| Thu 30 Nov 2006, 16:00 | | Wits Gold - Unaudited interim results for the six |
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WGR
WGR
Wits Gold - Unaudited interim results for the six months ended 31 August 2006
Witwatersrand Consolidated Gold Resources Limited
Incorporated in the Republic of South Africa
Registration Number 2002/031365/06
JSE Code WGR & ISIN ZAE000079703
"Wits Gold" or "the Company"
Unaudited interim results
for the six months ended 31 August 2006
Highlights
* Successful listing on JSE Limited
* Initiated Level 1 ADR programme in the United States
* Granted two additional prospecting rights
* Increase in Inferred Resources to 158 Moz gold and 134 Mlbs U3O8
* Commenced exploration drilling
Condensed income statements for the six months ended 31 August 2006
Six months ended Year ended
31 August 28 February
2006 2005 2006
(Unaudited) (Unaudited) (Audited)
R R R
Revenue - - -
Operating loss (8 419 877) (1 467 202) (5 017 253)
Interest income 1 027 359 948 676 1 885 667
Interest expense - (516) (5 566)
Loss for the period/year (7 392 518) (519 042) (3 137 152)
after taxation
Basic, headline and
diluted loss per share
Weighted average number of 24 685 048 24 153 106 24 653 106
shares in issue
Basic and headline loss 29,95 2,15 12,73
per share (cents)
Diluted weighted average 24 845 751 24 153 106 24 991 662
number of shares in issue
Diluted loss per share 40,12 2,15 23,99
(cents)
Condensed balance sheets at 31 August 2006
As at As at
31 August 28 February
2006 2005 2006
(Unaudited) (Unaudited) (Audited)
R R R
Assets
Non-current assets 20 574 047 16 217 714 18 521 734
Current assets 28 921 357 28 886 769 26 156 486
Total assets 49 495 404 45 104 483 44 678 220
Equity and liabilities
Capital and reserves 46 686 337 44 336 085 43 912 855
Current liabilities 2 809 067 768 398 765 365
Total equity and 49 495 404 45 104 483 44 678 220
liabilities
Condensed statements of changes in shareholders" equity
for the six months ended 31 August 2006
Equity-
settled
share-
Ordinary based
share Share payment
capital premium reserve
R R R
Balance at 28 February 246 531 47 092 879 339 500
2005 (Audited)
Loss for the period - - -
Balance at 31 August 2005 246 531 47 092 879 339 500
(Unaudited)
Balance at 28 February 246 531 47 092 879 2 534 380
2006 (Audited)
Loss for the period - - -
Equity-settled share-based - - 2 466 000
payment
Issue of share capital 4 000 7 696 000 -
Balance at 31 August 2006 250 531 54 788 879 5 000 380
(Unaudited)
Accu-
mulated
loss Total
R R
Balance at 28 February (2 823 783) 44 855 127
2005 (Audited)
Loss for the period (519 042) (519 042)
Balance at 31 August 2005 (3 342 825) 44 336 085
(Unaudited)
Balance at 28 February (5 960 935) 43 912 855
2006 (Audited)
Loss for the period (7 392 518) (7 392 518)
Equity-settled share-based - 2 466 000
payment
Issue of share capital - 7 700 000
Balance at 31 August 2006 (13 353 453) 46 686 337
(Unaudited)
Condensed cash flow statements for the six months ended 31 August 2006
Six months ended Year ended
31 August 28 February
2006 2005 2006
(Unaudited) (Unaudited) (Audited)
R R R
Net cash generated (3 689 123) 302 646 262 408
by/(utilised in) operating
activities
Net cash utilised in (2 104 141) (1 219 013) (3 567 833)
investing activities
Net cash (utilised 7 700 000 (1 051 397) (1 518 601)
in)/generated by financing
activities
(Decrease)/increase in 1 906 736 (1 967 764) (4 824 026)
cash and cash equivalents
Unrestricted cash and cash 25 963 176 30 787 202 30 787 202
equivalents at beginning
of the period/year
Unrestricted cash and cash 27 869 912 28 819 438 25 963 176
equivalents at end of the
period/year
Commentary
Overview
During the six month period under review, Wits Gold has become a publicly
listed company on the JSE Limited (JSE). This milestone was achieved on 24
April 2006 with the shares issued at R20,00. The debut was a success with
trading volumes on that day exceeding 170 000 shares with an aggregate value
of R8,39 million, and a closing share price of R52,00. Since then, based to
100 the share price has illustrated the effects of gearing by outperforming
both the R/kg and US$/oz prices of gold. By 31 August 2006, the share price
had improved to R64,00, whilst the average daily trading volume since listing
has been 21 818 shares with a value of approximately R1,4 million. In order to
further improve the liquidity of Wits Gold shares, a Level 1 ADR programme has
been initiated in the United States.
Background to Company
Wits Gold is a gold and uranium exploration company that was originally
established in 2003 to acquire substantial mineral resources in the
Witwatersrand Basin. The granting of six new order prospecting rights in late
2005, the definition of a SAMREC compliant resource by Snowden Mining Industry
Consultants and the JSE listing marked the completion of the initial phase of
the Company"s development. Since then, Wits Gold has been awarded two
additional prospecting rights, so that the total Inferred Resource available
to the Company comprises 158,8 Moz of gold and 134 Mlbs of uranium oxide. This
resource is located in `brownfields" areas adjacent to current mining
operations in the Carletonville, Klerksdorp and southern Free State
Goldfields.
Events subsequent to the review period
In early October, Wits Gold purchased a 42 hectare agricultural property in
the Potchefstroom district. Over the next six months, a world class storage
warehouse will be constructed. This will accommodate one of the Company"s
principle assets, the 526 km of core that was acquired from AngloGold Ashanti
Limited, Gold Fields Limited and Harmony Gold Mining Company Limited, as well
as providing storage and sampling facilities for new core resulting from the
Company"s drilling programmes.
The Wits Gold Annual General Meeting was held in Johannesburg on 5 October. In
addition to routine business matters, a new non-executive director, Mrs Gayle
Wilson was appointed. Mrs Wilson is a chartered accountant and until June
2005, was an audit partner at Ernst and Young.
Towards the end of October, the Company completed a private placement of 557
882 shares at a price of R55,00. This private placement was arranged by JP
Morgan Chase Bank with international institutional investors, and raised a
total of R30,68 million. These funds will be used to complete the
Potchefstroom core yard and to advance the Company"s drilling programmes in
the Witwatersrand Basin.
Future exploration
The next phase in the growth of Wits Gold involves the improved definition of
the mineral resources within the Company"s prospecting rights. Five priority
projects have been identified on the basis of higher gold grades and the
shallower depths of the reefs below surface. Some 2 000 reef intersections
have previously been made within these priority areas. However, in order to
upgrade the gold and uranium mineralisation to the Indicated and Measured
categories as defined by the SAMREC code, further drilling is necessary.
Accordingly, a programme of 20 surface boreholes has been designed to address
this objective by the first quarter of 2009. The first borehole in the
southern Free State started drilling during August, 2006 and a second machine
started work in October.
Basis of accounting
In compliance with JSE Listings Requirements, the interim financial results
for the six month period ended 31 August 2006 have been prepared in accordance
with the International Financial Reporting Standards (`IFRS") which have been
constantly applied. In terms of IAS8, the basic, headline and diluted loss
per share have been restated for the years ended 28 February 2005 and 29
February 2004. A SENS announcement was released on 30 November 2006
explaining these errors. These interim financial statements have not been
audited and do not include all of the information required for full annual
financial statements.
On behalf of the board
Adam Fleming Marc Watchorn
Chairman Chief Executive Officer
Johannesburg
30 November 2006
Date: 30/11/2006 04:00:08 PM Produced by the JSE SENS Department
