TIDMPPN
RNS Number : 9692L
Platmin Limited
14 May 2010
Platmin Limited
(A development stage company)
Condensed Consolidated Interim Financial Statements
for the three month periods ended March 31, 2010 and February 28, 2009
(Unaudited, expressed in United States dollars, unless otherwise stated)
Condensed consolidated interim statement of financial position
as on Mar 31, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-----------------+--------+----------+----------+----------+
| | Notes | Mar | Dec | Feb |
| | | 31, | 31, | 28, |
| | | 2010 | 2009 | 2009 |
| | | $ 000 | $ 000 | $ 000 |
+-----------------+--------+----------+----------+----------+
| ASSETS | | | | |
+-----------------+--------+----------+----------+----------+
| Non-current | | | | |
| assets | | | | |
+-----------------+--------+----------+----------+----------+
| Mining | | 44,135 | 43,454 | 30,097 |
| assets | | | | |
+-----------------+--------+----------+----------+----------+
| Intangible | | 9,472 | 9,348 | 5,630 |
| assets | | | | |
+-----------------+--------+----------+----------+----------+
| Property, | 5 | 455,404 | 422,471 | 187,843 |
| plant and | | | | |
| equipment | | | | |
+-----------------+--------+----------+----------+----------+
| Loans | | 52 | 50 | 35 |
| receivable | | | | |
+-----------------+--------+----------+----------+----------+
| Cash | | 7,788 | 7,163 | 2,497 |
| investments | | | | |
| and | | | | |
| guarantees | | | | |
+-----------------+--------+----------+----------+----------+
| Total | | 516,851 | 482,486 | 226,102 |
| non-current | | | | |
| assets | | | | |
+-----------------+--------+----------+----------+----------+
| Current | | | | |
| assets | | | | |
+-----------------+--------+----------+----------+----------+
| Inventories | 6 | 9,031 | 9,849 | 6,943 |
+-----------------+--------+----------+----------+----------+
| Accounts | | 32,798 | 28,452 | 8,506 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+-----------------+--------+----------+----------+----------+
| Cash | 7 | 17,892 | 29,375 | 127,950 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+-----------------+--------+----------+----------+----------+
| Total | | 59,721 | 67,676 | 143,399 |
| current | | | | |
| assets | | | | |
+-----------------+--------+----------+----------+----------+
| TOTAL | | 576,572 | 550,162 | 369,501 |
| ASSETS | | | | |
+-----------------+--------+----------+----------+----------+
| | | | | |
+-----------------+--------+----------+----------+----------+
| EQUITY | | | | |
| AND | | | | |
| LIABILITIES | | | | |
+-----------------+--------+----------+----------+----------+
| Equity | | | | |
| attributable | | | | |
| to owners of | | | | |
| the parent | | | | |
+-----------------+--------+----------+----------+----------+
| Share | | 425,535 | 425,535 | 366,180 |
| capital | | | | |
+-----------------+--------+----------+----------+----------+
| Accumulated | | (38,599) | (35,002) | (27,360) |
| deficit | | | | |
+-----------------+--------+----------+----------+----------+
| Other | | 85,692 | 82,587 | (29,939) |
| components | | | | |
| of equity | | | | |
+-----------------+--------+----------+----------+----------+
| | | 472,628 | 473,120 | 308,881 |
+-----------------+--------+----------+----------+----------+
| Non-controlling | | (21,675) | (20,091) | (16,618) |
| interests | | | | |
+-----------------+--------+----------+----------+----------+
| Total | | 450,953 | 453,029 | 292,263 |
| equity | | | | |
+-----------------+--------+----------+----------+----------+
| Non-current | | | | |
| liabilities | | | | |
+-----------------+--------+----------+----------+----------+
| Long-term | | 3,940 | 3,817 | 2,121 |
| borrowings | | | | |
+-----------------+--------+----------+----------+----------+
| Finance | 8 | 9,085 | 12,282 | - |
| lease | | | | |
| liability | | | | |
+-----------------+--------+----------+----------+----------+
| Decommissioning | 9 | 64,985 | 52,744 | 12,791 |
| and | | | | |
| rehabilitation | | | | |
| provision | | | | |
+-----------------+--------+----------+----------+----------+
| Total | | 78,010 | 68,843 | 14,912 |
| non-current | | | | |
| liabilities | | | | |
+-----------------+--------+----------+----------+----------+
| Current | | | | |
| liabilities | | | | |
+-----------------+--------+----------+----------+----------+
| Trade | | 22,926 | 22,144 | 23,574 |
| payables | | | | |
| and | | | | |
| accrued | | | | |
| liabilities | | | | |
+-----------------+--------+----------+----------+----------+
| Revolving | 10 | 11,400 | 5,854 | - |
| commodity | | | | |
| facility | | | | |
+-----------------+--------+----------+----------+----------+
| Current | 8 | 177 | 292 | - |
| portion | | | | |
| of | | | | |
| finance | | | | |
| lease | | | | |
| liability | | | | |
+-----------------+--------+----------+----------+----------+
| Current | 11 | 13,106 | - | 38,752 |
| portion | | | | |
| of | | | | |
| long-term | | | | |
| borrowings | | | | |
+-----------------+--------+----------+----------+----------+
| Total | | 47,609 | 28,290 | 62,326 |
| current | | | | |
| liabilities | | | | |
+-----------------+--------+----------+----------+----------+
| Total | | 125,619 | 97,133 | 77,238 |
| liabilities | | | | |
+-----------------+--------+----------+----------+----------+
| TOTAL | | 576,572 | 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 income
for the three months ended March 31, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-----------------+--------+---------+----------+
| | | For the three |
| | | months ended |
+-----------------+--------+--------------------+
| | | Mar | Feb |
| | | 31, | 28, |
+-----------------+--------+---------+----------+
| | | 2010 | 2009 |
+-----------------+--------+---------+----------+
| | Notes | $ 000 | $ 000 |
+-----------------+--------+---------+----------+
| General | 12 | (4,393) | (12,716) |
| expenses | | | |
+-----------------+--------+---------+----------+
| Other | 12 | (9) | 1,508 |
| income | | | |
| / | | | |
| (expenses) | | | |
+-----------------+--------+---------+----------+
| Finance | | (779) | (1,282) |
| costs | | | |
+-----------------+--------+---------+----------+
| Loss | | (5,181) | (12,490) |
| before | | | |
| taxation | | | |
+-----------------+--------+---------+----------+
| Income | | - | - |
| tax | | | |
| expense | | | |
+-----------------+--------+---------+----------+
| LOSS | | (5,181) | (12,490) |
| FOR | | | |
| THE | | | |
| PERIOD | | | |
+-----------------+--------+---------+----------+
| | | | |
+-----------------+--------+---------+----------+
| (Loss) | | | |
| / | | | |
| income | | | |
| attributable | | | |
| to: | | | |
+-----------------+--------+---------+----------+
| | | (3,597) | (11,494) |
| Owners | | | |
| of the | | | |
| parent | | | |
+-----------------+--------+---------+----------+
| | | (1,584) | (996) |
| Non-controlling | | | |
| interest | | | |
+-----------------+--------+---------+----------+
| | | (5,181) | (12,490) |
+-----------------+--------+---------+----------+
| | | | |
+-----------------+--------+---------+----------+
| Loss | | | |
| per | | | |
| share | | | |
| (in | | | |
| currency | | | |
| units) | | | |
| attributable | | | |
| to owners of | | | |
| the parent: | | | |
+-----------------+--------+---------+----------+
| | 13 | (0.01) | (0.07) |
| 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 months ended March 31, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+-----------------+--------+---------+----------+
| | | For the three |
| | | months ended |
+-----------------+--------+--------------------+
| | | Mar | Feb |
| | | 31, | 28, |
+-----------------+--------+---------+----------+
| | | 2010 | 2009 |
+-----------------+--------+---------+----------+
| | Notes | $ 000 | $ 000 |
+-----------------+--------+---------+----------+
| Loss | | (5,181) | (12,490) |
| for | | | |
| the | | | |
| period | | | |
+-----------------+--------+---------+----------+
| Other | | (2,592) | (1,017) |
| comprehensive | | | |
| income (net | | | |
| of tax) | | | |
+-----------------+--------+---------+----------+
| Exchange | | (2,592) | (1,017) |
| differences | | | |
| on | | | |
| translation | | | |
| from | | | |
| functional | | | |
| to | | | |
| presentation | | | |
| currency | | | |
+-----------------+--------+---------+----------+
| Income | | - | - |
| tax | | | |
| relating | | | |
| to | | | |
| components | | | |
| of other | | | |
| comprehensive | | | |
| income | | | |
+-----------------+--------+---------+----------+
| TOTAL | | (7,773) | (13,507) |
| COMPREHENSIVE | | | |
| (LOSS) / | | | |
| INCOME FOR | | | |
| THE PERIOD | | | |
+-----------------+--------+---------+----------+
| Total | | | |
| comprehensive | | | |
| (loss) / | | | |
| income | | | |
| attributable | | | |
| to: | | | |
+-----------------+--------+---------+----------+
| | | (6,189) | (12,511) |
| Owners | | | |
| of the | | | |
| parent | | | |
+-----------------+--------+---------+----------+
| | | (1,584) | (996) |
| Non-controlling | | | |
| interest | | | |
+-----------------+--------+---------+----------+
| | | (7,773) | (13,507) |
+-----------------+--------+---------+----------+
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 months ended March 31, 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 | - | - | - | - | - | - | - | - |
| issued | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Loss | - | (3,597) | - | - | - | (3,597) | (1,584) | (5,181) |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Stock | - | - | 513 | - | - | 513 | - | 513 |
| based | | | | | | | | |
| compensation | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Other | | | | | | | | |
| comprehensive | | | | | | | | |
| income: | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Currency | - | - | - | - | 2,592 | 2,592 | - | 2,592 |
| translation | | | | | | | | |
| adjustment | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| Balance | 425,535 | (38,599) | 10,680 | 846 | 74,166 | 472,628 | (21,675) | 450,953 |
| at | | | | | | | | |
| March | | | | | | | | |
| 31, 2010 | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
| | | | | | | | | |
+---------------+---------+----------+---------+----------+-------------+----------+-----------------+----------+
The accompanying notes are an integral part of the condensed consolidated
interim financial statements
Condensed consolidated interim statement of cashflows
for the three months ended March 31, 2010
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
+------------------------------------------------+-------+----------+----------+
| | | For the three |
| | | months ended |
+------------------------------------------------+-------+---------------------+
| |Notes | Mar 31, | Feb |
| | | 2010 | 28, |
| | | $ 000 | 2009 |
| | | | $ 000 |
+------------------------------------------------+-------+----------+----------+
| Cash flows from operating activities | | | |
+------------------------------------------------+-------+----------+----------+
| Cash receipts from customers | | 15,708 | - |
+------------------------------------------------+-------+----------+----------+
| Cash paid to suppliers and employees | | (42,167) | (7,755) |
+------------------------------------------------+-------+----------+----------+
| Cash (utilized in) / generated from operations | | (26,459) | (7,755) |
+------------------------------------------------+-------+----------+----------+
| Interest paid | | (56) | (4,501) |
+------------------------------------------------+-------+----------+----------+
| Income taxes paid | | - | - |
+------------------------------------------------+-------+----------+----------+
| Net cash (used in) / generated from operating | | (26,515) | (12,256) |
| activities | | | |
+------------------------------------------------+-------+----------+----------+
| | | | |
+------------------------------------------------+-------+----------+----------+
| Cash flows from investing activities | | | |
+------------------------------------------------+-------+----------+----------+
| Purchase of property, plant and equipment | | (1,217) | (35,480) |
+------------------------------------------------+-------+----------+----------+
| Proceeds from sale of property, plant and | | - | - |
| equipment | | | |
+------------------------------------------------+-------+----------+----------+
| Additions to intangible assets | | (98) | (5,644) |
+------------------------------------------------+-------+----------+----------+
| Increase in rehabilitation investment | | (492) | (1,074) |
+------------------------------------------------+-------+----------+----------+
| Increase in deferred exploration expenses | | (413) | (1,224) |
+------------------------------------------------+-------+----------+----------+
| Net cash used in investing activities | | (2,220) | (43,422) |
+------------------------------------------------+-------+----------+----------+
| | | | |
+------------------------------------------------+-------+----------+----------+
| Cash flows from financing activities | | | |
+------------------------------------------------+-------+----------+----------+
| Increase in loans payable | | 12,824 | 545 |
+------------------------------------------------+-------+----------+----------+
| (Decrease) in finance lease liability | | (460) | - |
+------------------------------------------------+-------+----------+----------+
| Increase in revolving commodity facility | | 4,964 | - |
+------------------------------------------------+-------+----------+----------+
| Realised foreign exchange gains on settlement | | (1) | - |
| of FEC's | | | |
+------------------------------------------------+-------+----------+----------+
| Increase in loans receivable | | - | 12 |
+------------------------------------------------+-------+----------+----------+
| Proceeds from issue of shares | | - | 172,618 |
+------------------------------------------------+-------+----------+----------+
| Net cash generated from financing activities | | 17,327 | 173,175 |
+------------------------------------------------+-------+----------+----------+
| | | | |
+------------------------------------------------+-------+----------+----------+
| Net (decrease) / increase in cash and cash | | (11,408) | 117,497 |
| equivalents | | | |
+------------------------------------------------+-------+----------+----------+
| Net foreign exchange differences | | (75) | (164) |
+------------------------------------------------+-------+----------+----------+
| Cash and cash equivalents at the beginning of | 7 | 29,375 | 10,617 |
| the period | | | |
+------------------------------------------------+-------+----------+----------+
| Cash and cash equivalents at the end of the | 7 | 17,892 | 127,950 |
| 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 months ended March 31, 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 March 31, 2010 the Group incurred a loss of US$5.181
million and as at March 31, 2010 had an accumulated deficit of US$38.599
million. There are approximately US$16.102 million (ZAR117.948 million) in
existing development commitments for completion of the Pilanesberg project's
Pilanesberg Platinum Mines ("PPM") as at March 31, 2010. The Group is dependent
on the successful completion of PPM to generate cash flows in order to fund its
operations and pay debt as it becomes due. Such circumstances may lend to
substantial doubt as to the ability of the Group to meet its obligations as they
become due and accordingly the appropriateness of the use of the accounting
principles applicable to a going concern.
The Group raised US$59.355 million in capital by way of a private placement
during May 2009 and had US$17.892 million in cash and cash equivalents at March
31, 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
months ended March 31, 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 May 11, 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 reports reviewed
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.
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.
The segment information provided to the committee for the reportable segments
for the three month periods ended is as follows:
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| | Mining | Development | Administration | Consolidated |
| | | and | | |
| | | exploration | | |
+--------------+--------------------+--------------------+-----------------------------------------------------------------+----------------------------------------------------------+
| Amounts in $ | Mar | Feb | Mar | Feb | Mar | Feb | Mar | Feb |
| '000 | 31, 2010 | 28, | 31, 2010 | 28, | 31, 2010 | 28, | 31, 2010 | 28, |
| | | 2009 | | 2009 | | 2009 | | 2009 |
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| Reportable items in the Statement of Comprehensive Income |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| External | 18,503 | - | - | - | - | - | 18,503 | - |
| revenues | | | | | | | | |
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| Intersegment | - | - | - | - | - | - | - | - |
| revenue | | | | | | | | |
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| Adjusted | (19,320) | (289) | - | (1) | (2,457) | (12,332) | (21,777) | (12,622) |
| EBITDA | | | | | | | | |
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| Reportable items in the Statement of Financial Position |
+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Total assets | 513,140 | 221,459 | 37,292 | 11,241 | 26,140 | 136,801 | 576,572 | 369,501 |
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| Additions to | 1,217 | 35,480 | 905 | 2,299 | 98 | 5,644 | 2,220 | 43,423 |
| non-current | | | | | | | | |
| assets | | | | | | | | |
+--------------+----------+---------+-----------+--------+---------------------------------+-------------------------------+-----------------------------+----------------------------+
| Total | 118,932 | 71,554 | 4,039 | 2,208 | 2,646 | 3,476 | 125,617 | 77,238 |
| 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 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 |
+----------------------------------------------------------+---------------------+
| | Mar | Feb |
| | 31, | 28, |
| | 2010 | 2009 |
| | $'000 | $'000 |
+----------------------------------------------------------+----------+----------+
| Total EBITDA for reportable segments | (21,777) | (12,622) |
+----------------------------------------------------------+----------+----------+
| Revenues offset against the cost of the plant | (18,503) | - |
| construction | | |
+----------------------------------------------------------+----------+----------+
| Mining costs offset against the cost of the plant | 36,023 | - |
| construction | | |
+----------------------------------------------------------+----------+----------+
| Total EBITDA per Consolidated statement of income and | (4,257) | (12,622) |
| comprehensive income | | |
+----------------------------------------------------------+----------+----------+
| Foreign exchange gains | (9) | 1,507 |
+----------------------------------------------------------+----------+----------+
| Depreciation | (136) | (93) |
+----------------------------------------------------------+----------+----------+
| Finance costs (net) | (779) | (1,282) |
+----------------------------------------------------------+----------+----------+
| Loss before taxation | (5,181) | (12,490) |
+----------------------------------------------------------+----------+----------+
| Income tax expense | - | - |
+----------------------------------------------------------+----------+----------+
| Exchange differences on translating from functional | (2,592) | (1,017) |
| currency to presentation currency | | |
+----------------------------------------------------------+----------+----------+
| Total comprehensive (loss)/income for the period | (7,773) | (13,507) |
+----------------------------------------------------------+----------+----------+
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 | 30,599 | - | 131 | - | 30,730 |
+----------------------------+--------------+-----------+-------+--------+---------+
| Foreign exchange movement | 2,427 | 6 | 11 | 77 | 2,521 |
+----------------------------+--------------+-----------+-------+--------+---------+
| Balance as at March 31, | 440,815 | 1,031 | 2,041 | 13,068 | 456,955 |
| 2010 | | | | | |
+----------------------------+--------------+-----------+-------+--------+---------+
+--------------------------------+-----------+--------+----------+-------+--------+---------+
| ACCUMULATED DEPRECIATION | | | | | |
| ACCUMULATED DEPRECIATION | | | | | |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Balance as at February 28, | - | - | 356 | - | 356 |
| 2009 | | | | | |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Depreciation for the period | - | - | 237 | 428 | 665 |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Foreign exchange movement | - | - | 166 | 46 | 212 |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Balance as at December 31, | - | - | 759 | 474 | 1,233 |
| 2009 | | | | | |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Depreciation for the period | - | - | 104 | 200 | 304 |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Foreign exchange movement | - | - | 7 | 7 | 14 |
+--------------------------------+-----------+--------+------------------+--------+---------+
| Balance as at March 31, 2010 | - | - | 870 | 681 | 1,551 |
+--------------------------------+-----------+--------+------------------+--------+---------+
| 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 March 31, 2010 | 440,815 | 1,031 | 1,171 | 12,387 | 455,404 |
+--------------------------------+-----------+-------------------+-------+--------+---------+
| | | | | | | |
+--------------------------------+-----------+--------+----------+-------+--------+---------+
Included in the plant construction and mine development is a total of US$100.165
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. Inventories
+-------------------------------------------+----------+----------+----------+
| | As at | As at | As at |
| | Mar 31, | Dec 31, | Feb 28, |
| | 2010 | 2009 | 2009 |
| | $ 000 | $ 000 | $ 000 |
+-------------------------------------------+----------+----------+----------+
| Ore stockpiled at cost | 3,741 | 4,323 | 6,943 |
+-------------------------------------------+----------+----------+----------+
| Work in progress at cost | 2,523 | 3,154 | - |
+-------------------------------------------+----------+----------+----------+
| Consumables at cost | 2,767 | 2,372 | - |
+-------------------------------------------+----------+----------+----------+
| Balance at the end of the period | 9,031 | 9,849 | 6,943 |
+-------------------------------------------+----------+----------+----------+
7. Cash and cash equivalents
+----------------------------------+--------+----------+----------+----------+
| | | As at | As at | As at |
| | | Mar 31, | Dec 31, | Feb 28, |
| | | 2010 | 2009 | 2009 |
| | | $ 000 | $ 000 | $ 000 |
+----------------------------------+--------+----------+----------+----------+
| Cash at bank and on hand | | 17,892 | 29,375 | 88,883 |
+----------------------------------+--------+----------+----------+----------+
| Restricted cash - cash on | | - | - | 39,067 |
| collateral | | | | |
+----------------------------------+--------+----------+----------+----------+
| Total cash and cash equivalents | | 17,892 | 29,375 | 127,950 |
+----------------------------------+--------+----------+----------+----------+
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.
For the purpose of the condensed consolidated interim statement of cash flows,
cash and cash equivalents comprise only the cash at bank and on hand line-item
is disclosed for each period end above.
8. 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 | | 1,009 | 5,382 | 13,767 | 20,158 |
+------------------------------+----------+--------+---------+---------+----------+
| Finance cost | | (832) | (4,118) | (5,946) | (10,896) |
+------------------------------+----------+--------+---------+---------+----------+
| Present value | | 177 | 1,264 | 7,821 | 9,262 |
+------------------------------+----------+--------+---------+---------+----------+
9. Decommissioning and rehabilitation provision
+-----------------------------------------+--------+--------+--------+
| | As at | As at | As at |
| | Mar | Dec | Feb |
| | 31, | 31, | 28, |
| | 2010 | 2009 | 2009 |
| | $ 000 | $ 000 | $ 000 |
+-----------------------------------------+--------+--------+--------+
| Balance at the beginning of the period | 52,744 | 12,791 | 1,461 |
+-----------------------------------------+--------+--------+--------+
| Increase in liability for the period | 11,581 | 36,272 | 11,629 |
+-----------------------------------------+--------+--------+--------+
| Unwinding of interest (Accretion) | 338 | 426 | 65 |
+-----------------------------------------+--------+--------+--------+
| | 64,663 | 49,489 | 13,155 |
+-----------------------------------------+--------+--------+--------+
| Effect of exchange rate changes | 322 | 3,255 | (364) |
+-----------------------------------------+--------+--------+--------+
| Balance at the end of the period | 64,985 | 52,744 | 12,791 |
+-----------------------------------------+--------+--------+--------+
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. The estimated undiscounted liability for the asset retirement
obligation at March 31, 2010 is US$86.7 million (December 31, 2009: US$70.8
million, February 28, 2009: US$17.5 million). 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 asset retirement obligation has been determined using
a discount rate of 8.6% and an inflation rate of 6% over a period of 12 years.
10. 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 |
| | Mar | Dec | Feb |
| | 31, | 31, | 28, |
| | 2010 | 2009 | 2009 |
| | $ 000 | $ 000 | $ 000 |
+-----------------------------------------+----------+--------+--------+
| Balance at the beginning of the period | 5,854 | - | - |
+-----------------------------------------+----------+--------+--------+
| Increase in liability for the period | 16,149 | 5,913 | - |
+-----------------------------------------+----------+--------+--------+
| Repayment of amounts owing | (10,722) | - | - |
+-----------------------------------------+----------+--------+--------+
| Interest accrued | (112) | (53) | - |
+-----------------------------------------+----------+--------+--------+
| | 11,169 | 5,860 | - |
+-----------------------------------------+----------+--------+--------+
| Effect of exchange rate changes | 231 | (6) | - |
+-----------------------------------------+----------+--------+--------+
| Balance at the end of the period | 11,400 | 5,854 | - |
+-----------------------------------------+----------+--------+--------+
11. Current portion of long-term borrowings
+-----------------------------------------+--------+----------+----------+
| | As at | As at | As at |
| | Mar | Dec | Feb 28, |
| | 31, | 31, | 2009 |
| | 2010 | 2009 | $ 000 |
| | $ 000 | $ 000 | |
+-----------------------------------------+--------+----------+----------+
| Balance at the beginning of the period | - | 38,752 | - |
+-----------------------------------------+--------+----------+----------+
| - Bridge loan facility | - | - | 45,518 |
+-----------------------------------------+--------+----------+----------+
| - Pallinghurst short-term facility | 13,106 | - | - |
+-----------------------------------------+--------+----------+----------+
| Interest on borrowings | - | 2,053 | 4,243 |
+-----------------------------------------+--------+----------+----------+
| Settlement of bridge loan facility | - | (51,987) | - |
+-----------------------------------------+--------+----------+----------+
| | 13,106 | (11,182) | 49,761 |
+-----------------------------------------+--------+----------+----------+
| Effect of exchange rate changes | - | 11,182 | (11,009) |
+-----------------------------------------+--------+----------+----------+
| Balance at the end of the period | 13,106 | - | 38,752 |
+-----------------------------------------+--------+----------+----------+
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 term
of the bridge loan facility was initially for the period of four months to
August 2008 and was subsequently extended to August 31, 2009. At the outset, the
facility incurred interest at the JIBAR plus 3.0%. From March 1, 2009 to August
31, 2009, PPM provided cash collateral to Standard Bank of US$49.870 million
(ZAR387.800 million) as security against the loan. This resulted in a reduction
in the interest rate to JIBAR plus 0.5%, The Company earned interest at JIBAR
plus 0.1% on cash collateral, bringing the net finance cost on the loan to 0.4%.
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$846,238 has been treated as a cost of the loan transaction
and has been amortized to net income using the effective interest method over
the facility term.
On March 22, 2010, a subsidiary of Platmin entered into a ZAR191 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 March 30, 2009, the first tranche of ZAR95.5 million 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.
12. Loss before taxation
+------------------------------------------------------+----------+----------+
| | For the three |
| | months ended |
+------------------------------------------------------+---------------------+
| | Mar 31, | Feb 28, |
| | 2010 | 2009 |
| | $ 000 | $ 000 |
+------------------------------------------------------+----------+----------+
| Included in the general expenses are the following: | | |
+------------------------------------------------------+----------+----------+
| Loss on disposal of fixed assets | - | 5 |
+------------------------------------------------------+----------+----------+
| Share based payments expense | (512) | (2,155) |
+------------------------------------------------------+----------+----------+
| Employee expenses | (2,103) | (2,321) |
+------------------------------------------------------+----------+----------+
| Audit fees | (180) | (45) |
+------------------------------------------------------+----------+----------+
| Consulting and professional fees | (172) | (7,061) |
+------------------------------------------------------+----------+----------+
| Depreciation | (136) | (93) |
+------------------------------------------------------+----------+----------+
| General and administration expenses | (1,290) | (1,046) |
+------------------------------------------------------+----------+----------+
| | (4,393) | (12,716) |
+------------------------------------------------------+----------+----------+
| Included in other income are the following: | | |
+------------------------------------------------------+----------+----------+
| Other income | - | 1 |
+------------------------------------------------------+----------+----------+
| Foreign exchange gain / (loss) | (9) | 1,507 |
+------------------------------------------------------+----------+----------+
| | (9) | 1,508 |
+------------------------------------------------------+----------+----------+
13. (Loss) / earnings per share attributable to owners of the parent
+---------------------------------------------------+---------+----------+
| | For the three |
| | months ended |
+---------------------------------------------------+--------------------+
| | Mar 31, | Feb 28, |
| | 2010 | 2009 |
| | $ 000 | $ 000 |
+---------------------------------------------------+---------+----------+
| Basic (loss) / earnings per share | (0.01) | (0.07) |
| 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 calculating basic | (3,597) | (11,494) |
| earnings per share attributable to owners of the | | |
| parent (USD'000) | | |
+---------------------------------------------------+---------+----------+
| | | |
+---------------------------------------------------+---------+----------+
| Weighted average number of shares used in the | 445,018 | 159,845 |
| 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 March 31, 2010 the
diluted (loss) / earnings per share is equal to the basic (loss) / earnings per
share.
14. Events after the reporting period
On May 5, 2010, following a marketing period, the Company agreed to issue
205,761,317 new common shares at a price of US$1.215 per common share for a
total consideration of US$250 million. An aggregate of 95,358,025 common shares
are being underwritten by RBC Capital Markets and Investec Bank Limited for
gross proceeds of US$115,860 million with the balance of US$134.140 million to
be acquired directly from Platmin by Ridgewood Investments (Mauritius) Pte Ltd,
an indirect subsidiary of Temasek Holdings (Private) Limited, Algemene Pensioen
Groep N.V., and Platmin's largest shareholder, Pallinghurst Investor Consortium
(Lux) S.a.r.l. The issuance was successfully completed on May 13, 2010. As part
of the funds-raising process US$135 million of convertible debentures have been
placed. The total funding from the prospectus offering and private placement is
US$385 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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