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Central Asia Metals PLC Proposed acquisition of -68-

22 Sep 2017 6:01 am

Movement in allowance for impairment for other receivables is as follows:
 
                                                                                                      2016     2015 
                                                                                                    --------  ------ 
 At 1 
  January......................................................................................... 
  .....................                                                                                6,810   6,810 
 Write-off previously impaired                                                                       (6,810)       - 
 receivables........................................................... 
                                                                                                    --------  ------ 
 At 31 
  December........................................................................................ 
  ...............                                                                                          -   6,810 
                                                                                                    ========  ====== 
 

Amounts charged to the allowance account are generally provisioned when there is no expectation of recovering additional cash, or overdue by 180 days or more. During 2016, the Lynx Group wrote off advance payments of $579,510 due to their inability to be collected.

Write off of prepaid expenses and advance payments:
 
                                                                                                      2016     2015 
                                                                                                    --------  ------ 
 Over 180 days....................................................................................         -       - 
 Over 1 
  year........................................................................................       551,794   6,810 
                                                                                                    --------  ------ 
                                                                                                     551,794   6,810 
                                                                                                    ========  ====== 
 

According to the Lynx Group's policies the following factors are taken into consideration when assessing the impairment of receivables: receivables above 90 days or more, frequent late payments, high risk customers and customer with financial difficulties.

The carrying amounts of the Lynx Group's trade receivables are denominated in the following currencies:
 
                                                                                                 2016        2015 
                                                                                              ----------  ---------- 
 MKD....................................................................................... 
  ......                                                                                               -         900 
 USD....................................................................................... 
  .......                                                                                      3,691,173   5,304,324 
                                                                                              ----------  ---------- 
                                                                                               3,691,173   5,305,224 
                                                                                              ==========  ========== 
 

The carrying amounts of the Lynx Group's other financial receivables are denominated in the following currencies:
 
                                                                                                 2016        2015 
                                                                                              ----------  ---------- 
 MKD....................................................................................... 
  ......                                                                                       1,030,513   1,282,665 
 EUR....................................................................................... 
  .......                                                                                        256,773      85,296 
 USD........................................................................................   1,864,552           - 
 ...... 
 RUB........................................................................................      61,529           - 
 ...... 
 SEK....................................................................................... 
  .......                                                                                              -     397,399 
                                                                                              ----------  ---------- 
                                                                                               3,213,367   1,765,360 
                                                                                              ==========  ========== 
 

The fair value of the trade receivables and the other financial receivables at the balance sheet date is the same as their carrying value.
   20.       Cash and cash equivalents 
 
                                                                                                2016        2015 
                                                                                            -----------  ---------- 
 Bank deposits...........................................................................    14,625,335   6,531,333 
 Bank accounts in domestic currency..........................................                13,054,776     673,787 
 Bank accounts in foreign currency.............................................               1,614,090      86,884 
                                                                                            -----------  ---------- 
                                                                                             29,294,201   7,292,004 
                                                                                            ===========  ========== 
 

Bank deposit in amount of $14,625,335 represents time deposit in Ohridska Banka AD Skopje with validity of 13 days calculated from the date of the loan payment with no interest and was used as a collateral for obtaining short-term borrowing. Due to the economic substance of the restriction and the availability of the cash funds after the maturity, the Lynx Group classified the bank deposits as cash and cash equivalent as at 31 December 2016.

The carrying amounts of the cash and cash equivalents are denominated in the following currencies:
 
                                                                                                 2016        2015 
                                                                                             -----------  ---------- 
 MKD...................................................................................... 
  ...                                                                                         14,801,010   6,598,747 
 EUR...................................................................................... 
  .....                                                                                           15,290      19,470 
 USD...................................................................................... 
  .....                                                                                       14,477,901     673,787 
                                                                                              29,294,201   7,292,004 
                                                                                             ===========  ========== 
 
   21.       Capital and reserves 

Capital

Paid-in capital

At 31 December 2016 and 2015, the Lynx Group has paid-in capital, which amounts to $97,454,015 and $173,454,015.

In February 2016, Lynx Resources bought back a $1,000,000 preference share from one of the shareholders.

In October 2016, Lynx Resources distributed a $75,000,000 dividend to its shareholders by way of capital reduction.

Other reserves-Foreign currency translation

Exchange differences arising on translation of the foreign controlled entity are recognized in other comprehensive income as described in Note 2.4 and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.

The following table shows a breakdown of the balance sheet line item 'other reserves' and the movements in these reserves during the year:
 
                                                                                                              Other 
                                                                                                             reserves 
                                                                                                          ------------ 
 At 19 June 2015                                                                                                     - 
 Exchange differences on foreign currency 
  translation.............................................                                                   (771,695) 
 At 31 December 
  2015......................................................................................                 (771,695) 
                                                                                                          ------------ 
 At 1 January 
  2016...............................................................................................        (771,695) 
 Exchange differences on foreign currency 
  translation: 
   Intercompany 

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September 22, 2017 02:01 ET (06:01 GMT)

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