| Fri 8 Apr 2005, 17:21 | | Barplats - Reviewed consolidated Interim Results f |
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Barplats - Reviewed consolidated Interim Results for the six months ended 31
December 2004 and further cautionary announcement
Barplats Investments Limited
Incorporated in the Republic of South Africa
(Reg. no. 1987/004830/06)
(ISIN: ZAE000028692)
JSE code: BPL
(`Barplats` or `the company)
Reviewed consolidated Interim Results for the six months ended 31 December 2004
and further cautionary announcement
Income Statement
Six months Six months Year ended
ended 31 Dec ended 31 Dec 30 June
(R`000s) Notes 2004 2003 2004
Sales - 109 367 112 893
Cost of sales 1 831 115 541 128 421
Mining cost 5 330 50 595 77 317
Smelter slag - 22 268 -
purchased
Concentrating - 23 900 26 370
costs
Amortisation 792 14 672 13 519
Other costs - 4 106 11 215
Closing (4 291) - -
inventory
Loss from (1 831) (6 174) (15 528)
operations
Net - (235) (494)
exploration
expenses
Foreign
exchange loss
relating to - (5 620) (4 642)
ore sales
Foreign
exchange gain
on foreign 6 140 - -
loan
Other expenses 2 (8 329) (1 403) (4 435)
Loss before
interest
and taxation (4 020) (13 432) (25 099)
Net finance (7 167) (7 672) (16 903)
costs
Loss before (11 187) (21 104) (42 002)
taxation
Income tax - (25) (26)
Net loss (11 187) (21 129) (42 028)
Basic and
diluted loss
per share (5) (9) (19)
(cents)
Headline loss (5) (9) (19)
per share
(cents)
Dividend per - - -
share (cents)
Balance Sheet
% 31 Dec 31 Dec 30 June
(R000s) Notes change 2004 2003 2004
Assets
Non-current assets 3 29 266 614 206 860 207 703
Current assets (64) 18 617 52 140 2 909
Total assets 285 231 259 000 210 612
Equity and
liabilities
Capital and reserves (40) 49 000 81 086 60 187
Non-current 4 362 106 134 22 952 99 373
liabilities
Current liabilities 5 (16) 130 097 154 962 51 052
Total equity and 285 231 259 000 210 612
liabilities
Statement of Changes in Shareholders` Equity
Share Share Retained
(R000s) capital premium earnings Total
Balance at 30 June 2 225 1 049 928 (949 938) 102 215
2003
Net loss (21 129) (21 129)
Balance at 31 Dec 2 225 1 049 928 (971 067) 81 086
2003
Net loss (20 899) (20 899)
Balance at 30 June 2 225 1 049 928 (991 966) 60 187
2004
Net Loss (11 187) (11 187)
Balance at 31 Dec 2 225 1 049 928 (1 003 153) 49 000
2004
Cash Flow Statement
Six months Six months Year
ended 31 Dec ended 31 Dec ended 30 June
(R`000s) 2004 2003 2004
Cash flows from (3 762) (45 136) (29 677)
operating activities
Cash flows from (59 703) (10 655) (3 356)
investing activities
Cash flows from 64 683 55 832 33 709
financing activities
Net increase in cash 1 218 41 676
and cash equivalents
Cash and cash 880 204 204
equivalents at the
beginning of the
year
Cash and cash 2 098 245 880
equivalents at the
end of the year
Nature of business
Barplats is a platinum group metals (`PGMs`) mining company whose core business
is PGM mining and processing in South Africa`s Bushveld Igneous Complex (`the
BIC`). Barplats` two assets are:
* the Crocodile River Mine on the Western Limb of the BIC near Brits in the
North West Province; and
* the Kennedy`s Vale Project on the Eastern Limb of the BIC near Steelpoort
in Mpumalanga.
Notes
1. The principal accounting policies used by Barplats and its subsidiary
companies (`the group`) are in accordance with the International Financial
Reporting Standards of the International Accounting Standards Board and the
Companies Act, 61 of 1973 (as amended) and are consistent with those
applied in the financial statements for the year ended 30 June 2004.
The financial statements, which have been prepared in accordance with the
International Financial Reporting Standard applicable to interim reporting,
have been reviewed by PricewaterhouseCoopers Inc., whose modified opinion,
which includes an emphasis of matter regarding the group`s funding
requirements (refer to the commentary and black economic empowerment
transaction section below), is available for inspection at the group`s
registered office.
2. Other expenses includes: an increase in the environmental provision of R0.9
million; audit fees of R0.6 million; insurance of R2.5 million; recruitment
fees of R0.4 million; and expenses related to the offer to minority
shareholders of R1.8 million.
3. Capital expenditure for the period under review amounted to R62.0 million
(2003: R4.4 million). Capital expenditure approved and committed at 31
December 2003 and 31 December 2004 amounted to nil.
4. Non-current liabilities includes: a provision of R31.4 million for
environmental rehabilitation; and the long-term portion of the interest
bearing loan from Impala Platinum Limited of R72.7 million.
5. Current liabilities includes: the portion of the interest bearing loan from
Impala that is repayable in June 2005 of R48.4 million; and the interest
bearing amount drawn-down from Eagle Worldwide Investments Ltd (`Eagle`) of
R57.2 million (US$10.0 million).
The calculation of basic, diluted and headline earnings per share is based
on a net loss of R11.187 million (2003: loss of R21.129 million).
The number of shares in issue remains unchanged at 222 540 344.
The net asset value per share for 31 December 2004 is 22 cents (2003: 36
cents)
Commentary
During the period under review, considerable progress was made with the
development of the Crocodile River Mine`s operations. The activities were
centered on establishing the company`s operations for future production. The
concentrator plant was refurbished and upgraded and was commissioned during late
March 2005. The development activities at the Maroelabult Section confirmed the
proposed mining method to be implemented at Crocodile River Mine. Production at
Maroelabult Section is now being built up to full capacity. The ore produced at
Maroelabult Section is being processed with previous tailings and the first
concentrate was dispatched on 29 March 2005. Production from the Zandfontein
Section will commence in mid 2005. Key management positions have been filled by
individuals with significant platinum group metals experience. The company`s new
administration systems have been installed and are operational.
Prospects and proposed black economic empowerment transaction
The company together with its majority shareholders is in the process of
negotiating an empowerment transaction that may result in the company raising
equity capital (`the proposed empowerment transaction`). The expansion of
Barplats` mining operations is dependent upon the outcome of the proposed
empowerment transaction as well as other funding initiatives. In the event that
the proposed empowerment transaction or the funding initiatives do not result in
Barplats raising capital, the continuation of operations for the twelve month
period following the publication of this announcement is dependent upon the
financial support of Eagle, the entity that has funded Barplats` operations to
date. The board of directors of the company has received a letter from Eagle
indicating that Eagle has undertaken to support the approved budgetary
requirements of the company for a period of twelve months or until appropriate
funding has been secured, whichever is sooner.
Further cautionary announcement
Further to the cautionary announcements dated 4 November 2004, 5 January 2005
and 17 February 2005, shareholders are advised that negotiations are still in
progress, which if sucessfully concluded, may have a material effect on the
price of the company`s securities. Accordingly, shareholders are advised to
continue to excercise caution when dealing in the company`s securities until a
further announcement is made.
On behalf of the board
LOUCAS POUROULIS DAVID SALTER
Chairman Managing Director 8 April 2005
Directors: L.C. Pouroulis * (Chairman), J.D. Salter + (Managing), J.A. Clark,
P.J. Gard + J.M. Jansen van Vuuren * Cypriot + British
Sponsor: Nedbank Capital
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Johannesburg 2001
Secretary and Registered Office: T K Savage, 1226 Schoeman Street, Hatfield 0083
