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PLL - Platfields - Provisional Audited Condensed Consolidated Results for the

Release Date: 01/06/2012 08:38
Code(s): PLL
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PLL - Platfields - Provisional Audited Condensed Consolidated Results for the year ended 29 February 2012 Platfields Limited ("Platfields" or "the Company" or "the Group") Incorporated in the Republic of South Africa, (Registration number 2002/005851/06) Share code: PLL ISIN: ZAE000151825 Provisional Audited Condensed Consolidated Results for the year ended 29 February 2012 COMMENTARY Platfields operational review - The Board of Platfields announces decreased losses compared to the previous year, as explained below in Financial Commentary; - New Order Prospecting Rights were granted as explained below in Resources; - The appointment of 3 independent non-executive directors addressing both the King III and Companies Act requirements leading to improved corporate governance and providing wider experience to the Board of Platfields. Platfields exploration activity has largely been on care and maintenance during the current year with the focus being on the Liger Projects` preparation for a Mining Right Application and settlement of overlapping rights. Key to operations during the current financial year was a cash preservation plan which aimed at a careful deployment of available cash reserves to essential line items and implementation of Platfields` pipeline strategy. Platfields has pursued and is embarking on a systematic growth strategy through seeking strategic acquisitions in operational and cash positive businesses, and in this regard has investigated and is continuing to investigate, various potential business arrangements both within Platfields and externally in both the precious metals and other sectors. Platfields had a challenging year in a depressed market that continues to be subdued by various factors explained below in Share Price Performance. Financial commentary Platfields is still in the exploration phase of its development and does therefore not yet generate any cash from its activities. The Group made a net loss for the current financial year of R11,3 million compared to a loss of R73 million for the previous financial year. There have been no further impairments on any of the Platfields Projects and with the BEE share scheme being finalised and implemented, resulting in a large decrease in the reported loss for the current financial year. Exploration expenditure of R521,977 on the Projects relates primarily to Projects` care and maintenance. No dividends are paid or proposed for the year. Share price performance Since listing, the share price has declined to levels well below the Company`s intrinsic value. The current share price levels are not representative of the value of Platfields and the Board is hopeful that as the markets improve so will the market valuation of the Company. The decline in the share price is in line with sector sentiment and the performance of most platinum stocks in the wake of the fundamental economic conditions including the financial turmoil in the European Union, the delayed US recovery and its effect on the car manufacturing sector, the slowdown in China, the volatility of metal prices alongside the USD/ZAR exchange rates and, the 2011 Japanese earthquake and its effects on auto catalytic converter demand. This volatility is expected to continue which will continue to make trading conditions difficult and may complicate Platfields objective of raising financing in the short-to medium-term. Platfields currently offers a highly discounted entry into the platinum sector with one of its prospects being a shallow prospect targeting some 5m/oz 4PGE and other PGM prospects in South Africa. Resources The focus was on conceptual mine studies and raising capital to further the understanding of the extent of the ore body over Leeuwkop. Platfields was granted an additional prospecting right over portions 4, 5 and 39 of the 27 farm Kliprivier 73 JT, which will enhance the Berg Project. The new rights are over shallower parts of the Berg and abuts the Everest South operation. Mineral assets The Platfields Mineral Resource Statement prepared by the Independent Competent Person, Minxcon (Pty) Ltd, has been updated during the current year for the effects of certain prospecting rights which have not been renewed. Funding and going concern The financial statements have been prepared on the basis of accounting policies, applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. As is common with many junior mining companies, the Group raises capital for exploration and other projects. There can be no assurance that the Group`s projects will be fully developed in accordance with current plans or completed on time or within budget. As the Group is not yet in a cash-generating position, its exploration programme is still funded by equity. The Group is currently raising capital in order to complete its exploration programme on the Leeuwkop Project. The directors draw your attention to the fact that the Company`s future prospects and stability relies on its ability to raise capital for the ensuing financial year. Future work on the development of the Group`s projects may be adversely affected by factors outside the control of the Group. Share capital The company currently has 789,597,005 shares in issue. No shares were issued during the current financial year. Directors The directors in office during the financial year under review were: Dr James Thokoana Motlatsi Chairman (non-executive) Derrick Bongani Mbindwane Chief Executive Officer Annelise Cilliers, CA(SA) Financial Director Seth Malefetsane Radebe, CA(SA) Independent non-executive director (appointed 5 May 2011) Roy Stavely Traviss Non-executive director (resigned 8 February 2012)
Neville Hawthorn Cornish Non-executive director (retired 4 March 2011) Ulrich Schackerman Non-executive director (resigned 29 March 2011)
The following directors were appointed subsequent to the year-end: Debbie Ntombela Independent non-executive director (appointed 12 April 2012) Dr Zuko Kubukeli Independent non-executive director (appointed 12 April 2012) Adv Heinrich Jansen van Rensburg Independent non-executive director (appointed 12 April 2012) Merchantec (Proprietary) Ltd was appointed as the Company Secretary on 31 July 2011 and Probity Business Services (Proprietary) Ltd resigned on the same date. Subsequent events Platfields entered into a settlement with Rustenberg Platinum Mines Limited, a 100% owned subsidiary of Anglo American Platinum Limited ("Amplats") over an overlapping prospecting right issued to Platfields over the farm Tigerpoort 426 KS, whereas the dispute was settled by Platfields agreeing to subdividing the prospective area with Amplats holding their prospect area and Platfields retaining its area of the same farm. Prospects Platfields remains confident that it will raise sufficient cash to progress the next phase of its exploration programme. Platfields` primary focus in the immediate future is on raising capital and conducting additional exploration in relation to the Leeuwkop Project. It intends to continue conducting mining studies over Leeuwkop, a shallow stand alone portion of the Liger Project, with the goal of proceeding to a mining right application in the short-to medium-term. Signed on behalf of the board: JT Motlatsi DB Mbindwane Chairman Chief Executive Officer 1 June 2012 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 29 February 28 February 2012 2011 Figures in Rand Audited Audited ASSETS Non-current assets Exploration assets 56,690,146 56,690,146 Current assets Other receivables 431,007 132,786 Cash and cash equivalents 7,026,254 19,574,675 7,457,261 19,707,461 TOTAL ASSETS 64,147,407 76,397,607 EQUITY AND LIABILITIES Shareholders equity 28,539,439 39,879,565 Non-current liability Long-term liability 34,862,386 31,983,840 Current liabilities Current portion of long-term liability - 2,000,000 Trade and other payables 745,582 2,534,202 745,582 4,534,202
TOTAL EQUITY AND LIABILITIES 64,147,407 76,397,607 Net asset value per share 4 5 Net tangible asset value per share (4) (2) CONDENSED CONSOLIDATED CASH FLOW STATEMENT Year ended Year ended 29 February 28 February 2012 2011 Audited Audited
Figures in Rand Operating activities (10,548,421) (18,078,524) Investing activities - (40,000,000) Financing activities (2,000,000) 39,742,850 Total movement (12,548,421) (18,335,674) Cash and cash equivalents at the beginning of the year 19,574,675 37,910,349 Total cash and cash equivalents at the end of the year 7,026,254 19,574,675 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended Year ended 29 February 28 February
2012 2011 Audited Audited Figures in Rand Exploration expenditure (521,977) (1,721,946) General and administration expenses (8,765,119) (14,776,501) Operating loss (9,287,096) (16,498,447) Interest and investment income received 825,516 2,189,034 Loss from operations (8,461,580) (14,309,413) Impairment - (47,395,633) BEE share transaction (fair value) - (17,020,266) Notional interest (2,878,546) 6,016,160 Share-based payments (fair value) - (321,930) Loss for the year/Total comprehensive loss for the year (11,340,126) (73,031,082) Loss per share (cents) 1.44 10.97 Less: Impairment of exploration assets (cents) - 7.12 Headline loss per share (cents) 1.44 3.85 Diluted loss per share (cents) 1.44 10.96 Diluted headline loss per share (cents) 1.44 3.85 Reconciliation of headline loss and loss The calculation of the headline loss per share is based on a loss of: - attributable loss after tax (11,340,126) (73,031,082) - impairment of exploration assets - 47,395,633 Headline loss (11,340,126) (25,635,449) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Year ended Year ended 29 February 28 February
2012 2011 Audited Audited Figures in Rand Balance at the beginning of the year 39,879,565 95,985,291 Issue of shares for cash - 2,850 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 (11,340,126) (73,031,082) SHAREHOLDERS` EQUITY 28,539,439 39,879,565 NOTES 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, and the Companies Act of South Africa, the JSE Listings Requirements and the AC500 Series of Interpretations. The Consolidated Annual Financial Statements have been prepared on the historical cost basis, unless otherwise stated. The accounting policies applied in preparing this report, which are based on reasonable judgements and estimates, are in accordance with International Financial Reporting Standards ("IFRS") and are consistent with those applied in the previous year. These audited results have been prepared by Annelise Cilliers, CA(SA) and have been audited by PKF (Jhb) Inc. and their report is available for inspection at the registered office of Platfields. Auditor`s report The Group`s condensed Consolidated Annual Financial Statements for the year ended 29 February 2012 have been audited by the Group`s auditors, PKF (Jhb) Inc. The unqualified auditors` report on the Group`s Condensed Consolidated Annual Financial Statements will be available for inspection at the Group`s registered office. 2. Projects The Leeuwkop Project The Leeukop Project consists of a single new order prospecting right over the farm Leeuwkop 425 KS which is situated in the Sekhukhune Magisterial District in the Limpopo Province, South Africa. The prospecting right is for Platinum Group Metals ("PGM") at the north-western end of the Eastern Limb of the Bushveld Complex. The current value of the Leeuwkop Project is estimated at R60 million (2011: R112 million). The reduction in the estimated value is due to the lower basket price for PGM. The Berg Project Prospecting rights for PGM in the Eastern Limb of the Bushveld Complex in Mpumalanga, South Africa. The Berg Project comprises portions of the Kliprivier and Draaikraal farms. The DMR has granted a new prospecting right over a further portion of Kliprivier to Platfields in February 2012. Platfields has resolved to seek joint venture or similar business arrangements for the Berg Project. The current value of the Berg Project as a whole is estimated at R38 million (2011: R116 million). The reduction in the estimated value is due to the lower basket price for PGM and certain prospecting rights which have not been renewed. The Marula Project (formerly the Grootfonteinberg Project) The Marula Project is a gold target in the Transvaal Drakensberg Goldfield. The Project consists of a new order prospecting right for gold over four farms in the Magisterial District of Pilgrim`s Rest in Mpumalanga Province, South Africa. The four properties are Lisbon 531 JT, Ceylon 197 JT, Little Joker 157 JT and Grootfonteinberg 561 KT. There is an overlapping right over the Grootfonteinberg561 KT portion of the prospecting area. Platfields remains confident that the dispute will be resolved with the DMR and the third party concerned. The current value of the Marula Project is estimated at R1,5 million (2011: R1,5 million). Impairment There have been no impairments during the year under review. During 2011 the Platmile portions of the Berg Project were impaired by R47,4 million. The impairment arose from exploration results as well as applying amining cut to thein situ grades previously reported. 3. Loss per share The loss per share is based on 789,597,005 (2011: 665,608,856) weighted average number of shares in issue and a loss for the year of R11,3 million (2011: R73,0 million). The headline loss per share is based on 789,597,005 (2011: 665,608,856) weighted average number of shares in issue and a loss for the year of R11,3 million (2011: R25,6 million). The diluted loss per share is based on 789,597,005 (2011: 662,291,294) weighted average number of shares in issue and a loss for the year of R11,3 million (2011: R73,0 million). The diluted headline loss per share is based on 789,597,005 (2011: 666,291,294 ) weighted average number of shares in issue and a loss for the year of R11,3 million (2011: R25,6 million). Registered Office: 7th Floor, SA Reserve Bank Building, 60 St Georges Mall, Cape Town, 8001 (PO Box 51949, Waterfront, 8002). Transfer Secretaries: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107) Sponsor: Merchantec Capital was appointed as sponsor on 7 July 2011. www.platfields.co.za Date: 01/06/2012 08:38:00 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. 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