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BPL
BPL
BPL - Barplats - Consolidated Interim Results: six months ended 31 December 2006
Barplats Investments Limited
Incorporated in the Republic of South Africa
(Reg. no. 1987/004830/06)
(ISIN: ZAE000028692)
JSE code: BPL
("Barplats")
Consolidated Interim Results for the six months ended 31 December 2006
Income Statement
(R thousand) Notes Six months Six months Year
ended 31 ended 31 ended 30
December December June 2006
2006 2005
Revenue 335 300 167 324 385 624
Cost of sales 252 291 109 158 278 440
Gross profit/(loss) 83 009 58 166 107 184
Other income 964 824 70 445
Selling and (1 014) (507) (3 895)
distribution costs
Administrative 2 (50 662) (444 445) (480 046)
expenses
Profit/(loss) before 32 297 (385 962) (306 312)
net finance costs
Finance income 11 943 2 344 8 901
Finance costs (23 436) (11 880) (42 885)
Profit/(loss) before 20 804 (395 498) (340 296)
taxation
Income tax expense (110) - (3 089)
Net profit/(loss) 20 694 (395 498) (343 385)
Basic and diluted 7 6.82 (136) (114)
earnings/(loss) per
share (cents)
Headline and diluted 7 6.80 (136) (135)
headline
earnings/(loss) per
share (cents)
Balance Sheet
(R thousand) Notes 31 31 Year ended
December December 30 June
2006 2005 2006
Assets
Non-current assets 3 685 776 420 478 554 948
Current assets 264 299 141 115 130 477
Total assets 950 075 561 593 685 425
Equity and liabilities
Capital and reserves 358 388 270 572 337 003
Non-current liabilities 4 65 438 100 650 31 078
Current liabilities 5 526 249 190 371 317 344
Total equity and 950 075 561 593 685 425
liabilities
Statement of Changes in Shareholders` Equity
Share Share Options Retained Total
(R thousand) capital premium earnings
Balance at 31 3 007 1 218 916 411 163 (1 362 514) 270 572
Dec 2005
Ordinary shares 29 14 971 15 000
issued
Share issue 74 74
expenses
Share-based 609 609
payments
transaction
Settled in cash (1 365) (1 365)
IFRS 2 transfer
between reserves
BEE transaction (397 397 986 -
986)
Employee related (4 394) 4 394 -
share options
Financing (7 125) 7 125 -
related share
options
Net profit for 52 113 52 113
the year ended
30 June 2006
Total income and - - - 52 113 52 113
expenses for the
period
Balance at 30 3 036 1 233 961 902 (900 896) 337 003
June 2006
Share-based 691 691
payments
transaction
Net income for 20 694 20 694
the six months
ended 31
December 2006
Total income and - - - 20 694 20 694
expenses for the
period
Balance at 31 3 036 1 233 961 1 593 (880 202) 358 388
December 2006
Cash Flow Statement
(R thousand) Six months ended 31 Six months ended 31 Year ended 30
December 2006 December 2005 June 2006
Cash flows from (53 954) 1 260 43 979
operating
activities
Cash flows from (153 327) (38 602) (135 561)
investing
activities
Cash flows from 201 318 106 335 122 122
financing
activities
Net increase in (5 963) 68 993 30 540
cash and cash
equivalents
Cash and cash 30 612 72 72
equivalents at the
beginning of the
period
Cash and cash 24 649 69 065 30 612
equivalents at the
end of the period
Nature of business
Barplats is a platinum group metals 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 of South Africa (as amended) and are consistent with
those applied in the financial statements for the year ended 30 June 2006.
The condensed consolidated financial statements, which have been prepared in
accordance with the International Financial Reporting Standard applicable to
half yearly reporting, have been reviewed by KPMG Inc., whose opinion, is
available for inspection at the group`s registered office.
At 31 December 2006 the group`s current liabilities exceeded its current assets
by R244.7 million. Barplats is in the process of raising long-term funding to
continue the growth and expansion of the company`s mining operations and is
optimistic that it will be able to accomplish this optimisation of its
portfolio. The company`s budgets and projected cash flow forecasts, which are
based upon reasonable and supportable assumptions, indicate that the company
will generate positive cash flows.
As indicated in note 5, Barplats is required to repay R395.2 million loans
outstanding in the next twelve months. The directors are confident that the
budgets and forecasts and projected cash flows will be achieved, that the
company will meet its obligations as they fall due and that the company will be
a going concern in the year ahead.
Accordingly the directors continue to adopt a going concern basis in the
preparation of its interim financial statements.
2. Administrative expenses include a foreign exchange loss for the six months
ended 31 December 2006 of R4.4 million (2005:loss R1.8 million).
3. Capital expenditure for the six month period under review amounted to R149.3
million (2005: R36.5 million).
4. Non-current liabilities include:
a provision of R32.4 million for environmental rehabilitation.
the finance lease liability from Wesbank of R33.1 million.
5. Current liabilities include:
- the portion of the interest bearing loan from Impala that is repayable in
June 2007 of R36.3 million.
- the interest bearing amount outstanding from Eagle Worldwide Investments
Ltd. of R45.2 million (US$6.8 million).
- the interest bearing amount outstanding from Eastplats International Inc.,
of R313.7 million.
- the short term portion of the Wesbank finance lease liability amounting to
R10.9 million.
6. Contingent liabilities
The group has contingent liabilities amounting to R5.6 million for which formal
claims have not yet been received. The directors do not believe that any claims
against the group resulting from these matters will be successful.
7. Earnings per share
The calculation of basic, diluted and headline earnings/loss per share is based
on a profit of R20.694 million (2005: loss of R395.498 million).
The basic and diluted weighted average number of shares in issue increased
during the period to 303 614 810 and 304 381 933 respectively (2005: 291 708 289
and 297 842 904 respectively).
Commentary
Safety
The Company achieved 1,5 million fatality free shifts during the period.
People
The number of full time employees reduced to 919 from 1 145 during the period
with the proportion of historically disadvantaged South Africans at 46%. The
company currently employs 10% women. The group`s social and labour plan
addresses initiatives to support the Mining Charter.
The number of contractors on site increased to 773 from 501. Contractors are
primarily involved in capital development and construction.
Production
There have been further improvements in all areas of production despite a delay
in being granted the new order mining right for the Maroelabult east boundary
section. Underground development remains a priority in order to establish
immediately available reserves which support the planned production ramp up.
The high proportion of fixed costs elevate the unit cost of production during
this build up phase of capital project commissioning.
Capital projects
Capital expended during the period was R149.3m, contributing to the successful
commissioning of the second primary mill and the Zandfontein underground
conveyor in September and November respectively. These were significant
milestones in the plan, doubling milling capacity and providing for improved
mining efficiency in the future.
In addition to this, contracts were awarded to Atlas Copco for the supply of
trackless equipment and to Murray and Roberts Cementation for decline
development and re-equipping of the 500m deep Zandfontein vertical shaft.
Mining and Prospecting Rights
Barplats has been granted 15 out of 21 new order prospecting rights and has been
awarded a new order mining right for the Maroelabult eastern boundary. The
granting of the balance of the conversion from old to new order rights is
imminent.
Business Development
A 9 172m drilling programme has been completed on the De Goedeverwachting
portion of the Kennedy`s Vale Project and assay results are awaited. The re-
interpretation of seismic data over this area forms part of the overall
exploration programme.
Initial drilling has commenced as part of a R10m in fill exploration programme
on the Kareespruit property to the north east of the Zandfontein section.
An application for a new order mining right has been submitted for the Crocette
area and subject to mining authorisation development will commence in the second
half of the year.
Statistics
Units Six months Six months Year ended 30
ended 31 Dec ended 31 Dec June 2006
2006 2005
Operations
Stoping
Underground tonnage tonnes 412 282 184 106 698 305
broken
Development
Total metres metres 4 789 3 127 5 475
developed
Concentrator
Tonnes processed tonnes 645 028 577 559 1 176 353
Recoveries - Hard % 75 74 78
rock
PGM`s sold kg 1 509 1 167 2 331
Revenue
Revenue Rm 335.3 167.3 385.6
R/kg sold R/kg 222 200 146 468 165 433
Costs
Total cost Rm 304.9 147.1 346.7
R/ton milled R/ton 472.6 254.8 294.7
R/kg sold R/kg 202 025 128 850 148 340
Capital expenditure Rm 149.3 36.5 132.5
IAN ROZIER
Chairman
WAYNE ROBINSON
Managing Director
14 February 2007
Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Ltd
Ground Floor
70 Marshall Street
Johannesburg 2001
Secretary and Registered Office
TK Savage
1st Floor, Platinum Place
Turnberry Office Park
48 Grosvenor Road
Bryanston, 2021
Directors: IT Rozier (chairman) +, WDR Robinson (managing director), DWJ McAdam
(finance director) +, JB Ahbe #, JE Andrews *, PJ Botha, JR Hawkrigg +
+ Canadian * British # USA
Date: 14/02/2007 17:55:01 Produced by the JSE SENS Department.
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