Wrap Text
Condensed Consolidated Results for the Six Month Period Ended 31 December 2016
Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
(“Bauba” or “the Company” or “the Group”)
JSE share code: BAU
ISIN: ZAE000145686
Condensed consolidated results for the six month period ended 31 December 2016
Condensed consolidated statement of comprehensive income
for the six month period ended 31 December 2016
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2016 2015 2016
R’000 R’000 R’000
Revenue 14 486 69 477 78 743
Cost of sales (20 162) (28 301) (29 191)
Gross profit (5 676) 41 176 49 552
Bad debt recovery 10 392 – –
Operating and administrative expenses (12 176) (45 923) (53 961)
Finance income 590 671 1 061
Loss before taxation (6 870) (4 076) (3 348)
Income tax 567 (5 189) (1 884)
Loss for the period (6 303) (9 265) (5 232)
Other comprehensive income – – –
Comprehensive loss for the period (6 303) (9 265) (5 232)
Loss attributable to:
Equity holders of the parent (5 674) (7 047) (6 406)
Non-controlling interest (629) (2 218) 1 174
Comprehensive loss attributable to:
Equity holders of the parent (5 674) (7 047) (6 406)
Non-controlling interest (629) (2 218) 1 174
Basic loss per share (cents) (1,50) (1,86) (1,69)
Diluted loss per share (cents) (1,50) (1,86) (1,69)
Weighted average number of shares ('000) 379 020 379 020 379 020
Diluted weighted average number
of shares ('000) 379 020 379 020 379 020
Number of shares in issue at the
end of the period ('000) 379 020 379 020 379 020
Headline earnings reconciliation:
Loss attributable to equity
holders of the parent (5 674) (7 047) (6 406)
Loss on sale of property, plant
and equipment – – 3
Headline loss (5 674) (7 047) (6 403)
Headline loss per share (cents) (1,50) (1,86) (1,69)
Diluted headline loss per share (cents) (1,50) (1,86) (1,69)
Condensed consolidated statement of financial position
as at 31 December 2016
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2016 2015 2016
Notes R’000 R’000 R’000
ASSETS
Non-current assets 169 013 171 151 171 410
Intangible assets 10 161 241 167 211 164 324
Property, plant and equipment 1 074 1 115 955
Deferred tax 6 698 2 825 6 131
Current assets 12 667 21 159 13 885
Inventory – 3 084 –
Tax receivable 476 – 476
Trade and other receivables 1 923 526 1 670
Cash and cash equivalents 10 268 17 549 11 739
Total assets 181 680 192 310 185 295
EQUITY AND LIABILITIES
Equity 168 699 170 901 174 934
Share capital 550 402 550 402 550 402
Reverse asset acquisition
reserve (282 988) (282 988) (282 988)
Share option reserve 68 – –
Retained loss (100 470) (95 437) (94 796)
Non-controlling interest 1 687 (1 076) 2 316
Non-current liabilities 5 552 – 5 552
Provision for rehabilitation 6 5 552 – 5 552
Current liabilities 7 429 21 409 4 809
Trade and other payables 3 520 7 510 1 052
Other financial liabilities 5 3 909 8 347 3 757
Provision for rehabilitation 6 – 5 552 –
Total equity and liabilities 181 680 192 310 185 295
Condensed consolidated statement of cash flow
for the six month period ended 31 December 2016
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2016 2015 2016
R’000 R’000 R’000
Net cash effects from operating
activities (1 157) 15 428 6 358
Net cash effects from investing
activities (314) (771) (1 196)
Investments in intangible asset (598) (1 442) (2 232)
Investments in property, plant
and equipment (306) – (25)
Interest received 590 671 1 061
Net cash effects from financing
activities – (30 216) (26 531)
Repayment of other financial
liabilities – (30 216) (26 531)
Total cash movement for the period (1 471) (15 559) (21 369)
Cash and cash equivalents at the
beginning of the period 11 739 33 108 33 108
Cash and cash equivalents at the
end of the period 10 268 17 549 11 739
Condensed consolidated statement of changes in equity
for the six month period ended 31 December 2016
Reverse
asset Non-
acqui- Share Re- control-
Share sition option tained ling Total
capital reserve reserve loss interest equity
R’000 R’000 R’000 R’000 R’000 R’000
Balance at
1 July 2015 550 402 (282 988) – (88 390) 1 142 180 166
Total comprehensive
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
Total comprehensive
profit for
the period – – – 641 3 392 4 033
Balance at
30 June 2016 550 402 (282 988) – (94 796) 2 316 174 934
Share-based
payment reserve
movement – – 68 – – 68
Total comprehensive
loss for the
period – – – (5 674) (629) (6 303)
Balance at
31 December
2016 550 402 (282 988) 68 (100 470) 1 687 168 699
Notes to the condensed consolidated interim results
for the six month period ended 31 December 2016
1. Basis of preparation
These condensed consolidated financial results have been prepared by Jonathan
Knowlden CA(SA), the financial director, 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 2016 as were applied in the preparation of the Group’s annual
financial statements for the year ended 30 June 2016.
These condensed consolidated financial results have not been reviewed or
audited by the Group’s auditors.
2. Financial review
The Group’s only operating mine, Moeijelijk, remained under care and maintenance
for the full period under review. These results, as such, reflect the Group
operating under substantial challenges. The price of chrome ore has returned
to economically viable levels and production at the Moeijelijk Mine was
restarted at the beginning of the 2017 calendar year.
The Group reported a loss attributable to equity holders of the parent for the
period ended 31 December 2016 of R5,674 million (2015: R7,047 million) resulting
in a loss per share of 1,50 cents (2015: 1,86 cents). Headline loss per share
for the period ended 31 December 2016 was 1,50 cents (2015: 1,86 cents).
3. Outlook
The Group has had a strong start to the calendar year since resuming production
at our Moeijelijk Mine, capitalising on favourable chrome ore prices. For the
first two months of the year, we have sold free-on-truck (FOT) approximately
20 000 metric tonnes (Mt) of LG6 chrome ore for a total sales consideration
(exclusive of VAT) of R72,9 million. Furthermore, we have contracted to sell
a further 10 000Mt of LG6 chrome ore from February’s production at an FOT price,
exclusive of VAT, of R3 187 per Mt, which is estimated to generate R31,9 million
in sales.
Our open cast production target for the six month period to year end 30 June
2017 remains unchanged at 105 000Mt.
Our underground mine plans are well advanced and first development is planned
to start, all things being equal, at the end of March 2017 with the build-up to
a stable monthly production of 30 000Mt of LG6 chrome ore expected to be
achieved before the end of the 2018 financial year. Our total estimated capital
expenditure for the development of the underground mine is R24,5 million.
4. Dividends
No dividends were declared during the period under review.
5. Other financial liabilities
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2016 2015 2016
R’000 R’000 R’000
Royalty taxes 2 921 – 2 849
The amount relates to royalty taxes due
according to the Mineral and Petroleum
Resources Royalty Act
Other 988 8 347 908
3 909 8 347 3 757
Current liabilities
At amortised cost 3 909 8 347 3 757
6. Provision for rehabilitation
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2016 2015 2016
R’000 R’000 R’000
Balance at the beginning of the year 5 552 2 520 2 520
Movement in provision during the period
recognised in profit or loss – 3 032 3 032
Balance at the end of the period 5 552 5 552 5 552
Due within one year or less – 5 552 –
Due after more than one year 5 552 – 5 552
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. The provision has been classified as a non-current liability due to the
Group’s chrome mine being placed under care and maintenance with rehabilitation
commencing once the mine resumes production.
The provision for rehabilitation was previously disclosed 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:
Appointment
JA Knowlden (Financial director) – 1 December 2016.
Resignation
CH Gernandt (Financial director) – 1 December 2016.
8. Operating segments
Chrome Platinum
project exploration Corporate Total
R’000 R’000 R’000 R’000
31 December 2016 (unaudited)
Revenue 14 486 – – 14 486
Loss before tax (2 140) – (4 730) (6 870)
Taxation 567 – – 567
Loss after tax (1 573) – (4 730) (6 303)
Interest received 39 – 551 590
Depreciation, amortisation
and impairment (3 860) – (8) (3 868)
Investment in
intangible assets 598 – – 598
Total assets 133 211 20 161 28 308 181 680
Total liabilities (12 409) – (572) (12 981)
31 December 2015 (unaudited)
Revenue 69 477 – – 69 477
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
Depreciation,
amortisation and
impairment* (3 761) – (13) (3 774)
Investment in
intangible assets 1 442 – – 1 442
Total assets 154 983 20 161 17 166 192 310
Total liabilities (21 031) – (378) (21 409)
30 June 2016 (audited)
Revenue 78 743 – – 78 743
Profit/(loss) before 4 820 – (8 168) (3 348)
tax
Taxation (1 884) – – (1 884)
Profit/(loss) after tax 2 936 – (8 168) (5 232)
Interest received – – 1 061 1 061
Depreciation,
amortisation and
impairment (7 605) – (27) (7 632)
Investment in
intangible assets 2 232 – – 2 232
Total assets 153 417 20 161 11 717 185 295
Total liabilities (10 130) – (231) (10 361)
* Depreciation, amortisation and impairment of R178 000 was incorrectly
disclosed in the December 2015 interim condensed consolidated results. The
correct amount of R3 774 000 has now been disclosed. This was only a prior
period disclosure error relating to this note and had no impact on the
statement of comprehensive income, statement of financial position or any
other note in these financial results.
The Group's 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
There were no changes to the issued share capital during the period under review.
10. Intangible assets
Accumulated
amortisation
and Carrying
Cost impairments value
R’000 R’000 R’000
31 December 2016 (unaudited)
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 154 440 (13 360) 141 080
Total mineral rights 184 995 (23 754) 161 241
31 December 2015 (unaudited)
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 153 052 (6 002) 147 050
Total mineral rights 183 607 (16 396) 167 211
30 June 2016 (audited)
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 153 842 (9 679) 144 163
Total mineral rights 184 397 (20 073) 164 324
Opening Amor- Closing
balance Additions tisation balance
R’000 R’000 R’000 R’000
Reconciliation
31 December 2016 (unaudited)
Platinum mineral rights 20 161 – – 20 161
Chrome mineral rights 144 163 598 (3 681) 141 080
Total mineral rights 164 324 598 (3 681) 161 241
31 December 2015 (unaudited)
Platinum mineral rights 20 161 – – 20 161
Chrome mineral rights 149 204 1 442 (3 596) 147 050
Total mineral rights 169 365 1 442 (3 596) 167 211
30 June 2016 (audited)
Platinum mineral rights 20 161 – – 20 161
Chrome mineral rights 149 204 2 232 (7 273) 144 163
Total mineral rights 169 365 2 232 (7 273) 164 324
11. Going concern
The period under review reflects a challenging six months. The overall net loss
after tax for the period under review was R6,303 million. Since resuming
production at the start of the 2017 calendar year, to the date of this report,
the Group has capitalised on the improved chrome ore prices and has generated
significant positive cash flows with a cash and cash equivalents balance of
R68,8 million and no interest-bearing borrowings. These results were made
possible by the cost reduction measures implemented while the mine was under
care and maintenance. The cash flow forecasts, prepared by the directors based
on current available information, indicate the Company will be able to meet its
commitments within the next 12 months as they fall due. 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 was unable to continue as a going concern.
13 March 2017
Johannesburg
Corporate information
Bauba Platinum Limited
Postal address: PO Box 1658, Witkoppen 2068
Tel no: +27 (011) 699 5720
Board of Directors
NPJ van der Hoven# (Chairman), M Luyt*, SM Dolamo*, Dr NM Phosa#, DS Smith*
King TV Thulare# (Alternate), NW van der Hoven, JA Knowlden
#Non-executive *Independent non-executive
Sponsor
Merchantec Capital
2nd Floor, North Block Hyde Park Office Tower, Corner 6th Road and Jan Smuts
Avenue, Hyde Park, Johannesburg, 2196
PO Box 41480, Craighall, 2024
Registered Office
Cube Workspace, 1 Wedgewood Link, Bryanston, Johannesburg, 2191, South Africa
Company Secretary
Merchantec Proprietary Limited
Transfer Secretaries
Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, 2196
PO Box 61051, Marshalltown, 2107
Auditors
BDO South Africa Incorporated
22 Wellington Road, Parktown, 2193
www.bauba.co.za
Date: 13/03/2017 03:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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