Wrap Text
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2012
Atlatsa Resources Corporation
(previously Anooraq Resources Corporation)
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ATL
NYSE AMEX share code: ATL
ISIN: CA0494771029
(”Atlatsa” or the “Company”)
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED 30 JUNE 2012
(Unaudited)
(Expressed in Canadian Dollars unless otherwise stated)
Condensed Consolidated Interim Statements of Financial Position
As at 30 June 2012
(Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
Audited
Note 30 June 2012 31 December
2011
Assets
Non-current assets
Property, plant and 5 788,589,343 798,924,420
equipment
Capital work-in-progress 6 24,972,665 20,826,290
Intangible assets 7 1,364,099 1,895,205
Mineral property interests 8,234,097 8,268,783
Goodwill 10,880,593 10,994,115
Platinum producers’ 3,177,578 2,927,591
environmental trust
Other non-current assets 336,849 367,825
Total non-current assets 837,555,224 844,204,229
Current assets
Assets classified as held 4,066,630 4,101,654
for sale
Inventories 762,116 787,084
Trade and other receivables 28,576,337 27,048,591
Current tax receivable 134,704 136,109
Cash and cash equivalents 14,895,733 15,945,008
Restricted cash 557,620 786,291
Total current assets 48,993,140 48,804,737
Total assets 886,548,364 893,008,966
Equity and Liabilities
Equity
Share capital 71,967,083 71,967,083
Treasury shares (4,991,726) (4,991,726)
Convertible preference 162,910,000 162,910,000
shares
Foreign currency translation (10,398,512) (11,238,333)
reserve
Share-based payment reserve 24,521,752 24,042,711
Accumulated loss (288,054,751) (245,448,316)
Total equity attributable to (44,046,154) (2,758,581)
equity holders of the Group
Non-controlling interest (63,459,449) (25,326,683)
Total equity (107,505,603) (28,085,264)
Liabilities
Non-current liabilities
Loans and borrowings 8 820,839,980 744,456,487
Deferred taxation 137,365,875 144,032,213
Provisions 8,640,406 8,383,708
Total non-current 966,846,261 896,872,408
liabilities
Current liabilities
Trade and other payables 26,322,629 23,125,587
Short-term portion of loans 885,077 1,096,235
and borrowings
Total current liabilities 27,207,706 24,221,822
Total liabilities 994,053,967 921,094,230
Total equity and liabilities 886,548,364 893,008,966
Approved by the Board of Directors on 14 August 2012
Signed by:
Harold Motaung (Director)
Patrick Cooke (Director)
Condensed Consolidated Interim Statements of Comprehensive Loss
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 June
2012 2011
Revenue 38,732,962 35,916,397
Cost of sales (52,399,218) (56,212,465)
Gross loss (13,666,256) (20,296,068)
Administrative
expenses (4,102,789) (10,294,361)
Other income - 3,947
Operating loss (17,769,045) (30,586,482)
Finance income 120,650 233,652
Finance expense (23,227,212) (25,078,380)
Net finance expense (23,106,562) (24,844,728)
Loss before income
tax (40,875,607) (55,431,210)
Income tax 464,434 9,285,054
Loss for the period (40,411,173) (46,146,156)
Other comprehensive
income/(loss)
Foreign currency
translation
differences for
foreign operations 3,418,133 (853,472)
Effective portion of
changes in fair
value of cash flow
hedges - 9,054
Reclassification to
profit or loss on
settlement of cash
flow hedge - 2,521,654
Other comprehensive
income/(loss) for
the period, net of
income tax 3,418,133 1,677,236
Total comprehensive
loss for the period (36,993,040) (44,468,920)
Loss attributable
to:
Owners of the
Company (21,068,853) (28,244,686)
Non-controlling
interest
(19,342,320) (17,901,470)
Loss for the period
(40,411,173) (46,146,156)
Total comprehensive
loss attributable
to:
Owners of the
Company (19,678,645) (26,386,888)
Non-controlling
interest
(17,314,395) (18,082,032)
Total comprehensive
loss for the period
(36,993,040) (44,468,920)
Note Six months ended 30 June
2012 2011
Revenue 72,811,584 66,614,625
Cost of sales (105,821,365 (103,764,020)
)
Gross loss (33,009,781) (37,149,395)
Administrative (8,181,714) (14,599,479)
expenses
Other income 59,381 54,238
Operating loss (41,132,114) (51,694,636)
Finance income 260,001 427,820
Finance expense (46,048,448) (48,331,003)
Net finance expense (45,788,447) (47,903,183)
Loss before income (86,920,561) (99,597,819)
tax
Income tax 5,241,927 17,375,230
Loss for the period (81,678,634) (82,222,589)
Other comprehensive
income/(loss)
Foreign currency
translation 1,764,794 (7,007,453)
differences for
foreign operations
Effective portion
of changes in fair - 1,602,501
value of cash flow
hedges
Reclassification to
profit or loss on - 2,521,654
settlement of cash
flow hedge
Other comprehensive
income/(loss) for 1,764,794 (2,883,298)
the period, net of
income tax
Total comprehensive (79,913,840) (85,105,887)
loss for the period
Loss attributable
to:
Owners of the (42,606,435) (46,889,058)
Company
Non-controlling (39,072,199) (35,333,531)
interest
Loss for the period (81,678,634) (82,222,589)
Total comprehensive
loss attributable
to:
Owners of the (41,781,074) (47,167,056)
Company
Non-controlling (38,132,766) (37,938,831)
interest
Total comprehensive (79,913,840) (85,105,887)
loss for the period
Condensed Consolidated Interim Statements of Changes in Equity
For the period ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Share Capital Treasury Convertible
Shares preference
shares
For the period ended 30 June 2011
Balance at 1 January 2011 71,852,588 (4,991,726) 162,910,000
Total comprehensive income/(loss) for
the period
Loss for the period - - -
Other comprehensive income/(loss)
Foreign currency translation - - -
differences
Effective portion of changes in - - -
fair value of cash flow hedges, net
of tax
Reclassification to profit or loss - - -
on settlement of cash flow hedge
Total other comprehensive loss - - -
Total comprehensive loss for the - - -
period
Transactions with owners, recorded
directly in equity
Contributions by and distributions to
owners
Common shares issued 114,495 - -
Share-based payment transactions - - -
Total contributions by and 114,495 - -
distributions to owners
Balance at 30 June 2011 71,967,083 (4,991,726) 162,910,000
For the period ended 30 June 2012
Balance at 1 January 2012 71,967,083 (4,991,726) 162,910,000
Total comprehensive income/(loss) for
the period
Loss for the period - - -
Other comprehensive income/(loss)
Foreign currency translation - - -
differences
Total comprehensive income/(loss) for - - -
the period
Transactions with owners, recorded
directly in equity
Contributions by and distributions to
owners
Share-based payment transactions - - -
Total contributions by and - - -
distributions to owners
Balance at 30 June 2012 71,967,083 (4,991,726) 162,910,000
Foreign Share-based
currency payment
translation reserve
reserve
reserve
For the period ended 30 June 2011
Balance at 1 January 2011 (5,197,843) 22,032,571
Total comprehensive income/(loss) for the
period
Loss for the period - -
Other comprehensive income/(loss)
Foreign currency translation differences (4,407,702) 5,549
Effective portion of changes in fair - -
value of cash flow hedges, net of tax
Reclassification to profit or loss on - -
settlement of cash flow hedge
Total other comprehensive loss (4,407,702) 5,549
Total comprehensive loss for the period (4,407,702) 5,549
Transactions with owners, recorded directly
in equity
Contributions by and distributions to
owners
Common shares issued - (51,495)
Share-based payment transactions - 1,640,996
Total contributions by and - 1,589,501
distributions to owners
Balance at 30 June 2011 (9,605,545) 23,627,621
For the period ended 30 June 2012
Balance at 1 January 2012 (11,238,333) 24,042,711
Total comprehensive income/(loss) for the
period
Loss for the period - -
Other comprehensive income/(loss)
Foreign currency translation differences 839,821 (14,460)
Total comprehensive income/(loss) for the 839,821 (14,460)
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to
owners
Share-based payment transactions - 493,501
Total contributions by and distributions to - 493,501
owners
Balance at 30 June 2012 (10,398,512) 24,521,752
Hedging Accumulated
reserve loss
For the period ended 30 June 2011
Balance at 1 January 2011 (4,124,155) (163,519,502
)
Total comprehensive income/(loss) for the period
Loss for the period - (46,889,058)
Other comprehensive income/(loss)
Foreign currency translation differences - -
Effective portion of changes in fair value of 1,602,501 -
cash flow hedges, net of tax
Reclassification to profit or loss on 2,521,654 -
settlement of cash flow hedge
Total other comprehensive loss 4,124,155 -
Total comprehensive loss for the period 4,124,155 (46,889,058)
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Common shares issued - -
Share-based payment transactions - -
Total contributions by and distributions to - -
owners
Balance at 30 June 2011 - (210,408,560
)
For the period ended 30 June 2012
Balance at 1 January 2012 - (245,448,316
)
Total comprehensive income/(loss) for the period
Loss for the period - (42,606,435)
Other comprehensive income/(loss)
Foreign currency translation differences - -
Total comprehensive income/(loss) for the period - (42,606,435)
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Share-based payment transactions - -
Total contributions by and distributions to - -
owners
Balance at 30 June 2012 - (288,054,751
)
Total Non- Total
controlling
interest
For the period ended 30 June 2011
Balance at 1 January 2011 78,961,933 42,404,014 121,365,947
Total comprehensive income/(loss) for the
period
Loss for the period (46,889,058) (35,333,531) (82,222,589)
Other comprehensive income/(loss)
Foreign currency translation (4,402,153) (2,605,300) (7,007,453)
differences
Effective portion of changes in fair 1,602,501 - 1,602,501
value of cash flow hedges, net of tax
Reclassification to profit or loss on 2,521,654 - 2,521,654
settlement of cash flow hedge
Total other comprehensive loss (277,998) (2,605,300) (2,883,298)
Total comprehensive loss for the period (47,167,056) (37,938,831) (85,105,887)
Transactions with owners, recorded
directly in equity
Contributions by and distributions to
owners
Common shares issued 63,000 - 63,000
Share-based payment transactions 1,640,996 - 1,640,996
Total contributions by and 1,703,996 - 1,703,996
distributions to owners
Balance at 30 June 2011 33,498,873 4,465,183 37,964,056
For the period ended 30 June 2012
Balance at 1 January 2012 (2,758,581) (25,326,683) (28,085,264)
Total comprehensive income/(loss) for the
period
Loss for the period (42,606,435) (39,072,199) (81,678,634)
Other comprehensive income/(loss)
Foreign currency translation 825,361 939,433 1,764,794
differences
Total comprehensive income/(loss) for the (41,781,074) (38,132,766) (79,913,840)
period
Transactions with owners, recorded
directly in equity
Contributions by and distributions to
owners
Share-based payment transactions 493,501 - 493,501
Total contributions by and 493,501 - 493,501
distributions to owners
Balance at 30 June 2012 (44,046,154) (63,459,449) (107,505,603
)
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30
June
2012 2011
Cash flows
from operating
activities
Cash utilised 9 (11,516,713) (19,797,449)
by operations
Interest 67,469 186,561
received
Interest paid (39) (3,030)
Taxation paid (34,604) -
Cash utilised (11,483,887) (19,613,918)
by operating
activities
Cash flows
from investing
activities
Acquisition of 5 - -
property,
plant and
equipment
Acquisition of 6 (12,640,335) (6,714,422)
capital-work-
in-progress
Acquisition of 7 - (244,595)
intangible
assets
Investment in (117,691) (300,028)
environmental
trusts
Cash utilised (12,758,026) (7,259,045)
by investing
activities
Cash flows
from financing
activities
Settlement of 8 - (3,691,604)
interest rate
swap
Funding loan 8 - 3,691,604
raised – RPM
Long term 23,370,857 23,722,587
borrowings
raised – OCSF
Repayment of (436,082) (492,311)
other loans
Common shares - -
issued
Cash generated 22,934,775 23,230,276
from financing
activities
Effect of
foreign
currency
translation (641,576) 91,474
Net decrease (1,948,714) (3,551,213)
in cash and
cash
equivalents
Cash and cash 16,844,447 22,791,239
equivalents,
beginning of
period
Cash and cash 14,895,733 19,240,026
equivalents,
end of period
Note Six months ended 30 June
2012 2011
Cash flows
from operating
activities
Cash utilised 9 (19,133,465) (21,590,854)
by operations
Interest 150,935 331,442
received
Interest paid (84) (528,340)
Taxation paid (34,604) -
Cash utilised (19,017,218) (21,787,752)
by operating
activities
Cash flows
from investing
activities
Acquisition of 5 (2,664) -
property,
plant and
equipment
Acquisition of 6 (19,635,545) (14,488,974)
capital-work-
in-progress
Acquisition of 7 - (244,595)
intangible
assets
Investment in (239,923) (300,028)
environmental
trusts
Cash utilised (19,878,132) (15,033,597)
by investing
activities
Cash flows
from financing
activities
Settlement of 8 - (3,691,604)
interest rate
swap
Funding loan 8 - 3,691,604
raised – RPM
Long term 38,636,594 31,981,790
borrowings
raised – OCSF
Repayment of (655,670) (492,311)
other loans
Common shares - 63,000
issued
Cash generated 37,980,924 31,552,479
from financing
activities
Effect of
foreign
currency
translation (134,849) (1,255,694)
Net decrease (1,049,275) (6,524,564)
in cash and
cash
equivalents
Cash and cash 15,945,008 25,764,590
equivalents,
beginning of
period
Cash and cash 14,895,733 19,240,026
equivalents,
end of period
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
1. REPORTING ENTITY
Atlatsa Resources Corporation (the "Company" or "Atlatsa") is
incorporated in the Province of British Columbia, Canada. The
condensed consolidated interim financial statements of the Company as
at and for the three and six months ended 30 June 2012 comprise the
Company and its subsidiaries (together referred to as the “Group” and
individually as “Group entities”) and the Group’s interests in
associates and jointly controlled entities.
2. GOING CONCERN
The condensed consolidated interim financial statements are prepared
on the basis that the Group will continue as a going concern which
contemplates the realisation of assets and settlement of liabilities
in the normal course of operations as they become due.
As a result of the acquisition of the operating mine in 2009, the
Group secured various funding arrangements including securing a long-
term credit facility, the Operating Cash Flow Shortfall Facility
(“OCSF”), with Rustenburg Platinum Mines Limited (“RPM”) for an
amount of $183.2 million (ZAR 1,470 million). The facility is used to
fund operating cash and capital requirements for an initial period of
three years. As at 30 June 2012, the Group utilised $177.1 million
(ZAR 1,421 million), excluding interest, thereof to fund operating
requirements from 1 July 2009 as the mining operations are not
currently generating sufficient cash flows to fund operations and
operational projects. In addition, RPM has extended the terms of the
OCSF facility to fund cash shortfalls up to 31 August 2013. The Group
has no obligation to repay significant interest and capital on its
outstanding loans and borrowings during the next 12 months.
As a result of securing the financial resources and the terms of the
long-term funding, the directors expect that cash flows from mining
operations and the extended OCSF will be sufficient to meet immediate
ongoing operating and capital cash requirements of the Group, and
accordingly the financial statements have been prepared on a going
concern basis.
The Company is in the process of completing a proposed refinancing
and restructuring transaction. The proposed transaction will among
others significantly reduce and restructure the total debt of the
Group and thereby significantly improve its financial position as
well as providing new debt facilities to fund operations and capital
projects.
3. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting and
the AC 500 Standards as issued by the Accounting Practices Board or
its successor. They do not include all of the information required
for full annual financial statements, and should be read in
conjunction with the consolidated financial statements of the Group
as at and for the year ended 31 December 2011. The consolidated
financial statements of the Group as at and for the year ended 31
December 2011 are available upon request from the Company’s
registered office at 82 Grayston Drive, Sandton, South Africa or at
www.sedar.com.
4. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements as at
and for the year ended 31 December 2011, except for the following
standards and interpretations adopted in the current financial year:
– Amendments to IAS12, Deferred Tax: Recovery of underlying assets
There was no significant impact on these condensed consolidated
interim financial statements as a result of adopting these standards
and interpretations.
Standards and interpretations issued but not yet effective and
applicable to the Group:
– Amendments to IAS 1, Presentation of Financial Statements:
Presentation of Items of Other Comprehensive Income (1 July 2012)
– Amendments to IAS 19, Employee benefits: Defined benefit plans
(effective 1 January 2013)
– IAS 27, Separate Financial Statements (effective 1 January 2013)
– IAS 28, Investment in Associates and Joint ventures (effective 1
January 2013)
– IAS 32, Offsetting Financial Assets and Financial Liabilities (1
January 2014)
– Amendments to IFRS 7, Disclosures – Offsetting Financial Assets and
Financial Liabilities (1 January 2013)
– IFRS 9, Financial Instruments (effective 1 January 2015)
– IFRS 9, Additions to IFRS 9 Financial instruments (effective 1
January 2015)
– IFRS 10, Consolidated Financial Statements (effective 1 January
2013)
– IFRS 11, Joint Arrangements (effective 1 January 2013)
– IFRS 12, Disclosure of Interests in Other Entities (effective 1
January 2013)
– IFRS 13, Fair Value Measurement (effective 1 January 2013)
– IFRIC 20, Stripping costs in the Production Phase of a Surface Mine
(effective 1 January 2013)
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Six Year ended
31 December
months
ended 30
June
2012 2011
5. PROPERTY, PLANT AND EQUIPMENT
Summary
Cost
Balance at beginning of period 876,764,628 1,032,647,854
Additions 2,664 2,238
Transferred from capital work-in-progress 16,866,368 17,168,350
Disposals - (1,087,212)
Adjustment to rehabilitation assets - 1,050,670
Effect of translation (9,345,849) (173,017,272)
Balance at end of period 884,287,811 876,764,628
Accumulated depreciation and impairment
losses
Balance beginning of period 77,840,208 47,741,321
Depreciation for the period 18,991,514 42,075,759
Disposals - (748,144)
Effect of translation (1,133,254) (11,228,728)
Balance at end of period 95,698,468 77,840,208
Carrying value 788,589,343 798,924,420
6. CAPITAL WORK-IN-PROGRESS
Capital work-in-progress consists of mine development and
infrastructure costs relating to the Bokoni mine and will be
transferred to property, plant and equipment when the relevant projects
are commissioned.
Balance at beginning of period 20,826,290 10,311,973
Additions 19,635,545 28,678,042
Transfer to property, plant and equipment (16,866,368) (17,168,350)
Capitalisation of borrowing costs 1,669,250 1,777,431
Effect of translation (292,052) (2,772,806)
Balance at end of period 24,972,665 20,826,290
Capital work-in-progress is funded through cash generated from
operations and available loan facilities.
7. INTANGIBLE ASSETS
Cost
Balance at beginning of period 3,113,175 3,473,000
Additions - 236,304
Effect of translation (32,145) (596,129)
Balance at end of period 3,081,030 3,113,175
Accumulated amortisation and impairment
losses
Balance beginning of period 1,217,970 192,944
Amortisation for the period 520,569 1,148,618
Effect of translation (21,608) (123,592)
Balance at end of period 1,716,931 1,217,970
Carrying value 1,364,099 1,895,205
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Six Year ended
31
months December
ended 30 2011
June
2012
8. LOANS AND BORROWINGS
Redeemable “A” preference shares (related
party) 410,635,347 392,191,315
Rustenburg Platinum Mines – Funding loans
(related party) 179,139,216 172,650,283
Rustenburg Platinum Mines – OCSF (related
party) 224,744,969 172,991,980
Rustenburg Platinum Mines – Interest free
loan (related party) 3,602,316 3,639,900
Rustenburg Platinum Mines – commitment fees
(related party) 1,360,569 1,298,865
Other 2,242,640 2,780,379
821,725,057 745,552,722
Short-term portion
Other (885,077) (1,096,235)
(885,077) (1,096,235)
Non-current liabilities 820,839,980 744,456,487
The carrying value of the Group’s loans and borrowings changed during
the period as follows:
Balance at beginning of the period 745,552,722 716,936,362
Rustenburg Platinum Mine – OCSF 38,636,594 64,851,418
Loans repaid - other (648,104) (716,317)
Commitment fee capitalised (76,446) (394,063)
Finance expenses accrued 47,368,285 88,648,310
Funding loan raised – Rustenburg
Platinum Mine (related party) - 3,691,604
Capitalisation transaction costs
written-off - 3,834,378
Commitment fee liability 76,442 394,063
Interest rate swap adjustment - 355,852
Other - 86,937
Effect of translation (9,184,436) (132,135,822)
Balance at end of the period 821,725,057 745,552,722
Short-term portion
Other (885,077) (1,096,235)
(885,077) (1,096,235)
Non-current portion 820,839,980 744,456,487
Senior Term Loan Facility
RPM has waived the loan covenants on the debt as of 30 June 2012 and
until 31 August 2013.
Rustenburg Platinum Mines – OCSF
Under the Operating Cash Flow Shortfall Facility (“OCSF”), if funds are
requested by Bokoni (and authorised by Bokoni Holdco), RPM shall advance
such funds directly to Bokoni. At 30 June 2012 $177.1 million (ZAR 1,421
million) of the original available $185 million (ZAR 1,470 million) has
been advanced by RPM. The remaining facility may be utilised only for
purposes of operating or capital expenditure cash shortfalls at Bokoni.
In addition, RPM has extended the terms of the OCSF facility to fund
cash shortfalls up to 31 August 2013 by extending the facility to $268.8
million (ZAR 2,157 million).
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Three months ended 30 June
2012 2011
9. CASH UTILISED BY OPERATIONS
Loss before income (40,875,607) (55,431,210)
tax
Adjustments for:
Finance expense 23,227,212 25,078,380
Finance income (120,650) (233,652)
Non-cash items:
Depreciation and 9,750,128 10,849,330
amortisation
Equity settled 235,018 665,401
share-based
compensation
Loss on disposal of - 17,929
property, plant and
equipment
Profit and loss - 2,673,963
impact of cash flow
hedge
Cash utilised before (7,783,899) (16,379,859)
ESOP transactions
ESOP cash 83,089 -
transactions
(restricted cash)
Cash utilised before (7,700,810) (16,379,859)
working capital
changes
Working capital
changes
(Increase)/decrease (3,524,140) (5,701,111)
in trade and other
receivables
Increase /(decrease) 80,113 1,528,988
in trade and other
payables
(Increase)/decrease (371,876) 754,533
in inventories
Cash utilised by (11,516,713) (19,797,449)
operations
Six months ended 30 June
2012 2011
Loss before (86,920,561) (99,597,819)
income tax
Adjustments for:
Finance expense 46,048,448 48,331,003
Finance income (260,001) (427,820)
Non-cash items:
Depreciation and 19,512,084 22,367,253
amortisation
Equity settled 493,500 1,640,996
share-based
compensation
Loss on disposal - 17,929
of property,
plant and
equipment
Profit and loss - 2,640,465
impact of cash
flow hedge
Cash utilised (21,126,530) (25,027,993)
before ESOP
transactions
ESOP cash 178,184 -
transactions
(restricted cash)
Cash utilised (20,948,046) (25,027,993)
before working
capital changes
Working capital
changes
(Increase)/decrea (1,823,822) 6,314,527
se in trade and
other receivables
Increase 3,621,565 (2,561,386)
/(decrease) in
trade and other
payables
(Increase)/decrea 17,138 (316,002)
se in inventories
Cash utilised by (19,133,465) (21,590,854)
operations
10. SEGMENT INFORMATION
The Group has two reportable segments as described below. These segments
are managed separately based on the nature of operations. For each of
the segments, the Group’s CEO (the Group’s chief operating decision
maker) reviews internal management reports monthly. The following
summary describes the operations in each of the Group’s reportable
segments:
–Bokoni Mine - Mining of PGM’s.
–Projects - Mining exploration in Boikgantsho, Kwanda, and Ga-
Phasha exploration projects.
The majority of operations and functions are performed in South Africa.
An insignificant portion of administrative functions are performed in
the Company’s country of domicile.
The CEO considers earnings before net finance expense, income tax,
depreciation and amortisation (“EBITDA”) to be an appropriate measure
of each segment’s performance. Accordingly, the EBITDA for each segment
is included in the segment information. All external revenue is
generated by the Bokoni Mine segment.
Six months ended 30 June
2012
Note
Bokoni Mine Projects Total
EBITDA
(20,211,223) (30,936) (20,242,159) (i)
Total Assets
897,648,528 9,617,379 907,265,907 (ii)
Six months ended 30 June
2011
Note
Bokoni Mine Projects Total
EBITDA
(22,432,972) (546,032) (22,979,004) (i)
Total Assets
1,021,896,632 11,002,363 1,032,898,995 (ii)
Three months ended 30 June
2012
Bokoni Mine Projects Total
EBITDA
(7,348,065) 16,389 (7,331,676)
Three months ended 30 June
2011
Note
Bokoni Mine Projects Total
EBITDA
(13,976,27) (261,456) (14,237,732) (i)
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
2012 2011
(i) EBITDA – six months ended
EBITDA for reportable segments (20,242,159) (22,979,004)
Net finance expense (45,788,447) (47,903,183)
Depreciation and amortisation (19,512,083) (22,367,253)
Corporate and consolidation adjustments (1,377,872) (6,348,379)
Consolidated loss before income tax (86,920,561) (99,597,819)
EBITDA - three months ended
EBITDA for reportable segments (7,331,676) (14,237,732)
Net finance expense (23,106,562) (24,844,728)
Depreciation and amortisation (9,750,127) (10,849,330)
Corporate and consolidation adjustments (687,242) (5,499,420)
Consolidated loss before income tax (40,875,607) (55,431,210)
(ii) Total assets
Assets for reportable segments 907,265,907 1,032,898,995
Corporate and consolidation adjustments (20,717,543) (17,447,436)
Consolidated total assets 886,548,364 1,015,451,559
11. EARNINGS PER SHARE
The basic and diluted loss per share for the three and six months ended
30 June 2012 was 5 cents (2011: 7 cents) and 10 cents (2011: 11 cents)
respectively.
The calculation of basic loss per share for the three months ended 30
June 2012 of 5 cents (2011: 7 cents) is based on the loss attributable
to owners of the Company of $21,068,853 (2011: $28,244,686) and a
weighted average number of shares of 424,791,411 (2011: 424,745,795).
The calculation of basic loss per share for the six months ended 30 June
2012 of 10 cents (2011: 11 cents) is based on the loss attributable to
owners of the Company of $42,606,435 (2011: $46,889,058) and a weighted
average number of shares of 424,791,411 (2010: 424,745,795).
Share options were excluded in determining diluted weighted average
number of common shares as their effect would have been anti-dilutive.
12.HEADLINE AND DILUTED HEADLINE EARNINGS PER SHARE
Headline earnings per share is calculated by dividing headline earnings
attributable to shareholders of the Company by the weighted average
number of ordinary shares in issue during the period. Diluted headline
earnings per share is determined by adjusting the headline earnings
attributable to shareholders of the Company and the weighted average
number of ordinary shares in issue during the period, for the effects of
all dilutive potential ordinary shares, which comprise share options
granted to employees.
Headline earnings per share
The calculation of headline loss per share for the three months ended 30
June 2012 of 5 cents (2011: 7 cents) is based on headline loss of
$21,068,853 (2011: $28,226,757) and a weighted average number of shares
of 424,791,411 (2011: 424,745,795).
The calculation of headline loss per share for the six months ended 30
June 2012 of 5 cents (2011: 11 cents) is based on headline loss of
$42,606,435 (2011: $46,871,129) and a weighted average number of shares
of 424,791,411 (2011: 424,745,795).
The following adjustments to loss attributable to owners of the Company
were taken into account in the calculation of headline loss attributable
to owners of the Company:
Three months ended 30
June
2012 2011
Loss attributable to shareholders of the Company (21,068,853) (28,244,686)
- Loss
on disposal of property, plant and equipment - 17,929
Headline loss attributable to owners of the
Company (21,068,853) (28,226,757)
Six months ended 30 June
2012 2011
Loss attributable to shareholders of the Company (42,606,435) (46,889,058)
- Loss
on disposal of property, plant and equipment - 17,929
Headline loss attributable to owners of the (42,606,435) (46,871,129)
Company
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2012
(Unaudited - Expressed in Canadian Dollars)
Diluted headline earnings per share
The calculation of diluted headline loss per share for the three months
ended 30 June 2012 of 5 cents (2011: 7 cents) is based on headline loss
of $21,068,853 (2011: $28,226,757) and a weighted average number of
shares of 424,791,411 (2011: 424,745,795).
The calculation of diluted headline loss per share for the six months
ended 30 June 2012 of 5 cents (2011: 11 cents) is based on headline loss
of $42,606,435 (2011: $46,871,129) and a weighted average number of
shares of 424,791,411 (2011: 424,745,795).
Share options were excluded in determining diluted weighted average
number of common shares as their effect would have been anti-dilutive.
There are no reconciling items between headline loss and diluted
headline loss.
13. SUBSEQUENT EVENTS
There have been no events that have occurred after the reporting date
that would have a material impact on the reported results.
Johannesburg
14 August 2012
JSE Sponsor
Macquarie First South Capital (Pty) Limited
Issued on behalf of Atlatsa Resources Corporation
On behalf of Atlatsa
Joel Kesler
Executive: Corporate Development
Office: +27 11 779 6800
Mobile: +27 82 454 5556
Russell and Associates
Charmane Russell
Office: +27 11 880 3924
Mobile: +27 82 372 5816
Macquarie First South Capital
Annerie Britz/ Yvette Labuschagne
Office: +27 11 583 2000
Date: 14/08/2012 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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