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ARQ
ARQ
ARQ - Anooraq Resources Corporation - Restated and amended condensed
consolidated interim financial statements three and six months ended
30 June 2011
Anooraq Resources Corporation
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ARQ
AMEX share code: ANO
ISIN: CA03633E1088
("Anooraq" or the "Company" or, together with its subsidiaries, the "Group")
RESTATED AND AMENDED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED 30 JUNE 2011
Anooraq announces its restated and amended condensed consolidated financial
results for the three and six months ended 30 June 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 June 2011
(Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
Audited
Note 30 June 2011 31 December
2010
Assets (Restated Note
15)
Non-current assets
Property, plant and equipment 5 920,779,762 984,906,533
Capital work-in-progress 6 13,209,653 10,311,973
Intangible assets 7 2,744,463 3,280,056
Mineral property interests 13,271,299 13,716,383
Goodwill 12,461,161 13,185,952
Platinum producers` environmental 3,047,831 2,862,075
trust (restricted cash)
Other non-current assets 364,896 348,076
Total non-current assets 965,879,065 1,028,611,048
Current assets
Inventories 318,457 -
Trade and other receivables 28,530,133 36,190,110
Current tax receivable 154,271 163,244
Cash and cash equivalents 19,240,026 25,764,590
Restricted cash 1,329,607 1,377,263
Total current assets 49,572,494 63,495,207
Total assets 1,015,451,559 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 (9,605,545) (5,197,843)
reserve
Hedging reserve - (4,124,155)
Share-based payment reserve 23,627,621 22,032,571
Accumulated loss (210,408,560) (163,519,502)
Total equity attributable to 33,498,873 78,961,933
equity holders of the Group
Non-controlling interest 4,465,183 42,404,014
Total equity 37,964,056 121,365,947
Liabilities
Non-current liabilities
Loans and borrowings 8 760,885,217 622,534,699
Deferred taxation 179,817,959 208,805,557
Provisions 8,059,085 8,184,494
Derivative liability - 4,969,563
Total non-current liabilities 948,762,261 844,494,313
Current liabilities
Trade and other payables 27,806,542 31,844,332
Short-term portion of loans and 918,700 94,401,663
borrowings
Total current liabilities 28,725,242 126,245,995
Total liabilities 977,487,503 970,740,308
Total equity and liabilities 1,015,451,559 1,092,106,255
Restated and Amended Condensed Consolidated Interim Statements of Comprehensive
Loss
For the periods ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 June
2011 2010
(Restated Note 15)
Revenue 35,916,397 38,354,910
Cost of sales (56,212,465) (40,919,441)
Gross loss (20,296,068) (2,564,531)
Administrative expenses 10 (10,294,361) (3,609,512)
Transaction costs - (51,030)
Other income 3,947 (2,806)
Operating loss (30,586,482) (6,227,879)
Finance income 233,652 283,078
Finance expense (25,078,380) (17,336,496)
Net finance expense (24,844,728) (17,053,418)
Loss before income tax (55,431,210) (23,281,297)
Income tax 9,285,054 3,357,844
Loss for the period (46,146,156) (19,923,453)
Other comprehensive
income/(loss)
Foreign currency (853,472) 314,175
translation differences
for foreign operations
Effective portion of 9,054 (444,297)
changes in fair value of
cash flow hedges
Reclassification to 2,521,654 -
profit or loss on
settlement of cash flow
hedge
Other comprehensive loss 1,677,236 (130,122)
for the period, net of
income tax
Total comprehensive loss (44,468,920) (20,053,575)
for the period
Loss attributable to:
Owners of the Company (28,244,686) (10,825,637)
Non-controlling interest (17,901,470) (9,097,816)
Loss for the period (46,146,156) (19,923,453)
Total comprehensive loss
attributable to:
Owners of the Company (26,386,888) (11,055,662)
Non-controlling interest (18,082,032) (8,997,913)
Total comprehensive loss (44,468,920) (20,053,575)
for the period
Restated and Amended Condensed Consolidated Interim Statements of Comprehensive
Loss
For the periods ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Note Six months ended 30 June
2011 2010
(Restated Note 15)
Revenue
66,614,625 70,561,013
Cost of sales (103,764,020) (76,551,589)
Gross loss (37,149,395) (5,990,576)
Administrative expenses 10 (14,599,479) (6,281,150)
Transaction costs - (51,030)
Other income 54,238 82,617
Operating loss (51,694,636) (12,240,139)
Finance income 427,820 583,015
Finance expense (48,331,003) (27,596,502)
Net finance expense (47,903,183) (27,013,487)
Loss before income tax (99,597,819) (39,253,626)
Income tax 17,375,230 6,139,149
Loss for the period (82,222,589) (33,114,477)
Other comprehensive
income/(loss)
Foreign currency
translation differences (7,007,453) (4,329,154)
for foreign operations
Effective portion of
changes in fair value of 1,602,501 (1,935,823)
cash flow hedges
Reclassification to profit
or loss on settlement of 2,521,654 -
cash flow hedge
Other comprehensive loss
for the period, net of (2,883,298) (6,264,977)
income tax
Total comprehensive loss (85,105,887) (39,379,454)
for the period
Loss attributable to:
Owners of the Company (46,889,058) (17,823,544)
Non-controlling interest (35,333,531) (15,290,933)
Loss for the period (82,222,589) (33,114,477)
Total comprehensive loss
attributable to:
Owners of the Company (47,167,056) (22,279,504)
Non-controlling interest (37,938,831) (17,099,950)
Total comprehensive loss (85,105,887) (39,379,454)
for the period
Restated and Amended Condensed Consolidated Interim Statements of Changes in
Equity
For the period ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the Company
Share Treasury Convertible
Capital Shares preference
shares
For the period ended 30 June
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
Share issue 63,400 - -
Total contributions by and 63,400 - -
distributions to owners
Balance at 30 June 2010 71,776,514 (4,991,726) 162,910,000
For the period ended 30 June
2011
Balance at 1 January 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 June 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 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the
Company
Foreign Share-based Hedging
currency payment reserve
translation reserve
reserve
reserve
(Restated (Restated
Note 15) Note 15)
For the period ended 30 June
2010
Balance at 1 January 2010 (9,390,899) 19,770,786 (731,293)
Total comprehensive
income/(loss) for the period
Loss for the period - - -
Other comprehensive
income/(loss)
Foreign currency translation (2,534,578) - 14,441
differences
Effective portion of changes - - (1,935,823)
in fair value of cash flow
hedges, net of tax
Total other comprehensive (2,534,578) - (1,921,382)
loss
Total comprehensive loss for (2,534,578) - (1,921,382)
the period
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Share-based payment - 926,037 -
transactions
Share issue - - -
Total contributions by and - 926,037 -
distributions to owners
Balance at 30 June 2010 (11,925,477) 20,696,823 (2,652,675)
For the period ended 30 June
2011
Balance at 1 January 2011 (5,197,843) 22,032,571 (4,124,155)
Total comprehensive
income/(loss) for the period
Loss for the period - - -
Other comprehensive
income/(loss)
Foreign currency translation (4,407,702) 5,549 -
differences
Effective portion of changes - - 1,602,501
in fair value of cash flow
hedges, net of tax
Reclassification to profit - - 2,521,654
or loss on settlement of
cash flow hedge
Total other comprehensive (4,407,702) 5,549 4,124,155
loss
Total comprehensive loss for (4,407,702) 5,549 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 - 1,640,996 -
transactions
Total contributions by and - 1,589,501 -
distributions to owners
Balance at 30 June 2011 (9,605,545) 23,627,621 -
Restated and Amended Condensed Consolidated Interim Statements of Changes in
Equity
For the period ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Attributable to equity holders of the
Company
Accumulated Total Non- Total
loss controlling
interest
(Restated (Restated (Restated (Restated
Note 15) Note 15) Note 15) Note 15)
For the period
ended 30 June
2010
Balance at 1 (111,798,092) 127,481,890 82,025,730 209,507,620
January 2010
Total
comprehensive
income/(loss)
for the period
Loss for the (17,823,544) (17,823,544) (15,290,933) (33,114,477)
period
Other
comprehensive
income/(loss)
Foreign - (2,520,137) (1,809,017) (4,329,154)
currency
translation
differences
Effective - (1,935,823) - (1,935,823)
portion of
changes in
fair value of
cash flow
hedges, net of
tax
Total other - (4,455,960) (1,809,017) (6,264,977)
comprehensive
loss
Total (17,823,544) (22,279,504) (17,099,950) (39,379,454)
comprehensive
loss for the
period
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Share-based - 926,037 - 926,037
payment
transactions
Share issue - 63,400 - 63,400
Total - 989,437 - 989,437
contributions
by and
distributions
to owners
Balance at 30 (129,621,636) 106,191,823 64,925,780 171,117,603
June 2010
For the period
ended 30 June
2011
Balance at 1 (163,519,502) 78,961,933 42,404,014 121,365,947
January 2011
Total
comprehensive
income/(loss)
for the period
Loss for the (46,889,058) (46,889,058) (35,333,531) (82,222,589)
period
Other
comprehensive
income/(loss)
Foreign - (4,402,153) (2,605,300) (7,007,453)
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 - (277,998) (2,605,300) (2,883,298)
comprehensive
loss
Total (46,889,058) (47,167,056) (37,938,831) (85,105,887)
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 - 1,640,996 - 1,640,996
payment
transactions
Total - 1,703,996 - 1,703,996
contributions
by and
distributions
to owners
Balance at 30 (210,408,560) 33,498,873 4,465,183 37,964,056
June 2011
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars)
Note Three months ended 30 June
2011 2010
Cash flows from operating
activities
Cash utilised by operations 9 (19,797,449) (2,080,046)
Interest received 186,561 255,232
Interest paid (3,030) -
Taxation paid - -
Cash utilised by operating (19,613,918) (1,824,814)
activities
Cash flows from investing
activities
Acquisition of property, plant - (1,961,027)
and equipment
Acquisition of capital-work-in- 6 (6,714,422) (4,650,009)
progress
Acquisition of intangible assets 7 (244,595) -
Proceeds on disposal of property, - 47,002
plant and equipment
Investment in environmental trusts (300,028) (668)
Cash utilised by investing (7,259,045) (6,564,702)
activities
Cash flows from financing
activities
Settlement of interest rate swap 8 (3,691,604) -
Funding loan raised - RPM 8 3,691,604 -
Long term borrowings raised - OCSF 23,722,587 10,906,147
Repayment of other loans (492,311) -
Common shares issued - -
Cash generated from financing 23,230,276 10,906,147
activities
Effect of foreign currency 91,474 143,380
translation
Net (decrease)/ increase in cash (3,551,213) 2,660,011
and cash equivalents
Cash and cash equivalents, 22,791,239 28,032,481
beginning of period
Cash and cash equivalents, end of 19,240,026 30,692,492
period
Condensed Consolidated Interim Statements of Cash Flows
For the periods ended 30 June 2011 (Continued)
(Unaudited - Expressed in Canadian Dollars)
Note Six months ended 30 June
2011 2010
Cash flows from operating
activities
Cash utilised by operations 9 (21,590,854) (5,592,729)
Interest received 331,442 515,482
Interest paid (528,340) (12,754)
Taxation paid - (299,394)
Cash utilised by operating (21,787,752) (5,389,395)
activities
Cash flows from investing
activities
Acquisition of property, plant - (1,961,027)
and equipment
Acquisition of capital-work-in- 6 (14,488,974) (8,884,890)
progress
Acquisition of intangible assets 7 (244,595) -
Proceeds on disposal of property, - 47,002
plant and equipment
Investment in environmental (300,028) (668)
trusts
Cash utilised by investing (15,033,597) (10,799,583)
activities
Cash flows from financing
activities
Settlement of interest rate swap 8 (3,691,604) -
Funding loan raised - RPM 8 3,691,604 -
Long term borrowings raised - 31,981,790 16,410,632
OCSF
Repayment of other loans (492,311) -
Common shares issued 63,000 25,800
Cash generated from financing 31,552,479 16,436,432
activities
Effect of foreign currency (1,255,694) (502,473)
translation
Net (decrease)/ increase in cash (6,524,564) (255,019)
and cash equivalents
Cash and cash equivalents, 25,764,590 30,947,511
beginning of period
Cash and cash equivalents, end of 19,240,026 30,692,492
period
Notes to the Condensed Consolidated Interim Financial Statements
For the periods ended 30 June 2011
(Unaudited - Expressed in Canadian Dollars
1. REPORTING ENTITY
Anooraq Resources Corporation (the "Company" or "Anooraq") is incorporated
in the Province of British Columbia, Canada. The condensed consolidated
interim financial statements of the Company as at and for the three and six
months ended 30 June 2011 comprise the Company and its subsidiaries
(together referred to as the "Group" and individually as "Group entities")
and the Group`s interests in associates and jointly controlled entities.
Its principal business activity is the mining and exploration of Platinum
Group Metals ("PGM") through its mineral property interests. The Company
focuses on mineral property interests located in the Republic of South
Africa in the Bushveld Complex. Anooraq operates in South Africa through
its wholly-owned subsidiary Plateau Resources (Proprietary) Limited
("Plateau") which historically owned the Group`s various mineral property
interests and conducted the Group`s business in South Africa.
2. GOING CONCERN
The condensed consolidated financial statements are prepared on the basis
that the Group will continue as a going concern which contemplates the
realisation of assets and settlement of liabilities in the normal course of
operations as they become due.
As a result of the acquisition of the operating mine in 2009, the Group
secured various funding arrangements including securing a long-term credit
facility, the Operating Cash Flow Shortfall Facility ("OCSF"), with
Rustenburg Platinum Mines Limited ("RPM") for an amount of $209.8 million
(ZAR 1,470 million). The facility is used to fund operating cash and
capital requirements for an initial period of three years. As at 30 June
2011, the Group utilised $123.8 million (ZAR 867.8 million), excluding
interest, thereof to fund operating requirements from 1 July 2009 as the
mining operations are not currently generating sufficient cash flows to
fund operations and operational projects. The Group has no obligation to
repay significant interest and capital on its outstanding loans and
borrowings during 2011 and 2012.
As a result of securing the financial resources and long-term funding,
management expects that cash flows from the mining operations and the OCSF
will be sufficient to meet immediate ongoing operating and capital cash
requirements of the Group.
3. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting. They do not
include all of the information required for full annual financial
statements, and should be read in conjunction with the consolidated
financial statements of the Group as at and for the year ended 31 December
2010. The consolidated financial statements of the Group as at and for the
year ended 31 December 2010 are available upon request from the Company`s
registered office at 82 Grayston Drive, Sandton, South Africa or at
www.sedar.com.
4. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those applied by
the Group in its consolidated financial statements as at and for the year
ended 31 December 2010, except for the following standards and
interpretations, applicable to the Group, adopted in the current financial
period:
- IAS 24 (revised), Related Party Disclosures
- Various improvements to IFRS 2010
There was no significant impact on these condensed consolidated interim
financial statements as a result of adopting these standards and
interpretations.
5. PROPERTY, PLANT AND EQUIPMENT (RESTATED NOTE 15)
Summary
Six months Year ended 31
ended 30 June December 2010
2011
Cost
Balance at beginning of period 1,032,647,854 707,131,018
Additions - 494,095
Transferred from capital work-in- 11,875,505 260,839,548
progress
Disposals (86,111) (544,766)
Adjustment to rehabilitation assets - 144,952
Effect of translation (56,669,851) 64,583,007
Balance at end of period 987,767,397 1,032,647,854
Accumulated depreciation and impairment
losses
Balance beginning of period 47,741,321 13,737,282
Depreciation for the period 21,770,099 31,397,522
Disposals (68,181) (499,587)
Effect of translation (2,455,604) 3,106,104
Balance at end of period 66,987,635 47,741,321
Carrying value (#)920,779,762 984,906,533
(#) Refer to note 15 regarding the restatement of the six 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.
Six months Year ended 31
ended 30 December 2010
June 2011
Balance at beginning of period 10,311,973 235,838,915
Additions 14,488,974 28,193,472
Transfer to property, plant and equipment (11,875,505) (260,839,548)
Capitalisation of borrowing costs 824,322 8,271,379
Impairment - (345,123)
Effect of translation (540,111) (807,122)
Balance at end of period 13,209,653 10,311,973
Capital work-in-progress is funded through cash generated from operations and
available loan facilities.
7. INTANGIBLE ASSETS
Six months Year ended
ended 30 31 December
June 2011 2010
Cost
Balance at beginning of period 3,473,000 -
Additions 244,595 3,328,100
Effect of translation (189,000) 144,900
Balance at end of period 3,528,595 3,473,000
Accumulated amortisation and impairment
losses
Balance beginning of period 192,944 -
Amortisation for the period 597,154 180,039
Effect of translation (5,966) 12,905
Balance at end of period 784,132 192,944
Carrying value 2,744,463 3,280,056
8. LOANS AND BORROWINGS (RESTATED NOTE 15)
Six months Year ended
ended 30 31 December
June 2011 2010
Senior Term Loan Facility - 93,412,907
Capitalised transaction costs - (4,251,970)
Redeemable "A" preference shares (related 419,854,010 418,050,018
party)
Rustenburg Platinum Mines - Funding loans 186,570,439 89,370,192
(related party)
Rustenburg Platinum Mines - OCSF (related 146,782,575 111,208,925
party)
Rustenburg Platinum Mines - Interest free 4,125,567 4,365,567
loan (related party)
Rustenburg Platinum Mines - commitment fees 1,308,815 1,122,854
(related party)
Other 3,162,511 3,657,869
761,803,917 716,936,362
Short-term portion
Senior Term Loan Facility - (93,412,907)
Other (918,700) (988,756)
(918,700) (94,401,663)
Non-current liabilities (#) 622,534,699
760,885,217
The carrying value of the Group`s loans and borrowings changed during the period
as follows:
Six months ended Year ended 31
30 June 2011 December 2010
Balance at beginning of the period 716,936,362 555,509,417
Rustenburg Platinum Mine - OCSF 31,981,790 39,043,300
Rustenburg Platinum Mine - Interest - 599,442
free loan
Loans repaid - (590,537)
Loans repaid - other (492,311) -
Commitment fee capitalised (245,780) (640,086)
Finance expenses accrued 44,145,063 74,436,897
Funding loan raised - Rustenburg 3,691,604 -
Platinum Mine (related party)
Capitalisation transaction costs 3,968,918 -
written-off
Amortisation of loan costs 18,360 631,929
Commitment fee liability 245,780 640,086
Interest rate swap adjustment 355,852 (354,093)
Other - 3,328,100
Effect of translation (38,801,721) 44,331,907
Balance at end of the period 761,803,917 716,936,362
Short-term portion
Senior Term Loan Facility - (93,412,907)
Other (918,700) (988,756)
(918,700) (94,401,663)
Non-current portion (#) 760,885,217 622,534,699
Senior Term Loan Facility
On 28 April 2011, the Senior Term Loan Facility with Standard Chartered Bank
("SCB") and FirstRand Bank acting through its division, Rand Merchant Bank
("RMB") was ceded to Anglo Platinum Limited ("Anglo") through its subsidiary,
Rustenburg Platinum Mines Limited ("RPM"). The outstanding interest rate swap
was settled with funding obtained from RPM.
The debt ceded to RPM has similar terms as the Senior Term Loan Facility except
for certain revisions. The revised terms of the loan is a reduction in the
interest rate from a 3 month JIBAR plus applicable margin (4.5%) and mandatory
cost (11.735% at 31 December 2010) to 3 month JIBAR plus 4% (9.575% at 30 June
2011). The total facility has been increased from $107 million (ZAR 750 million)
to $132.7 million (ZAR 930 million). The commencement of re-payments has been
deferred by one year from 31 January 2013 to 31 January 2014. RPM has also
waived the loan covenants on the debt until 30 June 2012.
Transaction costs capitalised of $4 million (ZAR 28 million) were written off to
finance expense on the cession of the Senior Term Loan Facility.
(#) Refer to note 15 regarding the restatement of the six months ended results.
9. CASH (UTILISED BY)/GENERATED FROM OPERATIONS (RESTATED NOTE 15)
Three months ended 30 June
2011 2010
Loss before income tax (#) (55,431,210) (23,281,297)
Adjustments for:
Finance expense (#) 25,078,380 17,336,496
Finance income (233,652) (283,078)
Non-cash items:
Depreciation and amortisation (#) 10,849,330 6,134,925
Equity settled share-based (#) 665,401 453,497
compensation
Impairment of assets - 336,306
Loss/(profit) on disposal of 17,929 (5,077)
property, plant and equipment
Profit and loss impact of cash flow 2,673,963 -
hedge
Other - (50,959)
Cash utilised/generated before (16,379,859) 640,813
working capital changes
Working capital changes
(Increase)/decrease in trade and (5,701,111) (5,173,384)
other receivables
Increase /(decrease) in trade and 1,528,988 714,277
other payables
Decrease/(increase) in inventories 754,533 1,738,248
Cash utilised by operations (19,797,449) (2,080,046)
Six months ended 30 June
2011 2010
Loss before income tax (99,597,819) (39,253,626)
Adjustments for:
Finance expense 48,331,003 27,596,502
Finance income (427,820) (583,015)
Non-cash items:
Depreciation and amortisation 22,367,253 12,192,443
Equity settled share-based 1,640,996 963,637
compensation
Impairment of assets - 336,306
Loss/(profit) on disposal of 17,929 (5,077)
property, plant and equipment
Profit and loss impact of cash flow 2,640,465 -
hedge
Other - (150,540)
Cash utilised/generated before (25,027,993) 1,096,630
working capital changes
Working capital changes
(Increase)/decrease in trade and 6,314,527 (4,116,199)
other receivables
Increase /(decrease) in trade and (2,561,386) (3,232,222)
other payables
Decrease/(increase) in inventories (316,002) 659,062
Cash utilised by operations (21,590,854) (5,592,729)
(#) Refer to note 15 regarding the restatement of the three and six 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 (RESTATEMENT NOTE 15)
The Group has two reportable segments as described below. These segments
are managed separately based on the nature of operations. For each of the
segments, the Group`s CEO (the Group`s chief operating decision maker)
reviews internal management reports monthly. The following summary
describes the operations in each of the Group`s reportable segments:
- Bokoni Mine - Mining of PGM`s.
- Projects - Mining exploration in Boikgantsho, Kwanda, and Ga-Phasha
exploration projects.
The majority of operations and functions are performed in South Africa. An
insignificant portion of administrative functions are performed in the
Company`s country of domicile.
The CEO considers earnings before net finance expense, income tax,
depreciation and amortisation ("EBITDA") to be an appropriate measure of
each segment`s performance. Accordingly, the EBITDA for each segment is
included in the segment information. All external revenue is generated by
the Bokoni Mine segment.
Six months ended 30 June 2011
Bokoni Mine Projects Total Note
EBITDA (22,432,972) (546,032) (#) (22,979,004) (i)
Total Assets 1,021,896,632 11,002,363 (#)1,032,898,995 (ii)
Six months ended 30 June 2010
Bokoni Mine Projects Total Note
EBITDA 1,978,836 (20,891) 1,957,945 (i)
Total Assets 1,004,266,950 11,708,140 1,015,975,090 (ii)
Three months ended 30 June 2011
Bokoni Mine Projects Total Note
EBITDA (13,976,276) (261,456) (#) (14,237,732) (i)
Three months ended 30 June 2010
Bokoni Mine Projects Total Note
EBITDA 1,165,505 (1,756) 1,163,749 (i)
2011 2010
(i)EBITDA - six months ended
EBITDA for reportable segments (22,979,004) 1,957,945
Net finance expense (47,903,183) (27,013,487)
Depreciation and amortisation (22,367,253) (12,192,443)
Corporate and consolidation adjustments (6,348,379) (2,005,641)
Consolidated loss before income tax (#) (99,597,819) (39,253,626)
EBITDA - three months ended
EBITDA for reportable segments (14,237,732) 1,163,749
Net finance expense (24,844,728) (17,053,418)
Depreciation and amortisation (10,849,330) (6,134,925)
Corporate and consolidation adjustments (5,499,420) (1,256,703)
Consolidated loss before income tax (#) (55,431,210) (23,281,297)
(ii)Total assets
Assets for reportable segments 1,032,898,995 1,015,975,090
Corporate and consolidation adjustments (17,447,436) (10,458,596)
Consolidated total assets (#) 1,015,451,559 1,005,516,494
(#) Refer to note 15 regarding the restatement of the three and six months
ended results.
12. SUBSEQUENT EVENTS
The restated and amended condensed consolidated interim financial
statements for the respective periods ended 30 September 2011 as well as
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 15)
The basic and diluted loss per share for the three and six months ended 30
June 2011 was 7 cents (2010: 3 cents) and 11 cents (2010: 4 cents)
respectively.
The calculation of basic loss per share for the three months ended 30 June
2011 of 7 cents (2010: 3 cents) is based on the loss attributable to owners
of the Company of (#) $28,244,686 (2010: $10,825,637) and a weighted
average number of shares of 424,745,795 (2010: 424,658,123).
The calculation of basic loss per share for the six months ended 30 June
2011 of 11 cents (2010: 4 cents) is based on the loss attributable to
owners of the Company of (#) $46,889,058 (2010: $17,823,544) and a weighted
average number of shares of 424,745,795 (2010: 424,658,123).
Share options were excluded in determining diluted weighted average number
of common shares as their effect would have been anti-dilutive.
(#) Refer to note 15 regarding the restatement of the three and six months
ended results.
14. HEADLINE AND DILUTED HEADLINE EARNINGS PER SHARE (RESTATED NOTE 15)
Headline earnings per share is calculated by dividing headline earnings
attributable to shareholders of the Company by the weighted average number
of ordinary shares in issue during the period. Diluted headline earnings
per share is determined by adjusting the headline earnings attributable to
shareholders of the Company and the weighted average number of ordinary
shares in issue during the period, for the effects of all dilutive
potential ordinary shares, which comprise share options granted to
employees.
Headline earnings per share
The calculation of headline loss per share for the three months ended 30
June 2011 of 7 cents (2010: 2 cents) is based on headline loss of (#)
$28,226,757 (2010: $10,494,408) and a weighted average number of shares of
424,745,795 (2010: 424,658,123).
The calculation of headline loss per share for the six months ended 30 June
2011 of 11 cents (2010: 4 cents) is based on headline loss of (#)
$46,871,129 (2010: $17,492,315) and a weighted average number of shares of
424,745,795 (2010: 424,658,123).
The following adjustments to loss attributable to owners of the Company
were taken into account in the calculation of headline loss attributable to
owners of the Company:
Three months ended 30 June Six months ended 30 June
2011 2010 2011 2010
Loss (28,244,686) (10,825,637) (46,889,058) (17,823,544)
attributabl
e to
shareholder
s of the
Company
Loss/(gain) 17,929 (5,077) 17,929 (5,077)
on disposal
of
property,
plant and
equipment
- - 336,306 - 336,306
Impairment
Headline (#) (10,494,408) (#)(46,871,129) (17,492,315)
loss (28,226,757)
attributabl
e to owners
of the
Company
Diluted headline earnings per share
The calculation of diluted headline loss per share for the three months ended 30
June 2011 of 7 cents (2010: 2 cents) is based on headline loss of (#)
$28,226,757 (2010: $10,494,408) and a weighted average number of shares of
424,745,795 (2010: 424,658,123).
The calculation of diluted headline loss per share for the six months ended 30
June 2011 of 11 cents (2010: 4 cents) is based on headline loss of (#)
$46,871,129 (2010: $17,492,315) and a diluted weighted average number of shares
of 424,745,795 (2010: 424,658,123).
Share options were excluded in determining diluted weighted average number of
common shares as their effect would have been anti-dilutive.
There are no reconciling items between headline loss and diluted headline loss.
(#) Refer to note 15 regarding the restatement of the three and six months ended
results.
15. RESTATEMENT OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE
THREE AND SIX MONTHS ENDED 30 JUNE 2011
Subsequent to the 15 August 2011 issuance of the unaudited interim
condensed consolidated financial statements for the three and six months
ended 30 June 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 six months ended 30 June 2011. As a result, the
following adjustments were identified that affected the Company`s reported
results for the three and six month period ended 30 June 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 June 2011
As previously Correction As restated
reported
Property, plant and 922,113,320 (1,333,558) 920,779,762
equipment
Total assets 1,016,785,117 (1,333,558) 1,015,451,559
Share-based payment 22,907,685 719,936 23,627,621
reserve
Accumulated loss (207,446,417) (2,962,143) (210,408,560)
Total equity 43,787,959 (5,823,903) 37,964,056
Loans and borrowings 756,021,476 4,863,741 760,885,217
Total liabilities 972,997,158 4,490,345 977,487,503
Statement of comprehensive loss for the three and six months ended 30 June 2011
Three months ended
As previously Correction As restated
reported
Cost of sales (56,204,989) (7,476) (56,212,465)
Gross loss (20,288,592) (7,476) (20,296,068)
Operating loss (30,423,899) (162,583) (30,586,482)
Finance expense (23,395,734) (1,682,646) (25,078,380)
Loss for the period (44,303,021) (1,843,135) (46,146,156)
Total comprehensive loss (42,662,245) (1,806,675) (44,468,920)
for the period
Basic loss per share (0.06) (0.01) (0.07)
Six months ended
As previously Correction As restated
reported
Cost of sales (102,440,742) (1,323,278) (103,764,020)
Gross loss (35,826,117) (1,323,278) (37,149,395)
Operating loss (49,656,971) (2,037,665) (51,694,636)
Finance expense (43,504,754) (4,826,249) (48,331,003)
Loss for the period (75,729,193) (6,493,396) (82,222,589)
Total comprehensive (78,567,579) (6,538,308) (85,105,887)
loss for the period
Basic loss per share (0.10) (0.01) (0.11)
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 15:03:03 Produced by the JSE SENS Department.
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