| Mon 2 Apr 2012, 17:46 | | WEZ - Wesizwe Platinum Limited - Reviewed condensed consolidated provisional |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Reviewed condensed consolidated provisional
financial results for the year ended 31 December 2011
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the "Company" or "Wesizwe")
REVIEWED CONDENSED CONSOLIDATED PROVISIONAL FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2011
Highlights
- Conclusion of the transaction with China-Africa Jinchuan Investment
Limited and Micawber 809 (Pty) Ltd resulting in the subscription of 829
884 460 new ordinary shares for an amount of US$227 million (R1 565,6
million).
- Development of the Bakubung Platinum Mine (previously known as the
Frischgewaagd-Ledig project) officially launched.
- Development of the Maseve Platinum Mine on track to commence production by
2014.
COMMENTARY
Project development
After the equity injection and associated funding commitment secured in May
2011, the Company officially launched the Bakubung Platinum Mine in July 2011
and settled its equalisation liability related to its minority shareholding in
Maseve Investments 11 (Pty) Ltd ("Maseve"). As a result of these milestones
the Company has made the full transformation from its original focus on
exploration to becoming a significant mid tier mining company.
Bakubung Platinum Mine project
Production is planned to commence by 2018 with designed annual production of
4E (3PGM + Au) averaging 350 000 ounces expected from 2023 onwards. The
Bakubung Platinum Mine ore body remains one of the best un-mined PGM deposits
in South Africa, with above-average grades. The planned mining operation will
be at an average depth of 850 metres and a very competitive operating cost is
envisaged over the 35 year life-of-mine.
The project was reviewed in detail to validate the mine design, capital budget
estimates and life of mine financial projections. The current capital budget
estimate of R7,9 billion is only marginally higher than the previous inflation
adjusted estimate and ongoing improvement is likely to be derived from the
redesign and continuous process improvement on the concepts. The current year
expenditure on this project related predominantly to the Engineering,
procurement and Construction Management ("EPCM") and other consultants costs
relating to early works, cost of this validation, tender processes and the
required site establishment, earth and civil works in preparation to commence
with shaft sinking. Capital commitments relating to mine development amounted
to R305 million at year end.
The provision of bulk supplies (power and water) is on schedule and the
necessary supporting guarantees have been provided. The owner`s team and the
EPCM contractor were secured and appointed. The successful sinking contractor
Aveng Grinaker-LTA was announced on 28 March 2012 with the order to be placed
on Thursday 5 April 2012 to commence work on site as soon as possible.
The Company`s management is continuing to evaluate potential infrastructure
synergies with the mine`s neighbours and will focus on achieving continuous
improvement.
Maseve Platinum Mine project
The project being developed by Maseve, under the management of the majority
shareholder, Platinum Group Metals (RSA) (Pty) Ltd ("PTM"), is expected to
commence production by 2014 and reach full production of 275 000 ounces per
annum of 4E (3PGM + Au) by 2019.
Funding
The Company received an equity injection of US$227 million (R1 565,6 million)
by means of allotting 732 522 177 ordinary shares to China-Africa Jinchuan
Investment Limited ("China-Africa Jinchuan") and 97 362 283 ordinary shares to
Micawber 809 (Pty) Ltd ("Micawber") for a subscription price of US$200 368 295
and US$26 631 705 respectively. This transaction also resulted in a share-
based payment expense and a related exchange rate gain that is reflected in
the financial reports. China-Africa Jinchuan is the nominated shareholder of
the Chinese Consortium comprising the Jinchuan Group Limited ("Jinchuan" or
"JNMC") and China-Africa Development Fund ("CADFund") and are the parties to
the subscription agreement in terms of which the shares were issued and in
terms of which the Chinese Consortium undertakes to provide the additional
funding that may be required in order to achieve operational completion of the
Bakubung Platinum Mine project. As such, the current Wesizwe shareholders will
not be called upon to provide further funding or be subject to dilution. This
funding will be provided either by JNMC and CADFund directly or through the
provision of third party funding on terms similar to those of the funding to
be provided by the China Development Bank. To this end a facility of US$650
million with China Development Bank is in the process of being set up with
reference to the relevant term sheets. The Company is committed to a fee of 1%
on the additional funding when it is actually received in cash.
PTM exercised its option, in terms of the shareholders` agreement, to
subscribe for additional shares in Maseve and caused Wesizwe`s effective share
in Maseve to be diluted from 45,25% down to 26% and resulted in the
recognition of a loss on dilution in Maseve (equity accounted investee) of
R9,2 million. In terms of the shareholders` agreement Wesizwe will not be
required to make further cash contributions towards the project until PTM has
contributed a total of R1,57 billion in cash for the development of the
project. Any remaining balance of funding required will have to be provided by
shareholders proportionally to shareholding but it is currently envisaged that
this funding will be secured as loan funding from financial institutions.
Financial overview
The Group recorded a loss before tax amounting to R372 million (2010 - profit
of R304 million). These results takes account of operational cost amounting to
R69 million (2010 - R87 million) and net financial income amounting to R45
million (2010 - R394 million) and the cost related to equity financing
amounting to R347 million (2010 - R3 million) as presented in more detail in
the condensed group statement of comprehensive income.
Community issues
Challenges continue to be present in the Community largely due to a long
standing leadership vacuum. Despite this, Wesizwe continues to be committed to
sustainable community development and empowerment. Our strategic intent is to
restore community confidence in Wesizwe as a business partner and have made
significant contributions to the Community and the resolution and
formalisation of the communities` affairs. The Company acknowledges the
Community as one of its important stakeholders and strives to have a healthy
relationship with the Community. To this end, Wesizwe conducted a community
stakeholder perception survey to probe perceptions of the Ledig community on
the mine project being developed in Ledig. The feedback received is used to
formulate future interaction and plans.
Directorate and changes to the board
There were a number of significant changes to the Wesizwe board during the
course of 2011. In accordance with the terms and conditions of the transaction
between Jinchuan, CADFund, Micawber and China-Africa Jinchuan, Mr Dexin Chen,
Mr Jianke Gao, Mr Jikang Li, Mr Wenliang (Michael) Ma, Mr Lincoln (James)
Ngculu, Mr Liliang Teng and Mr Qiyin (James) Zhang were appointed to the board
on 4 May 2011. To facilitate these board changes, Prof Peter Gaylard and Mr
Jacques de Wet resigned as directors of the company at the same meeting. Mr
Rob Rainey, Mr Mike Solomon and Mr Julian Williams stepped down from the board
during the course of the year.
Mr Arthur Mashiatshidi resigned as chief executive officer in May 2011 but
stayed on as Joint Chief Executive Officer with Mr Qiyin (James) Zhang until
Mr Jianke Gao officially assumed the position on 2 August 2011. Mr Wenliang
(Michael) Ma`s appointment as finance director was confirmed on 23 August
2011. Mr Mlibo Mgudlwa resigned from his position as corporate affairs
executive director, and remains on the board as a non-executive director. Mr
Arthur Mashiatshidi resigned as a non-executive director of the company with
effect from 19 September 2011. Prof Wiseman Nkuhlu and Prof Robert Garnett
were appointed as independent non-executive directors of the Company with
effect from 17 October 2011.
Sadly, Mr Arthur Mashiatshidi passed away in February 2012. The board
expresses its sincere condolences to his family and friends.
Condensed consolidated provisional statement of financial
positionat 31 December 2011
Group Group
2011 2010
Notes R`000 R`000
ASSETS
Non-current assets 2 664 691 2 516 054
Property, plant and equipment 6 1 734 383 1 583 551
Available-for-sale financial 13 760 10 283
asset
Investment in equity accounted 7 916 548 922 220
investee
Current assets 1 276 472 56 237
Other receivables 30 128 9 271
Taxation 9 544 -
Loan to the Bakubung community 8 - 8 257
Restricted cash 9 69 307 27 852
Cash and cash equivalents 1 167 493 10 857
Total Assets 3 941 163 2 572 291
Equity and liabilities
Capital and reserves 3 625 222 2 105 860
Share capital 10 16 8
Share premium 11 3 425 528 1 955 159
Share-based payment reserve 12 472 179 65 384
Available-for-sale financial 1 529 1 012
asset reserve
(Accumulated loss)/retained (274 030) 84 297
earnings
Non-current liabilities 281 362 290 113
Deferred tax liability 13.1 268 775 290 113
Decommissioning provision 14 12 587 -
Current liabilities 34 579 176 318
Trade and other payables 33 299 22 214
Bridging loan 15 - 33 270
Equalisation liability 16 - 120 834
Taxation 1 280 -
Total Equity and Liabilities 3 941 163 2 572 291
Condensed consolidated provisional statement of comprehensive
income
for the year ended 31 December 2011
Group Group
2011 2010
Notes R`000 R`000
Operations
Administration expenses (51 895) (50 024)
Advisors` fees and commissions - (27 816)
Exploration and evaluation - (1 787)
expenditure
Impairment of loan to Bakubung 8 (8 257) -
community
Impairment of mineral rights - (7 721)
Loss on dilution of interest in 7 (9 187) -
equity accounted investee
Net operating costs (69 339) (87 348)
Financial
Interest income 46 255 6 122
Profit/(loss) of associate 7 3 515 (2 640)
Gain on purchase of investment in - 378 083
WBJV
Drawdown facility charges - (5 035)
Foreign exchange (loss)/gain 16 (4 666) 17 878
Interest expense (486) (522)
Net financial income 44 618 393 886
(Loss)/profit from operations (24 721) 306 538
Equity financing
Share-based payment expense 12 (408 002) (2 802)
Foreign exchange gain on proceeds 17 60 585 -
Net equity financing costs (347 417) (2 802)
(Loss)/profit before tax (372 138) 303 736
Income tax expense 13.2 13 811 (4 862)
(Loss)/profit for the year (358 327) 298 874
Increase in fair value of 517 286
available-for-sale asset
Total comprehensive (loss)/income (357 810) 299 160
for the year
(Loss)/earnings per share
Basic (loss)/earnings per share 22 (26,58) 40,87
(cents)
Diluted (loss)/earnings per share 22 (26,58) 40,85
(cents)
Condensed consolidated provisional statement of changes in equity
for the year ended 31 December 2011
Share Share Available-
capita premium for-sale
l reserves
R`000 R`000 R`000
Balance at 1 January 2010 6 1 489 091 726
Total comprehensive income for
the year
Profit for the year - - -
Other comprehensive income - - 286
- - 286
Transactions with owners recorded
directly in equity
Issue of shares 2 466 068 -
Share-based payment expense - - -
2 466 068 -
Balance at 31 December 2010 8 1 955 159 1 012
Total comprehensive loss for
the year
Loss for the year - - -
Other comprehensive income - - 517
- - 517
Transactions with owners recorded
directly in equity
Issue of shares 8 1 505 002 -
Share issue expenses - (34 633) -
Share-based payment expense - - -
8 1 470 369 -
Balance at 31 December 2011 16 3 425 528 1 529
Condensed consolidated provisional statement of changes in equity
(continued)
for the year ended 31 December 2011
Share (Accumu- Total
based lated
payment loss)/
reserve retained
earnings
R`000 R`000 R`000
Balance at 1 January 2010 62 582 (214 577) 1 337 828
Total comprehensive income for
the year
Profit for the year - 298 874 298 874
Other comprehensive income - - 286
- 298 874 299 160
Transactions with owners recorded
directly in equity
Issue of shares - - 466 070
Share-based payment expense 2 802 - 2 802
2 802 - 468 872
Balance at 31 December 2010 65 384 84 297 2 105 860
Total comprehensive loss for
the year
Loss for the year - (358 327) (358 327)
Other comprehensive income - - 517
- (358 327) (357 810)
Transactions with owners recorded
directly in equity
Issue of shares - - 1 505 010
Share issue expenses - - (34 633)
Share-based payment expense 406 795 - 406 795
406 795 - 1 877 172
Balance at 31 December 2011 472 179 (274 030) 3 625 222
Condensed consolidated provisional statement of cash flows
for the year ended 31 December 2011
Group Group
2011 2010
Notes R`000 R`000
Cash flows from operating 21 (60 109) (89 637)
activities
Finance income received 26 068 6 122
Finance cost paid (156) (9)
Taxation paid (15 791) -
Cash utilised in operations (49 988) (83 524)
Cash flows utilised by investing
activities
Acquisition of property, plant and (139 571) (41 945)
equipment as a result of
increasing operations
Loan advanced to associate - (7 279)
Recovery of intangible exploration - 10 346
and evaluation expenditure
Purchase of available-for-sale (2 960) (2 835)
financial asset
Loan advanced (1 439) (8 257)
Proceeds on disposal of property, - 47
plant and equipment
Net cash outflow from investing (143 970) (49 923)
activities
Cash flows from financing
activities
Capital raised from issue of 1 565 595 -
shares
Share issue expenses (34 633) -
Bridging loan raised 17 800 33 270
Bridging loan repaid (51 070) -
Equalisation liability repaid (125 830) -
Net cash inflow from financing 1 371 862 33 270
activities
Net increase/(decrease) in cash 1 177 904 (100 177)
and cash equivalents
Cash at the beginning of the year 38 709 138 886
Cash at the end of the year 1 216 613 38 709
Cash at the end of the year
comprises:
Restricted cash 69 307 27 852
Bank balances 1 147 306 10 857
Cash at end of year 1 216 613 38 709
Interest accrued 20 187 -
1 236 800 38 709
Notes to the condensed consolidated provisional financial results
for the year ended 31 December 2011
1. Reporting entity
Wesizwe Platinum Limited ("Wesizwe" or "the Company") is a company
domiciled in the Republic of South Africa. The condensed consolidated
provisional annual financial results as at 31 December 2011 comprise
the Company, its subsidiaries and the Group`s interest in its equity
accounted investee (together referred to as the "Group"). The
consolidated financial statements of the Group for the year ended 31
December 2010 are available upon request from the Company`s registered
office at Unit 13, 2nd Floor, 3 Melrose Boulevard, Melrose Arch,
Johannesburg, 2076 or at www.wesizwe.com.
2. Statement of compliance
The condensed group provisional annual financial results are prepared
in accordance with the recognition and measurement principles of
International Financial Reporting Standards and presented in accordance
with the minimum content, including disclosures, prescribed by IAS 34
Interim Financial Reporting applied to year end reporting, and South
African Statements and Interpretations of Statements of Generally
Accepted Accounting Practice (AC 500 Series) and the Companies Act,
2008, of South Africa.
3. Independent review
The condensed group provisional annual results of Wesizwe Platinum
Limited for the year ended 31 December 2011 have been reviewed by the
Company`s auditor, KPMG Inc. In their review report dated 2 April 2012,
which is available for inspection at the Company`s registered office,
KPMG Inc state that their review was conducted in accordance with the
International Standard on Review Engagements 2410, Review of Interim
Information Performed by the Independent Auditor of the Entity, which
applies to a review of group provisional financial information, and
have expressed an unmodified conclusion on the condensed group
provisional annual financial results.
4. Significant accounting policies
The accounting policies applied by the Group in the condensed group
provisional financial results are the same as those applied by the
Group in its consolidated financial statements for the year ended 31
December 2010.
5. Estimates
The financial reports and commentary in this provisional report contain
information and is based on calculations that require management to
make judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
In preparing the condensed group provisional financial results, the
significant judgements made by management in applying the Group`s
accounting policies and the key sources of estimation, except as listed
below, were the same as those that applied to the consolidated
financial statements for the year ended 31 December 2010. Management
engaged the services of various professional research and forecasting
experts, including that of SFA (Oxford) Limited for product prices to
prepare projections and forecasts regarding future economic outlook,
exchange rates and product prices.
The following economic parameters were assumed:
US$ exchange rate (ZAR) 8.50
Pt price (US$/oz) 2 000
Pd price (US$/oz) 760
Rh price (US$/oz) 5 900
Au price (US$/oz) 1 400
MR basket price (US$/oz) 1 926
Discount rate/Weighted Average Cost of Capital (%) 8.20
(Real)
Management acknowledges that the ZAR/US$ exchange rate and commodity
prices have been volatile and movements would have an impact on the
values as determined by management. Management is of the opinion that,
given the fact that the NAV of the mining assets at year-end were below
the determined fair values, the assets of the Group are not impaired. A
6.5% reduction, changing the MR basket price from US$1 926/oz to US$1
800/oz will result in the determined fair value approximating the NAV.
6. Property, plant and equipment
Mine Other Total
Assets
R`000 R`000 R`000
Balance at 1 January 2010 121 208 9 785 130 993
Additions and transfers 1 454 238 234 1 454
472
Disposals - (47) (47)
Depreciation (354) (1 513) (1 867)
Balance at 31 December 1 575 092 8 459 1 583
551
Additions (including 151 679 479 152 158
decommissioning asset)
Depreciation (293) (1 033) (1 326)
Balance at 31 December 2011 1 726 478 7 905 1 734
383
7. Investment in equity accounted investee
Group Group
2011 2010
R`000 R`000
Opening balance 922 220 668 732
Equalisation liability transferred to 140 236
current liabilities
Adjustment to equalisation liability (2 037)
Acquisition of prospecting rights at 143 730
fair value
Deferred taxation on prospecting rights (40 244)
Gain on bargain purchase of previously 9 950
held 26% interest
Deferred taxation on gain on bargain (2 786)
purchase
Additional net cash call 7 279
Share of profit/(loss) in associate 3 515 (2 640)
Loss on dilution of interest in equity (9 187) -
accounted investee
Closing balance 916 548 922 220
8. Impairment of loan to the Bakubung
community
Group Group
2011 2010
R`000 R`000
Opening balance 8 257 -
Loan advance - 8 257
Impairment (8 257) -
Closing balance - 8 257
As previously reported, the Company was requested by the DMR to
assist the Community and the Royal Family in their efforts to
obtain proper accounting for the community`s assets in relation
to Wesizwe. Consequently, funds were advanced by way of direct
payment to service providers. In 2010 the courts made a ruling
in favour of the Community that the cost of legal proceedings
be paid by the respondents.
In evaluating the recoverability of the loan, Management is of
the opinion that the recoverability within the next 6 to 12
months is doubtful and, in adopting a conservative approach,
has accordingly impaired the loan for accounting purposes.
9. Restricted cash
Group Group
2011 2010
R`000 R`000
Department of Mineral Resources - 27 370 27 000
Rehabilitation provision
Landlord - Operating lease agreement 896 852
Eskom - Connection guarantees 31 791 -
Transferring attorneys - Purchase of land 9 250 -
Total 69 307 27 852
Call and short-term deposits have been encumbered as a result
of issuing the above guarantees.
10. Share capital
Group Group
2011 2010
R`000 R`000
Authorised
2 000 000 000 (2010: 1 500 000 000) 20 15
ordinary shares of R0.00001 each
Issued
1 627 827 058 ordinary shares of 16 8
R0.00001 each
(2010: 797 942 598 ordinary shares of
R0.00001 each)
On 4 May 2011 the company issued 829 884 460 ordinary shares
at a price per share of R1.81.
The holders of ordinary shares are entitled to receive
dividends as declared from time to time and are entitled to
one vote per share at meetings of the Company.
There are no unissued ordinary shares under the control of the
directors.
11. Share premium
Group Group
2011 2010
R`000 R`000
Opening balance 1 955 159 1 489 091
Premium on issue of 211 850 125 shares - 466 068
Premium on issue of 829 884 460 shares 1 505 002 -
Share issue expenses (34 633) -
Closing balance 3 425 528 1 955 159
12. Share-based payment reserve
Group Group
2011 2010
R`000 R`000
Opening balance 65 384 62 582
406 795 2 802
Share-based payment expense - share 1 359 2 802
incentive scheme
Share-based payment expense on issue of 406 643 -
shares
408 002 2 802
Option exercised in terms of LTIP share (1 207) -
scheme
Closing balance 472 179 65 384
- The share-based payment expense of R406,6 million relates to
an IFRS 2 adjustment for the specific issue of 829 884 460
shares for cash. The issue price was set at R1.81. The closing
price on 3 May 2011, which represents the fair value of the
Wesizwe share was R2.30. The difference between the fair value
at the date of mutual understanding and the strike price
represents the share-based payment expense.
- Share-based payment expenditure of R1,4 million represents the
IFRS2 expense for the Long Term Incentive Plan ("LTIP") and
Share Appreciation Rights Scheme ("SARS").
- The R1,2 million represents the recognition of the options
exercised in terms of the LTIP share scheme.
13. Taxation
13.1 Deferred taxation
Group Group
2011 2010
R`000 R`000
Opening balance 290 113 -
Current year changes (21 338) 290 113
Unrealised exchange rate gains - 4 862
Realised exchange rate gains (4 862) -
Acquisition of joint venture (WBJV) 285 251
Tax losses (16 476) -
Closing balance 268 775 290 113
13.2 Income tax expense
Group Group
2011 2010
R`000 R`000
Current year - normal taxation (7 527) -
Current year - deferred taxation 21 338 (4 862)
Total 13 811 (4 862)
14. Environmental rehabilitation obligation
This long-term obligation reflects the estimated future costs
of closure, restoration and environmental rehabilitation
(which include the dismantling and demolition of
infrastructure, removal of residual materials and remediation
of disturbed areas) in the accounting period when the related
environmental disturbance occurs. An estimate is made of the
escalated future rehabilitation cost based on environmental
plans in accordance with current technology, environmental and
regulatory requirements and is discounted using a pre-tax risk-
free rate that reflects current market assessments of the time
value of money. At the time of establishing the provision, a
corresponding asset is recognised and depreciated over the
future life of the asset to which it relates. The provision is
re-assessed on an annual basis for changes in cost estimates,
discount rates and useful lives.
15. Bridging loan
Group Group
2011 2010
R`000 R`000
Opening balance 33 270 -
Bank of China drawdown facility 17 800 33 270
Settlement of liability (51 070) -
Closing balance - 33 270
The facility was used for the ongoing capital development of
the Bakubung Platinum Mine. Interest was payable monthly at
Jibar +250 basis points and was settled following the
successful conclusion of the China-Africa Jinchuan and
Micawber transaction.
16. Equalisation liability
Group Group
2011 2010
R`000 R`000
Opening balance 120 834 -
Equalisation liability transferred from - 140 236
investment in equity accounted investee
Adjustment of liability following - (2 037)
agreement to fix the liability in US$
terms
Interest 330 513
Exchange rate fluctuation 4 666 (17 878)
Settlement of liability (125 830) -
Closing balance - 120 834
The equalisation liability was settled on 20 May 2011. The
final amount settled included interest due up to the payment
date and an exchange rate adjustment.
17. Gain on foreign exchange rate fluctuation
On 4 May 2011 829 884 460 shares were issued for a cash
consideration of US$227 million. On the day of subscription,
the ZAR/US$ exchange rate traded at an average of R6.63. The
foreign exchange was converted over a period of 30 days and
was converted at an average exchange rate of R6.90, realising
an exchange gain of R60,6 million. The total cash introduced
amounted to R1 565,6 million resulting in cash and cash
equivalents reflecting a significant increase.
18. Mineral resources
There was no change to the mineral resources for the year
ended 31 December 2011.
19. Segment reporting
No segment reporting has been produced as the Group is
conducting activities in one geological location which
represents its only business activity.
An operating segment is a component of the Group that engages
in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to
transactions with any of the Group`s other companies. The
operating results for the Group as a whole are reviewed
regularly by the Group`s CEO to make decisions about resources
to be allocated and to assess its performance.
20. Subsequent events
There were no events that occurred after the reporting period
that requires further disclosure in these financial results.
21. Reconciliation of (loss)/profit for the period to cash flows
from operating activities
Group Group
2011 2010
R`000 R`000
(Loss)/profit from operations (24 721) 306 538
after taking the following into
account:
Interest income* (46 255) (6 122)
Profit/(loss) of associate (3 515) 2 640
Interest expense 486 522
(Loss)/profit from operations (74 005) 303 578
Adjustments for:
- Depreciation 1 326 1 867
- Gain on bargain purchase - (378 083)
- Loss on dilution of interest in 9 187 -
equity accounted investee
- Loss/(Profit) on re-measurement 4 666 (17 878)
of liability denominated in a
foreign currency
- Impairment of mineral rights - 7 721
- Impairment of loan to Bakubung 8 257 -
community
- Share-based payment expense (1 207) -
Operating loss before working (51 776) (82 795)
capital changes
Changes in working capital (8 333) (6 842)
Increase in other receivables (19 418) (4 401)
Increase/(decrease) in trade and 11 085 (2 441)
other payables
Cash flow from operating (60 109) (89 637)
activities
22. (Loss)/earnings per share
Group Group
2011 2010
The basis of calculation of
basic (loss)/earnings per share
is:
Attributable (loss)/profit to (358 326 233) 298 873 679
ordinary shareholders (Rand)
Weighted average number of 1 348 167 363 731 195 298
ordinary shares in issue
(shares)
Basic (loss)/earnings per share (26,58) 40,87
(cents)
The basis of calculation of
diluted (loss)/earnings per
share is:
Attributable (loss)/profit to (358 326 233) 298 873 679
ordinary shareholders (Rand)
Adjusted weighted average 1 348 167 363 731 611 765
number of ordinary shares in
issue (shares)
Weighted average number of 1 348 167 363 731 195 298
ordinary shares in issue
(shares)
LTIP and SARS outstanding - 416 467
Diluted (loss)/earnings per (26,58) 40,85
share (cents)
The basis of calculation of
headline loss and diluted
headline loss per share is:
Attributable (loss)/profit to (358 326 233) 298 873 679
ordinary shareholders (Rand)
17 444 287 (370 362 219)
Impairment of loan to Bakubung 8 257 330 -
community
Impairment of mineral rights - 7 720 825
Gain on bargain purchase - (378 083 044)
Loss on dilution of interest in 9 186 957 -
equity accounted investee
Headline loss (340 881 946) (71 488 540)
Weighted average number of 1 348 167 363 731 195 298
ordinary shares in issue
(shares)
Headline loss and diluted (25,28) (9,78)
headline loss per share (cents)
Calculation of weighted average number of shares:
Date of Description Number of Number of Weighted
share shares days average
Issues issued in issue number of
shares
01 January Opening balance 797 942 365 797 942 598
2010 598
04 May Shares issued 829 884 242 550 224 765
2011 460
Total 1 627 827 1 348 167 363
058
Preparation
The financial statements have been prepared under the supervision of the
Finance Director, Mr Wenliang (Michael) Ma.
Going forward
While Wesizwe remains focused on the development of the projects reported on,
the board has initiated the formalisation of the company`s vision and the
finalisation of a longer term strategic plan that will be communicated after
the board approval.
Shareholders are advised that the reviewed condensed consolidated provisional
financial results will be published in the Business Day and Burger newspapers
and will also be posted to shareholders on 3 April 2011.
By order of the Board:
Dawn Mokhobo (Chairman) Jianke Gao (Chief Executive Officer)
Sponsors: PSG Capital Proprietary Limited
Directors: DNM Mokhobo (Chairman)*, D Chen (Deputy Chairman)*#, J Gao (Chief
Executive Officer)#, W Ma (Financial Director)#, WM Eksteen*, J Li#, RP
Garnett*, MG Mgudlwa*, LV Ngculu*, LW Nkuhlu*, L Teng*#, BJ van der Merwe*, Q
Zhang*#
*Non Executive #Chinese
Company secretary: S van Schalkwyk
Registered address: Unit 13, 2nd Floor, 3 Melrose Boulevard, Melrose Arch,
2076.
www.wesizwe.com
Date: 02/04/2012 17:46:40 Produced by the JSE SENS Department.
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