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Abridged Consolidated Results for the Year Ended 30 June 2016
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”)
ABRIDGED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2016
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016
Abridged Audited
12-months to 12-months to
30 June 2016 30 June 2015
Note R’000 R’000
Chrome ore revenue 78 743 40 901
Cost of sales (29 191) (15 533)
Gross Profit 49 552 25 368
Other Income - 10
Operating and administrative expenses (53 961) (21 110)
Impairment of intangible assets - (6 286)
Finance income 1 061 289
Loss before taxation (3 348) (1 729)
Taxation (1 884) 8 015
(Loss)/Profit for the year (5 232) 6 286
Other comprehensive income - -
Total comprehensive (loss)/profit (5 232) 6 286
(Loss)/Profit attributable to:
Owners of the parent (6 406) 934
Non-controlling interest 1 174 5 352
Total comprehensive (loss)/profit attributable to:
Owners of the parent (6 406) 934
Non-controlling interest 1 174 5 352
Basic (loss)/earnings per share (cents) 11 (1.69) 0.34
Diluted (loss)/earnings per share (cents) 11 (1.69) 0.34
Weighted average number of shares (‘000) 11 379 020 272 172
Diluted weighted average number of shares in 11
issue (‘000) 379 020 277 861
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016
Abridged Audited
30 June 2016 30 June 2015
Note R’000 R’000
Assets
Non-Current Assets 171 410 178 687
Property, plant and equipment 955 1 307
Intangible assets 10 164 324 169 365
Deferred tax 6 131 8 015
Current Assets 13 885 40 406
Trade and other receivables 1 670 1 300
Tax receivable 476 -
Cash and cash equivalents 11 739 33 108
Inventory - 5 998
Total Assets 185 295 219 093
Equity and Liabilities
Equity 174 934 180 166
Share capital 550 402 550 402
Reverse asset acquisition reserve (282 988) (282 988)
Retained loss (94 796) (88 390)
Non-controlling interest 2 316 1 142
Non-Current Liabilities 5 552 -
Provisions for rehabilitation 6 5 552 -
Current Liabilities 4 809 38 927
Other financial liabilities 5 3 757 30 288
Trade and other payables 1 052 6 119
Provision for rehabilitation - 2 520
Total Equity and Liabilities 185 295 219 093
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016
Stated share Reverse Retained loss Non-controlling Total equity
capital acquisition interest
adjustment
R’000 R’000 R’000 R’000 R’000
Balance at 30 June 2014 401 594 (282 988) (89 324) (4 210) 25 072
Total comprehensive profit for the year - - 934 5 352 6 286
Issue of additional shares 150 000 - - - 150 000
Share issue expenses (1 192) - - - (1 192)
Balance at 30 June 2015 550 402 (282 988) (88 390) 1 142 180 166
Total comprehensive loss for the year - - (6 406) 1 174 (5 232)
Balance at 30 June 2016 550 402 (282 988) (94 796) 2 316 174 934
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2016
Abridged Audited
30 June 2016 30 June 2015
R’000 R’000
Net cash generated in operating activities 6 358 4 105
Cash flows from investing activities
Purchase of property, plant and equipment (25) (1 115)
Investments in intangible assets (2 232) -
Interest received 1 061 289
Net cash utilised in investing activities (1 196) (826)
Cash flows from financing activities
Share issue expenses - (1 192)
Proceeds from other financial liabilities - 30 106
Repayment of other financial liabilities (26 531) -
Net cash (utilised)/available from financing activities (26 531) 28 914
Total cash movement for the year (21 369) 32 193
Cash and cash equivalents at the beginning of the year 33 108 915
Cash and cash equivalents at end of the year 11 739 33 108
NOTES TO THE ABRIDGED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2016
1. BASIS OF PREPARATION
These abridged consolidated financial statements have been prepared by CH Gernandt (ACCA, CPA, CGA) in
accordance with the framework concepts and the measurements and recognition requirements of 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 and as a minimum contain the information required by IAS 34
Interim Financial Reporting.
The same accounting policies, presentation and measurement principles have been followed in the preparation
of the abridged report for the year ended 30 June 2016 as were applied in the preparation of the Group’s annual
financial statements for the year ended 30 June 2015 and comply with IFRS. The abridged results have been
compiled by the directors who take responsibility for this report.
2. FINANCIAL REVIEW
In the year under review, Bauba established itself as a chrome producer but due to severe pressure on commodity
prices the Group had to place its chrome project (“Moeijelijk 412KS”) under care and maintenance in
January 2016. The board of directors of Bauba (“the Board” or “the Directors”) is cautiously optimistic that the
chrome prices would recover by the last quarter of 2016 which would allow the Group to go back into production.
The Board’s focus for 2016 was mainly on generating revenue from its chrome operation and to reduce platinum
exploration activities and corresponding expenditure. A full scale Mining Right has also been granted by the
Department of Mineral Resources and the Board is optimistic about the continued positive growth performance
in earnings for the 2017 financial year.
The Group reported a loss attributable to the parents of the Group for the year ended 30 June 2016 of
R6.406 million resulting in a loss per share of 1.69 cents (2015: earnings per share of 0.34 cents). Headline loss per
share for the year was 1.69 cents (2015: headline earnings per share of 2.65 cents). The weighted average number
of ordinary shares in issue for the year under review was 379 020 249 (2015: 272 172 872).
3. AUDIT OPINION
BDO South Africa Incorporated has audited the Group’s annual financial statements and their unqualified audit
report is available for inspection at the Group’s registered office. This abridged report is extracted from audited
information, but is not itself audited.
4. DIVIDENDS
No dividends were declared during the year under review.
5. OTHER FINANCIAL LIABILITIES (CURRENT)
30 June 2016 30 June 2015
R’000 R’000
Chrome ore credit facility - 12 000
An amount was received as a credit facility until ASA
Metals Proprietary Limited 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 at 30 June 2015.
Royalty taxes 2 849 -
The amount relates to royalty taxes due according to the
Mineral and Petroleum Resources Royalty Act.
Other 908 182
3 757 30 288
Current liabilities
At amortised cost 3 757 30 288
Non-current liabilities
At amortised cost - -
6. PROVISIONS
30 June 2016 30 June 2015
R’000 R’000
Provision for Rehabilitation:
At 1 July 2 520 -
Movement in provision during the
year recognised in profit or loss 3 032 2 520
At 30 June 5 552 2 520
Current - 2 520
Non-current 5 552 -
5 552 2 520
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. This provision has been classified as a non-current liability in the current year due to the
Group’s chrome mine placed under care and maintenance with rehabilitation commencing once the mine
resumes production.
The provision for rehabilitation was previously included under other financial liabilities. This has now been
separately presented on the face of the statement of financial position for improved disclosure.
7. BOARD
During the year under review, up to the date of this report, the following changes were made to the Board of
Directors:
Change of roles:
NW van der Hoven (from Executive Director – Legal Compliance and New Business Development to Chief
Executive Officer) – 31 May 2016
Resignations:
S Caddy (Chief Executive Officer) – 31 May 2016
K Mzondeki (Independent Non-Executive Director) – 13 August 2015
CH Gernandt (Financial Director) – effective 1 December 2016
Appointments:
J Knowlden (Financial Director) – effective 1 December 2016
The Board, with effect from 1 December 2016, will consist of the following Directors:
NPJ van der Hoven – Non-Executive Chairman
D Smith – Independent Non-Executive Director
S Dalamo - Independent Non-Executive Director
M Luyt – Independent Non-Executive Director
Dr NM Phosa – Non-Executive Director
King V Thulare – Alternative non-Executive Director to Dr NM Phosa
NW van der Hoven – Chief Executive Officer
J Knowlden – Financial Director
8. OPERATING SEGMENTS
2016 Chrome project Platinum exploration Corporate Total
R'000 R'000 R'000 R'000
Revenue 78 743 - - 78 743
Profit/(loss) before tax 4 820 - (8 168) (3 348)
Taxation (1 884) - - (1 884)
Profit/(loss) after tax 2 936 - (8 168) (5 232)
Interest received - - 1 061 1 061
Depreciation, amortisation & impairment 7 605 - 27 7 632
Investment in Intangibles 2 232 - - 2 232
Total Assets 153 417 20 161 11 717 185 295
Total Liabilities (10 130) - (231) (10 361)
2015 Chrome project Platinum exploration Corporate Total
R'000 R'000 R'000 R'000
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 &
impairment 2 519 6 286 31 8 836
Total Assets 188 335 20 161 10 596 219 093
Total Liabilities (38 719) - (208) (38 927)
The Bauba group segmental analysis is based on the Moeijelijk chrome project, platinum exploration and corporate activities. The Group was reliant on one major
customer in respect of the chrome ore sales.
9. CHANGES IN SHARE CAPITAL
During the year, there were no changes to the company’s issued share capital.
10. INTANGIBLE ASSETS
Accumulated
amortisation and
Cost impairments Carrying Value
2016 R’000 R’000 R’000
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 153 842 (9 679) 144 163
Exploration and evaluation assets 184 397 (20 073) 164 324
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
Reconciliation
Opening balance Additions Amortisation Impairment Total
R’000 R’000 R’000 R’000 R’000
2016
Platinum mineral rights 20 162 - - - 20 162
Chrome mineral rights 149 203 2 232 (7 273) - 144 162
Exploration and 169 365 2 232 (7 273) - 164 324
evaluation assets
2015
Platinum mineral rights 26 447 - - (6 286) 20 161
Chrome mineral rights 1 610 150 000 (2 406) - 149 204
Exploration and 28 057 150 000 (2 406) (6 286) 169 365
evaluation assets
The Board has satisfied itself that an impairment loss of R6 285 519 in the 2015 financial year has been incurred
on the central cluster due to uneconomical qualities on the drilling results. Therefore, the board has not filed for
retention permits on this central cluster.
11. Earnings per share
Basic (loss)/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 2016 30 June 2015
R’000 R’000
Basic (loss)/earnings per share
From operations (cents) (1.69) 0.34
Basic (loss)/earnings per share for the Bauba Group was based
on (loss)/earnings of (6 406) 934
Weighted average number of ordinary shares (‘000) 379 020 272 172
Diluted basic (loss)/earnings per share
From operations (cents) (1.69) 0.34
(Loss)/profit for the year attributable to equity holders of the
parent (6 406) 934
Diluted weighted average number of shares in issue (‘000) 379 020 277 861
The after tax effect of interest on profit or loss to calculate diluted earnings per share has not been adjusted
as it is insignificant.
Reconciliation of earnings to headline (loss)/earnings attributable to equity holders of the parent:
30 June 2016 30 June 2015
R’000 R’000
Headline (loss)/earnings per share (cents) (1.69) 2.65
Reconciliation between (loss)/earnings and headline
(loss)/earnings
Basic (loss)/earnings (6 406) 934
Adjusted for:
Impairment of intangible assets - 6 285
Profit on sale of asset 3 (8)
Headline (loss)/earnings (6 403) 7 211
Weighted average number of shares in issue (‘000) 379 020 272 172
Headline (loss)/earnings per share (cents) (1.69) 2.65
Diluted weighted average number of shares in issue (‘000) 379 020 277 861
Diluted headline (loss)/earnings per share (cents) (1.69) 2.60
The weighted average number of shares for the purpose of diluted earnings per share reconciles to the
weighted average number of shares used in the calculation of basic earnings per share as follows:
30 June 2016 30 June 2015
(‘000) (‘000)
Weighted number of shares used in the calculation of basic
earnings per share 379 020 272 172
Additional weighted shares issued based on suspensive
conditions on the acquisition of the Houtbosch transaction - 5 689
Weighted average number of shares used in the calculation of
diluted earnings per share 379 020 277 861
12. EVENTS AFTER THE END OF THE REPORTING PERIOD
Shareholders are referred to the announcement released on SENS on 26 July 2016 wherein shareholders were
advised that on 24 March 2016, the Company announced that a provision had been made in the results for the
six months ended 31 December 2015 for an amount of approximately R15 million in respect of a doubtful debtor
(the Debtor). This provision arose from the delivery of approximately 20 000Mt of chrome ore to the Debtor, for
which the Company was not paid by the Debtor, who subsequently went into business rescue. The Group wrote
the debt off as unrecoverable in the year under review. After vigorous legal action, an agreement was entered
into with the Debtor, in terms of which the Company was entitled to recover approximately 17 300Mt of its chrome
ore product (Product) which had been delivered to the Debtor’s processing site.
On 15 August 2016 Bauba A Hlabirwa Mining Investments Proprietary Limited signed a contract selling the Product
at the Debtor’s site valued at R13 840 000 excluding VAT and has been settled in full for this sale. The shortfall will
remain part of the Company’s concurrent claim against the Debtor.
Apart from the statement above the directors are not aware of any other significant matter or circumstance
arising since the end of the financial year, not otherwise dealt with in this report or the annual financial statements,
which significantly affects the financial position of the Group or the results of its operations to the date of this
report.
13. GOING CONCERN
The financial year under review reflects a challenging year. The overall net loss after tax for the year was
R5,232 million. The cash flow forecasts prepared by the directors indicate that the Company will be able to meet
its commitments within the next 12 months as they fall due and to continue funding the Group expenditures. The
Company has sufficient resources to continue as a going concern and has 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 were unable to continue as a going concern.
14. DISTRIBUTION OF INTEGRATED ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the integrated annual report for the year ended 30 June 2016, was distributed to
shareholders today, 30 November 2016 and contains modifications to the reviewed condensed consolidated
provisional results published on SENS on 17 August 2016. Modifications have been made to operating and
administrative expenses, taxation and deferred tax, because of these changes there has been a resultant effect
on basic and diluted earnings per share.
Notice is hereby given that the annual general meeting of shareholders of Bauba will be held at 10:00 on
Wednesday, 25 January 2017 at the registered office of the Company at Cube Workspace, 1 Wedgewood Link,
Bryanston to transact the business stated in the notice of the annual general meeting, which is contained in the
integrated annual report.
The Board has determined that, in terms of section 62(3)(a), as read with section 59 of the Companies Act, 2008
(Act 71 of 2008), as amended, the record date for the purposes of determining which shareholders of the
Company are entitled to participate in and vote at the annual general meeting is Friday, 20 January 2017.
Accordingly, the last day to trade Bauba shares in order to be recorded in the Register to be entitled to vote will
be Tuesday, 17 January 2017.
30 November 2016
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
Web: www.bauba.co.za
Directors: NPJ van der Hoven# (Chairman), M Luyt*, SM Dolamo*, Dr NM Phosa#, DS Smith*, King TV Thulare
(Alternate), NW van der Hoven, CH Gernandt
(#Non-Executive, * Independent Non-Executives)
Company Secretary: Merchantec Proprietary Limited
Registered Office: Cube Workspace, 1 Wedgewood Link, Bryanston, Johannesburg, 2191, South Africa.
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: 30/11/2016 04:24:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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