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WEZ - Wesizwe Platinum Limited - Trading Statement

Release Date: 30/03/2012 16:15
Code(s): WEZ
Wrap Text

WEZ - Wesizwe Platinum Limited - Trading Statement WESIZWE PLATINUM LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2003/020161/06) JSE code: WEZ ISIN: ZAE000075859 (the "Company" or "Wesizwe") TRADING STATEMENT In accordance with paragraph 3.4(b) of the JSE Listings Requirements, companies are obligated to inform shareholders as soon as there is a reasonable degree of certainty that the earnings of the company are likely to vary by more than 20% compared to the previous corresponding period. The Wesizwe Board of Directors therefore wish to advise shareholders that the Company expects to report a basic loss per share attributable to ordinary shareholders for the year ended 31 December 2011 of between 22 cents and 30 cents per share, compared to a basic earnings per share of 40.87 cents per share for the previous comparable period. A headline loss per share attributable to ordinary shareholders for the year ended 31 December 2011 is expected to be between 24 cents and 26 cents per share, compared to a headline loss per share of 9.78 cents for the previous comparable period. In the year ending December 2010, a gain on the purchase of reserves from the discontinued Western Bushveld Joint Venture (following the conclusion of Project Delta) amounting to R378 million was recognised whilst a share-based payment expense of R407 million is recognised in the Statement Of Comprehensive Income for the financial year ending 31 December 2011. The impact of these two once-off transactions resulted in the profit in 2010 and the exceptionally high loss in 2011. The share-based payment expense arose in 2011 as a result of the subscription of 829 884 460 new shares by Jinchuan, CADFund and Micawber in Wesizwe on 4 May 2011 at an effective subscription price of R1.81 per share, compared to a market price of R2.30 per share on the date of closure. The shares were issued for a cash consideration of US$227 million. The company has started development of its Bakubung Platinum Mine in the Western Bushveld Complex and has a 26% shareholding in neighbouring Projects 1 and 3 of Maseve Investments 11 (Pty) Ltd which is also in the process of developing a platinum group metals (PGM) mine. Consequently the company does not expect to be profitable until these two mining projects achieve saleable production. The financial information included in this trading statement has not been reviewed and reported on by the Company`s external auditors. Johannesburg 30 March 2012 Sponsor: PSG Capital Proprietary Limited Date: 30/03/2012 16:15:30 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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