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Condensed Consolidated Interim Results for the Six Months Ended 31 December 2015
Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
Share code: BAU
ISIN: ZAE000145686
(“Bauba” or “the Company” or “the Group”)
Country of incorporation and domicilium: South Africa
www.bauba.co.za
Condensed consolidated interim results
for the six months ended 31 December 2015
Condensed consolidated statement of financial position
as at 31 December 2015
Unaudited Reviewed Audited
31 Dec 31 Dec 30 Jun
2015 2014 2015
Note R’000 R’000 R’000
Assets
Non–current assets 171 151 137 622 178 687
Intangible assets 167 211 136 972 169 365
Property, plant and
equipment 1 115 650 1 307
Deferred tax 2 825 – 8 015
Current assets 21 159 8 173 40 406
Inventory 3 084 – 5 998
Trade and other
receivables 4 526 770 1 300
Cash and cash equivalents 17 549 7 403 33 108
Total assets 192 310 145 795 219 093
Equity and liabilities
Equity 170 901 127 628 180 166
Stated share capital 550 402 508 744 550 402
Reverse asset acquisition
reserve (282 988) (282 988) (282 988)
Retained loss (95 437) (93 089) (88 390)
Non-controlling Interest (1 076) (5 039) 1 142
Current liabilities 21 409 18 167 38 927
Trade and other payables 7 510 18 167 6 119
Other financial
liabilities 5 13 899 – 32 808
Total equity and
liabilities 192 310 145 795 219 093
Net asset value per share
(cents) 45,1 33,7 47,53
Tangible net asset value
per share (cents) – (2,5) 2,85
Condensed consolidated statement of changes in equity
for the six month period ended 31 December 2015
Reverse Non–
Stated Acqui- Control-
share sition Retained ling Total
capital adjustment loss interest equity
R’000 R’000 R’000 R’000 R’000
Balance at
31 December
2014 508 744 (282 988) (93 089) (5 039) 127 628
Total
comprehensive
income for
the period – – 4 699 6 181 10 880
Profit for
the period – – 4 699 6 181 10 880
Issue of
shares 41 658 – – – 41 658
Balance at
30 June 2015 550 402 (282 988) (88 390) 1 142 180 166
Total
comprehensive
loss for the
period – – (7 047) (2 218) (9 265)
Loss for the
period – – (7 047) (2 218) (9 265)
Balance at
31 December
2015 550 402 (282 988) (95 437) (1 076) 170 901
Condensed consolidated statement of comprehensive income
for the six month period ended 31 December 2015
Unaudited Reviewed Audited
31 Dec 31 Dec 30 Jun
2015 2014 2015
Note R’000 R’000 R’000
Chrome ore revenue 69 477 – 40 901
Cost of sales (28 301) – (15 533)
Gross profit 41 176 – 25 368
Other Income – – 10
Operating and
administrative expenses (45 923) (4 627) (21 110)
Impairment of intangible
assets – – (6 286)
Finance income 671 33 289
Loss before taxation (4 076) (4 594) (1 729)
Taxation (5 189) – 8 015
(Loss)/profit for the
period (9 265) (4 594) 6 286
Other comprehensive
income – – –
Total comprehensive
(loss)/income (9 265) (4 594) 6 286
(Loss)/profit
attributable to:
Owners of the parent (7 047) (3 765) 934
Non-controlling interest (2 218) (829) 5 352
Total comprehensive
income/(loss) attributable to:
Equity holders (7 047) (3 765) 934
Non-controlling interests (2 218) (829) 5 352
Basic (loss)/earnings per
share (cents) 9 (1,9) (2,4) 0,34
Diluted basic
(loss)/earnings per share
(cents) 9 (1,9) (2,4) 0,34
Weighted average number
of shares (‘000) 9 379 020 159 926 272 172
Diluted weighted average
number of shares in issue
(‘000) 9 379 020 159 926 277 861
Number of shares in issue
at end of period (‘000) 379 020 379 020 379 020
Condensed consolidated statement of cash flow
for the six month period ended 31 December 2015
Unaudited Reviewed Audited
31 Dec 31 Dec 30 Jun
2015 2014 2015
R’000 R’000 R’000
Net cash generated from
operating activities 15 428 8 606 4 105
Net cash utilised in investing
activities (771) (925) (826)
Net cash (utilised
in)/available for financing
activities (30 216) (1 193) 28 914
Total cash movement for the
period (15 559) 6 488 32 193
Cash and cash equivalents at
beginning of the period 33 108 915 915
Cash and cash equivalents at
end of the period 17 549 7 403 33 108
Notes to the condensed consolidated interim results
for the period ended 31 December 2015
1. Basis of preparation
These condensed 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, 2008
(Act 71 of 2008), as amended (“the 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 period ended 31 December 2015 as were applied in
the preparation of the Group’s annual financial statements for the
year ended 30 June 2015.
These condensed consolidated financial statements have not been
reviewed or audited by the Company’s auditors.
2. Financial review
The Company was presented with substantial challenges during the
period under review. The price of chrome ore run of mine dropped
significantly in the latter part of 2015, causing the board of
directors to place the Moeijelijk operation under care and
maintenance. The Moeijelijk operation, which previously proved its
profitability in a lesser stressed resource market, will commence
production as soon as the price of chrome ore run of mine recovers
to economically viable levels.
The Group reported a loss attributable to the owners of the parent
of the Group for the period ended 31 December 2015 of R7,047
million resulting in a loss per share of 1,9 cents (2014: 2,4
cents). Headline loss per share for the period ended 31 December
2015 was 1,9 cents (2014: 2,4 cents). The weighted average number
of ordinary shares in issue for the period under review was 379
020 249 (2014: 159 926 000).
3. Dividends
No dividends were declared during the period under review.
4. Trade and other receivables
31 Dec 31 Dec 30 Jun
2015 2014 2015
R’000 R’000 R’000
Trade receivables 15 099 – 173
VAT – 673 942
Prepayments – – 88
Deposits and other 526 97 97
15 625 770 1 300
Less allowance for doubtful
accounts* (15 099) – –
526 770 1 300
* There is currently an uncertainty as to both the extent and date
of recovery regarding the aforesaid quantum as that trade debtor
is currently undergoing business rescue proceedings in terms of
the Companies Act.
5. Other financial liabilities (current)
31 Dec 31 Dec 30 Jun
2015 2014 2015
R’000 R’000 R’000
Provision for rehabilitation: 5 551 – 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 Metals
Proprietary Limited supplies the
Group with 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 at 30 June 2015
which was delivered during the
period under review.
Other 8 348 – 182
13 899 – 32 808
Current liabilities
At amortised cost 13 899 – 32 808
Non-current liabilities
At amortised cost – – –
6. Board
During the period under review, up to the date of this report, no
changes were made to the board of directors.
7. Operating segments
Chrome Platinum
project exploration Corporate Total
R’000 R’000 R’000 R’000
31 December 2015
Revenue 69 477 – – 69 477
Other income – – – –
Loss before tax (356) – (3 720) (4 076)
Taxation (5 189) – – (5 189)
Loss after tax (5 545) – (3 720) (9 265)
Interest received – – 671 671
Interest paid – – – –
Depreciation,
amortisation
and impairment 165 – 13 178
Total assets 154 983 20 161 17 166 192 310
Total liabilities (21 031) – (378) (21 409)
Chrome Platinum Corporate Total
project exploration
R’000 R’000 R’000 R’000
30 June 2015
Revenue 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)
31 December 2014
Revenue – – – –
Other income – – – –
Loss before tax 886) (289) (3 419) (4 594)
Taxation – – – –
Loss after tax (886) (289) (3 419) (4 594)
Interest received – – 33 33
Interest paid – – – –
Depreciation,
amortisation and
impairment – 2 20 22
Total assets 108 803 29 385 7 607 145 795
Total liabilities (16 261) (1 427) (479) (18 167)
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 2015 financial year. The
Group was reliant on one major customer in respect of the chrome
ore sales.
8. Changes in share capital
During the six month period ended 31 December 2015 no additional
share capital were issued.
9. Basic earnings per share
31 Dec 31 Dec 30 Jun
2015 2014 2015
R’000 R’000 R’000
Basic (loss)/earnings per
share (cents) (1,9) (2,4) 0,34
Diluted (loss)/earnings per
share (cents) (1,9) (2,4) 0,34
Headline (loss)/earnings per
share (cents) (1,9) (2,4) 2,65
Diluted headline
(loss)/earnings per share
(cents) (1,9) (2,4) 2,60
Weighted average number of
shares in issue ('000) 379 020 159 926 272 172
Diluted weighted average
number of shares in issue
('000) 379 020 159 926 277 861
Number of share in issue at
end of period ('000) 379 020 379 020 379 020
Adjustment to arrive at
headline (loss)/earnings:
Net (loss)/profit after
taxation for the period (7 047) (3 765) 934
Impairment of intangible
assets – – 6 285
Loss on sale of asset – – (8)
Headline (loss)/earnings (7 047) (3 765) 7 211
Headline earnings per share have been calculated in accordance
with SAICA Circular entitled Headline Earnings which forms part of
the Listings Requirements of the JSE Limited.
10. Events after the end of the reporting period
The last quarter of 2015 saw the market price of chrome ore
experience severe pressure with the price dropping from US$175 to
below US$100 per tonne. The adverse changes in the chrome ore
market, specifically those pertaining to price, have resulted in
the Company’s chrome project becoming financially unviable at
present. As a result thereof, the board of directors of Bauba has
decided to cease current operations and place the Moeijelijk Mine
under care and maintenance with effect from 11 January 2016. The
Moeijelijk Mine will remain under care and maintenance until
chrome ore prices recover and increase to levels sufficient to
justify the continuation of mining operations again. In addition
to the aforesaid, the continuation of Bauba’s key offtake
agreement with ASA Metals Proprietary Limited (“ASA”), which
flowed from the strategic relationship established with ASA in the
previous financial year, is currently uncertain as ASA commenced
business rescue proceedings in terms of the Companies Act during
February 2016. The board is currently exploring other potential
offtake agreements with third parties and is cautiously optimistic
that sufficient markets will be found for its chrome run of mine
product, once the mineral resources market stabilises and returns
to economically profitable levels.
11. Going concern
The financial period under review reflects a challenging financial
period. The post year-end results indicate an increase in revenues.
The overall net loss after tax for the period under review was
R9,265 million and the cash flow forecasts prepared by the
directors indicate that the Company will require additional
funding within the next 12 months in order to meet its commitments
as they fall due and to continue funding the Group expenditures.
These conditions indicate the existence of a material uncertainty
which may cast doubt about the Company’s ability to continue as a
going concern. The board, however, remains confident that
additional funding should be forthcoming. Though the board
appreciates that formalised funding commitments have not yet been
secured, 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 to
continue as a going concern.
30 March 2016
Johannesburg
Corporate information
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-executive)
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
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