| Mon 19 Mar 2012, 14:45 | | BAU - Bauba Platinum Limited - Reviewed interim financial statements for the |
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BAU
BAU
BAU - Bauba Platinum Limited - Reviewed interim financial statements for the
six months ending 31 December 2011
BAUBA PLATINUM LIMITED
(formerly Absolute Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: BAU ISIN No: ZAE000145686
("Bauba" or "the Company")
Reviewed interim financial statements for the six months ending 31 December
2011
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2011
Reviewed Reviewed Audited
31 December 31 December 30 June
2011 2010 2011
R`000 R`000 R`000
ASSETS
Non-current assets 13 209 7 274 7 941
Mineral rights 12 702 6 110 7 450
Property, plant and equipment 507 1 164 491
Current assets 35 719 4 294 4 803
Trade and other receivables 1 124 1 787 633
Short term loan receivable - 3 -
Cash and cash equivalents 34 595 2 504 4 170
Assets classified as held for sale 24 264 55 372 23 604
TOTAL ASSETS 73 192 66 940 36 348
EQUITY AND LIABILITIES
Capital and reserves 46 007 37 112 284
Share capital 123 274 90 510 94 065
Share premium 276 376 259 116 255 653
Reverse acquisition reserve (282 988) (280 871) (282 988)
Retained loss (69 789) (31 643) (65 714)
Non-controlling interest (867) - (732)
Current liabilities 2 922 5 715 12 460
Trade and other payables 2 922 5 715 12 460
Liabilities classified as held for 24 264 24 113 23 604
sale
TOTAL EQUITY AND LIABILITIES 73 192 66 940 36 348
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTH
PERIOD ENDED 31 DECEMBER 2011
Reviewed Reviewed Audited
31 December 31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Revenue - - -
Other income 4 21 -
Operating expenditure (327) (5 345) (3 872)
General and administrative expenses (4 579) (5 687) (10 421)
Reverse asset acquisition cost - (25 913) (25 913)
Finance charges (7) (1 081) (157)
Interest received 951 111 138
Dividend income - 1 958 4 160
Loss before taxation (3 957) (35 936) (36 065)
Taxation - - (29)
Loss for the period from continuing (3 957) (35 936) (36 094)
operations
Discontinued operations
(Loss)/Profit for the period from (253) 4 914 (19 616)
discontinued operations
Loss for the period (4 210) (31 022) (55 710)
Other comprehensive loss
Impairment of financial assets held for - - (12 416)
sale
Comprehensive loss for the period (4 210) (31 022) (68 126)
Loss for the period - attributable to: (4 210) (31 022) (55 710)
-Equity holders of the company (4 075) (31 022) (54 723)
-Non-controlling interest (135) - (987)
Headline loss reconciliation
Loss for the period (4 210) (31 022) (55 710)
Fair value gain/(loss) on assets held 440 - (16 917)
for sale
Headline loss for the period (4 650) (31 022) (38 973)
Undiluted and diluted earnings per
share
Loss per share (cents) (3.5) (33.1) (59.9)
Loss per share - continued operations (3.3) (38.3) (38.8)
(cents)
(Loss)/Profit per share - discontinued (0.2) 5.2 (21.1)
operations (cents)
Undiluted and diluted headline earnings
per share
Headline loss per share (cents) (3.9) (33.1) (59.9)
Headline loss per share (cents) - (3.3) (38.3) (38.8)
continued operations
Headline (loss)/gain per share (cents) (0.6) 5.2 (21.1)
- discontinued operations
Weighted average number of shares in 118 936 93 737 93 044
issue (000`s)
Total number of shares in issue at the 123 724 90 509 94 065
end of the period (000`s)
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Reviewed Audited
31 December 31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Net cash outflow from operating (14 144) (24 124) (11 083)
activities
Net cash (outflow)/inflow from investing (5 363) 23 974 (5 882)
activities
Net cash inflow from financing activities 49 932 - 18 481
Net increase / (decrease) in cash and 30 425 (150) 1 516
cash equivalents
Cash and cash equivalents at beginning of 4 170 2 654 2 654
period
Cash and cash equivalents at end of 34 595 2 504 4 170
period
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Retained Non- Reverse Total
capital premium loss control- acquisit-
ling ion
interest reserve
R`000 R`000 R`000 R`000 R`000 R`000
Balance at 31 90 510 259 116 (31 643) - (280 871) 37 112
December 2010
Shares issued 3 555 (3 463) - - - 92
Reverse - - - 255 (2 117) (1 862)
acquisition
adjustment
Comprehensive - - (34 071) (987) - (35 058)
loss for the
period
Balance at 30 94 065 255 653 (65 714) (732) (282 988) 284
June 2011
Shares issued 29 209 20 723 - - - 49 932
Comprehensive - - (4 075) (135) - (4 210)
loss for the
period
Balance at 31 123 274 276 376 (69 789) (867) (282 988) 46 007
December 2011
Commentary
Results
The main focus of the Group during the period under review has been the
ongoing exploration of its platinum assets. These financial statements reflect
the successful raising of R50 million in support of the exploration programme.
The Group`s cost structures are representative of the stage of development
which the Group is currently in with R5 million being spent on exploration
activities which has been capitalised in line with the Group`s accounting
policies. With more drilling activities being commissioned, the exploration
costs should increase in the next six months compared to the six months ended
31 December 2011.
The Group has continued with its stated strategy of disposing of its non-core
assets in an orderly fashion. As previously announced and during the period
under review the investment in Qinisele Resources (Pty) Ltd was successfully
disposed of. The remainder of the non-core assets should be disposed of by 30
June 2012.
Exploration
Exploration has been progressed on the Southern and Central Clusters of the
Group`s Platinum Group Metals prospects on the Bushveld Complex Eastern Limb.
Exploration drilling in the Southern Cluster has been suspended pending the
outcome of a review application regarding the Group`s prospecting rights in
respect of the Southern Cluster farms. To date four boreholes have been
completed in this area and a detailed report on the results of these will be
released in the near future.
Exploration drilling commenced on the Central Cluster properties. One borehole
has been complete and a further two are in progress. Results of the first
borehole are mixed. Merensky and UG2 reefs are present, and intersection
depths are considerably shallower than initially anticipated. However, the
Merensky reef is poorly developed and mineralised.
Further drill rigs are being mobilised and exploration drilling will commence
on the Northern Cluster prospects in the third quarter of this year.
Notes to the interim financial statements
Basis of preparation
The directors present the reviewed interim results for the six months ended 31
December 2011 in accordance with IAS 34 Interim Financial Reporting, the
requirements of the South African Companies Act, 71 of 2008, as amended, the
AC 500 standards as issued by the Accounting Practices Board or its successor
and in compliance with the Listings Requirements of JSE Limited. The report
has been prepared using accounting policies, which are based on reasonable
estimates and judgements that comply with IFRS which are consistent with those
applied in the financial statements for the financial year ended 30 June 2010.
The interim financial results for the six months ended 31 December 2011 have
been reviewed by the Company`s auditors, BDO South Africa Incorporated. A copy
of their review opinion is available for inspection at the registered office
of the Company.
These interim financial results have prepared under the supervision of Mr
Willem Moolman; Financial Director.
Segmental information
The Company has classified three segments namely:
(1) Exploration, being activities associated with the Bauba Project and
platinum exploration;
(2) Assets held for sale, being all the non-core, non-platinum assets that are
currently held for sale; and
(3) Corporate expenses, being overhead and corporate expenses incurred.
Assets Corporate Exploration Total
held for
sale
31 December 2011 R`000 R`000 R`000 R`000
External revenues - 4 - 4
External interest received - 951 - 951
External finance expense - (7) - (7)
Depreciation and amortisation - (23) (71) (94)
Results from operating (693) (4 579) (327) (5 599)
activities
Total segment assets 24 264 34 936 13 992 73 192
Total segment liabilities (24 264) (1 838) (1 084) (27 186)
31 December 2010
External revenues - 21 - 21
Interest expense - (1 081) - (1 081)
Depreciation and amortisation - (16) - (16)
Results from operating (804) (5 666) (31 258) (37 728)
activities
Total segment assets 55 372 921 10 648 66 941
Total segment liabilities (24 113) (3 377) (2 338) (29 828)
Capital raising
The Company successfully raised R50 million by way of issuing 27 777 778
shares for cash during July 2011 at an issue price of R1.80 per share. This
cash generated, net of costs, triggered a number of debt payment obligations
due to the conditions precedent of the asset for share transaction and these
obligations have now been settled. The majority of the payments were directly
related to the raising of capital and as a result is reflected as a cost
against the share premium.
No dividend was declared by the Company during this reporting period.
Legal
There is currently a review application pending in the North Gauteng High
Court of South Africa, Pretoria brought by Rustenburg Platinum Mines Limited
and ARM Mining Consortium Limited against a decision of the Department of
Mineral Resources to grant the prospecting rights in respect of Genokakop
285KT and Groot Vygenboom 284KT. The Company has taken legal advice on the
matter.
Issue of shares
During the period under review, the Company placed 27 777 778 ordinary shares
at R1.80 to fund exploration activities under the specific authorisation
granted on 7 June 2010 and the general authority granted on 19 October 2010 to
the Board.
Going concern
The annual financial statements have been prepared on the basis of accounting
policies applicable to a going concern. This basis presumes that funds will be
available to finance future operations and that the realisation of assets and
settlement of liabilities, contingent obligations and commitments will occur
in the ordinary course of business. As is common with many junior mining
companies, the Group raises capital for exploration and other projects as and
when required. Future work on the development of these projects may be
adversely affected by factors outside of the control of the Group.
Subsequent events
The directors are not aware of any subsequent events that occurred between 31
December 2011 and the date of authorisation of these reviewed interim
financial statements that require any adjustments or additional disclosure to
the reviewed interim financial statements.
Directorate
There have been no changes to the Board during the period under review.
On behalf of the Board
JG Best GJ Pitt
Chairman Chief Executive Officer
19 March 2012
Board of Directors:
Non-executive
Mr JG Best* (Chairman), Mr KV Dicks*, Mr SM Dolamo*, Ms KW Mzondeki*, Dr NM
Phosa, Mr D Smith, King TV Thulare (Alt to Dr NM Phosa).
(* Independent)
Executive
Mr GJ Pitt (CEO), Mr WA Moolman (FD)
Sponsor
Merchantec (Proprietary) Limited
Company secretary and registered office
Merchantec (Proprietary) Limited
2nd Floor, North Block, Hyde Park Office Tower
Cnr 6th Road and Jan Smuts Avenue
Hyde Park, 2196
(PO Box 41480, Craighall, 2024)
Auditor
BDO South Africa Incorporated
Date: 19/03/2012 14:45:02 Produced by the JSE SENS Department.
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