WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Trading Statement
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the "Company" or "Wesizwe")
TRADING STATEMENT
In accordance with paragraph 3.4(b) of the JSE Listings Requirements,
companies are obligated to inform shareholders as soon as there is a
reasonable degree of certainty that the earnings of the company are likely
to vary by more than 20% compared to the previous corresponding period.
The Wesizwe Board of Directors therefore wish to advise shareholders that
the Company expects to report a basic loss per share attributable to
ordinary shareholders for the year ended 31 December 2011 of between 22
cents and 30 cents per share, compared to a basic earnings per share of
40.87 cents per share for the previous comparable period.
A headline loss per share attributable to ordinary shareholders for the year
ended 31 December 2011 is expected to be between 24 cents and 26 cents per
share, compared to a headline loss per share of 9.78 cents for the previous
comparable period.
In the year ending December 2010, a gain on the purchase of reserves from
the discontinued Western Bushveld Joint Venture (following the conclusion of
Project Delta) amounting to R378 million was recognised whilst a share-based
payment expense of R407 million is recognised in the Statement Of
Comprehensive Income for the financial year ending 31 December 2011. The
impact of these two once-off transactions resulted in the profit in 2010 and
the exceptionally high loss in 2011.
The share-based payment expense arose in 2011 as a result of the
subscription of 829 884 460 new shares by Jinchuan, CADFund and Micawber in
Wesizwe on 4 May 2011 at an effective subscription price of R1.81 per share,
compared to a market price of R2.30 per share on the date of closure. The
shares were issued for a cash consideration of US$227 million.
The company has started development of its Bakubung Platinum Mine in the
Western Bushveld Complex and has a 26% shareholding in neighbouring Projects
1 and 3 of Maseve Investments 11 (Pty) Ltd which is also in the process of
developing a platinum group metals (PGM) mine. Consequently the company does
not expect to be profitable until these two mining projects achieve saleable
production.
The financial information included in this trading statement has not been
reviewed and reported on by the Company`s external auditors.
Johannesburg
30 March 2012
Sponsor:
PSG Capital Proprietary Limited
Date: 30/03/2012 16:15:30 Produced by the JSE SENS Department.
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