Notes to the financial statements

1          General information

 

Eurasia Mining Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain with its registered office at International House, 142 Cromwell Road, London SW7 4EF, United Kingdom and principal place of business at Clubhouse Holborn, 20 St Andrew Street, EC4A 3AG, United Kingdom. The Company's shares are listed on the AIM Market of the London Stock Exchange plc. The principal activities of the Company and its subsidiaries (collectively "Group") are related to the exploration for and development of battery metals, platinum group metals, gold and other minerals.

 

Eurasia Mining Plc's consolidated financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company.

2          Going concern

 

The going concern position of the Group covers period of not less than 12 months from the date of signing of this Annual Report (the "Review period").

 

As at 31 December 2025, the Group's net current assets amounted to £5,367,691 (£2,973,180 in 2024). As at the same date, the Group's cash balance was £2,540,859 (£3,682,292 in 2024). The key difference between the positions as at 31 December 2025 and as at 31 December 2024 is the stock of over 80% grade (and thus highly liquid) precious metals concentrate. As at 31 December 2024 there was no stock. As at 31 December 2025 significant volume of stock was accumulated, thus, the amount of cash and highly liquid stock assets (stock of high-grade precious metals concentrate) which are readily convertible to cash increased significantly.

 

The Group's debt consists of (i) borrowings of £745,450 (at 31 December 2024 - £262,706) and (ii) lease liabilities in relation to the acquisition of mining machinery and office facilities for a total amount of £17,849 (at 31 December 2024 - £26,105).

 

In assessing the appropriateness of the going concern basis, the Directors reviewed detailed cash flow forecasts covering the Review Period for the Group and the Parent Company and considered the Group's and Parent Company's current financial position, expected operating cash flows, funding requirements and strategic objectives.

 

The Directors also considered the Group's and Parent Company's liquidity position, existing cash resources, inventory of highly marketable precious metals concentrate, forecast expenditure, principal risks and uncertainties and the continuing sanctions environment.

 

The forecasts of the Group were subjected to sensitivity analysis, including increases in operating costs, delays to strategic initiatives and the potential impact of changes in the sanctions environment. Under all reasonably foreseeable scenarios considered by the Board, the Group retained sufficient liquidity to meet its obligations as they fall due throughout the Review Period. The directors are continuing to monitor the Parent Company's cash flows closely and are continuing to provide financial support to the Company through deferring the payment of directors' fees (see note 26).

 

The Board reviews the Group's and Parent Company's liquidity position, funding requirements and risk profile on a regular basis and considers the adequacy of available financial resources as part of its ongoing governance framework.

Accordingly, the Directors have concluded that the Group and Parent Company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements.

 

The financial statements for the year ended 31 December 2025 have therefore been prepared on a going concern basis.

 

3          Changes in accounting policies

3.1 New and revised relevant standards that are effective for annual periods commencing on or after 1 January 2025

Amendments to IAS 21: Lack of Exchangeability

 

On 15 August 2023, the IASB issued Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates). The amendments are effective for annual reporting periods beginning on or after 1 January 2025. IAS 21 sets out the requirements for determining the exchange rate to be used for recording a foreign currency transaction into the functional currency and translating a foreign operation into a different currency. If a currency lacks exchangeability, it can be difficult to determine an appropriate exchange rate to use. While relatively uncommon, a lack of exchangeability might arise when a government imposes foreign exchange controls that prohibit the exchange of a currency or that limit the volume of foreign currency transactions.

The amendment had no impact the Group's financial statements.

 

3.2 Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Group

Certain new standards and interpretations have been issued that are mandatory for the annual periods beginning on or after 1 January 2026 or later, and which the Group has not early adopted.

·      Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 (issued on 30 May 2024 and effective for annual periods beginning on or after 1 January 2026).

·      IFRS 19 Subsidiaries without Public Accountability: Disclosures (Issued on 9 May 2024, then amended on
21 August 2025 and effective for annual periods beginning on or after 1 January 2027).

·      IFRS 14, Regulatory Deferral Accounts (issued on 30 January 2014 and effective for annual periods beginning on or after 1 January 2016).

·      Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to IFRS 10 and IAS 28 (issued on 11 September 2014 and effective for annual periods beginning on or after a date to be determined by the IASB).

·      Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (Issued on 18 December 2024 and effective from 1 January 2026).

·      Annual Improvements to IFRS Accounting Standards (Issued in July 2024 and effective from 1 January 2026).

The Group does not expect that these new standards and amendments will have a material impact on Company's financial statements.

·      IFRS 18 Presentation and Disclosure in Financial Statements (Issued on 9 April 2024 and effective for annual periods beginning on or after 1 January 2027). In April 2024, the IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

-     the structure of the statement of profit or loss;

-     required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and

-     enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its 'operating profit or loss'. IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information.

                IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after
1 January 2027)

IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements.

Management is currently assessing the detailed implications of applying the new standard on the Company's financial statements. From the preliminary assessment performed, the following potential impacts have been identified:

·      Although the adoption of IFRS 18 will have no impact on the group's net profit, the Company expects that grouping items of income and expenses in the statement of profit or loss into the new categories will impact how operating profit is calculated and reported. From the assessment performed, the following item might potentially impact operating profit:

·      Foreign exchange differences currently aggregated in the line item 'other income and other gains/(losses) - net' in operating profit might need to be disaggregated, with some foreign exchange gains or losses presented below operating profit.

·      The line items presented on the primary financial statements might change as a result of the application of the concept of 'useful structured summary' and the enhanced principles on aggregation and disaggregation.

·      The Company does not expect there to be a significant change in the information that is currently disclosed in the notes because the requirement to disclose material information remains unchanged; however, the way in which the information is grouped might change as a result of the aggregation/disaggregation principles.

·      From a cash flow statement perspective, there will be changes to how interest received and interest paid are presented. Interest paid will be presented as financing cash flows and interest received as investing cash flows, which is a change from current presentation as part of operating cash flows.

4          Summary of material accounting policies

4.1 Basis of preparation

The consolidated financial statements of the Group and the Company financial statements have been prepared in accordance with UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006.

 

These financial statements have been prepared under the historical cost convention. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these consolidated financial statements.

4.2 Presentation of financial statements

The consolidated financial statements are presented in accordance with IAS 1 Presentation of Financial Statements. The Group has elected to present the "Consolidated Statement of Profit or Loss" in one statement.

4.3 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company. Control is achieved where the Company has all of the following:

·           Power over the investee;

·           Exposure, or rights, to variable returns from its involvement with the investee;

·           The ability to use its power over the investee to affect the amount of investor's returns.

The results of subsidiaries acquired or disposed of are included in the Consolidated Statement of Profit or Loss from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling party's share of changes in equity since the date of the combination.

4.4 Business combinations

The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred, and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

 

The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.

 

Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value of consideration transferred, b) the recognised amount of any non-controlling interest in the acquiree and c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised as a profit or loss immediately.

 

In a business combination achieved in stages, the Group remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate.

4.5 Foreign currencies

Functional and presentation currency

The individual financial statements of each group entity are prepared in the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in GBP, which is the functional and the presentation currency of the Company.

 

Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign currency differences arising on inter-company loans to subsidiaries, which are denominated in currencies different to GBP are re-translated at year-end rates at the reporting date. Any differences are reported through other comprehensive income on the basis the loans are effectively part of the parent's investment in the subsidiary over a long term period.

Group companies

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

• income and expenses for each Statement of Profit or Loss are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and

• all resulting exchange differences are recognised as a separate component of other comprehensive income.

4.6 Share-based payments

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instrument at the grant date. Fair value is measured by use of Black Scholes model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest.

Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

All equity-settled share-based payments are ultimately recognised as an expense in the profit or loss with a corresponding credit to "Share-based payments reserve".

Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting or if the share options vest but are not exercised.

When share options lapse or are forfeited the respective amount recognised in the Share-based payment reserve is reversed and credited to accumulated profit and loss reserve.

4.7 Revenue

The Group earns its revenues primarily from the sale of platinum and other precious metals from the West Kytlim mine. The Company enters into a contract with its main customer to deliver all mined metals extracted from the mine. There is one performance obligation under the sales contract, and that is the delivery of metals. As such, the entire price under the contract is allocated to the single performance obligation. Revenue is recognised when control over the metals passes to the customer.

 

The Group has determined that it is the principal in the sales transactions as the Group holds the mining licence and has the rights to the underlying resources. The Group controls the sales process, from selecting the customer to determining sales price.

4.8 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

 

Current tax

The tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income 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 Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the statement of financial position date.

 

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill, initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

4.9 Property, plant and equipment

 

Mining assets

Mining assets are stated at cost less accumulated depreciation. Mining assets include the cost of acquiring and developing mining assets and mineral rights, buildings, vehicles, plant and machinery and other equipment located on mine sites and used in the mining operations.

Mining assets, where economic benefits from the asset are consumed in a pattern which is linked to the production level, are depreciated using a unit of production method based on the volume of ore reserves. This results in a depreciation charge proportional to the depletion of reserves.

 

Stripping activity asset costs

In alluvial mining operations, it is necessary to remove overburden and other waste in order to access or improve access to the ore body. Associated costs are recognised as a stripping activity asset. A stripping activity asset is initially measured at cost and subsequently carried at cost less depreciation and impairment losses.

 

A stripping activity asset is depreciated on a systematic basis over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity. The Company incurs stripping costs in a staged manner for specific, identified locations. Once the extraction activities in a particular location are complete, the related capitalised stripping asset is charged to the profit and loss account (i.e., units of production method).

 

Assets under construction

Assets under construction are fixed asset additions that have not been commissioned by the year-end. The expenses associated with acquisition, building, delivery and other allowed expenses are first capitalised as assets under construction and then, once completed, depreciated over their useful life.

 

Other assets

Depreciation is charged to write off the cost or valuation of assets over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

 

The estimated useful lives are as follows:

Plant & machinery                   3-30 years

 

The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

4.10 Intangible assets

Exploration and evaluation of mineral resources

 

Exploration and evaluation expenditure comprise costs that are directly attributable to:

·      researching and analysing existing exploration data;

·      conducting geological studies, exploratory drilling and sampling;

·      examining and testing extraction and treatment methods; and/or

·      compiling prefeasibility and feasibility studies.

 

Expenditures related to the development of mineral resources are not recognised as exploration and evaluation assets.

 

Exploration and evaluation of mineral resources are no longer classified as intangible assets when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable, hence, they are reclassified as property, plant and equipment. Exploration and evaluation of mineral resources are assessed for impairment, and any impairment loss recognised, before reclassification.

4.11 Investments in subsidiary undertakings

Investments in subsidiaries are measured at cost less accumulated impairment.

 

The carrying values of non-financial assets are reviewed annually for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. The recoverable amount of non-financial assets is the greater of net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. If such indication of impairment exists and where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amount. Impairment losses are recognised within operating loss.

4.12 Impairment testing for intangible assets and property, plant and equipment

At each statement of financial position date, the Group reviews the carrying amounts of the assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

 

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

 

In assessing whether an impairment is required, the carrying value of the asset is compared with its recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal (FVLCD) and value in use (VIU). The FVLCD is estimated based on future discounted cash flows expected to be generated from the continued use of the asset, including any expansion prospects and eventual disposal, using market-based commodity prices, exchange assumptions, estimated quantities of recoverable minerals, production levels, operating costs and capital requirements based on the latest life of mine plans. These cash flows are discounted using a real post-tax discount rate that reflects the current market assessments of time value of money.

Value in use is determined as the present value of the estimated cash flows expected to arise from continued use in its current form and eventual disposal. Value in use cannot take into consideration future development. The assumptions used in the calculation are often different than those used in a FVLCD and therefore is likely to yield a different result.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so 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 (cash-generating unit) in prior years. A reversal of an impairment loss of the assets is recognised immediately in profit or loss.

4.13 Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

4.14 Cash

Cash and cash equivalents comprise cash balances, call deposits and highly liquid investments with maturities of three months or less from the acquisition date that are subject to insignificant risk of changes in their fair value.

4.15 Financial instruments

Recognition and derecognition

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred.

A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

 

Classification and initial measurement of financial assets

Financial assets are initially measured at fair value adjusted for transaction costs (where applicable).  In subsequent periods, financial assets are recognised at amortised cost.

Classification and initial measurement of financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables as appropriate. 

 

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. In subsequent periods, financial liabilities are recognised at amortised cost.

 

Impairment of financial assets

The Group recognises an allowance for expected credit losses using the 'expected credit loss (ECL) model'. In applying, the Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.

 

Trade and other receivables and contract assets

The Group makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating the loss allowance, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit loss allowance using a provision matrix.

The Group assess impairment of trade receivables on a collective basis as they possess shared credit risk characteristics, these have been grouped based on the days past due.

 

Financial liabilities at amortised cost (Loans and Borrowings)

Amounts borrowed from third parties are recorded initially at fair value, being the amount received under the agreements less issuance costs and subsequently measured at amortised cost using the effective interest rate. There are times when there are conversion options included in the Group's borrowing agreements. The conversion options are analysed under IAS 32 - Financial Instruments: presentation to determine the proper classification. If the option is determined to be equity, the fair value of the conversion option is included in other reserves, with the fair value of the liability portion being recorded as a liability with interest accruing under the effective interest rate. If the conversion option is determined to be a liability, it is treated as a derivative financial instrument measured at fair value through profit or loss.

 

When a conversion option is exercised, the fair value of the shares issued is recorded in share capital and share premium. The amortised carrying value of the liability portion is extinguished. If the conversion option is an equity instrument, this is reclassified/adjusted to retained earnings. If the conversion option is a liability component, it is extinguished. Any difference between the carrying value of the liability and the conversion option and the fair value of shares issued is taken to the profit and loss as a gain or loss on extinguishment.

 

If debt agreements are modified, any difference between the fair value of the original debt and the modified debt is included as a gain or loss on modification. If the modification is significant, this is considered an extinguishment of the old debt and recognition of new debt.

 

Warrants

The Company has issued warrants in association with debt and equity issuances and as compensation to suppliers or vendors in exchange for services. These are determined to be equity instruments. When warrants are issued with debt or as compensation to suppliers or vendors, the value of the warrants are included within the share-based payments reserve that sits within the other reserve. When warrants are issued together with equity issuances any fair value associated with these are recognised when the warrants are exercised within share premium. On exercise of the warrants, the value of the warrants are transferred from other reserves to the profit and loss reserve as applicable.

 

4.16 Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

 

Environmental protection, rehabilitation and closure costs

Provision is made for close down, restoration and environmental rehabilitation costs (which include the dismantling and demolition of infrastructure, removal of residual materials and remediation of disturbed areas) in the financial period when the related environmental disturbance occurs, based on the estimated future costs using information available at the reporting date. The provision is discounted using a discount rate equal to yield to maturity of relevant state bonds and the unwinding of the discount is included in interest expense.

The provision is reviewed on an annual basis for changes to obligations, legislation or discount rates that impact estimated costs or lives of operations.

Restoration and environmental rehabilitation costs are either expensed to the cost of production or capitalised as part of property, plant and equipment depending on mine operational circumstances.

 

4.17 Segmental reporting

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, has been identified as the Executive Directors of the Group that make the operating decisions.

 

5          Critical accounting judgements and key sources of estimation uncertainty

 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

5.1 Key sources of estimation uncertainty

The following are the key assumptions / uncertainties at the statement of financial position date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

5.1.1 Provision for environmental rehabilitation

Provision is made for close down, restoration and environmental rehabilitation costs based on the estimated future costs using information available at the reporting date. Costs are estimated based on the observable local prices, fees and already agreed contracts for specific jobs. The provision is discounted using a risk-free discount rate from 12.85% to 14.25% (2024: 15.01% to 18.91%) attributed to the Russian Federal bonds with corresponding maturity.

 5.1.2 Impairment review of the mining assets

The impairment assessment of the West Kytlim mining asset was performed by calculating the higher of fair value less cost of disposal (based on the terms of the proposed sale transaction for the sale of KK) and value in use and compared against the carrying value of the mining assets. Projected cash flows from 2025 to 2043 were used to assess the fair value less costs of disposal. The chosen period is consistent with the quantity of the approved reserves and resources available for mining operations. Significant headroom exists in recoverable values against carrying values. No impairment has been recognised.

 

Assumptions used throughout 2025:

Platinum/Gold price $1,381-1,996/oz / $4,511/oz

Pt grade 0.45 g/tonne

Process recovery 89.7%

Pre-tax discount rate 10.32%

5.1.3 Impairment review of the intangible asset

The intangible asset represents the Monchetundra development and Nittis-Kumuzhya-Travyanaya (the "NKT") exploration and evaluation assets. NKT, previously referred to as The Monchetundra Flanks, is a northeast extension of the Monchetundra mineralisation. Monchetundra has been assessed as an economically viable asset for the purpose of preparing and submitting a Definitive Feasibility Study for the mines development. Parameters of the assessment have been evaluated by an expert panel of mining industry professionals and are being regularly evaluated by the Company for signs which can trigger impairment of the asset. The NKT exploration and evaluation asset falls under the IFRS 6 treatment. There were no indicators of impairment identified during the course of the year ended 31 December 2025.

5.1.4. Impairment of investments in subsidiary and receivables from subsidiaries

The Company's financial statements, and in particular its investments in and receivables from subsidiaries, are affected by certain  critical accounting judgements and key sources of estimation uncertainty.

 

The critical estimates and judgments referred to include application of the expected credit loss model to intercompany receivables (note 26). Management determined that interest free on demand loans were required to be assessed on the lifetime expected credit loss approach and assessed scenarios considering risks of loss events and the amounts which could be realised on the loans. In doing so, consideration was given to factors such as the cash held by subsidiaries and the underlying forecasts of the Group's divisions and their incorporation of prospective risks and uncertainties.

 

In relation to impairment of investments in subsidiary please refer to Note 4.11.

5.2 Classification of subsidiary (KK) as at 31 December 2025

The Directors concluded that KK/West Kytlim did not meet the IFRS 5 held-for-sale classification criteria as at 31 December 2025, the sale was assessed as not highly probable at the reporting date. Accordingly, KK has not been classified as a disposal group held for sale in the consolidated financial statements, KK continue to be consolidated by the Group in the usual manner, with its assets, liabilities, income and expenses included within the relevant line items of the consolidated financial statements.

The proposed transaction for the sale of KK, a Russian business owned by a Western economy entity during this time of sanctions is unprecedented. The timelines for Regulatory approval are also uncertain. The directors assessed the transaction did not meet the "highly probable" requirement under IFRS 5 and have continued to account for KK as part of continuing operations.

6          Segmental information

 

During the year under review management identified the Group's separate segments to be comprised of the following:

 

	West Kytlim	Monchetundra	Corporate and other segments	Total
Geographical location	Urals Mountains, Russia	Kola Peninsula, Russia	London, UK
Activity	Operating mine and revenue generating unit	Licenced mining project	Management and investment
2025	£	£	£	£
Non-current assets	9,701,090	3,745,531	(33,222)	13,413,399
Total assets	14,734,753	3,854,096	1,678,581	20,267,430
Total liabilities	(35,772)	538,709	1,380,283	1,883,220
Revenue	5,420,759	-	-	5,420,759
Profit/(loss) for the year	7,915,389	923,395	(1,670,970)	7,167,814
2024	£	£	£	£
Non-current assets	7,046,034	2,703,478	100,857	9,850,369
Total assets	11,929,783	2,879,656	562,346	15,371,785
Total liabilities	1,102,666	489,845	1,206,420	2,798,931
Revenue	6,636,001	-	-	6,636,001
Loss for the year	(6,024,469)	(839,292)	(1,784,084)	(8,647,845)

7          Employees

 

Average number of staff (excluding Non-Executive Directors) employed throughout the year was as follows:

	2025	2024
By the Company	3	3
By the Group	155	78

 

8          Revenue

 

Disaggregation of by primary markets is as follows:

	Year to 31 December 2025		Year to 31 December 2024
	Group	Company	Group	Company
	£	£	£	£
Revenue from sale of platinum and other precious metals	5,420,759	-	6,636,001	-
Revenue from management services	-	120,000	-	120,000
	5,420,759	120,000	6,636,001	120,000

 

Disaggregation of revenue from contracts with customers:

	Year to 31 December 2025		Year to 31 December 2024
	Group	Company	Group	Company
	Russia	Cyprus	Russia	Cyprus
	£	£	£	£
Revenue from external customers
- Sale of platinum and other precious metals	5,420,759	-	6,636,001	-
Revenue from related parties
- Management services	-	120,000	-	120,000
	5,420,759	120,000	6,636,001	120,000
Timing of revenue recognition
At a point of time	5,420,759	-	6,636,001	-
Over time	-	120,000	-	120,000
	5,420,759	120,000	6,636,001	120,000

 

Revenue recognised in 2025 relates to the sale of PGM concentrate from the stockpile of 2025 (2024: PGM concentrate from the stockpile of 2022 and 2024).

 

9          Profit/(loss) for the year

 

Profit/(loss) for the year has been arrived at after charging:

	Year to 31 December 2025		Year to 31 December 2024
	Group	Company	Group	Company
	£	£	£	£
Cost of sales	(4,183,819)	-	(6,701,131)	-
Administrative expenses	(2,330,865)	(1,578,936)	(2,055,218)	(1,306,844)
Cost of sales includes:
Cost of concentrate sold	(4,183,819)	-	(6,701,131)	-
Administration expenses include:
Staff benefits expenses	917,115	533,829	836,965	495,880
Depreciation*	10,785	-	19,486	-
Audit fees payable	53,000	53,000	74,208	74,208
Staff benefits expense:
Wages, salaries and Directors' fees	816,041	527,527	743,242	478,382
Social security costs	98,074	3,302	93,723	17,498
Other short-term benefits	3,000	3,000	-	-
	917,115	533,829	836,965	495,880

 

* Total depreciation for the year ended 31 December 2025 was £ 560,456 (2024: £369,486)

 

10        Finance cost

 

	Year to 31 December 2025		Year to 31 December 2024
	Group	Company	Group	Company
	£	£	£	£
Interest on obligations under finance leases	29,395	-	17,159	-
Interest on unsecured borrowings	349,307	326,251	59,770	32,699
Unwinding of discounts on provisions	46,031	-	67,766	-
	424,733	326,251	144,695	32,699

 

 

11        Other gains and losses

 

	Year to 31 December 2025		Year to 31 December 2024
	Group	Company	Group	Company
	£	£	£	£
Gains
Net foreign exchange gain	8,465,985	141,814	-	-
Losses
Net foreign exchange loss	-	-	(6,385,687)	(258,215)

 

 

The majority of the foreign exchange gains and losses are a result of the revaluation of monetary assets and liabilities in the subsidiary accounts as a result of movements in the Rouble exchange rates.

 

12        Income taxes

 

(a)   tax charged in the statement of profit and loss

	Year to 31 December 2025	Year to 31 December 2024
	Group	Group
	£	£
Current tax expense	(52,331)	(347)
	(52,331)	(347)

 

 

Tax payable by the Group for the year ended 31 December 2025 is £35,512 (2024: £221).

 

There was no tax payable by the Company for the year ended 31 December 2025 (2024: nil) due to the Company having taxable losses.

 

(b)   Reconciliation of the total tax charge

	Year to 31 December 2025	Year to 31 December 2024
	Group	Group
	£	£
Profit/(loss) before tax	7,220,514	(8,647,498)
Current tax at 25%	(1,805,036)	(2,161,874)
Adjusted for the effect of:
Unrecognised tax losses carried forward	1,805,036	2,161,527
Other	52,331	-
Actual tax expense	52,331	347

 

Total accumulated tax losses at 31 December 2025 - £26,771,630, (31 December 2024 - £28,126,784)

 

The Group operates in the following jurisdictions with the following applicable tax rates:

 

Jurisdiction	Year to 31 December 2025	Year to 31 December 2024
United Kingdom	25%	25%
Russia	20%	20%
Cyprus	12.5%	12.5%

 

Tax payable for the year ended 31 December 2025 is £35,512 (2024: £221).

 

 

13        Property, plant and equipment

 

(a)   Group property, plant and equipment

 

	Mining asset	Stripping asset	Plant and machinery	Right of use assets	Other	Total
	£	£	£		£	£
Cost
Balance at 1 January 2024	3,502,511	3,266,565	5,679,385	643,841	32,228	13,124,530
Additions	88,887	778,978	443,032	-	2	1,310,899
Transfer from assets under construction	-	-	319,213	-	-	319,213
Disposals	-	-	(185,968)	-	(164)	(186,132)
Charged to Profit and loss	-	(2,614,205)	-	-	-	(2,614,205)
Exchange differences	(611,026)	(653,202)	(1,135,686)	(128,747)	(3,145)	(2,531,806)
Balance at 31 December 2024	2,980,372	778,136	5,119,976	515,094	28,921	9,422,499
Additions	215,626	395,605	578,993	6,715	1,209	1,198,148
Transfer from assets under construction	-	-	845,073	-	-	845,073
Reclassifications	-	-	675,520	(675,520)	-	-
Charged to Profit and loss	-	(1,041,225)	-	-	-	(1,041,225)
Exchange differences	827,518	263,089	1,731,073	200,921	4,200	3,026,801
Balance at 31 December 2025	4,023,516	395,605	8,950,635	47,210	34,330	13,451,296
Depreciation
Balance at 1 January 2024	(666,811)	-	(1,778,012)	(460,123)	(8,601)	(2,913,547)
Disposals	-	-	185,968	-	164	186,132
Depreciation expense	-	-	(329,776)	(38,732)	(978)	(369,486)
Exchange differences	153,345	-	355,543	92,008	1,721	602,617
Balance at 31 December 2024	(513,466)	-	(1,566,277)	(406,847)	(7,694)	(2,494,284)
Reclassifications	-	-	(541,703)	541,703	-	-
Depreciation expense	-	-	(549,035)	(11,030)	(391)	(560,456)
Exchange differences	(209,807)	-	(529,562)	(164,320)	(2,604)	(906,293)
Balance at 31 December 2025	(723,273)	-	(3,186,577)	(40,494)	(10,689)	(3,961,033)
Carrying amount:
at 31 December 2025	3,300,243	395,605	5,764,058	6,716	23,641	9,490,263
at 31 December 2024	2,466,906	778,136	3,553,699	108,247	21,227	6,928,215

 

 

The Group's right of use assets represents plant and machinery type assets acquired under lease terms.

The stripping asset is also a component of the mining assets; however, this is being shown separate from the mining assets for presentational purposes.

(b)   Assets in the course of construction

		2025	2024
		£	£
Cost
Balance at 1 January		161,131	336,131
Additions		795,109	211,428
Commissioned assets		(845,073)	(319,213)
Exchange differences		54,480	(67,215)
Balance at 31 December		165,647	161,131

 

14        Intangible assets

 

In 2025 and 2024 intangible assets represented only capitalised costs associated with the Group's exploration and evaluation of mineral resources.

		2025	2024
		£	£
Cost
Balance at 1 January		2,761,023	3,148,382
Additions		130,542	221,409
Exchange differences		865,924	(608,768)
Balance at 31 December		3,757,489	2,761,023

 

At 31 December 2025 the Group's intangible asset consisted of the Monchetundra development assets and Nittis-Kumuzhya-Travyanaya (the "NKT") development assets.

The Company did not directly own any intangible assets at 31 December 2025 (2024: nil)

 

15        Subsidiaries

 

Details of the Company's subsidiaries at 31 December 2025 and at 31 December 2024 are as follows:

 

Name of subsidiary	Place of incorporation	Proportion of ordinary shares held	Principal activity
Urals Alluvial Platinum Limited	Lampousa 1, 1095, Nocosia, Cyprus	100%	Holding Company
ZAO Eurasia Mining Service	Office 219/7, 36 Engelsa Street, Yekaterinburg, Sverdlovsk Region, Russian Federation	100%	Holding Company
ZAO Kosvinsky Kamen	1, Pushkina Street, Kytlym Settlement, Karpinsk, Sverdlovsk Region, Russian Federation	68%	Mineral Evaluation
ZAO Terskaya Mining Company	Office 110, 23, Komsomolskaya Street, Monchegorsk, Murmansk Region, Russian Federation	80%	Mineral Evaluation
ZAO Yuksporskaya Mining Company	Office 110, 23, Komsomolskaya Street, Monchegorsk, Murmansk Region, Russian Federation	100%	Mineral Evaluation
OOO Kola Mining	Office 110, 23, Komsomolskaya Street, Monchegorsk, Murmansk Region, Russian Federation	100%	Mineral Evaluation
OOO Kola Nickel	Office 110, 23, Komsomolskaya Street, Monchegorsk, Murmansk Region, Russian Federation	100%	Mineral Evaluation
Eurasia Mining (UK) Limited	142 International House Cromwell Road, London, UK	100%	Dormant company

 

The Group's assets are located in Russia. From 2022 additional sanctions to those which had existed since 2014 are being imposed on certain activities, entities and individuals connected with Russia, which continue to evolve and which are being carefully monitored by the Company in accordance with its sanctions compliance policy, and with the assistance of its external legal advisers. While Eurasia is not an entity connected with Russia, the Company has satisfied itself that neither of its current activities are prohibited under US, UK or EU sanctions rules. Furthermore, the Company does not engage and has not engaged with any sanctioned persons/ entities or agencies.

 

Sanctions introduced by the Russian Federal government have also not affected the Company, although this is being closely monitored. The Company closely monitors all regulatory requirements and changes to the laws, rules and regulations, taking steps whenever necessary to ensure compliance with new legislation.

 

The Company's investments in subsidiaries presented on the basis of direct equity interest and represent the following:

		2025	2024
		£	£
Investment in subsidiaries		1,132,246	1,132,246

 

Investment in subsidiaries represents the Company investments made into its 100% subsidiary Urals Alluvial Platinum Limited (the "UAP"), which in turn controls other subsidiaries within the Group.

 

 

Subsidiaries with material non-controlling interests ("NCI")

 

Summary of non-controlling interest

		2025	2024
		£	£
As at 1 January		(5,262,083)	(4,067,444)
Profit/(loss) attributable to NCI		2,717,603	(2,095,688)
Exchange differences		(1,237,813)	901,049
As at 31 December		(3,782,293)	(5,262,083)

 

 

Non-controlling interest on subsidiary basis

		2025	2024
		£	£
ZAO Kosvinsky Kamen		(2,890,610)	(4,238,774)
ZAO Terskaya Mining Company		(891,683)	(1,023,309)
		(3,782,293)	(5,262,083)

 

 

ZAO Kosvinsky Kamen

		2025	2024
		£	£
Non-current assets		9,701,090	7,046,034
Current assets		5,033,663	4,883,749
Total assets		14,734,753	11,929,783
Non-current liabilities		21,314,059	21,239,646
Current liabilities		445,298	2,085,878
Total liabilities		21,759,357	23,325,524
Net liabilities		(7,024,604)	(11,395,741)
Equity attributable to owners of the parent		(4,133,994)	(7,156,967)
Non-controlling interests		(2,890,610)	(4,238,774)
Profit/(loss) for the year attributable to owners of the parent		5,382,465	(4,096,639)
Profit/(loss) for the year attributable to NCI		2,532,924	(1,927,830)
Profit (loss) for the year		7,915,389	(6,024,469)
Total comprehensive income/(expense) for the year attributable to owners of the parent		3,022,973	(2,377,744)
Total comprehensive income/(expense) for the year attributable to NCI		1,348,164	(1,063,929)
Total comprehensive income/(expense) for the year		4,371,137	(3,441,673)
Net cash outflow from operating activities		(1,604,570)	(3,317,099)
Net cash from/(used in) investing activities		(1,044,224)	1,249,485
Net cash from financing activities		(937,354)	122,959
Net cash (outflow)/inflow		(3,586,148)	(1,944,656)

 

 

 

ZAO Terskaya Mining Company

		2025	2024
		£	£
Non-current assets		3,745,531	2,703,478
Current assets		108,565	176,178
Total assets		3,854,096	2,879,656
Non-current liabilities		3,068,683	3,075,699
Current liabilities		2,147,388	1,538,785
Total liabilities		5,216,071	4,614,484
Net liabilities		(1,361,975)	(1,734,828)
Equity attributable to owners of the parent		(470,292)	(711,519)
Non-controlling interests		(891,683)	(1,023,309)
Profit/(loss) for the year attributable to owners of the parent		738,716	(671,434)
Profit/(loss) for the year attributable to NCI		184,679	(167,858)
Profit (loss) for the year		923,395	(839,292)
Total comprehensive income/(expense) for the year attributable to owners of the parent		241,227	(311,950)
Total comprehensive income/(expense) for the year attributable to NCI		131,626	(130,710)
Total comprehensive income (expense) for the year		372,853	(442,660)
Net cash outflow from operating activities		(28,807)	(944,516)
Net cash used in investing activities		(123,200)	(234,695)
Net cash from financing activities		73,223	501,569
Net cash (outflow)/inflow		(78,784)	(677,642)

 

 

16        Other financial assets

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Current
Advances to related parties	-	29,150,198	-	29,005,853
Loans to other entities	41,648	-	30,561	-
	41,648	29,150,198	30,561	29,005,853

 

The maximum exposure to credit risk at the reporting date is the carrying value of each class of assets mentioned above.

Amounts due from related parties are non-interest bearing and are repayable on demand. No advances were made in 2025.

 

 

17        Inventories

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Platinum concentrate	3,298,541		-	-
Stores	304,731	-	322,597	-
	3,603,272	-	322,597	-

 

Inventories held by the Group are stated at the lower of cost and net realisable value. The inventory recognised as expense is recorded under cost of sales (Note 9).

 

18        Trade and other receivables

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Trade receivables	24	-	948,766	-
Prepayments	120,211	110,090	16,077	8,117
Advances made	217,904	-	-	-
VAT receivable	100,945	26,086	445,525	419,000
Other receivables	225,096	536	72,579	15,808
Due from related parties	-	950,562	-	803,978
	664,180	1,087,274	1,482,947	1,246,903

The fair value of trade and other receivables is not materially different to the carrying values presented. None of the receivables are provided as security or past due.

 

19        Cash and cash equivalents

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Cash at bank	1,469,971	1,464,024	3,682,292	11,737
Cash equivalent: bank trust deposit	1,070,888	-	-	-
	2,540,859	1,464,024	3,682,292	11,737

 

All amounts are short-term. The carrying value of cash and cash equivalents is considered a reasonable approximation of fair value.

 

In January 2025 the Group entered into a bank trust deposit agreement with Raiffeisen bank. This agreement allows the Group to invest via Raiffeisen bank into overnight REPO, which is a liquid investment instrument that can be called back within the same day (due to its overnight nature) on any business day, paid interest of 18.2% p.a. on average in 2025 and is a low risk, i.e., it has the same risk as the risk of keeping cash at Raiffeisen bank.

 

20        Issued capital

		2025	2024
Issued and fully paid ordinary shares with a nominal value of 0.1 pence each
Number		2,951,414,924	2,879,381,734
Nominal value (£)		2,951,415	2,879,382
Issued and fully paid deferred shares  with a nominal value of 4.9 pence each
Number		143,377,203	143,377,203
Nominal value (£)		7,025,483	7,025,483
Share premium
Value (£)		54,500,499	51,670,946
Total issued capital (£)		64,477,397	61,575,811

 

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

 

Deferred shares have attached to them the following rights and restrictions:

- they do not entitle the holders to receive any dividends and distributions;

- they do not entitle the holders to receive notice or to attend or vote at General Meetings of the Company;

- on return of capital on a winding up the holders of the deferred shares are only entitled to receive the amount paid up on such shares after the holders of the ordinary shares have received the sum of 0.1p for each ordinary share held by them and do not have any other right to participate in the assets of the Company.

 

Issue of ordinary share capital in 2025:

	Price in pence per share	Number	Nominal value £
As at 1 January 2025		2,879,381,734	2,879,382
28 March 2025 - Issue of shares	4.03	72,033,188	72,033
		72,033,188	72,033
As at 31 December 2025		2,951,414,922	2,951,415

 

 

21           Share based payments

 

Warrants outstanding at the end of the year have the following expiry date and exercise prices:

 

Expiry date		Exercise price in pence per share	Number of instruments as at 31 December 2025	Number of instruments as at 31 December 2024
Warrants
30 June 2025		26.0	-	41,551,563
10 December 2026		4.00	54,347,826	54,347,826
02 April 2027		8.74	72,033,188	-
Weighted average exercise price			126,381,014	95,899,389
Total contingently issuable shares at 31 December			126,381,014	95,899,389

 

All the listed warrants were exercisable as at 31 December 2025 (2024 - all).

72,033,188 warrants were granted by the Group in 2025 (2024: 54,347,826 warrants).

Movement in number of warrants outstanding and their related weighted average exercise prices are as follows:

 

(Price expressed in pence per share)	2025		2024
	Average exercise price	No. of warrants	Average exercise price	No. of warrants
Warrants
At 1 January	13.53	95,899,389	26.28	94,858,314
Expired	26.00	(41,551,563)	26.50	(53,306,751)
Granted	8.74	72,033,188	4.00	54,347,826
At 31 December	6.70	126,381,014	13.53	95,899,389

 

The fair value of warrants granted during the year and the prior year were immaterial.

 

 

22        Other reserves

 

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Capital redemption reserve	3,539,906	3,539,906	3,539,906	3,539,906
Foreign currency translation reserve:
At 1 January	3,328,933	-	1,008,964	-
Recognised in the period	(3,020,231)	-	2,319,969	-
At 31 December	308,702	-	3,328,933	-
	3,848,608	3,539,906	6,868,839	3,539,906

 

The capital redemption reserve was created as a result of a share capital restructure in earlier years.

The foreign currency translation reserve represents exchange differences relating to the translation from the functional currencies of the Group's foreign subsidiaries into GBP.

23        Borrowings

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Current borrowings
Shares to be issued	745,450	-	-	-
Unsecured loan	-	-	262,706	90,199
	745,450	745,450	262,706	90,199

 

In 2024, the Group entered into a number of unsecured loan facilities to borrow RUB 55.3 million (GBP 215,502 at the rate exchange rate as at 31 December 2024) at 20% per annum. The loans were partly repaid in 2024, the remaining amount of RUB 24.5 million (GBP 172,507 at the exchange rate as at 31 December 2024) was repaid in January 2025.

 

On 6 September 2024 the Company entered into a Trade Finance Facility with Sanderson Capital Partners Ltd ("Sanderson") to borrow up to GBP 2,500,000. By end of 2025 the Company had drawn GBP 729,000 of the available facility and incurred GBP 312,500 of arrangement fees and GBP 46,450 of drawdown fees. The facility is non-interest bearing, the lender has the right to convert the borrowings drawn down into ordinary shares of the company.

 

The Company received notice from Sanderson requesting conversion of outstanding borrowings of £745,450 into shares during the year. As at 31 December 2025, the shares had not been issued.

 

 

 

24        Trade and other payables

 

		2025			2024
	Group		Company	Group		Company
	£		£	£		£
Trade payables	167,012		-	1,045,818		-
Accruals	434,651		387,806	198,622		118,194
Social security and other taxes	8,281		-	760,759		-
Other payables	16,097		161,333	96,160		930,486
	626,041		549,139	2,101,359		1,048,680

 

The fair value of trade and other payables is not materially different to the carrying values presented. The above listed payables were all unsecured.

 

25        Provisions

		2025	2024
		£	£
Long term provision:
Environment rehabilitation		396,880	250,695
Short term provision:
Environment rehabilitation		61,488	157,845
		458,368	408,540

 

Movement in provision is as follows

		2025	2024
		£	£
At 1 January		408,540	397,747
Recognised in the period		(131,016)	40,374
Unwinding of discount and effect of changes in the discount rate		46,031	67,766
Exchange differences		134,813	(97,347)
At 31 December		458,368	408,540

 

Provision is made for the cost of restoration and environmental rehabilitation of the land disturbed by the West Kytlim mining operations, based on the estimated future costs using information available at the reporting date.

 

The provision is discounted using a risk-free discount rate of from 12.85% to 14.35% (2024: 15.01% to 18.91%) depending on the commitment terms, attributed to the Russian Federal Bonds.

 

Provision is estimated based on the sub-areas within general West Kytlim mining licence the Company has carried down its operations on by the end of the reporting period. Timing is stipulated by the forestry permits issued at the pre-mining stage for each of sub-areas.

 

26        Related party transactions

 

Transactions with subsidiaries

In the normal course of business, the Company provides funding to its subsidiaries for reinvestment into exploration projects.

		2025	2024
		£	£
Receivables from subsidiaries		950,562	803,978
Loans provided to subsidiaries		29,150,198	29,005,853
Service charges to subsidiary		120,000	120,000

 

The amounts owed by subsidiaries are unsecured and receivable on demand.

 

Transactions with key management personnel

The Group considers that the key management personnel are the Directors of the Company.

 

The following amounts were paid and/or accrued to the Directors of the Company who held office at 31 December 2025:

		2025	2024
		£	£
Short-term benefits		376,329	328,382
		376,329	328,382

 

 

The remuneration of the Directors is determined by the remuneration committee having regard to the performance of individuals and market trends. No pension contribution has been made for the Directors in 2025 (2024: nil).

 

An analysis of remuneration for each Director of the Company during 2025:

Name	Position	Salaries, bonuses and allowances	Directors fees	Accrued salary/fees	Other	Total
		£	£		£	£
C. Schaffalitzky	Executive Chairman	40,000	-	80,000	3,000	123,000
T. Abdikeev	Non-Executive Director	-	23,000	91,996	-	114,996
I. Rawlinson	Non-Executive Director	-	26,333	22,000	-	48,333
K. Kosaka	Non-Executive Director	-	23,000	22,000	-	45,000
A. Matyushok	Non-Executive Director	-	23,000	22,000	-	45,000
		40,000	95,333	237,996	3,000	376,329

 

 

An analysis of remuneration for each Director of the Company during 2024:

Name	Position	Salaries, bonuses and allowances	Directors fees	Total
		£	£	£
C. Schaffalitzky	Executive Chairman	120,000	-	120,000
T. Abdikeev	Non-Executive Director	50,750	-	50,750
I. Rawlinson	Non-Executive Director	-	55,000	55,000
K. Kosaka	Non-Executive Director	12,632	45,000	57,632
A. Matyushok	Non-Executive Director	-	45,000	45,000
		183,382	145,000	328,382

 

With effect from 1 May 2025, the directors agreed to defer payment of their remuneration/fees until such time as the Company has completed the sale of all its assets, located in Russia. As at 31 December 2024, outstanding remuneration/fees which were payable to the directors amounted to GBP 237,996 (2024: Nil).

27        Earnings (loss) per share

 

Basic earnings/(loss) per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

		2025	2024
		£	£
Earnings/(loss) attributable to equity holders of the Company		4,450,211	(6,552,157)
Weighted average number of ordinary shares in issue		2,934,442,720	2,865,450,919
Basic earnings/(loss) per share (pence)		0.15	(0.23)

 

Potential number of shares that could be issued following exercise of warrants:

		2025	2024
		£	£
Earnings/(loss) attributable to equity holders of the Company		4,450,211	(6,552,157)
Reversal of interest expense on convertible debt (net of tax)		326,251	-
Adjusted profit/(loss)		4,776,462	(6,552,157)
Weighted average number of ordinary shares in issue		2,934,442,720	2,865,450,919
Warrants		126,381,014	-
Assumed conversion of convertible debt		29,818,000	-
Weighted average number of ordinary shares for diluted earnings per share		3,090,641,734	2,865,450,919
Basic earnings/(loss) per share (pence)		0.16	(0.23)

 

There was no dilutive effect of share options or warrants in 2024 as the Group was in a loss position.

 

 

28        Risk management objectives and policies

Financial risk management objectives

The Group's operations are limited at present to investing in entities that undertake mineral exploration. All investments in exploration are capitalised on project basis, which are funded by shareholders funds and fixed rate borrowings. The Group's activities expose it to a variety of financial risks including currency, fair value and liquidity risk. The Group seeks to minimise the effect of these risks on a daily basis, though due to its limited activities the Group has not applied policy of using any financial instruments to hedge these risks exposures. Risk management is carried out by the Company under close board supervision.

Foreign currency risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollars and Russian Roubles. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations. The Group's policy is not to enter into currency hedging transactions.

 

The following significant exchange rates have been applied during the year:

 

GBP	Average rate		Reporting date spot rate
	2025	2024	2025	2024
USD	1.319	1.278	1.348	1.251
RUB	110.254	118.607	106.116	141.994

 

Sensitivity analysis

A reasonably possible strengthening (weakening) of the USD and RUB, as indicated below, against GBP at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss before taxes by the amounts shown below. The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

 

	Strengthening		Weakening
	Equity	Profit or loss	Equity	Profit or loss
	£	£	£	£
31 December 2025
USD (5% movement)	(1,163,932)	20,014	1,053,082	(18,109)
RUB (5% movement)	525,849	236,627	(188,539)	443,211

 

 

	Strengthening		Weakening
	Equity	Profit or loss	Equity	Profit or loss
	£	£	£	£
31 December 2024
USD (5% movement)	185,245	(89)	(167,603)	81
RUB (5% movement)	1,021,834	373,370	(924,517)	(337,810)

Interest rate risk

As the Group has no significant interest-bearing assets, the group's operating cash flows are substantially independent of changes in market interest rates.

The Group has interest bearing loans disclosed in the note 23. All such liabilities are at a fixed rate of interest.

 

Fair values

In the opinion of the Directors, there is no significant difference between the fair values of the Group's and the Company's assets and liabilities and their carrying values.

Credit risk

The Group's exposure to credit risk is limited to the carrying amount of financial assets recognised at the consolidated statement of financial position date, as summarised below:

 

		2025		2024
	Note	Group	Company	Group	Company
		£	£	£	£
Current loans and advances	16	41,648	29,150,198	30,561	29,005,853
Trade and other receivables	18	443,024	951,098	1,021,415	819,786
Cash and cash equivalents	19	2,540,859	1,464,024	3,682,292	11,737
		3,025,531	31,565,320	4,734,268	29,837,376

 

The Group's risk on cash at bank is mitigated by holding of the majority of funds at the banks having good rating. 

No significant amounts are held at banks rated less than "BBB". Cash is held either on current account or on short-term deposit at floating rate. Interest is determined by the relevant prevailing base rate. The fair value of cash and cash equivalents at 31 December 2025 and 2024 are not materially different from its carrying value.

 

Recoverability of the loans is dependent on the borrower's ability to transform them into cash generating units through discovery of economically recoverable reserves and their development into profitable production.

 

The Company continuously monitors defaults by the counterparties, identified either individually or by group, and incorporates this information into its credit risk control. Management considers that all of the above financial assets that are not impaired are of good credit quality.

 

Liquidity risk

Ultimate responsibility for liquidity risk management rests with the board of Directors, which has built an appropriate liquidity risk management framework for the management of the Group's short, medium and long term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, borrowing facilities, cash and cash equivalents by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

 

Commodity Risk

The Group's financial performance, project economics and asset valuations are influenced by the market prices of platinum group metals, gold, nickel, copper and other commodities relevant to its operations and development projects. A sustained decline in commodity prices could adversely affect the economic viability of the Group's assets, reduce future revenues and impact the attractiveness of development and investment opportunities.

 

The Group closely monitors commodity markets, including supply and demand fundamentals, pricing trends and broader industry developments affecting platinum group metals and battery metals. Management regularly assesses the potential impact of commodity price movements on the Group's operations, development plans and strategic objectives and considers appropriate responses where necessary.

The management believes that the Group's exposure to a diversified basket of commodities, including platinum group metals, nickel and copper, provides some degree of resilience against fluctuations in individual commodity prices. The Group also continues to evaluate opportunities that may further diversify its asset base and reduce commodity concentration risk.

 

 

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities.

		Current	Non-current
		within 12 months	1 to 2 years	later than 2 years
		£	£	£
2025
Lease liabilities		17,849	-	-
Trade and other payables		626,041	-	-
		643,890	-	-
2024
Lease liabilities		26,105	-	-
Trade and other payables		2,101,359	-	-
		2,127,464	-	-

 

 

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities.

	Current	Non-current
	within 12 months	1 to 2 years	later than 2 years
	£	£	£
2025
Borrowings	745,450
Trade and other payables	626,041	-	-
	1,371,491	-	-
2024
Borrowings	90,199
Trade and other payables	1,048,680	-	-
	1,138,879	-	-

 

The tables above have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

The contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities at the statement of financial position date.

 

Capital risk

At present the Group's capital management objective is to ensure the Group's ability to continue as a going concern.

Capital is monitored on the basis of its carrying amount and summarised as follows:

	2025		2024
	Group	Company	Group	Company
	£	£	£	£
Total borrowings	745,450	745,450	262,706	90,199
Less cash and cash equivalents (Note 19)	(2,540,859)	(1,464,024)	(3,682,292)	(11,737)
Net debt	-	-	-	78,462
Total equity attributable to owners of the Parent	22,166,503	31,539,153	17,834,937	30,257,860
Total capital	22,166,503	31,539,153	17,834,937	30,257,860
Gearing	0%	0%	0%	0.26%

Capital structure is managed depending on economic conditions and risk characteristics of underlying assets. In order to maintain or adjust capital structure, the Group may issue new shares and debt financial instruments or sell assets to reduce debt.

 

29        Subsequent events

 

There have been no material events subsequent to the reporting date which impact the financial statements.