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Condensed Consolidated interim financial statements three and nine months ended 30 SEPTEMBER 2012
Atlatsa Resources Corporation
(previously Anooraq Resources Corporation)
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ATL
NYSE AMEX share code: ATL
ISIN: CA0494771029
(”Atlatsa” or the “Company”)
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2012
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Financial Position
As at 30 September 2012
(Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
Audited
Note 30 September 2012 31 December 2011
Assets
Non-current assets
Property, plant and equipment 5 751,478,650 798,924,420
Capital work-in-progress 6 27,801,652 20,826,290
Intangible assets 7 1,054,960 1,895,205
Mineral property interests 8,104,966 8,268,783
Goodwill 10,356,648 10,994,115
Platinum producers’ environmental trust 3,157,818 2,927,591
Other non-current assets 251,108 367,825
Total non-current assets 802,205,802 844,204,229
Current assets
Assets classified as held for sale 3,874,024 4,101,654
Inventories 1,908,428 787,084
Trade and other receivables 33,742,681 27,048,591
Current tax receivable 128,217 136,109
Cash and cash equivalents 14,601,259 15,945,008
Restricted cash 536,510 786,291
Total current assets 54,791,119 48,804,737
Total assets 856,996,921 893,008,966
Equity and Liabilities
Equity
Share capital 71,967,083 71,967,083
Treasury shares (4,991,726) (4,991,726)
Convertible preference shares 162,910,000 162,910,000
Foreign currency translation reserve (11,876,393) (11,238,333)
Share-based payment reserve 24,548,599 24,042,711
Accumulated loss (220,506,130) (245,448,316)
Total equity attributable to equity holders of the Group 22,051,433 (2,758,581)
Non-controlling interest 247,387,578 (25,326,683)
Total equity 269,439,011 (28,085,264)
Liabilities
Non-current liabilities
Loans and borrowings 8 402,603,015 744,456,487
Deferred taxation 149,805,528 144,032,213
Provisions 8,387,702 8,383,708
Total non-current liabilities 60,796,245 896,872,408
Current liabilities
Trade and other payables 5,928,921 23,125,587
Short-term portion of loans and borrowings 832,744 1,096,235
Total current liabilities 26,761,665 24,221,822
Total liabilities 587,557,910 921,094,230
Total equity and liabilities 856,996,921 893,008,966
Approved by the Board of Directors on 14 November 2012
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Comprehensive Loss
For the periods ended 30 September 2012
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 September
2012 2011
Revenue 43,936,126 45,278,023
Cost of sales (54,107,943) (54,978,429)
Gross loss (10,171,817) (9,700,406)
Administrative expenses (3,597,531) (4,960,444)
Other income 28,509 31,764
Fair value gain on recognition of
107,553,023 -
consolidated facility
Operating profit/(loss) 93,812,184 (14,629,086)
Finance income 7,068 165,373
Finance expense (23,899,918) (22,047,827)
Net finance expense (23,892,850) (21,882,454)
Profit/(loss) before income tax
69,919,334 (36,511,540)
Income tax (20,124,229) 6,388,055
Profit/(loss) for the period 49,795,105 (30,123,515)
Other comprehensive income/(loss)
Foreign currency translation differences for
foreign operations (2,668,455) (1,243,599)
Effective portion of changes in fair value of
cash flow hedges - -
Reclassification to profit or loss on
settlement of cash flow hedge - -
Other comprehensive loss for the period,
net of income tax (2,668,455) (1,243,599)
Total comprehensive income/(loss) for
the period 47,126,650 (31,367,114)
Profit/(loss) attributable to:
Owners of the Company 67,548,621 (15,984,182)
Non-controlling interest (17,753,516) (14,139,333)
Profit/(loss) for the period 49,795,105 (30,123,515)
Total comprehensive income/(loss)
attributable to:
Owners of the Company 70,067,870 (17,571,170)
Non-controlling interest (22,941,220) (13,795,944)
Total comprehensive income/(loss) for
the period 47,126,650 (31,367,114)
Note Nine months ended 30 September
2012 2011
Revenue 116,747,710 111,892,648
Cost of sales (159,929,308) (158,742,449)
Gross loss (43,181,598) (46,849,801)
Administrative expenses (11,779,245) (19,559,923)
Other income 87,890 86,002
Fair value gain on recognition of
107,553,023 -
consolidated facility
Operating profit/(loss) 52,680,070 (66,323,722)
Finance income 267,069 593,193
Finance expense (69,948,366) (70,378,830)
Net finance expense (69,681,297) (67,785,637)
Profit/(loss) before income tax
(17,001,227) (136,109,359)
Income tax (14,882,302) 23,763,255
Profit/(loss) for the period (31,883,529) (112,346,104)
Other comprehensive income/(loss)
Foreign currency translation differences for
foreign operations (903,661) (8,521,052)
Effective portion of changes in fair value of
cash flow hedges - 1,602,501
Reclassification to profit or loss on
settlement of cash flow hedge - 2,521,654
Other comprehensive loss for the period,
net of income tax (903,661) (4,126,897)
Total comprehensive income/(loss) for
the period (32,787,190) (116,473,001)
Profit/(loss) attributable to:
Owners of the Company 24,942,186 (62,873,240)
Non-controlling interest (56,825,715) (49,472,864)
Profit/(loss) for the period (31,883,529) (112,346,104)
Total comprehensive income/(loss)
attributable to:
Owners of the Company 28,286,796 (64,738,226)
Non-controlling interest (61,073,986) (51,734,775)
Total comprehensive income/(loss) for
the period (32,787,190) (116,473,001)
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Changes in Equity
For the period ended 30 September 2012
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the Company
Share Capital Treasury Shares Convertible preference
shares
For the period ended 30 September 2011
Balance at 1 January 2011 71,852,588 (4,991,726) 162,910,000
Total comprehensive income/(loss) for the
period
Loss for the period - - -
Other comprehensive income/(loss)
Foreign currency translation differences - - -
Effective portion of changes in fair value of cash - - -
flow hedges, net of tax
Reclassification to profit or loss on settlement of - - -
cash flow hedge
Total other comprehensive income/(loss) - - -
Total comprehensive income/(loss) for the - - -
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Common shares issued 114,495 - -
Share-based payment transactions - - -
Total contributions by and distributions to 114,495 - -
owners
Balance at 30 September 2011 71,967,083 (4,991,726) 162,910,000
For the period ended 30 September 2012
Balance at 1 January 2012 71,967,083 (4,991,726) 162,910,000
Acquisition of shares Bokoni Holdco - - -
Total comprehensive income/(loss) for the
period
Income/(loss) for the period - - -
Other comprehensive income/(loss)
Foreign currency translation differences - - -
Total comprehensive income/(loss) for the - - -
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Share-based payment transactions - - -
Fair value gain on de-recognition of debt - - -
facility
Total contributions by and distributions to - - -
owners
Balance at 30 September 2012 71,967,083 (4,991,726) 162,910,000
Attributable to equity holders of the Company
Foreign currency Share-based payment Hedging reserve
translation reserve reserve
For the period ended 30 September 2011
Balance at 1 January 2011 (5,197,843) 22,032,571 (4,124,155)
Total comprehensive income/(loss) for the
period
Loss for the period - - -
Other comprehensive income/(loss)
Foreign currency translation differences (5,920,069) (69,072) -
Effective portion of changes in fair value of cash - - 1,602,501
flow hedges, net of tax
Reclassification to profit or loss on settlement of - - 2,521,654
cash flow hedge
Total other comprehensive income/(loss) (5,920,069) (69,072) 4,124,155
Total comprehensive income/(loss) for the (5,920,069) (69,072) 4,124,155
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Common shares issued - (51,495) -
Share-based payment transactions - 2,102,499 -
Total contributions by and distributions to - 2,051,004 -
owners
Balance at 30 September 2011 (11,117,912) 24,014,503 -
For the period ended 30 September 2012
Balance at 1 January 2012 (11,238,333) 24,042,711 -
Acquisition of shares Bokoni Holdco - - -
Total comprehensive income/(loss) for the
period
Income/(loss) for the period - - -
Other comprehensive income/(loss)
Foreign currency translation differences (638,060) (265,601) -
Total comprehensive income/(loss) for the (638,060) (265,601) -
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Share-based payment transactions - 771,489 -
Fair value gain on de-recognition of debt - - -
facility
Total contributions by and distributions to - 771,489 -
owners
Balance at 30 September 2012 (11,876,393) 24,548,599 -
Attributable to equity holders of the Company
Accumulated loss Total Non-controlling Total
interest
For the period ended 30 September 2011
Balance at 1 January 2011 (163,519,502) 78,961,933 42,404,014 121,365,947
Total comprehensive income/(loss) for the
period
Loss for the period (62,873,240) (62,873,240) (49,472,864) (112,346,104)
Other comprehensive income/(loss)
Foreign currency translation differences - (5,989,141) (2,261,911) (8,251,052)
Effective portion of changes in fair value of cash - 1,602,501 - 1,602,501
flow hedges, net of tax
Reclassification to profit or loss on settlement of - 2,521,654 - 2,521,654
cash flow hedge
Total other comprehensive income/(loss) - (1,864,986) (2,261,911) (4,126,897)
Total comprehensive income/(loss) for the (62,873,240) (64,738,226) (51,734,775) (116,473,001)
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Common shares issued - 63,000 - 63,000
Share-based payment transactions - 2,102,499 - 2,102,499
Total contributions by and distributions to - 2,165,499 - 2,165,499
owners
Balance at 30 September 2011 (226,395,742) 16,389,206 (9,330,761) 7,058,445
For the period ended 30 September 2012
Balance at 1 January 2012 (245,448,316) (2,758,581) (25,326,683) (28,085,264)
Acquisition of shares Bokoni Holdco - - 197,477,602 197,477,602
Total comprehensive income/(loss) for the
period
Income/(loss) for the period 24,942,186 24,942,186 (56,825,715) (31,883,529)
Other comprehensive income/(loss)
Foreign currency translation differences - (903,661) 4,248,271 3,344,610
Total comprehensive income/(loss) for the 24,942,186 24,038,525 (52,577,444) (28,538,919)
period
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Share-based payment transactions - 771,489 - 771,489
Fair value gain on de-recognition of debt - - 127,814,103 127,814,103
facility
Total contributions by and distributions to - 771,489 127,814,103 128,585,592
owners
Balance at 30 September 2012 (220,506,130) 22,051,433 247,387,578 269,439,011
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 September 2012
(Unaudited - Expressed in Canadian Dollars)
Note Three months ende 30 September
2012 2011
Cash flows from operating activities
Cash utilised by operations 9 (10,825,322) (16,657,875)
Interest received 60,034 118,339
Interest paid (20) -
Taxation paid - -
Cash utilised by operating activities (10,765,308) (16,539,536)
Cash flows from investing activities
Acquisition of property, plant and equipment 5 - (2,249)
Acquisition of capital-work-in-progress 6 (14,246,178) (5,863,788)
Acquisition of intangible assets 7 - -
Investment in environmental trusts (114,001) (96,005)
Cash utilised by investing activities (14,360,179) (5,962,087)
Cash flows from financing activities
Settlement of interest rate swap 8 - -
Funding loan raised – RPM 8 315,612,211 -
Long term borrowings raised – OCSF 25,663,980 20,465,542
Proceeds on issue of Bokoni Holdings shares 197,477,614 -
Redemption of A Preference shares (401,782,311) -
Repayment of long term borrowings – OCSF (110,074,287) -
Repayment of funding loan – RPM (1,233,228) -
Repayment of other loans (203,940) -
Other loans raised - 69,200
Common shares issued - -
Cash generated from financing activities 25,460,039 20,534,742
Effect of foreign currency translation (629,026) (1,426,159)
Net decrease in cash and cash equivalents (294,474) (3,393,040)
Cash and cash equivalents, beginning of period 14,895,733 19,240,026
Cash and cash equivalents, end of period 14,601,259 15,846,986
Note Nine months ended 30 September
2012 2011
Cash flows from operating activities
Cash utilised by operations 9 (29,878,815) (38,275,012)
Interest received 210,969 449,781
Interest paid (105) (523,153)
Taxation paid (34,604) -
Cash utilised by operating activities (29,702,555) (38,348,384)
Cash flows from investing activities
Acquisition of property, plant and equipment 5 (2,620) (2,249)
Acquisition of capital-work-in-progress 6 (33,881,767) (20,352,762)
Acquisition of intangible assets 7 - (242,177)
Investment in environmental trusts (353,924) (396,032)
Cash utilised by investing activities (34,238,311) (20,993,265)
Cash flows from financing activities
Settlement of interest rate swap 8 - (3,691,604)
Funding loan raised – RPM 8 315,612,211 3,691,604
Long term borrowings raised – OCSF 64,300,573 52,447,321
Proceeds on issue of Bokoni Holdings shares 197,477,614 -
Redemption of A Preference shares (401,782,311) -
Repayment of long term borrowings – OCSF (110,074,287) -
Repayment of funding loan – RPM (1,233,228) -
Repayment of other loans (859,611) (492,311)
Other loans raised - 69,200
Common shares issued - 63,000
Cash generated from financing activities 63,440,961 52,087,210
Effect of foreign currency translation (843,844) (2,663,165)
Net decrease in cash and cash equivalents (1,343,749) (9,917,604)
Cash and cash equivalents, beginning of period 15,945,008 25,764,590
Cash and cash equivalents, end of period 14,601,259 15,846,986
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 September 2012
(Unaudited - Expressed in Canadian Dollars)
1. REPORTING ENTITY
Atlatsa Resources Corporation (the "Company" or "Atlatsa") is incorporated in the Province of British Columbia, Canada. The
condensed consolidated interim financial statements of the Company as at and for the three and six months ended 30 June
2012 comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”) and
the Group’s interests in associates and jointly controlled entities.
2. GOING CONCERN
The condensed consolidated interim financial statements are prepared on the basis that the Group will continue as a going
concern which contemplates the realisation of assets and settlement of liabilities in the normal course of operations as they
become due.
As a result of the acquisition of the operating mine in 2009, the Group secured various funding arrangements including
securing a long-term credit facility, the Operating Cash Flow Shortfall Facility (“OCSF”), with Rustenburg Platinum Mines
Limited (“RPM”) for an amount of $183.2 million (ZAR 1,470 million). The facility is used to fund operating cash and capital
requirements for an initial period of three years. As at 30 June 2012, the Group utilised $177.1 million (ZAR 1,421 million),
excluding interest, thereof to fund operating requirements from 1 July 2009 as the mining operations are not currently
generating sufficient cash flows to fund operations and operational projects. In addition, RPM has extended the terms of the
OCSF facility to fund cash shortfalls up to 31 August 2013. The Group has no obligation to repay interest and capital on its
outstanding loans and borrowings during the next 12 months. With effect from September 28, 2012 RPM and the Group
agreed to consolidate all of the above mentioned RPM debt facilities into one single debt facility (“consolidated debt facility”)
as part of the Group’s Restructure Plan.
As a result of securing the consolidated debt facility, the directors expect that cash flows from mining operations, together with
funds available from the consolidated debt facility will be sufficient to meet immediate ongoing operating and capital cash
requirements of the Group, and accordingly the financial statements have been prepared on a going concern basis.
The Company is in the process of completing the Restructure Plan which will, among others, significantly reduce Group debt
and thereby improve its financial position.
3. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial
Reporting and the AC 500 Standards as issued by the Accounting Practices Board or its successor. They do not include all of
the information required for full annual financial statements, and should be read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 31 December 2011. The consolidated financial statements of the Group
as at and for the year ended 31 December 2011 are available upon request from the Company’s registered office at 82
Grayston Drive, Sandton, South Africa or at www.sedar.com.
4. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as
those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2011, except
for the following standards and interpretations adopted in the current financial year:
- Amendments to IAS12, Deferred Tax: Recovery of underlying assets
There was no significant impact on these condensed consolidated interim financial statements as a result of adopting these
standards and interpretations.
Standards and interpretations issued but not yet effective and applicable to the Group:
- Amendments to IAS 1, Presentation of Financial Statements: Presentation of Items of Other Comprehensive Income (1
July 2012)
- Amendments to IAS 19, Employee benefits: Defined benefit plans (effective 1 January 2013)
- IAS 27, Separate Financial Statements (effective 1 January 2013)
- IAS 28, Investment in Associates and Joint ventures (effective 1 January 2013)
- IAS 32, Offsetting Financial Assets and Financial Liabilities (1 January 2014)
- Amendments to IFRS 7, Disclosures – Offsetting Financial Assets and Financial Liabilities (1 January 2013)
- IFRS 9, Financial Instruments (effective 1 January 2015)
- IFRS 9, Additions to IFRS 9 Financial instruments (effective 1 January 2015)
- IFRS 10, Consolidated Financial Statements (effective 1 January 2013)
- IFRS 11, Joint Arrangements (effective 1 January 2013)
- IFRS 12, Disclosure of Interests in Other Entities (effective 1 January 2013)
- IFRS 13, Fair Value Measurement (effective 1 January 2013)
- IFRIC 20, Stripping costs in the Production Phase of a Surface Mine (effective 1 January 2013)
Nine months Year ended 31
ended 30 December
September
2012 2011
5. PROPERTY, PLANT AND EQUIPMENT
Summary
Cost
Balance at beginning of period 876,764,628 1,032,647,854
Additions 1,873,596 2,238
Transferred from capital work-in-progress 25,841,779 17,168,350
Disposals (955) (1,087,212)
Adjustment to rehabilitation assets - 1,050,670
Effect of translation (52,192,745) (173,017,272)
Balance at end of period 852,286,303 876,764,628
Accumulated depreciation and impairment losses
Balance beginning of period 77,840,208 47,741,321
Depreciation for the period 28,894,608 42,075,759
Disposals (361) (748,144)
Effect of translation (5,926,802) (11,228,728)
Balance at end of period 100,807,653 77,840,208
Carrying value 751,478,650 798,924,420
6. CAPITAL WORK-IN-PROGRESS
Capital work-in-progress consists of mine development and infrastructure costs relating to the Bokoni mine and will be transferred to property,
plant and equipment when the relevant projects are commissioned.
Balance at beginning of period 20,826,290 10,311,973
Additions 33,881,767 28,678,042
Transfer to property, plant and equipment (27,712,756) (17,168,350)
Capitalisation of borrowing costs 2,434,787 1,777,431
Effect of translation (1,628,436) (2,772,806)
Balance at end of period 27,801,652 20,826,290
Capital work-in-progress is funded through cash generated from operations and available loan facilities.
7. INTANGIBLE ASSETS
Cost
Balance at beginning of period 3,113,175 3,473,000
Additions - 236,304
Effect of translation (180,509) (596,129)
Balance at end of period 2,932,666 3,113,175
Accumulated amortisation and impairment losses
Balance beginning of period 1,217,970 192,944
Amortisation for the period 767,921 1,148,618
Effect of translation (108,185) (123,592)
Balance at end of period 1,877,706 1,217,970
Carrying value 1,054,960 1,895,205
Nine months Year ended 31
ended 30 December
September 2011
2012
8. LOANS AND BORROWINGS
Redeemable “A” preference shares (related party) - 392,191,315
Rustenburg Platinum Mines – Funding loans (related party) - 172,650,283
Rustenburg Platinum Mines – Consolidated facility (related party) 398,015,456 -
Rustenburg Platinum Mines – OCSF (related party) - 172,991,980
Rustenburg Platinum Mines – Interest free loan (related party) 3,428,849 3,639,900
Rustenburg Platinum Mines – commitment fees (related party) - 1,298,865
Other 1,991,454 2,780,379
403,435,759 745,552,722
Short-term portion
Other (832,744) (1,096,235)
(832,744) (1,096,235)
Non-current liabilities 402,603,015 744,456,487
The carrying value of the Group’s loans and borrowings changed during the period as follows:
Balance at beginning of the period 745,552,722 716,936,362
Rustenburg Platinum Mine – OCSF 64,300,573 64,851,418
Loans repaid – Rustenburg Platinum Mines (111,307,514) -
Loans repaid - other (859,611) (716,317)
Commitment fee capitalised (84,282) (394,063)
Finance expenses accrued 71,867,740 88,648,310
Funding loan raised – Rustenburg Platinum Mine (related party) 315,612,211 3,691,604
Redemption of A Preference shares (401,782,311)
Capitalisation transaction costs written-off - 3,834,378
Commitment fee liability 84,282 394,063
Interest rate swap adjustment - 355,852
De-recognition of OCSF and Senior funding loan (682,365,807) -
Recognition of consolidated facility 682,365,807 -
Fair value gain on recognition of consolidated facility (230,105,911) -
Other - 86,937
Effect of translation (49,842,140) (132,135,822)
Balance at end of the period 403,435,759 745,552,722
Short-term portion
Other (832,744) (1,096,235)
(832,744) (1,096,235)
Non-current portion 402,603,015 744,456,487
Senior Term Loan Facility and Rustenburg Platinum Mines – OCSF
On 28 September 2012, Atlatsa entered into an Amendment and Interim Implementation Agreement pursuant to which Atlatsa implemented the first
phase of the broader restructuring, recapitalization and refinancing transaction, which was first announced by Atlatsa in a news release dated
February 2, 2012.
The first phase of the Restructure Plan involved an amendment to the terms of the Senior Term Loan Facilities Agreement (now a consolidated
facility) dated June 12, 2009 between Plateau, as borrower and RPM, as lender to increase the total loan facility available by approximately $313
million (ZAR2.65 billion). The additional loan proceeds were used to repay the existing OCSF and fund share subscriptions by Plateau into Bokoni
Holdco and by Bokoni Holdco into Bokoni Mine (the “Share Subscriptions”) for the purpose of repayment of certain existing loan facilities by
Plateau, Bokoni Holdco and Bokoni Mine.
The interest rate payable on the debt owing will be reduced to an annual effective rate of 6.23% (linked to the 3-month JIBAR) from the current
effective rate of 12.31%.
9. CASH UTILISED BY OPERATIONS
Three months ended 30 September
2012 2011
Loss before income tax 69,919,334 (36,511,540)
Adjustments for:
Finance expense 23,899,918 22,047,827
Finance income (7,068) (165,373)
Non-cash items:
Depreciation and amortisation 10,150,446 10,782,132
Equity settled share-based compensation 79,064 461,503
Loss on disposal of property, plant and equipment 594 -
Fair value gain on recognition of new facility (107,553,023) -
Profit and loss impact of cash flow hedge - -
Cash utilised before ESOP transactions (3,510,735) (3,385,451)
ESOP cash transactions (restricted cash) - -
Cash utilised before working capital changes (3,510,735) (16,379,859)
Working capital changes
Increase in trade and other receivables (6,857,336) (11,255,000)
Increase/(decrease) in trade and other payables 786,889 (1,605,551)
Increase in inventories (1,244,141) (411,873)
Cash utilised by operations (10,825,322) (16,657,875)
Nine months ended 30 September
2012 2011
Loss before income tax (17,001,227) (136,109,359)
Adjustments for:
Finance expense 69,948,366 70,378,830
Finance income (267,069) (593,193)
Non-cash items:
Depreciation and amortisation 29,662,529 33,149,385
Equity settled share-based compensation 572,565 2,102,499
Loss on disposal of property, plant and equipment 594 17,752
Fair value gain on recognition of new facility (107,553,023) -
Profit and loss impact of cash flow hedge - 2,614,359
Cash utilised before ESOP transactions (24,637,265) (28,439,727)
ESOP cash transactions (restricted cash) 258,156 -
Cash utilised before working capital changes (24,379,109) (25,027,993)
Working capital changes
Increase in trade and other receivables (8,681,157) (4,940,473)
Increase/(decrease) in trade and other payables 4,408,454 (4,166,937)
Increase in inventories (1,227,003) (727,875)
Cash utilised by operations (29,878,815) (38,275,012)
10. SEGMENT INFORMATION
The Group has two reportable segments as described below. These segments are managed separately based on the nature of operations. For
each of the segments, the Group’s CEO (the Group’s chief operating decision maker) reviews internal management reports monthly. The following
summary describes the operations in each of the Group’s reportable segments:
- Bokoni Mine - Mining of PGM’s.
- Projects - Mining exploration in Boikgantsho, Kwanda, and Ga-Phasha exploration projects.
The majority of operations and functions are performed in South Africa. An insignificant portion of administrative functions are performed in the
Company’s country of domicile.
The CEO considers earnings before net finance expense, income tax, depreciation and amortisation (“EBITDA”) to be an appropriate measure of
each segment’s performance. Accordingly, the EBITDA for each segment is included in the segment information. All external revenue is
generated by the Bokoni Mine segment.
Nine months ended 30 September 2012
Bokoni Mine Projects Total Note
EBITDA (23,494,677) (33,876) (23,528,553) (i)
Total Assets 868,134,086 3,239,657 871,373,743 (ii)
Nine months ended 30 September 2011
Bokoni Mine Projects Total Note
EBITDA (24,946,917) (587,002) (25,533,919) (i)
Total Assets 932,911,055 9,951,787 942,862,842 (ii)
Three months ended 30 September 2012
Bokoni Mine Projects Total Note
EBITDA (3,283,454) (2,940) (3,286,394) (i)
Three months ended 30 September 2011
Bokoni Mine Projects Total Note
EBITDA (2,513,945) (40,970) (2,554,915) (i)
2012 2011
(i) EBITDA – nine months ended
EBITDA for reportable segments (23,528,553) (25,533,919)
Net finance expense (69,681,297) (69,785,637)
Depreciation and amortisation (29,662,529) (33,149,385)
Corporate and consolidation adjustments 101,416,042 (7,640,418)
Consolidated loss before income tax (21,456,337) (136,109,359)
EBITDA - three months ended
EBITDA for reportable segments (3,286,394) (2,554,915)
Net finance expense (23,892,850) (21,882,454)
Depreciation and amortisation (10,504,446) (10,782,132)
Corporate and consolidation adjustments 103,147,914 (1,292,039)
Consolidated loss before income tax 65,464,224 (36,511,540)
(ii) Total assets
Assets for reportable segments 871,373,743 942,862,842
Corporate and consolidation adjustments (99,895,780) (16,409,332)
Consolidated total assets 751,477,963 926,453,510
11. EARNINGS PER SHARE
The basic and diluted earnings/(loss) per share for the three and nine months ended 30 September 2012 was 16 cents (2011: (4) cents) and 6
cents (2011: (15) cents) respectively.
The calculation of basic and diluted earnings/(loss) per share for the three months ended 30 September 2012 of 16 cents (2011: (4) cents) is
based on the earnings/(loss) attributable to owners of the Company of $67,548,621 (2011: ($15,984,182)) and a weighted average number of
basic shares of 424,791,411 (2011: 424,764,699).
The calculation of basic earnings/(loss) per share for the nine months ended 30 September 2012 of 6 cents (2011: (15) cents) is based on the
earnings/(loss) attributable to owners of the Company of $24,942,186 (2011: ($62,873,240)) and a weighted average number of shares of
424,791,411 (2010: 424,764,699).
Share options have no dilutive effect.
12. HEADLINE AND DILUTED HEADLINE EARNINGS PER SHARE
Headline earnings per share is calculated by dividing headline earnings attributable to shareholders of the Company by the weighted average
number of ordinary shares in issue during the period. Diluted headline earnings per share is determined by adjusting the headline earnings
attributable to shareholders of the Company and the weighted average number of ordinary shares in issue during the period, for the effects of all
dilutive potential ordinary shares, which comprise share options granted to employees.
Headline earnings per share
The calculation of headline earnings/(loss) per share for the three months ended 30 September 2012 of 16 cents (2011: (4) cents) is based on
headline earnings/(loss) of $67,548,621 (2011: ($15,984,182)) and a weighted average number of shares of 424,791,411 (2011: 424,764,699).
The calculation of headline earnings/(loss) per share for the nine months ended 30 September 2012 of 6 cents (2011: (15) cents) is based on
headline earnings/(loss) of $24,942,186 (2011: ($62,873,240)) and a weighted average number of shares of 424,791,411 (2011: 424,764,699).
The following adjustments to loss attributable to owners of the Company were taken into account in the calculation of headline loss attributable to
owners of the Company:
Three months ended 30 September
2012 2011
Earnings/ (loss) attributable to shareholders of the Company 67,548,621 (15,984,182)
- Loss on disposal of property, plant and equipment 594 17,929
Headline earnings/(loss) attributable to owners of the Company 67,549,215 (15,966,253)
Nine months ended 30 September
2012 2011
Earnings/ (loss) attributable to shareholders of the Company 24,942,186 (62,873,240)
- Loss on disposal of property, plant and equipment 594 17,929
Headline earnings/(loss) attributable to owners of the Company 24,942,780 (62,855,311)
The calculation of diluted headline earnings/(loss) per share for the three months ended 30 September 2012 of 16 cents (2011: (4) cents) is based
on headline earnings/(loss) of $67,549,215 (2011: ($15,966,253)) and a weighted average number of shares of 424,791,411 (2011: 424,764,699).
The calculation of diluted headline earnings/(loss) per share for the nine months ended 30 September 2012 of 6 cents (2011: (15 ) cents) is based
on headline earnings/(loss) of $24,942,780 (2011: ($62,855,311)) and a weighted average number of shares of 424,791,411 (2011: 424,764,699).
Share options were excluded in determining diluted weighted average number of common shares as they no effect.
There are no reconciling items between headline loss and diluted headline loss.
13. SUBSEQUENT EVENTS
There have been no events that have occurred after the reporting date that would have a material impact on the reported results.
Johannesburg
14 November 2012
JSE Sponsor
Macquarie First South Capital (Pty) Limited
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