ANNUAL%20REPORT%202015%20eng

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Notes to Consolidated Financial Statements 21 TRADE AND OTHER RECEIVABLES (Continued) (c) Other receivables (Continued) Note: (i) (ii) (iii) (iv) Amount due from related parties are unsecured, interest-free and have no fixed repayment terms (see Note 32(a)). At 31 December 2015 and 2014, prepayments and deposits mainly represent the prepayments made to the Group’s mining contractor. VAT and other tax receivables include amounts that have been accumulated to date in certain subsidiaries and were due from the GoM Taxation Authority. Based on current available information the Group anticipates full recoverability of such amounts. Further details are stated in Note 30(b). It represented the compensation amount receivable from the GoM upon the termination of a Build-Operate- Transfer Concession Agreement (the “Concession Agreement”) signed on 6 May 2013, relating to the railway base infrastructure between Ukhaa Khudag coking coal mine and Gashuun Sukhait border check point of Mongolia (the “UHG-GS Railway”), after taking into account of liabilities assumed by the GoM. The Group has been negotiating with the GoM regarding the potential investment in a railway project of the GoM and the compensation amount could be converted into equity of a special purpose enterprise to be established by the GoM to implement the railway project and/or reimbursed. Subsequent to the balance sheet date, and based on the contracted exchange rate, the Ministry of Finance (“MOF”), representative designated by GoM, issued MNT denominated promissory notes with total face value of approximately MNT120.6 billion (equivalent to USD60,336,000) to the Group with regards to the settlement of this receivables in relation to the termination of the Concession Agreement. Until the issue of the consolidated financial statements, the Group has received all the above mentioned MNT denominated promissory notes, and as such its rights for equity conversion into the railway project shall deemed as terminated. (v) At 31 December 2015, this item mainly represented the interest receivables on deposit. At 31 December 2014 this item mainly represented the reimbursement receivables due from Erdenes MGL LLC of USD8.4 million. All other receivables were aged within one year and expected to be recovered or expensed off within one year. 22 CASH AND CASH EQUIVALENTS 2015 2014 USD’000 USD’000 Cash in hand 13 48 Cash at bank 50,689 252,808 Cash at bank and in hand 50,702 252,856 Less: time deposits with original maturity over three months (50,000) (50,000) Cash and cash equivalents in the consolidated cash flow statement 702 202,856 As at 31 December 2015, certain of the Group’s borrowings were secured by the Group’s cash at bank of USD39,000 (31 December 2014: USD7,297,000) (see Note 23). Annual Report 2015 167
Notes to Consolidated Financial Statements 23 BORROWINGS (a) The Group’s long-term interest-bearing borrowings comprise: 2015 2014 USD’000 USD’000 Bank loan – secured 144,818 241,636 – unsecured 40,000 40,000 Less: Current portion of long-term borrowings less amortised transaction costs (182,631) (114,818) Less: Unamortised transaction costs (2,187) (4,840) — 161,978 As at 31 December 2015, the Group’s long-term interest-bearing borrowings from European Bank for Reconstruction and Development, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V., and Deutsche Investitions-und Entwicklungsgesellschaft mbH were due within one year, which were with principal amount of USD40,909,000 (2014: USD81,818,000), USD6,545,000 (2014: USD13,091,000) and USD4,364,000 (2014: USD8,727,000), respectively, bearing interest of one month LIBOR + 3.5%~3.75% per annum, and were secured by the Group’s property, plant and equipment (see Note 13) and cash at bank (see Note 22). As at 31 December 2015, the Group’s long-term interest-bearing borrowings from BNP Paribas, Singapore Branch and Industrial and Commercial Bank of China Limited (the “BNP and ICBC Facility”) of USD93,000,000 (2014: USD138,000,000) were due within one year, which were with principal amount, bearing interest of 3 months LIBOR + 6.00% per annum, and were secured by the Group’s cash at bank (see Note 22) and inventories (see Note 20). The attributable transaction cost amounts to USD2,008,000 as at 31 December 2015. The BNP Paribas facility was initially contracted with Standard Bank Plc. On 18 December 2013, the Standard Bank Plc transferred all of its rights, title and interest in (and obligations under) the facility to BNP Paribas, Singapore Branch. On 5 March 2014, the facility was refinanced to a facilities agreement with two international banks as arrangers and original lenders, BNP Paribas Singapore Branch and Industrial and Commercial Bank of China Limited. The BNP and ICBC Facility is a coal pre-export loan facility of USD150,000,000 bearing interest of LIBOR + 6.00% per annum. In March 2014, the Group refinanced short-term loans of USD40,000,000 into a revolving credit facility, and extended its maturity date to 20 March 2015 with an interest of 10.0% per annum. On 31 December 2014, the maturity date was extended to 20 March 2016, and interest for the extension period is 11.20% per annum. On 21 March 2016, the maturity date was further extended to 20 June 2016, and interest for the extension period is 11.20% per annum. 168 Annual Report 2015
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(Incorporated in the Cayman Islands
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Company Profile Mongolian Mining Co
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Corporate Information BOARD OF DIRE
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Directors and Senior Management BOA
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Group Structure 14 Annual Report 20
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Management Discussion and Analysis
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Sustainability Report OUR APPROACH
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Sustainability Report Fair operatin
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Sustainability Report Figure 3. HR
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Sustainability Report The Company
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Sustainability Report In September
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Sustainability Report Figure 5. LTI
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Sustainability Report Biodiversity
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Sustainability Report In 2015, appr
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Sustainability Report OUR COMMUNITY
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Corporate Governance Report BOARD O
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Directors’ Report The Directors s
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Directors’ Report Risk Management
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Directors’ Report FINANCIAL STATE
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Directors’ Report DIRECTORS’ SE
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Directors’ Report DIRECTORS’ AN
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Directors’ Report The basis of el
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Directors’ Report Details of the
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Directors’ Report RIGHTS TO PURCH
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Directors’ Report ER pledged its
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Directors’ Report At the time of
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Independent Auditor’s Report OPIN
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Consolidated Statement of Profit or
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Consolidated Statement of Financial
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Consolidated Cash Flow Statement Fo
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