| Wed 4 Jan 2006, 14:41 | | Messina Limited - Financial Results - 30 September |
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MES
MES
Messina Limited - Financial Results - 30 September 2005
Messina Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/035912/06)
Share code: MES
ISIN: ZAE 000004438
("Messina" or "the Company")
FINANCIAL RESULTS - 30 SEPTEMBER 2005
BALANCE SHEETS
at 30 September 2005
GROUP
2005 2004
Notes R"000 R"000
ASSETS
Non-current assets 946 345 1 049 598
Property, plant and equipment 8 940 810 1 044 251
Investments 9 5 535 5 347
Investment in subsidiary 10
Current assets 149 317 66 331
Inventories 11 12 738 10 767
Trade receivables and pre-payments 12 129 371 48 735
Bank and cash 13 7 208 6 829
Total assets 1 095 662 1 115 929
EQUITY AND LIABILITIES
Capital and reserves (140 903) 188 906
Share capital 14 10 035 10 035
Share premium 14 442 384 442 384
Equity settled share base payments 1 945 575
Foreign currency translation reserve (68 994) -
Retained loss (526 273) (264 088)
Non-current liabilities 582 094 452 497
Loan from fellow subsidiary 15 46 581 45 976
Shareholder"s loan 16 516 144 391 001
Interest bearing borrowings 17 5 105 5 448
Environmental obligation provision 18 14 264 10 072
Current liabilities 654 471 474 526
Provisions 19 5 437 7 054
Trade and other payables 20 85 598 84 022
Current portion of borrowings 17 563 436 383 019
Bank overdraft 13 - 431
Total equity and liabilities 1 095 662 1 115 929
COMPANY
2005 2004
Notes R"000 R "000
ASSETS
Non-current assets 498 070 498 836
Property, plant and equipment 8 - -
Investments 9 - -
Investment in subsidiary 10 498 070 498 836
Current assets 32 45
Inventories 11 - -
Trade receivables and pre-payments 12 32 32
Bank and cash 13 - 13
Total assets 498 102 498 881
EQUITY AND LIABILITIES
Capital and reserves 497 837 498 607
Share capital 14 10 035 10 035
Share premium 14 442 384 442 384
Equity settled share base payments - -
Foreign currency translation reserve - -
Retained loss 45 418 46 188
Non-current liabilities - -
Loan from fellow subsidiary 15 - -
Shareholder"s loan 16 - -
Interest bearing borrowings 17 - -
Environmental obligation provision 18 - -
Current liabilities 265 274
Provisions 19
Trade and other payables 20 265 274
Current portion of borrowings 17 - -
Bank overdraft 13 - -
Total equity and liabilities 498 102 498 881
INCOME STATEMENTS
For the period ended 30 September 2005
GROUP
2005 2004
(9 MONTHS) (12 MONTHS)
Notes R"000 R"000
Revenue 1 259 417 276 131
Cost of sales 2 (229 416) (274 138)
Gross profit 30 001 1 993
Other operating income 3 717 1 054
Distribution expenses (2 738) (7 220)
Administrative expenses (31 510) ( 42 555)
Other operating expenses (104 907) ( 140 728)
Loss from operations 4 (108 437) ( 187 456)
Net finance costs 5 (153 748) ( 34 722)
Loss before taxation (262 185) ( 222 178)
Taxation 6 - (365)
Net loss (262 185) ( 222 543)
Loss per share (Cents) 7
Basic (1 306.35) (1 108.83)
Diluted (1 306.35) (1 108.83)
COMPANY
2005 2004
(9 MONTHS) (12 MONTHS)
Notes R"000 R"000
Revenue 1 - -
Cost of sales 2 - -
Gross profit - -
Other operating income 3 - -
Distribution expenses - -
Administrative expenses (721) (1 295)
Other operating expenses (50) (720)
Loss from operations 4 (771) (2 015)
Net finance costs 5 1 12
Loss before taxation (770) (2 003)
Taxation 6 - -
Net loss (770) (2 003)
Loss per share (Cents) 7
Basic
Diluted
CASH FLOW STATEMENTS
For the period ended 30 September 2005
GROUP
2005 2004
Note (9 MONTHS) (12 MONTHS)
R"000 R"000
CASH FLOWS UTILISED IN OPERATING
ACTIVITIES
Cash receipts from customers 178 781 287 712
Cash paid to suppliers and employees (295 506) (375 277)
Net cash flow from operating activities 29 (11 725) (87 565)
Net finance costs (153 748) (31 206)
Cash flows utilised in operating
activities (270 473) ( 118 771)
CASH OUTFLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and
equipment (39 152) (45 937)
Proceeds from disposal of property,
plant and equipment 609 2 499
Increase in non-current investments (188) (5 346)
Cash outflows from investing activities (38 731) (48 784)
CASH INFLOWS FROM FINANCING ACTIVITIES
Increase in inter-company loan 605 45 976
Increase in shareholder"s loan 125 143 333 571
Increase in environmental obligation 4 192 869
Increase/(decrease) in interest bearing
borrowings 180 074 (90 512)
Cash inflows from financing activities 310 014 289 904
Net increase/(decrease) in cash and cash
equivalents 810 122 349
Cash and cash equivalents at beginning
of period 6 398 (115 951)
Cash and cash equivalents at end of
period 13 7 208 6 398
COMPANY
2005 2004
Note (9 MONTHS) (12 MONTHS)
R"000 R"000
CASH FLOWS UTILISED IN OPERATING
ACTIVITIES
Cash receipts from customers - (9)
Cash paid to suppliers and employees (780) (2 045)
Net cash flow from operating activities 29 (780) (2 054)
Net finance costs 1 12
Cash flows utilised in operating
activities (779) (2 042)
CASH OUTFLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and
equipment - -
Proceeds from disposal of property,
plant and equipment - -
Increase in non-current investments - 947
Cash outflows from investing activities - 947
CASH INFLOWS FROM FINANCING ACTIVITIES
Increase in inter-company loan 766 -
Increase in shareholder"s loan - -
Increase in environmental obligation - -
Increase/(decrease) in interest bearing
borrowings - -
Cash inflows from financing activities 766 -
Net increase/(decrease) in cash and cash
equivalents (13) (1 095)
Cash and cash equivalents at beginning
of period 13 1 108
Cash and cash equivalents at end of
period 13 - 13
STATEMENTS OF CHANGES IN EQUITY
For the period ended 30 September 2005
GROUP
Equity
settled Non-
Share Distributable
Share Share Based Reserves Capital
Note Capital Premium payment Redemption
R"000 R"000 R"000 R"000
Balance at
1 January 2004 10 035 442 384 284 2 002
Change in
accounting
policy 26 - - - -
Restated
balance 10 035 442 384 284 2 002
Loss for the
year - - 291 -
Balance at
31 December 2004 10 035 442 384 575 2 002
Previously
stated 10 035 442 384 575 2 002
Change in
accounting
policy 26 - - - -
Balance at
1 January 2005 10 035 442 384 575 2 002
Loss for
period - - 1 370 -
Effect of
foreign
currency
translation - - - -
Balance at
30 September
2005 14 10 035 442 384 1 945 2 002
Distributable Foreign
Reserves currency
Retained translation
Note earnings Reserve Total
R"000 R"000 R"000
Balance at 1 January
2004 (27 055) - 427 650
Change in accounting
policy 26 (16 492) - (16 492)
Restated balance (43 547) - 411 158
Loss for the year (222 543) - (222 252)
Balance at 31 (266 090) - 188 906
December 2004
Previously stated (237 000) - 217 996
Change in accounting
policy 26 (29 090) - (29 090)
Balance at 1 January (266 090) - 188 906
2005
Loss for period (262 185) - (260 815)
Effect of foreign
currency translation - (68 994) (68 994)
Balance at 30
September 2005 14 (528 275) (68 994) (140 903)
COMPANY
Equity
settled Non-
Share Distributable
Share Share Based Reserves Capital
Note Capital Premium payment Redemption
R"000 R"000 R"000 R"000
Balance at
1 January
2004 10 035 442 384 - 2 002
Loss for the
year - - - -
Balance at
31 December 2004 10 035 442 384 - 2 002
Balance at
1 January
2005 10 035 442 384 - 2 002
Loss for the
period - - -
Balance at
30 September 2005 14 10 035 442 384 - 2 002
Distributable Foreign
Reserves Currency
Retained translation
Note Earnings Reserve Total
R"000 R"000 R"000
Balance at
1 January
2004 46 189 - 500 610
Loss for the year (2 003) - (2 003)
Balance at 31
December 2004 44 186 - 498 607
Balance at 1 January
2005 44 186 - 498 607
Loss for period (770) - (770)
Balance at
30 September 2005 14 43 416 - 497 837
ACCOUNTING POLICIES
For the period ended 30 September 2005
Messina (the"Company") is a company domiciled in South Africa. The
consolidated statements of the Company for the period ended 30 September 2005
comprise the Company and its subsidiary (together referred to as the "Group").
STATEMENT OF COMPLIANCE
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) and its interpretations adopted by the
International Accounting Standards Board (IASB). These are the Group"s and
Company"s first consolidated financial statements prepared under IFRS and
IFRS 1 has been applied.
An explanation of how the transition to IFRS has affected the reported
financial position, financial performance and cash flows of the Group is
provided in note 25.
BASIS OF PREPARATION
The financial statements are presented in South African Rand, rounded to the
nearest thousand. They are prepared on the historical cost basis modified for
the following assets and liabilities stated at their fair value: financial
instruments held for trading and financial instruments classified as
available-for-sale.
Non-current assets and disposal groups held for sale are stated at the lower of
carrying amount and fair value less cost to sell.
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical
experience and various factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
Judgements made by management in the application of IFRS that have a
significant effect on the financial statements and estimates with a significant
risk of material adjustment in the next year are discussed in note 30.
The accounting policies set out below have been applied consistently to all
periods presented in these consolidated financial statements and in preparing
an opening IFRS balance sheet at 1 January 2004 for the purpose of the
transition to IFRS.
The accounting policies have been applied consistently by Group entities.
BASIS OF CONSOLIDATION
Subsidiaries are entities controlled by the Company. Control exists when the
Company has the power, directly or indirectly, to govern the financial and
reporting policies of an entity so as to obtain benefits from its activities.
In assessing control, potential voting rights that presently are exercisable or
convertible are taken into account. The financial statements of subsidiaries
are included in the consolidated financial statements from the date that
control commences until the date that control ceases.
PROPERTY, PLANT AND EQUIPMENT
(i) Owned assets
Items of property, plant and equipment are stated at cost less accumulated
depreciation and impairment losses. Cost includes all costs directly
attributable to bringing the assets to working condition for their intended
use. The cost of self-constructed assets includes the cost of materials, direct
labour, the initial estimate, where relevant, of the costs of dismantling and
removing the items and restoring the site on which they are located, and an
appropriate proportion of production overheads. Gains and losses on disposal of
property, plant and equipment are determined by reference to their carrying
amount and are taken into account in determining operating profit.
The residual values and useful lives of property, plant and equipment are
re-assessed annually and if necessary changes are accounted for prospectively.
Where parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items of property, plant and
equipment.
Repairs and maintenance are charged to the income statement during the
financial period in which the costs are incurred.
(ii) Leased assets
Leases where the Group assumes substantially all the benefits and risks of
ownership are classified as finance leases. Finance leases are capitalised as
property, plant and equipment at the lower of fair value or the present value
of the minimum lease payments at the inception of the lease with an equivalent
amount being stated as a finance lease liability. The capitalised amount is
depreciated over the asset"s useful life. Lease payments are allocated between
capital repayments with borrowing costs using the effective interest rate
method.
(iii) Subsequent costs
The Group recognises in the carrying amount of an item of property, plant and
equipment the cost of replacing part of such an item when that cost is incurred
if it is probable that the future economic benefits embodied with the item will
flow to the Group and the cost of the item can be measured reliably. All other
costs are recognised in the income statement as an expense as incurred.
(iv) Depreciation
Depreciation of property, plant and equipment is calculated on a straight-line
basis using rates that are designed to write-off the assets over their expected
useful lives or the remaining life of mine, if shorter. The expected useful
lives of the major categories of property, plant and equipment are as follows:
Vehicles 4 to 5 years
Plant and equipment
- Plant 10 to 14 years
- Furniture and fittings 3 to 5 years
- Computer hardware and software 2 to 3 years
Buildings 12 years
Land is not depreciated
(v) Mining assets and development costs
Mining assets and development costs are carried at cost less accumulated
amortisation. Expenditure, including evaluation costs incurred to establish or
expand productive capacity, to support and maintain the productive capacity,
borrowing costs and working cost incurred on mines, as well revenue generated
from development prior to the commencement of commercial levels of
production,are capitalised to intangible assets.
Development costs relating to major programmes at the mine that meet the
criteria for recognition as assets are capitalised to property, plant and
equipment. Development costs consist primarily of expenditure to expand the
capacity of the mine. Day-to-day mine development costs to maintain production
are expensed as incurred. Initial development and pre-production costs relating
to a new ore body, including amortisation, depreciation and interest on borrowed
funds used to develop the ore body, are capitalised until commercial levels of
production are achieved.
(vi) Amortisation
Mining assets and development costs are amortised using the units of production
method based on estimated proven and probable reserves, limited to a maximum
period of 21 years from the date the mine is commissioned and reaches
commercial levels of production.
(vii) Impairment
Property, plant and equipment and mining assets and development costs are
tested for impairment if events or changes in circumstances indicate that the
carrying amount may not be recoverable.
Impairment losses recognised in respect of cash generating units are allocated
to reduce the carrying amount of the other assets in the unit (group of units)
on a pro-rata basis.
Where an impairment loss is recognised against an asset it may be reversed in
future periods where there has been a change in estimates used to determine the
recoverable amount since the last impairment loss was recognised. An impairment
loss is reversed only to the extent that the asset"s carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
ASSETS HELD FOR SALE
When an asset"s carrying value will be recovered principally through a sale
transaction rather than through continued use it is classified as held for sale
and stated at the lower of carrying value and fair value less costs to sell. No
depreciation is charged in respect of non-current assets classified as held for
sale.
Impairment losses on initial classification as held for sale are included in
profit or loss, even when there is a revaluation. The same applies to gains and
losses on subsequent measurement.
INVESTMENTS
The classification of investments is dependent on the purpose for which the
investments were acquired. Management determines the classification of its
investments at the time of purchase and re-evaluates such designation on a
regular basis. Investments with a fixed maturity and fixed or determinable
payments that management has the intent and ability to hold to maturity are
classified as held-to- maturity and are included in non-current assets.
Investments intended to be held for an indefinite period of time are classified
as available- for-sale and are included in non-current assets.
Purchases and sales of investments are recognised on the date that the Group
commits to purchase or sell the asset. Cost of purchase includes transaction
costs. Available-for-sale investments are subsequently carried at fair value.
Changes in fair value are included in profit and loss for the period in which
they arise. Held-to-maturity investments are carried at amortised cost using
the effective interest rate method.
ENVIRONMENTAL REHABILITATION RECOGNITION
Long-term environmental obligations are based on the mine"s environmental
management plans, in compliance with current environmental and regulatory
requirements. Full provision is made for the estimated cost of restoring the
environmental disturbance that has occurred up to the balance sheet date.
Movements in the obligation due to additional environmental disturbances and
changes in the discount rate are capitalised and amortised over the remaining
life of the mine.
Movements in the provisions due to the unwinding of the discount on the net
present value of the obligation is expensed in the income statement.
The estimated cost of rehabilitation is reviewed annually and adjusted as
appropriate for changes in legislation. Cost estimates are not reduced by the
potential proceeds from the sale of assets or from plant clean-up at closure,
in view of the uncertainty of estimating the potential future proceeds.
Annual contributions are made to an insurance policy to fund the estimated cost
of rehabilitation during and at the end of the life of the mine. The funds
contributed to these insurance policies are included under non-current assets.
TAXATION
Income tax on the profit or loss for the period comprises current and deferred
tax. Income tax is recognised in the income statement, except to the extent that
it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the period,
using tax rates enacted or substantially enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing
for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation
purposes. The following temporary differences are not provided for: goodwill
not deductible for tax purposes, the initial recognition of assets or
liabilities that affect neither accounting nor taxable profit, and differences
relating to investments in subsidiaries to the extent that they will probably
not reverse in the foreseeable future. The amount of deferred tax provided is
based on the expected manner of realisation or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantively
enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised. Deferred tax assets are reduced to the extent that it is no longer
probable that the related tax benefit will realise.
FINANCIAL INSTRUMENTS
Financial instruments carried on the balance sheet include cash and bank
balances, investments, receivables, trade payables and borrowings. These
instruments are carried at their estimated fair value. The particular
recognition methods adopted are disclosed in the individual policy statement
associated with each item.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents are carried on the balance sheet at fair value. For
the purpose of the cash flow statement, cash and cash equivalents comprise cash
on hand, deposits held at call with banks and bank balances. Cash that has been
pledged in respect of guarantees is indicated as restricted cash.
TRADE RECEIVABLES
Trade receivables are carried at original invoice amount less provision made
for impairment of these receivables. A provision for impairment of trade
receivables is established when there is objective evidence that the Group will
not be able to collect all amounts due according to the original terms of the
receivables.
TRADE PAYABLES
Trade payables are carried at original invoice amount.
LEASES
(i) Finance leases
Assets held under finance leases are capitalised and included in property,
plant and equipment at the lower of the present value of the minimum lease
payments or the fair value of the leased asset as determined at the inception
of the lease. The obligations relating to finance leases, net of finance
charges in respect of future periods, are included within interest bearing
borrowings, with the amount payable within 12 months included in the current
portion of borrowings within short-term liabilities. The interest element of
the rental obligation is allocated to accounting periods during the lease term
to reflect the constant rate of interest on the remaining balance of the
obligation for each accounting period. The assets acquired under finance leases
are depreciated over the shorter of the useful life of the asset or the lease
term.
When a sale and leaseback transaction results in a finance lease, any excess of
proceeds over the carrying amount is recognised as deferred income and
amortised over the term of the lease.
(ii) Operating leases
Rentals under operating leases are charged to the income statement on a
straight-line basis.
INVENTORIES
(i) Stores and Materials
Stores and materials are valued at the lower of cost and net realisable value
on a weighted average cost basis. Obsolete, redundant and slow moving stock is
identified and written-down to economic or realisable values. Net realisable
value is the estimated selling price in the ordinary course of business, less
selling expenses.
(ii) Platinum Group Metals Concentrate
PGM concentrate on hand is considered final product inventory and is valued at
the lower of average cost of production and estimated net realisable value. The
average cost of production is taken as total cost incurred on mining, including
depreciation and amortisation costs, and is allocated to inventory on a units
production basis. Inventory contained in stockpiles is valued at the lower of
average cost of production (including all mining costs) and estimated net
realisable value.
(iii) Stockpiles
Stockpiles are measured annually by surveyors, and valued at the lower of
incremental costs and estimated net realisable value.
FOREIGN CURRENCIES
(i) Functional currency
Items included in the financial statements of each of the Group"s entities are
measured using the primary economic environment in which the entity operates
("the functional currency"). With the acquisition of Messina by Lonmin on
15 June 2005, the Group changed it"s functional currency from South African
Rand to US dollar. Transactions recorded to this date was converted to US
dollar at spot rate on 15 June 2005. The Group"s presentation currency remains
the South African Rand and as such balance sheet items are translated into South
African Rand at spot rate at year-end and income statement items are translated
into South African Rand on an average rate for the period under review.
Differences resulting due to this translation method are recorded in equity.
Because the change in functional currency is a prospective change, comparative
figures are not adjusted from what was reported previously.
(ii) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated to
South African Rand at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in the income
statement. Non-monetary assets and liabilities that are measured in terms of
historical cost in foreign currency are translated using the exchange rate at
the date of the transaction. Non-monetary assets and liabilities denominated in
foreign currencies that are stated at the fair value are translated to South
African Rand at the foreign exchange rates ruling at the dates the fair value
was determined.
REVENUE RECOGNITION
Revenue comprises the Rand amount received and receivable from customers
outside the Group in respect of the supply of PGM concentrate produced. Revenue
is recognised when risks and rewards have passed to the customer, net of sales
tax, discounts, smelting and refining charges. The risks and rewards associated
with ownership is deemed to have passed once the recipient of PGM"s take
receipt of delivery. Revenue accrued during the development stage of a mine is
set-off against capitalised development costs.
Other revenue comprises sale of scrap and rental earned by the Group and is
recognised as it accrues (taking into account the effective yield on the asset)
unless collectability is in doubt.
NET FINANCING COSTS
Net finance costs comprise interest payable on borrowings calculated using the
effective interest rate method, interest receivable on funds invested, dividend
income and foreign exchange gains and losses.
EXPLORATION PROJECTS
Exploration costs are expensed if they relate to expenditure necessary to
delineate and quantify the reserves and resources required to replace those
extracted or in the case of expansion and new opportunities, until a probable
reserve has been defined and confirmed by a Competent Person (refer to note 26
regarding change in accounting policy). At that point, further costs are
capitalised and amortised over their expected useful lives or the remaining
life of mine, if shorter, to residual value.
INTEREST BEARING BORROWINGS
Borrowings are recognised initially at the fair value of proceeds received,
net of transaction costs incurred, when they become party to the contractual
provisions. Borrowings are subsequently stated at amortised cost using the
effective interest rate method. Any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the income
statement over the period of the borrowings as interest.
EMPLOYEE BENEFITS
(i) Defined contribution plan
Obbligations for contributions to defined contribution pension plans are
recognised as an expense in the income statement as incurred.
(ii) Share-based payments transactions
The share option programme allows Group employees to acquire shares of the
holding company. The fair value of options granted is recognised as an employee
with a corresponding increase in equity. The fair value is measured at grant
date and spread over the period during which the employees become unconditional
entitled to the options. The amount recognised as an expense is adjusted to
reflect the actual number of share options that vest, except where forfeiture is
only due to share prices not achieving the threshold for vesting.
PROVISIONS
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate of
the amount can be made. Where the Group expects a provision to be reimbursed,
for example under an insurance contract, the reimbursement is recognised as a
separate asset, but only when the reimbursement is virtually certain.
SEGMENT INFORMATION
No segment information has been presented as the Group only operates one
mining operation in the Limpopo province.
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 30 September 2005
GROUP
2005 2004
(9 MONTHS) (12 MONTHS)
R"000 R"000
1 REVENUE
Platinum Group Metals ("PGM") Sales 259 417 276 131
2 COST OF SALES
Opening inventory - PGM concentrate and stock
pile 570 -
Direct mining costs 163 109 181 636
Indirect mining costs 70 832 93 072
Closing inventory - PGM concentrate and stock
pile (5 095) (570)
229 416 274 138
3 OTHER OPERATING INCOME
Sale of scrap 377 136
Settlement discount 2 6
Profit on disposal of asset 260 873
Deferred income - sale and lease back 78 39
717 1 054
4 LOSS FROM OPERATIONS
The following items have been charged in
arriving at
loss from operations:
Auditor"s remuneration 433 668
- Audit fees 331 612
- Other services 94 49
- Expenses 8 7
Directors" emoluments - Non-executive 57 36
- Fees for services as a director 37 12
- Fees for services as a director of subsidiary 10 12
- Other services 10 12
Amortisation of mining assets &
development costs 40 018 75 906
Depreciation 30 915 39 352
- Plant and Equipment 30 353 38 609
- Land and buildings 562 743
Loss on disposal of asset 211 254
Fees relating to non-employees: 7 484 16 923
- Managerial services 6 498 13 807
- Professional fees for technical services 917 2 991
- Professional fees for secretarial services 69 125
Assets impaired: 2 927 1 397
- Tax asset - 720
- Investments - 677
- Water treatment plant 2 927 -
Provision for bad debts - 416
Bad debts written-off - 9
Staff costs 105 427 148 478
- Wages and salaries 102 729 144 648
- Pension costs - defined contribution plans 2 698 3 830
Operating lease rentals 1 657 2 056
- Mining equipment 1 234 1 646
- Office equipment 423 410
COMPANY
2005 2004
(9 MONTHS) (12 MONTHS)
R"000 R"000
1 REVENUE
Platinum Group Metals ("PGM") Sales - -
2 COST OF SALES
Opening inventory - PGM concentrate and stock
pile - -
Direct mining costs - -
Indirect mining costs - -
Closing inventory - PGM concentrate and stock
pile - -
- -
3 OTHER OPERATING INCOME
Sale of scrap - -
Settlement discount - -
Profit on disposal of asset - -
Deferred income - sale and lease back - -
-
4 LOSS FROM OPERATIONS
The following items have been charged in
arriving at
loss from operations:
Auditor"s remuneration 93 109
- Audit fees 83 100
- Other services 10 9
- Expenses - -
Directors" emoluments - Non executive 37 12
- Fees for services as a director 37 12
- Fees for services as a director of subsidiary - -
- Other services - -
Amortisation of mining assets &
development costs - -
Depreciation - -
- Plant and Equipment - -
- Land and buildings - -
Loss on disposal of asset
Fees relating to non-employees: - -
- Managerial services - -
- Professional fees for technical services - -
- Professional fees for secretarial services - -
Assets impaired: - 720
- Tax asset - 720
- Investments - -
- Water treatment plant - -
Provision for bad debts - -
Bad debts written-off - -
Staff costs - -
- Wages and salaries - -
- Pension costs - defined contribution plans - -
Operating lease rentals - -
- Mining equipment - -
- Office equipment - -
GROUP
2005 2004
(9 MONTHS) (12 MONTHS)
R"000 R"000
5 NET FINANCE COSTS
Interest income
- Bank interest 207 262
- Interest on investment 188 539
395 801
Interest expense
- Interest on bank overdraft and creditors (16 526) (6 571)
- Interest on borrowings (61 843) (58 792)
- Interest on finance leases (484) (715)
- Interest on ultimate shareholder"s loan (10 772) (3 516)
(79 670) (79 549)
Unrealised foreign exchange (loss) / profit (74 042) 44 026
Unwinding of effective interest on
decommissioning assets (431) -
Net finance costs (153 748) (34 722)
Unrealised foreign gains and losses on foreign currency borrowings has been
reclassified as finance costs, to improve disclosure.
6 TAXATION
Current tax - 365
The tax on the Group"s loss before tax differs
from the
theoretical amount that would arise using the
basic tax
rate of South Africa as follows:
Loss before tax (262 185) (222 178)
Tax calculated at a tax rate of 29% (2004: 30%) (76 034) (66 653)
Unutilised assessed losses and unredeemed capital 76 034 66 653
Prior year provision - 365
Tax charge - 365
No income tax is payable for the period ended
30 September 2005 as a result of accumulated
unredeemedcapital expenditure carried forward which
amounts to approximately R1 105 million (2004: R1 049
million) and a estimated taxation loss of approximately
R399.8 million (2004: R373.0 million) which is
available for set-off against future taxable mining
income. The statutory tax rate was adjusted from 30%
to 29% during the period under review.
As the Company is in an assessed loss position,
the directors deem it inappropriate to raise any
deferred tax asset as future profits cannot be
reliability measured.
7 LOSS PER SHARE
Basic loss per share is calculated by dividing
the net loss
attributable to shareholders by the weighted
average number
of shares in issue during the period:
Net loss attributable to shareholders (262 185) (222 543)
Basic loss per share (Cents) (1 306.35) (1 108.83)
Diluted loss per share is calculated by dividing
the net loss
attributable to shareholders by the weighted
average number
of shares in issue during the period:
Net loss attributable to shareholders (262 185) (222 543)
Diluted loss per share (Cents) (1 306.35) (1 108.83)
COMPANY
2005 2004
(9 MONTHS) (12 MONTHS)
R"000 R"000
5 NET FINANCE COSTS
Interest income
- Bank interest 1 12
- Interest on investment - -
1 12
Interest expense
- Interest on bank overdraft and creditors - -
- Interest on borrowings - -
- Interest on finance leases - -
- Interest on ultimate shareholder"s loan - -
- -
Unrealised foreign exchange (loss) / profit - -
Unwinding of effective interest on
decommissioning assets - -
Net finance costs 1 12
Unrealised foreign gains and losses on foreign currency borrowings has been
reclassified as finance costs, to improve disclosure.
6 TAXATION
Current tax - -
The tax on the Group"s loss before tax differs
from the
theoretical amount that would arise using the
basic tax
rate of South Africa as follows:
Loss before tax - -
Tax calculated at a tax rate of 29% (2004: 30%) - -
Unutilised assessed losses and unredeemed capital - -
Prior year provision - -
Tax charge - -
No income tax is payable for the period ended
30 September 2005 as a result of accumulated
unredeemedcapital expenditure carried forward which
