Wrap Text
Reviewed Condensed Consolidated Interim Financial Information For The Six Months Ended 30 June 2013
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration no. 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
("the Company" or “the Group” or "Wesizwe")
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2013
Highlights
- 350 338 fatality free shifts achieved up to end June 2013 on the Bakubung Project.
- Both the Main and Ventilation shafts have been fully commissioned, licensed and are in the main
sink phase.
- Main shaft achieved a depth of 120m and Vent shaft a depth of 206m by the end of the reporting
period.
- Drawdown of US$100 million project loan from China Development Bank (CDB) concluded as part of the
US$650 million project funding facility.
- Cash on hand as of 30 June 2013 is R2.0 billion.
- Significant progress on a mine wide optimisation study. The study will be finalised by the end of
2013.
- Definitive metallurgical plant study underway, which may include synergistic options with
neighbouring mines, aimed at delivering both capital and operating cost savings.
- Services projects are on track and progressing well.
- Commissioned Phase 1 Eskom Power supply of 20MVa sufficient for the full development of the
project.
- Bulk Water Supply Agreement signed off with Magalies Water, and a number of supply projects have
been initiated.
- Housing project pre-feasibility concluded, with the focus now being on the securing of land in
partnership with local communities for the development of housing.
Note Six months Six months Year ended
ended ended December
June 2013 June 2012 2012
Reviewed Reviewed Audited
R’000 R’000 R'000
ASSETS
Non-current assets 3 708 882 2 886 939 3 334 789
Property, plant and
equipment 6 2 766 929 1 951 091 2 395 964
Available-for-sale
financial asset 21 670 15 719 18 910
Investment in equity-
accounted investee 7 920 283 920 129 919 515
Deferred tax asset - - 400
Current assets 2 185 142 1 126 632 1 526 484
Other receivables 32 141 31 859 21 590
Taxation receivable 13 788 4 724 11 231
Restricted cash 8 95 189 61 494 95 189
Cash and cash
equivalents 2 044 024 1 028 555 1 398 474
TOTAL ASSETS 5 894 024 4 013 571 4 861 273
EQUITY AND LIABILITIES
Capital and reserves 3 542 866 3 629 641 3 636 332
Stated / Share capital 9 3 425 544 16 3 425 544
Share premium 9 - 3 425 528 -
Share-based payment
reserve 472 179 472 179 472 179
Available-for-sale
financial asset reserve 3 811 1 948 2 891
Accumulated loss (358 668) (270 030) (264 282)
Non-current liabilities 298 645 281 977 287 413
Deferred tax liability 265 987 268 846 267 265
Environmental
rehabilitation
obligation 32 658 13 131 20 148
Current liabilities 2 052 513 101 953 937 528
Interest-bearing
liabilities 1 974 839 - 847 916
Trade and other
payables 75 752 100 673 87 690
Taxation payable 1 922 1 280 1 922
TOTAL EQUITY AND
LIABILITIES 5 894 024 4 013 571 4 861 273
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
Note Six months Six months Year ended
ended ended December
June 2013 June 2012 2012
Reviewed Reviewed Audited
R’000 R’000 R'000
Administration expenditure (45 762) (27 173) (61 322)
Share of profit of equity- accounted
investee (net of tax) 7 768 3 581 4 622
Impairment of loan to the Bakubung
community - (2 741) (2 744)
Impairment of investment in equity-
accounted investee - - (1 655)
Profit on sale of property, plant and
equipment 70 91
Project related expenses capitalised 17 546 - 20 738
Net operating costs (27 378) (26 333) (40 270)
Finance income 28 977 35 225 56 612
Foreign exchange loss 18 (83 351) - -
Finance expense (13 723) (1) (1 955)
Net financial (expense) / income
(68 097) 35 224 54 657
(Loss) / profit before tax (95 475) 8 891 14 387
Income tax 10 1 089 (4 891) (4 639)
(Loss) / profit for the period (94 386) 4 000 9 748
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Increase in fair value of the
available-for-sale financial asset 1 131 419 2 026
Tax on other comprehensive income (211) - (664)
Total other comprehensive income 920 419 1 362
Total comprehensive (loss) / income
for the period (93 466) 4 419 11 110
Basic (loss) / earnings per share
(cents) 17 (5.80) 0.25 0.60
Diluted (loss) / earnings per share
(cents) 17 (5.80) 0.25 0.60
Headline (loss) / earnings per share
(cents) 17 (5.80) 0.25 0.70
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Stated Share Share-based Available (Accumu- Total
/ share premium payment -for-sale lated loss)/
capital reserve reserves retained
earnings
R’000 R’000 R’000 R’000 R’000 R’000
Balance at
1 January 2012 16 3 425 528 472 179 1 529 (274 030) 3 625 222
Other comprehensive
income
- - - 419 - 419
Profit for the
period - - - - 4 000 4 000
- - - 419 4 000 4 419
Balance at
30 June 2012 16 3 425 528 472 179 1 948 (270 030) 3 629 641
Other comprehensive
income
- - - 943 - 943
Profit for the
period - - - - 5 748 5 748
Transfer of share
premium to stated
3 425 528 (3 425 528) - - - -
capital
3 425 528 (3 425 528) - 943 5 748 6 691
Balance at
31 December 2012 3 425 544 - 472 179 2 891 (264 282) 3 636 332
Other comprehensive
income - - - 920 - 920
Loss for the period - - - - (94 386) (94 386)
Balance at
30 June 2013 3 425 544 - 472 179 3 811 (358 668) 3 542 866
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Note Six months Six months Year
ended ended ended
June 2013 June 2012 December 2012
Reviewed Reviewed Audited
R’000 R’000 R'000
Cash flows from operating activities (15 985) 36 423 (25 905)
Finance income 29 449 37 008 75 148
Finance expense (13 030) (1) (200)
Taxation paid (2 557) - (9 418)
Cash (utilised) / generated in operations (2 123) 73 430 39 625
Cash flows utilised by investing
activities
Acquisition of property, plant and
equipment as a result of increase in
operations (372 686) (216 858) (605 615)
Purchase of available-for-sale financial
asset (1 629) (1 540) (3 124)
Proceeds on disposal of property, plant
and equipment - - 7
Net cash outflow from investing
activities (374 315) (218 398) (608 732)
Cash flows from financing activities
Interest-bearing borrowings raised 1 022 460 - 849 810
Loans paid on behalf of related party - - (2 744)
Net cash inflow from financing activities 1 022 460 - 847 066
Net increase / (decrease) in cash and
cash equivalents 646 022 (144 968) 277 959
Effects of exchange rate fluctuation on
cash held - - (2 560)
Cash and cash equivalents at the
beginning of the period 1 492 012 1 216 613 1 216 613
Cash and cash equivalents at the end of
the period 2 138 034 1 071 645 1 492 012
Restricted cash 95 189 61 494 95 189
Cash and cash equivalents 2 044 024 1 028 555 1 398 474
Total cash & cash equivalents 2 139 213 1 090 049 1 493 663
Less: Interest accrued (1 179) (18 404) (1 651)
Net cash on hand 2 138 034 1 071 645 1 492 012
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
For the six months ended 30 June 2013
1. Reporting entity
Wesizwe is a company domiciled in the Republic of South Africa. The condensed consolidated interim
financial information of the Company as at 30 June 2013 comprises the Company, its subsidiaries
and the Group’s interest in its equity-accounted investee (together referred to as the “Group”).
The consolidated financial statements of the Group for the year ended 31 December 2012 are
available upon request from the Company’s registered office at Unit 13, 2nd Floor, 3 Melrose
Boulevard, Melrose Arch, Johannesburg, 2076 or at www.wesizwe.com.
2. Statement of compliance
The condensed consolidated interim financial information has been prepared in accordance with IAS
34 Interim Financial Reporting issued by the International Accounting Standards Board and the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Reporting Pronouncements as issued by Financial Reporting Standards Council, the requirements of
the Companies Act of South Africa, No 71 of 2008, as amended and the JSE Limited Listings
Requirements. It does 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 for the year ended 31 December 2012. The condensed consolidated interim financial
information was approved by the Board of Directors on 13 September 2013. The financial statements
have been prepared under the supervision of the Finance Director, Mr W Ma.
3. Significant accounting policies
The accounting policies applied by the Group in the condensed consolidated interim financial
information are consistent with those applied by the Group in its consolidated annual financial
statements for the year ended 31 December 2012.
4. Estimates
The preparation of the interim financial information requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities, as well as income and expense. Actual results may differ from
these estimates.
Except as described below, in preparing the condensed consolidated interim financial information,
the significant judgements made by management in applying the Group’s accounting policies and the
key sources of estimation are consistent with those that applied to the consolidated financial
statements for the year ended 31 December 2012.
During the six months ended 30 June 2013 management reassessed its estimates in respect of:
- The investment in Maseve (note 7); and
- Rehabilitation liability.
5. Going concern
The current cash resources are adequate to fund the project development and administrative cost up
to the end of the first quarter 2014. At that stage the Company will become dependent on the
availability of the loan funding in the amount of US$650 million that the China-Africa consortium
is committed to provide in terms of the subscription agreement signed in May 2011. The loan is
scheduled for finalisation before the end of this year.
Given the timeframe to the realisation of the US$650 million project finance loan, a local
bridging facility consisting of two US$100 million loan facilities were agreed with CDB in 2012,
and both loans have been drawn down. The Company will maintain a minimum cash reserve to ensure
cash commitments can be met at all times.
6. Property, plant and equipment
During the period under review an amount of R371.8 million was capitalised to property, plant and
equipment as part of the activities to develop the mine and related construction activities.
At the reporting date, property, plant and equipment consisted of the following categories of
assets:
Property, Construction
plant and Work-in- Mineral
equipment progress Rights Total
R’000 R’000 R'000 R'000
Opening balance 24 294 1 313 941 1 057 729 2 395 964
Acquisitions during the period 1 069 370 759 - 371 828
Disposals - - - -
Depreciation (863) - - (863)
Closing balance 24 500 1 684 700 1 057 729 2 766 929
No additions have been made in respect of mineral rights during the period under review.
7. Investment in equity-accounted investee
Six months Six months Year ended
ended ended December
June 2013 June 2012 2012
Reviewed Reviewed Audited
R’000 R’000 R'000
Opening balance 919 515 916 548 916 548
Share of profit of equity-
accounted investee 768 3 581 4 622
Impairment of investment - - (1 655)
Closing balance 920 283 920 129 919 515
The Investment refers to the Group’s 26% investment in Maseve Investments 11 (Pty) Ltd (“Maseve”).
8. Restricted cash
Restricted cash covers the following guarantees:
- R27 million (June 2012: R28.7 million) in favour of the DMR on issue of the mining licence;
- R0.9 million (June 2012: R0.9 million) guaranteed to the landlord for the operating lease
agreement;
- R10.3 million (June 2012: R31.8 million) in favour of Eskom for phase 1 bulk power supply to the
Bakubung Platinum Mine Project; and
- R57 million (June 2012: nil) guaranteed to Aveng Mining Ltd for the mine shaft sinking project.
9. Stated / Share capital and share premium
Stated / Share capital
Six months Six months Year ended
ended ended December
June 2013 June 2012 2012
Reviewed Reviewed Audited
R’000 R’000 R’000
Authorised
2 000 000 000 no par value ordinary shares (2012:
2 000 000 000 ordinary shares of R0.00001 each)
- 20 -
Issued
1 627 827 058 no par value ordinary shares (2012:
1 627 827 058 ordinary shares of R0.00001 each) 3 425 544 16 3 425 544
Share premium
Six months Six months Year ended
ended ended December
June 2013 June 2012 2012
Reviewed Reviewed Audited
R’000 R’000 R’000
Opening balance - 3 425 528 3 425 528
Transfer of share premium to stated capital
- - (3 425 528)
Total - 3 425 528 -
10. Taxation
Six months Six months Year ended
ended ended December
June 2013 June 2012 2012
Reviewed Reviewed Audited
R’000 R’000 R'000
Current year - normal taxation - (4 820) (7 213)
Current year - deferred taxation 1 089 (71) 2 574
Total 1 089 (4 891) (4 639)
Reconciliation of effective tax rate % % %
Standard tax rate (28.0) 28.0 28.0
Non-deductible expenses 1.3 27.0 16.2
Deferred tax asset not raised 26.9 - 0.6
Share of profit of equity- accounted
investee (1.1) - (9.0)
Prior year deferred tax asset not raised (0.2) - (2.0)
Under-provision prior year - (1.5)
Effective rate (1.1) 55.0 32.3
11. Independent review
The condensed consolidated statement of financial position at 30 June 2013 and related condensed
consolidated statements of comprehensive income, changes in equity and cash flows for the period
have been reviewed by KPMG Inc. Their unqualified review opinion is available for inspection at
the Company’s registered office.
12. Segment reporting
No segmental report has been produced as the Group is conducting activities in one geological
location which represents its only business activity.
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. The operating results for the Group as a whole are
reviewed regularly by the Group’s CEO to make decisions about resources to be allocated and to
assess its performance.
13. Mineral resources
There were no material changes to the mineral resources for the six months ended 30 June 2013.
14. Judgements by directors and management
The management of Wesizwe is confident that the assets of the Group are not impaired.
15. Subsequent events
There were no events that occurred after the reporting date that required further disclosure in
these financial results.
16. Commitments
At 30 June 2013 the Group had commitments to the value of R1.3 billion. This amount includes the
commitment in respect of the shaft sinking agreement, which amounts to R1.1 billion (more than 85%
of the total commitments). This amount will be incurred over the next 5 years until June 2018,
and payments are to be made on physical progress.
17. (Loss) / Earnings per share
Six months Six months ended Year ended
ended June 2012 December
June 2013 Reviewed 2012
Reviewed Audited
The basis of calculation of basic
(loss) / earnings per share is:
Attributable profit / (loss) to
ordinary shareholders (Rand) (94 385 761) 4 000 355 9 747 918
Weighted average number of ordinary
shares in issue (shares) 1 627 827 058 1 627 827 058 1 627 827 058
Basic (loss) / earnings per share
(cents) (5.80) 0.25 0.60
The basis of calculation of diluted
(loss) / earnings per share is:
Attributable profit / (loss) to
ordinary shareholders (Rand) (94 385 761) 4 000 355 9 747 918
Weighted average number of ordinary
shares in issue (shares) 1 627 827 058 1 627 827 058 1 627 827 058
Diluted (loss) / earnings per share
(cents) (5.80) 0.25 0.60
The basis of calculation of headline
(loss) / earnings per share is:
Attributable (loss) / profit to
ordinary shareholders (Rand) (94 385 761) 4 000 355 9 747 918
Adjustments: (70 175) - 1 647 528
Profit on disposal of property, plant
and equipment (70 175) - (7 000)
Impairment of investment in equity-
accounted investee - - 1 654 528
Headline (loss) / earnings (Rand)
(94 455 936) 4 000 355 11 395 446
Weighted average number of ordinary
1 627 827 058 1 627 827 058 1 627 827 058
shares in issue (shares)
Headline and diluted headline (loss) /
earnings per share (cents) (5.80) 0.25 0.70
18. Foreign exchange loss
The foreign exchange losses arose as a result of the draw-down of the two unsecured loans of
US$100 million each from the CDB on 21 December 2012 and 21 June 2013 respectively, and the
volatility of the Rand-Dollar exchange rate during this period.
Commentary
1. Financial overview
As the Group is currently in development phase of the Bakubung Platinum Mine, it will not earn
revenue from mining activities until such time as a mine is brought into production.
The loss for the six months under review was R94.4 million (compared to a profit of R4.0 million for
the same period in 2012). The loss for the 6 month period comprises administration expenditure of
R45.8 million (2012: R27.1 million), net interest income R15.3 million (2012: R35.2 million) and an
equity-accounted share of profit of Maseve Investments 11 (Pty) Ltd of R0.8 million (2012: profit of
R3.6 million.
Administration expenses of R45.6 million include the following:
- Depreciation - R0.9 million (June 2012: R0.7 million);
- Professional fees – R5.0 million (June 2012: R2.9 million);
- Directors’ expenses – R4.4 million (June 2012: R3.5 million);
- Salaries and payroll related expenses – R22.6 million (June 2012: R11.2 million);
- Marketing expenses and investor relations – R1.1 million (June 2012: R2.7 million);
- Community sustainability projects – R1.8 million (June 2012: R1.8 million); and
- Other administrative overheads – R10.0 million (June 2012: R4.5 million).
During the six months under review the administration expenses increased by 68.4% compared to the
corresponding period in 2012. This was as a result of the ramp up of the Bakubung Platinum Mine
project. R371.8 million was capitalised to the cost of the mine, represented by work on the common
surface infrastructure, bulk services and preparatory work for the shaft sinking activities. Wesizwe
aims to contain administrative cost and control the capital expenditure on the Bakubung Platinum Mine
to deliver the project on time and within budget.
The basic loss per share for the period was 5.80 cents per share (2012: basic earnings of 0.25 cents
per share for the same period). The headline loss per share was 5.80 cents per share (2012: headline
earnings of 0.25 cents per share for the same period).
The basic loss per share in June 2013 is as a result of interest expense and foreign exchange loss
recognised in the Statement of Comprehensive Income for the period under review.
2. Project funding
Wesizwe announced the approval of the CDB US$650 million loan facility on 21 January 2013. As part of
this funding, Wesizwe obtained two bridging loan facilities of US$100 million each. As at the end of
the reporting period Wesizwe had R2.0 billion in cash available for utilisation in the Project.
Wesizwe plans to finalise all terms and condition of the US$650 million project funding before the
end of this financial year.
3. Project update – Bakubung Platinum Mine
Wesizwe is developing its 100% owned Bakubung Platinum Mine on the northern section of the western
limb of the Bushveld Complex in South Africa. The mine is expected to initiate production ramp up
early in 2018. At a steady state, the mine will produce 350 koz of 4E platinum group metals. Wesizwe
also owns a 26% interest in the developing Maseve Platinum mine, managed by Platinum Group Metals
Limited. The Maseve project will commission early in 2015 and will produce 270 koz of 4E platinum
group metals.
3.1. Safety and Health
As at the end of the reporting period, the project had achieved 350 338 fatality free shifts. The
project site and the mine continue to achieve good health and safety performance with injury
frequency rate below the industry average. This is due to concerted efforts by the site management
and employees and increased safety awareness. The average number of people on site for the period was
881. Unfortunately 4 lost time injuries (LTI’s) where reported for the period under review, resulting
in a lost time injury frequency rate (LTIFR) for the period of 0.91.
3.2. Main shaft
The period saw the successful conversion from pre-sink to slow sinking on the 8.5m diameter main
shaft. The main shaft headgear, winder-house and winders were commissioned during this period. Slow
sink was started at a depth of 120m below collar and commenced on 9 July 2013, approximately 2 weeks
ahead of schedule. All shaft bank steel work and services were commissioned at the same time, the 4
gate ventilation system was also extended to the face to provide sufficient ventilation for
operations.
3.3. Ventilation shaft
Sinking on the Ventilation shaft started in October 2012 with the headgear being commissioned in
January 2013. The stage and kibble winders were commissioned and licensed in February 2013. Slow
sink commenced on 22 March 2013. As at the end of June 2013, the shaft depth from collar was 206 m.
The progress to main sink and the main sink rate has been less than satisfactory in the period under
review. The key issues hindering the main sink were Eskom delays on the first phase power delivery, a
delay in the commissioning of the Kibble winder and a lack of sinking readiness on the part of the
sinking contractor. Certain negative geological factors also contributed to the delay in achieving
the target main sink rate (cycle times). The factors contributing to a slower than expected sink-rate
have been addressed aggressively, with positive results currently being demonstrated.
3.4. Metallurgical plant
The process plant feasibility study originally undertaken has been substantially reviewed post the
conclusion of definitive metallurgical test work done by Mintek. A process option analysis study
commenced in May 2013 and the recommended process option is being finalised to a definitive
feasibility (DFS) study level. The feasibility study is being conducted by WP-TWP Projects and a Mill
sizing modelling study was completed by UCT Process plant division. The DFS will be concluded by
March 2014, to then form the basis to the commencement in ordering of long lead items and the
construction of the plant.
3.5. Services
Mine services such as power, water and housing are critical to the overall success of the developing
project. Wesizwe is running parallel projects in these areas, to ensure the availability of these
services well within the critical path of the developing project.
3.6. Power
The permanent bulk power supply of 8MVa was commissioned in January 2013. This allowed the
commissioning on the Bakubung substation from an 88kV line dropped to 33kV mine substation. The power
availability allowed sinking winders on the ventilation shaft to be commissioned. Power reticulation
to all winders on site was also completed in the period under review inclusive of an additional 12MVa
supply from Eskom. The additional 12MVa has substantially de-risked the mine from a power perspective
during its development phase till early 2016 by which time the Phase 2 power supply project will be
concluded to supply the full power requirement of 60MVa. Phase2 power supply will come from the new
500MVa Ngwedi substation that has to be built to supply Wesizwe and neighbouring projects currently
being developed. Eskom has confirmed the national importance of the Ngwedi substation and Wesizwe
have been fully appraised of the project plan and delivery time on the substation. Regular project
progress meetings are held between Wesizwe and Eskom, inclusive of two other neighbouring mines under
development. Wesizwe is confident that power delivery will not be a limiting factor to the
commissioning of operations going forward.
3.7. Water
Wesizwe successfully signed off a long term Bulk Water Supply Agreement with Magalies Water on the
19 June 2013. The signature of the Agreement will see the implementation of a number of projects by
Magalies Water and Wesizwe to upgrade the existing infrastructure to deliver the required quantity of
water for the Project.
3.8. Housing project
Wesizwe concluded a pre-feasibility study on employee housing in January 2013. Wesizwe is currently
evaluating a number of housing site options in the local area. Wesizwe’s preference is to partner
with local municipalities in the development of housing estates. Further to this, Wesizwe is
developing a funding “blue print” for the financing of the construction of housing units. The funding
blue print will make use of a number of state supported housing financing institutions currently
available to organisations developing large housing projects. Wesizwe will focus on housing ownership
by employees as a priority, with a certain amount of rental stock being made available to persons who
choose to rent over house acquisition.
3.9. Project expenditure and commitments to date
Total capital expenditure to the end of June 2013 was R1.11 billion. Commitments remaining as at the
end of the period were R1.3 billion. The project is 14% complete relative to a planned completion of
15%. The slight shortfall in percentage completion relates to the shaft sinking rate which is behind
schedule. This situation has been addressed and the positive results are currently being seen.
3.10. Project optimization and synergy strategies with neighbouring mines
Wesizwe implemented a very significant mine optimisation study early in the period under review. The
optimisation process is designed to maximise mine efficiency and minimise project capital expenditure
and in time, operating costs. The study is scheduled to be completed at the end of 2013, and will be
in time to implement key changes to the shaft infrastructure and mine capital foot-print design. The
study will also focus on realising an earlier commissioning date for the project, which may have a
material impact on the value of the overall project.
Wesizwe is currently in advanced discussions with its neighbouring mines on key synergistic projects
involving Metallurgical processing of ore, power and water infrastructure and housing initiatives.
Wesizwe will be in a position to provide definitive details on the synergy discussions in the near
future.
3.11. Stakeholder Relations
Maintaining good stakeholder relations and ensuring proactive, on-going communications and engagement
with all the individual stakeholder groups that are critical to the success of Wesizwe, is a
strategic priority for the Company. The implementation phase of the Company’s fully integrated
stakeholder relations and corporate communications strategy is now fully underway and bearing fruit,
with tangible results being achieved in all spheres of activity.
Wesizwe is progressing transaction options to recover its historically disadvantaged South Africans
(“HDSA”) equity ownership objective for its current level of around 16% HSDA ownership. The options
under review are aimed at minimising the dilution of existing shareholders.
4. Maseve Investments 11 (Pty) Ltd
Wesizwe holds a 26% interest in the WBJV Project 1 (Maseve Platinum Mine) currently under
development. The Maseve project is 74% held by Platinum Group Metals Limited (PTM) and is managed by
PTM. The project, at steady state should produce 270 koz 4E platinum group metals. The mine
commissioning is planned for early 2015. The project is in its second phase of development. As of the
end of the review period the North twin declines had intersected the Merensky reef and was developed
to 1 300m. The North Mine is now focusing on lateral development. The South twin declines are in
early stage development, with development of 60m achieved. The South declines are 1.8km south of the
North Mine. The Services projects are progressing well and the Concentrator plant project feasibility
study has been concluded with the construction phase of the concentrator project 7.3% completed at
the end of June 2013.
Maseve Investments 11 (Pty) Ltd continues to finalise the required project financing for the funding
of the Maseve project. It is anticipated that this funding will be finalised in the near future. The
finalisation of the project funding may require additional equity funding being provided by the
Maseve shareholders. The timing and magnitude of this funding will be finalised shortly.
5. Board and management changes
Wesizwe is pleased to announce that two critical positions were filled during the period under
review. The Company welcomed Molaoli Edwin Mohlabi as General Manager: Mining on 1 February 2013 and
Jan Johannes Hattingh as Resident Engineering Manager on 01 May 2013.
Johannesburg
16 September 2013
By order of the board
Sponsor: PSG Capital Proprietary Limited
Directors: DNM Mokhobo (Chairman)*, D Chen (Deputy Chairman)*", J Gao (Chief Executive Officer)",
W Ma (Financial Director)", WM Eksteen *, J Li", LV Ngculu*, L Teng*", BJ van der Merwe*
- *Non Executive "Chinese
Company Secretary: Vasta Mhlongo
Transfer Secretaries: Computershare Investor Services (Proprietary) Limited, 70 Marshall street,
Johannesburg, 2001, PO Box 61051
Registered address: Unit 13, 2nd Floor, 3 Melrose Boulevard, Melrose Arch, 2076
Date: 16/09/2013 05:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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