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Share Name | Share Symbol | Market | Type |
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Atlatsa Resources Corporation | AMEX:ANO | AMEX | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.00 | - |
VANCOUVER, March 30, 2012 /PRNewswire/ - Anooraq Resources Corporation ("Anooraq" or the "Company") announces its operating and financial results for the three and twelve months ended December 31, 2011. This release should be read together with the Company's Financial Statements and Management Discussion & Analysis available at www.anooraqresources.com and filed on www.sedar.com. Currency values are presented in South African Rand (ZAR), Canadian Dollars ($) and United States Dollars (US$).
The 2011 financial year was operationally challenging at Bokoni Platinum Mines ("Bokoni"), however, the year ended on a positive note with the Company able to:
Operating and financial performance
Set out below are summaries of the key operating and financial results for Bokoni and the Company for the periods under review.
Operating results |
Q4 2011 |
Q4 2010 |
% Change |
2011 | 2010 |
% Change |
|
Tonnes milled | T | 257,621 | 278,242 | (7) | 1,047,401 | 1,044,084 | - |
Recovered grade | g/t milled,4E | 4.08 | 4.17 | (2) | 3.86 | 4.12 | (6) |
4E oz produced | Oz | 29,316 | 30,776 | (5) | 113,625 | 116,164 | (2) |
UG2 mined to total output | % | 36.4 | 27.7 | 24 | 32.6 | 32.2 | 1 |
Primary development | M | 2,875 | 2,308 | 25 | 10,549 | 10,292 | 3 |
Capital expenditure | $m | 4.8 | 10.8 | (56) | 28.7 | 28.2 | 2 |
Operating cost/tonne milled | ZAR/t | 1,285 | 1,058 | (21) | 1,194 | 989 | (21) |
Operating cost/4E oz | ZAR/4E oz | 11,292 | 9,566 | (18) | 11,009 | 8,888 | (24) |
Lost-time injury frequency rate ("LTIFR") | Per 200,000 hours worked | 2.41 | 2.32 | (4) | 1.87 | 2.11 | 11 |
Total permanent labor (mine operations) |
Number | 3,498 | 3,426 | 2 | 3,498 | 3,426 | 2 |
Total contractors (mine operations) |
Number | 1,826 | 1,690 | 8 | 1,826 | 1,690 | 8 |
Consolidated statement of comprehensive income summary | ||||
Expressed in Canadian Dollars (000's) | Q4 2011 | Q4 2010 | FY 2011 | FY 2010 |
Revenue | 32,514 | 43,244 | 144,407 | 148,287 |
Cash operating costs | 41,722 | 42,285 | 167,997 | 141,880 |
Cash operating (loss)/profit* | (9,208) | 959 | (23,590) | 6,407 |
Operating margin | (28%) | 2.2% | (16%) | 4.3% |
EBITDA | (12,834) | (6,263) | (46,008) | (12,963) |
Loss after tax | (35,519) | (32,401) | (147,865) | (93,659) |
Non-controlling interest | (15,997) | (14,004) | (65,936) | (41,938) |
Loss attributable to Anooraq shareholders | (19,522) | (18,397) | (81,929) | (51,721) |
Basic and diluted loss per share - cents | 4 | 4 | 19 | 12 |
*Cash operating profit/(loss) before depreciation and amortization |
Safety
It is with deep regret that one fatal accident occurred at Bokoni during 2011, in which Miss Hilda Mokgobedi Raganya was fatally injured in a trackless mobile machinery accident on 18 November 2011. Management continues to focus on taking appropriate measures to ensure a safer working environment to prevent the reoccurrence of such an accident. As a result of the fatality and other Section 54 stoppages imposed by the Department of Mineral Resources, a total of 14 operating shifts were lost during Q4 2011. A total of 42 operating shifts were lost at Bokoni during FY 2011 as a result of Section 54 safety stoppages. Encouragingly, LTIFR improved from 2.11 to 1.87 in the financial year.
Production and development
Production for Q4 2011 was adversely impacted by the high number of Section 54 safety stoppages, as well as 10 milling shifts lost at the concentrator plant due to a planned mill shell replacement at the Merensky concentrator. Recovered grade for Q4 2011 decreased by 2%, whilst concentrator recoveries for Merensky and UG2 ore deteriorated by 1%, to 87.5%, and improved by 3%, to 83%, respectively.
Tonnes milled remained flat through the financial year and although the recovered grade decreased by 6% average concentrator recoveries remained relatively constant at 84.5%. Total PGM production decreased 2% to 113,625 ounces, largely attributable to a decrease in UG2 recoveries.
Total primary development increased by 25% in Q4 2011 when compared to Q4 2010, and by 3% year-on-year.
Revenue
Revenue from the sale of concentrate for Q4 2011 was $32.5 million (ZAR257.5 million) compared to revenue of $43.2 million (ZAR296.2 million) for Q4 2010. This change in revenue was influenced by lower volumes, the weakening of the average ZAR to $ exchange rate for Q4 2011 by almost 15% to ZAR7.92=$1 (Q4 2010: ZAR6.82=$1) together with a change in the PGM basket price to US$1,220/oz (ZAR9,891/oz) (Q4 2010: US$1,357/oz (ZAR9,366/oz)).
Revenue for FY 2011 was $144.4 million (ZAR1,055.6 million) (FY 2010: $148.3 million (ZAR1,052.4 million)).The slight weakening of the average ZAR to $ exchange rate combined with an improved basket price kept revenues relatively constant over the period. The average PGM basket price achieved for FY 2011 was US$1,380/oz (ZAR10,028/oz), representing a 10% increase on FY 2010 at US$1,257/oz (ZAR9,207/oz). The average ZAR to $ exchange rate for FY 2011 was ZAR7.33=$1 (FY 2010: ZAR7.10=$1).
Cash operating costs
Cash operating costs for Q4 2011 were $41.7 million (ZAR330.3 million) compared to $42.3 million (ZAR288.5 million) for Q4 2010.
Cash operating costs for FY 2011 were $167.9 million (ZAR1,230.7 million) compared to $141.8 million (ZAR1,006.8 million) in FY 2010, primarily attributable to above inflation increases in labour costs, increased stores charges and annual increases in utility charges.
Finance charges
Total finance charges of $92 million (ZAR672 million) were incurred in FY 2011, of which $50 million (ZAR364 million) were attributable to Anooraq, contributing significantly to the Company's net loss for the period. Finance charges will be reduced substantially on implementation of the restructure plan (see commentary on new consolidated debt facility below).
Earnings
The basic and diluted loss per share for Q4 2011 remained the same as Q4 2010 at 4 cps, whilst widening from 12 cps to 19 cps year-on-year.
Outlook for 2012
Restructure, recapitalization and refinancing of the Company and the Bokoni Group
During 2011 Anooraq and Amplats determined that the current strategic approach at Bokoni, together with both the Bokoni Group and Company's historical financing plan required restructuring, as detailed in the Company's news release dated 2 February, 2012. The net result of the restructure plan for the Company is as follows:
Amplats and Anooraq continue to progress the restructure plan and are in the process of settling definitive transaction agreements between them, whilst advancing the necessary legal and regulatory approvals required for its implementation. The completion of the proposed restructure plan is subject to conditions precedent and is expected to close during July 2012.
New extraction strategy for Bokoni
As part of the restructure plan Amplats and Anooraq have determined that the historical extraction strategy for Bokoni, as agreed between them in 2009, was inappropriate and required a new approach, having regard to the vast size of the Bokoni orebody and multiple potential attacking points over both the Merensky and UG2 reef horizons, stretching 20km of strike length at the new extended Bokoni lease area. The key elements of the new Bokoni extraction strategy are as follows:
New management team for Bokoni
As part of the restructure plan Amplats and Anooraq appointed a new and experienced management team at Bokoni in order to implement its new extraction strategy.
The new management team is led by Mr. Dawid Stander who has 33 years of experience in the mining industry and held the position of General Manager at Bokoni (formerly Lebowa Platinum Mines) from 2001 to 2005; during which period the performance of the operations improved significantly.
Announcement of updated technical review for mining projects
In conjunction with the proposed restructure plan, Anooraq has completed an updated technical review for each of Bokoni, the Ga-Phasha Project and the Boikgantsho Project. Copies of the technical reports described below, prepared in accordance with National Instrument 43-101 Disclosure Standards for Mineral Projects, for each of these projects can be found on SEDAR at www.sedar.com and with the United States Securities Commission ("SEC") at www.sec.gov, filed as of March 30, 2012:
Summaries of the technical information with respect to each of Bokoni, the Ga-Phasha Project and the Boikgantsho Project based on these updated technical reports, including updated mineral resource and reserve estimates, as applicable, can also be found in Anooraq's annual report on 20-F for the year ended December 31, 2011 also available on SEDAR at www.sedar.com and filed with the SEC at www.sec.gov on March 30, 2012.
Non-material accounting adjustments and restatement of interim financial statements
The Company has filed restated unaudited financial results for the first, second and third quarters of 2011 in order to address inadvertent accounting adjustments which led to an understatement of the loss for each of the respective quarters. Management identified certain non-material accounting adjustments during the year-end accounting process that impacted the financial statements previously filed for the first, second and third quarters of 2011. These accounting adjustments relate to depreciation, recognition of share based payments and interest on the A preference shares. The restated financial information as described above has had no impact on Anooraq's statement of cash flows in any of the three quarters. Management believes the restatement of the financial information described above does not materially impact the Company's consolidated financial position or financial performance for the relevant interim periods nor will it have an impact on future periods.
The restated financial statements reflect that there was no change in the basic and diluted loss per share in Q1 2011, however the basic and diluted loss per share for Q2 2011 increased $0.01 from $0.10 to $0.11 per share and the basic and diluted loss per share for Q3 2011 increased by $0.01 from $0.14 to $0.15 per share.
Notwithstanding the non-material nature of these adjustments, management deems it prudent to amend and restate its interim financial statements for Q1 2011, Q2 2011 and Q3 2011 on a corrected basis.
For further details refer to the Company's Restated Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2011, the three and six months ended June 30, 2011 and three and nine months ended 30 September 2011, available at www.anooraqresources.com and filed on www.sedar.com on March 30, 2012.
Note on cautionary and no conference call
Anooraq is currently trading under cautionary and will not be holding a conference call or presentation to accompany these results. Further to finalization and publication of the financial effects of the restructure plan, the Company will resume detailed shareholder communications.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The NYSE Amex has neither approved nor disapproved the contents of this press release.
Cautionary and forward-looking information
This document contains "forward-looking statements" that were based on Anooraq's expectations, estimates and projections as of the dates as of which those statements were made, including statements relating to the Bokoni Group restructure and refinancing and anticipated financial or operational performance. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should" and similar expressions.
Anooraq believes that such forward-looking statements are based on material factors and reasonable assumptions, including the following assumptions: the Bokoni Mine will increase or continue to achieve production levels similar to previous years; the Ga-Phasha, Boikgantsho, Kwanda and Platreef Projects exploration results will continue to be positive; contracted parties provide goods and/or services on the agreed timeframes; equipment necessary for construction and development is available as scheduled and does not incur unforeseen breakdowns; no material labour slowdowns or strikes are incurred; plant and equipment functions as specified; geological or financial parameters do not necessitate future mine plan changes; and no geological or technical problems occur.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These include but are not limited to:
For further information on Anooraq, investors should review the Company's Annual Report O disclosed in the Form 20-F for the year ended December 31, 2011 filed on SEDAR at www.sedar.com and with the United States Securities and Exchange Commission www.sec.gov and other disclosure documents that are available on SEDAR at www.sedar.com.
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1 PGM refers to platinum group metals; namely platinum, palladium, rhodium, iridium, ruthenium and gold.
SOURCE Anooraq Resources Corporation
Copyright 2012 PR Newswire
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