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PLL - Platfields Limited - Audited condensed group results for the year ended
28 February 2011
PLATFIELDS LIMITED
(Registration number 2002/005851/06)
Share code: PLL ISIN: ZAE000151825
("Platfields" or "the company")
AUDITED CONDENSED GROUP RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011
Consolidated statement of financial position
as at 28 February 2011
Figures in Rand Note Audited 2011 Audited 2010
Assets
Non-current assets
Exploration assets 3 56,690,146 64,085,779
Current assets
Trade and other receivables 132,786 274,128
Cash and cash equivalents 19,574,675 37,910,349
19,707,461 38,184,477
Total assets 76,397,607 102,270,256
Equity and liabilities
Equity
Share capital 7,896 4,546
Share premium 235,752,629 236,012,629
Share-based payments reserve 65,605,904 48,423,898
Accumulated loss (261,486,864) (188,455,782)
39,879,565 95,985,291
Non-current liabilities
Long term liability 31,983,840 -
Current liabilities
Current portion of long term liability 2,000,000 -
Trade and other payables 2,534,202 6,284,965
4,534,202 6,284,965
Total equity and liabilities 76,397,607 102,270,256
Consolidated statement of comprehensive income
for the year ended 28 February 2011
Figures in Rand Audited 2011 Audited 2010
Exploration expenditure (1,721,946) (20,898,679)
Operating expenses (14,776,501) (10,259,735)
Operating loss (16,498,447) (31,158,414)
Interest received 2,189,034 4,247,250
Loss from operations (14,309,413) (26,911,164)
Impairment (47,395,633) (77,856,537)
BEE share transaction (17,020,266) (4,767,431)
Notional interest 6,016,160 -
Share-based payments (fair value) (321,930) (7,846,228)
Social corporate investment - (2,500,000)
Loss for the year/Total comprehensive
loss for the year (73,031,082) (119,881,360)
Loss per ordinary share (cents) (10.97) (26.37)
Less : Impairment of exploration asset (cents) 7.12 17.12
Headline loss per ordinary share (cents) (3.85) (9.25)
Diluted loss per ordinary share (cents) (10.96) (23.81)
Diluted headline loss per share (cents) (3.85) (8.35)
Reconciliation of headline earnings and earnings
The calculation of the headline
loss per share is based on a
loss of: 2011 2010
- attributable loss after tax (73,031,082) (119,881,360)
- impairment of exploration assets (47,395,633) (77,856,537)
Headline loss (25,635,449) (42,024,823)
Consolidated statement of changes in equity
for the year ended 28 February 2011
Share-based
Figures in Rand Share capital Share premium payments reserve
Balance at 28 February 2009 4,545 236,012,629 35,809,739
Change in equity:
Issue of shares for cash 1
Issue of shares - BEE class 500
BEE share scheme (fair value) 4,767,431
Share-based payments (fair value) 7,846,228
Total comprehensive loss
for the year
Total changes 1 - 12,614,159
Balance at 28 February 2010 4,546 236,012,629 48,423,898
Change in equity:
Issue of shares for cash 2,850
Issue of shares - BEE class 500 (500)
Share issue expenses (260,000)
BEE share scheme (fair value) 16,860,576
Share-based payments (fair value) 321,930
Total comprehensive loss
for the year
Total changes 3,350 (260,000) 17,182,006
Balance at 28 February 2011 7,896 235,752,629 65,605,904
Total attributable
Figures in Rand Accummulated loss to equity holders
Balance at 28 February 2009 (68,574,422) 203,252,491
Change in equity:
Issue of shares for cash 1
Issue of shares - BEE class 500
BEE share scheme (fair value) 4,767,431
Share-based payments (fair value) 7,846,228
Total comprehensive loss for the year (119,881,360) (119,881,360)
Total changes (119,881,360) (107,267,200)
Balance at 28 February 2010 (188,455,782) 95,985,291
Change in equity:
Issue of shares for cash 2,850
Issue of shares - BEE class -
Share issue expenses (260,000)
BEE share scheme (fair value) 16,860,576
Share-based payments (fair value) 321,930
Total comprehensive loss for the year (73,031,082) (73,031,082)
Total changes (73,031,082) (56,105,726)
Balance at 28 February 2011 (261,486,864) 39,879,565
Consolidated cash flow statement
for the year ended 28 February 2011
Figures in Rand Note Audited 2011 Audited 2010
Operating activities (18,078,524) (26,333,004)
Cash used in operations 4 (20,267,558) (30,580,254)
Finance income 2,189,034 4,247,250
Investing activities
Acquisition of exploration assets (40,000,000) -
Financing activities 39,742,850 501
Proceeds from share issues 2,850 501
Share issue expenses (260,000) -
Loan received 40,000,000 -
Total cash movement (18,335,674) (26,332,503)
Cash at the beginning of the year 37,910,349 64,242,852
Total cash at end of the year 19,574,675 37,910,349
Notes to the audited condensed
group results for the year ended 28 February 2011
1. Basis for preparation and accounting policies
The Consolidated Annual Financial Statements have been prepared in accordance
with International Financial Reporting Standards (IFRS), IAS 34, Companies Act
of South Africa, the JSE Listing Requirements and the AC 500 series.
The Consolidated Annual Financial Statements have been prepared on the
historical cost basis, unless otherwise stated.
The accounting policies are consistent with the previous year. The group has
adopted all of the new Standards and Interpretations issued by the International
Accounting Standards Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) of the IASB that are relevant to its
operations and effective for all annual reporting periods beginning on 1 March
2009.
2. Loss per share
The loss per share is based on 665,608,856 (2010:454,551,642) weighted number of
ordinary shares in issue and a loss for the year of R73.0 million (2010:R119.9
million).
The headline loss per share is based on 665,608,856 (2010:454,551,642) weighted
number of ordinary shares in issue and a loss for the year of R25.6 million
(2010:R42.0 million).
The headline loss per share as reported in 2010 did not take into account the
impairment of the exploration assets in terms of IFRS 6. The impairment was
17.12 cents per share. It has been restated from 26.37 cents per share to 9.25
cents per share.
The diluted loss per share is based on 666,291,294 (2010:503,391,129) weighted
number of ordinary shares in issue and a loss for the year of R73.0 million
(2010:R119.9 million)
3. Exploration assets
During the period under review, the group acquired a potential claim of a third
party to 50% of the prospecting right over the farm Leeuwkop for R40 million.
The Platinum Mile portion of the Berg project (the Berg project comprises of
various portions) was further impaired during the current year by applying a
mining cut to the in situ grades previously reported resulting from the
exploration activities carried out and the upgrade of the project to indicated
and inferred resource. This mining cut resulted in a reduction of projected
ounces from 1.21 million ounces to 89,000 ounces.
4. Cash used in operations
Audited Audited
Figures in Rand 2011 2010
Loss before interest and taxation (75,220,116) (124,128,610)
Adjustments for:
BEE Share transaction (fair value) 16,860,576 4,767,431
Impairment 47,395,633 77,856,537
Notional interest (6,016,160) -
Share-based payments (fair value) 321,930 7,846,228
Changes in working capital
Trade and other receivables 141,342 499,394
Trade and other payables (3,750,763) 2,578,766
(20,267,558) (30,580,254)
5. Independent auditors` report
Grant Thornton has audited the results of Platfields Limited as at 28 February
2011 and has expressed an unqualified audit opinion.
Their report is available for inspection at the registered office of Platfields.
Signed on behalf of the board:
JT Motlatsi DB Mbindwane
Chairman Chief Executive Officer
25 May 2011
Commentary
By Bongani Mbindwane, Chief Executive Officer
Financial review
Platfields Limited is still in the exploration phase of its development and does
therefore not yet generate any cash from its projects.
The group posted a net loss for the year of R73.0 million compared to a loss of
R119.9 million for 2010. The major decrease in the reported loss is attributed
to the impairment of R47.4 million compared to an impairment of R77.9 million in
the prior year. The Platinum Mile portion of the Berg project (the Berg project
comprises of various portions) was further impaired by applying a mining cut to
the in situ grades previously reported resulting from the exploration activities
carried out and the upgrade of the project to indicated and inferred resource.
This mining cut resulted in a reduction of projected ounces from 1.21 million
ounces to 89,000 ounces. Exploration on the projects amounted to R20.9 million
in 2010 and these phases were completed in the current year at a cost of R1.7
million.
During the current year the company waived the notional loans on the BEE- class
ordinary shares at an estimated cost of R17.0 million. These shares were
subsequently converted to ordinary shares.
The company also spent R4.6 million on its listing which took place on 14
December 2010.
No dividends are paid or proposed for the year.
Currently there is no basis for reporting segmentally due to the fact that the
group is still in the exploration phase of its operations.
Funding and going concern
As the group is not yet in a cash generating position, its exploration programme
is still funded by equity.
The directors are of the opinion that the company`s cash resources are adequate
to fund its operations for the next twelve months.
Share capital
During the year under review the company increased its authorised share capital
from 1 billion ordinary shares to 2 billion ordinary shares. The company
converted 202,239,670 BEE-class ordinary shares into ordinary shares. The
company currently has 789,597,005 ordinary shares in issue and listed on the
Johannesburg Stock Exchange.
Directors
The directors in office during the financial year under review were:
James Thokoana Motlatsi Chairman
Derrick Bongani Mbindwane Chief Executive Officer
Annelise Cilliers Financial Director
Joshua Philip Hattingh Operations Director
Resigned 23 March 2010
Neville Hawthorn Cornish Non-executive Director
Roy Stavely Traviss Non-executive Director
Ulrich Schackerman Non-executive Director
The following directors retired/resigned subsequent to year end:
Neville Hawthorn Cornish Retired 4 March 2011
Ulrich Schackermann Resigned 29 March 2011
The following director was appointed subsequent to the year end:
Seth Malefetsane Radebe Appointed 5 May 2011
The secretary of the company is Probity Business Services (Pty) Limited.
Subsequent events
No material events have occurred since the financial year end.
Prospects
Platfields is confident that it will raise sufficient cash to progress the next
phase of its exploration programme.
An Independent Competent Persons` Report on the mineral assets of the Platfields
projects was carried out as at 30 June 2010. The executive summary of this
report is contained in the company`s pre-listing statement issued on 7 December
2010. No material changes have occurred since the date of that report
Registered office:
7th Floor, Reserve Bank Building
60 St George`s Mall
Cape Town
8001
PO Box 51949
Waterfront
8002
Website: www.platfields.co.za
30 May 2011
Sponsor
Java Capital
Date: 30/05/2011 14:12:01 Supplied by www.sharenet.co.za
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