| Tue 25 Mar 2008, 16:42 | | WEZ - Wesizwe Platinum Limited - Trading statement |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Trading statement
WESIZWE PLATINUM LIMITED
(Registration No. 2003/020161/06)
("the Company" or "Wesizwe")
JSE Code: WEZ
ISIN: ZAE000075859
Trading statement
In reviewing this trading statement shareholders are advised to take particular
cognisance of the fact that, as an exploration company, Wesizwe does not conduct
a cash generative business. Cash outflows are predominantly associated with
exploration expenditure and hence constitute an investment in the creation of
value the company`s underlying assets. The increase in the loss seen here
therefore signifies an increase in exploration expenditure and corporate
activity invested in creating this additional value.
This value is qualified and supported by the Pre-feasibility Study released in
March 2007 and the Bankable Feasibility Study that will be released on 31 March
2008. It is therefore important to appreciate that Wesizwe`s trading statement
is in line with many exploration companies which are not cash generative.
Accordingly, a review of the provisional financial results for the year ended 31
December 2007 by the directors has indicated that a basic and headline loss per
share of between 15 and 20 cents per share is expected. In the prior comparative
period the company reported a basic and headline loss per share of 5,29 cents.
This "loss" must consequently not be seen as a loss in the conventional
accounting sense of a negative differential between profit and loss, but rather
as investment in future value.
The increase in the basic and headline loss per share is mainly attributable to
share-based payment expenses of R62,2 million. Of this, R54,3 million arose as a
result of an IFRS 2 adjustment for the specific issue for cash of 30 million
shares to Vunani Capital (Pty) Limited, a black owned financial institution.
The increase in headline loss primarily reflects the enhanced levels of
operational expenditure geared towards the acceleration of the company`s very
aggressive exploration programme of the core asset, the Frischgewaagd-Ledig
Complex. This has resulted in a significant upgrading of the Company`s resource
inventory during the financial year, the completion of the 3D geoseismic survey
and the completion of the Bankable Feasibility Study, all of which were high
expenditure items.
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors. The release of the results
for the year ended 31 December 2008 is expected to be published on or about 31
March 2008.
25 March 2008
Sponsor
Investec Bank Limited
Date: 25/03/2008 16:42:49 Produced by the JSE SENS Department.
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