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MWNT - Mine Waste Solutions - Interim abridged consolidated results of Mine
Waste Solutions (Unaudited)
Mine Waste Solutions Pty Ltd
(Incorporated in the Republic of South Africa)
(Registration number 2000/1443/07)
(a wholly-owned subsidiary of First Uranium Corporation)
JSE code MWNT ISIN: ZAE000156261
INTERIM ABRIDGED CONSOLIDATED RESULTS OF MINE WASTE SOLUTIONS (UNAUDITED)
The historical financial information of Mine Waste Solutions (Proprietary)
Limited (the "Company" or "Mine Waste Solutions" or "MWS") has been extracted
from the unaudited interim consolidated financial statements of the Company for
the six months ended 30 September 2011. These extracts are the responsibility of
the Board. Please refer to the Management Discussion and Analysis of First
Uranium Corporation, the ultimate holding company of MWS, for the three and six
months ended 30 September 2011, for commentary on the financial information of
MWS.
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September 31 March
2011 2011
Notes R R
ASSETS
Non-current assets
Property, plant and equipment 2 3 477 347 663 3 452 107 865
Environmental rehabilitation trust fund 43 411 943 38 769 178
Deferred tax asset 529 082 123 321 261 015
4 049 841 729 3 812 138 058
Current assets
Loans to group companies 3 462 875 415 335 189 151
Cash and cash equivalents 25 331 074 38 473 337
Trade and other receivables 34 107 533 50 154 630
Inventories 25 845 177 18 202 931
548 159 199 442 020 049
Total assets 4 598 000 928 4 254 158 107
EQUITY AND LIABILITIES
Equity
Share capital 89 147 994 89 147 994
Convertible notes 5 45 431 329 46 750 880
Reserves 13 426 750 12 286 772
Accumulated loss (724 948 216) (276 618 014)
(576 942 143) (128 432 368)
Non-current liabilities
Derivative financial liability 4 2 398 428 595 1 985 271 170
Loans from group companies 3 1 651 079 746 1 578 500 038
Convertible notes 5 386 105 090 387 578 798
Environmental rehabilitation provision 215 305 629 210 711 112
4 650 919 060 4 162 061 118
Current liabilities
Loans from group companies 3 64 536 617 51 540 920
Trade and other payables 76 239 103 81 113 670
Derivative financial liability 4 381 929 922 86 556 398
Current tax payable 1 318 36 9 1 318 369
524 024 011 220 529 357
Total Liabilities 5 174 943 071 4 382 590 475
Total Equity and Liabilities 4 598 000 928 4 254 158 107
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended
30 September 30 September
2011 2010
Notes R R
Revenue 419 505 272 270 227 309
Cost of sales (206 007 151) (127 835 896)
Gross profit 8 213 498 121 142 391 413
Other income 2 021 312 343 721
Derivative expense related to MWS
Gold Stream Transaction 9 (738 008 310) (342 982 387)
Franco-Nevada penalty 7 - (3 138 846)
Other expenditures (32 926 686) (28 949 994)
Operating loss (555 415 563) (232 336 093)
Investment income 854 481 2 090 841
Interest and accretion expense 10 (93 612 036) (34 004 295)
Accretion on environmental
rehabilitation provision (4 623 074) (4 594 518)
Foreign exchanges gains (losses) (3 355 119) (4 489 246)
Loss before taxation (656 151 311) (273 333 311)
Taxation 207 821 109 59 054 780
Loss for the period (448 330 202) (214 278 531)
Other comprehensive income 455 178 150 558
Total comprehensive loss (447 875 024) (214 127 973)
Attributable to the owners of the
Parent
Loss for the period (448 330 202) (214 278 531)
Other comprehensive income 455 178 150 558
(447 875 024) (214 127 973)
Basic and diluted loss per share
(cents per share) 14 (1 179.82) (563.89)
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2011
Share Share Total share
Capital premium capital
R R R
Balance at 1 April 2011 380 89 147 614 89 147 994
Total comprehensive loss for the period - - -
First Uranium: Parent contribution - - -
Equity portion of value of Rand Notes
converted to common shares in First
Uranium Corporation - - -
Balance at 30 September 2011 380 89 147 614 89 147 994
Equity Share
portion of based
convertible payment Fair value
notes reserve reserves
R R R
Balance at 1 April 2011 46 750 880 11 517 159 769 613
Total comprehensive loss for the period - - 455 178
First Uranium: Parent contribution - 684 800 -
Equity portion of value of Rand Notes
converted to common shares in First
Uranium Corporation (1 319 551) - -
Balance at 30 September 2011 45 431 329 12 201 959 1 224 791
Note 5
Total Accumulated Total
reserves loss equity
R R R
Balance at 1 April 2011 12 286 772 (276 618 014) (128 432 368)
Total comprehensive loss for
the period 455 178 (448 330 202) (447 875 024)
First Uranium:Parent contribution 684 800 - 684 800
Equity portion of value of Rand
Notes converted to common shares
in First Uranium Corporation - - (1 319 551)
Balance at 30 September 2011 13 426 750 (724 948 216) (576 942 143)
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2010
Share Share Total share
Capital premium capital
R R R
Balance at 1 April 2010 380 89 147 614 89 147 994
Total comprehensive loss for the period - - -
First Uranium: Parent contribution - - -
Equity portion of convertible notes on
issue of Rand Notes - - -
Balance at 30 September 2010 380 89 147 614 89 147 994
Equity Share
portion of based
convertible payment Fair value
notes reserve reserves
R R R
Balance at 1 April 2010 - 6 535 706 368 875
Total comprehensive loss for the period - - 150 558
First Uranium: Parent contribution - 2 835 966 -
Equity portion of convertible notes
on issue of Rand Notes 50 346 776 - -
Balance at 30 September 2010 50 346 776 9 371 672 519 433
Note 5
Total Accumulated Total
reserves loss equity
R R R
Balance at 1 April 2010 6 904 581 (46 916 522) 49 136 053
Total comprehensive loss for the
period 150 558 (214 278 531) (214 127 973)
First Uranium: Parent
contribution 2 835 966 - 2 835 966
Equity portion of convertible
notes on issue of Rand Notes - - 50 346 776
Balance at 30 September 2010 9 891 105 (261 195 053) (111 809 178)
Although the group reflect a net liability position, it is not deemed
technically insolvent as the derivative liability (note 12) is based on
estimated production which provides a higher fair value of the cash generating
mining assets.
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 September 30 September
2011 2010
Notes R R
Cash flows from operating activities
Cash generated from operations 18 251 099 255 138 752 751
Cash interest received 854 481 2 090 841
Cash interest paid 5 (23 023 274) (21 951 559)
Net cash generated by operating
activities 228 930 462 118 892 033
Cash flows from investing activities
Purchase of property, plant and equipment (110 687 128) (326 100 566)
Increase in rehabilitation trust funds (4 216 142) (2 240 573)
Net cash utilised in investing
activities (114 903 270) (328 341 139)
Cash flows from financing activities
Net proceeds from the issue of
convertible notes - 278 558 190
Net cash movement on loans to/from
related companies (127 169 455) 46 676 367
Net cash from financing activities (127 169 455) 325 234 557
Total cash movement for the period (13 142 263) 115 785 451
Cash at the beginning of the period 38 473 337 44 981 676
Total cash at end of the period 25 331 074 160 767 127
NOTES TO THE CONDENSED FINANCIAL INFORMATION
1. Presentation of Financial Statements
The unaudited interim consolidated financial information has been prepared in
accordance with International Accounting Standards (IAS) 34: Interim Financial
Reporting, JSE Listing Requirements, the AC 500 standards as issued by the
Accounting Practices Board or its successor and in the manner required by the
Companies Act of South Africa. The interim consolidated financial information
should be read in conjunction with the annual financial statements for the year
ended 31 March 2011. These financials have been prepared in accordance with
International Financial Reporting Standards and presented in South Africa Rand,
the Company`s functional currency.
2. Property, plant and equipment
Accumulated Carrying
Cost Depreciation Value
30 September 2011 R R R
Buildings 20 674 655 (323 407) 20 351 248
Mining assets 3 616 232 381 (227 853 598) 3 388 378 783
Furniture and fixtures 5 204 863 (1 714 756) 3 490 107
Motor vehicles 4 430 397 (2 160 081) 2 270 316
Computer equipment and
software 2 095 899 (1 610 397) 485 502
Tailings for processing 70 444 570 (8 072 863) 62 371 707
Total 3 719 082 765 (241 735 103) 3 477 347 663
Accumulated Carrying
Cost Depreciation Value
31 March 2011 R R R
Buildings 20 674 655 (269 725) 20 404 930
Mining assets 3 545 495 216 (183 470 164) 3 362 025 052
Furniture and fixtures 5 204 863 (1 293 440) 3 911 423
Motor vehicles 4 354 739 (1 730 422) 2 624 317
Computer equipment and
software 2 095 899 (1 325 463) 770 436
Tailings for processing 70 444 570 (8 072 863) 62 371 707
Total 3 648 269 942 (196 162 077) 3 452 107 865
Reconciliation of property, plant and equipment
Opening
For the six months ended Balance Additions Disposals
30 September 2011 R R R
Buildings 20 404 931 - -
Mining assets 3 362 025 051 70 737 166 -
Furniture and fixtures 3 911 423 - -
Motor vehicles 2 624 317 75 658 -
Computer equipment and software 770 436 - -
Tailings for processing 62 371 707 - -
3 452 107 865 70 812 824 -
Closing
For the six months ended Depreciation Balance
30 September 2011 R R
Buildings (53 683) 20 351 248
Mining assets (44 383 434) 3 388 378 783
Furniture and fixtures (421 316) 3 490 107
Motor vehicles (429 659) 2 270 316
Computer equipment and software (284 934) 485 502
Tailings for processing - 62 371 707
(45 573 026) 3 477 347 663
Reconciliation of property, plant and equipment
Opening
For the six months ended Balance Additions Disposals
30 September 2010 R R R
Buildings 20 512 296 2 550 377 -
Mining assets 2 794 555 174 303 224 265 -
Furniture and fixtures 4 593 892 - -
Motor vehicles 3 545 599 258 000 (164 817)
Computer equipment and software 1 245 805 - -
Tailings for processing 65 368 229 - -
2 889 820 995 306 032 642 (164 817)
Closing
For the six months ended Depreciation Balance
30 September 2010 R R
Buildings (53 682) 23 008 991
Mining assets (19 199 819) 3 078 579 620
Furniture and fixtures (407 150) 4 186 742
Motor vehicles (328 068) 3 310 714
Computer equipment and software (306 480) 939 325
Tailings for processing (1 693 501) 63 674 728
(21 988 700) 3 173 700 120
Opening
Balance Additions Disposals
For the year ended 31 March 2011 R R R
Buildings 20 512 296 - -
Mining assets 2 794 555 173 610 457 004 -
Furniture and fixtures 4 648 022 13 947 -
Motor vehicles 3 545 600 - (164 817)
Computer equipment and software 1 191 675 20 850 -
Tailings for processing 65 368 229 - -
2 889 820 995 610 491 801 (164 817)
Closing
Depreciation Balance
For the year ended 31 March 2011 R R
Buildings (107 366) 20 404 930
Mining assets (42 987 125) 3 362 025 052
Furniture and fixtures (750 546) 3 911 423
Motor vehicles (756 466) 2 624 317
Computer equipment and software (442 089) 770 436
Tailings for processing (2 996 522) 62 371 707
(48 040 114) 3 452 107 865
Capitalised expenditure for the six months ended 30
September 2011 2010
R R
Decommissioning asset raised - 22 720 454
Share based compensation capitalised 684 798 2 835 966
Interest on Facility with Simmer and Jack Mines,
Limited - 1 759 886
Interest on Loan from First Uranium Limited
capitalised 11 676 576 70 278 809
12 361 374 97 595 115
The company has considered any significant changes and a potential decline in
the market value of the assets. No indication existed pertaining to an
impairment of the assets of the company.
A register containing the information required by paragraph 22(3) of Schedule 4
of the Companies Act is available for inspection at the registered office of the
company. These assets are encumbered as set out in Note 4, Derivative financial
liability and Note 5, Convertible notes.
3. Loans to (from) group companies
30 September 31 March
2011 2011
R R
Holding company
First Uranium Corporation (64 536 617) (51 540 720)
This loan is interest free and has no
fixed repayment terms.
First Uranium Limited - Luxembourg Branch (1 651 079 746) (1 578 500 038)
This loan bears interest at the South
African banking institutions prime
lending rate and is repayable on or before
31 May 2012.
First Uranium (Proprietary) Limited 71 089 022 69 258 556
This loan is interest free and has no
fixed repayment terms.
Fellow subsidiaries
Ezulwini Mining Company (Proprietary)
Limited 391 786 393 265 830 595
This loan is interest free and has no
fixed repayment terms.
(1 252 740 948) (1 294 851 807)
Current assets 462 875 415 335 189 151
Non-current liabilities (1 651 079 746) (1 578 500 038)
Current liabilities (64 536 617) (51 540 920)
(1 252 740 948) (1 294 851 807)
As there are no fixed repayment dates, the loans from group companies (excluding
the loan from First Uranium Limited - Luxembourg Branch) have been disclosed as
current and the carrying amounts therefore approximate the fair values.
4. Derivative financial liability
Gold Wheaton (Barbados) Corporation (GW) was a wholly owned subsidiary of Gold
Wheaton Gold Corp. (GLW). On 14 March 2011, Franco-Nevada Corporation acquired
all of the outstanding common shares of GLW that it did not already own and GLW
amalgamated with a wholly owned subsidiary of Franco-Nevada
Corporation to form Franco-Nevada GLW Holdings Corp. (FNGLW) and GW changed its
name to Franco-Nevada (Barbados) Corporation (FN). Consequently, going forward
in the financial statements of the Corporation all references to GLW and GW will
be FNGLW and FN, respectively.
On 1 December 2008, MWS, through its wholly-owned subsidiary Chemwes, signed a
definitive agreement with Franco Nevada (FN), whereby FN acquired the right to
receive 25 percent of the life-of-mine production from MWS (the MWS Gold Stream
Transaction). Under the terms of the agreement, FN paid MWS US$125 million
upfront. In addition, FN will make an ongoing payment equal to the lesser of
US$400 per ounce (the Fixed Price) (subject to an annual inflation adjustment of
1 percent, starting in the fourth year after following receipt of the first
payment) and the prevailing sport price per ounce, at the time the gold is
delivered by MWS under the contract.
This transaction is classified as a derivative financial liability and accounted
for as such. The financial liability is fair valued using the Black Scholes
pricing model. All cash received and cost of production relating to the
delivered ounces are recognised as part of the derivative expense related to the
Gold Stream Transactions along with the revaluation effects of the financial
derivative liability.
During the six months ended 30 September 2011 MWS delivered 12,151 (30 September
2010: 10,436; 31 March 2011: 19 873) ounces to FN. The cash received and cost of
sales related to the ounces delivered to FN as well as the effects of revaluing
the financial derivative liability at the end of the year were recognised in the
statement of comprehensive income.
Under the terms of the MWS Gold Stream Transaction, the upfront payment is
reduced by an amount equal to the difference between the market price of gold on
the date of gold delivery to FN and the Fixed Price of the gold multiplied by
the total ounces of gold delivered to FN (the Uncredited Balance). At 30
September 2011 the Uncredited Balance was R462 million (31 March 2011: R812
million).
Pursuant to the MWS Gold Stream Transaction, MWS granted to FN a special bond
over certain of the tailings dams and a pledge of 25% of the gold production
from MWS. First Uranium has guaranteed the obligations owed by MWS to FN.
Pursuant to the Offering, the Corporation settled the completion penalty
obligation to FN in respect of the MWS Gold Stream Transaction with the issuance
of 14 million common shares of First Uranium to FN and a commitment by the
Corporation to complete construction of the third gold plant module at MWS and
satisfaction of the Technical Completion Test pursuant to the MWS Gold Stream
Transaction prior to 1 September 2011. MWS was able to complete the first phase
of the Technical Completion Test which entailed MWS reaching Steady-State
Production. The second phase entailed meeting certain key criteria with respect
to tonnes of material processed, average feed grade to the plant and gold
recovery for a minimum continuous period of 14 days. The second phase of the
test was successfully completed on 24 August 2011 with subsequent confirmation
received from FN on 29 August 2011. The successful completion of the Technical
Completion Test prior to 1 September 2011 avoids the imposition of the penalties
provided under the MWS Gold Stream Transaction in connection with the test.
The derivative financial liability is fair valued using the Black Scholes model.
The following assumptions were used for the valuation at 30 September 2011:
* Strike price of US$400 per ounce of gold
* Gold price at the end of the reporting period of US$1,631
* Volatility of 30% on the gold price
* 3 month US Libor rate - 0.2446
* Gold lease rates as at the time of valuations - 0.01
* Life of mine expected gold production
30 September 31 March
2011 2011
R R
Balance, beginning of the period 2 071 827 568 1 467 982 865
Delivery of gold to settle the derivative
liability (108 926 630) (130 160 249)
Fair value loss on derivative liability 817 457 579 734 004 952
Balance, end of the period 2 780 358 517 2 071 827 568
Non-current liabilities 2 398 428 595 1 985 271 170
Current liabilities 381 929 922 86 556 398
2 780 358 517 2 071 827 568
5. Convertible notes
On 26 April 2010 First Uranium Corporation, MWS`s ultimate holding company,
concluded a private placement offering (the Offering) of Cdn$150 million in
senior secured convertible notes due 31 March 2013 (the Notes). The Notes issued
consisted of R296.1 million in South African Rand denominated Notes (the Rand
Notes) issued by MWS and Cdn$110million in Canadian dollar denominated Notes
(the Canadian Notes) issued by First Uranium Corporation.
Each Rand Note has a principal amount of R1 000 and will be convertible into
107.36 common shares in First Uranium Corporation, also representing a
conversion price of R9.31. The Rand Notes were issued by MWS and if elected by
the holders, upon conversion the holders of these notes will receive common
shares in First Uranium Corporation at point of conversion.
The Notes are guaranteed by the subsidiaries of First Uranium Corporation,
secured by second ranking security over all assets in the First Uranium group
currently encumbered by Franco Nevada and first security over all other current
and future assets of the First Uranium group. The Notes will not be redeemable
until maturity and are subject to typical anti-dilution protections.
In connection with the Offering and in addition to the Notes issued, Simmer and
Jack Mines, Limited (Simmer & Jack) also exchanged its R167.8 million
outstanding facility (see Note 6, Facility with Simmer & Jack) as at 26 April
2010 (including accrued and unpaid interest) for 167,812 Rand Notes on 26 April
2010.
Also in connection with the Offering, First Uranium Corporation settled the
completion penalty obligation to FN pursuant to the MWS Gold Stream Transaction
with the issuance of 14 million common shares in First Uranium Corporation to FN
and a commitment by the Corporation to complete construction of the third gold
plant module at MWS and satisfaction of the technical completion tests prior to
1 September 2011.
The liability component of the Rand Notes is being accreted such that the
liability at maturity will equal the gross amount payable or convertible at
maturity. The rate applied to calculate the liability portion of the Rand Notes
was 15.5%.
The equity component of the Rand Notes (R50 million) was calculated as the
balance between the face value and the liability value of the Rand Notes.
Conversion of Rand Notes
During the six months ended 30 September 2011, 12,207 (31 March 2011: 33,084) of
the Notes were converted into 1,311,169 (31 March 2011: 3,553,227) common shares
of First Uranium. No notes were converted into common shares during the six
months ended 30 September 2010. At 30 September 2011, the total number of Notes
outstanding was 418,605 (31 March 2011: 430,812) of which Simmer & Jack held 392
681.
30 September 31 March
2011 2011
R R
Balance, beginning of the period 387 578 798 -
Gross proceeds received with regards to the
Rand Notes pursuant to the Offering - 296 084 000
Facility with Simmer & Jack settled with Rand
Notes (Note 6, Facility with Simmer & Jack) - 167 812 000
Reallocate equity portion of the Rand Notes - (50 346 776)
Cost of issuing the Rand Notes - (17 525 810)
Convertion of Rand Notes into common shares in
First Uranium (11 159 337) (30 378 075)
Interest and accretion expense for the period
(Note 10) 32 708 903 67 233 515
Interest payments made during the period (23 023 274) (45 300 056)
Balance, end of the period 386 105 090 387 578 798
6. Facility with Simmer & Jack
On 14 August 2009, MWS, through its holding company, First Uranium (Proprietary)
Limited finalised a one-year term credit facility of R160 million with Simmer &
Jack (the Facility). First Uranium (Proprietary) Limited advanced the funds
raised through the Facility with Simmer & Jack immediately to MWS`s wholly-owned
subsidiary, Chemwes (Proprietary) Limited and entered into a back-to-back loan
arrangement with Chemwes effective the same date and on the same terms and
conditions as the Facility with Simmer & Jack. Amounts borrowed under the
facility bore interest at the three-month Johannesburg Interbank Agreed Rate
(JIBAR) for South African Rand denominated loans plus 7% per annum. The
capitalised costs included an arrangement fee of 3% of the Facility amount.
Undrawn amounts were subject to commitment fees of 2.8% per annum. MWS drew down
the total Facility amount at inception of the Facility and thus no commitment
fees were paid. The Facility with Simmer & Jack including the unpaid interest on
the facility was settled in full on 26 April 2010 with the issue of 167,812 Rand
Notes to Simmer & Jack (Note 5).
30 September 31 March
2011 2011
R R
Balance, beginning of the period - 166 052 724
Interest expense accrued until 26 April 2010 - 1 759 276
Facility settled with the issue of Rand Notes
(Note 5, Convertible notes) - (167 812 000)
Balance, end of the period - -
7. Franco-Nevada penalty
The MWS Gold Stream Transactions (Note 4, Derivative financial liability)
originally provided for a $42 million penalty payment if construction on
expansion of a third gold plant was not completed by 1 June 2010.
Pursuant to the terms of the Offering (Note 5, Convertible notes), First Uranium
Corporation agreed to settle the $42 million completion penalty obligation in
respect of the MWS Gold Stream Transaction with the issuance of 14 million
common shares in First Uranium Corporation valued at R135 million to FN and a
commitment by First Uranium Corporation to complete construction of the third
gold plant module at MWS and satisfaction of the Technical Completion Tests (as
noted below) prior to 1 September 2011 (Note 4, Derivative financial liability).
On 31 March 2010, MWS provided for R132 million of the FN penalty and on 26
April 2010 provided for a further R3 million through the Statement of
Comprehensive Income in order to account for the settlement of the FN penalty
with the issuance of 14 million common shares in First Uranium Corporation
valued at R135 million on 26 April 2010.
8. Revenue and cost of sales
Revenue consists of gold sold. Revenue and cost of sales increased as a result
of a 23% increase in gold sold compared to the six months ended 30 September
2010. Revenue was further aided with a 23% increase in the average Rand gold
spot price (R360,600 per kilogram for the six months ended 30 September 2011
compared to R294,024 per kilogram for the comparative period).
9. Derivative expense related to MWS Gold Stream Transaction
30 September 30 September
2011 2010
R R
Cash received from gold delivered into MWS
Gold Stream Transaction 34 142 597 28 336 130
Cost of production related to gold delivered
into MWS Gold Stream Transacti (63 619 958) (40 852 612)
Fair value loss on derivative liability (708 530 949) (330 465 905)
(738 008 310) (342 982 387)
10. Interest and accretion expense
30 September 30 September
2011 2010
R R
Interest and accretion expense (Note 5) (32 708 903) (34 004 295)
Interest on First Uranium Limited - Luxembourg
Branch loan (60 903 133) -
(93 612 036) (34 004 295)
11. Commitments
30 September 31 March
2011 2011
R R
Capital commitments
Property, plant and equipment 18 059 434 28 904 875
The capital commitments are payable within one year.
12. Related parties
Relationship
Ultimate holding company: First Uranium Corporation
Holding company: First Uranium (Proprietary) Limited
Fellow subsidiary: Ezulwini Mining Company (Proprietary)
Limited
Related companies: Simmer and Jack Mines, Limited
Buffelsfontein Gold Mines Limited
Directors: GP Wanblad
ARL Kgomongwe
JS Danana
DT van der Mescht
E Oosthuizen
Related party balances 30 September 31 March
2011 2011
R R
Loan accounts - Owing (to) by related
parties:
First Uranium Corporation (64 536 617) (51 540 971)
First Uranium (Proprietary) Limited 71 089 022 69 262 874
First Uranium Limited (1 651 079 746) (1 578 500 038)
Ezulwini Mining Company (Proprietary) Limited 391 786 393 265 930 595
Convertible notes Liability portion related to
Rand Notes issued to Simmer & Jack (362 205 185) (353 278 074)
Related party transactions
30 September 30 September
2011 2010
R R
Shared services and management fees
paid to:
Simmer & Jack 109 113 646 540
Buffelsfontein Gold Mines Limited - 5 000
First Uranium Corporation 1 364 639 4 006 222
Royalties paid to:
Simmer & Jack with regard to Aberdeen royalty
agreement 5 589 870 3 544 674
Buffelsfontein Gold Mines Limited 5 589 870 3 563 180
Share-based payments related to share
options granted by First Uranium Corporation 684 798 2 835 966
Interest and accretion expense to:
Simmer & Jack pursuant to the Facility with
Simmer & Jack - (1 759 276)
Simmer & Jack related to Rand Notes issued to
Simmer & Jack (30 152 970) (34 004 295)
First Uranium Limited on the loan from First
Uranium Limited - Luxembourg Branch (72,579,709) (70 278 809)
13. Directors` emoluments
30 September 30 September
2011 2010
R R
Fees paid for services as director
ARL Kgomongwe - 20 000
14. Basic and diluted loss per common share
30 September 30 September
2011 2010
R R
Basic and diluted loss and headline loss per
share of (cents per share in Rand) (1 179.82) (563.89)
is calculated based on the loss and headline
loss for the six months of (in Rand) (448 330 202) (214 278 531)
and a weighted average number of common
shares outstanding of 380 000 380 000
15. Net asset value and net tangible asset value per share
30 September 31 March
2011 2011
R R
Net liability value per share (cents) (1 518.27) (294.23)
Net tangible liability value per share(cents) (2 910.59) (756.39)
Net liability value (576 942 143) (111 809 177)
Net tangible liability value (1 106 024 266) (287 426 400)
Net asset (liability) value is calculated as total assets less total liabilities
at the end of the financial period. Net tangible asset (liability) value is
calculated as total assets (excluding deferred tax asset) less total liabilities
(excluding deferred tax liability) at the end of the financial period.
16. Dividends
No dividends have been declared or proposed during the six months ended 30
September 2011 and 2010.
17. Segmental reporting
The company is currently operating the gold and uranium tailings recovery
project in Stilfontein. At present only gold is produced. All revenue reflects
gold sold to Rand Refinery in South Africa. This operation is treated as one
operating segment. The information reviewed by the chief operating decision
maker is the same as the information provided in the primary statements and
therefore no separate reporting segments have been identified.
18. Cash generated from operations
30 September 30 September
2011 2010
R R
Loss before taxation (656 151 311) (273 233 311)
Adjusted for:
Depreciation and amortisation 45 573 026 21 988 700
Investment income (854 481) (2 090 841)
Accretion on environmental rehabilitation
provision 4 623 074 4 594 518
Interest and accretion expense 93 612 036 34 004 295
Non-cash portion related to derivative expense
of MWS Gold Stream Transaction 708 530 949 330 465 905
Franco-Nevada penalty - 3 138 846
Changes in working capital
Decrease (increase) in inventories (7 642 246) 4 116 072
Decrease in trade and other receivables 16 047 097 3 275 668
Increase in trade and other payables 47 361 111 12 492 899
251 099 255 138 752 751
29 December 2011
Date: 29/12/2011 09:24:01 Supplied by www.sharenet.co.za
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