| Wed 17 Aug 2016, 16:55 | | BAUBA PLATINUM LIMITED - Reviewed Condensed Consolidated Provisional Results for the Year Ended 30 June 2016 |
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BAU 201608170045A
Reviewed Condensed Consolidated Provisional Results for the Year Ended 30 June 2016
Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
JSE Share code: BAU
ISIN: ZAE000145686
(“Bauba” or “the Company” or “the Group”)
www.bauba.co.za
Reviewed condensed consolidated provisional results
for the year ended 30 June 2016
Condensed provisional consolidated statement of financial position
Reviewed Audited
30 June 30 June
2016 2015
Note R’000 R’000
Assets
Non-current assets 166 900 178 687
Property, plant and equipment 955 1 307
Intangible assets 10 164 324 169 365
Deferred tax 1 621 8 015
Current assets 13 737 40 406
Trade and other receivables 1 670 1 300
Tax receivable 328 –
Cash and cash equivalents 11 739 33 108
Inventory – 5 998
Total assets 180 637 219 093
Equity and liabilities
Equity 168 658 180 166
Stated share capital 550 402 550 402
Reverse asset acquisition reserve (282 988) (282 988)
Retained loss (98 562) (88 390)
Non-controlling interest (194) 1 142
Non-current liabilities 5 552 –
Provision for rehabilitation 6 5 552 –
Current liabilities 6 427 38 927
Other financial liabilities 5 5 375 30 288
Provision for rehabilitation 6 - 2 520
Trade and other payables 1 052 6 119
Total equity and liabilities 180 637 219 093
Condensed provisional consolidated statement of profit or loss and
other comprehensive income
Reviewed Audited
Year ended Year ended
30 June 30 June
2016 2015
Note R’000 R’000
Chrome ore revenue 78 743 40 901
Cost of sales (29 191) (15 533)
Gross profit 49 552 25 368
Other income – 10
Operating and administrative expenses (55 579) (21 110)
Impairment of intangible assets – (6 286)
Finance income 1 061 289
Loss before taxation (4 966) (1 729)
Taxation (6 542) 8 015
(Loss)/profit for the year (11 508) 6 286
Other comprehensive income – –
Total comprehensive (loss)/profit (11 508) 6 286
(Loss)/profit attributable to:
Owners of the parent (10 172) 934
Non-controlling interests (1 336) 5 352
Total comprehensive (loss)/profit
attributable to:
Owners of the parent (10 172) 934
Non-controlling interests (1 336) 5 352
Basic (loss)/earnings per share (cents) 11 (2,68) 0,34
Diluted (loss)/earnings per share (cents) 11 (2,68) 0,34
Weighted average number of shares (’000) 11 379 020 272 172
Diluted weighted average number of
shares in issue (’000) 11 379 020 277 861
Condensed provisional consolidated statement of changes in equity
Non-
Stated Reverse contol-
share acquisition Retained ling Total
capital adjustment loss interest equity
R’000 R’000 R’000 R’000 R’000
Balance at
30 June 2014 401 594 (282 988) (89 324) (4 210) 25 072
Total
comprehensive
profit for
the year – – 934 5 352 6 286
Issue of
additional
shares 150 000 – – – 150 000
Share issue
expenses (1 192) – – – (1 192)
Balance at
30 June 2015 550 402 (282 988) (88 390) 1 142 180 166
Total
comprehensive
loss for
the year – – (10 172) (1 336) (11 508)
Balance at
30 June 2016 550 402 (282 988) (98 562) (194) 168 658
Condensed provisional consolidated statement of cash flow
Reviewed Audited
30 June 30 June
2016 2015
R’000 R’000
Net cash generated/(utilised) in
operating activities 4 740 4 105
Cash flows from investing activities
Purchase of property, plant and equipment (26) (1 115)
Investments in intangible assets (2 232) –
Interest received 1 061 289
Net cash utilised in investing activities (1 196) (826)
Cash flows from financing activities
Share issue expenses – (1 192)
Proceeds from other financial liabilities – 30 106
Repayment of other financial liabilities (24 913) –
Net cash (utilised)/available from
financing activities (24 913) 28 914
Total cash movement for the year (21 369) 32 193
Cash and cash equivalents at the beginning
of the year 33 108 915
Cash and cash equivalents at end
of the year 11 739 33 108
Notes to the reviewed provisional condensed results
1. Basis of preparation
These condensed provisional consolidated financial statements have
been prepared by CH Gernandt (ACCA, CPA, CGA), the financial director
of Bauba, in accordance with the framework concepts and the
measurements and recognition requirements of International Financial
Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”), SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee, the Financial
Reporting Pronouncements as issued by the Financial Reporting
Standards Council, the requirements of the South African Companies
Act and the JSE Listings Requirements and, as a minimum, contain the
information required by IAS 34: Interim Financial Reporting. The Board
takes full responsibility for the preparation of this provisional report
and that the financial information has been correctly extracted from
the underlying consolidated reviewed annual financial statements, which
are available for inspection at the registered office of the Company.
The same accounting policies, presentation and measurement principles
have been followed in the preparation of the condensed report for the
year ended 30 June 2016 as were applied in the preparation of the group’s
annual financial statements for the year ended 30 June 2015.
2. Financial review
In the year under review, Bauba established itself as a chrome
producer but, due to severe pressure on commodity prices, the Group
had to place its chrome project (“Moeijelijk 412KS”) under care and
maintenance in January 2016. The board of directors of Bauba (“the Board”)
is cautiously optimistic that the chrome prices will recover by the last
quarter of 2016 which will allow the Group to go back into production. The
Board’s focus for 2016 was mainly on generating revenue from its
chrome operation and to reduce platinum exploration activities and
corresponding expenditure. A full-scale 30-year Mining Right for
Chrome Ore has also been granted by the Department of Mineral
Resources and the Board is optimistic about the continued positive growth
performance in earnings for the 2017 financial year.
The Group reported a loss attributable to the parents of the Group
for the year ended 30 June 2016 of R10,172 million resulting in a
loss per share of 2,68 cents (2015: earnings per share of 0,34
cents). Headline loss per share for the year was 2,68 cents (2015:
headline earnings per share of 2,65 cents). The weighted average
number of ordinary shares in issue for the year under review was
379 020 249 (2015: 272 172 872).
3. Auditor’s review conclusion
These condensed consolidated financial statements for the year ended
30 June 2016 have been reviewed by BDO South Africa Incorporated, who
expressed an unmodified conclusion. A copy of the auditor’s review
report is available for inspection at the Company’s registered office
together with the financial statements identified in the auditor’s
report.
The auditor’s report does not necessarily report on all of the
information contained in these financial results. Shareholders are
therefore advised that in order to obtain a full understanding of the
nature of the auditor’s engagement, they should obtain a copy of the
auditor’s report together with the accompanying financial information
from the Company’s registered office.
4. Dividends
No dividends were declared during the year under review.
5. Other financial liabilities (current)
30 June 30 June
2016 2015
R’000 R’000
Chrome ore credit facility – 12 000
An amount was received as a credit facility
until ASA Metals Proprietary Limited supplies
the Group a letter of credit. This amount will
be payable on the receipt of a letter of credit
from a registered South African bank.
Chrome ore advance receipt – 18 106
The amount relates to an advance payment for
chrome ore produced but not yet delivered
at 30 June 2015.
Other 5 375 182
5 375 30 288
Current liabilities
At amortised cost 5 375 30 288
Non-current liabilities
At amortised cost – –
6. Provision for rehabilitation
30 June 30 June
2016 2015
R’000 R’000
Provision for rehabilitation 5 552 2 520
Balance at the beginning of the year 2 520 –
Additions 3 032 2 520
Balance at the end of the year 5 552 2 520
Due within one year or less – 2 520
Due after more than one year 5 552 –
5 552 2 520
The provision for rehabilitation was previously included under other
financial liabilities. The decision was taken to move the provision
into separate line item on the face of the statement of financial
position for better disclosure.
Long-term environmental obligations are based on the Group’s
environmental plans. Full provision is made based on the net present
value of the estimated cost of restoring the environmental disturbance
that has occurred up to the reporting date. The change of reporting
provisions as a non-current liability is due to the fact that Bauba’s
chrome project, Moeijelijk 412KS was placed under care and maintenance
and the liability would only be paid in the long term.
7. Board
During the year under review, up to the date of this report, the
following changes were made to the Board:
Change of role
NW van der Hoven (from Executive Director – Legal Compliance and New
Business
Development to Chief Executive Officer) – 31 May 2016.
Resignations
S Caddy (Chief Executive Officer) – 31 May 2016.
K Mzondeki (Independent Non-executive Director) – 13 August 2015.
8. Operating segments
Chrome Platinum
project exploration Corporate Total
R’000 R’000 R’000 R’000
2016
Revenues 78 743 – – 78 743
Profit/(loss)
before tax 3 202 – (8 168) (4 966)
Taxation (6 542) – – (6 542)
Loss after tax (3 340) – (8 168) (11 508)
Interest received – – 1 061 1 061
Depreciation,
amortisation and
impairment 7 605 – 27 7 632
Total assets 148 759 20 161 11 717 180 637
Total liabilities (11 748) – (231) (11 979)
2015
Revenues 40 901 – – 40 901
Other income – – 10 10
Loss before tax 8 802 – (10 531) (1 729)
Taxation 8 015 – – 8 015
Loss after tax 16 817 – (10 531) 6 286
Interest received – – 289 289
Interest paid – – 1 1
Depreciation,
amortisation and
impairment 2 519 6 286 31 8 836
Total assets 188 335 20 161 10 596 219 093
Total liabilities (38 719) – (207) (38 926)
The Bauba Group segmental analysis is based on the Moeijelijk chrome
project, platinum exploration and corporate activities. The Group was
reliant on one major customer in respect of the chrome ore sales.
9. Changes in share capital
During the year, there were no changes to the Company’s issued share
capital.
10. Intangible assets
Accumulated
amortisation
and Carrying
Cost impairments value
R’000 R’000 R’000
2016
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 153 842 (9 679) 144 163
Exploration and evaluation
assets 184 397 (20 073) 164 324
2015
Platinum mineral rights 30 555 (10 394) 20 161
Chrome mineral rights 151 610 (2 406) 149 204
Exploration and evaluation
assets 182 165 (12 800) 169 365
Opening Amorti- Impair-
balance Additions sation ment Total
R’000 R’000 R’000 R’000 R’000
Reconciliation
2016
Platinum mineral rights 20 162 – – – 20 162
Chrome mineral rights 149 203 2 232 (7 273) – 144 162
Exploration and
evaluation assets 169 365 2 232 (7 273) – 164 324
2015
Platinum mineral rights 26 447 – – (6 285)* 20 162
Chrome mineral rights 1 610 150 000 (2 407) – 149 203
Exploration and
evaluation assets 28 057 150 000 (2 407) (6 285)* 169 365
* The Board has satisfied itself that an impairment loss of R6 285 519
has been incurred on the central cluster due to uneconomical qualities on
the drilling results. Therefore, the Board has not filed for retention
permits on the central cluster.
11. Earnings per share
Basic (loss)/earnings per share
Basic earnings per share is determined by dividing profit or loss
attributable to the ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the
year.
30 June 30 June
2016 2015
R’000 R’000
Basic (loss)/earnings per share
From operations (cents) (2,68) 0,34
Basic (loss)/earnings per share for
the Bauba Group was based on
(loss)/earnings of (10 172) 934
Weighted average number of ordinary
shares (’000) 379 020 272 172
Diluted basic (loss)/earnings per share
From operations (cents) (2,68) 0,34
(Loss)/profit for the year attributable
to equity holders of the parent (10 172) 934
Diluted weighted average number of
shares in issue(’000) 379 020 277 861
The after tax effect of interest on profit
or loss to calculate diluted (loss)/earnings
per share has not been adjusted as it
is insignificant.
Reconciliation of earnings to headline
(loss)/earnings attributable
to equity holders of the parent:
Headline (loss)/earnings per share (cents) (2,68) 2,65
Reconciliation between (loss)/earnings
and headline(loss)/earnings
Basic (loss)/earnings (10 172) 934
Adjusted for:
Impairment of intangible assets – 6 285
Profit on sale of asset 3 (8)
Headline (loss)/earnings (10 169) 7 211
Weighted average number of shares
in issue (’000) 379 020 272 172
Headline (loss)/earnings per share (cents) (2,68) 2,65
Diluted weighted average number of shares
in issue (’000) 379 020 277 861
Diluted headline (loss)/earnings
per share (cents) (2,68) 2,60
The weighted average number of shares for
the purpose of diluted earnings per share
reconciles to the weighted average number
of shares used in the calculation of basic
earnings per share as follows:
Weighted number of shares used in the
calculation of basic earnings per share 379 020 272 172
Additional weighted shares issued based
on suspensive conditions on the acquisition
of the Houtbosch transaction – 5 689
Weighted average number of shares used in the
calculation of diluted earnings per share 379 020 277 861
12. Events after the end of the reporting period
Shareholders are referred to the announcement released on SENS on
26 July 2016 wherein shareholders were advised that on 24 March 2016,
the Company announced that a provision had been made in the results
for the six months ended 31 December 2015 for an amount of approximately
R15 million in respect of a doubtful debtor (“the Debtor”). This provision
arose from the delivery of approximately 20 000 MT of chrome ore (the
“Original Delivery”) to the Debtor, but which Original Delivery was not
paid for by such party and who subsequently went into business rescue.
The Group consequently wrote the debt pertaining thereto off as
unrecoverable in the year under review. After vigorous legal action
taken by its Directors, an agreement (the “Settlement Agreement”) was
entered into with the Debtor, in terms of which the Company is
entitled to recover approximately 17 300 MT of the Original Delivery,
from the Debtor’s processing site.
Subsequent and pursuant to the Settlement Agreement, Bauba a Hlabirwa
Mining Investments Proprietary Limited has now entered into an
Agreement of Sale in terms of which the product at the Debtor’s site
is to be disposed of (subject to certain terms and conditions)
forthwith at a value of R13 840 000 excluding VAT. The shortfall of
the debt which arose from the Original Delivery will remain
part of the Company’s concurrent claim against the Debtor.
13. Going concern
The period under review reflects a challenging year. The overall net
loss after tax for the period under review was R11,508 million and
the cash flow forecasts prepared by the directors, based on current
available information, indicate that the Company will be able to meet
its commitments within the next 12 months as they fall due and to
continue funding the Group expenditures. The Company has sufficient
resources to continue as a going concern and has therefore concluded
that it is appropriate to prepare the financial statements on a going
concern basis. Accordingly, the financial statements do not include
the adjustments that would result if the Company was unable to
continue as a going concern.
17 August 2016
Johannesburg
Corporate information
Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
(“Bauba” or “the Company” or “the Group”)
JSE share code: BAU • ISIN: ZAE000145686
Postal address: PO Box 1658, Witkoppen 2068.
Tel no: +27 (011) 699 5720
Board of Directors
NPJ van der Hoven# (Chairman), M Luyt*, SM Dolamo*, Dr NM Phosa#,
DS Smith* King TV Thulare (Alternate), NW van der Hoven, CH Gernandt
#Non-executive *Independent non-executive
Sponsor
Merchantec Capital
2nd Floor, North Block Hyde Park Office Tower,
Corner 6th Road and Jan Smuts
Avenue, Hyde Park, Johannesburg, 2196
(PO Box 41480, Craighall, 2024)
Registered Office
Cube Workspace, 1 Wedgewood Link, Bryanston,
Johannesburg, 2191, South Africa
(PO Box 1658, Witkoppen, 2068)
Company Secretary
Merchantec Proprietary Limited
Transfer Secretaries
Computershare Investor Services Proprietary Limited,
70 Marshall Street Marshalltown, 2001
(PO Box 61051, Marshalltown, 2107)
Auditors
BDO South Africa Incorporated
22 Wellington Road, Parktown, 2193
Date: 17/08/2016 04:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
