Wrap Text
Audited consolidated financial statements for the year ended 31 December 2019
Buffalo Coal Corp.
Incorporated in Canada and the Republic of South Africa
(Registration number: 2011/011661/10)
Share code TSX Venture Exchange: BUF
Share code JSE Limited: BUC
ISIN: CA1194421014
(“Buffalo Coal Corp.” or “the Group” or “the Company”)
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
Introduction:
Buffalo Coal Corp. is a coal mining and supply company operating in South Africa. The Company is
primarily listed on the TSX Venture Exchange and has a secondary listing on the Alternative Exchange
operated by the JSE.
The Company owns 100% of the shares in Buffalo Coal Dundee Proprietary Limited (“BC Dundee”), a
South African company, with an interest in two operating coal mines in South Africa (“BC Dundee
Properties”). BC Dundee indirectly holds a 70% interest in the BC Dundee Properties through its 70%
interest in Zinoju Coal Proprietary Limited (“Zinoju”), which holds all of the mineral rights with respect
to the BC Dundee Properties. The remaining 30% interest in Zinoju is held by South African Black
Economic Empowerment partners.
The BC Dundee Properties comprises of the Aviemore anthracite mine ("Aviemore") and the Magdalena
bituminous mine ("Magdalena"). The Group is currently only engaged in underground coal mining at
Aviemore, having ceased its underground mining activities at Magdalena in the last quarter of 2018.
Operational review and results:
The audited consolidated financial statements of the Group for the year ended 31 December 2019, as
compared to the year ended 31 December 2018 (the “Comparative Period”), are set out below:
Year ended Year ended
December 31, December 31,
2019 2018 % Variance
Key financials R R
Revenue 398 968 089 758 517 462 47
Profit/(loss) from operations 73 970 476 (13 744 350) 638
Earnings/(loss) per share - basic and diluted 0.09 (0.16) 153
Headline earnings/(loss) per share - basic and diluted 0.10 (0.05) (*) 294
Normalized headline earnings/(loss) per share - basic
and diluted 0.10 (0.03) 431
(*) Restated
No dividends were declared or paid during the period under review or during the Comparative Period.
The Company’s auditors, McGovern Hurley LLP, issued an unqualified audit opinion within their
independent audit report for the year ended 31 December 2019, which includes the requisite disclosure
of a key audit matter in accordance with International Standards of Auditing. The full independent audit
report is included within the financial statements. An extract of the independent audit report, specifically
the aspect dealing with the key audit matter, reads as follows:
“Material uncertainty related to going concern
We draw attention to Note 2.1 in the consolidated financial statements, which indicates that as at
December 31, 2019, the Company’s current liabilities exceeded its current assets by ZAR430,287,683
and the Company continues to be in breach of certain covenants with respect to its borrowings. As
stated in Note 2.1, these events or conditions, along with other matters as set forth in Note 2.1, indicate
that material uncertainties exist that cast significant doubt on the Company’s ability to continue as a
going concern. Our opinion is not modified in respect of this matter.”
This short-form announcement is the responsibility of the Board, is only a summary of the information
in the full announcement and therefore does not contain full or complete details. Any investment
decisions by investors and/or shareholders should be based as a whole on consideration of the audited
consolidated financial statements for the year ended 31 December 2019, which may be downloaded
from:
https://senspdf.jse.co.za/documents/2020/jse/ISSE/buc/Dec2019.pdf
or the Company’s website at:
http://www.buffalocoal.co.za/investors
and may also be viewed, at no cost, at the registered office of the Company and the Johannesburg
office of its Designated Advisor, during ordinary business hours, for a period of 30 calendar days
following the date of this announcement.
Registered office:
First Floor, Building 1, Manhattan Office Park
16 Pieter Street
Highveld, Centurion
9 April 2020
Designated Advisor:
Questco Corporate Advisory Proprietary Limited
First Floor, Yellowwood House, Ballywoods Office Park, 33 Ballyclare Drive, Bryanston
Date: 09-04-2020 05:43:00
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