|
ARQ
ARQ
ARQ - Anooraq Resources Corporation - Restated and amended condensed
consolidated interim financial statements three and nine months ended 30
September 2011
Anooraq Resources Corporation
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ARQ
AMEX share code: ANO
ISIN: CA03633E1088
("Anooraq" or the "Company" or, together with its subsidiaries, the "Group")
RESTATED AND AMENDED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED 30 September 2011
Anooraq announces its restated and amended condensed consolidated financial
results for the three and nine months ended 30 September 2011, as approved by
the Board of Directors on 30 March 2012. This announcement should be read with
the Company`s Management Discussion & Analysis, available at
www.anooraqresources.com and filed on www.sedar.com
These financial statements have not been reviewed by the Company`s auditors
Restated and Amended Condensed Consolidated Interim Statements of Financial
Position
As at 30 September 2011
(Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
Audited
Note 30 September 31 December
2011 2010
Assets (Restated
Note 14)
Non-current assets
Property, plant and equipment 5 829,245,167 984,906,533
Capital work-in-progress 6 14,395,015 10,311,973
Intangible assets 7 2,220,746 3,280,056
Mineral property interests 12,563,479 13,716,383
Goodwill 11,308,482 13,185,952
Platinum producers` environmental 2,877,698 2,862,075
trust (restricted cash)
Other non-current assets 353,956 348,076
Total non-current assets 872,964,543 1,028,611,048
Current assets
Inventories 672,324 -
Trade and other receivables 35,622,430 36,190,110
Current tax receivable 140,001 163,244
Cash and cash equivalents 15,846,986 25,764,590
Restricted cash 1,207,226 1,377,263
Total current assets 53,488,967 63,495,207
Total assets 926,453,510 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 (11,117,912) (5,197,843)
Hedging reserve - (4,124,155)
Share-based payment reserve 24,014,503 22,032,571
Accumulated loss (226,392,742) (163,519,502)
Total equity attributable to equity 16,389,206 78,961,933
holders of the Group
Non-controlling interest (9,330,761) 42,404,014
Total equity 7,058,445 121,365,947
Liabilities
Non-current liabilities
Loans and borrowings 8 730,509,191 622,534,699
Deferred taxation 157,125,310 208,805,557
Provisions 7,460,832 8,184,494
Derivative liability - 4,969,563
Total non-current liabilities 895,095,333 844,494,313
Current liabilities
Trade and other payables 23,159,876 31,844,332
Short-term portion of loans and 1,139,856 94,401,663
borrowings
Total current liabilities 24,299,732 126,245,995
Total liabilities 919,395,065 970,740,308
Total equity and liabilities 926,453,510 1,092,106,255
Restated and Amended Condensed Consolidated Interim Statements of Comprehensive
Loss
For the periods ended 30 September 2011
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 September
2011 2010
(Restated Note
14)
Revenue 45,278,023 34,481,850
Cost of sales (54,978,429) (44,528,975)
Gross loss (9,700,406) (10,047,125)
Administrative expenses 10 (4,960,444) (6,114,310)
Transaction costs - (595)
Other income 31,764 128,375
Operating loss (14,629,086) (16,033,655)
Finance income 165,373 273,545
Finance expense (22,047,827) (18,908,247)
Net finance expense (21,882,454) (18,634,702)
Loss before income tax (36,511,540) (34,668,357)
Income tax 6,388,025 6,530,062
Loss for the period (30,123,515) (28,138,295)
Other comprehensive
income/(loss)
Foreign currency translation (1,243,599) 8,118,906
differences for foreign
operations
Effective portion of changes in - (1,177,448)
fair value of cash flow hedges
Reclassification to profit or - -
loss on settlement of cash flow
hedge
Other comprehensive loss for (1,243,599) 6,941,458
the period, net of income tax
Total comprehensive loss for (31,367,114) (21,196,837)
the period
Loss attributable to:
Owners of the Company (15,984,182) (15,495,792)
Non-controlling interest (14,139,333) (12,642,503)
Loss for the period (30,123,515) (28,138,295)
Total comprehensive loss
attributable to:
Owners of the Company (17,571,170) (11,780,135)
Non-controlling interest (13,795,944) (9,416,702)
Total comprehensive loss for (31,367,114) (21,196,837)
the period
Restated and Amended Condensed Consolidated Interim Statements of Comprehensive
Loss
For the periods ended 30 September 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Note Nine months ended 30 September
2011 2010
(Restated Note
14)
Revenue 111,892,648 105,042,863
Cost of sales (158,742,449) (121,080,564)
Gross loss (46,849,801) (16,037,701)
Administrative expenses 10 (19,559,923) (12,395,460)
Transaction costs - (51,625)
Other income 86,002 210,992
Operating loss (66,323,722) (28,273,794)
Finance income 593,193 856,560
Finance expense (70,378,830) (46,504,749)
Net finance expense (69,785,637) (45,648,189)
Loss before income tax (136,109,359) (73,921,983)
Income tax 23,763,255 12,669,211
Loss for the period (112,346,104) (61,252,772)
Other comprehensive
income/(loss)
Foreign currency translation (8,251,052) 3,789,752
differences for foreign
operations
Effective portion of changes 1,602,501 (3,113,271)
in fair value of cash flow
hedges
Reclassification to profit or 2,521,654 -
loss on settlement of cash
flow hedge
Other comprehensive loss for (4,126,897) 676,481
the period, net of income tax
Total comprehensive loss for (116,473,001) (60,576,291)
the period
Loss attributable to:
Owners of the Company (62,873,240) (33,319,336)
Non-controlling interest (49,472,864) (27,933,436)
Loss for the period (112,346,104) (61,252,772)
Total comprehensive loss
attributable to:
Owners of the Company (64,738,226) (34,059,639)
Non-controlling interest (51,734,775) (26,516,652)
Total comprehensive loss for (116,473,001) (60,576,291)
the period
Restated and Amended Condensed Consolidated Interim Statements of Changes in
Equity
For the period ended 30 September 2011
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the
Company
Share Treasury Convertible
Capital Shares preference
shares
For the period ended 30
September 2010
Balance at 1 January 2010 71,713,114 (4,991,726) 162,910,000
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
Common shares issued 63,400 - -
Total contributions by and 63,400 - -
distributions to owners
Balance at 30 September 2010 71,776,514 (4,991,726) 162,910,000
For the period ended 30
September 2011
Balance at 1 January 2011 71,852,588 (4,991,726) 162,910,000
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 and 114,495 - -
distributions to owners
Balance at 30 September 2011 71,967,083 (4,991,726) 162,910,000
Restated and Amended Condensed Consolidated Interim Statements of Changes in
Equity
For the period ended 30 September 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the
Company
Foreign Share-based Hedging
currency payment reserve
translation reserve
reserve
(Restated (Restated
Note 14) Note 14)
For the period ended 30
September 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 translation 2,584,094 - (211,126)
differences
Effective portion of changes - - (3,113,271)
in fair value of cash flow
hedges, net of tax
Total other comprehensive loss 2,584,094 - (3,324,397)
Total comprehensive loss for 2,584,094 - (3,324,397)
the period
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Share-based payment - 1,578,673 -
transactions
Common shares issued - - -
Total contributions by and - 1,578,673 -
distributions to owners
Balance at 30 September 2010 (6,806,805) 21,349,459 (4,055,690)
For the period ended 30
September 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 translation (5,920,069) (69,072) -
differences
Effective portion of changes - - 1,602,501
in fair value of cash flow
hedges, net of tax
Reclassification to profit or - - 2,521,654
loss on settlement of cash
flow hedge
Total other comprehensive loss (5,920,069) (69,072) 4,124,155
Total comprehensive loss for (5,920,069) (69,072) 4,124,155
the period
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Common shares issued - (51,495) -
Share-based payment - 2,102,499 -
transactions
Total contributions by and - 2,051,004 -
distributions to owners
Balance at 30 September 2011 (11,117,912) 24,014,503 -
Restated and Amended Condensed Consolidated Interim Statements of Changes in
Equity
For the period ended 30 September 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the
Company
Accumulated Total Non- Total
loss controlling
interest
(Restated (Restated (Restated (Restated
Note 14) Note 14) Note 14) Note 14)
For the period
ended 30
September 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 (33,319,336) (33,319,336) (27,933,436) (61,252,772)
period
Other
comprehensive
income/(loss)
Foreign - 2,372,968 1,416,784 3,789,752
currency
translation
differences
Effective - (3,113,271) - (3,113,271)
portion of
changes in
fair value of
cash flow
hedges,net of
tax
Total other - (740,303) 1,416,784 676,481
comprehensive
loss
Total (33,319,336) (34,059,639) (26,516,652) (60,576,291)
comprehensive
loss for the
period
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Share-based - 1,578,673 - 1,578,673
payment
transactions
Common shares - 63,400 - 63,400
issued
Total - 1,642,073 - 1,642,073
contributions
by and
distributions
to owners
Balance at 30 (145,117,428) 95,064,324 55,509,078 150,573,402
September 2010
For the period
ended 30
September 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 (62,873,240) (62,873,240) (49,472,864) (112,346,104)
period
Other
comprehensive
income/(loss)
Foreign - (5,989,141) (2,261,911) (8,251,052)
currency
translation
differences
Effective - 1,602,501 - 1,602,501
portion of
changes in
fair value of
cash flow
hedges, net of
tax
Reclassificati - 2,521,654 - 2,521,654
on to profit
or loss on
settlement of
cash flow
hedge
Total other - (1,864,986) (2,261,911) (4,126,897)
comprehensive
loss
Total (62,873,240) (64,738,226) (51,734,775) (116,473,001)
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 - 2,102,499 - 2,102,499
payment
transactions
Total - 2,165,499 - 2,165,499
contributions
by and
distributions
to owners
Balance at 30 (226,392,742) 16,389,206 (9,330,761) 7,058,445
September 2011
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 September 2011
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 September
2011 2010
Cash flows from operating
activities
Cash utilised by operations 9 (16,657,875) (6,133,339)
Interest received 118,339 249,047
Interest paid - (665)
Taxation paid - -
Cash utilised by operating (16,539,536) (5,884,957)
activities
Cash flows from investing
activities
Acquisition of property, plant (2,294) -
and equipment
Acquisition of capital-work-in- 6 (5,863,788) (7,427,473)
progress
Acquisition of intangible 7 - -
assets
Proceeds on disposal of - 548
property, plant and equipment
Investment in environmental (96,005) -
trusts
Cash utilised by investing (5,962,087) (7,426,925)
activities
Cash flows from financing
activities
Settlement of interest rate 8 - -
swap
Funding loan raised - RPM 8 - -
Long term borrowings raised - 20,465,542 12,031,289
OCSF
Repayment of other loans - -
Other loans raised 69,200 -
Common shares issued - -
Cash generated from financing 20,534,742 12,031,289
activities
Effect of foreign currency (1,426,159) 1,492,851
translation
Net (decrease)/ increase in (3,393,040) 212,258
cash and cash equivalents
Cash and cash equivalents, 19,240,026 30,692,492
beginning of period
Cash and cash equivalents, end 15,846,986 30,904,750
of period
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 September 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Note Nine months ended 30 September
2011 2010
Cash flows from operating
activities
Cash utilised by operations 9 (38,275,012) (11,722,149)
Interest received 449,781 764,530
Interest paid (523,153) (13,419)
Taxation paid - (299,394)
Cash utilised by operating (38,348,384) (11,270,432)
activities
Cash flows from investing
activities
Acquisition of property, plant (2,294) (463,723)
and equipment
Acquisition of capital-work-in- 6 (20,352,762) (17,809,667)
progress
Acquisition of intangible 7 (242,177) -
assets
Proceeds on disposal of - 47,550
property, plant and equipment
Investment in environmental (396,032) (518)
trusts
Cash utilised by investing (20,993,265) (18,226,358)
activities
Cash flows from financing
activities
Settlement of interest rate 8 (3,691,604) -
swap
Funding loan raised - RPM 8 3,691,604 -
Long term borrowings raised - 52,447,321 28,441,921
OCSF
Repayment of other loans (492,311) -
Other loans raised 69,200 -
Common shares issued 63,000 25,800
Cash generated from financing 52,087,210 28,467,721
activities
Effect of foreign currency (2,663,165) 986,308
translation
Net (decrease)/ increase in (9,917,604) (42,761)
cash and cash equivalents
Cash and cash equivalents, 25,764,590 30,947,511
beginning of period
Cash and cash equivalents, end 15,846,986 30,904,750
of period
ANOORAQ RESOURCES CORPORATION
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 September 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
nine months ended 30 September 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 $190.4 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
September 2011, the Group utilised $131.6 million (ZAR 1,016 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 (RESTATED NOTE 14)
Summary
Nine months Year ended 31
ended 30 December 2010
September 2011
Cost
Balance at beginning of period 1,032,647,854 707,131,018
Additions 2,294 494,095
Transferred from capital work-in- 15,580,507 260,839,548
progress
Disposals (85,259) (544,766)
Adjustment to rehabilitation assets - 144,952
Effect of translation (148,215,406) 64,583,007
Balance at end of period 899,929,990 1,032,647,854
Accumulated depreciation and
impairment losses
Balance beginning of period 47,741,321 13,737,282
Depreciation for the period 32,265,989 31,397,522
Disposals (67,507) (499,587)
Effect of translation (9,254,980) 3,106,104
Balance at end of period 70,684,823 47,741,321
Carrying value (#)829,245,167 984,906,533
(#) Refer to note 14 regarding the restatement of the nine months ended
results.
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.
Nine months Year ended 31
ended 30 December 2010
September 2011
Balance at beginning of period 10,311,973 235,838,915
Additions 20,352,762 28,193,472
Transfer to property, plant and equipment (15,580,507) (260,839,548)
Capitalisation of borrowing costs 1,237,727 8,271,379
Impairment - (345,123)
Effect of translation (1,926,940) (807,122)
Balance at end of period 14,395,015 10,311,973
Capital work-in-progress is funded through cash generated from operations and
available loan facilities.
7. INTANGIBLE ASSETS
Nine months Year ended 31
ended 30 December 2010
September 2011
Cost
Balance at beginning of period 3,473,000 -
Additions 242,177 3,328,100
Effect of translation (512,983) 144,900
Balance at end of period 3,202,194 3,473,000
Accumulated amortisation and impairment
losses
Balance beginning of period 192,944 -
Amortisation for the period 883,396 180,039
Effect of translation (94,892) 12,905
Balance at end of period 981,448 192,944
Carrying value 2,220,746 3,280,056
8. LOANS AND BORROWINGS (RESTATED NOTE 14)
Nine months ended Year ended 31
30 September 2011 December 2010
Senior Term Loan Facility - 93,412,907
Capitalised transaction costs - (4,251,970)
Redeemable "A" preference shares 392,051,443 418,050,018
(related party)
Rustenburg Platinum Mines - Funding 173,400,721 89,370,192
loans (related party)
Rustenburg Platinum Mines - OCSF 158,175,304 111,208,925
(related party)
Rustenburg Platinum Mines - Interest 3,743,980 4,365,567
free loan (related party)
Rustenburg Platinum Mines - commitment 1,272,317 1,122,854
fees (related party)
Other 3,005,282 3,657,869
731,649,047 716,936,362
Short-term portion
Senior Term Loan Facility - (93,412,907)
Other (1,139,856) (988,756)
(1,139,856) (94,401,663)
Non-current liabilities (#) 730,509,191 622,534,699
The carrying value of the Group`s loans and borrowings changed during the period
as follows:
Nine months Year ended 31
ended 30 December 2010
September 2011
Balance at beginning of the period 716,936,362 555,509,417
Rustenburg Platinum Mine - OCSF 52,447,321 39,043,300
Rustenburg Platinum Mine - Interest - 599,442
free loan
Loans repaid - (590,537)
Loans repaid - other (492,311) -
Commitment fee capitalised (334,907) (640,086)
Finance expenses accrued 66,496,171 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 18,179 631,929
Commitment fee liability 334,907 640,086
Interest rate swap adjustment 355,852 (354,093)
Other 69,200 3,328,100
Effect of translation (111,842,249) 44,331,907
Balance at end of the period 731,649,047 716,936,362
Short-term portion
Senior Term Loan Facility - (93,412,907)
Other (1,139,856) (988,756)
(1,139,856) (94,401,663)
Non-current portion (#) 730,509,191 622,534,699
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% (9.585% at 30
September 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.
(#) Refer to note 14 regarding the restatement of the nine months ended
results.
9. CASH (UTILISED BY)/GENERATED FROM OPERATIONS (RESTATED NOTE 14)
Three months ended 30 September
2011 2010
Loss before income tax (#) (36,511,540) (34,668,357)
Adjustments for:
Finance expense (#) 22,047,827 18,908,247
Finance income (165,373) (273,545)
Non-cash items:
Depreciation and amortisation (#) 10,782,132 9,386,448
Equity settled share-based (#) 461,503 652,636
compensation
Impairment of assets - -
Loss/(profit) on disposal of - 83,258
property, plant and equipment
Profit or loss impact of cash flow - -
hedge
Other - (35,958)
Cash utilised before working capital (3,385,451) (5,947,271)
changes
Working capital changes
(Increase)/decrease in trade and (11,255,000) 3,319,738
other receivables
Decrease in trade and other payables (1,605,551) (271,185)
Increase in inventories (411,873) (3,234,621)
Cash utilised by operations (16,657,875) (6,133,339)
Nine months ended 30 September
2011 2010
Loss before income tax (136,109,359) (73,921,983)
Adjustments for:
Finance expense 70,378,830 46,504,749
Finance income (593,193) (856,560)
Non-cash items:
Depreciation and amortisation 33,149,385 21,578,891
Equity settled share-based 2,102,499 1,616,273
compensation
Impairment of assets - 340,225
Loss/(profit) on disposal of 17,752 78,181
property, plant and equipment
Profit or loss impact of cash flow 2,614,359 -
hedge
Other - (186,498)
Cash utilised before working capital (28,439,727) (4,846,722)
changes
Working capital changes
(Increase)/decrease in trade and (4,940,473) (796,460)
other receivables
Decrease in trade and other payables (4,166,937) (3,503,408)
Increase in inventories (727,875) (2,575,559)
Cash utilised by operations (38,275,012) (11,722,149)
(#) Refer to note 14 regarding the restatement of the nine months ended
results.
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 (RESTATED NOTE 14)
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.
Nine months ended 30 September 2011
Bokoni Mine Projects Total Note
EBITDA (24,946,917) (587,002) (#) (25,533,919) (i)
Total Assets 932,911,055 9,951,787 (#) 942,862,842 (ii)
Nine months ended 30 September 2010
Bokoni Mine Projects Total Note
EBITDA (2,142,732) (244,957) (2,387,689) (i)
Total Assets 1,062,249,751 12,423,598 1,074,673,349 (ii)
Three months ended 30 September 2011
Bokoni Mine Projects Total
Note
EBITDA (2,513,945) (40,970) (#) (2,554,915) (i)
Three months ended 30 September 2010
Bokoni Mine Projects Total
Note
EBITDA (163,896) (224,066) (387,962) (i)
2011 2010
(i)EBITDA - nine months ended
EBITDA for reportable segments (25,533,919) (2,387,689)
Net finance expense (69,785,637) (45,648,189)
Depreciation and amortisation (33,149,385) (21,578,891)
Corporate and consolidation (7,640,418) (4,307,214)
adjustments
Consolidated loss before income tax (#) (136,109,359) (73,921,983)
EBITDA - three months ended
EBITDA for reportable segments (2,554,915) (387,962)
Net finance expense (21,882,454) (18,634,702)
Depreciation and amortisation (10,782,132) (9,386,448)
Corporate and consolidation (1,292,039) (6,259,245)
adjustments
Consolidated loss before income tax (#) (36,511,540) (34,668,357)
(ii)Total assets
Assets for reportable segments 942,862,842 1,074,673,349
Corporate and consolidation (16,409,332) (14,281,366)
adjustments
Consolidated total assets (#) 926,453,510 1,060,391,983
(#) Refer to note 14 regarding the restatement of the three and nine months
ended results.
12. SUBSEQUENT EVENTS
The audited annual financial statements for the year ended 31 December 2011
were approved on the same date as these restated and amended condensed
consolidated interim financial statements. The audited annual financial
statements for the year ended 31 December 2011 should be referred to for a
better understanding of the financial position of the company.
13. EARNINGS PER SHARE (RESTATED NOTE 14)
The basic and diluted loss per share for the three and nine months ended 30
September 2011 was 4 cents (2010: 4 cents) and 15 cents (2010: 8 cents)
respectively.
The calculation of basic loss per share for the three months ended 30
September 2011 of 4 cents (2010: 4 cents) is based on the loss attributable
to owners of the Company of (#) $15,984,182 (2010: $15,495,792) and a
weighted average number of shares of 424,764,699 (2010: 424,660,916).
The calculation of basic loss per share for the nine months ended 30
September 2011 of 15 cents (2010: 8 cents) is based on the loss
attributable to owners of the Company of (#) $62,873,240 (2010:
$33,319,336) and a weighted average number of shares of 424,764,699 (2010:
424,660,916).
Share options were excluded in determining diluted weighted average number
of common shares as their effect would have been anti-dilutive.
(#) Refer to note 14 regarding the restatement of the three and nine
months ended results.
14. RESTATEMENT OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE
THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2011
Subsequent to the 14 November 2011 issuance of the unaudited interim
condensed consolidated financial statements for the three and nine months
ended 30 September 2011, on 30 March 2012 the Company announced that during
its 2011 financial year-end closing procedures management had identified
certain non material adjustments which had led to the understatement of its
loss for the three and nine months ended 30 September 2011. As a result,
the following adjustments were identified that affected the Company`s
reported results for the three and nine month period ended 30 September
2011.
The Company determined that depreciation on property, plant and equipment
was incorrectly calculated as a portion of inferred resources relating to a
UG2 ramp up project at Bokoni, which was subsequently suspended, was
inadvertently included in the units of production calculation.
Consequently, adjustments to increase cost of sales were recorded. Refer to
table below for actual adjusted amount.
In addition, the Company determined that based on a correct interpretation
of the Bokoni Platinum Mine ESOP Trust Deed, it should account for the
share-based payment implications arising from such Bokoni Platinum Mine
ESOP Trust, a consolidated SPE, which had not previously been accounted
for. An adjustment to increase administrative expenses was recorded. Refer
to table below for actual adjusted amount.
Finally, interest on the A Preference shares was erroneously calculated on
a simple interest basis as opposed to on a compounded interest basis. This
required an adjustment to increase finance expenses. Refer to table below
for actual adjusted amount.
The abovementioned adjustments did not impact the annual consolidated
financial statements of Anooraq for the years ended 31 December 2010 and
2009.
The impact of the correction was as follows:
Statement of financial position at 30 September 2011
As previously Correction As restated
reported
Property, plant and 830,455,368 (1,210,201) 829,245,167
equipment
Total assets 927,663,711 (1,210,201) 926,453,510
Share-based payment 23,178,542 835,961 24,014,503
reserve
Accumulated loss (222,372,844) (4,019,898) (226,392,742)
Total equity 14,190,183 (7,131,738) 7,058,445
Loans and borrowings 724,248,798 6,260,393 730,509,191
Total liabilities 913,473,528 5,921,537 919,395,065
Statement of comprehensive loss for the three and nine months ended 30 September
2011
Three months ended
As previously Correction As restated
reported
Cost of sales (54,991,512) 13,083 (54,978,429)
Gross loss (9,713,489) 13,083 (9,700,406)
Operating loss (14,451,523) (177,563) (14,629,086)
Finance expense (20,096,415) (1,951,412) (22,047,827)
Loss for the period (27,990,876) (2,132,639) (30,123,515)
Total comprehensive (29,868,633) (1,498,481) (31,367,114)
loss for the period
Basic loss per share (0.04) - (0.04)
Nine months ended
As previously Correction As restated
reported
Cost of sales (157,432,254) (1,310,195) (158,742,449)
Gross loss (45,539,606) (1,310,195) (46,849,801)
Operating loss (64,108,494) (2,215,228) (66,323,722)
Finance expense (63,601,169) (6,777,661) (70,378,830)
Loss for the period (103,720,069) (8,626,035) (112,346,104)
Total comprehensive (108,436,230) (8,036,771) (116,473,001)
loss for the period
Basic loss per share (0.14) (0.01) (0.15)
The restatement did not impact the statement of cash flows.
Johannesburg
(30) March 2012
JSE Sponsor
Macquarie First South Capital (Pty) Limited
Issued on behalf of Anooraq Resources Corporation
On behalf of Anooraq
Joel Kesler
Executive: Corporate Development
Office: +27 11 779 6800
Mobile: +27 82 454 5556
Russell and Associates
Nicola Taylor
Office: +27 11 880 3924
Mobile: +27 82 927 8957
Macquarie First South Capital
Annerie Britz/ Yvette Labuschagne/ Melanie de
Nysschen
Office: +27 11 583 2000
Date: 30/03/2012 15:02:01 Produced by the JSE SENS Department.
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