Wrap Text
Reviewed Condensed Consolidated Provisional Results
for the Year Ended 30 June 2015
Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
JSE share code: BAU
ISIN: ZAE000145686
(“Bauba” or “the Company” or “the Group”)
www.bauba.co.za
Reviewed condensed consolidated provisional results for the year
ended 30 June 2015
Condensed provisional consolidated statement of financial position
Reviewed Audited
30 June 30 June
2015 2014
Note R’000 R’000
Assets
Non-current assets 178 687 28 343
Property, plant and equipment 1 307 286
Intangible assets 9 169 365 28 057
Deferred tax 8 015 –
Current assets 40 406 1 278
Trade and other receivables 1 300 363
Cash and cash equivalents 33 108 915
Inventory 5 998 –
Total assets 219 093 29 621
Equity and liabilities
Equity 180 166 25 072
Share capital 550 402 401 594
Reverse asset acquisition reserve (282 988) (282 988)
Retained loss (88 390) (89 324)
Non-controlling interest 1 142 (4 210)
Current liabilities 38 927 4 549
Other financial liabilities 5 32 808 –
Trade and other payables 6 119 4 549
Total equity and liabilities 219 093 29 621
Condensed provisional consolidated statement of changes in equity
Stated Reverse
share acquisition Retained
capital adjustment loss
R’000 R’000 R’000
Balance at 30 June 2013 399 594 (282 988) (79 686)
Total comprehensive loss for
the year – – (9 638)
Issue of shares on reverse
acquisition 2 500 – –
Share issue expenses (500) - –
Balance at 30 June 2014 401 594 (282 988) (89 324)
Total comprehensive profit
for the year – – 934
Issue of additional shares 150 000 – –
Share issue expenses (1 192) – –
Balance at 30 June 2015 550 402 (282 988) (88 390)
Non-
controlling Total
interest equity
R’000 R’000
Balance at 30 June 2013 (1 359) 35 561
Total comprehensive loss for the year (2 851) (12 489)
Issue of shares on reverse acquisition – 2 500
Share issue expenses – (500)
Balance at 30 June 2014 (4 210) 25 072
Total comprehensive profit for the year 5 352 6 286
Issue of additional shares – 150 000
Share issue expenses – (1 192)
Balance at 30 June 2015 1 142 180 166
Condensed provisional consolidated statement of comprehensive income
Reviewed Audited
12 months 12 months
to 30 June to 30 June
2015 2014
Note R’000 R’000
Chrome ore revenue 40 901 –
Cost of sales (15 533) –
Gross profit 25 368 –
Other income 10 –
Operating and administrative
expenses (21 110) (8 489)
Impairment of intangible assets (6 286) (4 108)
Finance income 289 108
Loss before taxation (1 729) (12 489)
Taxation 8 015 –
Profit/(loss) for the year 6 286 (12 489)
Other comprehensive income – –
Total comprehensive profit/(loss) 6 286 (12 489)
Profit/(loss) attributable to:
Owners of the parent 934 (9 638)
Non-controlling interests 5 352 (2 851)
Total comprehensive profit/(loss)
attributable to:
Equity holders 934 (9 638)
Non-controlling interests 5 352 (2 851)
Basic earnings/(loss) per share
(cents) 11 0.34 (7.7)
Diluted earnings/(loss) per share
(cents) 11 0.34 (7.7)
Weighted average number of shares
(‘000) 11 272 172 125 162
Diluted weighted average number
of shares in issue (‘000) 11 277 861 125 162
Condensed provisional consolidated statement of cash flow
Reviewed Audited
30 June 30 June
2015 2014
R’000 R’000
Net cash generated/(utilised) in
operating activities 4 105 (4 795)
Cash flows from investing activities
Purchase of property, plant and
equipment (1 115) (13)
Investments in intangible assets – (1 610)
Interest received 289 108
Net cash utilised in investing
activities (826) (1 515)
Cash flows from financing activities
Proceeds on raising of new share capital – 2 500
Share issue expenses (1 192) (500)
Proceeds from other financial
liabilities 30 106 -
Net cash available from financing
activities 28 914 2 000
Total cash movement for the year 32 193 (4 310)
Cash and cash equivalents at the
beginning of the year 915 5 225
Cash and cash equivalents at end of the
year 33 108 915
Notes to the reviewed provisional condensed results
1. Basis of preparation
These condensed provisional consolidated financial statements have
been prepared by CH Gernandt (ACCA, CPA, CGA) in accordance with IAS
34: Interim Financial Reporting, International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”), SAICA Financial Reporting Guides as issued
by the Accounting Practices Committee, the Financial Reporting
Pronouncements as issued by the Financial Reporting Standards
Council, the requirements of the South African Companies Act and the
JSE Listings Requirements.
The same accounting policies, presentation and measurement principles
have been followed in the preparation of the condensed report for the
year ended 30 June 2015 as were applied in the preparation of the
group’s annual financial statements for the year ended 30 June 2014.
2. Financial review
In the year under review, Bauba underwent a positively significant
turnaround from a junior platinum explorer to a cash generating
chrome producer. This was as a result of the asset for shares
transaction approved by shareholders on 19 September 2014,
in which Bauba acquired the beneficial ownership of the chrome on the
farm Moeijelijk. The board of directors of Bauba (“the Board” or “the
Directors”) took the decision to focus on generating revenue from its
chrome operation and to reduce platinum exploration activities and
corresponding expenditure during the year under review. Since the
first blast in March 2015 the Company has achieved the targeted
production rate of 20 000 tonnes of chrome per month. In setting up,
Bauba established strategic relationships with ASA Metals Proprietary
Limited (“ASA”) as the offtake company and Zizwe Opencast Mining
Proprietary Limited as the chrome producer. The application for a
full scale Mining Right has been accepted by the Department of
Mineral Resources and is currently being processed. The Board is
optimistic about continued positive growth performance in earnings
for the 2016 financial year.
The Group reported a profit attributable to the parents of the Group
for the year ended 30 June 2015 of R0.934 million resulting in an
earnings per share of 0.34 cents (2014: (7.7) cents). Headline
earnings per share for the year was 2.65 cents (2014: (4.4) cents).
The weighted average number of ordinary shares in issue for the year
under review was 272 171 872 (2014: 125 162 000).
3. Auditor’s review conclusion
These condensed consolidated financial statements for the year ended
30 June 2015 have been reviewed by BDO South Africa Inc., who
expressed an unmodified review conclusion. A copy of the auditor’s
review report is available for inspection at the
Company’s registered office together with the financial statements
identified in the auditor’s report.
The auditor’s report does not necessarily report on all of the
information contained in these financial results. Shareholders are
therefore advised that in order to obtain a full understanding of the
nature of the auditor’s engagement they should obtain a copy of the
auditor’s report together with the accompanying financial information
from the Company’s registered office.
4. Dividends
No dividends were declared during the year under review.
5. Other financial liabilities (current)
30 June 30 June
2015 2014
R’000 R’000
Provision for rehabilitation: 2 520 –
Long-term environmental obligations are
based on the Group’s environmental plans.
Full provision is made based on the net
present value of the estimated cost of
restoring the environmental disturbance
that has occurred up to the reporting date.
Chrome ore credit facility 12 000 –
An amount was received as a credit
facility until ASA supplies the Group a
letter of credit. This amount will be
payable on the receipt of a letter of
credit from a registered South African bank.
Chrome ore advance receipt 18 106 –
The amount relates to an advance payment
for chrome ore produced but
not yet delivered at30 June 2015.
Other 182 –
32 808 –
Current liabilities
At amortised cost 32 808 –
Non-current liabilities
At amortised cost – –
6. Board
During the year under review, up to the date of this report, the
following resignations and appointments of Directors occurred:
Appointments
NPJ van der Hoven (Non-executive Chairman) – 30 May 2015
M Luyt (Independent Non-executive Director) – 30 May 2015
CH Gernandt (Financial Director) – 30 May 2015
NW van der Hoven (Executive Director) – 30 May 2015
Resignations
J Best (Independent Non-executive Director) – 30 May 2015
K Dicks (Independent Non-executive Director) – 30 May 2015
W Moolman (Financial Director) – 30 May 2015
K Mzondeki (Independent Non-executive Director) – 13 August 2015
The Board, with effect from 13 August 2015, consists of the following
Directors
NPJ van der Hoven – Non-executive Chairman
D Smith – Non-executive Director
Dr NM Phosa – Non-executive Director
S Dalamo - Independent Non-executive Director
M Luyt – Independent Non-executive Director
King V Thulare – Alternative Non-executive Director to Dr NM Phosa
S Caddy – Chief Executive Officer
CH Gernandt – Financial Director
NW van der Hoven – Executive Director
7. Operating segments
Chrome Platinum
project exploration Corporate Total
R’000 R’000 R’000 R’000
2015
Revenues 40 901 – – 40 901
Other income – – 10 10
Profit/(loss)
before tax 8 802 – (10 531) (1 729)
Taxation 8 015 – – 8 015
Profit/(loss) after
tax 16 817 – (10 531) 6 286
Interest received – – 289 289
Interest paid – – 1 1
Depreciation,
amortisation and
impairment 2 519 6 286 31 8 836
Total assets 188 335 20 161 10 596 219 093
Total liabilities (38 719) – (207) (38 926)
2014
Revenues – – – –
Other income – – – –
Loss before tax – (7 165) (5 324) (12 489)
Taxation – – – –
Loss after tax – (7 165) (5 324) (12 489)
Interest received – – 108 108
Interest paid – – – –
Depreciation,
amortisation and
impairment – 4 145 42 4 187
Total assets – 28 350 1 271 29 621
Total liabilities – (4 027) (522) (4 549)
The Bauba Group segmental analysis is based on the Moeijelijk Chrome
project, Platinum exploration and corporate activities. The
Moeijelijk chrome project commenced production in March 2015 and
started generating revenue within the year under review. The Group
was reliant on one major customer in respect of the chrome ore sales.
8. Changes in share capital
During the year, the Company issued 251 958 831 new shares in
order to acquire the Moeijelijk and Houtbosch rights. The issue of
the shares was detailed in the circular posted to Bauba shareholders
dated 22 August 2014 and is available on the Company’s website.
www.bauba.co.za.
9. Intangible assets
Accumulated
amortisation
and Carrying
Cost impairments value
R’000 R’000 R’000
2015
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 151 610 (2 406) 149 204
Exploration and evaluation
assets 182 165 (12 800) 169 365
2014
Platinum mineral rights 32 165 (4 108) 28 057
Chrome mineral rights – – –
Exploration and evaluation
assets 32 165 (4 108) 28 057
Opening Amor-
balance Additions tisation
R’000 R’000 R’000
Reconciliation
2015
Platinum mineral rights 26 447 – –
Chrome mineral rights 1 610 150 000 (2 407)
Exploration and
evaluation assets 28 057 150 000 (2 407)
2014
Platinum mineral rights 32 165 – –
Chrome mineral rights – – –
Exploration and
evaluation assets 32 165 – –
Impair-
ment Total
R’000 R’000
Reconciliation
2015
Platinum mineral rights (6 285) 20 162
Chrome mineral rights – 149 203
Exploration and evaluation assets (6 285) 169 365
2014
Platinum mineral rights (4 108) 28 057
Chrome mineral rights – –
Exploration and evaluation assets (4 108) 28 057
Based on the value in use calculations, the carrying values exceed
the recoverable amounts and the Directors are satisfied that an
impairment loss of R6 285 519 has been incurred.
10. Events after the end of the reporting period
The Directors are not aware of any significant matter or circumstance
arising since the end of the financial year, not otherwise dealt with
in this report or the financial statements, which significantly
affect the financial position of the Group or the results of its
operations to the date of this report.
11. Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing profit or loss
attributable to the ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the
year.
30 June 30 June
2015 2014
R’000 R’000
Basic earnings/(loss) per share
From operations (cents) 0.34 (7.7)
Basic earnings per share for the Bauba
Group was based on earnings/(loss) of 934 (9 638)
Weighted average number of ordinary
shares (’000) 272 172 125 162
Diluted basic earnings/(loss) per share
From operations (cents) 0.34 (7.7)
Profit/(loss) for the year attributable
to equity holders of the parent 934 (9 638)
Diluted weighted average number of
shares in issue (’000) 277 861 125 162
The after tax effect of interest on profit or loss to calculate
diluted earnings per share has not been adjusted as it is
insignificant.
30 June 30 June
2015 2014
R’000 R’000
Reconciliation of earnings to
headline earnings attributable to
equity holders of the parent:
Headline earnings/(loss) per share
(cents) 2.65 (4.4)
Reconciliation between earnings/(loss)
and headline earnings/(loss)
Basic earnings/(loss) 934 (9 638)
Adjusted for:
Impairment of intangible assets 6 285 4 108
Profit on sale of asset (8) –
Headline earnings/(loss) 7 211 (5 530)
Weighted average number of shares in
issue (’000) 272 172 125 162
Headline earnings/(loss) per share
(cents) 2.65 (4.4)
Diluted weighted average number of
shares in issue (’000) 277 861 125 162
Diluted headline earnings/(loss) per
share (cents) 2.60 (4.4)
The weighted average number of shares
for the purpose of diluted
earnings per share reconciles to
the weightedaverage number of shares
used in the calculation of basic earnings
per share as follows:
Weighted number of shares used in the
calculation of basic earnings per share 272 172 125 162
Additional weighted shares issued based 5 689 –
on suspensive conditions on the
acquisition of the Houtbosch
transaction
Weighted average number of shares
used in the calculation of diluted
earningsper share 277 861 125 162
12. Going concern
The financial year under review reflects a change in the operational
performance of the Group. The overall net profit after tax for the
full year under review was R6.287 million and the cash flow forecasts
prepared by the Directors indicate that the Group will be able to
meet its commitments as they fall due and it will be in a position to
continue funding the expenditure required to progress projects. The
Directors have a reasonable expectation, having regard to the current
status and the future strategy of the Company, that the Company has
sufficient resources to continue as a going concern and have
therefore concluded that it is appropriate to prepare the financial
statements on a going concern basis. Accordingly, the financial
statements do not include the adjustments that would result
if the Company was unable tocontinue as a going concern.
19 August 2015
Johannesburg
Corporate information
Bauba Platinum Limited
Country of incorporation and domicilium: South Africa
Postal address: PO Box 1658, Witkoppen 2068.
Tel no: +27 (011) 699 5720
Directors: NPJ van der Hoven# (Chairman), M Luyt*, SM Dolamo*, Dr NM
Phosa#, DS Smith#, King TV Thulare (Alternate), SJM Caddy, CH
Gernandt, NW van der Hoven
(#Non-executive, *Independent Non-executives)
Company Secretary:
Merchantec Proprietary Limited
Registered Office: Building 816/5, Hammets Crossing Office Park,
2 Selbourne Road, Fourways, Gauteng
Transfer Secretaries: Computershare Investor Services Proprietary
Limited, 70 Marshall Street, Marshalltown 2001, PO Box 61051,
Marshalltown 2107
Auditor: BDO South Africa Incorporated
Sponsor: Merchantec Capital
Date: 19/08/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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