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MIRANDA MINERAL HOLDINGS LIMITED - Correction regarding the going concern disclosure in the Annual Financial Statements for 31 August 2013

Release Date: 17/03/2014 16:30
Code(s): MMH     PDF:  
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Correction regarding the going concern disclosure in the Annual Financial Statements for 31 August 2013

Miranda Mineral Holdings Limited
(Incorporated in the Republic of South Africa)
 (Registration number 1998/001940/06)
  Share code: MMH ISIN: ZAE000074019
  (“Miranda” or “the Company”)

Correction regarding the going concern disclosure in the Annual Financial Statements for
31 August 2013

Shareholders are referred to the no change announcement published on SENS on 28 February 2014,
the condensed reviewed provisional results for the year ended 31 August 2013, published on
28 November 2013 as well as the Annual Financial Statements for the same period posted on
28 February 2014 and advise that the Going Concern paragraph (note 38) in the published Annual
Financial Statements is incorrect.

The correct paragraph is set out below:

“Going concern

The financial statements set out in this report are the responsibility of the company’s directors. They
have been prepared by the directors on the basis of appropriate accounting policies which have been
consistently applied. The financial statements have been prepared in accordance with International
Financial Reporting Standards and on the basis of accounting policies applicable to going concern.
The following matters are impacting on the group’s ability to continue as a going concern and are
reviewed by the directors on a regular basis to evaluate and assess the group’s ability to function as a
going concern:

    -   Loss for the year – the group incurred a loss of R24 million (2012: R28 million). Included in
        the R24 million loss is a R7.8 million share-based payment expense;
    -   Net current liability position – (excluding the shareholders’ loans) is R7.1 million (2012: R7.4
        million);
    -   Subsequent to year-end the group has raised R6.3 million through issue of shares and settled
        the majority of its liabilities.
    -   Production – the group has made progress with its negotiations to conclude an offtake
        agreement for the Sesikhona project. This is subject to litigation being successful as disclosed
        on note 31.
    -   The Board has approved a capital raising strategy to fund proposed income-generating
        acquisitions and shares are available for general issue for cash in the short term if necessary.
    -   At the date of this report Miranda had R231,266 cash available
    -   At the date of this report the liabilities excluding directors and shareholders loans was
        R2,534,029
    -   The estimated monthly cash burn at date of this report was between R1.2 and R1.5 million
        per month that includes executive and non-executive remuneration.
    -   The directors of Miranda will in the short term procure or provide the necessary funds through
        loan advances or deferral of fees to sustain the operations until the above mentioned capital
        raise is finalised.

The ability of the group to continue as a going concern is dependent on a number of factors. The most
significant of these in the short term, from March 2014 until June 2014, is that the directors continue
to procure funding for the current monthly expenses. Beyond June 2014 the directors believe that the
company will have raised enough capital to be sufficiently self-funded

The Board of Miranda is satisfied with the progress made in terms of all of the above as well as the
improvement of the group’s debt to equity ratio after year-end. It is also of the view that upon
execution of an offtake agreement and the necessary capital raise the group will be sufficiently self-
funded. The outstanding litigious matter is being vigorously defended and the Board is of the view that
the potential contingencies are not material to the group’s overall position (Refer to note 31).”

17 March 2014

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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