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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Platmin | LSE:PPN | London | Ordinary Share | CA72765Y1097 | COM SHS NPV (CDI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 17.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMPPN
RNS Number : 3787M
Platmin Limited
15 August 2011
Platmin Limited
(In Commercial production)
Condensed Consolidated Interim Financial Statements
for the three and six month periods ended June 30, 2011 and June 30, 2010
(Unaudited, expressed in United States dollars, unless otherwise stated)
Condensed consolidated interim statement of financial position
as at June 30, 2011
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
Jun 30, Dec 31, 2011 2010 Notes $ 000 $ 000 ASSETS Non-current assets Mining assets 39,917 49,886 Intangible assets 5 38,844 14,019 Property, plant and equipment 6 573,251 578,550 Loans receivable 65 63 Restricted cash investments and guarantees 8 172,408 84,471 --------------------------------------------- --------- Total non-current assets 824,485 726,989 --------------------------------------------- --------- --------- --------- Current assets Inventories 7 9,007 11,285 Accounts and other receivables 52,883 46,877 Restricted cash 8 - 135,131 Cash and cash equivalents 9 160,060 188,596 --------------------------------------------- --------- --------- --------- Total current assets 221,950 381,889 --------------------------------------------- --------- --------- --------- TOTAL ASSETS 1,046,435 1,108,878 ============================================= ========= ========= ========= EQUITY AND LIABILITIES Equity attributable to owners of the parent Share capital 10 891,434 756,579 Accumulated deficit (134,650) (90,419) Other components of equity 188,675 198,352 --------------------------------------------- --------- --------- --------- 945,459 864,512 Non-controlling interests (43,902) (30,116) --------------------------------------------- --------- --------- --------- Total equity 901,557 834,396 --------------------------------------------- --------- --------- --------- Non-current liabilities Long-term borrowings 11 17,256 4,710 Finance lease liability 12 8,934 9,410 Decommissioning and rehabilitation provision 13 82,372 70,705 --------------------------------------------- --------- --------- --------- Total non-current liabilities 108,562 84,825 --------------------------------------------- --------- --------- --------- Current liabilities Trade payables and accrued liabilities 24,736 20,747 Revolving commodity facility 14 11,448 3,468 Current portion of finance lease liability 12 132 291 Current portion of long-term borrowings 15 - 31,923 Convertible debenture 16 - 133,228 Total current liabilities 36,316 189,657 --------------------------------------------- --------- --------- --------- Total liabilities 144,878 274,482 --------------------------------------------- --------- --------- --------- TOTAL EQUITY AND LIABILITIES 1,046,435 1,108,878 ============================================= ========= ========= ========= NATURE OF OPERATIONS 1
The accompanying notes are an integral part of the condensed consolidated interim financial statements
Condensed consolidated interim statement of income
for the three and six months ended June 30, 2011
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
For the three months For the six months ended ended ---------------------- ----------------------- Jun 30, Jun 30, Jun 30, Jun 30, 2011 2010 2011 2010 Notes $ 000 $ 000 $ 000 $ 000 Revenue 34,489 - 60,527 - Cost of operations 17 (53,763) - (104,057) - Operating loss (19,274) - (43,530) - Administrative and general expenses 18 (5,178) (4,922) (8,505) (9,315) Other income/(expenses) 18 555 (16,407) (6,197) (16,416) Finance income 1,684 - 3,474 - Finance costs (970) (2,697) (3,259) (3,476) --------------------- ------ ---------- ---------- ---------- ----------- Loss before taxation (23,183) (24,026) (58,017) (29,207) LOSS FOR THE PERIOD (23,183) (24,026) (58,017) (29,207) ===================== ====== ========== ========== ========== =========== Loss attributable to: Owners of the parent (16,429) (20,675) (44,231) (24,272) Non-controlling interest (6,754) (3,351) (13,786) (4,935) --------------------- ------ ---------- ---------- ---------- ----------- (23,183) (24,026) (58,017) (29,207) ===================== ====== ========== ========== ========== =========== Loss per share (in currency units) attributable to owners of the parent: Basic and diluted 19 (0.02) (0.04) (0.05) (0.05) --------------------- ------ ---------- ---------- ---------- -----------
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 six months ended June 30, 2011
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
Jun 30, Jun 30, Jun 30, Jun 30, 2011 2010 2011 2010 $ 000 $ 000 $ 000 $ 000 ---------------------------------- --------- --------- --------- --------- Loss for the period (23,183) (24,026) (58,017) (29,207) Other comprehensive income (net of tax) 1,419 22,811 24,040 20,219 ---------------------------------- --------- --------- --------- --------- Exchange differences on translation from functional to presentation currency 1,419 22,811 24,040 20,219 Income tax relating to components of other comprehensive income - - - - ---------------------------------- --------- --------- --------- --------- TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (21,764) (1,215) (33,977) (8,988) ================================== ========= ========= ========= ========= Total comprehensive profit/( loss) attributable to: Owners of the parent (15,010) 2,136 (20,191) (4,053) Non-controlling interest (6,754) (3,351) (13,786) (4,935) ---------------------------------- --------- --------- --------- --------- (21,764) (1,215) (33,977) (8,988) ================================== ========= ========= ========= =========
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 six months ended June 30, 2011
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
Equity attributable to the shareholders Share Foreign Based Currency Share Payment Translation Non-controlling Total Capital Deficit Reserve Warrants Reserve Subtotal interest Equity $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Balance at December 31, 2009 425,535 (35,002) 10,167 846 71,574 473,120 (20,091) 453,029 Shares issued 241,523 - - - - 241,523 - 241,523 Loss for the period - (24,272) - - - (24,272) (4,935) (29,207) Stock based compensation - - 27,677 - - 27,677 - 27,677 Other comprehensive income: Currency translation adjustment - - - - (20,219) (20,219) - (20,219) ------------------ -------- ---------- -------- --------- ------------ --------- ---------------- --------- Balance at June 30, 2010 667,058 (59,274) 37,844 846 51,355 697,829 (25,026) 672,803 Shares issued 89,521 - - - - 89,521 - 89,521 Loss for the period - (31,145) - - - (31,145) (5,090) (36,235) Stock based compensation - - 4,384 - - 4,384 - 4,384 Other comprehensive income: Currency translation adjustment - - - - 103,923 103,923 - 103,923 Balance at December 31, 2010 756,579 (90,419) 42,228 846 155,278 864,512 (30,116) 834,396 Shares issued 134,855 - - - - 134,855 - 134,855 Loss for the period - (44,231) - - - (44,231) (13,786) (58,017) Stock based compensation - - 14,363 - - 14,363 - 14,363 Other comprehensive income: Currency translation adjustment - - - - (24,040) (24,040) - (24,040) Balance at June 30, 2011 891,434 (134,650) 56,591 846 131,238 945,459 (43,902) 901,557 ================== ======== ========== ======== ========= ============ ========= ================ ========= Note 10
The accompanying notes are an integral part of the condensed consolidated interim financial statements
Condensed consolidated interim statement of cashflows
for the three and six months ended June 30, 2011
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
For the three For the six months months ended ended -------------------- --------------------- Jun 30, Jun 30, Jun 30, Jun 30, 2011 2010 2011 2010 Notes $ 000 $ 000 $ 000 $ 000 ------------------------- ------ --------- --------- ---------- --------- Cash flows from operating activities ------------------------- ------ --------- --------- ---------- --------- Cash receipts from customers 22,790 19,879 53,089 35,609 Cash paid to suppliers and employees (45,830) (46,075) (94,429) (88,285) ------------------------- ------ --------- --------- ---------- --------- Cash utilized in operations (23,040) (26,196) (41,340) (52,676) Interest received 411 432 1,109 749 Interest paid 47 (307) (288) (679) ------------------------- ------ --------- --------- ---------- --------- Net cash utilized in operating activities (22,582) (26,071) (40,519) (52,606) ------------------------- ------ --------- --------- ---------- --------- Cash flows from investing activities ------------------------- ------ --------- --------- ---------- --------- Purchase of property, plant and equipment (4,010) 517 (4,322) (697) Proceeds from fair value adjustments 4,874 - 4,810 - Purchase of Sedibelo West - - (79,666) - Additions to intangible assets (364) (1,065) (12,659) (1,165) Increase in rehabilitation investment (166) (17,128) (5,971) (17,658) Increase in deferred exploration expenses (619) (495) (819) (909) ------------------------- ------ --------- --------- ---------- --------- Net cash utilized in investing activities (285) (18,171) (98,627) (20,429) ------------------------- ------ --------- --------- ---------- --------- Cash flows from financing activities ------------------------- ------ --------- --------- ---------- --------- Increase in loans payable - 12,645 - 25,478 Decrease in finance lease liability (475) (451) (938) (911) Increase/(Decrease) in revolving commodity facility 6,053 (8,592) 6,558 (3,654) Realised foreign exchange (losses) / gains 237 (1) (1,387) (2) Repayment of promissory note - - (29,106) - Proceeds from issue of shares (33) 238,809 130,797 239,352 ------------------------- ------ --------- --------- ---------- --------- Net cash generated from financing activities 5,782 242,410 105,924 260,263 ------------------------- ------ --------- --------- ---------- --------- Net (decrease) / increase in cash and cash equivalents (17,085) 198,168 (33,222) 187,228 Net foreign exchange differences (103) (3,129) 4,686 (3,672) Cash and cash equivalents at the beginning of the period 9 177,248 17,892 188,596 29,375 ------------------------- ------ --------- --------- ---------- --------- Cash and cash equivalents at the end of the period 9 160,060 212,931 160,060 212,931 ========================= ====== ========= ========= ========== =========
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 six months ended June 30, 2011
(Unaudited, expressed in U.S. dollars, unless otherwise stated)
1. Nature of operations
Platmin Limited ("the Company") and its subsidiaries ("the Group") is a Natural Resources Group engaged in the acquisition, exploration, development and operation 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") under 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.
For the three and six months ended June 30, 2011 the Group incurred a loss of US$23.183 million and US$58.017 million. At June 30, 2011 had an accumulated deficit of US$134.650 million. The Group is dependent on the successful operation of the Pilanesberg Platinum Mine ("PPM") to generate cash flows in order to fund its operations and pay debt as it becomes due.
The Group increased its equity with US$135.000 million by way of conversion of the convertible debenture on March 31, 2011 and had US$160.060 million in cash and cash equivalents at June 30, 2011 to fund mining activities and meet its contractual obligations.
2. Statement of compliance
The unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2011 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 year ended December 31, 2010.
The unaudited condensed consolidated interim financial statements, which have been prepared on the going concern basis, were approved by the Board of Directors on 10 August 2011.
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 year ended December 31, 2010.
Upon declaring commercial production on January 1, 2011, the useful life of assets has been calculated in accordance with the table as detailed below.
Property plant and equipment
Depreciation and amortization are calculated on a units-of-production method for the mining assets and straight-line method for all other assets to write off the cost of the assets to their residual values over their estimated useful lives. The depreciation and amortization rates applicable to each category of property, plant and equipment are as follows:
Useful life Asset category (years) Vehicles 5 Computer equipment 3 Office equipment 6 Furniture and fittings 6 Other equipment 5 Buildings 20 Leasehold improvements 5 Plant and equipment Units of production (ore tonnes processed) Deferred stripping costs, decommissioning Units of production (ore assets tonnes mined) Producing mines (exploration and evaluation Units of production (ore assets) tonnes mined)
4. Segmented information
Management has determined the operating segments based on the reports reviewed by the Executive Committee ("the 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 declared commercial production on January 1, 2011. 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 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 six month periods ended is as follows:
Development Mining and exploration Administration Consolidated Reportable items in the Statement of Comprehensive Income External revenues 60,527 33,696 - - - - 60,527 33,696 Intersegment revenue - - - - - - - - EBITDA (33,919) (43,556) - - (20,076) (28,651) (53,995) (72,207) ============== ========= ========= ======= ========= ========= ========= ========== ========== Reportable items in the Statement of Financial Position Total assets 814,238 539,965 53,337 36,393 178,860 362,699 1,046,435 939,057 Additions to non-current assets 17,730 697 24,867 155,604 4 909 42,601 157,210 Total liabilities 125,556 127,796 17,423 3,968 1,899 134,490 144,878 266,254 ============== ========= ========= ======= ========= ========= ========= ========== ==========
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.
4. Segmented information (continued)
A reconciliation of EBITDA to total comprehensive loss for the period is provided as follows:
Consolidated -------------------- Jun 30, Jun 30, 2011 2010 $'000 $'000 -------------------------------------------------------- --------- --------- Total EBITDA for reportable segments (53,995) (72,207) Revenues offset against the cost of the plant construction - (33,697) Mining costs offset against the cost of the plant construction - 73,156 -------------------------------------------------------- --------- --------- Total EBITDA per Consolidated statement of income and comprehensive income (53,995) (32,748) Foreign exchange gains 8,436 7,295 Depreciation (12,673) (278) Finance costs (net) 215 (3,476) -------------------------------------------------------- --------- --------- Loss before taxation (58,017) (29,207) Income tax expense - - Exchange differences on translating from functional currency to presentation currency 24,040 20,219 -------------------------------------------------------- --------- --------- Total comprehensive loss for the period (33,977) (8,988) ======================================================== ========= =========
5. Intangible assets
As at Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 --------------------------------- --------- ---------------- Water pipeline 13,067 13,070 ERP software 791 886 Computer software 46 63 SPV - Power and water rights 24,940 - --------------------------------- --------- ---------------- Balance at the end of the period 38,844 14,019 ================================= ========= ================
Reconciliation of intangible assets:
Water ERP Computer Power and pipeline Software software $ water rights TOTAL $ 000 $ 000 000 $ 000 $ 000 ------------- ------------- ------------ ----------- ------------- ------------- Balance as at December 31, 2009 8,479 772 97 - 9,348 Additions during the period 1,228 169 43 - 1,440 Reclassified from receivables 2,064 - - - 2,064 Amortization for the period - (132) (80) - (212) Foreign exchange variance 1,299 77 3 - 1,379 ------------- ------------- ------------ ----------- ------------- ------------- Balance as at December 31, 2010 13,070 886 63 - 14,019 Additions during the period 366 - 4 24,050 24,420 Amortization for the period - (71) (19) - (90) Foreign exchange variance (369) (24) (2) 890 495 Balance as at June 30, 2011 13,067 791 46 24,940 38,844 ============= ============= ============ =========== ============= =============
PPM entered into an agreement with The Board of Magalies Water, a State-owned water board operating under the Water Services Act, Number 108 of 1997 as amended, ("Magalies Water") and other parties to build a water pipeline and related infrastructure from the Vaalkop Water Treatment Works to PPM. Upon completion, the ownership of the water pipeline and related infrastructure will remain with Magalies Water; however, PPM will have a right to use 9Ml a day through the pipeline for the entire life of mine.
Platmin concluded, through a special purpose vehicle ("SPV") in which Platmin indirectly holds a 50% interest, to purchase certain long lead items. These long lead items, consisting of the power and water rights and obligations previously acquired by Barrick Platinum SA (Pty) Ltd ("Barrick") in respect of the Sedibelo mining area, form part of the Platmin acquisition of a portion of the Sedibelo PGM Project concession ("Sedibelo West"). The acquisition consideration for the transaction was US$24.050 million.
6. Property, plant and equipment
Plant construction Deferred Decom- and mine Plant and stripping missioning Producing Land and Other Leased development equipment cost $ asset $ mines buildings $ assets TOTAL $ 000 $ 000 000 000 $ 000 $ 000 000 $ 000 $ 000 ------------- ------------- ---------- ---------- ----------- ---------- ---------- ------ ------- --------- COST Balance as at December 31, 2009 407,789 - - - - 1,025 1,899 12,991 423,704 Additions 107,008 - - - - 55 561 - 107,624 Transfers (23) - - - - - 23 - - Foreign exchange movement 48,107 - - - - 120 224 1,531 49,982 ------------- ------------- ---------- ---------- ----------- ---------- ---------- ------ ------- --------- Balance as at December 31, 2010 562,881 - - - - 1,200 2,707 14,522 581,310 Transfers (562,881) 235,501 258,750 68,630 - - - - - Transfers from Mining Assets - - - - 9,639 - - - 9,639 Revenue adjustments - (2,796) - - - - - - (2,796) Additions - 4,102 - 12,980 - 95 187 - 17,364 Foreign exchange movement - (6,684) (7,298) (1,935) (256) (32) (75) (409) (16,689) ------------- ------------- ---------- ---------- ----------- ---------- ---------- ------ ------- --------- Balance as at June 30, 2011 - 230,123 251,452 79,675 9,383 1,263 2,819 14,113 588,828 ============= ============= ========== ========== =========== ========== ========== ====== ======= ========= ACCUMULATED DEPRECIATION ACCUMULATED DEPRECIATION Balance as at December 31, 2009 - - - - - - 759 474 1,233 Depreciation for the period - - - - - - 442 821 1,263 Foreign exchange movement - - - - - - 122 142 264 ---------------- --- ------ ------ ---- ---- ------ ------ ------- Balance as at December 31, 2010 - - - - - - 1,323 1,437 2,760 Depreciation for the period - 6,252 5,198 377 194 2 252 435 12,710 Foreign exchange movement - 90 75 5 3 3 (34) (35) 107 ---------------- --- ------ ------ ---- ---- ------ ------ ------- Balance as at June 30, 2011 - 6,342 5,273 382 197 5 1,541 1,837 15,577 ================ === ====== ====== ==== ==== ====== ====== =======
6. Property, plant and equipment (continued)
Plant construction Deferred Decom- and mine Plant and stripping missioning Producing Land and Other Leased development equipment cost $ asset $ mines buildings $ assets TOTAL $ 000 $ 000 000 000 $ 000 $ 000 000 $ 000 $ 000 CARRYING AMOUNTS At December 31, 2010 562,881 - - - - 1,200 1,384 13,085 578,550 ---------- ------------- ---------- ---------- ----------- ---------- ---------- ------ ------- -------- At June 30, 2011 - 223,781 246,179 79,293 9,186 1,258 1,278 12,276 573,251 ========== ============= ========== ========== =========== ========== ========== ====== ======= ========
7. Inventories
As at Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 At cost Ore stockpiled 2,823 4,424 Work in progress 986 2,258 Consumables 5,198 4,603 Balance at the end of the period 9,007 11,285 ================================= ============ ================
8. Restricted cash
8.1 Restricted cash investments and guarantees - non-current asset
Cash investments were made relating to certain guarantees required by the Republic of South Africa's Department of Mineral Resources ("DMR"), formerly known as the Department of Minerals and Energy, and ESKOM Holdings Limited ("ESKOM"), the South African state utility supplier of electricity, of which the details are as follows:
-- Rehabilitation guarantees
The DMR requires rehabilitation guarantees for all prospecting and mining rights. These rehabilitation guarantees primarily relate to the mining rights for the Pilanesberg and Mphahlele Projects. These guarantees have been provided to the DMR on two separate basis:
- by the issuance of the guarantee by an insurance company, with a portion of the total guarantee being paid over into a separate bank account of the Group and ceded in favour of the Insurance company and the remaining portion paid in premiums to the insurance company over the expected life of the mine; and
- on a cash backed basis.
-- ESKOM guarantees
-- On June 17, 2008 a guarantee was issued by Lombard Insurance Company Limited ("Lombard Insurance"), to ESKOM to order critical long lead time material for the construction of the electrical substation at PPM. Lombard Insurance required cash collateral on a portion of the guarantee. The cash collateral is held in a separate bank account controlled by the Group and ceded in favour of Lombard Insurance. The balance of the amount guaranteed by Lombard Insurance is payable on a premium basis over 5 years and re-assessed on an annual basis.
-- Escrow
On March 23, 2011, the Company entered into a transaction to acquire an incremental 5.99 million 4E PGM inferred mineral resource ounces contained within Sedibelo West from the Bakgatla-Ba-Kgafela Tribe and Itereleng Bakgatla Mineral Resources (Pty) Limited, for an aggregate consideration of US$75.000 million in cash. The total purchase price of US$82.000 million (including VAT of US$7.000 million on a portion of the purchase price) was classified as restricted cash in anticipation of the transferring thereof to a nominated Escrow account.
8. Restricted cash (continued)
8.1 Restricted cash investments and guarantees - non-current asset (continued)
As at Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 ---------------------------------------- -------------- ---------------- Pilanesberg rehabilitation guarantee 81,577 76,430 ESKOM capital and supply guarantees 7,628 6,856 Mphahlele rehabilitation guarantee 1,198 1,077 Other guarantees 105 108 Escrow account for Sedibelo transaction 81,900 - Balance at the end of the period 172,408 84,471 ======================================== ============== ================
8.2 Restricted cash - current asset
As at Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 Cash collateral for convertible debentures - 135,131 Balance at the end of the period - 135,131 =========================================== ========== ================
On May 13, 2010, the Company issued US$135.000 million of convertible debentures. The cash collateral represents the funds received and the interest accrued thereon to date. The debentures were converted on March 31, 2011.
9. Cash and cash equivalents
As at Jun As at Dec 31, 31, 2011 2010 $ 000 $ 000 ---------------------------------- --------- ---------------- Cash at bank and on hand 160,060 188,596 Total cash and cash equivalents 160,060 188,596 ================================== ========= ================
Cash at bank earns interest at a floating rate based on daily bank deposit rates. Cash is deposited at 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.
10. 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, Number Amount 2010 of shares $000 ------------------------------------------------ ------------ -------- Balance, January 1, 2010 445,018,352 425,535 Common shares issued 304,662,415 331,044 Balance, December 31, 2010 749,680,767 756,579 ================================================ ============ ======== Movement during the period ended June 30, 2011 Balance, January 1, 2011 749,680,767 756,579 Common shares issued 160,714,286 134,855 ------------------------------------------------ Balance, June 30, 2011 910,395,053 891,434 ================================================ ============ ========
On March 31, 2011, upon conversion of the convertible debenture issued on May 13, 2010, the Company issued 160,714,286 new common shares at a price of US$0.84 per common share for a total consideration of US$135.000 million, raising US$134.855 million net of legal fees.
11. Long term borrowings
As at Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 ------------------------------------ ---------------- ------------ Corridor Mining Resources (Pty) Ltd 4,756 4,681 Perilya Exploration (Pty) Ltd 30 29 SPV - Power and water rights 12,470 - ------------------------------------ ---------------- ------------ 17,256 4,710 ==================================== ================ ============
The acquisition consideration for the long lead items purchased from Barrick by the SPV (as disclosed in note 5) was funded through shareholder loans advanced to the SPV. Platmin's portion of these loans amounted to US$12,025 million. The remaining shareholder's portion is US$12,470 million at the closing rate of ZAR6.7826 to US$1.00
12. Finance lease liability
ESKOM designed and built an electrical installation adjacent to PPM to produce the required electricity and 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 than 1 year years 5 years Total $ 000 $ 000 $ 000 $ 000 ------------------------ -------- -------- ---------- --------- Minimum lease payments 713 7,132 11,747 19,592 Finance cost (581) (5,212) (4,733) (10,526) ------------------------ Present value 132 1,920 7,014 9,066 ======================== ======== ======== ========== =========
13. Decommissioning and rehabilitation provision
As at As at Jun 30, Dec 31, 2011 2010 $ 000 $ 000 ---------------------------------------- --------- --------- Balance at the beginning of the period 70,705 52,744 Increase in liability for the period 12,990 10,435 Unwinding of interest (accretion) 671 1,307 ---------------------------------------- --------- --------- 84,366 64,486 Effect of exchange rate changes (1,994) 6,219 ---------------------------------------- --------- --------- Balance at the end of the period 82,372 70,705 ======================================== ========= =========
The estimate represents the discounted 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 June 30, 2011 is US$100.052 million (December 31, 2010: US$86.667 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 7.95% and an inflation rate of 6% over a period of 12 years.
14. 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 Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 ---------------------------------------- ---------- ---------- Balance at the beginning of the period 3,468 5,854 Increase in liability for the period 22,800 - Repayment of amounts owing (15,146) (2,684) Interest accrued 198 (48) ---------------------------------------- ---------- ---------- 11,320 3,122 Effect of exchange rate changes 128 346 ---------------------------------------- ---------- ---------- Balance at the end of the period 11,448 3,468 ======================================== ========== ==========
15. Current portion of long-term borrowings
As at Jun As at Dec 30, 31, 2011 2010 $ 000 $ 000 ---------------------------------------- ---------- ------------- Balance at the beginning of the period 31,923 - - Pallinghurst short-term facility - 26,603 Interest on borrowings 365 1,620 Settlement of borrowings (28,822) - ---------------------------------------- ---------- ------------- 3,466 28,223 Effect of exchange rate changes (3,466) 3,700 ---------------------------------------- ---------- ------------- Balance at the end of the period - 31,923 ======================================== ========== =============
On March 22, 2010, a subsidiary of Platmin entered into a ZAR191.000 million short term lending facility (the equivalent of US$26.000 million at an exchange rate of ZAR7.38 to the US dollar) with Pallinghurst Resources Limited ("Pallinghurst"). As at December 31, 2010, a total of ZAR191.000 million had been drawn against this facility. This facility was initially for a period of 3 months, but was extended until February 28, 2011 and was repaid in full on February 28, 2011.
16. Convertible debenture
Option component accounted Liability for in equity component $ 000 $ 000 Convertible debenture issued 26,664 132,044 Fair value adjustment at extension date 1,238 (1,060) Interest for the period - 3,241 Transaction costs - (1,128) Effect of exchange rate changes - 131 ------------------------------------------ ---------------- ---------------- Balance as at Dec 31, 2010 27,902 133,228 Fair value adjustment at extension date 7,908 - Fair value adjustment at modification date 6,556 - Interest for the period - 976 ------------------------------------------ ---------------- ---------------- 42,366 134,204 Effect of exchange rate changes - 796 Conversion of debenture - (135,000) ------------------------------------------ ---------------- ---------------- Balance as at Jun 30, 2011 42,366 - ========================================== ================ ================
On May 13, 2010, the Company issued US$135.000 million of zero percent convertible debentures, initially subject to conversion by December 31, 2010 at a price of US$1.215 that would have resulted in 111,111,111 shares being issued. The maturity date of the convertible debentures was extended from December 31, 2010 to February 28, 2011 and subsequently to March 31, 2011, and the conversion price reduced from US$1.215 to US$0.84.
On March 31, 2011, all the conditions precedent for the conversion of the convertible debentures had been fulfilled and conversion took place at US$0.84 per share. A total of 160,714,286 new shares were issued.
The transaction was accounted for under IFRS 2, Share based payments as the fair value of the convertible debenture was greater than the proceeds received. On initial recognition, the transaction gave rise to the recognition of proceeds of US$135 million, a liability component recognised for the present value of the contractual cash payments of US$132 million and an equity component of US$26.6 million. The difference between the proceeds and liability plus the equity was recognised in the income statement. The modifications to the instrument resulted in the equity component moving to US$42 million.Subsequent to the initial recognition, the equity portion is not remeasured and remains in equity.
17. Cost of operations
Included in cost of operations:
For the three months For the six months ended Ended ---------------------- -------------------- Jun 30, Jun 30, Jun 30, Jun 30, 2011 2010 2011 2010 $ 000 $ 000 $ 000 $ 000 -------------------------------- ---------- ---------- --------- --------- On mine operations Materials and mining costs 28,498 - 58,274 - Concentrator plant operations Materials and other costs 8,506 - 17,936 - Utilities 3,535 - 5,864 - Beneficiation Smelting and refining costs 2,583 - 4,463 - Transport 102 - 177 - Salaries 706 - 1,925 - -------------------------------- ---------- ---------- --------- --------- Sub-total 43,930 - 88,639 - Depreciation of operating assets (note 6) 6,272 - 12,311 - Change in inventories 3,561 - 3,107 - ================================ ========== ========== ========= ========= 53,763 - 104,057 - ================================ ========== ========== ========= =========
18. Administrative and general expenses
For the three months For the six months ended Ended ---------------------- -------------------- Jun 30, Jun 30, Jun 30, Jun 30, 2011 2010 2011 2010 $ 000 $ 000 $ 000 $ 000 -------------------------------- ---------- ---------- --------- --------- Included in the administrative and general expenses are the following: Audit fees (55) (242) (201) (422) Consulting and professional fees (1,279) (23) (1,524) (195) Employee expenses (2,090) (2,260) (3,256) (4,363) General and administration expenses (519) (1,634) (1,054) (2,924) Royalty taxes (148) (122) (301) (122) Mining operations (966) - (1,916) - Sub-total (5,057) (4,281) (8,252) (8,026) Share based payment expense 21 (499) 109 (1,011) Amortization and depreciation (142) (142) (362) (278) ================================ ========== ========== ========= ========= (5,178) (4,922) (8,505) (9,315) ================================ ========== ========== ========= ========= Included in other expenses are the following: Foreign exchange gain / (loss) 624 7,304 8,436 7,295 Loss on impairment of exploration project - (255) - (255) Other income / (expense) 121 (1) 175 (1) Share-based payment expense (fair value adjustment) (190) (23,455) (14,808) (23,455) -------------------------------- ---------- ---------- --------- --------- 555 (16,407) (6,197) (16,416) ================================ ========== ========== ========= =========
19. Loss per share attributable to owners of the parent
For the three For the six months months ended ended ---------------------------- ---------------------------- Jun 30, Jun 30, Jun 30, Jun 30, 2011 2010 2011 2010 ------------------ ------------- ------------- ------------- ------------- Basic loss per share (USD) Basic loss per share is calculated by dividing the net loss for the period/ year attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the period/ year (0.02) (0.04) (0.05) (0.05) Reconciliations: Net loss used in calculating basic earnings per share attributable to owners of the parent (USD'000) (16,429) (20,675) (44,231) (24,272) ================== ============= ============= ============= ============= Weighted average number of shares used in the calculation of basic loss per share ('000) 910,395 490,743 856,824 513,605 ================== ============= ============= ============= =============
There are no reconciling items between loss and headline loss and therefore loss per share and headline loss per share are the same.
Due to the Group reporting a loss for the period ending June 30, 2011 the diluted loss per share is equal to the basic loss per share.
For further information:
Charmane Russell Russell & Associates +27 11 880 3924
+27 82 372 5816
Charles Batten
Investec Bank plc (Nominated Advisor)
+44 20 7 597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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