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EPS - Eastern Platinum Limited - Condensed consolidated interim financial
statements of Eastern Platinum Limited September 30, 2011 (Unaudited)
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA 2768551038
Share Code AIM: ELR ISIN: CA 2768551038
Share Code JSE: EPS ISIN: CA 2768551038
Condensed consolidated interim financial statements of Eastern Platinum Limited
September 30, 2011 (Unaudited)
Eastern Platinum Limited
September 30, 2011
Table of contents
Condensed consolidated interim income statements ........................... 3
Condensed consolidated interim statements of comprehensive (loss) income.... 4
Condensed consolidated interim statements of financial position ............ 5
Condensed consolidated interim statements of changes in equity ............. 6
Condensed consolidated interim statements of cash flows .................... 7
Notes to the condensed consolidated interim financial statements ........ 8-28
Condensed consolidated interim income statements
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)
Three months ended
September 30,
Note 2011 2010
Revenue $ 31,453 $ 38,073
Cost of operations
Production costs 28,541 26,953
Production costs 28,541 26,953
Depletion and depreciation 8 5,502 5,782
34,043 32,735
Mine operating (loss) earnings (2,590) 5,338
Expenses
General and administrative 8 2,54 6 2,186
Share-based payments 15 22 16
2,56 8 2,202
Operating (loss) profit (5,158) 3,136
Other income (expense)
Interest income 1,376 459
Finance costs 17 (322) (392)
Foreign exchange gain (loss) 3,108 (576)
(Loss) profit before income taxes (996) 2,627
Deferred income tax recovery 447 561
Net (loss) profit for the period $ (549) $ 3,188
Attributable to
Non-controlling interest 16 $ (1,9 13) $ (851)
Equity shareholders of
the Company 1,364 4,039
Net (loss) profit for the period $ (549) $ 3,188
(Loss) earnings per share
Basic 18 $ 0.00 $ 0.01
Diluted 18 $ 0.00 $ 0.01
Weighted average number of common
shares outstanding in thousands
Basic 18 908,188 683,038
Diluted 18 916,706 693,409
Nine months ended
September 30,
2011 2010
Revenue $ 94,031 $ 109,384
Cost of operations
Production costs 88,987 79,511
Production costs 88,9 87 79,511
Depletion and depreciation 15,880 16,625
104,867 96,136
Mine operating (loss) earnings (10,836) 13,248
Expenses
General and administrative 8,57 3 7,419
Share-based payments 8,29 1 1,768
16 ,8 64 9,187
Operating (loss) profit (27,700) 4,061
Other income (expense)
Interest income 4,298 1,252
Finance costs (1,197) (1,355)
Foreign exchange gain (loss) 4,785 (344)
(Loss) profit before income taxes (19,814) 3,614
Deferred income tax recovery 1,040 1,657
Net (loss) profit for the period $ (18,774) $ 5,271
Attributable to
Non-controlling interest $ (6,554) $ (3,040)
Equity shareholders of
the Company (12,220) 8,311
Net (loss) profit for the period $ (18,774) $ 5,271
(Loss) earnings per share
Basic $ (0.01) $ 0.01
Diluted $ (0.01) $ 0.01
Weighted average number of common
shares outstanding in thousands
Basic 908,129 682,350
Diluted 908,129 693,754
Eastern Platinum Limited
Condensed consolidated interim statements of comprehensive (loss) income
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended
September, 30
2011 2010
Net (loss) profit for the period $ (549) $ 3,188
Other comprehensive (loss) income
Exchange differences on translating
foreign operations (133,229) 49,620
Exchange differences on translating
non-controlling interest (82) 625
Comprehensive (loss) income for the period $ (133,860) $ 53,433
Attributable to
Non-controlling interest (1,995) (226)
Equity shareholders of the Company (131,865) 53,659
Comprehensive (loss) income for the period $ (133,860) $ 53,433
Nine months ended
September 30,
2011 2010
Net (loss) profit for the period $ (18,774) $ 5,271
Other comprehensive (loss) income
Exchange differences on translating
foreign operations (133,701) 32,101
Exchange differences on translating
non-controlling interest (285) 358
Comprehensive (loss) income for the period $ (152,760) $ 37,730
Attributable to
Non-controlling interest (6,839) (2,682)
Equity shareholders of the Company (145,921) 40,412
Comprehensive (loss) income for the period $ (152,760) $ 37,730
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Condensed consolidated interim statements of financial position
as at September 30, 2011 and December 31, 2010
(Expressed in thousands of U.S. dollars - unaudited)
September 30, December31,
Note 2011 2010
Assets
Current assets
Cash and cash equivalents 5 $ 49,436 $ 107,846
Short-term investments 217,728 242,446
Trade and other receivables 6 31,154 33,787
Inventories 7 7,799 8,832
306,117 392,911
Non-current assets
Property, plant and equipment 8 639,584 715,976
Refining contract 9 10,584 14,265
Other assets 10 7,671 3,823
$ 963,956 $ 1,126,975
Liabilities
Current liabilities
Trade and other payables 11 $ 20,797 $ 27,009
Finance leases 12 2,195 3,211
22,992 30,220
Non-current liabilities
Provision for environmental
rehabilitation 13 7,723 8,934
Deferred tax liabilities 36,904 46,642
67,619 85,796
Equity
Issued capital 15 1,219,969 1,219,869
Treasury shares 15(e) (334) -
Equity-settled employee benefits
reserve 41,542 33,390
Foreign currency translation reserve (116,245) 17,456
Deficit (2 48,984) (236,764)
Capital and reserves attributable to
equity shareholders of the Company 895,948 1,033,951
Non-controlling interest 16 389 7,228
896,337 1,041,179
$ 963,956 $ 1,126,975
Approved and authorized for issue by the Board on November 9, 2011.
"David Cohen" "Robert Gay ton "
David Cohen, Director Robert Gayton, Director
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Eastern Platinum Limited
Condensed consolidated interim statements of changes in equity
(Expressed in thousands of U.S. dollars, except number of shares - unaudited)
Issued Treasury Equity - Foreign
capital shares settled currency
employee translation
benefits reserve
reserve
December 31, 2009 $ 890,150 $ - $ 32,336 $ (52,899)
Net profit - - - -
Currency translation
adjustment - - - 32,101
Total comprehensive income - - - 32,101
Stock options exercised 756 - (359) -
Share-based payments - - 1,768 -
September 30, 2010 $ 890,906 $ - $ 33,745 $ (20,798)
Net profit - - - -
Currency translation adjustment - - - 38,254
Total comprehensive income - - - 38,254
Public offering 345,391 - - -
Share issuance costs (16,501) - - -
Stock options exercised 73 - (39) -
Share-based payments - - (316) -
December 31, 2010 $ 1,219,869 $ - $ 33,390 $ 17,456
Net loss - - - -
Currency translation adjustment - - - (133,701)
Total comprehensive loss - - - (133,701)
Stock options exercised 100 - (100) -
Share-based payments - - 8, 193 -
Treasury shares - (334) 59 -
September 30, 2011 $ 1,219,969 $ (334) $ 41,542 $ (116,245)
Non-
Deficit Capital and controlling Equity
reserves interest
attributable to
equity
share holders
of the Company
December 31, 2009 $ (250,116) $ 619,471 $ 10,041 $ 629,512
Net profit 8,311 8,311 (3,040) 5,271
Currency
translation
adjustment - 32,101 358 32,459
Total
comprehensive
income 8,311 40,412 (2,682) 37,730
Stock options
exercised - 397 - 39 7
Share-based
payments - 1,768 - 1,768
September 30, 2010 $ (241,805) $ 662,048 $ 7,359 $ 669,407
Net profit 5,041 5,041 (535) 4,506
Currency
translation
adjustment - 38,254 404 38,658
Total
comprehensive
income 5,041 43,295 (131) 43,164
Public offering - 345,391 - 345,391
Share issuance
costs - (16,501) - (16,501)
Stock options
exercised - 34 - 34
Share-based
payments - (316) - (316)
December 31, 2010 $ (236,764) $ 1,033,951 $ 7,228 $ 1,041,179
Net loss (12,220) (12,220) (6,554) (18,774)
Currency
translation
adjustment - (133,701) (285) (133,986)
Total
comprehensive loss (12,220) (145,921) (6,839) (152,760)
Stock options
exercised - - - -
Share-based
payments - 8,193 - 8,193
Treasury shares - (275) - (275)
September 30, 2011 $ (248,984) $ 895,948 $ 389 $ 896,337
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended
September 30,
Note 2011 2010
Operating activities
(Loss) profit before income taxes $ (996) $ 2,627
Adjustments to net (loss) profit
for non-cash items
Depletion and depreciation 8 5,568 5,782
Refining contract amortization 9 387 378
Share-based payments 15 22 16
Interest income (1,376) (459)
Finance costs 17 322 392
Foreign exchange (gain) loss (3,108) 576
Net changes in non-cash
working capital items
Trade and other receivables (7,736) 315
Inventories (1,408) (2,042)
Trade and other payables (1,994) 1,268
Cash (used in) generated from operations (10,319) 8,853
Adjustments to net loss for cash items
Interest income received 573 523
Finance costs paid (3) (4)
Income taxes received 90 -
Net operating cash flows (9,659) 9,372
Investing activities
Net operating cash flows investments 14,752 1,443
Purchase of other assets (175) (285)
Property, plant and
equipment expenditures (27,765) (9,724)
Net investing cash flows (13,18 8) (8,566)
Financing activities
Common shares issued for cash -
exercise of stock options - 15
Payment of finance leases - -
Net financing cash flows - 15
Effect of exchange rate changes on cash and
cash equivalents (3,876) 617
(Decrease) increase in cash and cash equivalents (26,723) 1,438
Cash and cash equivalents, beginning of period 76,159 6,280
Cash and cash equivalents, end of period $ 49,436 $ 7,718
Nine months ended
September 30,
2011 2010
Operating activities
(Loss) profit before income taxes $ (19,814) $ 3,614
Adjustments to net (loss) profit
for non-cash items
Depletion and depreciation 16,540 16,625
Refining contract amortization 1,189 1,113
Share-based payments 8,291 1,768
Interest income (4,298) (1,252)
Finance costs 1,197 1,355
Foreign exchange (gain) loss (4,785) 344
Net changes in non-cash
working capital items
Trade and other receivables (195) (1,340)
Inventories (654) (3,011)
Trade and other payables (1,638) (1,149)
Cash (used in) generated from operations (4,167) 18,067
Adjustments to net loss for cash items
Interest income received 2,246 1,260
Finance costs paid (198) (251)
Income taxes received 57 -
Net operating cash flows (2,062) 19,076
Investing activities
Net operating cash flows investments 13,257 2,404
Purchase of other assets (5,170) (826)
Property, plant and equipment expenditures (61,281) (20,435)
Net investing cash flows (53,194) (18,857)
Financing activities
Common shares issued for cash - exercise of stock options - 397
Payment of finance leases (648) (628)
Net financing cash flows (648) (231)
Effect of exchange rate changes on cash and
cash equivalents (2,506) 481
(Decrease) increase in cash and cash equivalents (58,410) 469
Cash and cash equivalents, beginning of period 107,846 7,249
Cash and cash equivalents, end of period $ 49,436 $ 7,718
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Eastern Platinum Limited
Notes to the condensed consolidated interim financial statements
(Expressed in thousands of U.S. dollars, except number of shares and per share
amounts - unaudited)
1. Nature of operations
Eastern Platinum Limited (the "Company") is a platinum group metal ("PGM")
producer engaged in the mining, exploration and development of PGM properties
located in various provinces in South Africa.
Eastern Platinum Limited is a publicly listed company incorporated in Canada
with limited liability under the legislation of the Province of British
Columbia. The Company`s shares are listed on the Toronto Stock Exchange,
Alternative Investment Market, and the Johannesburg Stock Exchange.
The head office, principal address and records office of the Company are located
at 1075 West Georgia Street, Suite 250, Vancouver, British Columbia, Canada, V6E
3C9. The Company`s registered address is 1055 West Georgia Street, Suite 1500,
Vancouver, British Columbia, Canada, V6E 4N7.
2. Basis of preparation
These unaudited condensed consolidated interim financial statements, including
comparatives, have been prepared using accounting policies consistent with
International Financial Reporting Standards ("IFRS") and in accordance with
International Accounting Standard ("IAS") 34 Interim Financial Reporting.
The preparation of financial statements requires management to make judgments,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, and revenue and expenses. The estimates and
associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results
of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period or in the period of
the revision and further periods if the review affects both current and future
periods.
Judgments made by management in the application of IFRS that have a significant
effect on the financial statements and estimates with a significant risk of
material adjustment in the current and following fiscal years are discussed in
Notes 4(v) and 4(w) of the Company`s audited consolidated financial statements
for the year ended December 31, 2010.
3. Application of new and revised International Financial Reporting Standards
Effective January 1, 2011, the Company adopted new and revised International
Financial Reporting Standards ("IFRSs") that were issued by the International
Accounting Standards Board ("IASB"). The application of these new and revised
IFRSs has not had any material impact on the amounts reported for the current
and prior years but may affect the accounting for future transactions or
arrangements.
(a) Amendment to IAS 32 Financial Instruments: Presentation
Rights, options or warrants to acquire a fixed number of the Company`s equity
instruments for a fixed amount of any currency will be allowed to be classified
as equity instruments so long as the Company offers the rights, options or
warrants pro rata to all of the Company`s existing owners of the same class of
the Company`s non-derivative equity instruments.
3. Application of new and revised International Financial Reporting Standards
(continued)
(b) Amendments to IFRS 3 Business Combinations
Clarification that the contingent consideration arising in a business
combination previously accounted for in accordance with IFRS 3 that is
outstanding at the adoption date continues to be accounted for in accordance
with IFRS 3.
Limiting the accounting policy choice to measure non-controlling interests upon
initial recognition at fair value or at the non-controlling interest`s
proportionate share of the acquiree`s identifiable net assets to instruments
that give rise to a present ownership interest and that currently entitle the
holder to a share of net assets in the event of liquidation.
Expansion of the guidance with regards to the attribution of the market-based
measure of an acquirer`s share-based payment awards issued in exchange for
acquiree awards.
(c) Amendments to IAS 27 Consolidated and Separate Financial Statements
Clarification that the amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates, IAS 28 Investments in Associates, and IAS 31 Interests in Joint
Ventures resulting from IAS 27 should be applied prospectively, except for
amendments resulting from renumbering.
(d) Amendments to IFRS 7 Financial Instruments: Disclosures
Amendment to disclosure requirements, specifically, ensuring qualitative
disclosures are made in close proximity to quantitative disclosures in order to
better enable financial statement users to evaluate an entity`s exposure to
risks arising from financial instruments.
(e) Amendments to IAS 1 Presentation of Financial Statements
Clarification that the breakdown of changes in equity resulting from
transactions recognized in other comprehensive income is required to be
presented in the statement of changes in equity or in the notes to the financial
statements.
(f) Amendments to IAS 24 Related Party Disclosures
Amendment of the definition for related parties.
(g) Amendments to IAS 34 Interim Financial Reporting
Addition of further examples of events or transactions that require disclosure
and removal of references to materiality when discussing other minimum
disclosures.
4. Summary of significant accounting policies
The preparation of financial data is based on accounting principles and
practices consistent with those used in the preparation of the audited
consolidated financial statements as at December 31, 2010. The accompanying
unaudited condensed consolidated interim financial statements should be read in
conjunction with the Company`s audited consolidated financial statements for the
year ended December 31, 2010.
(a) Accounting standards issued but not yet effective
During the nine months ended September 30, 2011, five new standards were issued
effective for annual periods beginning on or after January 1, 2013.
4. Summary of significant accounting policies (continued)
(a) Accounting standards issued but not yet effective (continued)
(i) IFRS 10 Consolidated Financial Statements
IFRS 10 outlines the principles for the presentation and preparation of
consolidated financial statements.
(ii) IFRS 11 Joint Arrangements
IFRS 11 defines the two types of joint arrangements (joint operations and joint
ventures) and outlines how to determine the type of joint arrangement entered
into and the principles for accounting for each type of joint arrangement.
(iii) IFRS 12 Disclosure of Interests in Other Entities
IFRS 12 outlines the disclosures required in order to provide users of financial
statements with the information necessary to evaluate an entity`s interest in
other entities, the corresponding risks related to those interests and the
effects of those interests on the entity`s financial position, financial
performance and cash flows.
(iv) IFRS 13 Fair Value Measurement
IFRS 13 defines fair value, summarizes the methods of determining fair value and
outlines the required fair value disclosures. IFRS 13 is utilized when another
IFRS standard requires or allows fair value measurements or disclosures about
fair value measurements.
(v) IFRIC Interpretation 20 Stripping Costs in the Production Phase of a Surface
Mine
IFRIC Interpretation 20 summarizes the method of accounting for waste removal
costs incurred as a result of surface mining activity during the production
phase of a mine.
(b) Accounting standards amended but not yet effective
During the nine months ended September 30, 2011, two standards were amended with
the amendments effective for annual periods beginning on or after January 1,
2013.
(i) IAS 27 Separate Financial Statements
IAS 27 outlines the accounting principles to be applied with regards to
investments in subsidiaries, joint ventures and associates when an entity elects
or is required by local regulations to present separate, non-consolidated,
financial statements. The previous standard was titled IAS 27 Consolidated and
Separate Financial Statements.
(ii) IAS 28 Investments in Associates and Joint Ventures
IAS 28 outlines the accounting treatment and corresponding application of the
equity method of accounting in investments in associates and joint ventures. The
previous standard was titled IAS 28 Investments in Associates.
4. Summary of significant accounting policies (continued)
(b) Accounting standards amended but not yet effective
The Company has not early adopted these standards and is currently assessing the
impact that these standards will have on the consolidated financial statements.
IFRS 10, IFRS 11, IAS 27 and IAS 28 cannot be early adopted on a stand-alone
basis and may only be early adopted as a group along with IFRS 12. Early
adoption must be disclosed.
IFRS 12 disclosure is encouraged prior to adoption of the standard. This early
disclosure does not require the entity to apply IFRS 10, IFRS 11, IAS 27 or IAS
28. IFRS 13 may be early adopted on a stand-alone basis so long as this fact is
disclosed and the standard is applied prospectively as at the beginning of the
annual reporting period in which the standard is initially applied.
5. Cash and cash equivalents
Cash and cash equivalents are comprised of:
September 30, December 31,
2011 2010
Cash in bank $ 47,290 $ 102,654
Short-term money market instruments 2,146 5,192
$ 49,436 $ 107,846
6. Trade and other receivables
Trade and other receivables are comprised of the following:
September 30, December 31,
2011 2010
Trade receivables $ 21,1 59 $ 30,142
Current tax receivable 965 1,283
Other receivables 9,354 2,556
Allowance for doubtful debts for
other receivables (324) (194)
$ 31,154 $ 33,787
7. Inventories
September30, December 31,
2011 2010
Consumables $ 5,338 $ 6,607
Ore and concentrate 732 477
Chrome inventory 1,729 1,748
$ 7,799 $ 8,832
Production costs for the three and nine months ended September 30, 2011 was
$28,541 and $88,987 (September 30, 2010 - $26,953 and $79,511), respectively.
Production costs represent the cost of inventories sold during the period. For
the three months and nine months ended September 30, 2011 and 2010, production
costs did not include any amounts with regards to the write-down of inventory to
net realizable value or with regards to the reversal of write-downs.
At September 30, 2011 and December 31, 2010, no inventories have been pledged as
security for liabilities.
8. Property, plant and equipment
Intangible Intangible
mineral mineral
Tangible Tangible properties properties
assets assets being not being
owned leased depleted depleted
Cost
Balance as at December
31, 2009 $ 426,223 $ 6,132 $ 136,100 $ 546,122
Assets acquired 32,444 - - 2 61
Foreign exchange movement 56,520 768 17, 040 58,901
Balance as at December
31, 2010 $ 515,187 $ 6,900 $ 153,140 $ 605,284
Assets acquired 60,374 - - 15
Transfer (10,876) - 862 (862)
Foreign exchange movement (102,835) (1,284) (28,622) (94,415)
Balance as at September
30, 2011 $ 461,850 $ 5,616 $ 125,380 $ 510,022
Accumulated depreciation
and impairment losses
Balance as at December
31, 2009 $ 126,944 $ 3,691 $ 20,765 $ 342,322
Depreciation 15,452 1,244 5,676 -
Foreign exchange movement 17,574 598 3, 224 42,862
Balance as at December
31, 2010 $ 159,970 $ 5,533 $ 29,665 $ 385,184
Depreciation 11,842 914 3, 403 -
Transfer - - 862 (862)
Foreign exchange movement (31,407) (1,159) (6,095) (71,633)
Balance as at September
30, 2011 $ 140,405 $ 5,288 $ 27,835 $ 312,689
Carrying amounts
At December 31, 2009 $ 299,279 $ 2,441 $ 115,335 $ 203,800
At December 31, 2010 $ 355,217 $ 1,367 $ 123,475 $ 220,100
At September 30, 2011 $ 321,445 $ 328 $ 97,545 $ 197,333
Residential Properties
properties and land TOTAL
Cost
Balance as at December 31, 2009 $ 10,071 $ 6,978 $ 1,131,626
Assets acquired 286 - 32,991
Foreign exchange movement 1,275 874 135,378
Balance as at December 31, 2010 $ 11,632 $ 7,852 $ 1,299,995
Assets acquired 892 - 61,281
Transfer 10,876 - -
Foreign exchange movement (3,550) (1,463) (232,169)
Balance as at September 30, 2011 $ 19,850 $ 6,389 $ 1,129,107
Accumulated depreciation and
impairment losses
Balance as at December 31, 2009 $ 2,296 $ 830 $ 496,848
Depreciation 135 - 22,507
Foreign exchange movement 302 104 64,664
Balance as at December 31, 2010 $ 2,733 $ 934 $ 584,019
Depreciation 381 - 16,540
Transfer - - -
Foreign exchange movement (568) (174) (111,036)
Balance as at September 30, 2011 $ 2,546 $ 760 $ 489,523
Carrying amounts
At December 31, 2009 $ 7,775 $ 6,148 $ 634,778
At December 31, 2010 $ 8,899 $ 6,918 $ 715,976
At September 30, 2011 $ 17,304 $ 5,629 $ 639,584
8. Property, plant and equipment
Kennedy`s
Vale Project
Crocodile and Spitzkop
River Mine Concentrator PGM Project
(a) (b) (c)
Cost
Balance as at December 31, 2009 $ 585,376 $ 400,017 $ 118,994
Assets acquired 32,728 - 47
Foreign exchange movement 76,470 50,082 7, 316
Balance as at December 31, 2010 $ 694,574 $ 450,099 $ 126,357
Assets acquired 42,532 18,722 10
Transfer (55,783) 55,783 -
Foreign exchange movement (128,474) (92,985) (9,141)
Balance as at September 30, 2011 $ 552,849 $ 431,619 $ 117,226
Accumulated depreciation and
impairment losses
Balance as at December 31, 2009 $ 154,417 $ 342,322 $ -
Depreciation 22,500 - -
Foreign exchange movement 21,796 42,861 -
Balance as at December 31, 2010 $ 198,713 $ 385,183 $ -
Depreciation 15,880 6 60 -
Foreign exchange movement (39,191) (71,838) -
Balance as at September 30, 2011 $ 175,402 $ 314,005 $ -
Carrying amounts
At December 31, 2009 $ 430,959 $ 57,695 $ 118,994
At December 31, 2010 $ 495,861 $ 64,916 $ 126,357
At September 30, 2011 $ 377,447 $ 117,614 $ 117,226
Other
property
Mareesburg plant and
Project equipment TOTAL
(c)
Cost
Balance as at December 31, 2009 $ 27,111 $ 128 $ 1,131,626
Assets acquired 214 2 32,991
Foreign exchange movement 1, 503 7 135,378
Balance as at December 31, 2010 $ 28,828 $ 137 $ 1,299,995
Assets acquired 15 2 61,281
Transfer - - -
Foreign exchange movement (1,563) (6) (232,169)
Balance as at September 30, 2011 $ 27,280 $ 133 $ 1,129,107
Accumulated depreciation and
impairment losses
Balance as at December 31, 2009 $ - $ 109 $ 496,848
Depreciation - 7 22,507
Foreign exchange movement 1 6 64,664
Balance as at December 31, 2010 $ 1 $ 122 $ 584,019
Depreciation - - 16,540
Foreign exchange movement (1) (6) (111,036)
Balance as at September 30, 2011 $ - $ 116 $ 489,523
Carrying amounts
At December 31, 2009 $ 27,111 $ 19 $ 634,778
At December 31, 2010 $ 28,827 $ 15 $ 715,976
At September 30, 2011 $ 27,280 $ 17 $ 639,584
(a) Crocodile River Mine ("CRM")
The Company holds directly and indirectly 87.5% of CRM, which is located on the
eastern portion of the western limb of the Bushveld Complex. The Maroelabult and
Zandfontein sections are currently in production. Development of the Crocette
section recommenced on April 4, 2010.
(b) Kennedy`s Vale Project ("KV") and Concentrator
The Company holds directly and indirectly 87.5% of KV, which is located on the
eastern limb of the Bushveld Complex, near Steelpoort in the Province of
Mpumalanga. It comprises PGM mineral rights on five farms in the Steelpoort
Valley. The development of this project was on hold as at June 30, 2011.
However, the design and construction of a concentrator located on the KV
property is currently in progress and is expected to be completed by the end of
2012. The concentrator will initially be used to process ore from the Mareesburg
Project.
(c) Spitzkop PGM Project and Mareesburg Project
The Company holds directly and indirectly a 93.4% interest in the Spitzkop PGM
Project and a 75.5% interest in the Mareesburg Project. The Company currently
acts as the operator of both the Mareesburg Platinum Project and Spitzkop PGM
Project, both located on the eastern limb of the Bushveld Complex. Construction
of the Mareesburg Project is currently in progress and is expected to be
completed by the end of 2012. The Spitzkop PGM Project is planned to be
developed after the Mareesburg Project goes into production.
(d) Depreciation
Depreciation of $66 and $660 is included in general and administrative expenses
for the three and nine months ended September 30, 2011. This depreciation
pertains to assets which are not currently being used for mining operations.
9. Refining Contract
During the year ended June 30, 2006, the Company acquired a 69% interest in
Barplats and assigned a portion of the purchase price to the off-take contract
governing the sales of Barplats` PGM concentrate production. The initial value
of the contract was $17,939. During the year ended June 30, 2007, the Company
acquired an additional 5% interest in Barplats resulting in an additional
allocation to the contract of $4,802 for a total aggregate value of $22,741.
During the year ended December 31, 2008, the Company acquired an additional
2.47% interest in Barplats. The acquisition did not affect the aggregate value
of the contract.
The value of the contract is amortized over the remaining term of the contract
which is 7.75 years as at September 30, 2011.
Cost
Balance as at December 31, 2009 $ 21,122
Foreign exchange movement 2,645
Balance as at December 31, 2010 $ 23,767
Foreign exchange movement (4,425)
Balance as at September 30, 2011 $ 19,342
Accumulated amortization
Balance as at December 31, 2009 $ 6,953
Amortization 1,513
Foreign exchange movement 1,036
Balance as at December 31, 2010 $ 9,502
Amortization 1,189
Foreign exchange movement (1,933)
Balance as at September 30, 2011 $ 8,758
Carrying amounts
At December 31, 2009 $ 14,169
At December 31, 2010 $ 14,265
At September 30, 2011 $ 10,584
10. Other assets
Other assets consists of a money market fund investment that is classified as
available-for-sale and serves as security for a guarantee issued to the
Department of Mineral Resources of South Africa in respect of the environmental
rehabilitation liability (Note 13). Changes to other assets for the nine months
ended September 30, 2011 are as follows:
Balance, December 31, 2009 $ 2,282
Additional investment $ 955
Service fees (8)
Interest income 185
Foreign exchange movement 409
Balance, December 31, 2010 $ 3,823
Additional investment 5,170
Service fees (6)
Interest income 237
Foreign exchange movement (1,553)
Balance, September 30, 2011 $ 7,671
11. Trade and other payables
September 30, December 31,
2011 2010
Trade payables $ 8,338 $ 10,604
Accrued liabilities 7,367 10,240
Other 5,092 6,165
$ 20,797 $ 27,009
The average credit period of purchases is 1 month. The Company has financial
risk management policies in place to ensure that all payables are paid within
the pre-agreed credit terms.
12. Finance leases
Finance leases relate to mining vehicles with lease terms of 5 years payable
half yearly in advance. The Company has the option to purchase the vehicles for
a nominal amount at the conclusion of the lease agreements. The Company`s
obligations under finance leases are secured by the lessor`s title to the leased
assets. Interest is calculated at the South African prime rate plus 1%. The
finance leases are repayable in full in December 2011. The fair value of the
finance lease liabilities approximated carrying value.
(a) Minimum lease payments
September 30, December 31,
2011 2010
No later than 1 year $ 2,228 $ 3,405
Less: future finance charges (33) (194)
Present value of minimum
lease payments $ 2,195 $ 3,211
September 30, December 31,
2011 2010
No later than 1 year $ 2,195 $ 3,211
13. Provision for environmental rehabilitation
Although the ultimate amount of the environmental rehabilitation provision is
uncertain, the fair value of these obligations is based on information currently
available, including closure plans and applicable regulations. Significant
closure activities include land rehabilitation, demolition of buildings and mine
facilities and other costs.
The provision for environmental rehabilitation at September 30, 2011 is
approximately ZAR 62.5 million ($7,723). The provision was determined using
an inflation rate of 5.49% (December 31, 2010 - 5.49%) and an estimated
life of mine of 20 years for Zandfontein (December 31, 2010 - 20 years), 11
years for Maroelabult (December 31, 2010 - 11 years), 14 years for Crocette
(December 31, 2010 - 14 years), 1 year for Kennedy`s Vale (December 31, 2010 - 1
year) and 22 years for Spitzkop (December 31, 2010 - 22 years). A discount rate
of 8.29% was used (December 31, 2010 - 8.29%). A guarantee of $7,671 (December
31, 2010 - $3,823) has been issued to the Department of Mineral Resources (Note
10). The guarantee will be utilized to cover expenses incurred to rehabilitate
the mining area upon closure of the mine. The undiscounted value of this
liability is approximately ZAR 215.4 million ($26,606).
Changes to the environmental rehabilitation provision are as follows:
Balance, December 31, 2009 $ 8,152
Revision in estimates (961)
Interest expense (Note 17) 694
Foreign exchange movement 1,049
Balance, December 31, 2010 $ 8,934
Revision in estimates -
Interest expense (Note 17) 525
Foreign exchange movement (1 ,736)
Balance, September 30, 2011 $ 7,723
14. Commitments
The Company has committed to capital expenditures on projects of approximately
ZAR 247 million ($30,459) as at September 30, 2011 (December 31, 2010 - ZAR 86
million, $13,056).
15. Issued capital
(a) Authorized
- Unlimited number of preferred redeemable, voting, non-participating shares
without nominal or par value,
- Unlimited number of common shares with no par value.
(b) Issued and outstanding
Changes to the number of shares issued and outstanding are as follows:
September 30, 2011 December 31, 2010
Number of Nu mber of
shares shares
Balance outstanding, beginning of period 9 07,589,567 680,893,325
Public offering - 224,250,000
Shares issued upon option exercise 5 98,240 2,446,242
Balance outstanding, end of period 9 08,187,807 907,589,567
(c) December 30, 2010 Public Offering
On December 30, 2010, the Company completed a public offering (the "Public
Offering"). The Public Offering consisted of 224,250,000 common shares, of which
195,361,476 common shares were sold at a price of Cdn$1.55 and 28,888,524 common
shares were sold at a price of GBP0.9568. Share issue costs of Cdn$16,501 were
incurred.
(d) Share options
The Company has an incentive plan (the "2011 Plan"), approved by the Company`s
shareholders at its annual general meeting held on June 9, 2011, under which
options to purchase common shares may be granted to its directors, officers,
employees and others at the discretion of the Board of Directors. Under the
terms of the 2011 Plan:
- 79 million common shares are reserved for issuance upon the exercise of
options, of which 18,684,497 remain available for issuance at September 30,
2011.
- All outstanding options at June 9, 2011 granted under the Company`s previous
plan (the "2008 Plan") will continue to exist under the 2011 plan provided that
the fundamental terms governing such options will be deemed to be those under
the 2008 Plan.
- Each option granted shall be for a term not exceeding five years from the date
of being granted and the vesting period is determined based on the discretion of
the Board of Directors. Vesting is dependent on continued employment with the
Company.
- The option exercise price is set at the date of the grant and cannot be less
than the closing market price of the Company`s common shares on the Toronto
Stock Exchange on the day immediately preceding the day of the grant of the
option.
- The 2011 Plan includes share appreciation rights providing for an optionee to
elect to exercise options and to receive an amount in common shares equal to the
difference between fair market value at the time of exercise and the exercise
price for the options exercised.
(i) Movements in share options during the period
The changes in share options during the nine months ended September 30, 2011 and
year ended December 31, 2010 were as follows:
September 30, 2011
Weighted
average
Number of exercise
options price
Cdn$
Balance outstanding, beginning of period 57,976,836 1.52
Options granted 9,875,000 1.55
Options exercised (741,333) 0.32
Options forfeited (6,795,000) 1.69
Balance outstanding, end of period 6 ,315,503 1.53
December 31, 2010
Weighted
average
Number of exercise
options price
Cdn $
Balance outstanding, beginning of period 59,575,834 1.48
Options granted 2,231,000 1.30
Options exercised (2,794,995) 0.33
Options forfeited (1,035,003) 1.82
Balance outstanding, end of period 57,976,836 1.52
598,240 shares were issued upon the exercise of 741,333 share options during the
nine months ended September 30, 2011. All 741,333 options exercised were non-
cash exercises in accordance with the 2011 Plan`s share appreciation rights. The
weighted average closing share price at the date of exercise was Cdn$1.66.
(ii) Fair value of share options granted in the period
The fair value of each option granted is estimated at the time of the grant
using the Black-Scholes option pricing model with weighted average assumptions
for grants as follows:
2011
March 25
Exercise price Cdn$1.55
Closing market price on day
preceding date of grant Cdn$1.38
Grant date share price Cdn$1.39
Risk-free interest rate 2.69%
Expected life 5
Annualized volatility 73%
Dividend rate 0%
Grant date fair value Cdn$0.82
2010
January 18
Exercise price Cdn $1.30
Closing market price on day
preceding date of grant Cdn $1.30
Grant date share price Cdn $1.42
Risk-free interest rate 1 .73%
Expected life 3 years
Annualized volatility 83%
Dividend rate 0%
Grant date fair value Cdn $0.80
Exercise price for the March 25, 2011 option issuance is the December 30, 2010
public offering price. Exercise price for the January 18, 2010 option issuance
is the closing market price on the day preceding the date the options were
granted, as defined by the 2008 Plan.
Grant date share price is the closing market price on the day the options were
granted.
(iii) Share options outstanding at the end of the period
The following table summarizes information concerning outstanding and
exercisable options at September 30, 2011:
Remaining
Options Options Exercise Contractual
outstanding exercisable price Life (Years) Expiry date
Cdn $
250,000 250,000 1.70 0.16 November 27, 2011
19,987,500 19,987,500 1.82 0.44 March 7, 2012
13,782,001 13,782,001 0.32 2.22 December 18, 2013
400,000 400,000 0.52 2.75 June 30, 2014
95,002 45,000 0.76 3.09 November 3, 2014
2,226,000 2,226,000 1.30 3.31 January 18, 2015
9,875,000 9,875,000 1.55 4.49 March 25, 2016
13,070,000 13,070,000 2.31 6.02 October 5, 2017
460,000 460,000 3.38 6.40 February 20, 2018
170,000 170,000 3.38 6.49 March 27, 2018
60,315,503 60,265,501 2.91
The weighted average exercise price of options exercisable at September 30, 2011
is Cdn$1.53.
(e) Key skills retention plan
In 2010, the Company`s South African subsidiary, Barplats Investments Limited
("BIL"), implemented a key skills retention plan for its senior employees in
South Africa. The purpose of the plan is to retain key employees, attract new
employees as the need arises and remain competitive with other South African
mining companies.
The plan operates through a trust ("the Trust") which purchases shares of the
Company on behalf of the employees. These shares then vest to the employees over
time.
In February, 2011, the Trust purchased 198,563 shares pursuant to the plan which
resulted in a share-based payment expense of $19 and $99 in the three and nine
16. Non-controlling interest
The non-controlling interests are comprised of the following:
Balance, December 31, 2009 $ 10,041
Non-controlling interests` share of loss in Barplats (866)
Non-controlling interests` share of interest on advances to Gubevu (2,709)
Foreign exchange movement 762
Balance, December 31, 2010 $ 7,228
Non-controlling interests` share of loss in Barplats (4,490)
Non-controlling interests` share of interest on advances to Gubevu (2,064)
Foreign exchange movement (285)
Balance, September 30, 2011 $ 389
17. Finance costs
Three months ended
September 30,
2011 2010
Interest on revenue advances $ 106 $ 153
Interest on finance leases 42 66
Interest on provision for
environmental rehabilitation 171 173
Interest on tax - -
Other interest 3 -
$ 322 $ 39 2
Nine months ended
September 30,
2011 2010
Interest on revenue advances $ 353 $ 410
Interest on finance leases 145 215
Interest on provision for
environmental rehabilitation 525 509
Interest on tax 171 209
Other interest 3 12
$ 1,197 $ 1,355
18. Earnings per share
The weighted average number of ordinary shares for the purposes of diluted
earnings per share reconciles to the weighted average number of ordinary shares
used in the calculation of basic earnings per share as follows:
Three months ended
September 30,
2011 2010
(in thousands)
Weighted average number of
ordinary shares used in the
calculation of basic earnings per share 908,188 683,038
Shares deemed to be issued for no consideration
in respect of options 8,518 10,371
Weighted average number of ordinary shares used
in the calculation of diluted earnings per share 916,706 693,409
Nine months ended
September 30,
2011 2010
(in thousands)
Weighted average number of
ordinary shares used in the
calculation of basic earnings per share 908,129 682,350
Shares deemed to be issued
for no consideration in respect of options - 11,404
Weighted average number of ordinary shares used
in the calculation of diluted earnings per share 908,129 693,754
The earnings and loss, respectively, used to calculate basic and diluted
earnings per share for the three and nine months ended September 30, 2011 was
$1,364 and ($12,220) (September 30, 2010 - earnings of $4,039 and $8,311),
respectively.
The following potential ordinary shares, outstanding at September 30, 2011, are
anti-dilutive and are therefore excluded from the weighted average number of
ordinary shares for the purposes of diluted earnings per share:
Three months ended Nine months ended
September 30, September 30,
2011 2010 2011 2010
(in thousands) (in thousands)
Options 46,039 43,099 46,039 43,099
19. Retirement benefit plans
The Barplats Provident Fund is an independent, defined contribution plan
administered by Liberty Life Limited in South Africa. The costs associated with
the defined contribution plan included in net (loss) profit for the three and
nine months were $925 and $3,035 (September 30, 2010 - $991 and $2,859),
respectively. The total number of employees in the plan at September 30, 2011
was 1,444 (September 30, 2010 - 1,805).
20. Related party transactions
Balances and transactions between the Company and its subsidiaries have been
eliminated on consolidation and are not disclosed in this note. Details of the
transactions between the Company and other related parties are disclosed below.
(a) Trading transactions
The Company`s related parties consist of companies owned by executive officers
and directors as follows:
Nature of transactions
Andrews PGM Consulting Consulting
Buccaneer Management Inc. Management
Jazz Financial Ltd. Management
Maluti Services Limited General and administrative
Xiste Consulting Ltd. Management
The Company incurred the following fees and expenses in the normal course of
operations in connection with companies owned by key management and directors.
Expenses have been measured at the exchange amount which is determined on a
cost recovery basis.
Three months ended
September 30,
Note 2011 2010
Consulting fees (i) $ 47 $ 53
General and administrative
expenses 90 29
Management fees 354 280
$ 491 $ 362
Nine months ended
September 30,
2011 2010
Consulting fees $ 131 $ 118
General and administrative expenses 145 91
Management fees 1,115 900
$ 1,391 $ 1,109
(i) The Company paid fees to a private company controlled by a director of the
Company for consulting services performed outside of his capacity as a director.
Amounts due to related parties are unsecured, non-interest bearing and due on
demand. Accounts payable at September 30, 2011 included $17 (December 31, 2010 -
$1,089) which was due to private companies controlled by officers of the
Company.
(b) Compensation of key management personnel
The remuneration of directors and other members of key management personnel
during the three and nine months ended September 30, 2011 and 2010 were as
follows:
Three months ended
September 30,
Note 2011 2010
Salaries and directors`
fees (i) $ 676 $ 583
Share-based payments (ii) - -
$ 676 $ 583
Nine months ended
September 30,
2011 2010
Salaries and directors`
fees $ 2,028 $ 1,699
Share-based payments 7,996 1,627
$ 10,024 $ 3,326
(i) Salaries and directors` fees include consulting and management fees
disclosed in Note 20(a).
(ii) Share-based payments are the fair value of options granted to key
management personnel.
(iii) Key management personnel were not paid post-employment benefits,
termination benefits, or other long-term benefits during the three and nine
months ended September 30, 2011 and 2010.
21. Segmented information
(a) Operating segment - The Company`s operations are primarily directed towards
the acquisition, exploration and production of platinum group metals in South
Africa.
(b) Geographic segments - The Company`s revenues and expenses by geographic
areas for the three and nine months ended September 30, 2011 and 2010 and assets
by geographic areas as at September 30, 2011 and December 31, 2010 are as
follows:
Three months ended September 30, 2011
Crocodile Kennedy`s
River Mine Vale Spitzkop
Current assets $ 33,318 $ 4,962 $ 1,547
Property, plant and equipment 377,447 117,614 117,226
Refining contract 10,584 - -
Other Assets 7,671 - -
$ 429,020 $ 122,576 $ 118,773
Property, plant and
equipment expenditures $ 18,204 $ 9,551 $ 10
Revenue $ 31,453 $ - $ -
Production costs (28,541) - -
Depletion and depreciation (5,502) - -
General and administrative expenses (1,162) (163) (50)
Share-based payment (3) - -
Interest income 340 22 8
Finance costs (280) (42) -
Foreign exchange gain (loss) 1,041 (1) -
(Loss) profit before income taxes (2,654) (184) (42)
Deferred income tax recovery 447 - -
Net (loss) profit $ (2,207) $ (184) $ (42)
Three months ended September 30, 2011
Total
South
Mareesburg Other Africa
Current assets $ 68 $ 737 $ 40,632
Property, plant and equipment 27,280 - 639,567
Refining contract - - 10,584
Other Assets - - 7,671
$ 27,348 $ 737 $ 698,454
Property, plant and equipment expenditures $ - $ - $ 27,765
Revenue $ - $ - $ 31,453
Production costs - - (28,541)
Depletion and depreciation - - (5,502)
General and administrative expenses (6) (1) (1,382)
Share-based payment - - (3)
Interest income - - 370
Finance costs - - (322)
Foreign exchange gain (loss) - - 1,040
(Loss) profit before income taxes (6) (1) (2,887)
Deferred income tax recovery - - 447
Net (loss) profit $ (6) $ (1) $ (2,440)
Three months ended September 30, 2011
Barbados
and BVI Canada TOTAL
Current assets $ 1,503 $ 263,982 $ 306,117
Property, plant and equipment - 17 639,584
Refining contract - - 10,584
Other Assets - - 7,671
$ 1,503 $ 263,999 $ 963,956
Property, plant and equipment expenditures $ - $ - $ 27,765
Revenue $ - $ - $ 31,453
Production costs - - (28,541)
Depletion and depreciation - - (5,502)
General and administrative expenses (38) (1,126) (2,546)
Share-based payment - (19) (22)
Interest income - 1,006 1,376
Finance costs - - (322)
Foreign exchange gain (loss) - 2,068 3,108
(Loss) profit before income taxes (38) 1,929 (996)
Deferred income tax recovery - - 447
Net (loss) profit $ (38) $ 1,929 $ (549)
Three months ended September 30,2010
Crocodile Kennedy`s
River Mine Vale Spitzkop
Property, plant and equipment
expenditures $ 9,681 $ - $ 30
Revenue $ 38,073 $ - $ -
Production costs (26,953) - -
Depreciation and amortization (5,782) - -
General and administrative expenses (909) (274) (5)
Share-based payment (16) - -
Interest income 423 - -
Finance costs (194) (191) (7)
Foreign exchange gain (loss) 21 - -
Profit (loss) before income taxes 4,663 (465) (12)
Deferred income tax recovery 561 - -
Net profit (loss) $ 5,224 $ (465) $ (12)
Three months ended September 30,2010
Total
South
Mareesburg Other Africa
Property, plant and equipment expenditures $ 13 $ - $ 9,724
Revenue $ - $ - $ 38,073
Production costs - - (26,953)
Depreciation and amortization - - (5,782)
General and administrative expenses (3) (3) (1,194)
Share-based payment - - (16)
Interest income 2 - 425
Finance costs - - (392)
Foreign exchange gain (loss) - - 21
Profit (loss) before income taxes (1) (3) 4,182
Deferred income tax recovery - - 561
Net profit (loss) $ (1) $ (3) $ 4,743
Canada TOTAL
Property, plant and equipment expenditures $ - $ 9,724
Revenue $ - $ 38,073
Production costs - (26,953)
Depreciation and amortization - (5,782)
General and administrative expenses (992) (2,186)
Share-based payment - (16)
Interest income 34 459
Finance costs - (392)
Foreign exchange gain (loss) (597) (576)
Profit (loss) before income taxes (1,555) 2,627
Deferred income tax recovery - 561
Net profit (loss) $ (1,555) $ 3,188
Nine months ended September 30, 2011
Crocodile Kennedy`s
River Mine Vale Spitzkop
Property, plant and
equipment expenditures $ 42,532 $ 18,722 $ 10
Revenue $ 94,031 $ - $ -
Production costs (88,987) - -
Depletion and depreciation (15,880) - -
General and administrative expenses (3,703) (1,110) 121
Share-based payment (296) - -
Interest income 1,069 40 8
Finance costs (908) (289) -
Foreign exchange gain (loss) 1,829 (1) -
(Loss) profit before income taxes (12,845) (1,360) 129
Deferred income tax recovery 1,040 - -
Net (loss) profit $ (11,805) $ (1,360) $ 129
Nine months ended September 30, 2011
Total
South
Mareesburg Other Africa
Property, plant and
equipment expenditures $ 15 $ - $ 61,279
Revenue $ - $ - $ 94,031
Production costs - - (88,987)
Depletion and depreciation - - (15,880)
General and administrative expenses (42) (3) (4,737)
Share-based payment - - (296)
Interest income - - 1,117
Finance costs - - (1,197)
Foreign exchange gain (loss) - - 1,828
(Loss) profit before income taxes (42) (3) (14,121)
Deferred income tax recovery - - 1,040
Net (loss) profit $ (42) $ (3) $ (13,081)
Nine months ended September 30, 2011
Barbados
and BVI Canada TOTAL
Property, plant and
equipment expenditures $ - $ 2 $ 61,281
Revenue $ - $ - $ 94,031
Production costs - - (88,987)
Depletion and depreciation - - (15,880)
General and administrative expenses (76) (3,760) (8,573)
Share-based payment - (7,995) (8,291)
Interest income - 3,181 4,298
Finance costs - - (1,197)
Foreign exchange gain (loss) - 2,957 4,785
(Loss) profit before income taxes (76) (5,617) (19,814)
Deferred income tax recovery - - 1,040
Net (loss) profit $ (76) $ (5,617) $ (18,774)
Nine months ended September 30, 2010
Crocodile Kennedy`s
River Mine Vale Spitzkop
Property, plant and
equipment expenditures $ 20,318 $ - $ 38
Revenue $ 109,384 $ - $ -
Production costs (79,511) - -
Depreciation and amortization (16,625) - -
General and administrative expenses (3,276) (1,081) (12)
Share-based payment (63) - -
Interest income 1,147 - -
Finance costs (778) (557) (20)
Foreign exchange gain (loss) 12 - -
Profit (loss) before income taxes 10,290 (1,638) (32)
Deferred income tax recovery 1,657 - -
Net profit (loss) $ 11,947 $ (1,638) $ (32)
Nine months ended September 30, 2010
Total
South
Mareesburg Other Africa
Property, plant and equipment expenditures $ 90 $ - $ 20,446
Revenue $ - $ - $ 1 09,384
Production costs - - (79,511)
Depreciation and amortization - - (16,625)
General and administrative expenses (5) (6) (4,380)
Share-based payment - - (63)
Interest income 6 - 1,153
Finance costs - - (1,355)
Foreign exchange gain (loss) - - 12
Profit (loss) before income taxes 1 (6) 8,615
Deferred income tax recovery - - 1,657
Net profit (loss) $ 1 $ (6) $ 10,272
Canada TOTAL
Property, plant and equipment expenditures $ - $ 20,446
Revenue $ - $ 109,384
Production costs - (79,511)
Depreciation and amortization - (16,625)
General and administrative expenses (3,039) (7,419)
Share-based payment (1,705) (1,768)
Interest income 99 1,252
Finance costs - (1,355)
Foreign exchange gain (loss) (356) (344)
Profit (loss) before income taxes (5,001) 3,614
Deferred income tax recovery - 1,657
Net profit (loss) $ (5,001) $ 5,271
December 31, 2010
Crocodile Kennedy`s
River Mine Vale Spitzkop
Current assets $ 45,787 $ 445 $ 1,669 $61
Property, plant and
equipment 4 95,861 64,916 126,357 28,827
Refining contract 14,265 - - -
Other Assets 3,823 - - -
$ 5 59,736 $ 65,361 $ 128,026 $ 28,888
December 31, 2010
Total South
Other Africa Canada TOTAL
Current assets $ 997 $ 48,959 $ 343,952 $ 3 92,911
Property, plant and
equipment - 715,961 15 7 15,976
Refining contract - 14,265 - 14,265
Other Assets - 3,823 - 3,823
$ 997 $ 783,008 $ 343,967 $ 1,126,975
For the three and nine months ended September 30, 2011 and 2010, substantially
all of the Company`s PGM production was sold to one customer.
22. Contingency
In June 2011, the Company became aware that the law firm of Siskinds LLP of
London, Ontario, had filed a "Notice of Application" under the Class Action
Proceedings Act, 1992, in the Ontario Superior Court of Justice against the
Company and three of its directors and officers. The Notice of Application seeks
permission of the Court to grant leave or permission to commence a lawsuit under
the Securities Act of Ontario and other provinces in respect to certain alleged
breaches of disclosure obligations. In July 2011, the Company and its officers
and directors were served with court documents. The Company believes the
proposed action has no merit and intends to continue to vigorously defend the
action.
23. Events after the reporting period
There were no events that required adjustment to, or disclosure in, the
financial statements after the reporting period from October 1, 2011 to November
9, 2011.
Date: 14/11/2011 15:10:00 Supplied by www.sharenet.co.za
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