Wrap Text
Reviewed Condensed Consolidated Interim Financial Information for the Six Months Ended 30 June 2014
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the “Company” or “Wesizwe”)
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Highlights
- 550,787 fatality free shifts were achieved up to the end June
2014 on the Bakubung Project.
- The main shaft reached a depth of 581m and Vent shaft a depth of
693m by the end of the interim reporting period.
- First production level (69 Level) development was initiated on
the Vent shaft.
- First drawdown on the US$650 million project loan from China
Development Bank (CDB) took place in January 2014 and the short
term loans from CDB were repaid. Cash on hand as of 30 June 2014
is R375 million.
- Findings of the Bakubung Platinum Mine Optimisation study where
approved by the Board of Directors (“the Board”) on the 14 March
2014. The findings have been implemented in terms of the mine
development plan and are expected to deliver meaningful
efficiencies and optimised productivity.
- Definitive concentrator plant study (DFS) was concluded during
the interim period under review. Value engineering and
optimising of process flow sheet options are currently being
evaluated. Wesizwe is also evaluating an option to purchase a
second hand plant from an existing industry player which may
deliver significant capital savings to the project.
- Services projects are on track and progressing well.
- Phase 1 Eskom Power supply of 20MVa sufficient for the full
development of the project is in place.
- Infrastructure for the Phase 2 Eskom Power supply of 60MVa is
in construction and long lead time items have been ordered.
- All required Pilanesburg South Water Supply Scheme projects are
in their implementation / construction phase, which will ensure
sufficient water to the project for commissioning and steady-
state operation.
- Housing project feasibility study is underway on housing projects
in the immediate proximity to the project. This initiative will
include partnering with the local community and possible housing
units purchased from other industry players.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note Six months Six months Year ended
ended ended December
June 2014 June 2013 2013
Reviewed Reviewed Audited
R’000 R’000 R'000
ASSETS
Non-current assets 4 681 039 3 708 882 4 242 749
Property, plant and
equipment 6 3 598 472 2 766 929 3 241 329
Available-for-sale
financial asset - 21 670 -
Investment in equity-
accounted investee 7 920 926 920 283 920 750
Restricted Cash 8 161 641 - 80 670
Current assets 407 725 2 185 142 800 044
Other receivables 28 164 32 141 11 606
Taxation receivable 4 363 13 788 2 557
Restricted cash 8 611 95 189 34 458
Cash and cash
equivalents 374 587 2 044 024 751 423
TOTAL ASSETS 5 088 764 5 894 024 5 042 793
EQUITY AND LIABILITIES
Capital and reserves 3 620 651 3 542 866 3 624 430
Stated capital 9 3 425 544 3 425 544 3 425 544
Share-based payment
reserve - 472 179 -
Available-for-sale
financial asset reserve - 3 811 -
Retained Earnings /
(Accumulated loss) 195 107 (358 668) 198 886
Non-current liabilities 1 345 688 298 645 293 684
Deferred tax liability 264 865 265 987 264 289
Interest-bearing
borrowings 1 047 526 - -
Mine closure and
environmental 14
rehabilitation
obligation 33 297 32 658 29 395
Current liabilities 122 425 2 052 513 1 124 679
Interest-bearing
borrowings 20 841 1 974 839 1 049 552
Trade and other
payables 101 584 75 752 73 104
Taxation payable - 1 922 2 023
TOTAL EQUITY AND
LIABILITIES 5 088 764 5 894 024 5 042 793
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER
COMPREHENSIVE INCOME
Note Six Six Year
months months ended
ended ended December
June June 2013
2014 2013 Audited
Reviewed Reviewed
R’000 R’000 R'000
Administration expenditure (82 765) (45 762) (87 290)
Project related expenses
capitalised 67 998 17 546 53 691
Share of profit of equity-
accounted investee (net of
tax) 7 176 768 1 235
Loss on scrapping of
property, plant and equipment - - (18)
Profit on sale of property,
plant and equipment - 70 70
Net operating costs (14 591) (27 378) (32 312)
Finance income 28 059 28 977 77 970
Foreign exchange loss (5 380) (83 351) (144 890)
Finance expense (29 733) (13 723) (42 050)
Finance costs capitalised 18 448 - 127 865
Available-for-sale financial
asset reclassified to profit
or loss - - 1 651
Profit on disposal of
available-for-sale financial
asset - - 412
Net financial income /
(expense) 11 394 (68 097) 20 958
Loss before tax (3 197) (95 475) (11 354)
Income tax (expense) / income 10 (582) 1 089 2 343
Loss for the period (3 779) (94 386) (9 011)
Other comprehensive income
Items that are or may be
reclassified subsequently to
profit or loss
Gain/(loss) on fair value
movements of available-for-
sale asset - 1 131 (1 525)
Tax on other comprehensive
income - (211) 285
Reclassified to profit or
loss - - (1 651)
Total other comprehensive
income / (loss) - 920 (2 891)
Total comprehensive loss for
the period (3 779) (93 466) (11 902)
Basic (loss) per share
(cents) 17 (0.23) (5.80) (0.55)
Diluted (loss) per share
(cents) 17 (0.23) (5.80) (0.55)
Headline (loss) per share
(cents) 17 (0.23) (5.80) (0.66)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Stated Share- Available (Accumu- Total
/ share based -for-sale lated
capital payment reserves loss)/
reserve retained
earnings
R’000 R’000 R’000 R’000 R’000
Balance at 1 January
2013 3 425 544 472 179 2 891 (264 282) 3 636 332
Other comprehensive
- - 920 - 920
income
Loss for the period - - - (94 386) (94 386)
- - 920 (94 386) (93 466)
Balance at 30 June
2013 3 425 544 472 179 3 811 (358 668) 3 542 866
Other comprehensive
income - - (3 811) - (3 811)
Profit for the period - - - 85 375 85 375
- - (3 811) 85 375 81 564
Transactions with
owners recorded
directly in equity
Transfer of share-
based payment reserve
to retained earnings - (472 179) - 472 179 -
- (472 179) - 472 179 -
Balance at 31
December 2013 3 425 544 - - 198 886 3 624 430
Loss for the period - - - (3 779) (3 779)
(3 779) (3 779)
Balance at 30 June
2014 3 425 544 - - 195 107 3 620 651
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Note Six months Six Year
ended months ended
June 2014 ended December
June 2013
2013
Reviewed Reviewed Audited
R’000 R’000 R'000
Cash flows utilised by
operating activities (26 460) (15 985) (19 734)
Finance income 12 141 29 449 19 731
Finance expense - (13 030) (666)
Taxation paid (3 908) (2 557) (2 557)
Taxation received - - 13 408
Cash (utilised) / generated
in operations (18 227) (2 123) 10 182
Cash flows utilised by
investing activities
Acquisition of property,
plant and equipment (314 282) (372 686) (829 673)
Available-for-sale investment
contributions - (1 629) (2 744)
Available-for-sale investment
receipts - - 20 162
Net cash outflow from
investing activities (314 282) (374 315) (812 255)
Cash flows from financing
activities
Interest-bearing borrowings
raised 1 066 250 1 022 460 1 022 460
Interest-bearing borrowings
repaid (1 063 000) - (847 250)
Net cash inflow from
financing activities 3 250 1 022 460 175 210
Net (decrease) / increase in
cash and cash equivalents (329 259) 646 022 (626 863)
Cash and cash equivalents at
the beginning of the period 865 149 1 492 012 1 492 012
Cash and cash equivalents at
the end of the period 535 890 2 138 034 865 149
Cash at end of year
comprises:
Cash balances 374 587 2 044 024 751 423
Less: Interest accrued (949) (1 179) (1 402)
Cash and cash equivalents 373 638 2 042 845 750 021
Restricted cash 162 252 95 189 115 128
Cash at the end of the period 535 890 2 138 034 865 149
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
For the six months ended 30 June 2014
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 2014 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 2013 are available upon
request from the Company’s registered office at Wesizwe House, Devcon
Park, 9 Autumn Road, Rivonia Ext 3, 2128 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 and the requirements of the Companies Act of South
Africa, No. 71 of 2008 and the Listings Requirements of the JSE
Limited. 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 2013. The condensed
consolidated interim financial information was approved by the
Board on 3 September 2014. 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 financial
statements for the year ended 31 December 2013.
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 2013.
During the six months ended 30 June 2014 management reassessed
its estimates in respect of:
- The investment in Maseve (note 7); and
- Mine closure and environmental rehabilitation obligation.
5. Going concern
The group’s cash resources at the reporting date of R375 million
(June 2013: R2.0 billion) together with the available drawdown
facility from the loan funding secured from CDB are sufficient,
based on current budgets, to conduct operations and develop the
Bakubung Mine Project up to the first quarter of 2017.
6. Property, plant and equipment
During the period under review an amount of R358.5 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, Constructi Mineral TOTAL
plant and on Rights
equipment Work-in-
progress
R’000 R’000 R'000 R'000
1 057
Opening balance 46 387 2 137 213 729 3 241 329
Acquisitions during
the period 5 881 352 578 - 358 459
Disposals - - - -
Depreciation (1 316) - - (1 316)
Closing balance 50 952 2 489 791 1 057 729 3 598 472
No additions have been made in respect of mineral rights during
the period under review.
7. Investment in equity-accounted investee
Six Six Year
months months ended
ended ended December
June June 2013
2014 2013 Audited
Reviewed Reviewed
R’000 R’000 R'000
Opening balance 920 750 919 515 919 515
Share of profit of
equity- accounted
investee 176 768 1 235
Closing balance 920 926 920 283 920 750
The Investment refers to the Group’s 21.3% (30 June 2013 and 31 December
2013: 22.5%) investment in Maseve Investments 11 (Pty) Ltd (“Maseve”) as
at 30 June 2014.
8. Restricted cash
Restricted cash covers the following guarantees:
Non-current:
- R77.6 million (June 2013: R10.3 million current) in favour of
Eskom for phase 1 and phase 2 bulk power supply to the
Bakubung Platinum Mine Project;
- R57 million (June 2013: R57 million current) guaranteed to
Aveng Mining Ltd for the mine shaft sinking project.
- R27 million (June 2013: R27 million current) in favour of the
DMR for environmental obligation;
Current:
- R0.6 million (June 2013: R0.9 million) guaranteed to the
landlord for the operating lease agreement;
9. Stated capital
Six months Six Year
ended months ended
June 2014 ended December
Reviewed June 2013
R’000 2013 Audited
Reviewed R’000
R’000
Authorised
2 000 000 000 no par value
ordinary shares (2013:
2 000 000 000 no par value
ordinary shares) - - -
Issued
1 627 827 058 no par value
ordinary shares (2013:
1 627 827 058 no par value
ordinary shares) 3 425 544 3 425 544 3 425 544
10. Taxation
Six Six Year
months months ended
ended ended December
June June 2013 2013
2014 Reviewed Audited
Reviewed
R’000 R’000 R'000
Current year - normal
taxation (6) - 430
Current year - deferred
taxation (576) 1 089 1 913
Total (582) 1 089 2 343
Reconciliation of effective
tax rate % % %
Standard tax rate 28.0 (28.0) 28.0
Non-taxable income - - 10.5
Non-deductible expenses (20.7) 1.3 (6.5)
Deferred tax asset not
raised (26.8) 26.9 (19.8)
Deferred tax asset reversed - - (3.5)
Share of profit of equity-
accounted investee 1.5 (1.1) 3.0
Prior year deferred tax
asset not raised - (0.2) -
CGT rate on disposal of
available-for-sale
financial asset - - 1.7
Under-provision prior year (0.2) - 7.2
Effective rate (18.2) (1.1) 20.6
11. Review Report
The condensed consolidated statement of financial position at 30
June 2014 and related condensed consolidated statement of profit
and loss and other 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 changes to the mineral resources for the six
months ended 30 June 2014.
14. Mine closure and environmental rehabilitation obligation
The change in the obligation is due to an increase in the
current cost rehabilitation. The additional obligation
recognised is R3.9 million and additional finance costs of R1.2
million were recognised.
15. Subsequent events
The Maseve Project arbitration has been finalised on 20 August
2014. Refer to the commentary on the Equity Accounted Investee
below.
16. Commitments
At 30 June 2014 the Group had commitments to the value of R1.0
billion. This amount includes the commitment in respect of the
shaft sinking agreement, which amounts to R0.8 billion (80% of
the total commitments). This amount will be incurred over the
next 4 years until June 2018, and payments are to be made on
physical progress.
17. (Loss) per share
Six months Six months Year ended
ended ended December
June 2014 June 2013 2013
Reviewed Reviewed Audited
The basis of calculation of
basic (loss) per share is:
Attributable (loss) to ordinary
shareholders (Rand) (3 779 364) (94 385 761) (9 011 003)
Weighted average number of
ordinary shares in issue
(shares) 1 627 827 058 1 627 827 058 1 627 827 058
Basic (loss) share (cents) (0.23) (5.80) (0.55)
The basis of calculation of
diluted (loss) per share is:
Attributable (loss) to ordinary
shareholders (Rand) (3 779 364) (94 385 761) (9 011 003)
Weighted average number of
ordinary shares in issue
(shares) 1 627 827 058 1 627 827 058 1 627 827 058
Diluted (loss) per share
(cents) (0.23) (5.80) (0.55)
The basis of calculation of
headline (loss) per share is:
Attributable (loss) to ordinary
shareholders (Rand) (3 779 364) (94 385 761) (9 011 003)
Adjustments: - (70 175) (1 710 621)
Profit on disposal of property,
plant and equipment - (70 175) (50 526)
Profit on disposal of
available-for-sale financial
asset - - (1 677 609)
Loss on scrapping of property,
plant and equipment - - 17 514
Headline (loss) (Rand) (3 779 364) (94 455 936) (10 721 624)
Weighted average number of
ordinary shares in issue 1 627 827 058 1 627 827 058 1 627 827 058
(shares)
Headline and diluted headline
(loss) per share (cents) (0.23) (5.80) (0.66)
18. Contingencies
Wesizwe Platinum Limited is defending a claim brought by an
advisory firm. Although liability is not admitted, if the
defence against the claim is unsuccessful, then commission costs
could amount to R29.4 million.
Commentary
1. Financial overview
As the Group is currently in development phase of the Bakubung
Platinum Mine, it will not earn revenue until 2019, when the
concentrator plant is brought into production.
The loss for the six months under review is R3.8 million (compared
to a loss of R94.4 million for the same period in 2013) as set out
in the condensed consolidated statement of profit and loss and
other comprehensive income.
Administration expenses of R82.8 million include the following:
- Depreciation – R1.3 million (June 2013: R0.9 million);
- Professional fees – R27.5 million (June 2013: R5.0 million);
- Directors’ expenses – R6.8 million (June 2013: R4.4 million);
- Salaries and payroll related expenses – R34.0 million (June
2013: R22.6 million);
- Marketing expenses and investor relations – R1.6 million (June
2013: R1.1 million);
- Electricity and water – R8.0 million (June 2013: R2.8 million);
and
- Other administrative overheads – R3.6 million (June 2013: R8.8
million).
During the six months under review the administration expenses
increased by 80.8% compared to the corresponding period in 2013 as
a result of the ramp up of the Bakubung Platinum Mine project. The
R358.5 million that was capitalised to the cost of the mine,
included capitalised finance costs and capital project related
costs.
The basic loss per share for the period was 0.23 cents per share
(2013: 5.80 cents per share for the same period). The headline loss
per share was 0.23 cents per share (2013: 5.80 cents per share for
the same period).
2. Project funding
Wesizwe concluded and signed all Project Financing Agreements for
the US$650 million loan facility with CDB at the end of December
2013 and the first drawdown occurred in January 2014.
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 commence ore production early
in 2017 and concentrate by 2019. At a steady state, the mine will
produce 420,000 oz of 4E platinum group metals.
3.1. Safety and Health
As at the end of the reporting period, the project had achieved
550,787 fatality free shifts. The average number of people on site
for the period was 685. Unfortunately 9 lost time injuries (LTI’s)
were reported for the period under review, resulting in a lost time
injury frequency rate (LTIFR) for the period of 1.27. Management
continues its unwavering focus of improving the safety standards on
the project site.
3.2. Bakubung Platinum Mine Optimisation Study
As announced on 14 March 2014, the Wesizwe Board of Directors
approved the far reaching Mine Optimisation study results. The
objective of the study was to accommodate the ever changing working
environment in which we operate (increasing cost of operations and
low metal prices). Key drivers being the reduction of nominal
capital cost of the project and time to commissioning. The study
achieved its objectives in most key areas, inclusive of a 26-month
reduction in commissioning timeframe and a 20% increase of steady
state production to 420,000 oz 4E pa.
3.3. Main shaft
The 8.5 meter diameter Main shaft reached a depth of 581 meters
from shaft collar in the period under review.
3.4. Ventilation shaft
The Ventilation shaft reached a depth of 693 meters from shaft
collar at the end of the review period. Further to this, the
development of 69 level was initiated with 7.6 meters of
development achieved by the end of the period. Development of 69
level will focus on establishing 4 development ends, and the
establishment of the development to the first ore pass. Once the
initial development has been achieved, the shaft will return to
sinking.
3.5. Concentrator plant
The process plant feasibility study originally undertaken has been
substantially reviewed post the conclusion of definitive
concentrator test work done by Mintek. Following the Mintek work,
Wesizwe concluded a definitive feasibility study (DFS) in May 2014.
Wesizwe then undertook a number of engineering and process
optimisation and value engineering studies on the concentrator
plant DFS. This work is still underway. Further to this, Wesizwe
has initiated discussions with an industry player to possibly
acquire an existing concentrator plant, which would lead to
significant capital cost savings for the project.
3.6. 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.
3.6.1. Power
The Bakubung Project currently has a 20MVa supply from Eskom. The
available power has de-risked the mine from a power perspective
during its development phase till early 2016. The Phase 2 power
supply project, which was initiated in 2013, will be concluded to
supply the full power requirement of 60MVa. Phase 2 power supply
will come from the new 500MVa Ngwedi substation, currently under
construction. Eskom has confirmed the national importance of the
Ngwedi substation and Wesizwe is regularly appraised of the project
progress 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.
3.6.2. Water
Wesizwe successfully signed a long term Bulk Water Supply Agreement
with Magalies Water on the 19 June 2013. The three key water supply
projects making up the Pilanesburg South Water Supply Scheme
(PSWSS) are well underway, with all contracts currently in their
implementation/construction phase. The total capital cost of the
Scheme is around R270 million, inclusive of the cost associated
with the upgrade of the Pilanesburg North Scheme pump station
upgrade. Phase 1a, the 1016mm diameter main line has trenched 5.2km
with 2.8km of pipe being laid. The 600mm pipe Phase 1c, under the
direct control and management by Wesizwe and Maseve has lain 1.5km
of the total length of 8km. The third project, the two water
reservoirs are expected to go into construction phase in the second
half of 2014. Wesizwe remains confident that the current rate of
delivery on the Water related projects will not pose any threat to
the commissioning timing of the Bakubung Project. Wesizwe remains
part of the PSWSS Project Steering Committee, to ensure the
projects are delivered on time.
3.6.3. Housing project
Wesizwe is currently conducting a feasibility study on employee
housing which was initiated in February 2014. Wesizwe is currently
evaluating a number of housing site options in the local area.
Wesizwe’s preference is to partner with the local community in the
development of housing estates, and the use of land within the
surface lease area of the Bakubung Mining right. More recently,
Wesizwe has entered into discussions with one of the major platinum
producers in the Rustenburg area, to acquire a number of housing
units, which will assist in fast tracking the Wesizwe housing
programme.
Further to this, Wesizwe is developing a funding “blue print” for
the financing of the construction of housing units and related
infrastructure. 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 house 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.
3.7. Project expenditure and commitments to date
Total direct project capital expenditure to the end of June 2014
was R1.7 billion. Commitments remaining as at the end of the period
were R1.0 billion. The project is 19.3% complete relative to a
planned completion of 19.7%. The slight shortfall in percentage
completion relates to the shaft sinking rate which is behind
schedule. This situation has been addressed and positive results
are currently being achieved.
3.8. Stakeholder Relations
Maintaining good stakeholder relations and ensuring pro-active, 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 reviewing 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. Equity Accounted Investee
Wesizwe as at 30 June 2014 reflects a 21.3% interest in Maseve. As
previously reported in the 2013 consolidated financial statements
and in the SENS announcements of 12 October 2013 and 12 November
2013 Wesizwe has chosen not to fund its share of the equity funding
calls made by Maseve. A disagreement as to the calculation of the
resulting dilution of Wesizwe shareholding in Maseve was referred
to arbitration.
As announced on SENS on 22 August 2014, the arbitrator gave his
ruling on 20 August 2014 and this ruling is binding on both
parties. In terms of the ruling and with effect from the ruling
date, Africa Wide’s interest in Maseve will dilute, as a result of
the first cash call made in October 2013, to 21.2677% and will
further dilute to 17.0985% as a result of the second cash call made
in February 2014 once the new shares are issued in the second half
of the year. Africa Wide maintains a representation on the board of
Maseve and a result has significant influence on Maseve and Wesizwe
will continue to report Maseve on the equity accounted basis. A
dilution loss of R97.4 million will be recognised by year end.
Maseve is currently developing the WBJV Project 1 Platinum Mine. As
at 30 June 2014, the Maseve project is 78.7% held by Platinum Group
Metals Limited (PTM) and is managed by PTM. The project, at steady
state should produce 270,000 oz 4E platinum group metals. The mine
commissioning is planned for late 2015. The project is in its
second phase of development. As of the end of the review period the
North twin declines (North Mine) was developing six off-reef
development ends towards the first mining blocks. The South twin
declines are in mid stage development. The South declines are 1.8km
south of the North Mine. The surface infrastructure development is
progressing well, with the focus on the metallurgical Plant, Change
House and Stores construction.
Maseve 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, as indicated by PTM.
Board and management changes
Ms Molope resigned from the Wesizwe Board with effect from 1 July
2014.
Messrs Jikang Li and Barend van der Merwe resigned as members of
the audit and risk committee of the Company ("Audit Committee")
with effect from 18 July 2014. Mr. Jikang Li continues to serve on
the Board. Subsequent to his resignation from the Audit Committee,
Mr. Barend van der Merwe resigned from his position as a non-
executive director of the Board with effect from 11 August 2014.
Mr. Victor Thembinkosi Mabuza was appointed to the Board as an
independent non-executive director and chairman of the Audit
Committee of the Company with effect from 22 August 2014.
Johannesburg
5 September 2014
Sponsor:
PSG Capital Proprietary Limited
By order of the board:
Dawn Mokhobo (Chairman) Jianke Gao (Chief Executive Officer)
Wesizwe Platinum 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*#, TV Mabuza*
*Non Executive #Chinese
Company Secretary: V Mhlongo
Transfer Secretaries: Computershare Investor Services
(Proprietary) Limited, 70 Marshall street, Johannesburg, 2001, PO
Box 61051
Registered address: Wesizwe House, Devcon Park, 9 Autumn Road
Rivonia Ext 3, 2128, South Africa
Date: 05/09/2014 04:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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