Wrap Text
Atlatsa announces unaudited condensed consolidated interim financial statements for the three months ended 31 March
Atlatsa Resources Corporation
(previously Anooraq Resources Corporation)
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ATL
NYSE MKT share code: ATL
ISIN: CA0494771029
(”Atlatsa” or the “Company”)
ATLATSA ANNOUNCES ITS UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE
MONTHS ENDED 31 MARCH 2013
Atlatsa announces its unaudited condensed consolidated interim financial statements for the three months ended 31 March 2013,.
This announcement should be read with the Company`s full Annual Financial Statements and Management Discussion & Analysis,
for its financial year ended 31 December 2012, available at www.atlatsa.com and filed on www.sedar.com.
These financial statements have not been reviewed by the Company’s auditors
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Financial Position
As at 31 March 2013
(Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
Audited
Note 31 March 2013 31 December 2012
Assets
Non-current assets
Property, plant and equipment 5 704,013,927 748,456,905
Capital work-in-progress 6 24,384,960 20,027,764
Intangible assets 530,216 801,928
Mineral property interests 7,863,233 8,036,659
Goodwill 9,666,787 10,234,394
Platinum producers’ environmental trust 3,201,004 3,250,760
Other non-current assets 202,463 231,425
Total non-current assets 749,862,590 791,039,835
Current assets
Assets classified as held for sale 3,692,137 3,867,259
Inventories - 769,447
Trade and other receivables 35,417,708 3,272,400
Cash and cash equivalents 15,826,394 14,580,886
Restricted cash 510,895 535,502
Total current assets 55,447,134 23,025,494
Total assets 805,309,724 814,065,329
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 (8,220,487) (9,797,657)
Share-based payment reserve 25,200,617 25,285,851
Accumulated loss (270,330,689) (264,166,155)
Total equity attributable to equity holders of the Company (23,465,202) (18,792,604)
Non-controlling interest 213,137,574 224,049,827
Total equity 189,672,372 205,257,223
Liabilities
Non-current liabilities
Loans and borrowings 7 445,227,566 434,968,189
Deferred taxation 133,307,280 142,341,072
Provisions 9,411,233 9,786,479
Total non-current liabilities 587,946,079 587,095,740
Current liabilities
Trade and other payables 26,909,388 20,888,635
Short-term portion of loans and borrowings 781,885 823,731
Total current liabilities 27,691,273 21,712,366
Total liabilities 615,706,352 608,808,106
Total equity and liabilities 805,309,724 814,065,329
Approved by the Board of Directors on 14 May 2013
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Comprehensive Loss
For the period ended 31 March 2013
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 31 March
2013 2012
Revenue 45,080,728 34,078,622
Cost of sales (53,428,927) (53,422,147)
Gross loss (8,348,199) (19,343,525)
Administrative expenses (4,090,554) (4,096,704)
Other income 145,091 77,160
Fair value gain on consolidated facility 20,627,354 -
Operating profit/(loss) 8,333,692 (23,363,069)
Finance income 108,720 139,351
Finance expense (14,226,282) (22,821,236)
Net finance expense (14,117,562) (22,681,885)
Loss before income tax (5,783,870) (46,044,954)
Income tax 1,159,007 4,777,493
Loss for the period (4,624,863) (41,267,461)
Other comprehensive income/(loss)
Foreign currency translation differences for foreign operations (10,976,744) (1,653,339)
Other comprehensive loss for the period, net of income tax (10,976,744) (1,653,339)
Total comprehensive loss for the period (15,601,607) (42,920,800)
Loss attributable to:
Owners of the Company (6,164,534) (21,537,582)
Non-controlling interest 1,539,671 (19,729,879)
Loss for the period (4,624,863) (41,267,461)
Total comprehensive loss attributable to:
Owners of the Company (4,689,354) (22,102,429)
Non-controlling interest (10,912,253) (20,818,371)
Total comprehensive loss for the period (15,601,607) (42,920,800)
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statement of Changes in Equity
For the period ended 31 March 2013
(Unaudited - Expressed in Canadian Dollars)
Share Treasury Convertible Foreign Share-based
Capital Shares preferences currency payment
shares translation reserve
reserve
For the period ended 31 March 2012
Balance at 1 January 2012 71,967,083 (4,991,726) 162,910,000 (11,238,333) 24,042,711
Total comprehensive income/(loss) for the period
Loss for the period - - - - -
Total other comprehensive income/(loss) - - - (598,609) 33,762
Total comprehensive income/(loss) for the period - - - (598,609) 33,762
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payment transactions - - - - 258,481
Total contributions by and distributions to owners - - - - 258,481
Balance at 31 March 2012 71,967,083 (4,991,726) 162,910,000 (11,836,942) 24,334,954
For the period ended 31 March 2013
Balance at 1 January 2013 71,967,083 (4,991,726) 162,910,000 (9,797,657) 25,285,851
Total comprehensive income/(loss) for the period
Loss for the period - - - - -
Total other comprehensive income/(loss) - - - 1,577,170 (101,990)
Total comprehensive income/(loss) for the period - - - 1,577,170 (101,990)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payment transactions - - - - 16,756
Total contributions by and distributions to owners - - - - 16,756
Balance at 31 March 2013 71,967,083 (4,991,726) 162,910,000 (8,220,487) 25,200,617
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statement of Changes in Equity
For the period ended 31 March 2013
(Unaudited - Expressed in Canadian Dollars)
Accumulated Total Non- Total
loss controlling
interest
For the period ended 31 March 2012
Balance at 1 January 2012 (245,448,316) (2,758,581) (25,326,683) (28,085,264)
Total comprehensive income/(loss) for the period
Loss for the period (21,537,582) (21,537,582) (19,729,879) (41,267,461)
Total other comprehensive income/(loss) - (564,847) (1,088,492) (1,653,339)
Total comprehensive income/(loss) for the period (21,537,582) (22,102,429) (20,818,371) (42,920,800)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payment transactions - 258,481 - 258,481
Total contributions by and distributions to owners - 258,481 - 258,481
Balance at 31 March 2012 (266,985,898) (24,602,529) (46,145,054) (70,747,583)
For the period ended 31 March 2013
Balance at 1 January 2013 (264,166,155) (18,792,604) 224,049,827 205,257,223
Total comprehensive income/(loss) for the period
Loss for the period (6,164,534) (6,164,534) 1,539,671 (4,624,863)
Total other comprehensive income/(loss) - 1,475,180 (12,451,924) (10,976,744)
Total comprehensive income/(loss) for the period (6,164,534) (4,689,354) (10,912,253) 15,601,607)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Share-based payment transactions - 16,756 - 16,756
Total contributions by and distributions to owners - 16,756 - 16,756
Balance at 31 March 2013 (270,330,689) (23,465,202) 213,137,574 189,672,372
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Condensed Consolidated Interim Statements of Cash Flows
For the period ended 31 March 2013
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 31 March
2013 2012
Cash flows from operating activities
Cash utilised by operations 8 (27,402,956) (7,616,753)
Interest received 79,672 83,466
Interest paid (3,234) (45)
Cash utilised by operating activities (27,326,518) (7,533,332)
Cash flows from investing activities
Investment in environmental trusts (113,652) (122,232)
Acquisition of property, plant and equipment - (2,714)
Acquisition of capital work-in-progress (11,990,803) (6,995,160)
Cash utilised from investing activities (12,104,455) (7,120,106)
Cash flows from financing activities
Loans and borrowings raised 41,728,952 15,265,737
Other loans repaid (178,171) (219,588)
Cash generated from financing activities 41,550,781 15,046,149
Effect of foreign currency translation (874,300) 506,728
Net increase in cash and cash equivalents 1,245,508 899,439
Cash and cash equivalents, beginning of period 14,580,886 15,945,008
Cash and cash equivalents, end of period 15,826,394 16,844,447
ATLATSA RESOURCES CORPORATION (PREVIOUSLY ANOORAQ RESOURCES CORPORATION)
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended 31 March 2013
(Unaudited - Expressed in Canadian Dollars)
1. REPORTING ENTITY
Atlatsa Resources Corporation (previously Anooraq 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 months ended 31 March 2013 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 Group incurred a net loss for the three months ended 31 March 2013 of $4.6 million (2012 fiscal year: $95.6 million) and
as of that date its total assets exceeded its total liabilities by $189.7 million (2012: total assets exceeded total liabilities by
$205.3 million). The company continues to incur losses.
The company embarked on a restructuring and recapitalising plan during 2012 and on 28 September 2012 the first phase of
the restructuring plan was completed. The effect was a consolidation of all loan facilities into one facility at a more favourable
interest rate of 6.27% compared to 12.31% of the previous facility. The funds available from this facility are expected to meet
the Group’s projected cash flow requirements until approximately July 2013. The company is currently in the process of
implementing the second phase of the plan to reduce the debt by $271.2 million (ZAR2.45 billion) and for additional funds to
be made available from Anglo to meet the Group’s projected cash flow requirements until approximately the end of 2015.
Under the proposed plan the new restructured debt will only be repayable once the company generates sufficient free cash
flow.
Anglo has currently extended financial support until 30 September 2013.
The financial statements are prepared on the basis of accounting policies applicable to a going concern. This basis presumes
that debt restructuring and accompanying funding arrangements as described above are successfully approved by the
shareholders by June 2013.
These conditions give rise to a material uncertainty which may cast significant doubt about the ability of the Company and its
subsidiaries to continue as going concerns and, therefore that they may be unable to realise their assets and discharge their
liabilities in the normal course of business.The consolidated 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.
3. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial
Reporting. 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 2012. The
consolidated financial statements of the Group as at and for the year ended 31 December 2012 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 2012, except
for the following standards and interpretations adopted in the current financial year:
- 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)
- Amendment to IFRS 7, Disclosures – Offsetting Financial Assets and Financial Liabilities (effective 1 January 2013)
- 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)
- Amendment to IFRS 10, IFRS 11 and IFRS 12, Consolidated Financial Statements, Joint Arrangements and Disclosure of
Interests in Other Entities: Transition Guidance (Effective 1 January 2013)
- IFRIC 20, Stripping costs in the Production Phase of a Surface Mine (effective 1 January 2013)
- 7 individual amendments to 5 standards, Improvements to International Financial Reporting Standards 2012 (effective 1
January 2013)
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:
- IAS 32, Offsetting Financial Assets and Financial Liabilities (effective 1 January 2014)
- IFRS 9, Financial Instruments (effective 1 January 2015)
- IFRS 9, Additions to IFRS 9 Financial instruments (effective 1 January 2015)
5. PROPERTY, PLANT AND EQUIPMENT
Three months Year ended 31
ended 31 March December
2013 2012
Summary
Cost
Balance at beginning of period 856,549,652 876,764,628
Additions - 2,563
Transferred from capital work-in-progress 6,429,002 40,632,355
Disposals - (934)
Adjustment to rehabilitation assets - 1,391,080
Effect of translation (47,613,370) 62,240,040
Balance at end of period 815,365,284 856,549,652
Accumulated depreciation
Balance beginning of period 108,092,747 77,840,208
Depreciation for the period 9,412,336 37,091,152
Disposals - (353)
Effect of translation (6,153,726) (6,838,260)
Balance at end of period 111,351,357 108,092,747
Carrying value 704,013,927 748,456,905
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 20,027,764 20,826,290
Additions 11,990,803 38,917,145
Transfer to property, plant and equipment (6,429,002) (40,632,355)
Capitalisation of borrowing costs - 2,382,069
Effect of translation (1,204,605) (1,465,385)
Balance at end of period 24,384,960 20,027,764
7. LOANS AND BORROWINGS
Three months Year ended 31
ended 31 March December
2013 2012
Rustenburg Platinum Mines – Consolidated facility (related party) 441,205,902 430,570,710
Rustenburg Platinum Mines – Interest free loan (related party) 3,200,452 3,388,374
Other 1,603,096 1,832,836
446,009,450 435,791,920
Short-term portion
Other (781,884) (823,731)
(781,884) (823,731)
Non-current liabilities 445,227,566 434,968,189
The carrying value of the Group’s loans and borrowings changed during the period as follows:
Balance at beginning of the period 435,791,920 745,552,722
Rustenburg Platinum Mine – OCSF - 72,872,141
Loans repaid - RPM - (111,307,515)
Loans repaid - other (178,171) (1,048,243)
Commitment fee capitalised - (82,457)
Finance expenses accrued 14,052,793 84,546,911
Funding loan raised – Rustenburg Platinum Mine 41,728,952 315,612,211
Redemption of A Preference shares - (401,782,311)
Commitment fee liability - 82,457
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 and
subsequent adjustments (20,627,354) (215,470,758)
Effect of translation (24,758,690) (53,183,238)
Balance at end of the period 446,009,450 435,791,920
Short-term portion
Other (781,884) (823,731)
(781,884) (823,731)
Non-current portion 445,227,566 434,928,189
Three months ended 31 March
2013 2012
8. CASH USED BY OPERATIONS
Loss before income tax (5,783,870) (46,044,954)
Adjustments for:
Finance expense 14,226,282 22,821,236
Finance income (108,720) (139,351)
Items not involving cash:
Depreciation and amortisation 9,643,472 9,761,956
Equity settled share-based compensation 16,756 258,481
Fair value gain on consolidated facility (20,627,354) -
Cash utilised before ESOP transactions (2,633,434) (13,342,632)
ESOP cash transactions (restricted cash) 21,948 95,095
Cash utilised before working capital changes (2,611,486) (13,247,537)
Working capital changes
(Increase)/decrease in trade and other receivables (32,904,300) 1,700,318
Increase in trade and other payables 7,373,583 3,541,452
Decrease in inventories 739,247 389,014
Cash utilised by operations (27,402,956) (7,616,753)
9. 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 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.
31 March 2013 31 March 2012
Bokoni Mine Projects Total Bokoni Mine Projects Total Note
EBITDA 20,622,385 (8,844) 20,613,541 (35,338,158) (47,325) (35,385,483) (i)
Total Assets 819,186,789 108,031,636 927,218,425 931,370,322 10,068,667 941,438,989 (ii)
(i) EBITDA
EBITDA for reportable segments 20,613,541 (35,385,483)
Net finance expense (14,117,562) (22,496,718)
Depreciation and amortisation (9,643,472) (9,761,956)
Corporate and consolidation adjustments (2,636,377) 21,599,203
Consolidated loss before income tax (5,783,870) (46,044,954)
(ii) Total assets
Assets for reportable segments 927,218,425 941,438,989
Corporate and consolidation adjustments (121,908,701) (20,621,948)
Consolidated assets 805,309,724 920,817,041
10. EARNINGS PER SHARE
The basic and diluted loss per share for the three months ended 31 March 2013 was 1 cent (2012: 5 cents).
The calculation of basic loss per share for the three months ended 31 March 2013 of 1 cent (2012: 5 cents) is based on the loss
attributable to owners of the Company of $6,164,534 (2012: $21,537,582) and a weighted average number of shares of
424,791,411 (2012: 424,791,411).
Share options were excluded in determining diluted weighted average number of common shares as their effect would have been
anti-dilutive.
11. SUBSEQUENT EVENTS
There have been no events that have occurred after the reporting date that would have a material impact on the reported results.
14 May 2013
Johannesburg
JSE Sponsor
Macquarie First South Capital (Pty) Ltd.
Date: 14/05/2013 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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