TIDMPPN
RNS Number : 1861W
Platmin Limited
15 November 2010
Platmin Limited
(A development stage company)
Condensed Consolidated Interim Financial Statements
for the three and nine month periods ended September 30, 2010
and August 31, 2009
(Unaudited, expressed in United States dollars, unless otherwise stated)
Condensed consolidated interim statement of financial position
as on September 30, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-------------------------------+------------------+-----------+----------+----------+----------+
| | Notes | Sept | Aug | Dec | Feb |
| | | 30, | 31, | 31, | 28, |
| | | 2010 | 2009 | 2009 | 2009 |
| | | $ 000 | $ 000 | $ 000 | $ 000 |
+-------------------------------+------------------+-----------+----------+----------+----------+
| ASSETS | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Non-current | | | | | |
| assets | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Mining | | 47,165 | 39,739 | 43,454 | 30,097 |
| assets | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Intangible | | 13,377 | 9,412 | 9,348 | 5,630 |
| assets | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Property, | 5 | 556,954 | 350,678 | 422,471 | 187,843 |
| plant and | | | | | |
| equipment | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Loans | | 57 | 43 | 50 | 35 |
| receivable | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Restricted | 6 | 77,918 | 5,537 | 7,163 | 2,497 |
| cash - | | | | | |
| cash | | | | | |
| collateral | | | | | |
| and | | | | | |
| guarantees | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Total | | 695,471 | 405,409 | 482,486 | 226,102 |
| non-current | | | | | |
| assets | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Current | | | | | |
| assets | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Inventories | 7 | 12,539 | 5,179 | 9,849 | 6,943 |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Accounts | | 36,936 | 20,010 | 28,452 | 8,506 |
| and | | | | | |
| other | | | | | |
| receivables | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Restricted | 6 | 135,079 | - | - | - |
| cash | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Cash | 8 | 131,082 | 60,871 | 29,375 | 127,950 |
| and | | | | | |
| cash | | | | | |
| equivalents | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Total | | 315,636 | 86,060 | 67,676 | 143,399 |
| current | | | | | |
| assets | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| TOTAL | | 1,011,107 | 491,469 | 550,162 | 369,501 |
| ASSETS | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| EQUITY | | | | | |
| AND | | | | | |
| LIABILITIES | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Equity | | | | | |
| attributable | | | | | |
| to owners of | | | | | |
| the parent | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Share | 9 | 666,795 | 425,535 | 425,535 | 366,180 |
| capital | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Accumulated | | (86,184) | (32,599) | (35,002) | (27,360) |
| deficit | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Other | | 155,387 | 57,203 | 82,587 | (29,939) |
| components | | | | | |
| of equity | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| | | 735,998 | 450,139 | 473,120 | 308,881 |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Non-controlling | | (24,150) | (18,342) | (20,091) | (16,618) |
| interests | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Total | | 711,848 | 431,797 | 453,029 | 292,263 |
| equity | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Non-current | | | | | |
| liabilities | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Long-term | | 4,368 | 3,492 | 3,817 | 2,121 |
| borrowings | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Finance | 10 | 9,322 | 11,924 | 12,282 | - |
| lease | | | | | |
| liability | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Decommissioning | 11 | 91,484 | 27,623 | 52,744 | 12,791 |
| and | | | | | |
| rehabilitation | | | | | |
| provision | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Total | | 105,174 | 43,039 | 68,843 | 14,912 |
| non-current | | | | | |
| liabilities | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Current | | | | | |
| liabilities | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Trade | | 20,365 | 16,548 | 22,144 | 23,574 |
| payables | | | | | |
| and | | | | | |
| accrued | | | | | |
| liabilities | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Revolving | 12 | 10,902 | - | 5,854 | - |
| commodity | | | | | |
| facility | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Current | 10 | 64 | 85 | 292 | - |
| portion | | | | | |
| of | | | | | |
| finance | | | | | |
| lease | | | | | |
| liability | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Current | 13 | 29,723 | - | - | 38,752 |
| portion | | | | | |
| of | | | | | |
| long-term | | | | | |
| borrowings | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Convertible | 14 | 133,031 | - | - | - |
| debenture | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Total | | 194,085 | 16,633 | 28,290 | 62,326 |
| current | | | | | |
| liabilities | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| Total | | 299,259 | 59,672 | 97,133 | 77,238 |
| liabilities | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| TOTAL | | 1,011,107 | 491,469 | 550,162 | 369,501 |
| EQUITY | | | | | |
| AND | | | | | |
| LIABILITIES | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
| NATURE | 1 | | | | |
| OF | | | | | |
| OPERATIONS | | | | | |
| AND GOING | | | | | |
| CONCERN | | | | | |
+-------------------------------+------------------+-----------+----------+----------+----------+
The accompanying notes are an integral part of the condensed consolidated
interim financial statements
Condensed consolidated interim statement of financial position
as on September 30, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-----------------+--------+----------+---------+----------+----------+
| | | For the three | For the nine |
| | | months ended | months ended |
+-----------------+--------+--------------------+---------------------+
| | | Sept | Aug | Sept | Aug |
| | | 30, | 31, | 30, | 31, |
+-----------------+--------+----------+---------+----------+----------+
| | | 2010 | 2009 | 2010 | 2009 |
+-----------------+--------+----------+---------+----------+----------+
| | Notes | $ 000 | $ 000 | $ 000 | $ 000 |
+-----------------+--------+----------+---------+----------+----------+
| General | 15 | (6,918) | (4,684) | (16,233) | (20,751) |
| expenses | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| Other | 15 | (17,338) | 11,169 | (33,754) | 2,459 |
| (expenses) | | | | | |
| and income | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| Finance | | (1,778) | 138 | (5,254) | (1,158) |
| costs | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| (Loss) | | (26,034) | 6,623 | (55,241) | (19,450) |
| / | | | | | |
| income | | | | | |
| before | | | | | |
| taxation | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| Income | | - | (3) | - | (3) |
| tax | | | | | |
| expense | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| (LOSS) | | (26,034) | 6,620 | (55,241) | (19,453) |
| / | | | | | |
| INCOME | | | | | |
| FOR | | | | | |
| THE | | | | | |
| PERIOD | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| Loss | | | | | |
| attributable | | | | | |
| to: | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| | | (26,910) | 7,736 | (51,182) | (16,733) |
| Owners | | | | | |
| of the | | | | | |
| parent | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| | | 876 | (1,116) | (4,059) | (2,720) |
| Non-controlling | | | | | |
| interest | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| | | (26,034) | 6,620 | (55,241) | (19,453) |
+-----------------+--------+----------+---------+----------+----------+
| | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| Loss | | | | | |
| per | | | | | |
| share | | | | | |
| (in | | | | | |
| currency | | | | | |
| units) | | | | | |
| attributable | | | | | |
| to owners of | | | | | |
| the parent: | | | | | |
+-----------------+--------+----------+---------+----------+----------+
| | 16 | (0.05) | 0.02 | (0.09) | (0.05) |
| Basic | | | | | |
| and | | | | | |
| diluted | | | | | |
+-----------------+--------+----------+---------+----------+----------+
The accompanying notes are an integral part of the condensed consolidated
interim financial statements
Condensed consolidated interim statement of comprehensive income
for the three and nine months ended September 30, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-----------------+--------+----------+-----------+----------+-----------+
| | | For the three | For the nine |
| | | months ended | months ended |
+-----------------+--------+----------------------+----------------------+
| | | Sept | Aug | Sept | Aug |
| | | 30, | 31, | 30, | 31, |
+-----------------+--------+----------+-----------+----------+-----------+
| | | 2010 | 2009 | 2010 | 2009 |
+-----------------+--------+----------+-----------+----------+-----------+
| | Notes | $ 000 | $ 000 | $ 000 | $ 000 |
+-----------------+--------+----------+-----------+----------+-----------+
| Loss | | (26,034) | 6,620 | (55,241) | (19,453) |
| for | | | | | |
| the | | | | | |
| period | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| Other | | 22,445 | (11,399) | 42,664 | (86,816) |
| comprehensive | | | | | |
| income / | | | | | |
| (expenses) | | | | | |
| (net of tax) | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| Exchange | | 22,445 | (11,399) | 42,664 | (86,816) |
| gain / | | | | | |
| (loss) | | | | | |
| on | | | | | |
| translation | | | | | |
| from | | | | | |
| functional | | | | | |
| to | | | | | |
| presentation | | | | | |
| currency | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| Income | | - | - | - | - |
| tax | | | | | |
| relating | | | | | |
| to | | | | | |
| components | | | | | |
| of other | | | | | |
| comprehensive | | | | | |
| income | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| TOTAL | | (3,589) | (4,779) | (12,577) | (106,269) |
| COMPREHENSIVE | | | | | |
| LOSS FOR THE | | | | | |
| PERIOD | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| Total | | | | | |
| comprehensive | | | | | |
| (loss) / | | | | | |
| income | | | | | |
| attributable | | | | | |
| to: | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| | | (4,465) | (3,663) | (8,518) | (103,549) |
| Owners | | | | | |
| of the | | | | | |
| parent | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| | | 876 | (1,116) | (4,059) | (2,720) |
| Non-controlling | | | | | |
| interest | | | | | |
+-----------------+--------+----------+-----------+----------+-----------+
| | | (3,589) | (4,779) | (12,577) | (106,269) |
+-----------------+--------+----------+-----------+----------+-----------+
The accompanying notes are an integral part of the condensed consolidated
interim financial statements
Condensed consolidated interim statement of changes in shareholders' equity
for the three and nine months ended September 30, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| | Equity attributable to the shareholders | | |
+-----------------------+------------------------------------------------------------------+-----------------+----------+
| | Share | Deficit | Share | Warrants | Foreign | Subtotal | Non-controlling | Total |
| | Capital | | Based | | Currency | | interest | Equity |
| | | | Payment | | Translation | | | |
| | | | Reserve | | Reserve | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Balance | 366,180 | (27,360) | 7,329 | 846 | (38,114) | 308,881 | (16,618) | 292,263 |
| at | | | | | | | | |
| February | | | | | | | | |
| 28, 2009 | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Shares | 59,355 | - | - | - | - | 59,355 | - | 59,355 |
| issued | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Loss | - | (7,642) | - | - | - | (7,642) | (3,473) | (11,115) |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Stock | - | - | 2,838 | - | - | 2,838 | - | 2,838 |
| based | | | | | | | | |
| compensation | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Other | | | | | | | | |
| comprehensive | | | | | | | | |
| income: | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Currency | - | - | - | - | 109,688 | 109,688 | - | 109,688 |
| translation | | | | | | | | |
| adjustment | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Balance | 425,535 | (35,002) | 10,167 | 846 | 71,574 | 473,120 | (20,091) | 453,029 |
| at | | | | | | | | |
| December | | | | | | | | |
| 31, 2009 | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Shares | 241,260 | - | - | - | - | 241,260 | - | 241,260 |
| issued | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Loss | - | (51,182) | - | - | - | (51,182) | (4,059) | (55,241) |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Stock | - | - | 30,136 | - | - | 30,136 | - | 30,136 |
| based | | | | | | | | |
| compensation | | | | | | | | |
| * | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Other | | | | | | | | |
| comprehensive | | | | | | | | |
| income: | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Currency | - | - | - | - | 42,664 | 42,664 | - | 42,664 |
| translation | | | | | | | | |
| adjustment | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Balance | 666,795 | (86,184) | 40,303 | 846 | 114,238 | 735,998 | (24,150) | 711,848 |
| at | | | | | | | | |
| September | | | | | | | | |
| 30, 2010 | | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| | Note 9 | | | | | | | |
+-----------------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
* The movement includes stock based compensation of US$3.471 million relating to
the vesting of share options and US$26.664 million relating to the fair value of
the convertible debenture issued.
The accompanying notes are an integral part of the condensed consolidated
interim financial statements
Condensed consolidated interim statement of cashflows
for the three and nine months ended September 30, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+---------------------------------+-------+----------+----------+-----------+-----------+
| | | For the three | For the nine |
| | | months ended | months ended |
+---------------------------------+-------+---------------------+-----------------------+
| |Notes | Sept | Aug | Sept | Aug |
| | | 30, | 31, | 30, | 31, |
| | | 2010 | 2009 | 2010 | 2009 |
| | | $ 000 | $ 000 | $ 000 | $ 000 |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash receipts from customers | | 10,131 | 4,128 | 45,884 | 4,497 |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash paid to suppliers and | | (45,779) | (4,726) | (134,054) | (25,002) |
| employees | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash utilized in operations | | (35,648) | (598) | (88,170) | (20,505) |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Interest received | | 1,123 | - | 1,859 | 1,773 |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Interest paid | | (225) | (76) | (906) | (924) |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Income tax paid | | - | (3) | - | (3) |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Net cash utilized in operating | | (34,750) | (677) | (87,217) | (19,659) |
| activities | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Purchase of property, plant and | | (3,872) | (47,627) | (4,507) | (122,737) |
| equipment | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Additions to intangible assets | | 81 | (2,495) | (1,096) | (4,627) |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Decrease / (Increase) in | | - | 1,486 | - | (401) |
| rehabilitation investment | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Increase in cash investments | | (48,538) | - | (65,497) | (392) |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Increase in deferred | | (68) | (211) | (983) | (1,309) |
| exploration expenses | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Net cash utilized in investing | | (52,397) | (48,847) | (72,083) | (129,466) |
| activities | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| (Decrease) / Increase in loans | | - | (52,547) | 25,708 | (114,449) |
| payable | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Decrease in finance lease | | (460) | (837) | (1,371) | (1,280) |
| liability | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Decrease in revolving commodity | | 7,260 | - | 3,445 | - |
| facility | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Realised foreign exchange | | - | 11,994 | (2) | 27,312 |
| (losses) / gains | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Proceeds from issue of shares | | (265) | - | 241,256 | 59,355 |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Net cash generated / (utilized) | | 6,535 | (41,390) | 269,036 | (29,062) |
| from financing activities | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Net (decrease) / increase in | | (80,612) | (90,914) | 109,736 | (178,187) |
| cash and cash equivalents | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Net foreign exchange | | (1,237) | 56,571 | (8,029) | 150,175 |
| differences | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash and cash equivalents at | 8 | 212,931 | 95,214 | 29,375 | 88,883 |
| the beginning of the period | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| Cash and cash equivalents at | 8 | 131,082 | 60,871 | 131,082 | 60,871 |
| the end of the period | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
| | | | | | |
+---------------------------------+-------+----------+----------+-----------+-----------+
The accompanying notes are an integral part of the condensed consolidated
interim financial statements
Notes to the condensed consolidated interim financial statements
for the three and nine months ended September 30, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
1. Nature of operations and going concern
Platmin Limited (the "Company") and its subsidiaries (the "Group") is a
development stage Natural Resources Group engaged in the acquisition,
exploration and development of Platinum Group Elements ("PGE") properties in the
Republic of South Africa.
The Company was incorporated under the Canada Business Corporation Act on May
29, 2003. The Company has continued as a company under the Business Corporations
Act of British Columbia, Canada effective April 1, 2009. Its Common Shares are
listed on the Toronto Stock Exchange ("TSX") and the Alternative Investment
Market of the London Stock Exchange ("AIM"). The Company trades under the
symbol "PPN" on both exchanges. On July 22, 2009, the Company listed on the
Johannesburg Securities Exchange Limited ("JSE") with the symbol "PLN".
These condensed consolidated interim financial statements have been prepared
using International Financial Reporting Standards ("IFRS") applicable to a going
concern, which contemplates the realization of assets and settlement of
liabilities in the normal course of business as they become due.
The Group changed its financial year end from the last day of February in each
calendar year to the last day of December, effective for the period ending
December 31, 2009. As a result of the change in year end, the comparative
amounts are not directly comparable with the current balances.
For the three months ended September 30, 2010 the Group incurred a loss of
US$26.034 million and as at September 30, 2010 had an accumulated deficit of
US$73.352 million. There are approximately US$14.284 million (ZAR99.184 million)
in existing development commitments for completion of the Pilanesberg project's
Pilanesberg Platinum Mines ("PPM") as at September 30, 2010. The Group is
dependent on the successful completion and profits from production from PPM to
generate cash flows in order to fund its operations and pay debt as it becomes
due. Such circumstances may lend to significant doubt as to the ability of the
Group to meet its obligations as they become due.
The Group raised US$241.523 million in capital by way of a private placement
during May 2010 and had US$131,082 million in cash and cash equivalents at
September 30, 2010 to fund development activities and meet its contractual
obligations.
The Company's financing efforts to date, while substantial, may not be
sufficient in and of themselves to enable the Company to fund all aspects of its
operations when taking into consideration forecasted revenue streams based upon
planned production. Management expects that the Company will be able to secure
the necessary financing to meet the Company's requirements on an ongoing basis.
Nevertheless, there is no assurance that these initiatives will be successful or
sufficient. If the going concern assumption were not appropriate for these
consolidated financial statements, then adjustments to the carrying values of
the assets and liabilities, the reported expenses and the statement of financial
position classifications, which could be material, may be necessary.
2. Statement of compliance
The unaudited condensed consolidated interim financial statements for the three
and nine months ended September 30, 2010 have been prepared in accordance with
the recognition and measurement requirements of IFRS and the presentation and
disclosure requirements of International Accounting Standard ("IAS") 34 Interim
Financial Reporting. These interim results do not include all the information
required for the full annual financial statements, and should be read in
conjunction with the consolidated financial statements of the Group as at and
for the period ended December 31, 2009.
The unaudited condensed consolidated interim financial statements, which have
been prepared on the going concern basis, were approved by the Board of
Directors on November 4, 2010.
This set of unaudited condensed consolidated interim financial statements has
not been audited by the Group's auditors and thus no audit report was issued.
The financial statements are presented in US dollars, rounded to the nearest
thousand.
3. Accounting policies
The accounting policies applied by the Group in these unaudited condensed
consolidated interim financial statements are consistent with those applied by
the Group in its consolidated financial statements as at and for the period
ended December 31, 2009.
4. Segmented information
Management has determined the operating segments based on the internal
management reports reviewed on a monthly basis by the executive committee that
are used to make strategic decisions.
The committee considers the business from an operating perspective. The Group
operates in one geographic segment, the Republic of South Africa. The operating
segments comprise the following:
Mining operation: PPM is currently in an advanced development and build-up
stage. This mine is involved in the mining and processing of platinum group
elements. Although revenue from mining operations is earned and reported on
monthly for purposes of the internal management reports, for published results
in accordance with IFRS, Platmin will offset revenue from mining activities
against capitalised operating costs until such time as PPM is brought into
commercial production.
Development and exploration operations: The Group is engaged in a number of
other development and exploration projects within the Republic of South Africa.
Administrative operations: The Group administration is done at the local
corporate office based in Centurion, the Metropolitan City of Tshwane in the
Republic of South Africa.
Although the development and exploration as well as administrative operations do
not meet the quantitative thresholds required by IFRS 8 - Segment reporting,
management has concluded that these segments should be reported, as it is
closely monitored by the executive committee. The development and exploration
segment is earmarked as the growth area for the Group.
IFRS 8 requires an entity to report the earnings before interest, tax,
depreciation and amortisation ("EBITDA") for each of its reportable segments.
The segment information provided to the committee for the reportable segments
for the nine month periods ended is as follows:
+---------------+-----------+----------+-----------+---------+------------+----------+-----------+----------+-----------+
| | Mining | Development | Administration | Consolidated |
| | | and | | |
| | | exploration | | |
+---------------+----------------------+---------------------+-----------------------+----------------------------------+
| Amounts in | Sept | Aug | Sept | Aug | Sept | Aug | Sept | Aug 31, |
| $ '000 | 30, 2010 | 31, | 30, 2010 | 31, | 30, 2010 | 31, | 30, 2010 | 2009 |
| | | 2009 | | 2009 | | 2009 | | |
+---------------+-----------+----------+-----------+---------+------------+----------+-----------+----------------------+
| Reportable items in the Statement of Comprehensive Income |
+-----------------------------------------------------------------------------------------------------------------------+
| External | 51,332 | 9,996 | - | - | - | - | 51,332 | 9,996 |
| revenues | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+-----------+----------------------+
| Intersegment | - | - | - | - | - | - | - | - |
| revenue | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+-----------+----------------------+
| Adjusted | (72,400) | (34,931) | - | (1) | (33,038) | (18,728) | (105,438) | (53,660) |
| EBITDA | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+-----------+----------------------+
| Reportable items in the Statement of Financial Position |
+-----------------------------------------------------------------------------------------------------------------------+
| Total | 685,626 | 452,513 | 42,989 | 21,454 | 282,492 | 17,502 | 1,011,107 | 491,469 |
| assets | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+----------------------+-----------+
| Additions | 95,552 | 133,734 | 139,261 | 1,084 | 917 | 555 | 235,730 | 135,373 |
| to | | | | | | | | |
| non-current | | | | | | | | |
| assets | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+----------------------+-----------+
| Total | (155,409) | (54,952) | (4,440) | (3,645) | (139,410) | (1,075) | (299,259) | (59,672) |
| liabilities | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+----------------------+-----------+
| | | | | | | | | | |
+---------------+-----------+----------+-----------+---------+------------+----------+-----------+----------+-----------+
The amounts provided to the committee with respect to total assets and total
liabilities are measured in a manner consistent with that of the consolidated
financial statements. These assets and liabilities are allocated based on the
operations of the segment. There were no impairments during the current or prior
reportable periods.
Additions to non-current assets include all additions to Mining assets,
Intangible assets and Property, Plant and Equipment.
A reconciliation of adjusted EBITDA to total comprehensive (loss)/income for the
period is provided as follows:
+---------------------------------------------------------+-----------+-----------+
| | Consolidated |
+---------------------------------------------------------+-----------------------+
| | Sept | Aug |
| | 30, | 31, |
| | 2010 | 2009 |
| | $'000 | $'000 |
+---------------------------------------------------------+-----------+-----------+
| Total EBITDA for reportable segments | (105,438) | (53,660) |
+---------------------------------------------------------+-----------+-----------+
| Revenues offset against mine development costs | (51,332) | (9,996) |
+---------------------------------------------------------+-----------+-----------+
| Mining costs offset against mine development costs | 117,004 | 43,169 |
+---------------------------------------------------------+-----------+-----------+
| Total EBITDA per Consolidated statement of income and | (39,766) | (20,487) |
| comprehensive income | | |
+---------------------------------------------------------+-----------+-----------+
| Foreign exchange (loss)/gain | (9,795) | 2,458 |
+---------------------------------------------------------+-----------+-----------+
| Depreciation | (426) | (263) |
+---------------------------------------------------------+-----------+-----------+
| Finance costs (net) | (5,254) | (1,158) |
+---------------------------------------------------------+-----------+-----------+
| Loss before taxation | (55,241) | (19,450) |
+---------------------------------------------------------+-----------+-----------+
| Income tax expense | - | (3) |
+---------------------------------------------------------+-----------+-----------+
| Exchange differences on translating from functional | 42,664 | (86,816) |
| currency to presentation currency | | |
+---------------------------------------------------------+-----------+-----------+
| Total comprehensive (loss)/income for the period | (12,577) | (106,269) |
+---------------------------------------------------------+-----------+-----------+
5. Property, plant and equipment
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| | Plant | Land | Other | Leased | TOTAL |
| | construction | and | $ 000 | assets | $ 000 |
| | and mine | buildings | | $ 000 | |
| | development | $ 000 | | | |
| | $ 000 | | | | |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| COST | | | | | |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Balance as at February 28, | 186,379 | 721 | 1,099 | - | 188,199 |
| 2009 | | | | | |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Additions | 155,246 | 48 | 410 | 12,031 | 167,735 |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Foreign exchange movement | 66,164 | 256 | 390 | 960 | 67,770 |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Balance as at December 31, | 407,789 | 1,025 | 1,899 | 12,991 | 423,704 |
| 2009 | | | | | |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Additions | 102,348 | 45 | 300 | - | 102,693 |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Foreign exchange movement | 31,811 | 66 | 124 | 812 | 32,813 |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
| Balance as at September | 541,948 | 1,136 | 2,323 | 13,803 | 559,210 |
| 30, 2010 | | | | | |
+----------------------------+----------------------------+-------------------------+---------------------+----------------------+-----------------------+
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| ACCUMULATED DEPRECIATION | | | | | |
| ACCUMULATED DEPRECIATION | | | | | |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Balance as at February 28, | - | - | 356 | - | 356 |
| 2009 | | | | | |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Depreciation for the | - | - | 237 | 428 | 665 |
| period | | | | | |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Foreign exchange movement | - | - | 166 | 46 | 212 |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Balance as at December 31, | - | - | 759 | 474 | 1,233 |
| 2009 | | | | | |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Depreciation for the | - | 1 | 329 | 609 | 939 |
| period | | | | | |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Foreign exchange movement | - | 1 | 16 | 67 | 84 |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
| Balance as at September | - | 2 | 1,104 | 1,150 | 2,256 |
| 30, 2010 | | | | | |
+----------------------------+-----------------+-----------------+-------------------+-------------------+-------------------+
+----------------------------+-----------------------+-------------------+-------------------+-----------------+-----------------------+
| | Plant | Land | Other | Leased | TOTAL |
| | construction | and | $ 000 | assets | $ 000 |
| | and mine | buildings | | $ 000 | |
| | development | $ 000 | | | |
| | $ 000 | | | | |
+----------------------------+-----------------------+-------------------+-------------------+-----------------+-----------------------+
| CARRYING AMOUNTS | | | | | |
+----------------------------+-----------------------+-------------------+-------------------+-----------------+-----------------------+
| At February 28, 2009 | 186,379 | 721 | 743 | - | 187,843 |
+----------------------------+-----------------------+-------------------+-------------------+-----------------+-----------------------+
| At December 31, 2009 | 407,789 | 1,025 | 1,140 | 12,517 | 422,471 |
+----------------------------+-----------------------+-------------------+-------------------+-----------------+-----------------------+
| At September 30, 2010 | 541,948 | 1,134 | 1,219 | 12,653 | 556,954 |
+----------------------------+-----------------------+-------------------+-------------------+-----------------+-----------------------+
Included in the plant construction and mine development is a total of US$164.870
million (Dec 31, 2009: US$78.491 million; Feb 28, 2009: US$14.657 million)
relating to stripping costs which are capitalized as part of the mine
development at PPM.
6. Restricted cash
+-----------------------------------+-----------------------+---------------------+---------------------+---------------------+
| | As at | As at Aug | As | As |
| | Sept 30, | 31, | at | at |
| | 2010 | 2009 | Dec | Feb |
| | $ 000 | $ 000 | 31, | 28, |
| | | | 2009 | 2009 |
| | | | $ | $ |
| | | | 000 | 000 |
+-----------------------------------+-----------------------+---------------------+---------------------+---------------------+
| Cash-backed | 77,918 | 5,537 | 7,163 | 2,497 |
| guarantees | | | | |
+-----------------------------------+-----------------------+---------------------+---------------------+---------------------+
| Cash collateral for | 135,079 | - | - | - |
| convertible | | | | |
| debentures | | | | |
+-----------------------------------+-----------------------+---------------------+---------------------+---------------------+
| Balance at the end | 212,997 | 5,537 | 7,163 | 2,497 |
| of the period | | | | |
+-----------------------------------+-----------------------+---------------------+---------------------+---------------------+
7. Inventories
+-----------------------------------+----------------------+---------------------+---------------------+---------------------+
| | As at | As at Aug | As | As |
| | Sept 30, | 31, | at | at |
| | 2010 | 2009 | Dec | Feb |
| | $ 000 | $ 000 | 31, | 28, |
| | | | 2009 | 2009 |
| | | | $ | $ |
| | | | 000 | 000 |
+-----------------------------------+----------------------+---------------------+---------------------+---------------------+
| Ore stockpiled at | 3,698 | - | 4,323 | 6,943 |
| cost | | | | |
+-----------------------------------+----------------------+---------------------+---------------------+---------------------+
| Work in progress at | 4,337 | 4,846 | 3,154 | - |
| cost | | | | |
+-----------------------------------+----------------------+---------------------+---------------------+---------------------+
| Consumables at cost | 4,504 | 333 | 2,372 | - |
+-----------------------------------+----------------------+---------------------+---------------------+---------------------+
| Balance at the end | 12,539 | 5,179 | 9,849 | 6,943 |
| of the period | | | | |
+-----------------------------------+----------------------+---------------------+---------------------+---------------------+
8. Cash and cash equivalents
+-----------------------------------+-----------------------+-----------+--------------------+--------------------+
| | As at | As at Aug | As | As |
| | Sept 30, | 31, | at | at |
| | 2010 | 2009 | Dec | Feb |
| | $ 000 | $ 000 | 31, | 28, |
| | | | 2009 | 2009 |
| | | | $ | $ |
| | | | 000 | 000 |
+-----------------------------------+-----------------------+-----------+--------------------+--------------------+
| Cash at bank and on hand | 16,866 | 60,871 | 29,375 | 88,883 |
+-----------------------------------+-----------------------+-----------+--------------------+--------------------+
| Cash on short term deposits | 114,216 | - | - | 39,067 |
+-----------------------------------+-----------------------+-----------+--------------------+--------------------+
| Total cash and cash | 131,082 | 60,871 | 29,375 | 127,950 |
| equivalents | | | | |
+-----------------------------------+-----------------------+-----------+--------------------+--------------------+
Cash at banks earns interest at a floating rate based on daily bank deposit
rates. Cash is deposited at highly reputable financial institutions of a high
quality credit standing within the Republic of South Africa and their foreign
affiliates in the United Kingdom. The fair value of cash and cash equivalents
equates the values as disclosed in this note.
9. Share capital
a) Common shares authorized
The Company has an unlimited number of common shares with no par value.
b) Common shares issued
+-------------------------------------------------+---------------------------+-----------------------+
| Movement during the year ended December 31, | | |
| 2009 | Number | Amount |
| | of | $000 |
| | shares | |
+-------------------------------------------------+---------------------------+-----------------------+
| Balance, February 28, 2009 | 370,002,800 | 366,180 |
+-------------------------------------------------+---------------------------+-----------------------+
| Common shares issued | 75,015,552 | 59,355 |
+-------------------------------------------------+---------------------------+-----------------------+
| Balance, December 31, 2009 | 445,018,352 | 425,535 |
+-------------------------------------------------+---------------------------+-----------------------+
| Movement during the period ended | | |
| September 30, 2010 | | |
+-------------------------------------------------+---------------------------+-----------------------+
| Balance, January 1, 2010 | 445,018,352 | 425,535 |
+-------------------------------------------------+---------------------------+-----------------------+
| Common shares issued | 205,761,317 | 241,260 |
+-------------------------------------------------+---------------------------+-----------------------+
| Balance, September 30, 2010 | 650,779,669 | 666,795 |
+-------------------------------------------------+---------------------------+-----------------------+
On May 13, 2010 the Company issued 205,761,317 new common shares at a price of
US$1.215 per common share for a total consideration of US$250.000 million,
raising US$241.260 million net of brokerage and legal fees.
In addition to the funds-raising process, US$135 million of convertible
debentures have been placed. The total funding from the prospectus offering and
private placement was US$385.000 million before underwriting and share issuance
cost.
c) Share options
During the three months ended, September 30, 2010 options were granted to
directors, officers and employees of the Company. The grant was made for 10,800
million stock options of which a third vested on the grant date resulting in a
charge of US$1.999 million to the income statement. The second and third
tranche will vest when certain production targets are met.
The following assumptions were used in the valuation process of the options
issued:
· a risk free interest rate of 2.01%
· a dividend yield of 0%
· an expected volatility of 79%
· an expected option life of 3.26 years
10. Finance lease liability
ESKOM Holdings Limited ("ESKOM", the South African state utility supplier)
designed and built an electrical installation adjacent to the Pilanesberg Mine
to produce the required electricity and ESKOM maintains ownership and control
over all significant aspects of operating the facility. Each month, PPM will pay
a fixed capacity charge and a variable charge based on actual electricity
consumed. These payments attract interest at the South African prime overdraft
rate plus 2%.
The arrangement with ESKOM, entered into during the period under review meet
these requirements of IFRIC 4 - Arrangements containing a lease, and therefore
constitutes a lease and falls within the scope of IAS 17 - Leases and is further
classified as a finance lease due to the sub-station being constructed
exclusively for the use of PPM. An asset (the electrical installation) is
explicitly identified in the arrangement and fulfilment of the arrangement is
dependent on the electrical installation.
Reconciliation between the total minimum lease payments and their present value:
+------------------------------+----------+--------+---------+---------+----------+
| | | Up to | 1 to 5 | More | Total |
| | | 1 year | years | than 5 | $ 000 |
| | | $ 000 | $ 000 | years | |
| | | | | $ 000 | |
+------------------------------+----------+--------+---------+---------+----------+
| Minimum lease payments | | 355 | 5,678 | 14,522 | 20,555 |
+------------------------------+----------+--------+---------+---------+----------+
| Finance cost | | (291) | (4,344) | (6,534) | (11,169) |
+------------------------------+----------+--------+---------+---------+----------+
| Present value | | 64 | 1,334 | 7,988 | 9,386 |
+------------------------------+----------+--------+---------+---------+----------+
11. Decommissioning and rehabilitation provision
+------------------------------------+---------+--------+--------+--------+
| | As at | As at | As at | As at |
| | Sept | Aug | Dec | Feb |
| | 30, | 31, | 31, | 28, |
| | 2010 | 2009 | 2009 | 2009 |
| | $ 000 | $ 000 | $ 000 | $ 000 |
+------------------------------------+---------+--------+--------+--------+
| DISCOUNTED | | | | |
+------------------------------------+---------+--------+--------+--------+
| Balance at the beginning of the | 52,744 | 12,791 | 12,791 | 1,461 |
| period | | | | |
+------------------------------------+---------+--------+--------+--------+
| Increase in liability for the | 35,042 | 10,885 | 36,272 | 11,629 |
| period | | | | |
+------------------------------------+---------+--------+--------+--------+
| Unwinding of interest (Accretion) | 471 | 212 | 426 | 65 |
+------------------------------------+---------+--------+--------+--------+
| | 88,257 | 23,888 | 49,489 | 13,155 |
+------------------------------------+---------+--------+--------+--------+
| Effect of exchange rate changes | 3,227 | 3,735 | 3,255 | (364) |
+------------------------------------+---------+--------+--------+--------+
| Balance at the end of the period | 91,484 | 27,623 | 52,744 | 12,791 |
+------------------------------------+---------+--------+--------+--------+
| UNDISCOUNTED | | | | |
+------------------------------------+---------+--------+--------+--------+
| Balance at the beginning of the | 70,829 | 17,527 | 17,527 | 2,457 |
| period | | | | |
+------------------------------------+---------+--------+--------+--------+
| Increase in liability for the | 45,479 | 13,625 | 47,080 | 15,684 |
| period | | | | |
+------------------------------------+---------+--------+--------+--------+
| | 116,308 | 31,152 | 64,607 | 18,141 |
+------------------------------------+---------+--------+--------+--------+
| Effect of exchange rate changes | 4,333 | 4,973 | 6,222 | (614) |
+------------------------------------+---------+--------+--------+--------+
| Balance at the end of the period | 120,641 | 36,125 | 70,829 | 17,527 |
+------------------------------------+---------+--------+--------+--------+
During June 2010, bank guarantees to the value of USD$18.002 million (ZAR125.000
million) were provided to the DMR in respect of the rehabilitation liability as
at February 28, 2009.These guarantees are secured by cash deposited as
collateral with the issuing bank. A further guarantee of US$49.896 million
(ZAR346.464 million) in respect of the year ended December 31, 2009, was issued
on August 12, 2010 bringing the total amount of guarantees issued during the
nine months ended September 30, 2010 to US$67.898 million (ZAR471.464 million).
PPM is currently in the commissioning phase and the estimate represents the
current cost of environmental liabilities as at the respective period end. An
annual estimate of the quantum of closure costs is necessary in order to fulfil
the requirements of the DMR, as well as meeting specific closure objectives
outlined in the mine's Environmental Management Programme.
Although the ultimate amount of the asset retirement obligation is uncertain,
the fair value of the obligation is based on information that is currently
available. This estimate includes costs for the removal of all current mine
infrastructure and the rehabilitation of all disturbed areas to a condition as
described in the mine's Environmental Management Programme.
The discounted amount of the asset retirement obligation has been determined
using a discount rate of 8.6% and an inflation rate of 6% over a period of 11
years and 8 months. The undiscounted amount of the asset retirement obligation
represents the amount that the company would be liable to pay should the expense
be incurred today.
12. Revolving commodity facility
On October 9, 2009, the Company signed a definitive agreement with Investec Bank
Limited ("Investec") to provide a twelve month renewable revolving commodity
finance facility of up to ZAR400 million (US$54.420 million at an exchange rate
of ZAR7.35: US$1.00) for working capital purposes.
In terms of this facility Investec will finance up to 91% of PPM's platinum,
palladium, gold, copper and nickel deliveries to Northam Platinum Limited. This
facility bears interest at the Johannesburg Interbank Lending Rate ("JIBAR")
plus 3.0% and is repaid within 2 to 3 months upon which the funds are again
available for draw-down.
+-------------------------------+----------+---------+---------+---------+
| | As at | As at | As at | As at |
| | Sept | Aug 31, | Dec 31, | Feb 28, |
| | 30, | 2009 | 2009 | 2009 |
| | 2010 | $ 000 | $ 000 | $ 000 |
| | $ 000 | | | |
+-------------------------------+----------+---------+---------+---------+
| Balance at the beginning of | 5,854 | - | - | - |
| the period | | | | |
+-------------------------------+----------+---------+---------+---------+
| Increase in liability for | 32,925 | - | 5,913 | - |
| the period | | | | |
+-------------------------------+----------+---------+---------+---------+
| Repayment of amounts owing | (28,027) | - | - | - |
+-------------------------------+----------+---------+---------+---------+
| Interest accrued | (76) | - | (53) | - |
+-------------------------------+----------+---------+---------+---------+
| | 10,676 | - | 5,860 | - |
+-------------------------------+----------+---------+---------+---------+
| Effect of exchange rate | 226 | - | (6) | - |
| changes | | | | |
+-------------------------------+----------+---------+---------+---------+
| Balance at the end of the | 10,902 | - | 5,854 | - |
| period | | | | |
+-------------------------------+----------+---------+---------+---------+
13. Current portion of long-term borrowings
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| | As at | As at | As at | As at |
| | Sept | Aug | Dec | Feb |
| | 30, | 31, | 31, | 28, |
| | 2010 | 2009 | 2009 | 2009 |
| | $ 000 | $ 000 | $ 000 | $ 000 |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| Balance at the beginning of | - | 38,752 | 38,752 | - |
| the period | | | | |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| - | - | - | - | 45,518 |
| Bridge | | | | |
| loan | | | | |
| facility | | | | |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| - | 26,603 | - | - | - |
| Pallinghurst | | | | |
| short-term | | | | |
| loan | | | | |
| facility | | | | |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| Interest on borrowings | 1,035 | 2,053 | 2,053 | 4,243 |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| Settlement of bridge loan | - | (51,987) | (51,987) | - |
| facility | | | | |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| | 27,638 | (11,182) | (11,182) | 49,761 |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| Effect of exchange rate | 2,085 | 11,182 | 11,182 | (11,009) |
| changes | | | | |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
| Balance at the end of the | 29,723 | - | - | 38,752 |
| period | | | | |
+--------------------------------------+----------------------+----------+-----------------+----------------------+
On May 14, 2008, PPM signed a US$35 million (ZAR350 million) bridge financing
facility with Standard Bank of South Africa Limited ("Standard Bank"). The
bridge loan facility has been used to fund the development and construction of
the Pilanesberg Mine. The bridge loan facility was repaid in full on August 31,
2009.
In connection with this facility, the Company issued 300,000 warrants
exercisable at $6.95 per common share from September 15, 2008 until expiry of
the warrants on May 14, 2011. The Company has classified this facility as held
to maturity and the fair value of the warrants of US$0.846 million has been
amortized to net income.
On March 22, 2010, a subsidiary of Platmin entered into a ZAR192 million short
term lending facility (the equivalent of US$26 million at an exchange rate of
ZAR7.38 to the US dollar) with Pallinghurst Resources Limited ("Pallinghurst").
As at September 30, 2010, a total of ZAR191million had been drawn against this
facility.
Funds raised will be used by the Company for working capital, to complete the
build-up to full production at the Pilanesberg Platinum Mine (PPM), to pursue a
number of growth and acquisition opportunities, and to further develop the
Company's Eastern Limb projects.
14. Convertible debenture
+------------------------------+------------------------+-----------+--------------------+--------------------+
| | As at | As at Aug | As | As |
| | Sept 30, | 31, | at | at |
| | 2010 | 2009 | Dec | Feb |
| | $ 000 | $ 000 | 31, | 28, |
| | | | 2009 | 2009 |
| | | | $ | $ |
| | | | 000 | 000 |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| Convertible debenture | 135,000 | - | - | - |
| issued | | | | |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| Option component | (26,664) | - | - | - |
| accounted for in equity | | | | |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| | 108,336 | - | - | - |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| Share-based payment | 23,708 | - | - | - |
| expense (Fair value | | | | |
| adjustment at | | | | |
| transaction date) | | | | |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| Fair value of debt | 132,044 | | | |
| component on | | | | |
| transaction date | | | | |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| Interest for the period | 1,969 | - | - | - |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| Transaction costs | (982) | - | - | - |
+------------------------------+------------------------+-----------+--------------------+--------------------+
| | 133,031 | - | - | - |
+------------------------------+------------------------+-----------+--------------------+--------------------+
The debentures were issued on May 13, 2010 to Ridgewood Investments (Mauritius)
Pte Limited, Pallinghurst and Investec Bank Limited, for a principal sum of
US$135.000 million.
The debenture is convertible at the option of the holder into ordinary shares of
Platmin Limited at a conversion price of US$ 1.215 per share by December 31,
2010. If the debenture is not converted into ordinary shares by the maturity
date, the principal sum becomes repayable to the holders.
The debentures have a zero coupon rate. The effective interest rate is 3.76%
calculated based on the expected payments.
The fair value of the option component was determined using the following
assumptions:
· a risk-free rate of 0.61%;
· a volatility index of 67.73% and
· a dividend yield of 0%.
The debentures are secured over cash and cash equivalents of US$135.079 million.
The security provides the holder with a first ranking interest in the collateral
account (or any investments made using the cash collateral account) and any
interest or other proceeds earned thereon. The security interest is released
when the conversion right is exercised.
The fair value of the debt instrument at the reporting date is US$133 million.
15. (Loss) / income before taxation
+---------------------------------------------+----------+---------+----------+----------+
| | For the three | For the nine |
| | months | months |
| | ended | ended |
+---------------------------------------------+--------------------+---------------------+
| | Sept | Aug 31, | Sept | Aug 31, |
| | 30, | 2009 | 30, | 2009 |
| | 2010 | $ 000 | 2010 | $ 000 |
| | $ 000 | | $ 000 | |
+---------------------------------------------+----------+---------+----------+----------+
| Included in the general | | | | |
| expenses are the following: | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Audit fees | 21 | 58 | (401) | (387) |
+---------------------------------------------+----------+---------+----------+----------+
| Consulting and professional | (252) | (143) | (447) | (7,391) |
| fees | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Depreciation | (148) | (89) | (426) | (263) |
+---------------------------------------------+----------+---------+----------+----------+
| Employee expenses | (2,134) | (1,971) | (6,497) | (5,522) |
+---------------------------------------------+----------+---------+----------+----------+
| General and administration | (1,986) | (1,917) | (4,910) | (3,673) |
| expenses | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Loss on disposal of fixed | - | - | - | 5 |
| assets | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Royalty taxes | (73) | - | (195) | - |
+---------------------------------------------+----------+---------+----------+----------+
| Share based payments expense | (2,346) | (622) | (3,357) | (3,520) |
+---------------------------------------------+----------+---------+----------+----------+
| | (6,918) | (4,684) | (16,233) | (20,751) |
+---------------------------------------------+----------+---------+----------+----------+
| Included in other income are | | | | |
| the following: | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Foreign exchange gain / | (17,090) | 11,169 | (9,795) | 2,458 |
| (loss) | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Loss on impairment of | (37) | - | (292) | - |
| exploration project | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| Other income / (expense) | 2 | - | 1 | 1 |
+---------------------------------------------+----------+---------+----------+----------+
| Share-based payment expense | (213) | - | (23,668) | - |
| (fair value adjustment) | | | | |
+---------------------------------------------+----------+---------+----------+----------+
| | (17,338) | 11,169 | (33,754) | 2,459 |
+---------------------------------------------+----------+---------+----------+----------+
16. (Loss) / earnings per share attributable to owners of the parent
+------------------------------------+----------+---------+----------+----------+
| | For the three | For the nine |
| | months ended | months |
| | | ended |
+------------------------------------+--------------------+---------------------+
| | Sept | Aug | Sept | Aug |
| | 30, | 31, | 30, | 31, |
| | 2010 | 2009 | 2010 | 2009 |
| | $ 000 | $ 000 | $ 000 | $ 000 |
+------------------------------------+----------+---------+----------+----------+
| Basic earnings / (loss) per share | (0.05) | 0.02 | (0.09) | (0.05) |
| Basic (loss) / earnings per share | | | | |
| is calculated by dividing the net | | | | |
| (loss) / profit for the period/ | | | | |
| year attributable to owners of the | | | | |
| parent by the weighted average | | | | |
| number of ordinary shares | | | | |
| outstanding during the period/ | | | | |
| year | | | | |
+------------------------------------+----------+---------+----------+----------+
| Reconciliations: | | | | |
+------------------------------------+----------+---------+----------+----------+
| Net (loss) / profit used in | (26,910) | 7,736 | (51,182) | (16,733) |
| calculating basic earnings per | | | | |
| share attributable to owners of | | | | |
| the parent (USD'000) | | | | |
+------------------------------------+----------+---------+----------+----------+
| | | | | |
+------------------------------------+----------+---------+----------+----------+
| Weighted average number of shares | 513,605 | 420,013 | 559,330 | 391,409 |
| used in the calculation of basic | | | | |
| earnings per share ('000) | | | | |
+------------------------------------+----------+---------+----------+----------+
There are no reconciling items between (loss) / earnings and headline (loss) /
earnings and therefore (loss) / earnings per share and headline (loss) /
earnings per share is the same.
Due to the Group reporting a loss for the period ending September 30, 2010 the
diluted (loss) / earnings per share is equal to the basic (loss) / earnings per
share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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