and Board committee meetings
The number of meetings during 2024 and attendance at regular Board meetings and Board committees was as follows:
Meeting Number held Number attended
Kanat Assaubayev Board 6 6
Aidar Assaubayev Board 6 6
Sanzhar Assaubayev Board 6 6
Ashar Qureshi Board 6 6
Audit Committee 2 1
Vladimir Shkolnik Board 6 6
Audit Committee 2 2
Maryam Buribayeva Board 6 6
Audit Committee 2 2
Andrew Terry Board 6 6
Audit Committee
The Audit Committee is comprised of, Ashar Qureshi, Vladimir Shkolnik and Maryam Buribayeva. The Board reviews the composition of the
Audit Committee on a regular basis, and will make changes as appropriate. A resolution for the reappointment of PKF Littlejohn LLP has
been proposed at the Annual General Meeting.
The Audit Committee’s prime tasks is to review the scope of the external audit, to receive regular reports from the Company’s auditor and
to review the half-yearly and annual accounts before they are presented to the Board, focusing in particular on accounting policies and
areas of management judgement and estimation. The Committee is responsible for monitoring the controls which are in force to ensure
the integrity of the information reported to the shareholders. The Committee acts as a forum for discussion of internal control issues and
contributes to the Board’s review of the eectiveness of the Company’s internal control and risk management systems and processes.
The Audit Committee also undertakes a formal assessment of the auditor’s independence each year which includes:
• a review of non-audit services provided to the Company and related fees;
• discussion with the auditors of a written report detailing all relationships with the Company and any other parties that could aect
independence or the perception of independence;
• a review of the auditors’ own procedures for ensuring the independence of the audit rm and partners and sta involved in the audit,
including the regular rotation of the audit partner; and
• obtaining written conrmation from the auditors that, in their professional judgement, they are independent.
An analysis of the fees payable to the external audit rm in respect of both audit and non-audit services during the year is set out in Note 10
on page 73 of the nancial statements.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
36 | AltynGold plc Annual Report 2024
CORPORATE GOVERNANCE
STATEMENT continued
Board structure
The Board is comprised of the Executive Chairman, the CEO an Executive Director and four Non-Executive Directors, one of which is not
independent as he holds shares in the Company. Their details appear on pages 37-38, which lists their experience and expertise. Although
none of the Directors other than the currently employed Director Maryam Buribayeva have had any formal training in nance they have all
had a great deal of experience operating at the top level of management in a number of companies dealing with all aspects of operating a
business and will call in experts as and when required.
The Board is responsible to shareholders for the proper management of the Company. The statement of Directors’ responsibilities in
respect of the accounts is set out on page 42.
The Non-Executive Directors have a particular responsibility to ensure that the strategies proposed by the Executive Directors are fully
considered. To enable the Board to discharge its duties, all Directors have full and timely access to all relevant information and there is
a procedure for all Directors, in furtherance of their duties, to take independent professional advice, if necessary, at the expense of the
Company. The Board has a formal schedule of matters reserved to it, and meets on a regular basis.
The Board is responsible for overall Group strategy, approval of major capital expenditure projects and consideration of signicant
nancing matters.
The Group has a comprehensive nancial review process, including detailed annual budgets, business plans and regular forecasting.
There are a range of performance indicators which are tracked by management on a daily, weekly and monthly basis, and addressed
through a programme of operational meetings and action plans. All Directors receive regular and timely information to enable them to
perform their duties, including information on the Group’s operational and nancial performance, customer service, health and safety
performance and forward trends. At each regular Board meeting the nancial results are reviewed, taking account of performance
indicators and the detailed annual business plan and budget. The Board also considers forward trends and performance against other
key indicators, including areas where performance departs from forecasts, and contingency plans. The Board reviews medium and
long-term strategy on a regular basis. In this way, the Board assesses the prospects of the Group using all the information at its disposal,
and considering historical performance, forecast performance for the current year and longer-term forecasts over the 3-year business
planning cycle as appropriate. Details of the Company’s strategy and business model are given on page 15 of the Annual Report.
The Board has responsibility for determining the nature and extent of the principal risks the Company is willing to take to achieve its
strategic objectives, and for the Group’s internal control framework. The Board has a well-established procedure to identify, monitor
and manage risk, and has carried out reviews of the Group’s risk management and internal control systems and the eectiveness of all
material controls, including nancial, operational and compliance controls. The principal risks facing the Group are detailed on pages 16
to 17.
The Board places great emphasis on communication and engagement with the Company’s shareholders. It is an area of focus that the
Board wishes to strengthen in the future. The principal forum at present to engage with the shareholders given the stage of development
of the Company is at the Annual General Meeting details of which are on page 39.
In relation to engaging with our stakeholders the Board recognises the importance of our wider stakeholders in delivering our strategy
and business sustainability and are conscientious on the responsibilities and duties to the stakeholders under section 172 of the
Companies Act 2006.
We believe that eective corporate governance is critical to delivering our strategy and creating long-term value for our shareholders.
Kanat Assaubayev
Chairman
24 April 2025
AltynGold plc Annual Report 2024 | 37
BOARD OF DIRECTORS
Kanat Assaubayev
Non-Independent Chairman
Appointment
Kanat Assaubayev was appointed to the
Board as Chairman on 23 October 2013.
Experience
Kanat Assaubayev is one of Kazakhstan’s
leading entrepreneurs in the natural
resources sector. Mr Assaubayev was the
rst Kazakh to get 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-Independent Executive
Director
Appointment
Aidar Assaubayev was appointed to the
Board as Chief Executive Ocer on 25
February 2013.
Experience
Aidar Assaubayev 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. Mr. Assaubayev
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.
Sanzhar Assaubayev
Non-Independent Executive
Director
Appointment
Sanzhar Assaubayev was appointed to the
Board as Executive Director on 29 February
2016.
Experience
Sanzhar Assaubayev was formerly Director
of International Aairs of JSC MMC
Kazakhaltyn and an Executive Director of
KazakhGold Group Limited, the gold mining
corporation. 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.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
38 | AltynGold plc Annual Report 2024
Vladimir Shkolnik
Independent
Non-Executive Director
Appointment
Vladimir Shkolnik was appointed
to the Board as Non-Executive
Director on 21 November 2017.
Experience
Vladimir Shkolnik has held a
number of high prole positions
in the Kazakhstan government,
and is currently advising the
Kazakhstan government on
industrial and energy matters.
His previous positions included
the oce of Minister of Energy,
Minister of Trade and Industry,
and also Deputy Head of
Presidential administration,
reporting directly to the
President. He is an academic
with a doctorate in physics
and has written a number of
papers and books in the eld
of energy, natural resources
and other scientic elds. He
has been inuential in setting
up academic institutions, in the
areas of mineral processing
and also nuclear power in
Kazakhstan, working with a
number of leading Companies
from Japan, France and Russia in
setting up joint enterprises.
Maryam Buribayeva
Independent
Non-Executive Director
Appointment
Maryam Buribayeva was
appointed to the Board as
Non-Executive Director on 24
January 2022.
Experience
Maryam Buribayeva is a nance
professional with extensive
experience and industry
expertise gained while working
for such companies as North
Caspian Operating Company,
KazMunayGaz and Mercury
Properties. A graduate of
KIMEP University in Almaty,
Maryam also holds an MSc in
International Accounting and
Finance from Cass Business
School in London.
BOARD OF DIRECTORS continued
Andrew Terry
Independent
Non-Executive Director
Appointment
Andrew Terry was appointed
to the Board as Non-Executive
Director on 24 January 2022.
Experience
Andrew Terry is an English-
qualied solicitor specialising
in international corporate
and personal taxation issues
with a focus on clients from
Kazakhstan, Russia, Ukraine,
Georgia and Kyrgyzstan. He
has extensive experience
in setting up international
holdings ahead of IPOs, debt
nance transactions, private
equity investments and trade
sales. Andrew Terry currently
practices as a tax partner at
Keystone Law in London and is
a member of the advisory board
at Amber Lion Partners in Zurich.
Ashar Qureshi
Non-Independent
Non-Executive Director
Appointment
Ashar Qureshi was appointed
to the Board as Non-Executive
Director on 7 December 2012.
Experience
Ashar Qureshi is a London
based US-qualied lawyer.
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 rm Cleary
Gottlieb Steen & Hamilton LLP.
He is currently a partner at Fried,
Frank, Harris. Shriver & Jacobson
LLP. Mr. Qureshi holds a Juris
Doctorate and is a graduate
of Harvard Law School and
Harvard College.
AltynGold plc Annual Report 2024 | 39
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
The directors present their report and the consolidated nancial statements for the year ended 31 December 2024.
Principal activity and business review
The principal activity of the Company is that of a holding company and a provider of support and management services to its operating
subsidiaries, as well exploring further investment opportunities. The Company’s subsidiaries are involved in the exploration and
production of gold and other precious metals from its mine sites in Kazakhstan.
A review of the activities of the business throughout the year and up to April 2025 is set out in the Strategic report on pages 2 to 32 which
includes information on the Company’s risks, uncertainties and performance indicators. The Company accounts are prepared on a going
concern basis.
Results and dividends
The Group’s prot for the year after taxation amounts to US$26.4m (2023: US$11.3m). The results of the year are set out on page 58 in the
consolidated income statement.
The Directors do not recommend the payment of a dividend for the year (2023: nil).
Financial instruments
The total Group borrowings as at 31 December 2024, including accrued interest is US$60.1m (2023:US58.4m). Details in relation to the
borrowings are as disclosed in note 22.
The principal loans held by the Group are the borrowings from JSC Bank Center Credit, the total borrowings at 31 December 2024 were
US$50.2m (2023: US$48.9m), at rates ranging between 6%-7%, and further details are given in note 27.
As at the date if this report the Company has two US$10m bonds. In July 2024 the Company issued a bond on the Astana Stock Exchange
in Kazakhstan of US$10m repayable in 3 years (US$9.5m after fees) at a coupon rate of 11.25%. In addition as disclosed in note 27 the
Company issued a further Bond of US$10m gross in April 2025 at a coupon rate of 9.75%, maturing in 2028. The Bond that was raised in
2023 with a two year maturity was repaid in March 2025.
The main risks arising from the nancial instruments are liquidity risk, credit risk, foreign exchange risk and interest rate risk. Further details
are provided in note 25 on pages 85 to 90 of the nancial statements.
Share capital details of the Company’s issued share capital, are set out in note 24 on page 85. The Company has one class of ordinary
share and they carry no right to xed income. Each ordinary share carries the right to one vote at the general meetings of the Company. All
issued ordinary shares are fully paid. There are no specic restrictions on the size of the holding or on the transfer of the ordinary shares,
which are both governed by the general provisions of the articles of association and prevailing legislation. The Directors are not aware of
any agreements between holders of the Company’s ordinary shares that may result in restrictions on the transfer of securities or on voting
rights. Certain Directors have an interest in the ordinary shares in the Company and these are disclosed below.
Qualifying indemnity provision
The Company has entered into an insurance policy to indemnify the Directors of the Company against any liability when acting for the
Company.
Charitable and political donations
During the year the Company made no charitable contributions or political donations.
Annual General Meeting
The Annual General Meeting of the Company will be held at Langham Court Hotel, 31-35 Langham Street, London W1W 6BU, United
Kingdom on Friday 20 June 2025 at 11.00am.
The details of the resolutions are given on pages 91 to 92. 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.
Takeover directive
The Company has one class of share capital, which are ordinary shares. Each ordinary share carries one vote. All the ordinary shares rank
pari passu. There are no securities issued in the Company which carry special rights with regard to control of the Company. The identity
of all substantial direct or indirect holders of securities in the Company and the size and nature of their holdings is shown under the
“Substantial interests” section of this report below.
A relationship agreement (the “Relationship Agreement”) that controls the conduct and voting restrictions was entered into between
the Company and AGold Mining in regard to the arrangements between them whilst AGold Mining is a controlling shareholder of the
Company.
There are no restrictions on voting rights or on the transfer of ordinary shares in the Company. The rules governing the appointment and
replacement of Directors, alteration of the articles of association of the Company and the powers of the Company’s Directors accord
with usual English company law provisions. The Directors are re-elected on a rotational basis each year. The Company is not party to
DIRECTORS REPORT
40 | AltynGold plc Annual Report 2024
DIRECTORS REPORT continued
any signicant agreements that take eect, alter or terminate upon a change of control of the Company following a takeover bid. The
Company is not aware of any agreements between holders of its ordinary shares that may result in restrictions on the transfer of its
ordinary shares or on voting rights.
There are no agreements between the Company and its Directors or employees providing for compensation for loss of oce or
employment that occurs because of a takeover bid.
Directors’ Section 172 statement’
Information on the Directors’ Section 172 statement is given on page 23.
Environmental matters
Information on greenhouse emissions for the Group is shown on page 28. The Company used very little energy during the period in the UK
and oshore thus no SECR (Streamlined Energy and Carbon Reporting) disclosures are included.
During the year the Company re-assessed its obligations under its rehabilitation program to ensure that all costs are being accounted for
to reinstate the environmental for any damage caused by the mine workings. In this regard as required by the governmental authorities in
Kazakhstan a separate restricted fund has been established to meet the Company’s obligations.
Social and community issues
The Corporate Social Responsibility performance of the Company is detailed on pages 25 to 28.
Future developments and post balance sheet events
The Company’s future plans are detailed in the Chief Executive Ocer’s review on page 18.
Details of events after the end of the nancial year are set out in note 27 on page 90 of the nancial statements.
Communication with shareholders
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; the Company’s website www.altyngold.uk is regularly updated and
contains a wide range of information about the Company. Enquiries from individuals on matters relating to their shareholdings and the
business of the Company are dealt with informatively and promptly. The Directors are responsible for ensuring the annual report and the
nancial 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 nancial statements, which may vary from legislation
in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the Directors. The Directors’
responsibility also extends to the ongoing integrity of the nancial statements contained therein.
Internal control
The Directors are responsible for the Group’s system of internal control and review of its eectiveness annually. The Board has designed
the Group’s system of internal control in order to provide the Directors with reasonable assurance that its assets are safeguarded, that
transactions are authorised and properly recorded and that material errors and irregularities are either prevented or would be detected
within a timely period.
The key elements of the control system in operation are:
• The Board meets regularly with a formal schedule of matters reserved to it for decision and has put in place an organisational
structure with clearly dened lines of responsibility and with appropriate delegation of authority;
• There are established procedures for planning, approval and monitoring of capital expenditure and information systems for
monitoring the Group’s nancial performance against approved budgets and forecasts;
• UK Financial reporting is closely monitored by members of the Board to enable them to assess risk and address the adequacy of
measures in place for its monitoring and control. The Kazakh operations are closely supervised by the Board reviewing monthly, half
yearly and annual nancial reports from the Directors and senior ocers in Kazakhstan. This is normally supplemented by regular visits
of the UK based nance ocer to Kazakh operations which include checking the integrity of nancial information supplied to the UK.
The nancial ocer is ultimately responsible for the preparation of the consolidated nancial statements that are then reviewed by
the Directors.
During the period, the Audit Committee has reviewed the eectiveness of internal controls as described above, no changes were
required to be made to the existing procedures.
There are no signicant issues disclosed in the Annual Report for the year ended 31 December 2024 (and up to the date of approval of the
report) concerning material internal control issues. The Directors conrm that the Board has reviewed the eectiveness of the system of
internal control as described during the period.
AltynGold plc Annual Report 2024 | 41
Going concern
The Group increased turnover in the year to US$94m from US$64m, generating an adjusted EBITDA of US$50.9m (2023 US$22.3m), see
note 13.
The Board have reviewed the Group’s forecast cash ows for the period to June 2026, which include the capital and interest repayments
to be made in relation to the Group’s borrowings. Capital and operating costs are based on approved budgets and latest forecasts and
development plans. These have been based on costs that have been xed with suppliers where applicable and other costs that include
inationary allowance. The gold price used in the forecasts has been based on an average of consensus forecasts, which is lower than that
currently being achieved.
Based on the Group’s cash ow forecasts, the Directors believe that the net cash ows from operations will be sucient to fund the
ongoing operational nance requirements of the Company. The cash generation will be higher in 2025 due to the input from third line of
production which became operational at the start of 2025.
In each separate case the Group would not experience a cash shortfall, the Group would manage its resources, reducing or adjusting the
timing of discretionary capital investment and managing its payables in order to maintain liquidity as appropriate.
The Board therefore considers it is appropriate to adopt the going concern basis of accounting in preparing these nancial statements.
Directors interest in shares and substantial shareholdings
The following information in relation to shareholdings has been audited.
The interests of the Directors in the shares of the Company are shown below:
Kanat, Aidar and Sanzhar Assaubayev have a benecial interest in the ultimate controlling party of AGold Mining Group Plc, the details of
which are shown below. Related party transactions in which the Assaubayev’ family had an interest are disclosed in note 20, on page 69.
Number % owned
Ashar Qureshi 78,800 0.30
Neither Vladimir Shkolnik, Andrew Terry or Maryam Buribayeva hold any interests in the shares of the Company.
The following have advised that they have an interest in 3% or more of the issued share capital of the Company as at the date the year end
and as at the date of this report.
Number % owned
AGold Mining Group Plc (formerly African Resources Limited) 17,911,400 65.6
JSC Freedom Finance 864,116 3.1
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of PKF Littlejohn LLP as auditors of the
company is to be proposed at the forthcoming Annual General Meeting.
Approved by the Board on 24 April 2025 and signed on its behalf by:
Mr Aidar Assaubayev (Chief Executive Ocer)
Director
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
42 | AltynGold plc Annual Report 2024
STATEMENT OF DIRECTORS’
RESPONSIBILITIES
The directors are responsible for preparing the annual report and the nancial statements in accordance with UK adopted international
accounting standards and applicable law and regulations.
Company law requires the directors to prepare nancial statements for each nancial year. Under that law the directors are required to
prepare the group nancial statements and have elected to prepare the company nancial statements in accordance with UK adopted
international accounting standards. Under company law the directors must not approve the nancial statements unless they are satised
that they give a true and fair view of the state of aairs of the group and company and of the prot or loss for the group for that period..
In preparing these nancial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether they have been prepared in accordance with UK adopted international accounting standards, subject to any material
departures disclosed and explained in the nancial statements;
• prepare the nancial statements on the going concern basis unless it is inappropriate to presume that the group and the company
will continue in business;
• prepare a directors’ report, a strategic report and directors’ remuneration report which comply with the requirements of the
Companies Act 2006.
The directors are responsible for keeping adequate accounting records that are sucient to show and explain the Company’s and
Group’s transactions and disclose with reasonable accuracy at any time the nancial position of the Company and Group that enables
them to ensure that the nancial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the annual report and accounts,
taken as a whole, are fair, balanced, and understandable and provides the information necessary for shareholders to assess the
Company’s and Group’s performance, business model and strategy.
Website publication
The directors are responsible for ensuring the annual report and the nancial 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 nancial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the
company’s website is the responsibility of the directors. The directors’ responsibility also extends to the ongoing integrity of the nancial
statements contained therein.
Directors’ responsibilities pursuant to DTR4
The directors conrm to the best of their knowledge:
• The nancial statements have been prepared in accordance with the applicable set of accounting standards, and give a true and fair
view of the assets, liabilities, nancial position and prot and loss of the group and company.
• The annual report includes a fair review of the development and performance of the business and the nancial position of the Group
and Company, together with a description of the principal risks and uncertainties that they face.
• All Directors that are in oce at the date of this report have conrmed that they are not aware of any relevant audit information of
which the auditor is unaware. Each of the Directors has conrmed they have taken all reasonable steps they ought to have taken as
Directors to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
.
AltynGold plc Annual Report 2024 | 43
AUDIT COMMITTEE
REPORT
The Committee’s terms of reference have been approved by the Board and follow published guidelines, which are available from
the Company Secretary. The Audit Committee comprises the Non-Executive Directors, Ashar Qureshi, Vladimir Shkolnik and Maryam
Buribayeva.
The Audit Committee’s prime tasks are to:
• review the scope of external audit, to receive regular reports from the auditor and to review the half-yearly and annual accounts
before they are presented to the Board, focusing in particular on accounting policies and areas of management judgement and
estimation;
• review key areas of the nancial statements which are assessed as being the carrying values of the intangible and tangible assets.
• monitor the controls which are in force to ensure the integrity of the information reported to the shareholders;
• assess key risks and to act as a forum for discussion of risk issues and contribute to the Board’s review of the eectiveness of the
Group’s risk management control and processes;
• act as a forum for discussion of internal control issues and contribute to the Board’s review of the eectiveness of the Group’s
internal control and risk management systems and processes;
• consider each year the need for an internal audit function;
• advise the Board on the appointment of external auditors and rotation of the audit partner every ve years, and on their remuneration
for both audit and non audit work, and discuss the nature and scope of their audit work;
• participate in the selection of a new external audit partner and agree the appointment when required;
• undertake a formal assessment of the auditors’ independence each year which includes:
- a review of non-audit services provided to the Group and related fees;
- discussion with the auditors of a written report detailing all relationships with the Company and any other parties that could
aect independence or the perception of independence;
- a review of the auditors’ own procedures for ensuring the independence of the audit rm and partners and sta involved in the
audit, including the regular rotation of the audit partner; and
- obtaining written conrmation from the auditors that, in their professional judgement, they are independent.
Meetings
The Committee meets prior to the annual audit with the external auditors to discuss the audit plan and again prior to the publication of
the annual results. Prior to bi-monthly Board meetings the members of the Committee meet on an informal basis to discuss any relevant
matters which may have arisen. Additional formal meetings are held as necessary.
During the past year the Committee:
• met with the external auditors, and discussed their report to the Audit Committee;
• approved the publication of annual and half-year nancial results;
• considered and approved the annual review of internal controls;
• decided that due to the size and nature of operation there was not a current need for an internal audit function;
• agreed the independence of the auditors and approved their fees for audit services as set out in note 10 on page 47 of the nancial
statements.
Review of internal controls
Internal control procedures as noted in the annual report last year were adhered to, transactions that were not in the normal course of
business or large in nature were communicated to the Board as a whole as part of the normal internal control process as part of the regular
Board meetings, and to be formally documented, and no contract should be awarded if a tender process was required until signed o by
the executive Director.
Fraud/money laundering
Internal reviews were made during the year in relation to the anti-corruption, fraud and money laundering policies. No changes were made
to the employee hand book available for all sta. The policies cover detailed procedures in relation to sta duties in relation to fraud and
bribery and a clear reporting lines to inform management or third parties in relation to the above. The policies in relation to both have been
made available on the website, and distributed to all employees.
External auditors
PKF Littlejohn LLP reappointment will be conrmed at the Annual General Meeting to be held on 20 June 2025.
Maryam Buribayeva
Audit Committee
24 April 2025
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
44 | AltynGold plc Annual Report 2024
The Remuneration Committee presents its report for the year ended 31 December 2024 which is presented in two parts.
The rst part is the annual remuneration report which details remuneration awarded to Directors and Non-Executive Directors during
the year. The shareholders will be asked to approve the annual remuneration report as an ordinary resolution (as in previous years) at the
Annual General Meeting. Details in relation to voting at last year’s AGM in relation to approval of the remuneration report, the remuneration
policy of the Company, (which is voted on tri-annually - was voted on in 2024) are detailed on page 46.
The second part is the remuneration policy report which details the remuneration policy for Directors.
The Remuneration Committee reviewed the existing policy and deemed no changes necessary to the current arrangements.
Both of the above reports have been prepared in accordance with The Large and Medium-sized Companies and Groups (Accounts and
Reports) (Amendment) Regulations 2018.
The Company’s auditors, are required by law to audit certain disclosures and where disclosures have been audited they are indicated as
such.
Ashar Qureshi
Remuneration Committee
24 April 2025
REMUNERATION COMMITTEE -
STATEMENT
AltynGold plc Annual Report 2024 | 45
Remuneration Committee
The Remuneration Committee currently comprises of two Directors - Ashar Qureshi and Vladimir Shkolnik. The Committee, which
meets as required, is responsible for determining the contract terms, remuneration and other benets of the Executive Directors. The
remuneration of the Non-Executive Directors is determined by the Board within the limits set out in the articles of association. None of
the Committee members has any personal nancial interest in the matters to be decided (other than as shareholders), potential conicts
of interest arising from cross-Directorships, or any day-to-day involvement in running the business. The Committee has access to
professional advice from inside and outside the Company at the Company’s expense.
Details of the remuneration paid in the year are shown below.
Approach to recruitment remuneration
All appointments to the Board are made on merit. The components of a new Director’s remuneration package would comprise at present
a base salary. The Company will pay such levels of remuneration to new Directors that would enable the Company to attract appropriately
skilled and experienced individuals that is not in the opinion of the Remuneration Committee excessive.
Service contracts
All Executive Directors have full-time contracts of employment with the Company. Non-Executive Directors have contracts of service.
No Director has a contract of employment or contract of service with the Company, its joint venture or associated companies with a xed
term which exceeds three years. Directors’ notice periods are set in line with market practice and of a length considered sucient to
ensure an eective handover of duties should a Director leave the Company.
All Directors’ “contracts” as amended from time to time, have run from the date of appointment. Service contracts are kept at the
registered oce.
Summary of Directors’ terms
Date of contract Unexpired term
Notice period
months
Executive Directors
Kanat Assaubayev 23 October 2017 Continuing 3
Aidar Assaubayev 20 February 2013 Continuing 3
Sanzhar Assaubayev 29 February 2017 Continuing 3
Non- Executive Directors
Ashar Qureshi 7 December 2015 Continuing 3
Vladimir Shkolnik
21 November
2018 Continuing 3
Maryam Buribayeva 24 January 2022 Continuing 3
Andrew Terry 24 January 2022 Continuing 3
Policy on payment for loss of oce
There are no contractual provisions agreed that could impact on a termination payment. Termination payments will be calculated in
accordance with the existing contract of employment or service contract. It is the policy of the Remuneration Committee to issue
employment contracts to Executive Directors with normal commercial terms and without extended terms of notice which could give rise
to extraordinary termination payments.
Consideration of employment conditions elsewhere in the Group
In setting this policy for Directors’ remuneration the Remuneration Committee has been mindful of the Company’s objective to
reward all employees fairly according to their role, performance and market forces. In setting the policy for Directors’ remuneration
the Remuneration Committee has considered the pay and employment conditions of the other employees within the Group. No
formal consultation has been undertaken with employees in drawing up the policy. The Remuneration Committee has not used formal
comparison measures.
Consideration of shareholder views
Shareholder views have been taken into account when formulating this policy, and was approved at the Annual General Meeting in 2024.
Remuneration
The total Directors fees and salaries of US$311,040 (2023: US$301,320) shown in the table below has been audited.
ANNUAL REMUNERATION
REPORT
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
46 | AltynGold plc Annual Report 2024
Directors salaries and fees (Audited)
2024
US$
2023
US$
Executive Directors
Kanat Assaubayev 38,400 37,200
Aidar Assaubayev 96,000 93,000
Sanzhar Assaubayev 38,400 37,200
Non- Executive Directors
Ashar Qureshi 34,560 33,480
Vladimir Shkolnik 34,560 33,480
Andrew Terry 34,560 33,480
Maryam Buribayeva 34,560 33,480
Total 311,040 301,320
The total amount remaining unpaid with respect to Directors’ remuneration amounted to US$62,337 (2023: US$49,000). The total
directors’ remuneration for 2024 and 2023 includes only salaries and fees.
The Directors’ remuneration in total will be in the range of US$320,000 in the forthcoming year.
Statement of implementation of remuneration policy in the following year
The policy was approved at the Annual General Meeting in June 2024.
The vote on the remuneration policy is binding in nature. The Company may not then make a remuneration payment or payment for
loss of oce to a person who is, is to be, or has been a Director of the Company unless that payment is consistent with the approved
remuneration policy, or has otherwise been approved by a resolution of members.
Consideration by the Directors of matters relating to Directors’ remuneration
There were no changes to the level of remuneration from the prior year.
Shareholder voting
At the Annual General Meeting (AGM), in June 2024, there was a vote to approve the Directors remuneration policy which is considered on
a tri-annual basis with the next vote to be conducted in the year 2027. At that AGM out of the eligible votes of 27,332,934, 18,437,796 voted
in favour of the policy and 8,695 against.
Details of the Directors remuneration policy can be found on the Company’s website www.AltynGold.uk. The results of shareholder voting
to approve the Directors remuneration report at the AGM’s on the 21 June 2024 and 22 June 2023 are shown below:
ANNUAL REMUNERATION
REPORT
continued
Votes in
favour
Votes
against
Votes in
favour
Votes
against
No No No No 000’s No 000’s No 000’s
2024 2024
Maximum
votes 2023 2023
Maximum
votes
Voting to approve the Directors’
remuneration report 18,437,796 8,695 27,332,934 18,539,886 7,285 27,332,934
AltynGold plc Annual Report 2024 | 47
Members of the Remuneration Committee
The following Directors are members of the Remuneration Committee:
Ashar Qureshi and Vladimir Shkolnik.
Pension schemes and incentives
No Directors are members of the Company pension scheme.
Share option schemes
There are no share option schemes currently in the Company.
Payments to past Directors
No payments were made to past Directors during the year.
Payments for loss of oce
No payments for loss of oce were made in the year ended 31 December 2024.
Statement of Directors’ shareholding and share interest
The interests of the Directors in the shares of the Company, including family and trustee holdings are disclosed on page 41 of the Annual
Report.
Performance targets
There are no performance measure targets associated with the Directors Remuneration.
Performance graph
The following information is unaudited.
Shown below is Altyngold’s performance against the FTSE 350 mining index, which the Directors believe is the most appropriate market
measure to judge the performance of the Company against.
Directors interest in shares and substantial shareholdings
The information which has been audited is disclosed on page 30 of the Directors’ Report.
Remuneration of the Chief Executive Ocer over the last ten years
The table below demonstrates the remuneration of the CEO for the last ten years
Year Chief Executive Ocer Total remuneration US$000
2024 Aidar Assaubayev 96
2023 Aidar Assaubayev 93
2022 Aidar Assaubayev 79
2021 Aidar Assaubayev 41
2020 Aidar Assaubayev 38
2019 Aidar Assaubayev 38
2018 Aidar Assaubayev 83
2017 Aidar Assaubayev 201
2016 Aidar Assaubayev 215
2015 Aidar Assaubayev 175
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
48 | AltynGold plc Annual Report 2024
ANNUAL REMUNERATION
REPORT
continued
Relative importance of spend on pay
The total expenditure of the Company on remuneration to all employees in shown in note 7 to the nancial statements and in the table
below.
Remuneration
2024
US$000
2023
US$000
Directors’ emoluments 311 301
Employee salaries 5,192 4,325
Employer social tax and national insurance 1,682 1,160
Total 7,185 5,786
As the Company is currently not making distributions the relative importance of pay has been measured against debt repayments in the
year. In 2024 the salaries represented 0.35 times the amount paid back in loan repayments in the year (2023:0.35 times).
Annual change in compensation for members of the Board and the remuneration of average employees
over the last ve years
2020
US$
2021
US$
2022
US$
2023
US$
2024
US$
Remuneration fees Kanat Assaubayev
- appointed on 23 October 2013 - 41,400 37,500 37,200 38,400
- Year-on-year dierence - 41,400 (3,900) (300) 1,200
- Year-on-year dierence - % - 100 (9) (0.1) 3
Remuneration fees Aidar Assaubayev
- appointed 20 February 2013 38,400 41,400 79,688 93,000 96,000
- Year-on-year dierence - 3,000 38,288 13,312 3,000
- Year-on-year dierence - % - 8 92 17 3
Remuneration fees Sanzhar Assaubayev
- appointed on 29 February 2016 - 41,400 37,500 37,200 38,400
- Year-on-year dierence - 41,400 (3,900) (300) 1,200
- Year-on-year dierence - % - 100 (9) (0.1) 3
Remuneration fees Ashar Qureshi
- appointed 7 December 2012 34,560 37,260 33,750 33,480 34,560
- Year-on-year dierence - 2700 (3,510) (270) 1,080
- Year-on-year dierence - % - 8 (9) (0.1) 3
Remuneration fees Vladimir Shkolnik
- appointed 22 November 2017 34,560 37,260 33,750 33,480 34,560
- Year-on-year dierence - 2,700 (3,510) (270) 1,080
- Year-on-year dierence - % - 8 (9) (0.1) 3
Remuneration fees Maryam Buribayeva
- appointed 24 January 2022 - - 31,741 33,480 34,560
- Year-on-year dierence - - - 1,739 1,080
- Year-on-year dierence - % - - - 5 3
AltynGold plc Annual Report 2024 | 49
2020
US$
2021
US$
2022
US$
2023
US$
2024
US$
Remuneration fees Andrew Terry
- appointed 24 January 2022 - - 31,741 33,480 34,560
- Year-on-year dierence - - - 1,739 1,080
- Year-on-year dierence - % - - - 5 3
Remuneration of average employees 4,984 7,585 7,776 9,086 9,927
- Year-on-year dierence (1,301) 2,600 191 1,310 841
- Year-on-year dierence - % (21) 52 3 17 9
The average remuneration of employees is based on group employees numbers employed in Kazakhstan, in part the changes in average
pay will also be a function of changes in exchange rates as the salaries are paid in Kazakh Tenge.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
50 | AltynGold plc Annual Report 2024
REMUNERATION POLICY
REPORT
The remuneration policy of the Company was approved by a binding vote at the Annual General Meeting held on 21 June 2024, see details
on page 46.
At present the only remuneration payable to the Directors is that of a base salary. In setting the policy the Remuneration Committee has
taken the following into account:
• the need to attract, retain and motivate individuals of a calibre who will ensure successful leadership and management of the
Company;
• the Company’s general aim of seeking to reward all employees fairly according to the nature of their role and their performance;
• remuneration packages oered by similar companies in the same sector;
• the need to align the interests of the shareholders with the long term growth and interests of the Company;
• the need to be exible and adjust with operational changes throughout the term of the policy.
The remuneration of the Non-Executive Directors is determined by the Board, and takes into account additional remuneration for services
outside the scope of the ordinary duties of the Non-Executive Directors.
The details in relation to the Directors remuneration policy are available on the website www.altynGold.uk
AltynGold plc Annual Report 2024 | 51
INDEPENDENT AUDITOR’S REPORT TO THE
MEMBERS OF ALTYNGOLD PLC
Opinion
We have audited the nancial statements of AltynGold Plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended
31 December 2024 which comprise the Consolidated Income Statement and Statement of Comprehensive Income, Consolidated
and Company Statements of Financial Position, the Consolidated and Company Statements of Changes in Equity, the Consolidated
and Company Statements of Cash Flows and notes to the nancial statements, including signicant accounting policies. The nancial
reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards and
as regards the parent company nancial statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
• the nancial statements give a true and fair view of the state of the group’s and of the parent company’s aairs as at 31 December
2024 and of the group’s prot for the year then ended;
• the group nancial statements have been properly prepared in accordance with UK-adopted international accounting standards;
• the parent company nancial statements have been properly prepared in accordance with UK-adopted international accounting
standards and as applied in accordance with the provisions of the Companies Act 2006; and
• the nancial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the nancial statements section of our report.
We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the
nancial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fullled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sucient
and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the nancial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the nancial statements is appropriate. Our evaluation of the directors’ assessment of the group’s and parent company’s
ability to continue to adopt the going concern basis of accounting included:
• Testing the integrity of the forecast model, checking the mathematical accuracy and completeness of the model, including
challenging the appropriateness of estimates and assumptions with reference to empirical data and external evidence. Our testing
focused on the following key assumptions: gold price, production costs, gold grade, recoveries and foreign exchange rates and we
assessed their consistency with Board approved budgets and the mine development plan, as applicable;
• Comparing budgets to actual gures achieved to assess the reliability of management’s forecasts;
• Evaluating management’s sensitivity analysis and performing our own sensitivity analysis in respect of the key assumptions
underpinning the forecasts. Where applicable, we assessed the validity of any mitigating actions identied by management;
• Conrming the terms of all borrowing facilities in place and that the terms are not breached. Reviewing the contractual repayments
to check these are accurately reected in the cash ow forecast; and
• Assessing if the going concern disclosures in the nancial statements are appropriate and accurately reect management’s going
assessment.
Based on the work we have performed, we have not identied any material uncertainties relating to events or conditions that, individually
or collectively, may cast signicant doubt on the group’s or parent company’s ability to continue as a going concern for a period of at
least twelve months from when the nancial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this
report.
Our application of materiality
The scope of our audit was inuenced by our application of materiality. The quantitative and qualitative thresholds for materiality
determine the scope of our audit and the nature, timing and extent of our audit procedures.
Materiality applied to the group nancial statements was $1,150,000 (2023: $1,100,000) with performance materiality set at $800,000
(2023: $770,000), being 70% (2023: 70%) of group materiality. We have chosen to apply 70% for the purposes of the performance
materiality calculation as this is our third audit and no material adjustments or signicant control deciencies were identied in prior years.
Overall materiality was based on 1.5% of group revenue (2023: 1% of group’s total assets). Our change in the basis of materiality was
considered appropriate owing to the completion of signicant investment in mining and processing operations in the year and the focus
by management to increase production and revenues at the group’s main operation, its 100% interest in the Sekisovskoye gold mine in
Northeast Kazakhstan. We believe revenue to be the key metric in determining materiality and a key performance indicator.
We apply the concept of materiality both in planning and performing our audit, and in evaluating the eect of misstatements. At the
planning stage, materiality is used to determine the nancial statement areas that are included within the scope of our audit.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
52 | AltynGold plc Annual Report 2024
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specically, we use performance materiality in determining the scope of our audit
and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample
sizes.
In determining performance materiality, we considered the following factors:
• the consistency in the level of judgement required in key accounting estimates;
• the stability in key management personnel; and
• the level of centralisation in the Group’s nancial reporting controls and processes.
For each signicant component in the scope of our audit, we allocated a component performance materiality based on the maximum
aggregate component performance materiality. The range of performance materiality allocated across components was between
$600,000 and $700,000 (2023: $400,000 to $540,000), being a percentage of between 75% and 87.5% of group performance
materiality.
We agreed with the audit committee that we would report all individual audit dierences identied for the group during the course of
our audit in excess of $50,000 (2023: $55,000). We also agreed to report any other audit misstatements below that threshold that we
believe warranted reporting on qualitative grounds.
Materiality applied to the parent company’s nancial statements was $1,000,000 (2023: $850,000). The benchmark for determining
materiality of the parent company was 84% (2023: 77%) of group materiality and equates to 0.75% (2023: 0.6%) of the parent company’s
gross assets. We agreed with the audit committee that we would report all individual audit dierences identied for the parent company
during the course of our audit in excess of $50,000 (2023: $42,000) together with any other audit misstatements below that threshold
that we believe warranted reporting on qualitative grounds.
Our approach to the audit
In designing our audit, we determined materiality, as above, and assessed the risk of material misstatement in the nancial statements. In
particular, we looked at areas involving signicant accounting estimates and judgement by the directors and considered future events
that are inherently uncertain.
We note that the group has signicant carrying values in both intangible assets and property, plant & equipment which is underpinned by
the quantity and quality of resources being mined and exploration projects. Both of these areas are inherently complicated and require
a signicant amount of judgement by management. We also addressed the risk of management override of internal controls, including
evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
Of the group’s 5 components, including the parent company, two were material and subject to full scope audit for group purposes. The
remaining components were not considered material and we performed specic scope procedures, as appropriate. The two full scope
components were located in Kazakhstan and audited by the same component auditor. All work with respect to the two components
has been performed by the component auditor under our instruction and we reviewed the component auditor’s les in person and via
virtual conferences. The parent company audit was conducted by us using a team with specic experience of auditing mining entities
and publicly listed entities. The Senior Statutory Auditor interacted regularly with the component audit team during all stages of the audit
and was responsible for the scope and direction of the audit process. This, in conjunction with additional procedures performed, gave us
sucient and appropriate audit evidence to support the audit opinion of the group and parent company nancial statements.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most signicance in our audit of the nancial statements
of the current period and include the most signicant assessed risks of material misstatement (whether or not due to fraud) we identied,
including those which had the greatest eect on: the overall audit strategy, the allocation of resources in the audit; and directing the
eorts of the engagement team. These matters were addressed in the context of our audit of the nancial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
INDEPENDENT AUDITOR’S REPORT TO THE
MEMBERS OF ALTYNGOLD PLC
continued
AltynGold plc Annual Report 2024 | 53
Key Audit Matter How our scope addressed this matter
Valuation of Mining assets (Note 15)
Property, plant & equipment amounts to $72.6m (2023: $70.6m)
and includes $19.5m (2023: $18.3m) of mining assets and $5.3m
(2023: $13.2m) of assets under construction. There is a signicant
risk that the carrying value of these assets are not recoverable
and that these amounts should be impaired.
There are further risks that licenses and mining rights may be
discontinued or non-renewed. The value in these assets is
derived from the rights and obligations of the mining licenses at
Sekisovskoye.
This is considered to be a key audit matter due to the material
nature of the balance and the level of signicant estimation
and judgement required by management when assessing the
carrying value of these assets.
Our work in this are included:
• Assessing and reviewing indicators of impairment per IAS 36
and considering whether any apply to the group;
• Obtaining, reviewing and challenging management’s
present value calculations for indicators of impairment;
• Assessing the appropriateness of key assumptions and
inputs used in management’s value-in-use model, including
commodity price, production, operating costs, capital
costs, discount rates, and foreign exchange rates, including
obtaining corroborating and contradictory evidence for
management’s key assumptions and inputs;
• Comparing the proven and probable reserves included
in the models to the independent Competent Person’s
report and performing audit procedures to assess their
independence; competence and objectivity;
• Engaging an auditor’s expert to assess the mining
operations and mine plans prepared by management and to
determine the reasonableness of the company’s plans; and
• Physically attending the mine site and observing operations.
Key Observation:
Based on audit procedures performed, we consider that
management’s impairment assessment of the mining asset as at
31 December 2024 is reasonable.
Valuation of capitalised exploration costs capitalised as intangible assets under IFRS 6 (Note 14)
Intangible assets comprise of geological data and exploration
and evaluation costs in relation to the TerenSai ore elds and
are valued at $14.3m (2023: $12.9m). The recoverability of these
intangible assets is key to the long-term success of the group.
There is a signicant risk that the carrying values of intangible
assets are not recoverable and should be impaired.
This is considered to be a key audit matter due to the material
nature of the balance and the level of estimation and judgement
required by management when assessing the carrying value of
these assets.
Our work in this area included:
• Obtaining the current exploration licences and the validity of
the licences;
• Reviewing the indicators of impairment criteria as listed in
IFRS 6. Exploration for and Evaluation of Mineral Resources,
which included a review of internal / external drilling results
produced during the year;
• Reviewing the key external reports for indicators of
impairment;
• Enquiring of management over the future plans for each
license including obtaining cash ow projections where
necessary; and
• Reviewing the exploration and evaluation expenditures
to assess their eligibility for capitalisation under IFRS 6 by
corroborating to the original source documentation.
Key Observation:
Based on the audit procedures performed, we consider
management’s impairment of intangible assets as at
31 December 2024 to be reasonable.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
54 | AltynGold plc Annual Report 2024
Other information
The other information comprises the information included in the annual report, other than the nancial statements and our auditor’s report
thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the group and parent
company nancial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we
do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the nancial statements or our knowledge obtained in the course of the audit,
or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material misstatement in the nancial statements themselves. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies
Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the nancial year for which the nancial statements are
prepared is consistent with the nancial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the
audit, we have not identied material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which 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 nancial statements and the part of the directors’ remuneration report to be audited are not in agreement with
the accounting records and returns; or
• certain disclosures of directors’ remuneration specied by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the group and
parent company nancial statements and for being satised that they give a true and fair view, and for such internal control as the
directors determine is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the group and parent company nancial statements, the directors are responsible for assessing the group’s and the parent
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or
have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the nancial statements
Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to inuence the economic decisions of users taken on the basis of these nancial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below:
• We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and
regulations that could reasonably be expected to have a direct eect on the nancial statements. We obtained our understanding
in this regard through detailed discussions with management about any potential instances of non-compliance with laws and
regulations both in the UK and in overseas subsidiaries. We also selected a specic audit team based on experience with auditing
entities within this industry of a similar size;
INDEPENDENT AUDITOR’S REPORT TO THE
MEMBERS OF ALTYNGOLD PLC
continued
AltynGold plc Annual Report 2024 | 55
• We determined the principal laws and regulations relevant to the group and parent company to include elements of the signicant
laws and regulations relating to the industry, nancial reporting framework, listing rules, tax legislation and environmental regulations
in the UK and Kazakhstan;
• We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by
the group and parent company with those laws and regulations. These procedures included, but were not limited to:
– Holding discussions with management and those charged with governance to determine any known or suspected instances of
non-compliance with laws and regulations or fraud identied by them;
– Reviewing legal and professional fees for evidence of any litigation or claims against the group;
– Review of legal and regulatory correspondence; and
– Review of Board minutes
• We also identied the risks of material misstatement of the nancial statements due to fraud. We considered, in addition to the non-
rebuttable presumption of a risk of fraud arising from management override of controls, that the potential for management bias was
identied in relation to the carrying value of mining assets – group and the valuation of capitalised exploration costs capitalised as
intangible assets under IFRS 6 – group (see Key audit matters section above).
• As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures
which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating
the business rationale of any signicant transactions that are unusual or outside the normal course of business with a focus on any
prepayments made in respect of mining development.
• A local network rm was engaged to act as component auditors for group reporting purposes. As part of the group audit, we have
communicated with component auditors the fraud risks associated with the group and the need for the component auditors to
address the risk of fraud in their testing. We have reviewed the component auditor working papers and obtained responses to our
group instructions from the component auditors.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material
misstatement in the nancial statements or non-compliance with regulation. This risk increases the more that compliance with a law or
regulation is removed from the events and transactions reected in the nancial statements, as we will be less likely to become aware
of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the nancial statements is located on the Financial Reporting Council’s website
at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters which we are required to address
We were appointed by the Audit committee on 19 January 2023 to audit the nancial statements for the period ending 31 December 2022
and subsequent nancial periods. Our total uninterrupted period of engagement is 3 years.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain
independent of the group and the parent company in conducting our audit.
In addition to the audit, we have performed an interim review of the half year results to 30 June 2024 and issued an Independent Review
Report in accordance with International Standard on Review Engagements (UK) 2410.
Our audit opinion is consistent with the additional report to the audit committee.
Use of our report
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.
Joseph Archer (Senior Statutory Auditor) 15 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Statutory Auditor London E14 4HD
24 April 2025
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
56 | AltynGold plc Annual Report 2024
AltynGold plc Annual Report 2024 | 57
FINANCIAL
STATEMENTS
Consolidated Income Statement and Statement
of Comprehensive Income 58
Consolidated Statement of Financial Position 59
Company Statement of Financial Position 60
Consolidated Statement of Changes in Equity 61
Company Statement of Changes in Equity 62
Consolidated Statement of Cash Flows 63
Company Statement of Cash Flows 64
Notes to the Financial Statements 65
Notice of Annual General Meeting 91
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTSSTRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
58 | AltynGold plc Annual Report 2024
Note
2024
$ 000
2023
$ 000
Revenue 5 96,522 64,434
Cost of sales (47,455 ) (41,102 )
Gross prot 49,067 23,332
Administrative expenses (6,557 ) (6,977 )
Impairments 8 (117 ) (439 )
Operating prot 42,393 15,916
Finance income 358 -
Foreign exchange (6,373 ) 252
Finance expense (6,023 ) (4,283 )
Total nance cost 9 (12,038 ) (4,031 )
Prot before tax 10 30,355 11,885
Taxation expense 11 (3,932 ) (546 )
Prot for the year attributable to the equity holders of the parent 26,423 11,339
Prot for the year 26,423 11,339
Items that may be reclassied subsequently to the income statement
Currency translation dierences arising on translations of foreign operations (14,948 ) 1,210
Currency translation dierences on translation of foreign operations relating to tax - (4,075 )
(14,948 ) (2,865 )
Total comprehensive prot attributable to:
Equity holders of the parent 11,475 8,474
Earnings per ordinary share 12
Basic 96.66 c 41.48 c
Diluted 96.66 c 41.48 c
The notes on pages 65 to 90 form an integral part of these nancial statements.
CONSOLIDATED INCOME STATEMENT AND
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 59
(Registration number: 05048549)
Note
2024
$ 000
2023
$ 000
Assets
Non-current assets
Intangible assets 14 14,880 13,661
Property, plant and equipment 15 72,638 70,593
Deferred tax assets 11 - 1,419
Trade and other receivables 18 14,669 18,354
Restricted cash 93 33
Current assets
Inventories 17 23,503 17,464
Trade and other receivables 18 20,430 18,465
Cash and cash equivalents 10,402 5,502
Total assets 156,615 145,491
Equity and liabilities
Current liabilities
Trade and other payables 19 (7,468 ) (9,658 )
Income tax liability (78 ) -
Provisions 21 (358 ) (324 )
Loans and borrowings 22 (29,201 ) (18,132 )
(37,105 ) (28,114 )
Non-current liabilities
VAT payable 19 - (114 )
Other payables 19 - (133 )
Deferred tax liabilities 11 (675 ) -
Provisions 21 (5,733 ) (6,089 )
Loans and borrowings 22 (30,945 ) (40,359 )
(37,353 ) (46,695 )
Total liabilities (74,458 ) (74,809 )
Equity
Share capital 24 (4,267 ) (4,267 )
Share premium (152,839 ) (152,839 )
Merger reserve 282 282
Foreign currency translation reserve 75,455 60,507
Accumulated prots/losses (788 ) 25,635
Equity attributable to owners of the company (82,157 ) (70,682 )
Total equity and liabilities (156,615 ) (145,491 )
Approved by the Board on 24 April 2025 and signed on its behalf by:
Mr Aidar Assaubayev (Chief Executive Ocer)
Mr Sanzhar Assaubayev (Executive Director)
Director Director
The notes on pages 65 to 90 form an integral part of these nancial statements.
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
as at 31 December 2024
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
60 | AltynGold plc Annual Report 2024
(Registration number: 05048549)
Note
2024
$ 000
2023
$ 000
Assets
Non-current assets
Investments in subsidiaries 16 48,132 48,132
Loans due from subsidiaries 16 92,661 80,967
140,793 129,099
Current assets
Trade and other receivables 18 39 14
Cash and cash equivalents 8,956 4,413
8,995 4,427
Total assets 149,788 133,526
Equity and liabilities
Current liabilities
Trade and other payables 19 (1,906) (1,213)
Loans and borrowings 22 (9,912) -
(11,818) (1,213)
Non-current liabilities
Loans and borrowings 22 (9,568) (9,582)
Total liabilities (21,386) (10,795)
Equity
Share capital 24 (4,267) (4,267)
Share premium (152,839) (152,839)
Foreign currency translation reserve 16,338 16,338
Accumulated losses 12,366 18,037
Total equity (128,402) (122,731)
Total equity and liabilities (149,788) (133,526)
Approved by the Board on 24 April 2025 and signed on its behalf by:
Mr Aidar Assaubayev (Chief Executive Ocer) Mr Sanzhar Assaubayev (Executive Director)
Director Director
The parent Company is claiming the exemption under the Companies Act 2006 s408 not to present it’s individual income statement. The
Company made a prot of US$5,672,000 in the year (2023: US$33,606,795).
The notes on pages 65 to 90 form an integral part of these nancial statements.
COMPANY STATEMENT OF
FINANCIAL POSITION
as at 31 December 2024
AltynGold plc Annual Report 2024 | 61
Share
capital
$ 000
Share
premium
$ 000
Merger
reserve
$ 000
Currency
translation
reserve
$ 000
Accumulated
prots/losses
$ 000
Total
equity
$ 000
At 1 January 2023 (4,267 ) (152,839 ) 282 57,642 36,975 (62,207 )
Prot for the year - - - - (11,340 ) (11,340 )
Other comprehensive loss - - - 2,865 - 2,865
Total comprehensive loss - - - 2,865 (11,340) (8,475)
At 31 December 2023 (4,267 ) (152,839 ) 282 60,507 25,635 (70,682 )
Share
capital
$ 000
Share
premium
$ 000
Merger
reserve
$ 000
Currency
translation
reserve
$ 000
Accumulated
prots/losses
$ 000
Total
equity
$ 000
At 1 January 2024 (4,267 ) (152,839 ) 282 60,507 25,635 (70,682 )
Prot for the year - - - - (26,423 ) (26,423 )
Other comprehensive income - - - 14,948 - 14,948
Total comprehensive income - - - 14,948 (26,423) (11,475)
At 31 December 2024 (4,267 ) (152,839 ) 282 75,455 (788 ) (82,157 )
Group Reserves
Share capital
Amount of the contributions made by shareholders in return for issue of shares at their nominal value.
Share premium
Amount subscribed for share capital in excess of nominal value.
Merger reserve
Reserve created on application of merger accounting under a previous GAAP.
Currency translation reserve
Gains/losses arising on re-translating the net assets of overseas operations into US Dollars.
The notes on pages 65 to 90 form an integral part of these nancial statements.
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
for the year ended 31 December 2024
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
62 | AltynGold plc Annual Report 2024
Share
capital
$ 000
Share
premium
$ 000
Currency
translation
reserve
$ 000
Accumulated
losses
$ 000
Total
$ 000
At 1 January 2023 (4,267) (152,839) 16,338 51,644 (89,124)
Prot for the year - - - (33,607) (33,607)
Total comprehensive Income - - - (33,607) (33,607)
At 31 December 2023 (4,267) (152,839) 16,338 18,037 (122,731)
Share
capital
$ 000
Share
premium
$ 000
Currency
translation
reserve
$ 000
Accumulated
losses
$ 000
Total
equity
$ 000
At 1 January 2024 (4,267) (152,839) 16,338 18,037 (122,731)
Prot for the year - - - (5,671) (5,671)
Total comprehensive income - - – (5,671) (5,671)
At 31 December 2024 (4,267) (152,839) 16,338 12,366 (128,402)
Company reserves
Share capital
Amount of the contributions made by shareholders in return for the issue of shares at their nominal value.
Share premium
Amount subscribed for share capital in excess of nominal value.
Currency translation reserve
Gains/losses arising on re-translating the net assets of overseas operations into US Dollars.
The notes on pages 65 to 90 form an integral part of these nancial statements.
COMPANY STATEMENT OF
CHANGES IN EQUITY
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 63
Note
2024
$ 000
2023
$ 000
Cash ows from operating activities
Net cash ow from operating activities 23 29,370 14,651
Cash ows from investing activities
Interest received 9 358 –
Acquisitions of property plant and equipment (17,877 ) (40,171 )
Acquisition of intangible assets 14 (3,977 ) (766 )
Net cash ows from investing activities (21,496 ) (40,937 )
Cash ows from nancing activities
Interest paid 23 (4,800 ) (3,228 )
Loans received 22,352 51,481
Loans repaid (20,415 ) (16,581 )
Net cash ows from nancing activities (2,863 ) 31,672
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January 5,011 5,386
Eect of exchange rate uctuations on cash held 5,502 116
Cash and cash equivalents at 31 December (111 ) –
The notes on pages 65 to 90 form an integral part of these nancial statements.
CONSOLIDATED STATEMENT OF
CASH FLOWS
for the year ended 31 December 2024
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
64 | AltynGold plc Annual Report 2024
Note
2024
$ 000
2023
$ 000
Cash ows from operating activities
Net cash outow from operating activities 23 (1,224) (603)
Net cash ow from operating activities (1,224) (603)
Cash ows from investing activities
Interest received 9 202 –
Loans paid to subsidiaries (2,500) (3,636)
Net cash ows from investing activities (2,298) (3,636)
Cash ows from nancing activities
Loans received 9,416 9,370
Interest repaid (1,351) (788)
Net cash ows from nancing activities 8,065 8,582
Net increase in cash and cash equivalents 4,543 4,343
Cash and cash equivalents at 1 January 4,413 70
Cash and cash equivalents at 31 December 8,956 4,413
The notes on pages 65 to 90 form an integral part of these nancial statements.
COMPANY STATEMENT OF
CASH FLOWS
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 65
1. General information
registered office, and place of business of the Company and its subsidiaries is set out within the Company information on page 98 of this
annual report. The principal activities of the Company and subsidiaries are set out on page 37 and the strategic review within this annual
report.
2. Basis of preparation
The annual report is for the year ended 31 December 2024 and includes the consolidated and parent company’s financial statements. The
financial statements have been prepared in accordance with UK-adopted international accounting standards and with the requirements
of the Companies Act 2006 as applicable to companies reporting under those standards.
The financial statements have been prepared using accounting policies set out in note 4 which are consistent with all applicable IFRSs
and with those parts of the Companies Act 2006 applicable to companies reporting under IFRSs. For these purposes, IFRSs comprises
the standards issued by the International Accounting Standards Board and interpretations issued by the International Financial Reporting
Interpretations Committee as adopted by the United Kingdom. The financial statements have been prepared under the historical cost
convention, and at fair value for financial and non-financial asset and liabilities as appropriate. The financial statements are prepared on a
going concern basis.
Going concern
The Group increased turnover in the year to US$94m from US$64m, generating an adjusted EBITDA of US$50.9m (2023 US$22.3m),
see note 13.
The Board have reviewed the Group’s forecast cash flows for the period to June 2026, which include the capital and interest repayments
to be made in relation to the Group’s borrowings. Capital and operating costs are based on approved budgets and latest forecasts and
development plans. These have been based on costs that have been fixed with suppliers where applicable and other costs that include
inflationary allowance. The gold price used in the forecasts has been based on an average of consensus forecasts, which is lower than that
currently being achieved.
Based on the Group’s cash flow forecasts, the Directors believe that the net cash flows from operations will be sufficient to fund the
ongoing operational finance requirements of the Company. The cash generation will be higher in 2025 due to the input from third line of
production which became operational at the start of 2025.
In each separate case the Group would not experience a cash shortfall, the Group would manage its resources, reducing or adjusting the
timing of discretionary capital investment and managing its payables in order to maintain liquidity as appropriate.
The Board therefore considers it is appropriate to adopt the going concern basis of accounting in preparing these financial statements.
3. Adoption of new and revised standards
A number of new standards, amendments to standards and interpretations, are effective for annual periods beginning on or after 1 January
2024. They have been adopted and applied in preparing these financial statements as appropriate.
• IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2 Climate-related Disclosures
• Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
• Non-current Liabilities with Covenants (Amendments to IAS 1)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
Standards and interpretations published, but not yet applicable for the annual period beginning on 1 January 2024, have not been applied
in preparing these financial statements. The Company is reviewing the new standards, amendments to standards and interpretations as
noted to assess the potential impact on the financial statements they have not been applied in preparing these financial statements.
• IFRS 18 Presentation and Disclosures in Financial Statements.
• IFRS 19 Subsidiaries without Public Accountability: Disclosures.
• Lack of Exchange ability (Amendments to IAS 21).
• Amendments to the SASB standards to enhance their international applicability.
• Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments.
• Annual Improvements to IFRS Accounting Standards - Volume 11.
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2024
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
66 | AltynGold plc Annual Report 2024
4. Accounting policies
Basis of consolidation
Where a company has control over an investee, the investee is classified as a subsidiary. A company controls an investee if all three of the
following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor
to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a
change in any of these elements of control.
The consolidated financial statements present the results of the company and its subsidiaries (“the Group”) as if they formed a single
entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement
of financial position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the
acquisition date. The results of 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.
Revenue recognition
Revenue represents amounts received for goods provided in the normal course of business, net of VAT and any other sales related taxes.
The Company’s revenue is generated entirely from the sale of the gold and silver (“Precious Metal”) content of doré. The doré was
delivered to a precious metal refiner, based in Kazakhstan during 2024 and 2023, which also purchased all precious metal that was
refined. Title of the precious metal passes upon acceptance of the delivery from the Company to the refiner. Sales of precious metal are
only recognised when the delivery has been accepted and title for the precious metal has accordingly been passed to the refiner. The
Company does not hedge or otherwise enter into any derivatives in respect of its sales of doré. Sales are recorded at the actual selling
price of the doré which is based on current market prices. The Company receives 90% less fees of the revenue on delivery of the dore
to the refiner based on the spot dollar and gold and silver prices on the day of delivery. The balance is paid once the dore is refined into
gold or silver and is usually paid with 14 days, based on the original gold price or silver price and spot price of the US dollar on the day of
settlement.
Foreign currencies
The Company has prepared its financial statements in United States Dollars (US$). The functional currency of the companies in Kazakhstan
is the Kazakhstan Tenge (KZT). The functional currency of the Company and AltynGold Holdings Limited is the United States Dollars (US$).
The rates used to convert Pound Sterling and Kazakhstan Tenge into United States Dollar in these financial statements are as follows:
US$ to Pound Sterling closing 1.26 (2023: 1.27), average 1.28 (2023:1.24),
US$ to Kazakh Tenge closing 523.54 (2023: 454.56) average 469.44 (2023:456.31).
The year end and average rates used for the Kazakh Tenge have been obtained from the National Bank of Kazakhstan.
Transactions denominated in currencies other than the functional currency of each respective entity are recorded at the rate of exchange
prevailing at the date of the transaction. Monetary assets and liabilities are translated into the relevant functional currency at the closing
rates of exchange at the reporting date. Exchange differences arising from the restatement of monetary assets and liabilities at the
closing rate of exchange at the reporting date or from the settlement of monetary transactions at a rate different from that at which the
asset or liability was recorded are dealt with through the statement of profit or loss.
On consolidation, the results of overseas operations are translated into US dollars, the Group’s presentational currency, at rates
approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate
ruling at the balance sheet date. Exchange differences arising on translating the opening net assets at the opening rate and the results
of overseas operations at the actual rate are recognised directly in the consolidated statement of other comprehensive income. The
intercompany loans form a part of the Company’s investment in a foreign operation. The exchange difference arising on the intercompany
loans on translation in the company income statement is being recognised in other comprehensive income which on consolidation is
recognised in a separate component of equity until disposal of the foreign operations.
In the individual Parent Company financial statements foreign exchange gains/losses are recognised in the income statement.
Intangible assets
Externally acquired intangible assets are initially recognised at cost and subsequently amortised on a straight-line basis over their
expected economic life. In the Directors’ opinion this is 10 years from May 2016 being the licenced period of the Teren Sai exploration
project. There is no effect on the income statement as amortisation costs of the geological data are capitalised in line with the accounting
policy on exploration and evaluation costs.
Exploration and evaluation costs
All costs incurred prior to obtaining the legal right to undertake exploration and evaluation activities on a project are written off
as incurred. All costs associated with mineral exploration and investments are capitalised on a project by project basis, pending
determination of the feasibility of the project. Costs incurred include appropriate technical and administrative expenses. If an exploration
project is successful and the project is determined to be commercially viable, the related costs will be transferred to mining assets and
amortised over the estimated life of the mineral reserves on a unit of production basis. Where a project is relinquished, abandoned, or is
considered to be of no further commercial value to the Group, the related costs are written off. Impairment reviews performed under IFRS
6 ‘Exploration for and evaluation of mineral resources’ are carried out on a project by project basis, with each project representing a
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 67
4. Accounting policies continued
potential single cash generating unit. An impairment review is undertaken when indicators of impairment arise; typically when one of the
following circumstances applies:
• sufficient data exists that render the resource uneconomic and unlikely to be developed
• title to the asset is compromised
• budgeted or planned expenditure is not expected in the foreseeable future
• insufficient discovery of commercially viable resources leading to the discontinuation of activities.
Property, plant and equipment
Mining properties comprise previously capitalised exploration, evaluation and development expenditure incurred during the exploration
and development stages of the Company’s mining projects.
Other items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost include directly
attributable costs and estimated present value of any future unavoidable costs of dismantling and removing items. The corresponding
liability is recognised within provisions.
Assets under construction represent assets under development that are not at the stage that can be used commercially to generate
revenues, no depreciation is applied to these assets.
Depreciation
Depreciation of property, plant and equipment is calculated on a straight line or units of production basis, as appropriate. Assets are fully
depreciated over their economic lives, or over the remaining life of the mine if shorter.
Assets under construction and freehold land are not depreciated.
Asset class Depreciation method and rate
Buildings 8-10 per cent per annum straight line basis
Equipment, fixtures and fittings 10-40 percent per annum straight line basis
Plant, machinery and vehicles 7-30 per cent. per annum straight line basis
Mining properties Unit of production based on the proven reserves
Impairment of non-current assets
Property, plant and equipment and intangible assets are assessed for impairment at each reporting date when events or a change in
circumstances suggest that the carrying amount of an asset may exceed the recoverable amount.
Where there has been an indication of a possible impairment, management assesses the recoverability of the carrying value of the asset
by comparing it with the estimated discounted future net cash flows generated by the asset based on management’s expectation of
future production and selling prices. Any identified impairment is charged to the statement of profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable
amount but such that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in prior years.
A reversal of impairment loss is recognised in the profit or loss immediately.
Inventories
Inventories are valued at the lower of cost or net realisable value. Net realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
• Spare parts and consumables – Purchase costs on a first in, first out basis;
• Ore stockpiles, work in progress and finished gold – Dependent on the current stage in the production cycle, the cost will reflect cost
of direct materials, power, labour and a proportion of overhead, to bring the product to its current state.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the statement
of profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the reporting date.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
68 | AltynGold plc Annual Report 2024
4. Accounting policies continued
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for by using the balance
sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be
utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the
initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit
nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries
and associates, and interests in joint ventures except where the Company is able to control the reversal of the temporary difference and it
is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates
that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
income statement, except when it relates to items charged to other comprehensive income or credited directly to equity, in which case
the deferred tax is also dealt within equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group
intends to settle its current tax assets and liabilities on a net basis.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the
reporting date in the countries where the group operates and generates taxable income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred income tax is determined
using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Financial Instruments
Financial assets and financial liabilities are recognised in the consolidated statement of financial position when the Group becomes party
to the contractual provisions of the instrument.
Trade and other receivables
Trade and other receivables are recognised initially at their transaction price in accordance with IFRS 9 and are subsequently measured
at amortised cost. The Group applies the simplified approach to providing for expected credit losses (ECL) prescribed by IFRS 9, which
permits the use of the lifetime expected loss provision for all trade receivables measured on a collection basis. Expected credit losses
are assessed on a forward looking basis, using information such as the expected future currency, commodity and inflation rates. The loss
allowance is measured at initial recognition and throughout its life at an amount equal to lifetime ECL. Any impairment is recognised in the
income statement. Detail sin relation to the ECL provision are given in note 16.
If there is no reasonable expectation of recovery after assessing the ability of the debtor to repay the amount due it will be written off but
further legal action may be taken to recover the amount due subject to a cost benefit assessment of the amounts involved. The Company
will deem an amount to go into default if the terms of the contractual payment are breached and the subsequent follow up to remedy the
breach and agree a revised repayment schedule is unsatisfactory.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits, and other short-term highly liquid investments with original
maturities of less than three months and which are readily convertible to a known amount of cash and are subject to an insignificant risk of
change in value, for the purposes of statement of cash flow.
Cash retained for the purposes of restoration of the land after the end of the licence period is not included within cash resources and is
included in a separate fund see note 21.
Investments
Investment in subsidiaries are included at cost less impairment.
Loans and receivables from subsidiaries
Loans to subsidiary undertakings are subject to IFRS 9’s expected credit loss model. The intercompany loans are repayable on deferred
basis, and a three year notice of repayment can only be given after full repayment of the Bank Center Credit loan, which is repayable in
October 2026. The earliest the loans can be repaid is October 2029.
The intercompany loans at present are considered to be in stage 2, and have been assessed as indicated in the IFRS 9 ECL model, with
extensions being made on the repayment terms of the original loans that were given. As the loans are considered to be in stage 2 a lifetime
ECL is determined using all relevant, reasonable and supportable historical, current and forward-looking information that provides
evidence about the risk that the subsidiaries will default on the loan and the amount of losses that would arise as a result of that default.
Financial liabilities
The Group classifies its financial liabilities into one of two categories discussed below, depending on the purpose for which the liability
was acquired.
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 69
4. Accounting policies continued
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are carried in the consolidated statement of financial position at fair value with
changes in fair value recognised in the consolidated income statement. The Group does not have any liabilities held for trading nor has it
designated any other financial liabilities as being at fair value through profit or loss.
Other financial liabilities
Other financial liabilities comprise borrowings, trade payables and other short-term monetary liabilities. These are initially measured at fair
value and subsequently recognised at amortised cost using effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the Group’s obligations are discharged, cancelled, or they expire.
Fair value measurement hierarchy
The Group classifies its financial assets and financial liabilities measured at fair value using a fair value hierarchy that reflects the
significance of the inputs used in making the fair value measurement. The fair value hierarchy has the following levels:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices) (level 2);
• inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3);
• the level in the fair value hierarchy within the financial asset or financial liability is determined on the basis of the lowest level input that is
significant to the fair value measurement.
Compound instruments
The component parts of compound instruments (convertible notes and loans with detachable warrants) issued by the Company are
classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of
cash for a fixed number of the Company’s own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non convertible
instruments. This amount is subsequently recorded as a liability on an amortised cost basis using the effective interest method until
extinguished upon conversion or at the instrument’s maturity date.
The conversion option or detachable warrant classified as equity is determined by deducting the amount of the liability component
from the fair value of the compound instrument as a whole. This is recognised and included in equity, net of income tax effects, and is not
subsequently re-measured. Gains or losses are recognised in profit or loss upon conversion or expiration of the conversion option.
Transaction costs that relate to the issue of the compound instruments are allocated to the liability and equity components in proportion
to the fair value of the debt and equity components. Transaction costs relating to the equity component are recognised directly in equity.
Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortised over
the lives of the compound instruments using the effective interest method.
The Company currently has no compound instruments.
Share capital
Financial instruments used by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability
or financial asset. The Company’s ordinary shares are classified as equity instruments and are recorded as proceeds received, net of
direct issue costs.
Provision for commitments and contingencies
Provisions are recognised when the Company has a present obligation at the reporting date, which occurred as a result of a past event,
and it is probable that the Company will be required to settle that obligation and the amount of the obligation can be reliably estimated.
Possible obligations that are less than probable, and commitments to make purchases and incur expenditure in future periods, are not
recognised as provisions but are disclosed as commitments and contingencies.
Provision for site rehabilitation and decommissioning costs and the associated asset is recorded at the present value of the expected
expenditure required to settle the Company’s future obligations. Actual outcomes may vary. Details regarding the provision for site
rehabilitation and decommissioning costs are set out in note 21 to the financial statements.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
70 | AltynGold plc Annual Report 2024
4. Accounting policies continued
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Company’s accounting policies, the Directors have made judgements and estimates that may have a significant
effect on the amount recognised in the financial statements. These include:
• carrying value of property, plant and equipment, including estimates made in respect of reserves and resources, discount rate and
future gold prices (note 15):
Costs capitalised as mining assets in property, plant and equipment, and intangible assets are assessed for impairment when
circumstances suggest that the carrying value may exceed its recoverable value.
Full impairment testing has not been carried out, as no indicators of impairment have been identified. However as part of the
assessment the carrying value of the assets at the reporting date were compared with the expected discounted cash flows. For the
discounted cash flows to be calculated, management has used a production profile based on its best estimates. These are based on
actual results and projected budgets, known gold reserves of the assets and a range of assumptions, including an estimated price of
gold and a discount rate which, taking into account other assumptions used in the calculation, management considers to be reflective
of the risks. This assessment involves judgement as to (i) the likely commerciality of the asset, (ii) proven, probable reserves which are
estimated, (iii) future revenues and estimated development costs pertaining to the asset, (iv) the discount rate to be applied for the
purposes of deriving a recoverable value.
Three CGU’s were identified and the following principal assumptions were used in the preparation of the models. The price of gold is
based on modelling from information from Bloomberg with a price of gold ranging from US$2,563oz down to US$2,000 in the long
term, an exchange rate of 523 KZT to 1 US Dollar, recovery rate of 84%, a processing cost of US$70t, and corporate and mineral taxes
of 27.5%. The forecasts have been flexed to account for changes in costs and sales prices ranging up to 18% with no impact on the
viability of the CGU’s.
• recoverability of inventories (note 17):
The recoverability of inventories is dependent upon the future production of the Company, and future prices achievable, which
will determine if any provision is required against inventories. The directors have assessed the impairment indicators, and made
judgements in reflection to future prices achievable and production and make impairments as appropriate.
• carrying value of provisions (note 21):
Estimates of the cost of future decommissioning and restoration of production facilities are based on current legal and constructive
requirements, technology and price levels, while estimates of when decommissioning will occur depend on assumptions made
regarding the economic life of fields which in turn depend on such factors as gold prices, decommissioning costs, discount rates and
inflation rates. The management reviewed the estimation process and the basis for the principal assumptions underlying the cost
estimates, noting in particular the reasons for any major changes in estimates as compared with the previous year. The Company was
satisfied that the approach applied was fair and reasonable. The Company was also satisfied that the discount and inflation rates used
to calculate the provision were appropriate.
• recognition of deferred taxation assets (note 11):
Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an
assessment of when those deferred tax assets are likely to reverse, and a judgement as to whether or not there will be sufficient taxable
profits available to offset the tax assets when they do reverse. This requires assumptions regarding future profitability and is therefore
inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the level
of deferred tax assets recognised that can result in a charge or credit in the period in which the change occurs;
• carrying value of intangible assets (note 14):
The carrying value for intangible exploration and evaluation assets, represent the costs of active exploration projects the
commerciality of which is unevaluated until reserves can be appraised. Where properties are appraised to have no commercial
value, the associated costs are treated as an impairment loss in the period in which the determination is made. The recoverability
of intangible exploration assets is assessed by comparing the carrying value to estimates of the present value of projects where
indicators of impairment have been identified on an asset. The present values of intangible exploration assets are inherently
judgemental. Exploration and evaluation costs will be written off to the income statement unless commercial reserves are established
or the determination process is not completed and there are no indications of impairment. The outcome of ongoing exploration, and
therefore whether the carrying value of exploration and evaluation assets will ultimately be recovered, is inherently uncertain.
There were no impairment indicators identified, therefore a full impairment test was not carried out.
• Provision for taxation (note 11 and 18)
Management make judgements in relation to the recognition of various taxes payable by the Group and VAT recoverability for which
the recoverability and timing of recovery is assessed. The Group operates in jurisdictions which necessarily require judgement to be
applied when assessing the applicable tax treatment for transactions and the Group obtains professional advice where appropriate to
ensure compliance with applicable legislation.
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 71
4. Accounting policies continued
• Estimation of credit losses (note 16)
Management make judgements in relation to the future recoverability of receivables, in relation to the parent Company there are
substantial loans to the subsidiaries. The management has used the guidance as noted in IFRS9 to make judgements in relation to the
future risk of default, the ability of the Company to achieve its production targets and achieve a sufficient level of profits to repay the
loans, inherent in this model are a number of judgements. The management has estimated that a provision was required of US$23.6m
at the year end. (2023 US$22m); and
• Extension of licence (note 14 and 15)
The exploration licence at Teren Sai runs to March 2026 and the licence for the deposit at Sekisovskoye runs to 2029 Inherent in this
process for the application for renewal and beyond are judgements of determining if the conditions can be satisfied for future licence
extensions.
5. Revenue
The analysis of the Group’s revenue for the year from continuing operations is as follows:
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Sale of gold and silver | 94,476 | 63,748 |
| Other sales | 2,046 | 686 |
| 96,522 | 64,434 |
Included in revenues from sale of gold and silver are revenues of US$94,476,000 (2023: US$63,748,000) which arose from sales of
precious metals to one customer based in Kazakhstan. Other sales amounted to US$2,046,000 (2023: US$686,000) and related to lease
and rental income.
6. Segmental information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments and
making strategic decision, has been identified as the Board of Directors.
The Board of Directors consider there to be two operating segments, the exploration and development of mineral resources at
Sekisovskoye and at Teren Sai, both based in one geographical segment, being Kazakhstan. All sales were made in Kazakhstan from the
mine at Sekisovskoye.
However in relation to Teren Sai as there is discrete financial information available and the assets account for greater than 10% of the
combined total assets of all segments it is considered to be a separate operating segment.
Teren Sai is an exploration asset, details of the carrying value of the asset are shown in note 14. There is currently no turnover or other
associated costs in relation to this asset.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
72 | AltynGold plc Annual Report 2024
7. Staff number and costs
| Group | ||
| The aggregate remuneration comprised: | ||
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Directors’ emoluments | 311 | 301 |
| Employee wages and salaries | 5,192 | 4,325 |
| Employer social tax and national insurance | 1,682 | 1,160 |
| 7,185 | 5,786 | |
| The average number of employees (including Directors) was: | ||
| 2024 | 2023 | |
| Production | 443 | 384 |
| Administration | 87 | 93 |
| 530 | 477 | |
| Company | ||
| The average number of employees (including Directors) was: | ||
| 2024 | 2023 | |
| Administration | ||
| 7 | 7 |
Further details in relation to Directors remuneration and wages and salaries is given in the Remuneration Report.
The aggregate remuneration comprised:
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Directors’ emoluments | 311 | 301 |
| Employer social tax and national insurance | 22 | 22 |
| 333 | 323 |
8. Impairments
| 2024 | 2023 | |
| US$000 | US$000 | |
| Impairments (reversed)/provided - ore/inventories | (121) | 288 |
| Impairment provided - other receivables and prepayments | 238 | 151 |
| 117 | 439 |
9. Finance income and costs
| 2024 | ||
| $ 000 | ||
| 2023 | ||
| $ 000 | ||
| Finance income | ||
| Interest on bank deposits | 358 | – |
| Finance costs | ||
| Foreign exchange (loss)/gain | (6,373) | 252 |
| Unwinding of discount on provisions | (506) | (472) |
| Interest expense | (5,063) | (3,590) |
| Unwinding of discount other financial liabilities | (454) | (221) |
| Total finance costs | (12,396) | (4,031) |
| Net finance costs | (12,038) | (4,031) |
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 73
10. Profit before taxation
| The profit on ordinary activities before taxation is stated after (crediting)/charging | ||
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Staff costs (note 7) | 7,185 | 5,786 |
| Depreciation and amortisation of assets | 9,043 | 6,990 |
| Cost of inventories recognised as an expense | 10,457 | 13,624 |
| Provision of impairment of receivables and inventory | (121) | 288 |
| Provision of impairment receivables | 238 | 151 |
| Irrecoverable VAT written off | 284 | 46 |
| Penalties and fines | 747 | 756 |
| Fees payable to the auditors - other services | 26 | – |
| Fees payable to the Company’s auditors for the audit of the Company | 28 | 55 |
| Fees payable to the Company’s auditors for the audit of the Group financial statements | 171 | 192 |
11. Income tax
Tax charged in the income statement
| 2024 | ||
| $ 000 | ||
| 2023 | ||
| $ 000 | ||
| Current taxation | ||
| Income tax | 1,981 | – |
| Deferred taxation | ||
| Arising from origination and reversal of temporary differences | 2,131 | 546 |
| Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods | (180) | – |
| Total deferred taxation | 1,951 | 546 |
| Tax expense in the income statement | 3,932 | 546 |
The tax on profit before tax for the year is lower than the standard rate of tax in Kazakhstan of 20%, (2023 - lower than the standard rate of
tax in Kazakhstan at 20%).
The differences are reconciled below:
| 2024 | ||
| $ 000 | ||
| 2023 | ||
| $ 000 | ||
| Profit before tax | 30,355 | 11,885 |
| Corporation tax at standard rate | 6,070 | 2,377 |
| Effect of different UK tax rates on some earnings | - | (336) |
| Effect of expenses not deductible in determining taxable profit | 1,896 | 1,326 |
| Tax decrease from utilisation of tax losses | (257) | – |
| Current year tax losses and other temporary differences not recognised | 337 | 817 |
| Foreign exchange allowable losses in subsidiary | (4,114) | (3,638) |
| Total tax charge | 3,932 | 546 |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
74 | AltynGold plc Annual Report 2024
11. Income tax continued
Deferred tax
Group
Deferred tax assets and liabilities are offset were they arise within the subsidiaries in Kazakhstan. The Group has recognised the deferred
tax asset only to the extent that it is probable that the taxable profit will be available against which the deductible temporary difference
can be utilised. The future tax profits are expected to derive from the gold mining operations in Kazakhstan. The tax losses arising in the
prior periods will reduce the Company’s and its subsidiaries’ future tax liabilities. Deferred tax assets are recognised as the Directors
believe that sufficient taxable profits will be made against which the carried forward losses can be utilised.
Unutilised taxation losses arising in Kazakhstan of US$2.5m (2023: US$14.5m) are available to carry forward for a maximum of 10 years. It
is estimated that the tax losses available to carry forward will be utilised by 2025. Unutilised tax losses arising in the UK amount to US7.8m
(2023: US$6.2m).
Unrecognised deferred taxation assets
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Taxation losses | 1,956 | 1,808 |
The unrecognised taxable losses above arise in relation to the parent Company, this amount has been carried forward as the Directors are
uncertain if there will be sufficient taxable profits in the foreseeable future to offset the losses incurred.
| Taxation | ||||
| losses | ||||
| US$000 | ||||
| Accelerated | ||||
| taxation | ||||
| depreciation | ||||
| US$000 | ||||
| Other timing | ||||
| differences | ||||
| US$000 | ||||
| Total | ||||
| US$000 | ||||
| 1 January 2023 | 6,925 | (53) | (820) | 6,052 |
| Debit to income | ||||
| – | ||||
| (517) | (29) | (546) | ||
| Debit to other comprehensive income | (4,075) | |||
| – | – | |||
| (4,075) | ||||
| Currency translation | 54 | (49) | (17) | (12) |
| 31 December 2023 and 1 January 2024 | 2,904 | (619) | (866) | 1,419 |
| Debit to income | 10 | (677) | (1,464) | (2,131) |
| Currency translation | (389) | 152 | 274 | 37 |
| 31 December 2024 | 2,525 | (1,144) | (2,056) | (675) |
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 75
12. Earnings per ordinary share
The calculation of basic and diluted earnings per share from continuing operations is based upon the retained profit from continuing
operations for the financial year of US$26.4m (2023: US$11.3m).
The weighted average number of ordinary shares for calculating the basic earnings per share in 2024 and 2023 is shown below.
| 2024 | ||
| No. | ||
| 2023 | ||
| No. | ||
| Basic | 27,332,934 | 27,332,934 |
| Diluted | 27,332,934 | 27,332,934 |
13. Adjusted EBITDA
The Directors of the Company have presented the performance measure adjusted EBITDA (earnings before interest, tax, depreciation
and other non-operating expenses) as they monitor this performance measure at a consolidated level, and the Directors believe it is
relevant to measuring the Groups performance.
Adjusted EBITDA is not a defined performance measure in IFRS. The Group’s definition of adjusted EBITDA may not be comparable with
similarly titled performance measures as disclosed by other entities.
| 2024 | 2023 | |
| Reconciliation of adjusted EBITDA to profit after tax | US$000 | US$000 |
| Profit after tax | 26,423 | 11,339 |
| Income tax expense | 3,932 | 546 |
| Finance income | (358) | - |
| Finance expense | 6,023 | 4,283 |
| Foreign exchange | 6,373 | (252) |
| Depreciation and amortisation | 9,044 | 6,989 |
| Fair value adjustment on loan | (556) | (630) |
| Adjusted EBITDA | 50,881 | 22,275 |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
76 | AltynGold plc Annual Report 2024
14. Intangible assets
| Group | ||||
| Teren Sai | ||||
| geological data | ||||
| $ 000 | ||||
| Teren Sai | ||||
| Exploration and | ||||
| evaluation costs | ||||
| $ 000 | ||||
| Other intangible | ||||
| assets | ||||
| $ 000 | ||||
| Total | ||||
| $ 000 | ||||
| Cost or valuation | ||||
| At 1 January 2023 | 8,212 | 9,952 | - | 18,164 |
| Additions | - | 7 | 759 | 766 |
| Amortisation capitalised | - | 546 | - | 546 |
| Currency translation | 146 | 179 | 61 | 386 |
| At 31 December 2023 | 8,358 | 10,684 | 820 | 19,862 |
| At 1 January 2024 | 8,358 | 10,684 | 820 | 19,862 |
| Additions | - | 3,977 | - | 3,977 |
| Amortisation capitalised | - | 555 | - | 555 |
| Currency translation | (1,101) | (2,374) | (108) | (3,583) |
| At 31 December 2024 | 7,257 | 12,842 | 712 | 20,811 |
| Amortisation | ||||
| At 1 January 2023 | 5,320 | 146 | - | 5,466 |
| Amortisation charge | 546 | - | 75 | 621 |
| Currency translation | 97 | - | 17 | 114 |
| At 31 December 2023 | 5,963 | 146 | 92 | 6,201 |
| At 1 January 2024 | 5,963 | 146 | 92 | 6,201 |
| Amortisation charge | 555 | - | 79 | 634 |
| Currency translation | (865) | (16) | (23) | (904) |
| At 31 December 2024 | 5,653 | 130 | 148 | 5,931 |
| Carrying amount | ||||
| At 31 December 2024 | 1,604 | 12,712 | 564 | 14,880 |
| At 31 December 2023 | 2,395 | 10,538 | 728 | 13,661 |
| At 1 January 2023 | 2,892 | 9,806 | - | 12,698 |
The intangible assets relate to the historic geological information pertaining to the Teren Sai ore fields. The ore fields are located in close
proximity to the current mining operations of Sekisovskoye. The Company obtained a licence for exploration and evaluation on the site
in May 2016 from the Kazakh authorities, the addendum to the licence was extended for a two year period in March 2024. The Company
is currently finalising the exploration in an area of Teren Sai targeting two prospective targets, with the intention to preparing the site for
production during 2025.
The value of the geological data purchased is in the opinion of the Directors the value that would have been incurred if the drilling had
been undertaken by a third party (or internally). The Company has continued to develop the site with a CPR completed in 2019 on one of
the fifteen target zones area 2, which includes 3 potential targets, and further exploration works in the other areas. Full details are given in
the mineral resources statement included as part of the Annual Report, on page 27. The directors consider that no impairment is required
taking into account the CPR results, exploration and planned production in the future. The write off of the geological data is being
made over the exploration licence term, the costs amortised are capitalised as part of the exploration asset in line with the Company’s
accounting policy.
The management have concluded that there are no impairment indicators.
The bank loan from Bank Center Credit is secured in the assets of the Group see note 22.
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 77
15. Property, plant and equipment
| Group | ||||||
| Mining | ||||||
| properties | ||||||
| $ 000 | ||||||
| Freehold | ||||||
| Land and | ||||||
| buildings | ||||||
| $ 000 | ||||||
| Equipment, | ||||||
| fixtures | ||||||
| and fittings | ||||||
| $ 000 | ||||||
| Plant, | ||||||
| machinery and | ||||||
| buildings | ||||||
| $ 000 | ||||||
| Assets under | ||||||
| construction | ||||||
| $ 000 | ||||||
| Total | ||||||
| $ 000 | ||||||
| Cost or valuation | ||||||
| At 1 January 2023 | 18,361 | 27,790 | 12,688 | 9,074 | 2,279 | 70,192 |
| Additions | 4,971 | 349 | 7,312 | 10,708 | 15,818 | 39,158 |
| Disposals | - | (6) | (592) | (17) | - | (615) |
| Transfers | - | 5,586 | - | - | (5,586) | - |
| Transfer from inventories | - | - | - | - | 682 | 682 |
| Currency translation | 487 | 516 | 178 | 163 | 19 | 1,363 |
| At 31 December 2023 | 23,819 | 34,235 | 19,586 | 19,928 | 13,212 | 110,780 |
| At 1 January 2024 | 23,819 | 34,235 | 19,586 | 19,928 | 13,212 | 110,780 |
| Additions | 7,351 | 183 | 6,255 | 540 | 9,698 | 24,027 |
| Disposals | - | (2,566) | (489) | (1,830) | (77) | (4,962) |
| Transfers | - | 10,794 | 4,553 | 9 | (15,356) | - |
| Transfer from inventories | - | - | - | - | (1,126) | (1,126) |
| Currency translation | (5,049) | (5,380) | (3,497) | (2,602) | (1,032) | (17,560) |
| At 31 December 2024 | 26,121 | 37,266 | 26,408 | 16,045 | 5,319 | 111,159 |
| Depreciation | ||||||
| At 1 January 2023 | 3,923 | |||||
| 14,461 | 8,9 | 44 | 5,889 | - | 33,217 | |
| Charge for year | 1,452 | 2,474 | 1,250 | 1,739 | - | 6,915 |
| Eliminated on disposal | - | (6) | (555) | (41) | - | (602) |
| Currency translation | 125 | 280 | 152 | 100 | - | 657 |
| Transfers | - | - | - | - | - | - |
| At 31 December 2023 | 5,500 | 17,209 | 9,791 | 7,687 | - | 40,187 |
| At 1 January 2024 | 5,500 | 17,209 | 9,791 | 7,687 | - | 40,187 |
| Charge for the year | 2,133 | 3,359 | 1,467 | 2,005 | - | 8,964 |
| Eliminated on disposal | - | (2,566) | (487) | (1,830) | - | (4,883) |
| Currency translation | (975) | (2,349) | (1,391) | (1,032) | - | (5,747) |
| Transfers | - | - | - | - | - | - |
| At 31 December 2024 | 6,658 | 15,653 | 9,380 | 6,830 | - | 38,521 |
| Carrying amount | ||||||
| At 31 December 2024 | 19,463 | 21,613 | 17,028 | 9,215 | 5,319 | 72,638 |
| At 31 December 2023 | 18,319 | 17,026 | 9,795 | 12,241 | 13,212 | 70,593 |
| At 1 January 2023 | 14,438 | 13,329 | 3,744 | 3,185 | 2,279 | 36,975 |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
78 | AltynGold plc Annual Report 2024
15. Property, plant and equipment continued
Capitalised cost of mining property are written off over the life of the licence from commencement of production on a unit of production
basis. This basis uses the ratio of production in the period compared to the mineral reserves at the end of the period. Mineral reserves
estimates are based on a number of underlying assumptions, which are inherently uncertain. Mineral reserves estimates take into
consideration estimates by independent geological consultants. However, the amount of mineral that will ultimately be recovered cannot
be known until the end of the life of the mine.
Any changes in reserve estimates are, for depreciation purposes, treated on a prospective basis. The recovery of the capitalised cost of
the Group’s property, plant and equipment is dependent on the development of the underground mine.
The Directors are required to consider whether the non-current assets comprising, mineral properties, plant and equipment have
suffered any impairment. The recoverable amount is determined based on value in use calculations. The use of this method requires the
estimation of future cash flows and the choice of a discount rate in order to calculate the present value of the cash flows. The directors
considered entity specific factors such as available finance, cost of production, grades achievable, and sales price. The directors have
concluded that no adjustment is required for impairment.
The bank loan from Bank Center Credit is secured on the assets of the Group see note 22.
The additions to tangible assets in the year includes an amount of US$nil (2023: US$553,000) in relation to capitalised interest.
16. Investments
Summary of the company investments
| Name | Percentage held | |
| Country of registration | ||
| & operation | ||
| Directly held | ||
| AltynGold Holdings Limited | 100 | British Virgin Islands |
| TOO GMK Altyn MM | 100 | Kazakhstan |
| Indirectly held | ||
| DTOO Gornorudnoe Predpriatie Baurgold | 100 | Kazakhstan |
| AltynGold SPC Ltd | 100 | Kazakhstan |
The principal activity of the companies relates to gold mining exploration and production with the exception of AltynGold Holdings
Limited which is an investment holding Company and is dormant, and AltynGold SPC Ltd which is also dormant.
The registered address of AltynGold Holdings Limited is Palm Grove House, P O Box 438,Road Town, Tortola, British Virgin Islands.
The registered office address for the companies based in Kazakhstan is Building 19, Amangeldi Imanov Street, Baikonyr district, Astana.
| Shares | Investment | Subsidiaries loans | Total | |
| US$000 | US$000 | US$000 | US$000 | |
| 1 January 2023 | 225 | 47,907 | 72,996 | 121,128 |
| Payment of loans to subsidiary | - | - | 3,636 | 3,636 |
| Management charges and interest | - | - | 5,672 | 5,672 |
| Impairment charge - IFRS 9 | - | - | (1,337) | (1,337) |
| 31 December 2023 | 225 | 47,907 | 80,967 | 129,099 |
| Payment of loans to subsidiary | - | - | 2,500 | 2,500 |
| Management charges and interest | - | - | 5,954 | 5,954 |
| Impairment reversal - IFRS 9 | - | - | 3,240 | 3,240 |
| 31 December 2024 | 225 | 47,907 | 92,661 | 140,793 |
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 79
16. Investments continued
| Movement of expected credit loss | |
| Total | |
| US$000 | |
| 1 January 2023 | 22,219 |
| Impairment - IFRS9 | 1,337 |
| 31 December 2023 | 23,556 |
| Reclassification from loans | (3,957) |
| Impairment reversal - IFRS9 | (3,240) |
| 31 December 2024 | 16,359 |
The investments together with the loans which are denominated in US Dollars represent the 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 assess under the expected credit loss (ECL) model as required by IFRS 9.
The loans to subsidiaries are charged at an interest rates ranging from interest free to a range of 5-7%. The intercompany loans are
repayable at the earliest in October 2029 as the parent Company needs to give a three year formal request for repayment after the Bank
Center Credit loan has been repaid which is due for payment in October 2026.
The Company has applied IFRS 9 in the current period and estimates that there is a reversal of the charge to the ECL calculated of
US$3.2m (2023: charge US$1.34m) on the receivables from the subsidiaries. The total ECL as at 31 December 2023 is US$16.4m (2023:
US$23.6m).
The intercompany loans at present are considered to be in stage 2, and have been assessed as indicated in the IFRS 9 ECL model. As the
loans are considered to be in stage 2 a lifetime ECL is determined using all relevant, reasonable and supportable historical, current and
forward-looking information that provides evidence about the risk that the subsidiaries will default on the loan and the amount of losses
that would arise as a result of that default. The Company applied a spread of sensitivities ranging from full recovery estimated at 15%, to a
recovery of 80% of the loans at an 80% probability, based on a weighted average of the probabilities the Company estimated a total ECL
to be provided of US$16.4m. If the probability of recoverability worsened by 10% the ECL would increase by US$4.3m.
The impairment is recognised in the income statement within administrative expenses.
17. Inventories
| Group | ||
| 2024 | ||
| $ 000 | ||
| 2023 | ||
| $ 000 | ||
| Ore | 18,915 | 9,791 |
| Raw materials and consumables | 4,323 | 4,686 |
| Work in progress | 263 | 708 |
| Finished goods and goods for resale | 2 | 2,279 |
| 23,503 | 17 | ,464 |
The value of inventories above is stated net of a provision for low grade ore and spare parts of US$1.3m (2023: US$1.6m). The Movement in
provisions is due to fluctuations in the exchange rates.
The movement in inventories recognised as an expense in the income statement is US$10.5m (2023: US$13.6m) see note 10.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
80 | AltynGold plc Annual Report 2024
18. Trade and other receivables
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Non-current | ||||
| VAT recoverable | 7,469 | 3,714 | - | - |
| Prepayments - advances for equipment | 7,200 | 14,640 | - | - |
| 14,669 | 18,354 | - | - |
| Group | ||||
| 2024 | ||||
| $000 | ||||
| Group | ||||
| 2023 | ||||
| $000 | ||||
| Company | ||||
| 2024 | ||||
| $000 | ||||
| Company | ||||
| 2023 | ||||
| $000 | ||||
| Current | ||||
| Trade receivables | 4,011 | 1,973 | - | - |
| Provision for impairment of trade receivables | ||||
| (428) | (320) | - | - | |
| Net trade receivables | ||||
| 3,583 | 1,653 | - | - | |
| Other receivables | ||||
| 16,847 | 16,812 | 39 | 14 | |
| 20,430 | 18,465 | 39 | 14 | |
| Total current trade and other receivables | 20,430 | 18,465 | 39 | 14 |
The trade receivables are stated at full carrying value and their ageing is less than 30 days old. The Directors consider that the carrying
value of trade receivables approximates to their fair value. Included within trade receivables are amounts due from Altyn Group Qazaqstan
of US$2,909,465 (2023: US$: 1,089,000), see note 20.
Prepayments recoverable in more than one year relate to amounts prepaid in advance for equipment to be delivered in 2025. Value
Added Tax recoverable in more than one year is expected to be recovered by offset against VAT payable in future periods.
19. Trade and other payables
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Non-current | ||||
| VAT payable | ||||
| - | ||||
| 114 | ||||
| - | ||||
| - | ||||
| Other taxes payable | - | 133 | - | - |
| - | 247 | - | - |
| Group | ||||
| 2024 | ||||
| $000 | ||||
| Group | ||||
| 2023 | ||||
| $000 | ||||
| Company | ||||
| 2024 | ||||
| $000 | ||||
| Company | ||||
| 2023 | ||||
| $000 | ||||
| Current | ||||
| Trade payables | ||||
| 1,900 | ||||
| 1,890 | ||||
| 84 | ||||
| 10 | ||||
| Other taxes payable | 3,971 | 6,164 | 7 | 16 |
| Other payables | 1,597 | 1,604 | 1,814 | 1,185 |
| 7,468 | 9,658 | 1,905 | 1,211 |
Trade creditors and accruals principally comprise amounts outstanding for trade purchases of goods and services. The majority of the
trade creditors relate to the Company’s trading subsidiaries in Kazakhstan. For most suppliers, interest is not charged on trade payables.
The Company regularly reviews all outstanding payables to ensure they are paid within the appropriate time frame. VAT payable relates to
amounts due and payable and scheduled for payment to the Kazakh tax authorities.
The Directors consider that the carrying amount of trade payables approximates to their fair value.
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 81
20. Related party transactions
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Company, is set out below in aggregate for each of
the categories specified in IAS 24 - “Related Party Disclosures”. The total amount remaining unpaid with respect to remuneration of key
management personnel amounted to US$63,000 in the current year (2023: US$49,000). Further information about the remuneration of
the individual directors is set out in the audited section of the report on directors’ remuneration on page 46.
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Short term employee benefits | 311 | 301 | 311 | 301 |
| Social security costs | 22 | 22 | 22 | 22 |
| 333 | 323 | 333 | 323 |
Related party transactions
The transactions between the Company and the subsidiaries are disclosed in Note 16. These relate to management and interest charges
on services/loans from the parent to the subsidiaries in Kazakhstan.
During the year the following transactions were carried out with companies controlled by the Assaubayev family:
• Asia Mining Group (AMG), there were no transaction in the year. At the year end an amount of US$69,127 was due from AMG (2023:
US$79,600).
• Amounts due from Amrita Investments Limited US$11,750 (US$644). This is repayable on demand.
• Sales of services to Altyn Group Qazaqstan LLP of US$1,911,800 (2023:US$510,000) in the year. US$2,909,465 (2023: US$1,089,000)
was outstanding at 31 December 2024.
In addition to the above:
• US$Nil (2023 US$1,000) is due to Bolat Assaubayev a family member.
• An amount of US$31,985 was charged to the Company in relation to accommodation costs whilst attending meetings in London.
21. Provisions
| Group | |||
| Abandonment & | |||
| restoration | |||
| US$000 | |||
| Holiday pay | |||
| US$000 | |||
| Total | |||
| US$000 | |||
| I January 2023 | 5,517 | 263 | 5,780 |
| Change in estimate of provision | - | 250 | 250 |
| Unwinding of discount | 481 | - | 481 |
| Paid during the year | - | (193) | (193) |
| Currency translation adjustment | 91 | 4 | 95 |
| 31 December 2023 & 1 January 2024 | 6,089 | 324 | 6,413 |
| Change in estimate of provision | 320 | 320 | |
| Unwinding of discount | 507 | - | 507 |
| Paid during the year | - | (235) | (235) |
| Currency translation adjustment | (863) | (51) | (914) |
| 31 December 2024 | 5,733 | 358 | 6,091 |
| 31 December 2024 | |||
| Current | - | 358 | 358 |
| Non-current | 5,733 | - | 5,733 |
| 5,733 | 358 | 6,091 | |
| 31 December 2023 | |||
| Current | - | 324 | 324 |
| Non-current | 6,089 | - | 6,089 |
| 6,089 | 324 | 6,413 |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
82 | AltynGold plc Annual Report 2024
21. Provisions continued
Abandonment and restoration costs
In accordance with the provisions of the subsoil use contract (the “Contract”), DTOO GRP Baurgold is liable for site restoration costs
upon completion of production activities. It is not possible to predict accurately the amount which might ultimately be payable for
site restoration as it includes assumptions such as inflation in Kazakhstan over the life of the Contract which are inherently uncertain. An
estimate of the future cost of restoration has been discounted and a provision recognised. The discounted amount for cost of restoration
has been capitalised within mining properties as a tangible fixed asset (note 15) and will be amortised using the unit of production method
over the life of the mine.
The provision was assessed using the following principal assumptions, the provision will be reassessed in 2029 or if there are significant
changes from the assumptions made:
• External reports were commissioned to identify the principal costs of rehabilitation, to form the basis of the forecasts which were
compared to previous forecasts.
• An inflation rate of 6.96% was used, the inflation in Kazakhstan is currently averaging 8%-9%, and the longer term projection is inflation
to move down to 5%.
• A discount rate of 8.44% was used, being the Kazakh government bond rates payable in 2031.
In accordance with the subsoil use agreement, DTOO GRP Baurgold has established a cash fund to pay for the cost of restoration. The
cash fund is maintained in a separate bank account in the name of DTOO GRP Baurgold. DTOO GRP Baurgold is required to contribute
each year an amount equal to 1% of its operating expenses, (being the cost of sales of DTOO GRP Baurgold in extracting the ore) to this
fund. Any transfers from the bank account require the authorisation of the Government of Kazakhstan. This fund will be used to pay for the
costs of restoration as and when they become due. If the funds in the account are insufficient to pay for the costs, DTOO GRP Baurgold
will be required to pay any deficit. If there are funds surplus to those required for restoration these will be returned to DTOO GRP Baurgold.
At the year end the amount in the fund amounted to US$93,000 (2023: US$33,000). The Company has an obligation to contribute to
the restricted cash fund as stipulated in its licence, and has been in communication with the relevant authorities to restore the fund to
the required level in future periods. The failure to comply in the year with certain administrative requirements of the licence including the
maintenance of the cash fund may result in a penalty estimated to be less than US$2,000.
22. Loans and borrowings
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Current loans and borrowings | ||||
| Bonds | ||||
| 9,912 | ||||
| - | ||||
| 9,912 | ||||
| - | ||||
| Bank loans | 19,288 | 18,130 | - | - |
| Related party loans (see note 20) | ||||
| 1 | ||||
| – | ||||
| 2 | ||||
| - | ||||
| Other borrowings | ||||
| - | ||||
| - | ||||
| - | ||||
| - | ||||
| Total current loans and borrowings | 29,201 | 18,132 | 9,912 | - |
| Due one - two years | ||||
| Bond | - | 9,582 | - | 9,582 |
| Bank loans | 11,722 | 12,523 | - | - |
| 11,722 | 22,105 | - | 9,582 | |
| Due two - five years | ||||
| Bond | 9,569 | - | 9,569 | - |
| Bank loans | 9,654 | 18,254 | - | - |
| Total non-current loans and borrowings | 30,945 | 40,359 | 9,569 | 9,582 |
| Total borrowings | 60,146 | 58,491 | 19,481 | 9,582 |
Bond Listed on Astana International Exchange
Bonds to the value of US$10m at a coupon rate of 10.5% which were raised in March 2023, were repaid in March 2025. In July 2024 a further
tranche of bonds of US$10m at a coupon rate of 11.25% were raised, these are repayable in July 2027. In addition after the year end in April
2025 a further bond issue was made of US$10m on AIX at a coupon rate of 9.75%, see note 27.
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 83
22. Loans and borrowings continued
Bank loans
In September 2019 the Company agreed a facility with JSC Bank Center Credit (BCC) for an amount of US$17m. The bank loan is repayable
in instalments and bears interest at 6%-7%, with the final instalment due in 2026. At the year end US$3.9m was outstanding.
In December 2020 the Company agreed a facility with BCC of US$5.5m (2.3bn Tenge), The loan is denominated in Kazakh Tenge with
interest at 15.5% repayable in instalments with the final instalment due in 2025, at the year end 545,000 Kazakh Tenge was outstanding,
(US$1m).
Additional finance from Bank Center Credit was obtained in 2022 for US$40m, of this amount US10m was a direct cash injection and
US$30m as a credit line administered by the bank to purchase additional machinery.
The loan of US$10m was drawn down in November 2022, the loan incurs interest at a fixed rate of 7.2%, repayments commenced in May
2024, and the loan will be repaid by May 2025. At the year end US$5m was outstanding.
The US$30m credit line incurs interest at 7% with a 3% draw-down charge on each tranche. The credit line was increased to total US$37m
on the same terms during 2023. At the year end US$30.1m was outstanding.
The bank loans are secured over the assets of the Company by a floating charge.
The total borrowings of the Group disclosing the scheduled repayments of capital and interest are disclosed in note 25.
23. Notes to the cash flow statement
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Profit before taxation | 30,355 | 11,885 | 5,968 | 33,607 |
| Adjusted for: | ||||
| Finance income | (358) | - | (2,896) | (2,484) |
| Finance expenses | 5,063 | 3,582 | 1,613 | 788 |
| Unwinding of discount on financial liabilities | 454 | 220 | (2,718) | (2,794) |
| Unwinding of discount on provisions | 506 | 481 | - | - |
| Depreciation and amortisation of fixed assets | 9,044 | 6,989 | - | - |
| Provisions (reversal)/provision | 117 | 440 | (3,240) | 1,248 |
| Increase in inventories | (8,055) | (6,971) | - | - |
| Increase in trade and other receivables | (10,954) | (3,326) | (115) | (90) |
| Loss on disposal | 80 | 13 | - | - |
| (Decrease)/increase in trade and other payables | (1,529) | 1,590 | 214 | 241 |
| Waiver of intercompany balance | - | - | - | (31,119) |
| Foreign currency translation | 6,373 | (252) | (50) | - |
| 31,096 | 14,651 | (1,224) | (603) | |
| Income tax paid | (1,726) | - | - | - |
| Cash inflow/(outflow) from operations | 29,370 | 14,651 | (1,224) | (603) |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
84 | AltynGold plc Annual Report 2024
23. Notes to the cash flow statement continued
Reconciliation of movement of loans and borrowings
| Cashflow | ||||||||
| Cash | ||||||||
| changes | ||||||||
| Non-cash changes | ||||||||
| Group | ||||||||
| 1 January | ||||||||
| 2024 | ||||||||
| B/fwd | ||||||||
| US$000 | ||||||||
| New | ||||||||
| loans | ||||||||
| US$000 | ||||||||
| Loans | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| charges and | ||||||||
| discount | ||||||||
| US$000 | ||||||||
| Foreign | ||||||||
| exchange | ||||||||
| US$000 | ||||||||
| Other | ||||||||
| changes | ||||||||
| US$000 | ||||||||
| 31 December | ||||||||
| 2024 | ||||||||
| C/fwd | ||||||||
| US$000 | ||||||||
| Loan element of | ||||||||
| Kazakhstan listed bond | ||||||||
| 9,582 | 9,444 | - | (1,331) | 2,067 | - | (281) | 19,481 | |
| Other borrowings | 48,907 | 12,908 | (20,415) | (3,469) | 3,450 | (717) | - | 40,664 |
| Related party | ||||||||
| borrowings | ||||||||
| 2 | - | – | - | - | (1) | 1 | ||
| Net cash outflow from | ||||||||
| financing activities | ||||||||
| 58,491 | 22,352 | (20,415) | (4,800) | 5,517 | (718) | (281) | 60,146 | |
| Due within one year | 18,132 | 29,201 | ||||||
| Due after one year | 40,359 | 30,945 | ||||||
| 58,491 | 60,146 |
Details in relation to related party loans are disclosed in note 20.
| Cashflow | ||||||||
| Cash | ||||||||
| changes | ||||||||
| Non-cash changes | ||||||||
| Group | ||||||||
| 1 January | ||||||||
| 2023 | ||||||||
| B/fwd | ||||||||
| US$000 | ||||||||
| New | ||||||||
| loans | ||||||||
| US$000 | ||||||||
| Loans | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| charges | ||||||||
| US$000 | ||||||||
| Foreign | ||||||||
| exchange | ||||||||
| US$000 | ||||||||
| Receivables | ||||||||
| net-off | ||||||||
| US$000 | ||||||||
| 31 December | ||||||||
| 2023 | ||||||||
| C/fwd | ||||||||
| US$000 | ||||||||
| Loan element of | ||||||||
| Kazakhstan listed bond | ||||||||
| - | 9,370 | - | (788) | 1,000 | - | - | 9,582 | |
| Other borrowings | ||||||||
| 23,110 | 42,111 | (16,581) | (2,440) | 2,811 | (104) | - | 48,907 | |
| Related party | ||||||||
| borrowings | ||||||||
| 2 | - | – | - | - | - | - | 2 | |
| Net cash outflow from | ||||||||
| financing activities | 23,112 | 51,481 | (16,581) | (3,228) | 3,811 | (104) | - | 58,491 |
| Due within one year | ||||||||
| 13,611 | 18,132 | |||||||
| Due after one year | ||||||||
| 9,501 | 40,359 | |||||||
| 23,112 | ||||||||
| 58,491 |
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 85
23. Notes to the cash flow statement continued
| Cashflow | ||||||||
| Cash | ||||||||
| changes | ||||||||
| Non-cash changes | ||||||||
| Company | ||||||||
| 1 January | ||||||||
| 2024 | ||||||||
| B/fwd | ||||||||
| US$000 | ||||||||
| New | ||||||||
| loans | ||||||||
| US$000 | ||||||||
| Loans | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| charges and | ||||||||
| discount | ||||||||
| US$000 | ||||||||
| Foreign | ||||||||
| exchange | ||||||||
| US$000 | ||||||||
| Other | ||||||||
| changes | ||||||||
| US$000 | ||||||||
| 31 December | ||||||||
| 2024 | ||||||||
| C/fwd | ||||||||
| US$000 | ||||||||
| Loan element of | ||||||||
| Kazakhstan listed bond* | ||||||||
| 9,582 | 9,444 | - | (1,331) | 2,067 | - | (281) | 19,481 | |
| Net cash outflow from | ||||||||
| financing activities | 9,582 | 9,444 | - | (1,331) | 2,067 | - | (281) | 19,481 |
| Due within one year | ||||||||
| - | 9,912 | |||||||
| Due after one year | ||||||||
| 9,582 | 9,569 | |||||||
| 9,582 | 19,481 |
* Loan received of US$10m less broker fee of US$556,000.
| Cashflow | ||||||||
| Cash | ||||||||
| changes | ||||||||
| Non-cash changes | ||||||||
| Company | ||||||||
| 1 January | ||||||||
| 2023 | ||||||||
| B/fwd | ||||||||
| US$000 | ||||||||
| New | ||||||||
| loans | ||||||||
| US$000 | ||||||||
| Loans | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| repaid | ||||||||
| US$000 | ||||||||
| Interest | ||||||||
| charges and | ||||||||
| unwinding | ||||||||
| of discount | ||||||||
| US$000 | ||||||||
| Foreign | ||||||||
| exchange | ||||||||
| US$000 | ||||||||
| Receivables | ||||||||
| net-off | ||||||||
| US$000 | ||||||||
| 31 December | ||||||||
| 2023 | ||||||||
| C/fwd | ||||||||
| US$000 | ||||||||
| Loan element of | ||||||||
| Kazakhstan listed bond* | ||||||||
| - | 9,370 | - | (788) | 1,000 | - | - | 9,582 | |
| Net cash outflow from | ||||||||
| financing activities | ||||||||
| - | 9,370 | - | (788) | 1,000 | - | - | 9,582 | |
| Due within one year | - | - | ||||||
| Due after one year | - | 9,582 | ||||||
| - | 9,582 |
* Loan received of US$10m is net of broker fee of US$630,000.
24. Share capital
Issued and fully paid
| Number | US$000 | |
| At 31 December 2024 - Ordinary shares of £0.10 each | 27,332,934 | 4,267 |
| At 31 December 2023 - Ordinary shares of £0.10 each | 27,332,934 | 4,267 |
The rights attaching to the shares are detailed in the Directors report on page 39.
25. Financial instruments
Financial instruments by category
Financial assets
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Cash and cash equivalents | 10,495 | 5,502 | 8,956 | 4,413 |
| Other receivables and advance payments | 10,969 | 16,340 | - | – |
| Intercompany loans | - | – | 92,661 | 80,967 |
| 21,464 | 21,842 | 101,617 | 85,380 |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
86 | AltynGold plc
25. Financial instruments continued
Financial instruments by category
| Financial liabilities | ||||
| Group | ||||
| 2024 | ||||
| US$000 | ||||
| Group | ||||
| 2023 | ||||
| US$000 | ||||
| Company | ||||
| 2024 | ||||
| US$000 | ||||
| Company | ||||
| 2023 | ||||
| US$000 | ||||
| Trade and other payables | 3,824 | 2,444 | 1,355 | 163 |
| Loans and borrowings | 60,146 | 58,491 | 19,480 | 9,582 |
| 63,970 | 60,935 | 20,835 | 9,745 |
Financial assets and liabilities are measured at amortised cost, there are no amounts recorded at fair value.
Policy on financial risk management
The Company’s principal financial instruments comprise cash and cash equivalents, trade receivables, trade and other payables, other
financial liabilities and borrowings. The Company’s accounting policies and methods adopted, including the criteria for recognition, the
basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are
set out in note 4 - “accounting policies”. The Company does not use financial instruments for speculative purposes. The carrying value of
all financial assets and liabilities approximates to their fair value.
Capital risk management
The Company’s primary objective when managing risk is to ensure there is sufficient capital available to support the Company’s funding
requirements, including capital expenditure, in a way that optimises the cost of capital maximises shareholders’ returns and ensures the
Company’s ability to continue as a going concern. There were no changes to the Company’s capital management approach in the year.
The Company may make adjustments to the capital structure as opportunities arise, as and when borrowings mature or as and when
funding is required. This may take the form of raising equity, debt finance, equipment supplier credit or a combination thereof.
The Company monitors capital on the basis of the gearing ratio, which is defined as net debt divided by total capital. Net debt is
calculated as total borrowings (including current and non-current borrowings as shown in the consolidated statement of financial
position) less cash and cash equivalents (which excludes restricted cash). Total capital is calculated as equity as shown in the consolidated
statement of financial position plus net debt. While the Company does not set absolute limits on the ratio, the Company believes that
a ratio of 30%-40% is acceptable as the Company continues the development of the underground of the Sekisovskoye mine and the
exploration site at Teren Sai, and that optimally this should reduce to and remain below 25% thereafter. The Company’s policy in respect
of capital risk management is the same as that of the Group.
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Group | ||
| Total borrowings | 60,146 | 58,491 |
| Less: cash and cash equivalents | (10,402) | (5,502) |
| Net debt | 49,744 | 52,989 |
| Total equity | 82,157 | 70,682 |
| Total Capital | 131,901 | 123,671 |
| Gearing ratio | 37.7% | 42.8% |
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| Company | ||
| Borrowings | 19,480 | 9,582 |
| Less: cash and cash equivalents | (8,956) | (4,413) |
| Net debt | 10,524 | 5,169 |
| Total equity | 128,402 | 122,731 |
| Total Capital | 138,926 | 127,900 |
| Gearing ratio | 7.57% | 4.04% |
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 87
25. Financial instruments continued
Derivatives, financial instruments and risk management
The Company does not use derivative instruments or other financial instruments to manage its exposure to fluctuations in foreign
currency exchange rates, interest rates and commodity prices.
Foreign currency risk management
The Company and its subsidiaries have transactional currency exposures. Such exposures arise from sales or purchases by the
Company’s two subsidiaries in Kazakhstan in currencies other than the Company’s functional currency. The functional currency of TOO
GMK Altyn MM and DTOO Gornorudnoe Predpriatie Baurgold is the Kazakh Tenge. The currency transactions giving rise to this foreign
currency risk are primarily USD denominated revenues, USD denominated borrowings and other financial liabilities and certain USD
denominated trade payables. The Company and its subsidiaries do not enter into hedging positions in respect of its exposure to foreign
currency risk.
The carrying amounts of the Group’s foreign currency denominated net monetary assets and monetary liabilities at 31 December 2023,
are as follows:
Group
| 2024 US$000 | 2023 US$000 | |||||
| Functional Currency | Functional Currency | |||||
| Currency of monetary asset/liability | ||||||
| US$ | KZT | Total | US$ | KZT | Total | |
| US Dollar | (10,568) | (39,625) | (50,193) | (5,183) | (45,470) | (50,653) |
| British Pound | (1,309) | - | (1,309) | (150) | - | (150) |
| Kazakhstan Tenge | - | 8,995 | 8,995 | - | 11,710 | 11,710 |
| Net Monetary position | (42,507) | (39,093) |
Company
| 2024 US$000 | 2023 US$000 | |||
| Functional Currency | Functional Currency | |||
| Currency of monetary asset/liability | ||||
| US$ | Total | US$ | Total | |
| US Dollar | 82,092 | 82,092 | (5,183) | (5,183) |
| British Pound | (1,309) | (1,309) | (150) | (150) |
| Net Monetary position | 80,783 | (5,333) |
Sensitivity analysis
The analysis below shows the effect a 10% strengthening, or weakening, of any one of the above currencies against the US Dollar. The
Directors are of the opinion that the Kazakh Tenge may recover from this devaluation but not to any great extent. As the Company earns
it revenues in US Dollars and incurs significant expenditure in Kazakh Tenge, the devaluation is seen as benefiting the overall financial
position of the Company. In 2023 the average value of the Kazakh Tenge to the US Dollar was 456 KZT to the US Dollar, in 2024 this moved
to 469 KZT a 2% change. The exchange rate in April 2025 has since moved to 510-520 KZT which is a differential of approximately 9%-10%
to the average rate in 2024.
| Group | ||
| 2024 | ||
| US$000 | ||
| 2023 | ||
| US$000 | ||
| 10% weakening/strengthening of Kazakh Tenge against the US Dollar | (3,140) | (3,376) |
Commodity price risk
The Company is exposed to the effect of fluctuations in the price of gold and silver which are quoted in US Dollars on the international
markets. The Company prepares annual budgets and periodic forecasts including sensitivity analyses in respect of various levels of prices
of these metals.
The Company’s only significant sales during the years ended 31 December 2024 and 2023 were sales of gold doré containing gold and
silver. The sales proceeds for gold doré is fixed by reference to the gold and silver prices on the day of sale. The Company does not plan in
the future to hedge its exposure to the risk of fluctuations in the price of gold or silver and therefore it held no financial instruments that are
sensitive to commodity price changes at either reporting date.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
88 | AltynGold plc Annual Report 2024
25. Financial instruments continued
Credit risk
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in a financial loss to the Company. The
Company currently sells all dore to the state refiner in Kazakhstan. It has as part of its Company policy adopted a policy of only dealing
with creditworthy counter-parties. The Company’s exposure and the credit ratings of its counter-parties are monitored by the Board
of Directors to ensure that the aggregate value of transactions is spread amongst approved counter-parties. In the current climate of
uncertainty and the situation regarding sanctions being imposed on Russia, the Company is aware that there may be issues in relation
to recoverability and safe guarding of its assets and has built this into their assessments of the creditworthiness of counter-parties. The
Company currently has no trading with Russia and there are no material assets at risk at present.
The Company’s principal financial assets are cash and cash equivalents, trade debtors and other accounts receivables. Cash equivalents
include amounts held on deposit with financial institutions.
It’s principally exposed to credit risk on its cash equivalents and trade and other receivables as per the balance sheet. The maximum
exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet which at the year end amounted
to a total of US$20.1m (2023: $21.8m).
Although the full tax audits have been completed in the prior years and showed no material issues, there is always the possibility of fiscal
change in the country. There have been a number of fiscal changes in recent years, which in some cases related to the mining industry, this
may become more prevalent as all countries adapt to climate change.
The credit risk on liquid funds held in current accounts and available on demand is limited because the Group’s counter-parties are mainly
banks with high credit ratings assigned by international credit-rating agencies.
It is often impractical in Kazakhstan to carry out a check of creditworthiness of suppliers before making the contracted prepayments.
However significant contracts have to go through a tender process prior to the contract being awarded in the subsidiary that holds the
mining licence. In order to apply under the tender process the creditworthiness of the supplier will be assessed as part of the procedures.
There were no significant balances at 31 December 2024 and 2023 in respect of which suppliers had defaulted on their obligations.
The parent Company’s maximum exposure to credit risk is limited to the carrying amount of loans recorded in the financial statements. The
majority of the loans are on fixed repayment terms in relation to intercompany borrowings the Company has applied IFRS 9 which resulted
in a significant impairment in the prior periods. The loans are reviewed on a regular basis and provisions made in line with IFRS 9.
Liquidity risk
During the year ended 31 December 2024, the Company was financed by internally generated funds, and other borrowings principally
from bank borrowings and a bond raised on the Kazakh stock exchange in July 2024. The Company manages its liquidity risk by the
Directors monitoring cash flow forecasts on a regular basis and ensure that the loan commitments and working capital commitments are
adequately funded.
The following tables detail the Group and the Company’s remaining contractual maturity for its financial liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company and its
subsidiaries can be required to pay. The table includes both interest and principal cash flows.
| Group | |||
| Borrowings | |||
| US$000 | |||
| Trade and other | |||
| payables | |||
| US$000 | |||
| Total | |||
| US$000 | |||
| 31 December 2024 | |||
| From two to five years | 20,224 | - | 20,224 |
| From one to two years | 13,950 | - | 13,950 |
| Due after more than one year | 34,174 | - | 34,174 |
| Due within one year | 31,936 | 2,502 | 34,438 |
| 66,110 | 2,502 | 68,612 |
| Group | |||
| Borrowings | |||
| US$000 | |||
| Trade and other | |||
| payables | |||
| US$000 | |||
| Total | |||
| US$000 | |||
| 31 December 2023 | |||
| From two to five years | 20,629 | - | 20,629 |
| For one to two years | 24,215 | - | 24,215 |
| Due after more than one year | 44,844 | - | 44,844 |
| Due within one year | 21,433 | 2,443 | 23,876 |
| 66,277 | 2,443 | 68,720 |
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 89
25. Financial instruments continued
| Company | |||
| Borrowings | |||
| US$000 | |||
| Trade and other | |||
| payables | |||
| US$000 | |||
| Total | |||
| US$000 | |||
| 31 December 2024 | |||
| Due between two and five years | 10,563 | - | 10,563 |
| Due between one and two years | 1,125 | - | 1,125 |
| Due within one year | 11,387 | 1,353 | 12,740 |
| 23,075 | 1,353 | 24,428 |
| Company | |||
| Borrowings | |||
| US$000 | |||
| Trade and other | |||
| payables | |||
| US$000 | |||
| Total | |||
| US$000 | |||
| 31 December 2023 | |||
| Due between one and two years | 10,131 | - | 10,131 |
| Due within one year | – | 163 | 163 |
| 10,131 | 163 | 10,294 |
Borrowings and interest rate risk
There is limited exposure to interest rate risk as the current principal borrowings in the Company and its subsidiaries are at fixed rates. The
bank borrowings are predominately at average interest rates of 6-7%, see note 22.
The significant commitments and contingencies in relation to the group are as noted below:
(a) Contractual liabilities
Subsoil use rights are not provided to the Company on an indefinite basis, and each renewal shall be applied for before the current
contract or license expires. These rights can be cancelled by the Government of the Republic of Kazakhstan (hereinafter referred to as
“the Government”) if the Company does not fulfil contractual liabilities.
Deposit development costs
In accordance with the subsoil use contract, the Company has an approved working programme which may be reviewed and
reconsidered depending on the economic viability and operational conditions of the deposit. The management of the Company believes
it has fulfilled the requirements of the Contract.
Training for Kazakhstani specialists
In accordance with the terms of the contract the Company is liable for the annual costs incurred in respect of the professional training of
the Kazakhstani personnel involved in the work. The costs are estimated to be at least 1% of the operational costs during the development
and operational process.
Development of the social sphere of the region
According to the terms of the contract, the Company is liable for supporting the development and ensuring social support for the activity
of the communities near the area of operations of the Company. As at 31 December 2024, the Company has met all the conditions of the
Contract.
Liabilities on the restoration of the mine
Within eighty calendar days upon the expiration of the contract the Company is liable for the development of the mine restoration
programme and its inspection by the competent authority of the Government of the Republic of Kazakhstan. The Company is liable for
implementation of the programme upon its approval.
(b) Taxation risks
The tax system of Kazakhstan, being relatively new, is characterised by frequent changes to the legal norms, official interpretations and
court decisions, which are often not explicit and can be contradictory. This leads to differing interpretations by the tax authorities. The
examination and investigations of the accounts to ensure that the tax payable is accurate are carried out by several regulatory bodies.
These bodies have the power to impose heavy fines and penalties. The accuracy of the tax computation can be investigated five calendar
years after the end of the accounting period. In certain circumstances this period can be increased.
(c) Insurance
In accordance with the subsoil use contract the Company is liable for the development of the insurance programme and its submission
for approval by the competent authority. The Company has several contracts of obligatory insurance including insurance of the vehicle
owners, the employer’s liability and insurance of the subsoil users’ liability where the activity of such subsoil users is connected to the
damage to third parties.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
90 | AltynGold plc Annual Report 2024
25. Financial instruments continued
(d) Court proceedings
The claims on the Company are periodically set out in the courts along with the Company’s activities. As at the reporting date, there are no
material claims against the Company.
26. Parent and ultimate parent undertaking
The controlling party and parent entity of the Company is AGold Mining Group Plc
owns 65.6% (2023: 65.6%) of the voting rights in the Company. There is no requirement to prepare consolidated accounts for AGold
Mining Group Plc, which is registered in the British Virgin Islands.
The ultimate controlling party are the Assaubayev family, by virtue of the fact that they are the controlling party of AGold Mining Group Plc.
27. Non adjusting events after the financial period and capital commitments
In March 2025 on maturity the Company repaid a US$10m bond, which had a coupon rate of 10.5% . It subsequently issued another bond
on the Astana International Exchange in April 2025 for a similar amount. The new bond is repayable in three years, and has a coupon rate of
9.75%.
NOTES TO THE FINANCIAL STATEMENTS continued
for the year ended 31 December 2024
AltynGold plc Annual Report 2024 | 91
NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of the AltynGold Plc (the “Company”) will be held at Langham Court Hotel,
31-35 Langham Street, London W1W 6BU, United Kingdom on 20 June 2025 at 11.00am in order to consider and, if thought t, pass
resolutions 1 to 7 as ordinary resolutions and resolution 8 as a special resolution:
ORDINARY RESOLUTIONS
1. To receive the audited accounts and the reports of the Directors and auditors for the year ended 31 December 2024.
2. To approve the Directors’ remuneration report and policy.
3. To re-elect Vladimir Shkolnik as a Director of the Company.
4. To re-elect Ashar Qureshi as a Director of the Company.
5. To re-elect Kanat Assaubayev as a Director of the Company.
6. To conrm the re-appointment of PKF Littlejohn LLP as the Company’s auditors to hold oce until the conclusion of the next general
meeting at which the annual accounts are to be laid before the Company, and to authorise the Audit Committee of the Board to
determine the auditors’ remuneration.
7. That, in accordance with section 551 of the Companies Act 2006 (as amended) (the “Act”) the directors be generally and
unconditionally authorised to allot Relevant Securities (as dened in the notes to this Notice):
a. comprising equity securities (as dened by section 560 of the Act) up to an aggregate nominal amount of £1,822,000 (such
amount to be reduced by the nominal amount of any Relevant Securities allotted under paragraph 8b. below) in connection with
an oer by way of a rights issue:
i. to holders of ordinary shares in proportion (as nearly as may be practicable) to their respective holdings; and
ii. to holders of other equity securities as required by the rights of those securities or as the directors otherwise consider
necessary, but subject to such exclusions or other arrangements as the directors may deem necessary or expedient in relation
to treasury shares, fractional entitlements, record dates, legal or practical problems in or under the laws of any territory or the
requirements of any regulatory body or stock exchange; and
b. in any other case, up to an aggregate nominal amount of £911,000 (such amount to be reduced by the nominal amount of any
equity securities allotted in excess of £911,000under 7a), provided that this authority shall, unless renewed, varied or revoked by
the Company, expire on the date which is 18 months after the date on which this resolution is passed or, if earlier, the date of the
next annual general meeting of the Company save that the Company may, before such expiry, make oers or agreements which
would or might require Relevant Securities to be allotted and the directors may allot Relevant Securities in pursuance of such oer
or agreement notwithstanding that the authority conferred by this resolution has expired.
This resolution revokes and replaces all unexercised authorities previously granted to the directors to allot Relevant Securities but without
prejudice to any allotment of shares or grant of rights already made, oered or agreed to be made pursuant to such authorities.
NOTICE OF ANNUAL GENERAL MEETING
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
92 | AltynGold plc Annual Report 2024
SPECIAL RESOLUTION
8. That, conditional on the passing of Resolution 7, the directors be given the general power to allot equity securities (as dened by
section 560 of the Companies Act 2006 (as amended) (the “Act”) for cash, either pursuant to the authority conferred by resolution 7 or
by way of a sale of treasury shares, as if section 561(1) of the Act did not apply to any such allotment, provided that this power shall be
limited to:
a. the allotment of equity securities in connection with an oer of equity securities (but, in the case of the authority granted
under7b., by way of a rights issue only):
i. to the holders of ordinary shares in proportion (as nearly as may be practicable) to their respective holdings; and
ii. to holders of other equity securities as required by the rights of those securities or as the directors otherwise consider
necessary, but subject to such exclusions or other arrangements as the directors may deem necessary or expedient in relation
to treasury shares, fractional entitlements, record dates, legal or practical problems in or under the laws of any territory or the
requirements of any regulatory body or stock exchange; and
b. the allotment (otherwise than pursuant to paragraph 8a. above) of equity securities up to an aggregate nominal amount of
£273,000.
The power granted by this resolution will expire on the date which is 18 months after the date on which this resolution is passed or, if earlier,
the conclusion of the Company’s next annual general meeting (unless renewed, varied or revoked by the Company prior to or on such
date) save that the Company may, before such expiry make oers or agreements which would or might require equity securities to be
allotted after such expiry and the directors may allot equity securities in pursuance of any such oer or agreement notwithstanding that
the power conferred by this resolution has expired.
This resolution revokes and replaces all unexercised powers previously granted to the directors to allot equity securities as if section 561(1)
of the Act did not apply but without prejudice to any allotment of equity securities already made or agreed to be made pursuant to such
authorities.
By order of the Board
Rajinder Basra
Company Secretary
Registered Oce:
28 Eccleston Square
London
SW1V INZ
Dated 24 April 2025
Company Number: 05048549
NOTICE OF ANNUAL GENERAL MEETING continued
AltynGold plc Annual Report 2024 | 93
NOTES TO THE NOTICE OF ANNUAL GENERAL MEETING
Relevant Securities means:
• Shares in the Company other than shares allotted pursuant to:
- an employee share scheme (as dened by section 1166 of the Act);
- a right to subscribe for shares in the Company where the grant of the right itself constituted a Relevant Security; or
- a right to convert securities into shares in the Company where the grant of the right itself constituted a Relevant Security.
• Any right to subscribe for or to convert any security into shares in the Company other than rights to subscribe for or convert any
security into shares allotted pursuant to an employee share scheme (as dened by section 1166 of the Act). References to the
allotment of Relevant Securities in the resolution include the grant of such rights.
Entitlement to attend and vote
1. Only those shareholders registered in the Company’s register of members at:
• 6.00 pm on Wednesday 18 June 2025; or,
• if this meeting is adjourned, at 6.00 pm on the day two days prior to the adjourned meeting, shall be entitled to attend and vote at
the meeting. Changes to the register of members after the relevant deadline shall be disregarded in determining the rights of any
person to attend and vote at the meeting.
Appointment of proxies
2. If you are a shareholder who is entitled to attend and vote at the meeting, you are entitled to appoint a proxy to exercise all or any of
your rights to attend, speak and vote at the meeting and you should have received a proxy form with this notice of meeting. You can
only appoint a proxy using the procedures set out in these notes and the notes to the proxy form.
3. If you are not a member of the Company but you have been nominated by a member of the Company to enjoy information rights,
you do not have a right to appoint any proxies under the procedures set out in this “Appointment of proxies” section. Please read the
section “Nominated persons” below.
4. A proxy does not need to be a shareholder of the Company but must attend the meeting to represent you. You may appoint more
than one proxy provided each proxy is appointed to exercise rights attached to dierent shares. You may not appoint more than one
proxy to exercise rights attached to any one share. To appoint more than one proxy, each proxy must be appointed on a separate
proxy form. If you wish your proxy to speak on your behalf at the meeting you will need to appoint your own choice of proxy (not the
chairman) and give your instructions directly to them.
5. Shareholders can:
• appoint a proxy and give proxy instructions by returning the enclosed proxy form by post (see note 7);
• register their proxy appointment electronically (see note 8);
• if a CREST member, register their proxy appointment by utilising the CREST electronic proxy appointment service (see note 9).
Appointment of a proxy does not preclude you from attending the meeting and voting in person. If you have appointed a proxy and
attend the meeting and vote in person, your proxy appointment will automatically be terminated.
6. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the
resolution. If no voting indication is given, your proxy will vote or abstain from voting at his or her discretion. Your proxy will vote (or
abstain from voting) as he or she thinks t in relation to any other matter which is put before the meeting.
Appointment of proxy by post
7. The notes to the proxy form explain how to direct your proxy how to vote on each resolution or withhold their vote.
To appoint a proxy using the proxy form, the form must be:
• completed and signed;
• sent or delivered to Neville Registrars (the “Registrar”), at Neville House, Steelpark Road, Halesowen, West Midlands B62 8HD; and
• received by the Registrar no later than 11.00am on 18 June 2025.
In the case of a shareholder which is a company, the proxy form must be executed under its common seal or signed on its behalf by
an ocer of the company or an attorney for the company. Any power of attorney or any other authority under which the proxy form is
signed (or a duly certied copy of such power or authority) must be included with the proxy form. If you have not received a proxy form
and believe that you should have one, or if you require additional proxy forms, please contact the Registrar on +44 (0) 121 585 1131.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
94 | AltynGold plc Annual Report 2024
NOTES TO THE NOTICE OF ANNUAL GENERAL MEETING continued
Appointment of proxies electronically
8. As an alternative to completing the hard-copy proxy form, you can appoint a proxy electronically online at www.sharegateway.co.uk
and completing the authentication requirements as set out on the proxy form. For an electronic proxy appointment to be valid, your
appointment must be received by the Registrar no later than 11.00am on 18 June 2025.
Appointment of proxies through CREST
9. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for
the meeting and any adjournment(s) of it by using the procedures described in the CREST Manual (available via www.euroclear.com).
CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a voting service
provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their
behalf.
In order for a proxy appointment made using the CREST service to be valid, the appropriate CREST message (a CREST Proxy
Instruction) must be properly authenticated in accordance with Euroclear UK & International’s Limited’s (EUI) specications and
must contain the information required for such instructions, as described in the CREST Manual. The message, regardless of whether
it constitutes the appointment of a proxy or is an amendment to the instruction given to a previously appointed proxy, must, in order
to be valid, be transmitted so as to be received by the Registrar ID 7RA11 no later than 11.00am on 18 June 2025, or, in the event of an
adjournment of the meeting, 48 hours before the adjourned meeting. For this purpose, the time of receipt will be taken to be the time
(as determined by the timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able to
retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time, any change of instructions to proxies
appointed through CREST should be communicated to the appointee through other means.
CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make
available special procedures in CREST for any particular message. Normal system timings and limitations will therefore apply in relation
to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a
CREST personal member or sponsored member, or has appointed a voting service provider(s), to procure that his/her CREST sponsor
or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST
system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service
providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and
timings.
The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncerticated
Securities Regulations 2001.
Appointment of proxy by joint members
10. In the case of joint holders, where more than one of the joint holders completes a proxy appointment, only the appointment submitted
by the most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the
Company’s register of members in respect of the joint holding (the rst-named being the most senior).
Changing proxy instructions
11. Shareholders may change proxy instructions by submitting a new proxy appointment using the methods set out above. Note that
the cut-o time for receipt of proxy appointments (see above) also apply in relation to amended instructions; any amended proxy
appointment received after the relevant cut-o time will be disregarded.
Where you have appointed a proxy using the hard-copy proxy form and would like to change the instructions using another hard-copy
proxy form, please contact the Registrar on +44 (0) 121 585 1131.
If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies
will take precedence.
Termination of proxy appointments
12. A shareholder may change a proxy instruction but to do so you will need to inform the Company in writing by:
• Sending a signed hard copy notice clearly stating your intention to revoke your proxy appointment to Neville Registrars, at Neville
House, Steelpark Road, Halesowen, West Midlands B62 8HD. In the case of a shareholder which is a company, the revocation
notice must be executed under its common seal or signed on its behalf by an ocer of the company or an attorney for the
company. Any power of attorney or any other authority under which the revocation notice is signed (or a duly certied copy of such
power or authority) must be included with the revocation notice.
The revocation notice must be received by the Registrar no later than 11.00am on 18 June 2025.
If you attempt to revoke your proxy appointment but the revocation is received after the time specied, your original proxy
appointment will remain valid unless you attend the meeting and vote in person.
NOTICE OF ANNUAL GENERAL MEETING continued
AltynGold plc Annual Report 2024 | 95
NOTES TO THE NOTICE OF ANNUAL GENERAL MEETING continued
Corporate representatives
13. A corporation which is a shareholder can appoint one or more corporate representatives who may exercise, on its behalf, all its powers
as a member provided that no more than one corporate representative exercises powers over the same share.
Issued shares and total voting rights
14. As on 6pm at 25 April 2025, the Company’s issued share capital comprised 27,332,934 ordinary shares of £ 0.10 each. Each ordinary
share carries the right to one vote at a general meeting of the Company and, therefore, the total number of voting rights in the
Company is 27,332,934.
The Company’s website, www.altyngold.uk will include information on the number of shares and voting rights.
Notication of shareholdings
15. Any person holding 3% or more of the total voting rights of the Company who appoints a person other than the Chairman of the Annual
General Meeting as their proxy will need to ensure that both they, and their proxy, comply with their respective disclosure obligations
under the Disclosure Rules and Transparency Rules.
Questions at the meeting
16. Any member attending the meeting has the right to ask questions. The Company must answer any question you ask relating to the
business being dealt with at the meeting unless:
• answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of condential
information; the answer has already been given on a website in the form of an answer to a question; or it is undesirable in the
interests of the Company or the good order of the meeting that the question be answered.
Nominated persons
17. If you are a person who has been nominated under section 146 of the Companies Act 2006 to enjoy information rights (Nominated
Person):
• You may have a right under an agreement between you and the shareholder of the Company who has nominated you to have
information rights (Relevant Shareholder) to be appointed or to have someone else appointed as a proxy for the meeting.
• If you either do not have such a right or if you have such a right but do not wish to exercise it, you may have a right under an
agreement between you and the Relevant Shareholder to give instructions to the Relevant Shareholder as to the exercise of voting
rights.
• Your main point of contact in terms of your investment in the Company remains the Relevant Shareholder (or, perhaps, your
custodian or broker) and you should continue to contact them (and not the Company) regarding any changes or queries relating
to your personal details and your interest in the Company (including any administrative matters). The only exception to this is where
the Company expressly requests a response from you.
Documents on display
18. Copies of the service contracts of the executive directors and the non-executive directors’ contracts for services are available for
inspection at the Company’s registered oce during normal business hours and at the place of the meeting from at least 15 minutes
prior to the meeting until the end of the meeting.
Communication
19. Except as provided above, shareholders who have general queries about the meeting should use the following means of
communication (no other methods of communication will be accepted):
• Contact the Company by e-mail to info@altyngold.uk.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
96 | AltynGold plc Annual Report 2024
EXPLANATION OF RESOLUTIONS
An explanation of each of the resolutions is set out below.
ORDINARY BUSINESS
Resolutions 1 to 7 will be proposed as ordinary resolutions and will be passed if more than 50% of shareholders’ votes cast are in favour.
Resolution 1: To receive the 2024 Report and Accounts
The directors of the Company (the ‘Directors’) must present their Annual Report and Accounts of the Company for the year ended
31December 2024 (the ‘Annual Report’) to shareholders for formal adoption at the Annual General Meeting.
Resolution 2: Directors’ remuneration report and policy
The Directors’ remuneration report is set out in the Annual Report. In accordance with the provisions of the Act the Directors’ remuneration
report is the Annual Report contains:
• a statement by the Chairman of the Remuneration Committee;
• the Directors’ remuneration policy in relation to future payments to the Directors and former Directors’; and the Annual Report on
remuneration, which sets out payments made in the nancial year ending 31 December 2024.
The statement by the Remuneration Committee Chairman and the Annual Report on remuneration will be put to an annual advisory
shareholder vote by ordinary resolution. Accordingly, Resolution 2 is the ordinary resolution to approve the Directors’ remuneration
report. As it is an advisory vote it does not aect the actual remuneration paid to any Director.
Resolutions 3 to 5: To re-elect the Directors
Under the Company’s articles of association, one third of the Directors or, if their number is not a multiple of three, then the number
nearest to but not less than one-third must retire from oce and then stand for re-election.
Biographical details of directors to be re-elected are set out in the Annual Report and are also available for viewing on the Company’s
website at www.altyngold.uk
Resolution 6: To conrm the appointment of the auditors and authorise the Audit Committee of the Board to determine their
remuneration
The Company is required to appoint auditors at each annual general meeting at which the annual accounts and report are to be laid
before the Company, to hold oce until the conclusion of the next such meeting. The Audit Committee has reviewed the eectiveness,
independence and objectivity of the external auditors, PKF Littlejohn LLP, on behalf of the Board which now proposes their
re-appointment as auditors of the Company. Resolution 6 also authorises the Audit Committee of the Board, in accordance with standard
practice, to negotiate and agree the remuneration of the auditors.
NOTICE OF ANNUAL GENERAL MEETING continued
AltynGold plc Annual Report 2024 | 97
SPECIAL BUSINESS
As well as the ordinary business of the meeting outlined above, a number of special matters will be dealt with at the Annual General
Meeting. Resolution 7 will be proposed as an ordinary resolution and will be passed if more than 50% of shareholders’ votes cast are in
favour. Resolution 8 will be proposed as a special resolution. For this resolution to be passed, at least 75% of shareholders’ votes cast
must be in favour.
Resolution 7: Directors’ authority to allot shares
At the 2024 Annual General Meeting in June 2024 the Directors were given authority to allot shares in the Company, and Resolution 7 seeks
to renew this authority for a period until the date which is 18 months after the date on which this resolution is passed or, if earlier, the date of
the next annual general meeting of the Company.
This resolution would give the Directors authority to allot ordinary shares, and grant rights to subscribe for or convert any security into
shares in the Company, up to an aggregate nominal value of £911,000. This amount represents approximately one-third (33.33%) of the
issued ordinary share capital of the Company, as at 25 April 2025, the last practicable date prior to the publication of this document. The
Company does not currently hold any shares in treasury. The extent of the authority follows the guidelines issued by institutional investors.
The Directors consider that it is appropriate for this authority and these powers to be granted to preserve maximum exibility for the
future.
Resolution 8: Disapplication of pre-emption rights
Section 561 of the Companies Act 2006 gives all shareholders the right to participate on a pro-rata basis in all issues of equity securities
for cash, unless they agree that this right should be disapplied. The eect of this resolution is to empower the Directors, until the date
which is 18 months after the date on which this resolution is passed or, if earlier, the date of the next annual general meeting of the
Company, to allot equity securities for cash, without rst oering them on a pro-rata basis to existing shareholders, but only up to a
maximum nominal amount of £273,000 representing approximately 10% of the Company’s issued ordinary share capital on 25 April 2025
(being the latest practicable date before the date of this document). In addition, the resolution empowers the Directors to deal with
fractional entitlements and any practical problems arising in any overseas territory on any oer made on a pro-rata basis. The Directors
consider that it is appropriate for this authority and these powers to be granted to preserve maximum exibility for the future.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
98 | AltynGold plc Annual Report 2024
Directors
Mr Kanat Assaubayev (Chairman)
Mr Aidar Assaubayev (Chief Executive Ocer)
Mr Sanzhar Assaubayev (Executive Director)
Mr Ashar Qureshi (Non-Executive Director)
Mr Vladimir Shkolnik (Non-Executive Director)
Mr Andrew Charles Terry (Non-Executive Director)
Ms Maryam Buribayeva (Non-Executive Director)
Company secretary
Mr Rajinder Basra
Registered oce & Company number
28 Eccleston Square
London
SW1V 1NZ
Company number: 05048549
Solicitors
Cleary Gottlieb Steen & Hamilton LLP
2 London Wall Pl.
London
EC2Y 5AU
Auditors
PKF Littlejohn LLP
15 Westferry Circus
London
E14 4HD
COMPANY INFORMATION
Sterling Financial Print
177520
AltynGold plc
28 Eccleston Square
London
SW1V 1NZ
www.altyngold.uk