Wrap Text
Report for the quarter ended 30 June 2014
Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")
ANNOUNCEMENT
31 July 2014
REPORT FOR THE QUARTER ENDED 30 JUNE 2014
Repositioning Coal of Africa
Coal of Africa Limited ("CoAL" or "the Company") which operates in South Africa, together with its
subsidiaries, hereby provides its operational report for the quarter ended 30 June 2014. All figures are
denominated in United States dollars unless otherwise stated. A copy of this report is available on the
Company's website, www.coalofafrica.com. The Company will provide a further update on the release of its
Annual Report in September 2014.
Salient Features
- No lost-time injuries recorded during the quarter (FY2014 Q3: one).
- Sedgman continued with the Front End Engineering and Design ("FEED") process for the Vele Colliery
plant modification.
- Independent consultants Snowden appointed to undertake a Technical Review of the Vele Colliery,
expected to be completed during Q3 CY2014.
- Work continued on the applications for regulatory amendments required for the Vele Colliery plant
modifications.
Corporate and Financial Features
- Settlement of the business interruption insurance claim relating to the February 2013 train derailment on
the Maputo corridor and receipt of R15.96 million (USD1.5 million).
- Receipt of the R5 million (USD0.5 million) deposit for the sale of the Opgoedenhoop mining right with the
balance of the R20.8 million (USD2 million) purchase price due by March 2015.
- Continued interaction with potential funders of the BEE structure which will facilitate the finalisation of their
acquisition of a 26% interest in the Makhado Project.
- Discussions on both the outstanding USD30 million payment to Rio Tinto and on the Grindrod take or pay
liability continued with good progress made during the quarter.
- Available cash at period end of USD2 million and restricted cash of USD6.7 million.
Post period highlights
- Signature of a term sheet in July 2014 for rehabilitation guarantees facilitating the release of R12 million
(USD1.1 million) of restricted cash.
Commenting today, Mr David Brown, Chief Executive Officer said: "Significant progress on the disposal of the
Mooiplaats Colliery was made during the period with potential purchasers' due diligence processes at an
advanced stage. The proceeds from the disposal of Mooiplaats will be used to reduce the Investec working
capital facility and partially settle outstanding liabilities and, will complete the disposal process of the thermal
coal portfolio. The Company is assessing various additional funding mechanisms which are expected to be
finalised during Q3 CY2014, including the replacement of cash-backed rehabilitation guarantees with longer-
term insurance facilities. This action and the replacement of the Woestalleen guarantees by the purchaser
(which is expected imminently) will facilitate the release of $2.8 million of restricted cash, and ensures
that the Company has sufficient funds for the next quarter prior to any of the other initiatives being successful.
The Sedgman FEED, Snowden Technical Review and legislative compliance work undertaken on the Vele
Colliery during the quarter will enable the construction of the plant modifications to commence towards the
end of CY2014, subject to the project delivering an acceptable return supported by off-take agreements and
the requisite funding."
QUARTERLY COMMENTARY
Mooiplaats Colliery – Ermelo Coalfield (74% owned)
The Mooiplaats thermal coal colliery ("Mooiplaats Colliery") was placed on care and maintenance during the
September 2013 quarter and recorded no lost time injuries ("LTIs") during the period (FY2014 Q3: nil LTIs).
The Mooiplaats Colliery disposal process continued during the period and the Company is awaiting signed
offers and proof of funding from prospective purchasers with a view to completing a transaction during H2
CY2014.
Vele Colliery – Limpopo (Tuli) Coalfield (100% owned)
The Vele coking and thermal coal colliery ("Vele Colliery") recorded no LTIs during the quarter (FY2014 Q3:
nil LTIs).
As a result of reduced activity at site pending finalisation of various processes underway relating to the
anticipated plant modification, the colliery did not produce or process coal during the quarter. During the
period the Snowden Group ("Snowden") commenced with a Technical Review of the Vele Colliery plant
modification and Sedgman South Africa ("Sedgman") continued with the FEED process for the plant
modification project. Both processes are expected to be completed during Q3 CY2014 and improvements to
the existing plant will result in the simultaneous production of semi-soft coking coal and export quality thermal
coal. The construction of the plant modification is expected to commence in Q4 CY2014 and be completed by the
end of CY2015 with the production ramp-up phase complete in early CY2016.
During the quarter the Company received stakeholder input for the application to amend the Environmental
Authorisation in terms of the National Environmental Management Act relating to the Vele plant modification
project. No material issues were raised and the Company is confident that the record of decision from the
Department of Environmental Affairs will be received during Q3 CY2014. Extensive work on the application to
amend the colliery's Integrated Water Use Licence ("IWUL") to include the plant modifications was undertaken
during the quarter and this application is expected to be submitted during August 2014. CoAL does not expect
that the IWUL application will result in any delays to the construction of the plant modifications or subsequent
production as the existing IWUL remains valid.
Discussions with potential customers for the Vele Colliery coal continued during the quarter and the Company
expects to convert these into formal off-take agreements in H2 CY2014.
Makhado Coking Coal Project – Soutpansberg Coalfield (100% owned)
The Makhado coking coal project ("Makhado Project") recorded no LTIs (FY2014 Q3: no LTIs) during the
quarter.
As required under South African mining legislation, a minimum 26% Black Economic Empowerment ("BEE")
shareholding is required for mining and exploration projects. The Company signed a Memorandum of
Agreement during the March 2014 quarter to enable a BEE consortium comprising seven local communities to
acquire an interest ensuring that the Makhado Project has the requisite corporate structure for the granting of
the New Order Mining Right ("NOMR"). Discussions continued with potential funders to facilitate the BEE
consortium's acquisition of its interest and the Company anticipates that these will be finalised during H2
CY2014, expediting the granting of the NOMR.
Greater Soutpansberg Project (MbeuYashu) (74% owned)
The MbeuYashu Project recorded no LTIs (FY2014 Q3: no LTIs) during the period.
During the quarter the Company finalised the public participation programmes in relation to the Environmental
Impact Assessment phase for the Generaal, Chapudi and Mopane projects, all forming the Greater
Soutpansberg Project.
Cash Position
The scaling down of activities at the Company's projects earlier in FY2014 resulted in no cash being received
from operating activities during the period (Q3 FY2014: USD3.5 million). Cash outflows included production
expenses (care and maintenance expenses) of $0.6 million (FY2014 Q3: $0.5 million), spend on Vele of
$0.7 million (FY2014 Q3: $0.6 million) and $0.4 million (FY2014 Q3: $0.5 million) paid as a result of the
Company’s take of pay obligations net of the recovery of logistics costs from third party users at the
Matola Terminal in Mozambique. During the period the Company received the first tranche of R5 million
(USD0.5 million) for the sale of the Opgoedenhoop NOMR, with the balance of the R20.8 million
(USD2 million) purchase price payable on the earlier of the granting of the water
use licence or the one year anniversary of the Section 11 approval, being 27 March 2015.
The estimated cash outflow for the quarter ending September 2014 included in the 5B report (attached to this
commentary) is expected to be USD4.7 million of which a total of USD0.6 million will be spent on development
and production, while administration expenses of USD3.7 million will be required to cover all other overhead
costs. These will be paid from cash balances, proceeds from the sale of non-core assets and the release of
restricted cash utilised for rehabilitation guarantees.
Strategic and Corporate Update
During the quarter the Company assessed various interim funding mechanisms which will fund the Vele
Colliery plant modifications, settle outstanding liabilities and provide general working capital.
The Company is evaluating a number of options that include potential debt funding, potential equity
funding, and receipts from the sale of non-core assets. The Company expects the process to be completed
during Q3 CY2014.
The Company made significant progress finalising the Turnaround Strategy during the reporting period,
including:
1. Sale of Non-Core Assets: Mooiplaats is the only remaining non-core asset available for sale and potential
buyers' due diligence processes are at an advanced stage with a successful sale due to be finalised
before the end of CY2014. The Company also expects to finalise the previously announced R50 million
(USD4.8 million) disposal of Holfontein during CY2014, having received an option fee of R5 million
(USD0.5 million) during December 2013, and will dispose of the remaining shares it holds it holds in AIM
listed Bushveld Minerals Ltd, depending on market conditions.
2. Arbitration: The Envicoal arbitration progressed during the quarter and is expected to be completed during
the quarter ending September 2014, resolving all material legal claims.
3. Outstanding Rio Tinto and Grindrod liabilities: The Company continued negotiations with Rio Tinto in
order to reach an agreement on payment terms for the outstanding USD30 million of the Greater
Soutpansberg purchase price, acquired during CY2012. This process is expected to be finalised during
the September 2014 quarter together with the agreement on the Grindrod take or pay liability.
4. Vele plant modification and off-take agreements: The FEED process for the planned Vele Colliery plant
modification continued during the quarter and is scheduled to coincide with the finalisation of the
Technical Review and off-take agreements during H2 CY2014.
Authorised by
David Brown
Chief Executive Officer
31 July 2014
For more information contact:
David Brown Executive Chairman Coal of Africa +27 10 003 8000
Michael Meeser Chief Financial Officer Coal of Africa +27 10 003 8000
Celeste Harris Investor Relations Coal of Africa +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Jos Simson/Emily Fenton Financial PR (United Kingdom) Tavistock +44 20 7920 3150
Chris Sim/George Price/Jeremy Ellis Nominated Adviser Investec Bank plc +44 20 7597 5970
Charmane Russell/Jane Kamau Financial PR (South Africa) Russell & Associates +27 11 880 3924 or
+27 82 372 5816
Investec Bank Limited is the nominated JSE Sponsor
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele
Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).
Tenements held by CoAL and its Controlled Entities
Change
Project Name Tenement Number Location Interest in quarter
Chapudi Albert 686 MS- Limpopo~ 74%
Project*
Bergwater 712 MS-- 74%
Remaining Extent and Portion 2 of Bergwater 697 MS-- 74%
Blackstone Edge 705 MS 74%
Remaining Extent & Portion 1 of Bluebell 480 MS- 74%
74%
Remaining Extent & Portion 1 of Bushy Rise 702 MS--
Castle Koppies 652 MS-- 74%
Chapudi 752 MS -- 74%
Remaining Extent, Portions 1, 3 & 4 of Coniston 699 MS-- 74%
Driehoek 631 MS-- 74%
Remaining Extent of Dorps-rivier 696 MS-- 74%
Enfield 512 MS (consolidation of Remaining Extent of 74%
Enfield 474 MS, Brosdoorn 682 MS & Remaining Extent of
Grootvlei 684 MS)--
Remaining Extent and Portion 1 of 74%
Grootboomen 476 MS- 74%
Grootvlei 684 MS-- 74%
Kalkbult 709 MS 74%
Remaining Extent, Remaining Extent of Portion 2, 74%
Remaining Extent of Portion 3, Portions 1, 4, 5, 6, 7 & 8 of
Kliprivier 692 MS-
Remaining Extent of Koodoobult 664 MS- 74%
Koschade 657 MS (Was Mapani Kop 656 MS)- 74%
Malapchani 659 MS- 74%
Mapani Ridge 660 MS- 74%
Melrose 469 MS- 74%
Middelfontein 683 MS- 74%
Mountain View 706 MS- 74%
M'tamba Vlei 654 MS 74%
Remaining Extent & Portion 1 of Pienaar 635 MS- 74%
Remaining Extent & Portion 1 of Prince's Hill 704 MS- 74%
Qualipan 655 MS- 74%
Queensdale 707 MS- 74%
Remaining Extent & Portion 1 of Ridge End 662 MS- 74%
Remaining Extent & Portion 1 of Rochdale 700 MS- 74%
Sandilands 708 MS- 74%
Portions 1 & 2 of Sandpan 687 MS-- 74%
Sandstone Edge 658 MS- 74%
Remaining Extent of Portions 2 & 3 of Sterkstroom 689 74%
MS--
Sutherland 693 MS- 74%
Remaining Extent & Portion 1 of Varkfontein 671 MS-- 74%
Remaining Extent, Portion 2, Remaining Extent of Portion 74%
1 of Vastval 477 MS-
Vleifontein 691 MS- 74%
Ptn 3, 4, 5 & 6 of Waterpoort 695 MS-- 74%
Change
Project Name Tenement Number Location Interest in quarter
Wildebeesthoek 661 MS- 74%
Woodlands 701 MS- 74%
Kanowna West M27/41 Coolgardie^ 23.68%
and
Kalbara M27/47 23.68%
M27/59 23.68%
M27/72,27/73 23.68%
M27/114 23.68%
M27/181 21.31%
M27/196 23.68%
M27/414,27/415 23.68%
P27/1826-1829 23.68%
P27/1830-1842 23.68%
P27/1887 23.68%
Abbotshall ML63/409,410 Norseman^ Royalty
Royalty
Kookynie ML40/061 Leonora^ Royalty
Royalty
ML40/135,136 Royalty
Holfontein Remaining extent, Remaining Extent of portions 1, 5 and Mpumalanga~ 100%
11 and portions 4, 6, 9, 10, 12 and 13 of the farm
Holfontein 138 IS
Makhado Fripp 645 MS Limpopo~ 100%
Project
Lukin 643 MS 100%
Remaining Extent and Portion 1 of Overwinning 713 MS 100%
Salaita 188 MT 100%
Tanga 648 MS 100%
Remaining Extent, Portion 1 and 100%
Portion 2 of the farm Windhoek 649 MS
Generaal Limpopo~ 74%
Beck 568 MS--
Project
Bekaf 650 MS- 74%
Remaining Extent & Portion 1 of Boas 642 MS- 74%
Chase 576 MS- 74%
Coen Britz 646 MS- 74%
Fanie 578 MS- 74%
Gray 189 MT 100%
Portions 1, 2 and Remaining Extent of Generaal 587 MS- 74%
Joffre 584 MS- 74%
Juliana 647 MS 74%
Kleinenberg 636 MS- 74%
Remaining Extent of Maseri Pan 520 MS- 74%
Remaining Extent and Portion 2 of Mount Stuart 153 MT-- 100%
Nakab 184 MT-- 100%
Phantom 640 MS-- 74%
Riet 182 MT-- 100%
Rissik 637 MS- 100%
Salaita 188 MS- 74%
Change
Project Name Tenement Number Location Interest in quarter
Schuitdrift 179 MT- 100%
Septimus 156 MT-- 100%
Solitude 111 MT- 74%
Stayt 183 MT-- 100%
Telema 190 MT 100%
Remaining Extent & Portion 1 of Terblanche 155 MT-- 100%
Van Deventer 641 MS- 74%
Wildgoose 577 MS- 74%
Mopane Limpopo~ 100%
Ancaster 501 MS--
Project*
Banff 502 MS- 74%
Bierman 599 MS- 74%
Cavan 508 MS 100%
Cohen 591 MS-- 100%
Remaining Extent, Portions 1 & 2 of Delft 499 MS- 74%
Dreyer 526 MS-- 74%
Remaining Extent of Du Toit 563 MS- 74%
Faure 562 MS 74%
Remaining Extent and Portion 1 of Goosen 530 MS -- 74%
Hermanus 533 MS- 74%
Jutland 536 MS-- 100%
Krige 495 MS- 74%
Mons 557 MS- 100%
Remaining Extent of Otto 560 MS (Now Honeymoon)- 74%
Remaining Extent & Portion 1 of Pretorius 531 MS- 74%
Schalk 542 MS- 74%
Stubbs 558 MS- 100%
Ursa Minor 551 MS-- 74%
Van Heerden 519 MS-- 74%
Portions 1, 3, 4, 5, 6, 7, 8, 9, Remaining Extent of Portion 74%
10, Portions 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24,
26, 27, 29, 30, 35, 36, 37, 38, 39, 40, 41, 44, 45, 46, 48,
49, 50, 51, 52 & 54 of Vera 815 MS
Remaining Extent of Verdun 535 MS- 74%
Voorburg 503 MS-- 100%
Mooiplaats Mpumalanga~ 74%
Colliery and Portions 1, 9,14,17,18,19,20 & Remaining Extent of
prospects Mooiplaats 290 IT
Portion 2, 3 and Remaining Extent of Klipbank 295 IT 74%
Portions 1, 2 and Remaining Extent of Adrianople296 IT 74%
Portions 2 & 3 of Willemsdal 330 IT 74%
Portions 2, 3, 4 & Remaining Extent) of De Emigratie 327 74%
IT
Remaining Extent and Portions 2, 5, 8,10 & 13 of 74%
Buhrmansvallei 297 IT
Klipfontein 442 IT 74%
Vele Colliery Portions of Overvlakte 125 MS (Remaining Extent, 3, 4, 5, Limpopo~ 100%
and prospect 6, 13, 14)
Bergen Op Zoom 124 MS 100%
Semple 155 MS 100%
Voorspoed 836 MS 100%
Alyth 837 MS 100%
Change
Project Name Tenement Number Location Interest in quarter
Lizzuela 62 MS 100%
Patracia 65 MS 100%
Hacyon 69 MS 100%
Tshikunda Certain portions of Unsurveyed State Land known as Limpopo~ 60%
Mutale
Coal bed Limpopo~ 50%
Adelaide 91 MT
methane
Adieu 118 MT 50%
Alicedale 138 MT 50%
Armstice 120 MT 50%
Bergwater 697 MS 50%
Bergwater 712 MS 50%
Blackstone Edge 705 MS 50%
Bushy Rise 702 MS 50%
Chapudi 752 MS 50%
Charlotte 90 MT 50%
Chase 576 MS 50%
Cross 117 MT 50%
Doppie 95 MT 50%
Ettie 33 MT 50%
Fanie 578 MS 50%
Feskraal 85 MT 50%
Folorodwe 79 MT 50%
Fripp 645 MS 50%
Gray 189 MT 50%
Hettey 93 MT 50%
Jeannette 77 MT 50%
Joffre 584 MS 50%
Kalkbult 709 MS 50%
Laura 115 MT 50%
Lukin 643 MS 50%
Magazasand 123 MT 50%
Malapchani 659 MS 50%
Mountainview 706 MS 50%
Mount Stuart 153 MT 50%
Nakab 184 MT 50%
Naus 178 MT 50%
Neltox 92 MT 50%
Phantom 640 MS 50%
Prince's Hill 704 MS 50%
Queensdale 707 MS 50%
Riet 182 MT 50%
Rochdale 700 MS 50%
Rynie 158 MT 50%
Salaita 188 MT 50%
Schuitdrift 179 MT 50%
Septimus 156 MT 50%
Stayt 183 MT 50%
Suzette 32 MT 50%
Tanga 648 MS 50%
Telema 190 MT 50%
Change
Project Name Tenement Number Location Interest in quarter
Terblanche 155 MT 50%
Trevenna 119 MT 50%
The Duel 186 MT 50%
Truida 76 MT 50%
Van Deventer 641 MS 50%
Wendy 86 MT 50%
Wildgoose 577 MS 50%
Windhoek 649 MS 50%
Zisaan 31 MT 50%
Ziska 122 MT 50%
Portion of Unsurveyed state land 50%
* Form part of the Greater Soutpansberg Project
- Lapsed – Mining Right Application Lodged
-- Valid – Mining Right Application Lodged
~ Tenement located in the Republic of South Africa
^ Tenement located in Western Australia
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.
Name of entity
Coal of Africa Limited
ABN Quarter ended ("current quarter")
98 008 905 388 30 June 2014
Consolidated statement of cash flows
Year to date
Cash flows related to operating activities Current quarter (12 months)
USD'000 USD'000
1.1 Receipts from product sales and related debtors - 26,207
1.2 Payments for (a) exploration & evaluation (181) (3,867)
(b) development (694) (11,548)
(c) production (612) (20,851)
(d) logistics (366) (4,667)
(e) administration (1,234) (13,165)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature received 94 1,104
1.5 Interest and other costs of finance paid (170) (698)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - (831)
Net Operating Cash Flows (3,163) (28,316)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.9 Proceeds from sale of: (a) prospects - 937
(b) equity investments 468 2,232
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - (1,227)
Net investing cash flows 468 1,942
1.13 Total operating and investing cash flows (carried forward) (2,695) (26,374)
1.13 Total operating and investing cash flows (brought forward) (2,695) (26,374)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. - -
1.15 Proceeds from pending issues of shares* - -
1.16 Proceeds from sale of forfeited shares - -
1.17 Proceeds from borrowings - 10,000
1.18 Repayment of borrowings (3,996) (18,254)
1.19 Dividends paid - -
1.20 Other (provide details if material) - 7,376
Net financing cash flows (3,996) (878)
Net increase (decrease) in cash held (6,691) (27,252)
1.21 Cash at beginning of quarter/year to date 8,885 28,922
1.22 Exchange rate adjustments (165) 359
1.23 Cash at end of quarter 2,029 2,029
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
USD'000
1.23 Aggregate amount of payments to the parties included in item 1.2 264
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities
but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity
has an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
USD'000 USD'000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
USD'000
4.1 Exploration and evaluation 181
4.2 Development 300
4.3 Production 300
4.4 Logistics 198
4.5 Administration 3,720
Total 4,699
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the Current quarter Previous quarter
consolidated statement of cash flows) to the related items in the USD'000 USD'000
accounts is as follows.
5.1 Cash on hand and at bank 1,496 7,852
5.2 Deposits at call 533 1,033
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 2,029 8,885
Changes in interests in mining tenements
Tenement Nature of Interest at beginning of Interest at end of
reference interest quarter quarter
(note (2))
6.1 Interests in mining tenements relinquished,
reduced or lapsed
6.2 Interests in mining tenements acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per Amount paid up per
security (see note 3) security (see note 3)
(cents) (cents)
7.1 Preference Nil
+securities
(description)
7.2 Changes during
quarter
7.3 +Ordinary securities 1,048,638,613 1,048,638,613
7.4 Changes during
quarter
(a) Increases through Nil Nil
issues
(b) Decreases
through returns of
capital, buy-backs
7.5 +Convertible debt Nil
securities
(description)
7.6 Changes during
quarter
(a) Increases through
issues
(b) Decreases
through securities
matured, converted
7.7 Options (description 21,168,990 Nil Exercise price Expiry date
and conversion factor) See Note 6 See Note 6
7.8 Issued during quarter Nil Nil See Note 6 See Note 6
7.9 Exercised during Nil Nil See Note 6 See Note 6
quarter
7.10 Cancelled during Nil Nil
quarter
7.11 Debentures Nil
(totals only)
7.12 Unsecured notes Nil
(totals only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Company secretary
Tony Bevan
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have
been financed for the past quarter and the effect on its cash position. An entity wanting to disclose
additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining
tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a
joint venture agreement and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items
7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and
AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting
Standards for foreign entities. If the standards used do not address a topic, the Australian standard
on that topic (if any) must be complied with.
6 Issued and Quoted Options as at 31 March 2014:
Number Issued Number Exercise Expiry Date Lapsed Since End
Quoted Price of quarter
3,000,000 - AUD2.74 30 November 2014 -
2,500,000 - AUD1.20 9 November 2015 -
1* - GBP0.60 1 November 2014 -
1,441,061 - AUD1.40 30 September 2015 -
2,670,000 - ZAR7.60 14 February 2017 -
3,500,000 - GBP0.25 30 November 2015 -
3,932,928 - ZAR1.75 30 June 2017 -
4,125,000 - ZAR2.00 30 June 2018 -
*1 Option to subscribe for 50 million ordinary shares for 60 pence each between 1 November 2010
and 1 November 2014 as approved by shareholders on 22 April 2010
The Company is required to issue 20 million options to Investec Bank Limited, at an exercise price
of ZAR 1.32 and expiring on 21 October 2018, as part of the short term bridging facility. This is
subject to shareholder approval.
Sponsor
Investec Bank Limited
31 July 2014
Date: 31/07/2014 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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