| Fri 1 Jun 2012, 8:38 | | PLL - Platfields - Provisional Audited Condensed Consolidated Results for the |
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PLL
PLL
PLL - Platfields - Provisional Audited Condensed Consolidated Results for the
year ended 29 February 2012
Platfields Limited
("Platfields" or "the Company" or "the Group")
Incorporated in the Republic of South Africa,
(Registration number 2002/005851/06)
Share code: PLL
ISIN: ZAE000151825
Provisional Audited Condensed Consolidated Results
for the year ended 29 February 2012
COMMENTARY
Platfields operational review
- The Board of Platfields announces decreased losses compared to the previous
year, as explained below in Financial Commentary;
- New Order Prospecting Rights were granted as explained below in Resources;
- The appointment of 3 independent non-executive directors addressing both the
King III and Companies Act requirements leading to improved corporate governance
and providing wider experience to the Board of Platfields.
Platfields exploration activity has largely been on care and maintenance during
the current year with the focus being on the Liger Projects` preparation for a
Mining Right Application and settlement of overlapping rights. Key to operations
during the current financial year was a cash preservation plan which aimed at a
careful deployment of available cash reserves to essential line items and
implementation of Platfields` pipeline strategy.
Platfields has pursued and is embarking on a systematic growth strategy through
seeking strategic acquisitions in operational and cash positive businesses, and
in this regard has investigated and is continuing to investigate, various
potential business arrangements both within Platfields and externally in both
the precious metals and other sectors.
Platfields had a challenging year in a depressed market that continues to be
subdued by various factors explained below in Share Price Performance.
Financial commentary
Platfields is still in the exploration phase of its development and does
therefore not yet generate any cash from its activities.
The Group made a net loss for the current financial year of R11,3 million
compared to a loss of R73 million for the previous financial year. There have
been no further impairments on any of the Platfields Projects and with the BEE
share scheme being finalised and implemented, resulting in a large decrease in
the reported loss for the current financial year. Exploration expenditure of
R521,977 on the Projects relates primarily to Projects` care and maintenance.
No dividends are paid or proposed for the year.
Share price performance
Since listing, the share price has declined to levels well below the Company`s
intrinsic value. The current share price levels are not representative of the
value of Platfields and the Board is hopeful that as the markets improve so will
the market valuation of the Company. The decline in the share price is in line
with sector sentiment and the performance of most platinum stocks in the wake of
the fundamental economic conditions including the financial turmoil in the
European Union, the delayed US recovery and its effect on the car manufacturing
sector, the slowdown in China, the volatility of metal prices alongside the
USD/ZAR exchange rates and, the 2011 Japanese earthquake and its effects on auto
catalytic converter demand. This volatility is expected to continue which will
continue to make trading conditions difficult and may complicate Platfields
objective of raising financing in the short-to medium-term.
Platfields currently offers a highly discounted entry into the platinum sector
with one of its prospects being a shallow prospect targeting some 5m/oz 4PGE and
other PGM prospects in South Africa.
Resources
The focus was on conceptual mine studies and raising capital to further the
understanding of the extent of the ore body over Leeuwkop.
Platfields was granted an additional prospecting right over portions 4, 5 and 39
of the 27 farm Kliprivier 73 JT, which will enhance the Berg Project. The new
rights are over shallower parts of the Berg and abuts the Everest South
operation.
Mineral assets
The Platfields Mineral Resource Statement prepared by the Independent Competent
Person, Minxcon (Pty) Ltd, has been updated during the current year for the
effects of certain prospecting rights which have not been renewed.
Funding and going concern
The financial statements have been prepared on the basis of accounting policies,
applicable to a going concern. This basis presumes that funds will be available
to finance future operations and that the realisation of assets and settlement
of liabilities, contingent obligations and commitments will occur in the
ordinary course of business. As is common with many junior mining companies, the
Group raises capital for exploration and other projects. There can be no
assurance that the Group`s projects will be fully developed in accordance with
current plans or completed on time or within budget. As the Group is not yet in
a cash-generating position, its exploration programme is still funded by equity.
The Group is currently raising capital in order to complete its exploration
programme on the Leeuwkop Project. The directors draw your attention to the fact
that the Company`s future prospects and stability relies on its ability to raise
capital for the ensuing financial year.
Future work on the development of the Group`s projects may be adversely affected
by factors outside the control of the Group.
Share capital
The company currently has 789,597,005 shares in issue. No shares were issued
during the current financial year.
Directors
The directors in office during the financial year under review were:
Dr James Thokoana Motlatsi Chairman (non-executive)
Derrick Bongani Mbindwane Chief Executive Officer
Annelise Cilliers, CA(SA) Financial Director
Seth Malefetsane Radebe, CA(SA) Independent non-executive director
(appointed 5 May 2011)
Roy Stavely Traviss Non-executive director
(resigned 8 February 2012)
Neville Hawthorn Cornish Non-executive director
(retired 4 March 2011)
Ulrich Schackerman Non-executive director
(resigned 29 March 2011)
The following directors were appointed subsequent to the year-end:
Debbie Ntombela Independent non-executive director
(appointed 12 April 2012)
Dr Zuko Kubukeli Independent non-executive director
(appointed 12 April 2012)
Adv Heinrich Jansen van Rensburg Independent non-executive director
(appointed 12 April 2012)
Merchantec (Proprietary) Ltd was appointed as the Company Secretary on 31 July
2011 and Probity Business Services (Proprietary) Ltd resigned on the same date.
Subsequent events
Platfields entered into a settlement with Rustenberg Platinum Mines Limited, a
100% owned subsidiary of Anglo American Platinum Limited ("Amplats") over an
overlapping prospecting right issued to Platfields over the farm Tigerpoort 426
KS, whereas the dispute was settled by Platfields agreeing to subdividing the
prospective area with Amplats holding their prospect area and Platfields
retaining its area of the same farm.
Prospects
Platfields remains confident that it will raise sufficient cash to progress the
next phase of its exploration programme.
Platfields` primary focus in the immediate future is on raising capital and
conducting additional exploration in relation to the Leeuwkop Project. It
intends to continue conducting mining studies over Leeuwkop, a shallow stand
alone portion of the Liger Project, with the goal of proceeding to a mining
right application in the short-to medium-term.
Signed on behalf of the board:
JT Motlatsi DB Mbindwane
Chairman Chief Executive Officer
1 June 2012
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
29 February 28 February
2012 2011
Figures in Rand Audited Audited
ASSETS
Non-current assets
Exploration assets 56,690,146 56,690,146
Current assets
Other receivables 431,007 132,786
Cash and cash equivalents 7,026,254 19,574,675
7,457,261 19,707,461
TOTAL ASSETS 64,147,407 76,397,607
EQUITY AND LIABILITIES
Shareholders equity 28,539,439 39,879,565
Non-current liability
Long-term liability 34,862,386 31,983,840
Current liabilities
Current portion of long-term liability - 2,000,000
Trade and other payables 745,582 2,534,202
745,582 4,534,202
TOTAL EQUITY AND LIABILITIES 64,147,407 76,397,607
Net asset value per share 4 5
Net tangible asset value per share (4) (2)
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
29 February 28 February
2012 2011
Audited Audited
Figures in Rand
Operating activities (10,548,421) (18,078,524)
Investing activities - (40,000,000)
Financing activities (2,000,000) 39,742,850
Total movement (12,548,421) (18,335,674)
Cash and cash equivalents at the beginning
of the year 19,574,675 37,910,349
Total cash and cash equivalents at the
end of the year 7,026,254 19,574,675
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
29 February 28 February
2012 2011
Audited Audited
Figures in Rand
Exploration expenditure (521,977) (1,721,946)
General and administration expenses (8,765,119) (14,776,501)
Operating loss (9,287,096) (16,498,447)
Interest and investment income received 825,516 2,189,034
Loss from operations (8,461,580) (14,309,413)
Impairment - (47,395,633)
BEE share transaction (fair value) - (17,020,266)
Notional interest (2,878,546) 6,016,160
Share-based payments (fair value) - (321,930)
Loss for the year/Total comprehensive
loss for the year (11,340,126) (73,031,082)
Loss per share (cents) 1.44 10.97
Less: Impairment of exploration assets (cents) - 7.12
Headline loss per share (cents) 1.44 3.85
Diluted loss per share (cents) 1.44 10.96
Diluted headline loss per share (cents) 1.44 3.85
Reconciliation of headline loss and loss
The calculation of the headline loss
per share is based on a loss of:
- attributable loss after tax (11,340,126) (73,031,082)
- impairment of exploration assets - 47,395,633
Headline loss (11,340,126) (25,635,449)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
29 February 28 February
2012 2011
Audited Audited
Figures in Rand
Balance at the beginning of the year 39,879,565 95,985,291
Issue of shares for cash - 2,850
Share issue expenses - (260,000)
BEE share scheme (fair value) - 16,860,576
Share-based payments (fair value) - 321,930
Total comprehensive loss for the year (11,340,126) (73,031,082)
SHAREHOLDERS` EQUITY 28,539,439 39,879,565
NOTES
1. Basis for preparation and accounting policies
The Consolidated Annual Financial Statements have been prepared in accordance
with International Financial Reporting Standards (IFRS), IAS 34, and the
Companies Act of South Africa, the JSE Listings Requirements and the AC500
Series of Interpretations. The Consolidated Annual Financial Statements have
been prepared on the historical cost basis, unless otherwise stated.
The accounting policies applied in preparing this report, which are based on
reasonable judgements and estimates, are in accordance with International
Financial Reporting Standards ("IFRS") and are consistent with those applied in
the previous year.
These audited results have been prepared by Annelise Cilliers, CA(SA) and have
been audited by PKF (Jhb) Inc. and their report is available for inspection at
the registered office of Platfields.
Auditor`s report
The Group`s condensed Consolidated Annual Financial Statements for the year
ended 29 February 2012 have been audited by the Group`s auditors, PKF (Jhb) Inc.
The unqualified auditors` report on the Group`s Condensed Consolidated Annual
Financial Statements will be available for inspection at the Group`s registered
office.
2. Projects
The Leeuwkop Project
The Leeukop Project consists of a single new order prospecting right over the
farm Leeuwkop 425 KS which is situated in the Sekhukhune Magisterial District in
the Limpopo Province, South Africa. The prospecting right is for Platinum Group
Metals ("PGM") at the north-western end of the Eastern Limb of the Bushveld
Complex. The current value of the Leeuwkop Project is estimated at R60 million
(2011: R112 million). The reduction in the estimated value is due to the lower
basket price for PGM.
The Berg Project
Prospecting rights for PGM in the Eastern Limb of the Bushveld Complex in
Mpumalanga, South Africa. The Berg Project comprises portions of the Kliprivier
and Draaikraal farms. The DMR has granted a new prospecting right over a further
portion of Kliprivier to Platfields in February 2012. Platfields has resolved to
seek joint venture or similar business arrangements for the Berg Project. The
current value of the Berg Project as a whole is estimated at R38 million (2011:
R116 million). The reduction in the estimated value is due to the lower basket
price for PGM and certain prospecting rights which have not been renewed.
The Marula Project (formerly the Grootfonteinberg Project)
The Marula Project is a gold target in the Transvaal Drakensberg Goldfield. The
Project consists of a new order prospecting right for gold over four farms in
the Magisterial District of Pilgrim`s Rest in Mpumalanga Province, South Africa.
The four properties are Lisbon 531 JT, Ceylon 197 JT, Little Joker 157 JT and
Grootfonteinberg 561 KT. There is an overlapping right over the
Grootfonteinberg561 KT portion of the prospecting area.
Platfields remains confident that the dispute will be resolved with the DMR and
the third party concerned. The current value of the Marula Project is estimated
at R1,5 million (2011: R1,5 million).
Impairment
There have been no impairments during the year under review. During 2011 the
Platmile portions of the Berg Project were impaired by R47,4 million. The
impairment arose from exploration results as well as applying amining cut to
thein situ grades previously reported.
3. Loss per share
The loss per share is based on 789,597,005 (2011: 665,608,856) weighted average
number of shares in issue and a loss for the year of R11,3 million (2011: R73,0
million).
The headline loss per share is based on 789,597,005 (2011: 665,608,856) weighted
average number of shares in issue and a loss for the year of R11,3 million
(2011: R25,6 million).
The diluted loss per share is based on 789,597,005 (2011: 662,291,294) weighted
average number of shares in issue and a loss for the year of R11,3 million
(2011: R73,0 million).
The diluted headline loss per share is based on 789,597,005 (2011: 666,291,294 )
weighted average number of shares in issue and a loss for the year of R11,3
million (2011: R25,6 million).
Registered Office: 7th Floor, SA Reserve Bank Building, 60 St Georges Mall,
Cape Town, 8001 (PO Box 51949, Waterfront, 8002).
Transfer Secretaries: Computershare Investor Services (Proprietary) Limited,
70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107)
Sponsor: Merchantec Capital was appointed as sponsor on 7 July 2011.
www.platfields.co.za
Date: 01/06/2012 08:38:00 Produced by the JSE SENS Department.
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