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EPS
EPS
EPS - Eastern Platinum Limited - Condensed consolidated interim financial
statements of Eastern Platinum Limited June 30, 2011 (Unaudited)
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768551038
Share Code AIM: ELR ISIN: CA2768551038
Share Code JSE: EPS ISIN: CA2768551038
Condensed consolidated interim financial statements of Eastern Platinum Limited
June 30, 2011 (Unaudited)
Eastern Platinum Limited
June 30, 2011
Table of contents
Condensed consolidated interim income statements ........................... 3
Condensed consolidated interim statements of comprehensive loss ............ 4
Condensed consolidated interim statements of financial position ............ 5
Condensed consolidated interim statements of changes in equity ............. 6
Condensed consolidated interim statements of cash flows .................... 7
Notes to the condensed consolidated interim financial statements ........ 8-28
Condensed consolidated interim income statements
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)
Three months ended
June 30, June 30,
Note 2011 2010
Revenue $ 26,876 $ 36,612
Cost of operations
Production costs 31,156 26,855
Depletion and depreciation 8 5,259 5,528
36,415 32,383
Mine operating (loss) earnings (9,539) 4,229
Expenses
General and administrative 8 2,932 2,037
Share-based payments 15 46 13
2,978 2,050
Operating (loss) profit (12,517) 2,179
Other income (expense)
Interest income 1,413 421
Finance costs 17 (353) (593)
Foreign exchange gain (loss) 113 (36)
(Loss) profit before income taxes (11,344) 1,971
Deferred income tax recovery 471 548
Net (loss) profit for the period $ (10,873) $ 2,519
Attributable to
Non-controlling interest 16 $ (2,922) $ (929)
Equity shareholders of the Company (7,951) 3,448
Net (loss) profit for the period $ (10,873) $ 2,519
(Loss) earnings per share
Basic 18 $ (0.01) $ 0.01
Diluted 18 $ (0.01) $ 0.00
Weighted average number of common shares
outstanding in thousands
Basic 18 908,183 682,792
Diluted 18 908,183 693,988
Six months ended
June 30, June 30,
2011 2010
Revenue $ 62,578 $ 71,311
Cost of operations
Production costs 60,446 52,558
Depletion and depreciation 10,378 10,843
70,824 63,401
Mine operating (loss) earnings (8,246) 7,910
Expenses
General and administrative 6,027 5,233
Share-based payments 8,269 1,752
14,296 6,985
Operating (loss) profit (22,542) 925
Other income (expense)
Interest income 2,922 793
Finance costs (875) (963)
Foreign exchange gain (loss) 1,677 232
(Loss) profit before income taxes (18,818) 987
Deferred income tax recovery 593 1,096
Net (loss) profit for the period $ (18,225) $ 2,083
Attributable to
Non-controlling interest $ (4,641) $ (2,189)
Equity shareholders of the Company (13,584) 4,272
Net (loss) profit for the period $ (18,225) $ 2,083
(Loss) earnings per share
Basic $ (0.01) $ 0.01
Diluted $ (0.01) $ 0.01
Weighted average number of common shares
outstanding in thousands
Basic 908,099 682,000
Diluted 908,099 693,909
Condensed consolidated interim statements of comprehensive loss
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended
June 30, June 30,
2011 2010
Net (loss) profit for the period $ (10,873) $ 2,519
Other comprehensive income
Exchange differences on translating foreign operations 1,257 (27,398)
Exchange differences on translating
non-controlling interest (11) (364)
Comprehensive loss for the period $ (9,627) $ (25,243)
Attributable to
Non-controlling interest (2,933) (1,293)
Equity shareholders of the Company (6,694) (23,950)
Comprehensive loss for the period $ (9,627) $ (25,243)
Six months ended
June 30, June 30,
2011 2010
Net (loss) profit for the period $ (18,225) $ 2,083
Other comprehensive income
Exchange differences on translating foreign operations (472) (17,519)
Exchange differences on translating
non-controlling interest (203) (267)
Comprehensive loss for the period $ (18,900) $ (15,703)
Attributable to
Non-controlling interest (4,844) (2,456)
Equity shareholders of the Company (14,056) (13,247)
Comprehensive loss for the period $ (18,900) $ (15,703)
Eastern Platinum Limited
Condensed consolidated interim statements of financial position
as at June 30, 2011 and December 31, 2010
(Expressed in thousands of U.S. dollars - unaudited)
June 30, December 31,
Note 2011 2010
Assets
Current assets
Cash and cash equivalents 5 $ 76,159 $ 107,846
Short-term investments 251,614 242,446
Trade and other receivables 6 26,886 33,787
Inventories 7 7,852 8,832
362,511 392,911
Non-current assets
Property, plant and equipment 8 728,933 715,976
Refining contract 9 13,084 14,265
Other assets 10 8,810 3,823
$ 1,113,338 $ 1,126,975
Liabilities
Current liabilities
Trade and other payables 11 $ 26,965 $ 27,009
Finance leases 12 2,584 3,211
29,549 30,220
Non-current liabilities
Provision for environmental
rehabilitation 13 9,068 8,934
Deferred tax liabilities 44,538 46,642
83,155 85,796
Equity
Issued capital 15 1,219,969 1,219,869
Treasury shares 15(e) (334) -
Equity-settled employee benefits reserve 41,528 33,390
Foreign currency translation reserve 16,984 17,456
Deficit (250,348) (236,764)
Capital and reserves attributable to
equity shareholders of the Company 1,027,799 1,033,951
Non-controlling interest 16 2,384 7,228
1,030,183 1,041,179
$ 1,113,338 $ 1,126,975
Approved and authorized for issue by the Board on August 11, 2011.
"David Cohen" "Robert Gayton"
David Cohen, Director Robert Gayton, Director
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Condensed consolidated interim statements of changes in equity
(Expressed in thousands of U.S. dollars, except number of shares - unaudited)
Issued Treasury Equity- Foreign
capital shares settled currency
employee translation
benefits reserve
reserve
December 31, 2009 $ 890,150 $ - $ 32,336 $ (52,899)
Net profit (loss) - - - -
Currency translation
adjustment - - - (17,519)
Total comprehensive loss - - - (17,519)
Stock options exercised 726 - (344) -
Share-based payments - - 1,752 -
June 30, 2010 $ 890,876 $ - $ 33,744 $ (70,418)
Net profit (loss) - - - -
Currency translation adjustment - - - 87,874
Total comprehensive income - - - 87,874
Public offering 345,391 - - -
Share issuance costs (16,501) - - -
Stock options exercised 103 - (54) -
Share-based payments - - (300) -
December 31, 2010 $ 1,219,869 $ - $ 33,390 $ 17,456
Net loss - - - -
Currency translation adjustment - - - (472)
Total comprehensive loss - - - (472)
Stock options exercised 100 - (100) -
Share-based payments - - 8,190 -
Treasury shares - (334) 48 -
June 30, 2011 $ 1,219,969 $ (334) $ 41,528 $ 16,984
Deficit Capital and Non-controlling Equity
reserves interest
attributable to
equity
shareholders
of the Company
December 31, 2009 $ (250,116) $ 619,471 $ 10,041 $ 629,512
Net profit (loss) 4,272 4,272 (2,189) 2,083
Currency translation
adjustment - (17,519) (267) (17,786)
Total comprehensive loss 4,272 (13,247) (2,456) (15,703)
Stock options exercised - 382 - 382
Share-based payments - 1,752 - 1,752
June 30, 2010 $ (245,844) $ 608,358 $ 7,585 $ 615,943
Net profit (loss) 9,080 9,080 (1,386) 7,694
Currency translation
adjustment - 87,874 1,029 88,903
Total comprehensive income 9,080 96,954 (357) 96,597
Public offering - 345,391 - 345,391
Share issuance costs - (16,501) - (16,501)
Stock options exercised - 49 - 49
Share-based payments - (300) - (300)
December 31, 2010 $ (236,764) $ 1,033,951 $ 7,228 $ 1,041,179
Net loss (13,584) (13,584) (4,641) (18,225)
Currency translation
adjustment - (472) (203) (675)
Total comprehensive loss (13,584) (14,056) (4,844) (18,900)
Stock options exercised - - - -
Share-based payments - 8,190 - 8,190
Treasury shares - (286) - (286)
June 30, 2011 $ (250,348) $ 1,027,799 $ 2,384 $ 1,030,183
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended
June 30, June 30,
Note 2011 2010
Operating activities
(Loss) profit before income taxes $ (11,344) $ 1,971
Adjustments to net (loss) profit
for non-cash items
Depletion and depreciation 8 5,853 5,528
Refining contract amortization 9 407 367
Share-based payments 15 46 13
Interest income 17 (1,413) (421)
Finance costs 353 593
Foreign exchange (gain) loss (113) 36
Net changes in non-cash
working capital items
Trade and other receivables 7,858 2,153
Inventories 792 (211)
Trade and other payables (2,072) (148)
Cash generated from operations 367 9,881
Adjustments to net loss for cash items
Interest income received 1,023 389
Finance costs paid (2) (231)
Income taxes received (paid) 250 -
Net operating cash flows 1,638 10,039
Investing activities
Maturity (purchase) of
short-term investments 3,576 -
Purchase of other assets (4,304) (272)
Property, plant and
equipment expenditures (19,193) (6,416)
Net investing cash flows (19,921) (6,688)
Financing activities
Common shares issued for cash - exercise
of stock options - 339
Payment of finance leases (648) (626)
Net financing cash flows (648) (287)
Effect of exchange rate changes on cash and
cash equivalents (756) (154)
(Decrease) increase in cash and cash equivalents (19,687) 2,910
Cash and cash equivalents, beginning of period 95,846 3,370
Cash and cash equivalents, end of period $ 76,159 $ 6,280
Six months ended
June 30, June 30,
2011 2010
Operating activities
(Loss) profit before income taxes $ (18,818) $ 987
Adjustments to net (loss) profit
for non-cash items
Depletion and depreciation 10,972 10,843
Refining contract amortization 802 735
Share-based payments 8,269 1,752
Interest income (2,922) (793)
Finance costs 875 963
Foreign exchange (gain) loss (1,677) (232)
Net changes in non-cash
working capital items
Trade and other receivables 7,541 (1,655)
Inventories 754 (969)
Trade and other payables 356 (2,417)
Cash generated from operations 6,152 9,214
Adjustments to net loss for cash items
Interest income received 1,673 737
Finance costs paid (195) (247)
Income taxes received (paid) (33) -
Net operating cash flows 7,597 9,704
Investing activities
Maturity (purchase) of
short-term investments (1,495) 961
Purchase of other assets (4,995) (541)
Property, plant and equipment expenditures (33,516) (10,711)
Net investing cash flows (40,006) (10,291)
Financing activities
Common shares issued for cash - exercise of stock options - 382
Payment of finance leases (648) (628)
Net financing cash flows (648) (246)
Effect of exchange rate changes on cash and
cash equivalents 1,370 (136)
(Decrease) increase in cash
and cash equivalents (31,687) (969)
Cash and cash equivalents, beginning of period 107,846 7,249
Cash and cash equivalents, end of period $ 76,159 $ 6,280
See accompanying notes to the unaudited condensed consolidated interim financial
statements
Notes to the condensed consolidated interim financial statements
(Expressed in thousands of U.S. dollars, except number of shares and per share
amounts - unaudited)
1. Nature of operations
Eastern Platinum Limited (the "Company") is a platinum group metal ("PGM")
producer engaged in the mining, exploration and development of PGM properties
located in various provinces in South Africa.
Eastern Platinum Limited is a publicly listed company incorporated in Canada
with limited liability under the legislation of the Province of British
Columbia. The Company`s shares are listed on the Toronto Stock Exchange,
Alternative Investment Market, and the Johannesburg Stock Exchange.
The head office, principal address and records office of the Company are located
at 1075 West Georgia Street, Suite 250, Vancouver, British Columbia, Canada, V6E
3C9. The Company`s registered address is 1055 West Georgia Street, Suite 1500,
Vancouver, British Columbia, Canada, V6E 4N7.
2. Basis of preparation
These unaudited condensed consolidated interim financial statements, including
comparatives, have been prepared using accounting policies consistent with
International Financial Reporting Standards ("IFRS") and in accordance with
International Accounting Standard ("IAS") 34 Interim Financial Reporting.
The preparation of financial statements requires management to make judgments,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, and revenue and expenses. The estimates and
associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results
of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period or in the period of
the revision and further periods if the review affects both current and future
periods.
Judgments made by management in the application of IFRS that have a significant
effect on the financial statements and estimates with a significant risk of
material adjustment in the current and following fiscal years are discussed in
Notes 4(v) and 4(w) of the Company`s audited consolidated financial statements
for the year ended December 31, 2010.
3. Application of new and revised International Financial Reporting Standards
Effective January 1, 2011, the Company adopted new and revised International
Financial Reporting Standards ("IFRSs") that were issued by the International
Accounting Standards Board ("IASB"). The application of these new and revised
IFRSs has not had any material impact on the amounts reported for the current
and prior years but may affect the accounting for future transactions or
arrangements.
(a) Amendment to IAS 32 Financial Instruments: Presentation
Rights, options or warrants to acquire a fixed number of the Company`s equity
instruments for a fixed amount of any currency will be allowed to be classified
as equity instruments so long as the Company offers the rights, options or
warrants pro rata to all of the Company`s existing owners of the same class of
the Company`s non-derivative equity instruments.
3. Application of new and revised International Financial Reporting Standards
(continued)
(b) Amendments to IFRS 3 Business Combinations
Clarification that the contingent consideration arising in a business
combination previously accounted for in accordance with IFRS 3 that is
outstanding at the adoption date continues to be accounted for in accordance
with IFRS 3.
Limiting the accounting policy choice to measure non-controlling interests upon
initial recognition at fair value or at the non-controlling interest`s
proportionate share of the acquiree`s identifiable net assets to instruments
that give rise to a present ownership interest and that currently entitle the
holder to a share of net assets in the event of liquidation.
Expansion of the guidance with regards to the attribution of the market-based
measure of an acquirer`s share-based payment awards issued in exchange for
acquiree awards.
(c) Amendments to IAS 27 Consolidated and Separate Financial Statements
Clarification that the amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates, IAS 28 Investments in Associates, and IAS 31 Interests in Joint
Ventures resulting from IAS 27 should be applied prospectively, except for
amendments resulting from renumbering.
(d) Amendments to IFRS 7 Financial Instruments: Disclosures
Amendment to disclosure requirements, specifically, ensuring qualitative
disclosures are made in close proximity to quantitative disclosures in order to
better enable financial statement users to evaluate an entity`s exposure to
risks arising from financial instruments.
(e) Amendments to IAS 1 Presentation of Financial Statements
Clarification that the breakdown of changes in equity resulting from
transactions recognized in other comprehensive income is required to be
presented in the statement of changes in equity or in the notes to the financial
statements.
(f) Amendments to IAS 24 Related Party Disclosures
Amendment of the definition for related parties.
(g) Amendments to IAS 34 Interim Financial Reporting
Addition of further examples of events or transactions that require disclosure
and removal of references to materiality when discussing other minimum
disclosures.
4. Summary of significant accounting policies
The preparation of financial data is based on accounting principles and
practices consistent with those used in the preparation of the audited
consolidated financial statements as at December 31, 2010. The accompanying
unaudited condensed consolidated interim financial statements should be read in
conjunction with the Company`s audited consolidated financial statements for the
year ended December 31, 2010.
(a) Accounting standards issued but not yet effective
During the quarter ended June 30, 2011, four new standards were issued effective
for annual periods beginning on or after January 1, 2013.
(i) IFRS 10 Consolidated Financial Statements
IFRS 10 outlines the principles for the presentation and preparation of
consolidated financial statements.
(ii) IFRS 11 Joint Arrangements
IFRS 11 defines the two types of joint arrangements (joint operations and joint
ventures) and outlines how to determine the type of joint arrangement entered
into and the principles for accounting for each type of joint arrangement.
(iii) IFRS 12 Disclosure of Involvement with Other Entities
IFRS 12 outlines the disclosures required in order to provide users of financial
statements with the information necessary to evaluate an entity`s interest in
other entities, the corresponding risks related to those interests and the
effects of those interests on the entity`s financial position, financial
performance and cash flows.
(iv) IFRS 13 Fair Value Measurement
IFRS 13 defines fair value, summarizes the methods of determining fair value and
outlines the required fair value disclosures. IFRS 13 is utilized when another
IFRS standard requires or allows fair value measurements or disclosures about
fair value measurements.
(b) Accounting standards amended but not yet effective
During the quarter ended June 30, 2011, two standards were amended with the
amendments effective for annual periods beginning on or after January 1, 2013.
(i) IAS 27 Separate Financial Statements
IAS 27 outlines the accounting principles to be applied with regards to
investments in subsidiaries, joint ventures and associates when an entity elects
or is required by local regulations to present separate, non-consolidated,
financial statements. The previous standard was titled IAS 27 Consolidated and
Separate Financial Statements.
(ii) IAS 28 Investments in Associates and Joint Ventures
IAS 28 outlines the accounting treatment and corresponding application of the
equity method of accounting in investments in associates and joint ventures. The
previous standard was titled IAS 28 Investments in Associates.
The Company has not early adopted these standards and is currently assessing the
impact that these standards will have on the consolidated financial statements.
IFRS 10, IFRS 11, IAS 27 and IAS 28 cannot be early adopted on a stand-alone
basis and may only be early adopted as a group along with IFRS 12. Early
adoption must be disclosed.
IFRS 12 disclosure is encouraged prior to adoption of the standard. This early
disclosure does not require the entity to apply IFRS 10, IFRS 11, IAS 27 or IAS
28. IFRS 13 may be early adopted on a stand-alone basis so long as this fact is
disclosed and the standard is applied prospectively as at the beginning of the
annual reporting period in which the standard is initially applied.
5. Cash and cash equivalents
Cash and cash equivalents are comprised of:
June 30, December 31,
2011 2010
Cash in bank $ 74,423 $ 102,654
Short-term money market instruments 1,736 5,192
$ 76,159 $ 107,846
6. Trade and other receivables
Trade and other receivables are comprised
of the following:
June 30, December 31,
2011 2010
Trade receivables $ 19,636 $ 30,142
Current tax receivable 1,159 1,283
Other receivables 6,377 2,556
Allowance for doubtful debts for
other receivables (286) (194)
$ 26,886 $ 33,787
7. Inventories
June 30, December 31,
2011 2010
Consumables $ 6,212 $ 6,607
Ore and concentrate 742 477
Chrome inventory 898 1,748
$ 7,852 $ 8,832
Production costs for the three and six months ended June 30, 2011 was $31,156
and $60,446 (June 30, 2010 - $26,855 and $52,558), respectively. Production
costs represent the cost of inventories sold during the period. For the three
months and six months ended June 30, 2011 and 2010, production costs did not
include any amounts with regards to the write-down of inventory to net
realizable value or with regards to the reversal of write-downs.
At June 30, 2011 and December 31, 2010, no inventories have been pledged as
security for liabilities.
8. Property, plant and
equipment
Mineral Mineral
Plant and Plant and properties properties
equipment equipment being not being
owned leased depleted depleted
Cost
Balance as at December
31, 2009 $ 426,223 $ 6,132 $ 136,100 $ 546,122
Assets acquired 32,444 - - 261
Foreign exchange movement 56,520 768 17,040 58,901
Balance as at December
31, 2010 $ 515,187 $ 6,900 $ 153,140 $ 605,284
Assets acquired 33,501 - - 15
Foreign exchange movement (12,506) (175) (3,893) (7,163)
Balance as at June 30,
2011 $ 536,182 $ 6,725 $ 149,247 $ 598,136
Accumulated depreciation
and impairment losses
Balance as at December
31, 2009 $ 126,944 $ 3,691 $ 20,765 $ 342,322
Depreciation 15,452 1,244 5,676 -
Foreign exchange movement 17,574 598 3,224 42,862
Balance as at December
31, 2010 $ 159,970 $ 5,533 $ 29,665 $ 385,184
Depreciation 7,689 659 2,303 -
Foreign exchange movement (3,917) (128) (707) (9,804)
Balance as at June 30,
2011 $ 163,742 $ 6,064 $ 31,261 $ 375,380
Carrying amounts
At December 31, 2009 $ 299,279 $ 2,441 $ 115,335 $ 203,800
At December 31, 2010 $ 355,217 $ 1,367 $ 123,475 $ 220,100
At June 30, 2011 $ 372,440 $ 661 $ 117,986 $ 222,756
Residential Properties
properties and land TOTAL
Cost
Balance as at December 31, 2009 $ 10,071 $ 6,978 $ 1,131,626
Assets acquired 286 - 32,991
Foreign exchange movement 1,275 874 135,378
Balance as at December 31, 2010 $ 11,632 $ 7,852 $ 1,299,995
Assets acquired - - 33,516
Foreign exchange movement (297) (201) (24,235)
Balance as at June 30, 2011 $ 11,335 $ 7,651 $ 1,309,276
Accumulated depreciation and
impairment losses
Balance as at December 31, 2009 $ 2,296 $ 830 $ 496,848
Depreciation 135 - 22,507
Foreign exchange movement 302 104 64,664
Balance as at December 31, 2010 $ 2,733 $ 934 $ 584,019
Depreciation 321 - 10,972
Foreign exchange movement (68) (24) (14,648)
Balance as at June 30, 2011 $ 2,986 $ 910 $ 580,343
Carrying amounts
At December 31, 2009 $ 7,775 $ 6,148 $ 634,778
At December 31, 2010 $ 8,899 $ 6,918 $ 715,976
At June 30, 2011 $ 8,349 $ 6,741 $ 728,933
8. Property, plant and equipment
Kennedy`s
Vale Project
and Spitzkop
Crocodile Concentrator PGM Project
River Mine (a) (b) (c)
Cost
Balance as at December 31, 2009 $ 585,376 $ 400,017 $ 118,994
Assets acquired 32,728 - 47
Foreign exchange movement 76,470 50,082 7,316
Balance as at December 31, 2010 $ 694,574 $ 450,099 $ 126,357
Assets acquired 24,328 9,171 -
Foreign exchange movement (17,112) (11,421) 3,412
Balance as at June 30, 2011 $ 701,790 $ 447,849 $ 129,769
Accumulated depreciation and
impairment losses
Balance as at December 31, 2009 $ 154,417 $ 342,322 $ -
Depreciation 22,500 - -
Foreign exchange movement 21,796 42,861 -
Balance as at December 31, 2010 $ 198,713 $ 385,183 $ -
Depreciation 10,378 594 -
Foreign exchange movement (4,848) (9,804) -
Balance as at June 30, 2011 $ 204,243 $ 375,973 $ -
Carrying amounts
At December 31, 2009 $ 430,959 $ 57,695 $ 118,994
At December 31, 2010 $ 495,861 $ 64,916 $ 126,357
At June 30, 2011 $ 497,547 $ 71,876 $ 129,769
Other
Mareesburg property
Project plant and
(c) equipment TOTAL
Cost
Balance as at December 31, 2009 $ 27,111 $ 128 $ 1,131,626
Assets acquired 214 2 32,991
Foreign exchange movement 1,503 7 135,378
Balance as at December 31, 2010 $ 28,828 $ 137 $ 1,299,995
Assets acquired 15 2 33,516
Foreign exchange movement 881 5 (24,235)
Balance as at June 30, 2011 $ 29,724 $ 144 $ 1,309,276
Accumulated depreciation and
impairment losses
Balance as at December 31, 2009 $ - $ 109 $ 496,848
Depreciation - 7 22,507
Foreign exchange movement 1 6 64,664
Balance as at December 31, 2010 $ 1 $ 122 $ 584,019
Depreciation - - 10,972
Foreign exchange movement - 4 (14,648)
Balance as at June 30, 2011 $ 1 $ 126 $ 580,343
Carrying amounts
At December 31, 2009 $ 27,111 $ 19 $ 634,778
At December 31, 2010 $ 28,827 $ 15 $ 715,976
At June 30, 2011 $ 29,723 $ 18 $ 728,933
(a) Crocodile River Mine ("CRM")
The Company holds directly and indirectly 87.5% of CRM, which is located on the
eastern portion of the western limb of the Bushveld Complex. The Maroelabult and
Zandfontein sections are currently in production. Development of the Crocette
section recommenced on April 4, 2010.
(b) Kennedy`s Vale Project ("KV") and Concentrator
The Company holds directly and indirectly 87.5% of KV, which is located on the
eastern limb of the Bushveld Complex, near Steelpoort in the Province of
Mpumalanga.
It comprises PGM mineral rights on five farms in the Steelpoort Valley. The
development of this project was on hold as at June 30, 2011. However, the design
and construction of a concentrator located on the KV property has commenced. The
concentrator will initially be used to process ore from the Mareesburg Project.
(c) Spitzkop PGM Project and Mareesburg Project
The Company holds directly and indirectly a 93.4% interest in the Spitzkop PGM
Project and a 75.5% interest in the Mareesburg Project. The Company currently
acts as the operator of both the Mareesburg Platinum Project and Spitzkop PGM
Project, both located on the eastern limb of the Bushveld Complex. Planning for
the development of these projects recommenced in late 2010.
(d) Depreciation
Depreciation of $594 is included in general and administrative expenses for the
three months ended June 30, 2011. This depreciation pertains to assets which are
not currently being used for mining operations.
9. Refining Contract
During the year ended June 30, 2006, the Company acquired a 69% interest in
Barplats and assigned a portion of the purchase price to the off-take contract
governing the sales of Barplats` PGM concentrate production. The initial value
of the contract was $17,939. During the year ended June 30, 2007, the Company
acquired an additional 5% interest in Barplats resulting in an additional
allocation to the contract of $4,802 for a total aggregate value of $22,741.
During the year ended December 31, 2008, the Company acquired an additional
2.47% interest in Barplats. The acquisition did not affect the aggregate value
of the contract.
The value of the contract is amortized over the remaining term of the contract
which is 8.00 years as at June 30, 2011.
Cost
Balance as at December 31, 2009 $ 21,122
Foreign exchange movement 2,645
Balance as at December 31, 2010 $ 23,767
Foreign exchange movement (605)
Balance as at June 30, 2011 $ 23,162
Accumulated amortization
Balance as at December 31, 2009 $ 6,953
Amortization 1,513
Foreign exchange movement 1,036
Balance as at December 31, 2010 $ 9,502
Amortization 802
Foreign exchange movement (226)
Balance as at June 30, 2011 $ 10,078
Carrying amounts
At December 31, 2009 $ 14,169
At December 31, 2010 $ 14,265
At June 30, 2011 $ 13,084
10. Other assets
Other assets consists of a money market fund investment that is classified as
available-for-sale and serves as security for a guarantee issued to the
Department of Mineral Resources of South Africa in respect of the environmental
rehabilitation liability (Note 13). Changes to other assets for the six months
ended June 30, 2011 are as follows:
Balance, December 31, 2009 $ 2,282
Additional investment $ 955
Service fees (8)
Interest income 185
Foreign exchange movement 409
Balance, December 31, 2010 $ 3,823
Additional investment 4,925
Service fees (4)
Interest income 124
Foreign exchange movement (58)
Balance, June 30, 2011 $ 8,810
11. Trade and other payables
June 30, December 31,
2011 2010
Trade payables $ 11,845 $ 10,604
Accrued liabilities 9,915 10,240
Other 5,205 6,165
$ 26,965 $ 27,009
The average credit period of purchases is 1 month. The Company has financial
risk management policies in place to ensure that all payables are paid within
the pre-agreed credit terms.
12. Finance leases
Finance leases relate to mining vehicles with lease terms of 5 years payable
half yearly in advance. The Company has the option to purchase the vehicles for
a nominal amount at the conclusion of the lease agreements. The Company`s
obligations under finance leases are secured by the lessor`s title to the leased
assets. Interest is calculated at the South African prime rate plus 1%. The
finance leases are repayable in full in December 2011. The fair value of the
finance lease liabilities approximated carrying value.
(a) Minimum lease payments
June 30, December 31,
2011 2010
No later than 1 year $ 2,668 $ 3,405
Less: future finance charges (84) (194)
Present value of minimum
lease payments $ 2,584 $ 3,211
June 30, December 31,
2011 2010
No later than 1 year $ 2,584 $ 3,211
13. Provision for environmental rehabilitation
Although the ultimate amount of the environmental rehabilitation provision is
uncertain, the fair value of these obligations is based on information currently
available, including closure plans and applicable regulations. Significant
closure activities include land rehabilitation, demolition of buildings and mine
facilities and other costs.
The provision for environmental rehabilitation at June 30, 2011 is approximately
ZAR 61.2 million ($9,068). The provision was determined using an inflation rate
of 5.49% (December 31, 2010 - 5.49%) and an estimated life of mine of 20 years
for Zandfontein (December 31, 2010 - 20 years), 11 years for Maroelabult
(December 31, 2010 - 11 years), 14 years for Crocette (December 31, 2010 - 14
years), 1 year for Kennedy`s Vale (December 31, 2010 - 1 year) and 22 years for
Spitzkop (December 31, 2010 - 22 years). A discount rate of 8.29% was used
(December 31, 2010 - 8.29%). A guarantee of $8,810 (December 31, 2010 - $3,823)
has been issued to the Department of Mineral Resources (Note 10). The guarantee
will be utilized to cover expenses incurred to rehabilitate the mining area upon
closure of the mine. The undiscounted value of this liability is approximately
ZAR 215.4 million ($31,862).
Changes to the environmental rehabilitation provision are as follows:
Balance, December 31, 2009 $ 8,152
(961)
Revision in estimates
Interest expense (Note 17) 694
Foreign exchange movement 1,049
Balance, December 31, 2010 $ 8,934
Revision in estimates -
Interest expense (Note 17) 354
Foreign exchange movement (220)
Balance, June 30, 2011 $ 9,068
14. Commitments
The Company has committed to capital expenditures on projects of approximately
ZAR 199.6 million ($29,526) as at June 30, 2011 (December 31, 2010 - ZAR 86
million, $13,056).
15. Issued capital
(a) Authorized
- Unlimited number of preferred redeemable, voting, non-participating shares
without nominal or par value,
- Unlimited number of common shares with no par value.
(b) Issued and outstanding
Changes to the number of shares issued and outstanding are as follows:
June 30, 2011 December 31, 2010
Number of Number of
shares shares
Balance outstanding, beginning of period 907,589,567 680,893,325
Public offering - 224,250,000
Shares issued upon option exercise 598,240 2,446,242
Balance outstanding, end of period 908,187,807 907,589,567
(c) December 30, 2010 Public Offering
On December 30, 2010, the Company completed a public offering (the "Public
Offering"). The Public Offering consisted of 224,250,000 common shares, of which
195,361,476 common shares were sold at a price of Cdn$1.55 and 28,888,524 common
shares were sold at a price of GBP0.9568. Share issue costs of Cdn$16,501 were
incurred.
(d) Share options
The Company has an incentive plan (the "2011 Plan"), approved by the Company`s
shareholders at its annual general meeting held on June 9, 2011, under which
options to purchase common shares may be granted to its directors, officers,
employees and others at the discretion of the Board of Directors. Under the
terms of the 2011 Plan:
- 79 million common shares are reserved for issuance upon the exercise of
options, of which 18,684,497 remain available for issuance at June 30, 2011.
- All outstanding options at June 9, 2011 granted under the Company`s previous
plan (the "2008 Plan") will continue to exist under the 2011 plan provided that
the fundamental terms governing such options will be deemed to be those under
the 2008 Plan.
- Each option granted shall be for a term not exceeding five years from the date
of being granted and the vesting period is determined based on the discretion of
the Board of Directors. Vesting is dependent on continued employment with the
Company.
- The option exercise price is set at the date of the grant and cannot be less
than the closing market price of the Company`s common shares on the Toronto
Stock Exchange on the day immediately preceding the day of the grant of the
option.
- The 2011 Plan includes share appreciation rights providing for an optionee to
elect to exercise options and to receive an amount in common shares equal to the
difference between fair market value at the time of exercise and the exercise
price for the options exercised.
(i) Movements in share options during the period
The changes in share options during the six months ended June 30, 2011 and year
ended December 31, 2010 were as follows:
June 30, 2011 December 31, 2010
Weighted Weighted
average average
Number of exercise Number of exercise
options price options price
Cdn$ Cdn$
Balance outstanding,
beginning of period 57,976,836 1.52 59,575,834 1.48
Options granted 9,875,000 1.55 2,231,000 1.30
Options exercised (741,333) 0.32 (2,794,995) 0.33
Options forfeited (6,795,000) 1.69 (1,035,003) 1.82
Balance outstanding,
end of period 60,315,503 1.53 57,976,836 1.52
741,333 share options were exercised during the six months ended June 30, 2011.
The weighted average closing share price at the date of exercise was Cdn$1.66.
(ii) Fair value of share options granted in the period
The fair value of each option granted is estimated at the time of the grant
using the Black-Scholes option pricing model with weighted average assumptions
for grants as follows:
2011
March 25
Exercise price Cdn$1.55
Closing market price on day
preceding date of grant Cdn$1.38
Grant date share price Cdn$1.39
Risk-free interest rate 2.69%
Expected life 5
Annualized volatility 73%
Dividend rate 0%
Grant date fair value Cdn$0.82
2010
January 18
Exercise price Cdn$1.30
Closing market price on day
preceding date of grant Cdn$1.30
Grant date share price Cdn$1.42
Risk-free interest rate 1.73%
Expected life 3 years
Annualized volatility 83%
Dividend rate 0%
Grant date fair value Cdn$0.80
Exercise price for the March 25, 2011 option issuance is the December 30, 2010
public offering price. Exercise price for the January 18, 2010 option issuance
is the closing market price on the day preceding the date the options were
granted, as defined by the 2008 Plan.
Grant date share price is the closing market price on the day the options were
granted.
(iii) Share options outstanding at the end of the period
The following table summarizes information concerning outstanding and
exercisable options at June 30, 2011:
Remaining
Options Options Exercise Contractual
outstanding exercisable price Life (Years) Expiry date
Cdn$
250,000 250,000 1.70 0.41 November 27, 2011
19,987,500 19,987,500 1.82 0.69 March 7, 2012
13,782,001 13,782,001 0.32 2.47 December 18, 2013
400,000 400,000 0.52 3.00 June 30, 2014
95,002 45,000 0.76 3.34 November 3, 2014
2,226,000 2,226,000 1.30 3.56 January 18, 2015
9,875,000 9,875,000 1.55 4.74 March 25, 2016
13,070,000 13,070,000 2.31 6.27 October 5, 2017
460,000 460,000 3.38 6.65 February 20, 2018
170,000 170,000 3.38 6.74 March 27, 2018
60,315,503 60,265,501 3.16
The weighted average exercise price of options exercisable at June 30, 2011 is
Cdn$1.53.
(e) Key skills retention plan
In 2010, the Company`s South African subsidiary, Barplats Investments Limited
("BIL"), implemented a key skills retention plan for its senior employees in
South Africa, in response to the growing skills shortage in the country. The
purpose of the plan is to retain key employees, attract new employees as the
need arises and remain competitive with other South African mining companies.
The plan operates through a trust ("the Trust") which purchases shares of the
Company on behalf of the employees. These shares then vest to the employees over
time.
In February, 2011, the Trust purchased 198,563 shares pursuant to the plan which
resulted in a share-based payment expense of $43 and $80 in the three and six
months ended June 30, 2011, respectively, and a share-based payment liability of
$32 at June 30, 2011.
16. Non-controlling interest
The non-controlling interests are comprised of the following:
Balance, December 31, 2009 $ 10,041
Non-controlling interests` share of loss in Barplats (866)
Non-controlling interests` share of interest on advances to Gubevu (2,709)
Foreign exchange movement 762
Balance, December 31, 2010 $ 7,228
Non-controlling interests` share of loss in Barplats (3,271)
Non-controlling interests` share of interest on advances to Gubevu (1,370)
Foreign exchange movement (203)
Balance, June 30, 2011 $ 2,384
17. Finance costs
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
Interest on revenue advances $ 121 $ 138 $ 247 $ 257
Interest on finance leases 52 72 103 149
Interest on provision for
environmental rehabilitation 180 168 354 336
Interest on tax - 209 171 209
Other interest - 6 - 12
$ 353 $ 593 $ 875 $ 963
18. Earnings per share
The weighted average number of ordinary shares for the purposes of diluted
earnings per share reconciles to the weighted average number of ordinary shares
used in the calculation of basic earnings per share as follows:
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
(in thousands) (in thousands)
Weighted average number of
ordinary shares used in the
calculation of basic earnings
per share 908,183 682,792 908,099 682,000
Shares deemed to be issued
for no consideration in
respect of options - 11,196 - 11,909
Weighted average number of
ordinary shares used in the
calculation of diluted
earnings per share 908,183 693,988 908,099 693,909
The loss used to calculate basic and diluted earnings per share for the three
and six months ended June 30, 2011 was $7,951 and $13,584 (June 30, 2010 -
earnings of $3,448 and $4,272), respectively.
The following potential ordinary shares, outstanding at June 30, 2011, are anti-
dilutive and are therefore excluded from the weighted average number of ordinary
shares for the purposes of diluted earnings per share:
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
(in thousands) (in thousands)
Options 46,039 43,179 43,813 40,953
19. Retirement benefit plans
The Barplats Provident Fund is an independent, defined contribution plan
administered by Liberty Life Limited in South Africa. The costs associated with
the defined contribution plan included in net (loss) profit for the three and
six months were $1,087 and $2,110 (June 30, 2010 - $969 and $1,868),
respectively. The total number of employees in the plan at June 30, 2011 was
1,646 (June 30, 2010 - 1,804).
20. Related party transactions
Balances and transactions between the Company and its subsidiaries have been
eliminated on consolidation and are not disclosed in this note. Details of the
transactions between the Company and other related parties are disclosed below.
Eastern Platinum Limited
Notes to the condensed consolidated interim financial statements
(Expressed in thousands of U.S. dollars, except number of shares and per share
amounts - unaudited)
20. Related party transactions (continued)
(a) Trading transactions
The Company`s related parties consist of companies owned by executive officers
and directors as follows:
Nature of transactions
Andrews PGM Consulting Consulting
Buccaneer Management Inc. Management
Jazz Financial Ltd. Management
Maluti Services Limited General and administrative
Xiste Consulting Ltd. Management
The Company incurred the following fees and expenses in the normal course of
operations in connection with companies owned by key management and directors.
Expenses have been measured at the exchange amount which is determined on a
cost recovery basis.
Three months ended Six months ended
June 30, June 30, June 30, June 30,
Note 2011 2010 2011 2010
Consulting fees (i) $ 42 $ 36 $ 84 $ 65
General and administrative
expenses 37 42 55 62
Management fees 411 313 761 620
$ 490 $ 391 $ 900 $ 747
(i) The Company paid fees to a private company controlled by a director of the
Company for consulting services performed outside of his capacity as a director.
Amounts due to related parties are unsecured, non-interest bearing and due on
demand. Accounts payable at June 30, 2011 included $2 (December 31, 2010 -
$1,089) which was due to private companies controlled by officers of the
Company.
(b) Compensation of key management personnel
The remuneration of directors and other members of key management personnel
during the three and six months ended June 30, 2011 and 2010 were as follows:
Three months ended Six months ended
June 30, June 30, June 30, June 30,
Note 2011 2010 2011 2010
Salaries and
directors` fees (i) $ 705 $ 568 $ 1,352 $ 1,116
Share-based payments (ii) - - 7,996 1,627
$ 705 $ 568 $ 9,348 $ 2,743
(i) Salaries and directors` fees include consulting and management fees
disclosed in Note 20(a).
(ii) Share-based payments are the fair value of options granted to key
management personnel.
(iii) Key management personnel were not paid post-employment benefits,
termination benefits, or other long-term benefits during the three and six
months ended June 30, 2011 and 2010.
21. Segmented information
(a) Operating segment - The Company`s operations are primarily directed towards
the acquisition, exploration and production of platinum group metals in South
Africa.
(b) Geographic segments - The Company`s revenues and expenses by geographic
areas for the three and six months ended June 30, 2011 and 2010 and assets by
geographic areas as at June 30, 2011 and December 31, 2010 are as follows:
Three months ended June 30, 2011
Crocodile Kennedy`s
River Mine Vale Spitzkop
Current assets $ 33,799 $ 5,348 $ 1,863
Property, plant and equipment 497,547 71,876 129,769
Refining contract 13,084 - -
Other Assets 8,810 - -
$ 553,240 $ 77,224 $ 131,632
Property, plant and
equipment expenditures $ 10,022 $ 9,171 $ -
Revenue $ 26,876 $ - $ -
Production costs (31,156) - -
Depletion and depreciation (5,259) - -
General and administrative expenses (1,069) (690) 240
Share-based payment (46) - -
Interest income 334 18 -
Finance costs (306) (47) -
Foreign exchange gain (loss) 297 - -
(Loss) profit before income taxes (10,329) (719) 2 40
Deferred income tax recovery 471 - -
Net (loss) profit $ (9,858) $ (719) $ 240
Three months ended June 30, 2011
Total
South
Mareesburg Other Africa
Current assets $ 92 $ 882 $ 41,984
Property, plant and equipment 29,723 - 728,915
Refining contract - - 13,084
Other Assets - - 8,810
$ 29,815 $ 882 $ 792,793
Property, plant and equipment expenditures $ - $ - $ 19,193
Revenue $ - $ - $ 26,876
Production costs - - (31,156)
Depletion and depreciation - - (5,259)
General and administrative expenses (7) (1) (1,527)
Share-based payment - - (46)
Interest income - - 3 52
Finance costs - - (353)
Foreign exchange gain (loss) - - 2 97
(Loss) profit before
income taxes (7) (1) (10,816)
Deferred income tax recovery - - 4 71
Net (loss) profit $ (7) $ (1) $ (10,345)
Three months ended June 30, 2011
Barbados
and BVI Canada TOTAL
Current assets $ 1,365 $ 319,162 $ 362,511
Property, plant and equipment - 18 728,933
Refining contract - - 13,084
Other Assets - - 8,810
$ 1,365 $ 319,180 $ 1,113,338
Property, plant and equipment
expenditures $ - $ - $ 19,193
Revenue $ - $ - $ 26,876
Production costs - - (31,156)
Depletion and depreciation - - (5,259)
General and administrative expenses (33) (1,372) (2,932)
Share-based payment - - (46)
Interest income - 1,061 1,413
Finance costs - - (353)
Foreign exchange gain (loss) - (184) 113
(Loss) profit before income taxes (33) (495) (11,344)
Deferred income tax recovery - - 471
Net (loss) profit $ (33) $ (495) $ (10,873)
Three months ended June 30, 2010
Crocodile Kennedy`s
River Mine Vale Spitzkop
Property, plant and equipment expenditures $ 6,376 $ - $ 6
Revenue $ 36,612 $ - $ -
Production costs (26,855) - -
Depreciation and amortization (5,528) - -
General and administrative expenses (603) (479) (7)
Share-based payment (13) - -
Interest income 387 - -
Finance costs (402) (182) (9)
Foreign exchange loss - - -
Profit (loss) before income taxes 3,598 (661) (16)
Deferred income tax recovery 548 - -
Net profit (loss) $ 4,146 $ (661) $ (16)
Three months ended June 30, 2010
Total
South
Mareesburg Other Africa
Property, plant and equipment expenditures $ 45 $ - $ 6,427
Revenue $ - $ - $ 36,612
Production costs - - (26,855)
Depreciation and amortization - - (5,528)
General and administrative expenses (1) (3) (1,093)
Share-based payment - - (13)
Interest income 2 - 389
Finance costs - - (593)
Foreign exchange loss - - -
Profit (loss) before income taxes 1 ( 3) 2,919
Deferred income tax recovery - - 548
Net profit (loss) $ 1 $ (3) $ 3,467
Three months ended June 30, 2010
Canada TOTAL
Property, plant and equipment expenditures $ - $ 6,427
Revenue $ - $ 36,612
Production costs - (26,855)
Depreciation and amortization - (5,528)
General and administrative expenses (944) (2,037)
Share-based payment - (13)
Interest income 32 4 21
Finance costs - (593)
Foreign exchange loss (36) (36)
Profit (loss) before income taxes (948) 1,971
Deferred income tax recovery - 5 48
Net profit (loss) $ (948) $ 2,519
Six months ended June 30, 2011
Crocodile Kennedy`s
River Mine Vale Spitzkop
Property, plant and
equipment expenditures $ 24,328 $ 9,171 $ -
Revenue $ 62,578 $ - $ -
Production costs (60,446) - -
Depletion and depreciation (10,378) - -
General and administrative expenses (2,541) (947) 171
Share-based payment (293) - -
Interest income 729 18 -
Finance costs (628) (247) -
Foreign exchange gain 788 - -
(Loss) profit before income taxes (10,191) (1,176) 171
Deferred income tax recovery 593 - -
Net (loss) profit $ (9,598) $ (1,176) $ 171
Six months ended June 30, 2011
Total
South
Mareesburg Other Africa
Property, plant and
equipment expenditures $ 15 $ - $ 33,514
Revenue $ - $ - $ 62,578
Production costs - - (60,446)
Depletion and depreciation - - (10,378)
General and administrative expenses (36) (2) (3,355)
Share-based payment - - (293)
Interest income - - 747
Finance costs - - (875)
Foreign exchange gain - - 788
(Loss) profit before income taxes (36) (2) (11,234)
Deferred income tax recovery - - 593
Net (loss) profit $ (36) $(2) $ (10,641)
Six months ended June 30, 2011
Barbados
and BVI Canada TOTAL
Property, plant and
equipment expenditures $ - $ 2 $ 33,516
Revenue $ - $ - $ 62,578
Production costs - - (60,446)
Depletion and depreciation - - (10,378)
General and administrative expenses (38) (2,634) (6,027)
Share-based payment - (7,976) (8,269)
Interest income - 2,175 2,922
Finance costs - - (875)
Foreign exchange gain - 889 1,677
(Loss) profit before income taxes (38) (7,546) (18,818)
Deferred income tax recovery - - 593
Net (loss) profit $ (38) $ (7,546) $ (18,225)
Six months ended June 30, 2010
Crocodile Kennedy`s
River Mine Vale Spitzkop
Property, plant and
equipment expenditures $ 10,637 $ - $ 8
Revenue $ 71,311 $ - $ -
Production costs (52,558) - -
Depreciation and amortization (10,843) - -
General and administrative expenses (2,367) (807) (7)
Share-based payment (47) - -
Interest income 724 - -
Finance costs (584) (366) (13)
Foreign exchange (loss) gain (9) - -
Profit (loss) before income taxes 5,627 (1,173) (20)
Deferred income tax recovery 1,096 - -
Net profit (loss) $ 6,723 $ (1,173) $ (20)
Six months ended June 30, 2010
Total
South
Mareesburg Other Africa
Property, plant and equipment expenditures $ 77 $ - $ 10,722
Revenue $ - $ - $ 71,311
Production costs - - (52,558)
Depreciation and amortization - - (10,843)
General and administrative expenses (2) (3) (3,186)
Share-based payment - - (47)
Interest income 4 - 728
Finance costs - - (963)
Foreign exchange (loss) gain - - (9)
Profit (loss) before income taxes 2 (3) 4,433
Deferred income tax recovery - - 1,096
Net profit (loss) $ 2 $ (3) $ 5,529
Six months ended June 30, 2010
Canada TOTAL
Property, plant and equipment expenditures $ - $ 10,722
Revenue $ - $ 71,311
Production costs - (52,558)
Depreciation and amortization - (10,843)
General and administrative expenses (2,047) (5,233)
Share-based payment (1,705) (1,752)
Interest income 65 793
Finance costs - (963)
Foreign exchange (loss) gain 24 1 232
Profit (loss) before income taxes (3,446) 987
Deferred income tax recovery - 1,096
Net profit (loss) $ (3,446) $ 2,083
December 31, 2010
Crocodile Kennedy`s
River Mine Vale Spitzkop
Current assets $ 45,787 $ 445 $ 1,669
Property, plant and equipment 495,861 64,916 126,357
Refining contract 14,265 - -
Other Assets 3,823 - -
$ 559,736 $ 65,361 $ 128,026
December 31, 2010
Total South
Mareesburg Other Africa
Current assets $ 61 $ 997 $ 48,959
Property, plant and equipment 28,827 - 715,961
Refining contract - - 14,265
Other Assets - - 3,823
$ 28,888 $ 997 $ 783,008
December 31, 2010
Canada TOTAL
Current assets $ 343,952 $ 392,911
Property, plant and
equipment 15 715,976
Refining contract - 14,265
Other Assets - 3,823
$ 343,967 $ 1,126,975
For the three and six months ended June 30, 2011 and 2010, substantially all of
the Company`s PGM production was sold to one customer.
22. Contingency
During the three months ended June 30, 2011, the Company became aware that the
law firm of Siskinds LLP of London, Ontario, had filed a "Notice of Application"
under the Class Action Proceedings Act, 1992, in the Ontario Superior Court of
Justice against the Company and three of its directors and officers. The Notice
of Application seeks permission of the Court to grant leave or permission to
commence a lawsuit under the Securities Act of Ontario and other provinces in
respect to certain alleged breaches of disclosure obligations. Subsequent to
June 30, 2011, the Company and its officers and directors were served with court
documents. The Company believes the proposed action has no merit and intends to
vigorously defend the action.
Date: 15/08/2011 15:52:02 Produced by the JSE SENS Department.
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