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ARQ
ARQ
ARQ - Anooraq Resources Corporation - Condensed consolidated interim
financial statements three and six months ended 30 June 2011
Anooraq Resources Corporation
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ARQ
AMEX share code: A
ISIN: CA03633E1088
("Anooraq" or the "Company" or, together with its subsidiaries, the "Group")
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED 30 JUNE 2011
(Unaudited)
(Expressed in Canadian Dollars unless otherwise stated)
Condensed Consolidated Interim Statements of Financial Position
As at 30 June 2011
(Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
Audited
Note 30 June 2011 31 December
2010
Assets
Non-current assets
Property, plant and equipment 5 922,113,320 984,906,533
Capital work-in-progress 6 13,209,653 10,311,973
Intangible assets 7 2,744,463 3,280,056
Mineral property interests 13,271,299 13,716,383
Goodwill 12,461,161 13,185,952
Platinum producers` environmental 3,047,831 2,862,075
trust (restricted cash)
Other non-current assets 364,896 348,076
Total non-current assets 967,212,623 1,028,611,048
Current assets
Inventories 318,457 -
Trade and other receivables 28,530,133 36,190,110
Current tax receivable 154,271 163,244
Cash and cash equivalents 19,240,026 25,764,590
Restricted cash 1,329,607 1,377,263
Total current assets 49,572,494 63,495,207
Total assets 1,016,785,117 1,092,106,255
Equity and Liabilities
Equity
Share capital 71,967,083 71,852,588
Treasury shares (4,991,726) (4,991,726)
Convertible preference shares 162,910,000 162,910,000
Foreign currency translation reserve (9,582,534) (5,197,843)
Hedging reserve - (4,124,155)
Share-based payment reserve 22,907,685 22,032,571
Accumulated loss (207,446,417) (163,519,502)
Total equity attributable to equity 35,764,091 78,961,933
holders of the Group
Non-controlling interest 8,023,868 42,404,014
Total equity 43,787,959 121,365,947
Liabilities
Non-current liabilities
Loans and borrowings 8 756,021,476 622,534,699
Deferred taxation 180,191,355 208,805,557
Provisions 8,059,085 8,184,494
Derivative liability - 4,969,563
Total non-current liabilities 944,271,916 844,494,313
Current liabilities
Trade and other payables 27,806,542 31,844,332
Short-term portion of loans and 918,700 94,401,663
borrowings
Total current liabilities 28,725,242 126,245,995
Total liabilities 972,997,158 970,740,308
Total equity and liabilities 1,016,785,117 1,092,106,255
Approved by the Board of Directors on 15 August 2011
Condensed Consolidated Interim Statements of Comprehensive Loss
For the periods ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 June
2011 2010
Revenue 35,916,397 38,354,910
Cost of sales (56,204,989) (40,919,441)
Gross loss (20,288,592) (2,564,531)
Administrative expenses 10 (10,139,254) (3,609,512)
Transaction costs - (51,030)
Other income 3,947 (2,806)
Operating loss (30,423,899) (6,227,879)
Finance income 233,652 283,078
Finance expense (23,395,734) (17,336,496)
Net finance expense (23,162,082) (17,053,418)
Loss before income tax (53,585,981) (23,281,297)
Income tax 9,282,960 3,357,844
Loss for the period (44,303,021) (19,923,453)
Other comprehensive income/(loss)
Foreign currency translation (889,932) 314,175
differences for foreign operations
Effective portion of changes in fair 9,054 (444,297)
value of cash flow hedges
Reclassification to profit or loss 2,521,654 -
on settlement of cash flow hedge
Other comprehensive loss for the 1,640,776 (130,122)
period, net of income tax
Total comprehensive loss for the (42,662,245) (20,053,575)
period
Loss attributable to:
Owners of the Company (27,309,152) (10,825,637)
Non-controlling interest (16,993,869) (9,097,816)
Loss for the period (44,303,021) (19,923,453)
Total comprehensive loss
attributable to:
Owners of the Company (25,463,071) (11,055,662)
Non-controlling interest (17,199,174) (8,997,913)
Total comprehensive loss for the (42,662,245) (20,053,575)
period
Condensed Consolidated Interim Statements of Comprehensive Loss
For the periods ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Note Six months ended 30 June
2011 2010
Revenue
66,614,625 70,561,013
Cost of sales (102,440,742) (76,551,589)
Gross loss (35,826,117) (5,990,576)
Administrative expenses 10 (13,885,092) (6,281,150)
Transaction costs - (51,030)
Other income 54,238 82,617
Operating loss (49,656,971) (12,240,139)
Finance income 427,820 583,015
Finance expense (43,504,754) (27,596,502)
Net finance expense (43,076,934) (27,013,487)
Loss before income tax (92,733,905) (39,253,626)
Income tax 17,004,712 6,139,149
Loss for the period (75,729,193) (33,114,477)
Other comprehensive income/(loss)
Foreign currency translation
differences for foreign operations (6,962,559) (4,329,154)
Effective portion of changes in fair
value of cash flow hedges 1,602,501 (1,935,823)
Reclassification to profit or loss
on settlement of cash flow hedge 2,521,654 -
Other comprehensive loss for the
period, net of income tax (2,838,404) (6,264,977)
Total comprehensive loss for the (78,567,597) (39,379,454)
period
Loss attributable to:
Owners of the Company (43,926,915) (17,823,544)
Non-controlling interest (31,802,278) (15,290,933)
Loss for the period (75,729,193) (33,114,477)
Total comprehensive loss
attributable to:
Owners of the Company (44,187,451) (22,279,504)
Non-controlling interest (34,380,146) (17,099,950)
Total comprehensive loss for the (78,567,597) (39,379,454)
period
Condensed Consolidated Interim Statements of Changes in Equity
For the period ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the Company
Share Capital Treasury Convertible
Shares preference
shares
For the period ended 30
June 2010
Balance at 1 January 71,713,114 (4,991,726) 162,910,000
2010
Total comprehensive
income/(loss) for the
period
Loss for the period - - -
Other comprehensive
income/(loss)
Foreign currency - - -
translation differences
Effective portion of - - -
changes in fair value
of cash flow hedges,
net of tax
Total other - - -
comprehensive loss
Total comprehensive - - -
loss for the period
Transactions with
owners, recorded
directly in equity
Contributions by and
distributions to owners
Share-based payment - - -
transactions
Share issue 63,400 - -
Total contributions by 63,400 - -
and distributions to
owners
Balance at 30 June 2010 71,776,514 (4,991,726) 162,910,000
For the period ended 30
June 2011
Balance at 1 January 71,852,588 (4,991,726) 162,910,000
2011
Total comprehensive
income/(loss) for the
period
Loss for the period - - -
Other comprehensive
income/(loss)
Foreign currency - - -
translation differences
Effective portion of - - -
changes in fair value
of cash flow hedges,
net of tax
Reclassification to - - -
profit or loss on
settlement of cash flow
hedge
Total other - - -
comprehensive loss
Total comprehensive - - -
loss for the period
Transactions with
owners, recorded
directly in equity
Contributions by and
distributions to owners
Common shares issued 114,495 - -
Share-based payment - - -
transactions
Total contributions by 114,495 - -
and distributions to
owners
Balance at 30 June 2011 71,967,083 (4,991,726) 162,910,000
Condensed Consolidated Interim Statements of Changes in Equity
For the period ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the
Company
Foreign Share-based Hedging
currency payment reserve
translation reserve
reserve
reserve
For the period ended 30
June 2010
Balance at 1 January 2010 (9,390,899) 19,770,786 (731,293)
Total comprehensive
income/(loss) for the
period
Loss for the period - - -
Other comprehensive
income/(loss)
Foreign currency (2,534,578) - 14,441
translation differences
Effective portion of - - (1,935,823)
changes in fair value of
cash flow hedges, net
of tax
Total other comprehensive (2,534,578) - (1,921,382)
loss
Total comprehensive loss (2,534,578) - (1,921,382)
for the period
Transactions with owners,
recorded directly in
equity
Contributions by and
distributions to owners
Share-based payment - 926,037 -
transactions
Share issue - - -
Total contributions by and - 926,037 -
distributions to owners
Balance at 30 June 2010 (11,925,477) 20,696,823 (2,652,675)
For the period ended 30
June 2011
Balance at 1 January 2011 (5,197,843) 22,032,571 (4,124,155)
Total comprehensive
income/(loss) for the
period
Loss for the period - - -
Other comprehensive
income/(loss)
Foreign currency (4,384,691) - -
translation differences
Effective portion of - - 1,602,501
changes in fair value of
cash flow hedges, net of
tax
Reclassification to profit - - 2,521,654
or loss on settlement of
cash flow hedge
Total other comprehensive (4,384,691) - 4,124,155
loss
Total comprehensive loss (4,384,691) - 4,124,155
for the period
Transactions with owners,
recorded directly in
equity
Contributions by and
distributions to owners
Common shares issued - (51,495) -
Share-based payment - 926,609 -
transactions
Total contributions by and - 875,114 -
distributions to owners
Balance at 30 June 2011 (9,582,534) 22,907,685 -
Condensed Consolidated Interim Statements of Changes in Equity
For the period ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity
holders of the Company
Accumulated Total Non- Total
loss controlling
interest
For the
period ended
30 June 2010
Balance at 1 (111,798,092) 127,481,890 82,025,730 209,507,620
January 2010
Total
comprehensive
income/(loss)
for the
period
Loss for the (17,823,544) (17,823,544) (15,290,933) (33,114,477)
period
Other
comprehensive
income/(loss)
Foreign - (2,520,137) (1,809,017) (4,329,154)
currency
translation
differences
Effective - (1,935,823) - (1,935,823)
portion of
changes in
fair value of
cash flow
hedges,
net of tax
Total other - (4,455,960) (1,809,017) (6,264,977)
comprehensive
loss
Total (17,823,544) (22,279,504) (17,099,950) (39,379,454)
comprehensive
loss for the
period
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Share-based - 926,037 - 926,037
payment
transactions
Share issue - 63,400 - 63,400
Total - 989,437 - 989,437
contributions
by and
distributions
to owners
Balance at 30 (129,621,636) 106,191,823 64,925,780 171,117,603
June 2010
For the
period ended
30 June 2011
Balance at 1 (163,519,502) 78,961,933 42,404,014 121,365,947
January 2011
Total
comprehensive
income/(loss)
for the
period
Loss for the (43,926,915) (43,926,915) (31,802,278) (75,729,193)
period
Other
comprehensive
income/(loss)
Foreign - (4,384,691) (2,577,868) (6,962,559)
currency
translation
differences
Effective - 1,602,501 - 1,602,501
portion of
changes in
fair value of
cash flow
hedges,
net of tax
Reclassificat - 2,521,654 - 2,521,654
ion to profit
or loss on
settlement of
cash flow
hedge
Total other - (260,536) (2,577,868) (2,838,404)
comprehensive
loss
Total (43,926,915) (44,187,451) (34,380,146) (78,567,597)
comprehensive
loss for the
period
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Common shares - 63,000 - 63,000
issued
Share-based - 926,609 - 926,609
payment
transactions
Total - 989,609 - 989,609
contributions
by and
distributions
to owners
Balance at 30 (207,446,417) 35,764,091 8,023,868 43,787,959
June 2011
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 June
2011 2010
Cash flows from operating activities
Cash utilised by operations 9 (19,797,449) (2,080,046)
Interest received 186,561 255,232
Interest paid (3,030) -
Taxation paid - -
Cash utilised by operating (19,613,918) (1,824,814)
activities
Cash flows from investing activities
Acquisition of property, plant and - (1,961,027)
equipment
Acquisition of capital-work-in- 6 (6,714,422) (4,650,009)
progress
Acquisition of intangible assets 7 (244,595) -
Proceeds on disposal of property, - 47,002
plant and equipment
Investment in environmental trusts (300,028) (668)
Cash utilised by investing (7,259,045) (6,564,702)
activities
Cash flows from financing activities
Settlement of interest rate swap 8 (3,691,604) -
Funding loan raised - RPM 8 3,691,604 -
Long term borrowings raised - OCSF 23,722,587 10,906,147
Repayment of other loans (492,311) -
Common shares issued - -
Cash generated from financing 23,230,276 10,906,147
activities
Effect of foreign currency 91,474 143,380
translation
Net (decrease)/ increase in cash and (3,551,213) 2,660,011
cash equivalents
Cash and cash equivalents, beginning 22,791,239 28,032,481
of period
Cash and cash equivalents, end of 19,240,026 30,692,492
period
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Note Six months ended 30 June
2011 2010
Cash flows from operating activities
Cash utilised by operations 9 (21,590,854) (5,592,729)
Interest received 331,442 515,482
Interest paid (528,340) (12,754)
Taxation paid - (299,394)
Cash utilised by operating (21,787,752) (5,389,395)
activities
Cash flows from investing activities
Acquisition of property, plant and - (1,961,027)
equipment
Acquisition of capital-work-in- 6 (14,488,974) (8,884,890)
progress
Acquisition of intangible assets 7 (244,595) -
Proceeds on disposal of property, - 47,002
plant and equipment
Investment in environmental trusts (300,028) (668)
Cash utilised by investing (15,033,597) (10,799,583)
activities
Cash flows from financing activities
Settlement of interest rate swap 8 (3,691,604) -
Funding loan raised - RPM 8 3,691,604 -
Long term borrowings raised - OCSF 31,981,790 16,410,632
Repayment of other loans (492,311) -
Common shares issued 63,000 25,800
Cash generated from financing 31,552,479 16,436,432
activities
Effect of foreign currency (1,255,694) (502,473)
translation
Net (decrease)/ increase in cash and (6,524,564) (255,019)
cash equivalents
Cash and cash equivalents, beginning 25,764,590 30,947,511
of period
Cash and cash equivalents, end of 19,240,026 30,692,492
period
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
1. REPORTING ENTITY
Anooraq Resources Corporation (the "Company" or "Anooraq") is incorporated
in the Province of British Columbia, Canada. The condensed consolidated
interim financial statements of the Company as at and for the three and six
months ended 30 June 2011 comprise the Company and its subsidiaries
(together referred to as the "Group" and individually as "Group entities")
and the Group`s interests in associates and jointly controlled entities. Its
principal business activity is the mining and exploration of Platinum Group
Metals ("PGM") through its mineral property interests. The Company focuses
on mineral property interests located in the Republic of South Africa in the
Bushveld Complex. Anooraq operates in South Africa through its wholly-owned
subsidiary Plateau Resources (Proprietary) Limited ("Plateau") which
historically owned the Group`s various mineral property interests and
conducted the Group`s business in South Africa.
2. GOING CONCERN
The condensed consolidated financial statements are prepared on the basis
that the Group will continue as a going concern which contemplates the
realisation of assets and settlement of liabilities in the normal course of
operations as they become due.
As a result of the acquisition of the operating mine in 2009, the Group
secured various funding arrangements including securing a long-term credit
facility, the Operating Cash Flow Shortfall Facility ("OCSF"), with
Rustenburg Platinum Mines Limited ("RPM") for an amount of $209.8 million
(ZAR 1,470 million). The facility is used to fund operating cash and capital
requirements for an initial period of three years. As at 30 June 2011, the
Group utilised $123.8 million (ZAR 867.8 million), excluding interest,
thereof to fund operating requirements from 1 July 2009 as the mining
operations are not currently generating sufficient cash flows to fund
operations and operational projects. The Group has no obligation to repay
significant interest and capital on its outstanding loans and borrowings
during 2011 and 2012.
As a result of securing the financial resources and long-term funding,
management expects that cash flows from the mining operations and the OCSF
will be sufficient to meet immediate ongoing operating and capital cash
requirements of the Group.
3. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been prepared
in accordance with IAS 34 Interim Financial Reporting. They do not include
all of the information required for full annual financial statements, and
should be read in conjunction with the consolidated financial statements of
the Group as at and for the year ended 31 December 2010. The consolidated
financial statements of the Group as at and for the year ended 31 December
2010 are available upon request from the Company`s registered office at 82
Grayston Drive, Sandton, South Africa or at www.sedar.com.
4. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed consolidated
interim financial statements are the same as those applied by the Group in
its consolidated financial statements as at and for the year ended 31
December 2010, except for the following standards and interpretations,
applicable to the Group, adopted in the current financial period:
* IAS 24 (revised), Related Party Disclosures
* Various improvements to IFRS 2010
There was no significant impact on these condensed consolidated interim
financial statements as a result of adopting these standards and
interpretations.
5. PROPERTY, PLANT AND EQUIPMENT
Summary
Six months Year ended 31
ended 30 June December
2011 2010
Cost
Balance at beginning of period 1,032,647,854 707,131,018
Additions - 494,095
Transferred from capital work-in- 11,875,505 260,839,548
progress
Disposals (86,111) (544,766)
Adjustment to rehabilitation assets - 144,952
Effect of translation (56,669,851) 64,583,007
Balance at end of period 987,767,397 1,032,647,854
Accumulated depreciation and impairment
losses
Balance beginning of period 47,741,321 13,737,282
Depreciation for the period 20,446,821 31,397,522
Disposals (68,181) (499,587)
Effect of translation (2,465,884) 3,106,104
Balance at end of period 65,654,077 47,741,321
Carrying value 922,113,320 984,906,533
6. CAPITAL WORK-IN-PROGRESS
Capital work-in-progress consists of mine development and infrastructure
costs relating to the Bokoni mine and will be transferred to property, plant
and equipment when the relevant projects are commissioned.
Six months Year ended 31
ended 30 June December
2011 2010
Balance at beginning of period 10,311,973 235,838,915
Additions 14,488,974 28,193,472
Transfer to property, plant and (11,875,505) (260,839,548)
equipment
Capitalisation of borrowing costs 824,322 8,271,379
Impairment - (345,123)
Effect of translation (540,111) (807,122)
Balance at end of period 13,209,653 10,311,973
Capital work-in-progress is funded through cash generated from operations
and available loan facilities.
7. INTANGIBLE ASSETS
Six months Year ended 31
ended 30 June December
2011 2010
Cost
Balance at beginning of period 3,473,000 -
Additions 244,595 3,328,100
Effect of translation (189,000) 144,900
Balance at end of period 3,528,595 3,473,000
Accumulated amortisation and impairment
losses
Balance beginning of period 192,944 -
Amortisation for the period 597,154 180,039
Effect of translation (5,966) 12,905
Balance at end of period 784,132 192,944
Carrying value 2,744,463 3,280,056
8. LOANS AND BORROWINGS
Six months Year ended 31
ended 30 June December
2011 2010
Senior Term Loan Facility - 93,412,907
Capitalised transaction costs - (4,251,970)
Redeemable "A" preference shares 414,990,269 418,050,018
(related party)
Rustenburg Platinum Mines - Funding 186,570,439 89,370,192
loans (related party)
Rustenburg Platinum Mines - OCSF 146,782,575 111,208,925
(related party)
Rustenburg Platinum Mines - Interest 4,125,567 4,365,567
free loan (related party)
Rustenburg Platinum Mines - commitment 1,308,815 1,122,854
fees (related party)
Other 3,162,511 3,657,869
756,940,176 716,936,362
Short-term portion
Senior Term Loan Facility - (93,412,907)
Other (918,700) (988,756)
(918,700) (94,401,663)
Non-current liabilities 756,021,476 622,534,699
The carrying value of the Group`s loans and borrowings changed during the
period as follows:
Six months ended Year ended 31
30 June December
2011 2010
Balance at beginning of the period 716,936,362 555,509,417
Rustenburg Platinum Mine - OCSF 31,981,790 39,043,300
Rustenburg Platinum Mine - Interest - 599,442
free loan
Loans repaid - (590,537)
Loans repaid - other (492,311) -
Commitment fee capitalised (245,780) (640,086)
Finance expenses accrued 39,318,814 74,436,897
Funding loan raised - Rustenburg 3,691,604 -
Platinum Mine (related party)
Capitalisation transaction costs 3,968,918 -
written-off
Amortisation of loan costs 18,360 631,929
Commitment fee liability 245,780 640,086
Interest rate swap adjustment 355,852 (354,093)
Other - 3,328,100
Effect of translation (38,839,213) 44,331,907
Balance at end of the period 756,940,176 716,936,362
Short-term portion
Senior Term Loan Facility - (93,412,907)
Other (918,700) (988,756)
(918,700) (94,401,663)
Non-current portion 756,021,476 622,534,699
Senior Term Loan Facility
On 28 April 2011, the Senior Term Loan Facility with Standard Chartered Bank
("SCB") and FirstRand Bank acting through its division, Rand Merchant Bank
("RMB") was ceded to Anglo Platinum Limited ("Anglo") through its
subsidiary, Rustenburg Platinum Mines Limited ("RPM"). The outstanding
interest rate swap was settled with funding obtained from RPM.
The debt ceded to RPM has similar terms as the Senior Term Loan Facility
except for certain revisions. The revised terms of the loan is a reduction
in the interest rate from a 3 month JIBAR plus applicable margin (4.5%) and
mandatory cost (11.735% at 31 December 2010) to 3 month JIBAR plus 4%
(9.575% at 30 June 2011). The total facility has been increased from $107
million (ZAR 750 million) to $132.7 million (ZAR 930 million). The
commencement of re-payments has been deferred by one year from 31 January
2013 to 31 January 2014. RPM has also waived the loan covenants on the debt
until 30 June 2012.
Transaction costs capitalised of $4 million (ZAR 28 million) were written
off to finance expense on the cession of the Senior Term Loan Facility.
9. CASH (UTILISED BY)/GENERATED FROM OPERATIONS
Three months ended 30 June
2011 2010
Loss before income tax (53,585,981) (23,281,297)
Adjustments for:
Finance expense 23,395,734 17,336,496
Finance income (233,652) (283,078)
Non-cash items:
Depreciation and amortisation 10,841,854 6,134,925
Equity settled share-based compensation 510,294 453,497
Impairment of assets - 336,306
Loss/(profit) on disposal of property, 17,929 (5,077)
plant and equipment
Profit and loss impact of cash flow 2,673,963 -
hedge
Other - (50,959)
Cash utilised before working capital (16,379,859) 640,813
changes
Working capital changes
(Increase)/decrease in trade and other (5,701,111) (5,173,384)
receivables
Increase /(decrease) in trade and other 1,528,988 714,277
payables
Decrease/(increase) in inventories 754,533 1,738,248
Cash (utilised by)/generated from (19,797,449) (2,080,046)
operations
9. CASH (UTILISED BY)/GENERATED FROM OPERATIONS (Continued)
Six months ended 30 June
2011 2010
Loss before income tax (92,733,905) (39,253,626)
Adjustments for:
Finance expense 43,504,754 27,596,502
Finance income (427,820) (583,015)
Non-cash items:
Depreciation and amortisation 21,043,975 12,192,443
Equity settled share-based compensation 926,609 963,637
Impairment of assets - 336,306
Loss/(profit) on disposal of property, 17,929 (5,077)
plant and equipment
Profit and loss impact of cash flow hedge 2,640,465 -
Other - (150,540)
Cash utilised before working capital (25,027,993) 1,096,630
changes
Working capital changes
(Increase)/decrease in trade and other 6,314,527 (4,116,199)
receivables
Increase /(decrease) in trade and other (2,561,386) (3,232,222)
payables
Decrease/(increase) in inventories (316,002) 659,062
Cash (utilised by)/generated from (21,590,854) (5,592,729)
operations
10. ADMINISTRATION COSTS
Administration costs include the reclassification of the hedge reserve on
settlement of the interest rate swap. The amount expensed was $2.6 million
(ZAR18.6 million).
11. SEGMENT INFORMATION
The Group has two reportable segments as described below. These segments are
managed separately based on the nature of operations. For each of the
segments, the Group`s CEO (the Group`s chief operating decision maker)
reviews internal management reports monthly. The following summary describes
the operations in each of the Group`s reportable segments:
* Bokoni Mine - Mining of PGM`s.
* Projects - Mining exploration in Boikgantsho, Kwanda, and Ga-Phasha
exploration projects.
The majority of operations and functions are performed in South Africa. An
insignificant portion of administrative functions are performed in the
Company`s country of domicile.
The CEO considers earnings before net finance expense, income tax,
depreciation and amortisation ("EBITDA") to be an appropriate measure of
each segment`s performance. Accordingly, the EBITDA for each segment is
included in the segment information. All external revenue is generated by
the Bokoni Mine segment.
Six months ended 30 June
2011
Bokoni Mine Projects Total
Note
EBITDA (21,718,585) (546,032) (22,264,617) (i)
Total Assets 1,023,655,871 11,002,363 1,034,658,234 (ii)
Six months ended 30 June
2010
Bokoni Mine Projects Total
Note
EBITDA 1,978,836 (20,891) 1,957,945 (i)
Total Assets 1,004,266,950 11,708,140 1,015,975,090 (ii)
2011 2010
(i)EBITDA - six months ended
EBITDA for reportable segments (22,264,617) 1,957,945
Net finance expense (43,076,934) (27,013,487)
Depreciation and amortisation (21,043,975) (12,192,443)
Corporate and consolidation adjustments (6,348,379) (2,005,641)
Consolidated loss before income tax (92,733,905) (39,253,626)
EBITDA - three months ended
EBITDA for reportable segments (14,082,625) 1,163,749
Net finance expense (23,162,082) (17,053,418)
Depreciation and amortisation (10,841,854) (6,134,925)
Corporate and consolidation adjustments (5,499,420) (1,256,703)
Consolidated loss before income tax (53,585,981) (23,281,297)
(ii)Total assets
Assets for reportable segments 1,034,658,234 1,015,975,090
Corporate and consolidation adjustments (17,873,117) (10,458,596)
Consolidated total assets 1,016,785,117 1,005,516,494
12. SUBSEQUENT EVENTS
There have been no events that have occurred after the reporting date that
would have a material impact on the reported results.
13. EARNINGS PER SHARE
The basic and diluted loss per share for the three and six months ended 30
June 2011 was 6 cents (2010: 3 cents) and 10 cents (2010:4 cents)
respectively.
The calculation of basic loss per share for the three months ended 30 June
2011 of 6 cents (2010: 3 cents) is based on the loss attributable to owners
of the Company of $27,309,152 (2010: $10,825,637) and a weighted average
number of shares of 424,745,795 (2010: 424,658,123).
The calculation of basic loss per share for the six months ended 30 June
2011 of 10 cents (2010: 4 cents) is based on the loss attributable to owners
of the Company of $43,926,915 (2010: $17,823,544) and a weighted average
number of shares of 424,745,795 (2010: 424,658,123).
Share options were excluded in determining diluted weighted average number
of common shares as their effect would have been anti-dilutive.
14. HEADLINE AND DILUTED HEADLINE EARNINGS PER SHARE
Headline earnings per share is calculated by dividing headline earnings
attributable to shareholders of the Company by the weighted average number
of ordinary shares in issue during the period. Diluted headline earnings per
share is determined by adjusting the headline earnings attributable to
shareholders of the Company and the weighted average number of ordinary
shares in issue during the period, for the effects of all dilutive potential
ordinary shares, which comprise share options granted to employees.
Headline earnings per share
The calculation of headline loss per share for the three months ended 30
June 2011 of 6 cents (2010: 2 cents) is based on headline loss of
$27,291,223 (2010: $10,494,408) and a weighted average number of shares of
424,745,795 (2010: 424,658,123).
The calculation of headline loss per share for the six months ended 30 June
2011 of 10 cents (2010: 4 cents) is based on headline loss of $43,908,986
(2010: $17,492,315) and a weighted average number of shares of 424,745,795
(2010: 424,658,123).
The following adjustments to loss attributable to owners of the Company were
taken into account in the calculation of headline loss attributable to
owners of the Company:
Three months ended 30 June Six months ended 30 June
2011 2010 2011 2010
Loss (27,309,152) (10,825,637) (43,926,915) (17,823,544)
attributable to
shareholders of
the Company
Loss/(gain) on 17,929 (5,077) 17,929 (5,077)
disposal of
property, plant
and equipment
- Impairment - 336,306 - 336,306
Headline loss (27,291,223) (10,494,408) (43,908,986) (17,492,315)
attributable to
owners of the
Company
Diluted headline earnings per share
The calculation of diluted headline loss per share for the three months
ended 30 June 2011 of 6 cents (2010: 2 cents) is based on headline loss of
$27,291,223 (2010: $10,494,408) and a weighted average number of shares of
424,745,795 (2010: 424,658,123).
The calculation of diluted headline loss per share for the six months ended
30 June 2011 of 10 cents (2010: 4 cents) is based on headline loss of
$43,908,986 (2010: $17,492,315) and a diluted weighted average number of
shares of 424,745,795 (2010: 424,658,123).
At 30 June 2011, nil (2010: 125,111) share options were excluded in
determining diluted weighted average number of common shares as their effect
would have been anti-dilutive.
There are no reconciling items between headline loss and diluted headline
loss.
Date: 15/08/2011 14:00:01 Produced by the JSE SENS Department.
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employees and agents accept no liability for (or in respect of) any direct,
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