ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016

Transcription

1 Bauba Platinum Limited Incorporated in the Republic of South Africa (Registration Number 1986/004649/06) Share code: BAU ISIN: ZAE ("Bauba or the Company or the Group ) ABRIDGED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2016 ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Abridged 12-months to Audited 12-months to Note Chrome ore revenue Cost of sales (29 191) (15 533) Gross Profit Other Income - 10 Operating and administrative expenses (53 961) (21 110) Impairment of intangible assets - (6 286) Finance income Loss before taxation (3 348) (1 729) Taxation (1 884) (Loss)/Profit for the year (5 232) Other comprehensive income - - Total comprehensive (loss)/profit (5 232) (Loss)/Profit attributable to: Owners of the parent (6 406) 934 Non-controlling interest Total comprehensive (loss)/profit attributable to: Owners of the parent (6 406) 934 Non-controlling interest Basic (loss)/earnings per share (cents) 11 (1.69) 0.34 Diluted (loss)/earnings per share (cents) 11 (1.69) 0.34 Weighted average number of shares ( 000) Diluted weighted average number of shares in issue ( 000)

2 ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Abridged Audited Note Assets Non-Current Assets Property, plant and equipment Intangible assets Deferred tax Current Assets Trade and other receivables Tax receivable Cash and cash equivalents Inventory Total Assets Equity and Liabilities Equity Share capital Reverse asset acquisition reserve ( ) ( ) Retained loss (94 796) (88 390) Non-controlling interest Non-Current Liabilities Provisions for rehabilitation Current Liabilities Other financial liabilities Trade and other payables Provision for rehabilitation Total Equity and Liabilities

3 ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Stated share capital Reverse acquisition adjustment Retained loss Non-controlling interest Total equity Balance at 30 June ( ) (89 324) (4 210) Total comprehensive profit for the year Issue of additional shares Share issue expenses (1 192) (1 192) Balance at ( ) (88 390) Total comprehensive loss for the year - - (6 406) (5 232) Balance at ( ) (94 796)

4 ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2016 Abridged Audited Net cash generated in operating activities Cash flows from investing activities Purchase of property, plant and equipment (25) (1 115) Investments in intangible assets (2 232) - Interest received Net cash utilised in investing activities (1 196) (826) Cash flows from financing activities Share issue expenses - (1 192) Proceeds from other financial liabilities Repayment of other financial liabilities (26 531) - Net cash (utilised)/available from financing activities (26 531) Total cash movement for the year (21 369) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of the year

5 NOTES TO THE ABRIDGED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE BASIS OF PREPARATION These abridged consolidated financial statements have been prepared by CH Gernandt (ACCA, CPA, CGA) in accordance with the framework concepts and the measurements and recognition requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the requirements of the South African Companies Act and the JSE Listings Requirements and as a minimum contain the information required by IAS 34 Interim Financial Reporting. The same accounting policies, presentation and measurement principles have been followed in the preparation of the abridged report for the year ended as were applied in the preparation of the Group s annual financial statements for the year ended and comply with IFRS. The abridged results have been compiled by the directors who take responsibility for this report. 2. FINANCIAL REVIEW In the year under review, Bauba established itself as a chrome producer but due to severe pressure on commodity prices the Group had to place its chrome project ( Moeijelijk 412KS ) under care and maintenance in January The board of directors of Bauba ( the Board or the Directors ) is cautiously optimistic that the chrome prices would recover by the last quarter of 2016 which would allow the Group to go back into production. The Board s focus for 2016 was mainly on generating revenue from its chrome operation and to reduce platinum exploration activities and corresponding expenditure. A full scale Mining Right has also been granted by the Department of Mineral Resources and the Board is optimistic about the continued positive growth performance in earnings for the 2017 financial year. The Group reported a loss attributable to the parents of the Group for the year ended of R6.406 million resulting in a loss per share of 1.69 cents (2015: earnings per share of 0.34 cents). Headline loss per share for the year was 1.69 cents (2015: headline earnings per share of 2.65 cents). The weighted average number of ordinary shares in issue for the year under review was (2015: ). 3. AUDIT OPINION BDO South Africa Incorporated has audited the Group s annual financial statements and their unqualified audit report is available for inspection at the Group s registered office. This abridged report is extracted from audited information, but is not itself audited. 4. DIVIDENDS No dividends were declared during the year under review. 5. OTHER FINANCIAL LIABILITIES (CURRENT) Chrome ore credit facility An amount was received as a credit facility until ASA Metals Proprietary Limited supplies the Group a letter of credit. This amount will be payable on the receipt of a letter of credit from a registered South African Bank. Chrome ore advance receipt The amount relates to an advance payment for chrome ore produced but not yet delivered at

6 Royalty taxes The amount relates to royalty taxes due according to the Mineral and Petroleum Resources Royalty Act Other Current liabilities At amortised cost Non-current liabilities At amortised cost PROVISIONS Provision for Rehabilitation: At 1 July Movement in provision during the year recognised in profit or loss At 30 June Current Non-current Environmental obligations are based on the Group s environmental plans. Full provision is made based on the net present value of the estimated cost of restoring the environmental disturbance that has occurred up to the reporting date. This provision has been classified as a non-current liability in the current year due to the Group s chrome mine placed under care and maintenance with rehabilitation commencing once the mine resumes production. The provision for rehabilitation was previously included under other financial liabilities. This has now been separately presented on the face of the statement of financial position for improved disclosure. 7. BOARD During the year under review, up to the date of this report, the following changes were made to the Board of Directors: Change of roles: NW van der Hoven (from Executive Director Legal Compliance and New Business Development to Chief Executive Officer) 31 May 2016 Resignations: S Caddy (Chief Executive Officer) 31 May 2016 K Mzondeki (Independent Non-Executive Director) 13 August 2015 CH Gernandt (Financial Director) effective 1 December 2016

7 Appointments: J Knowlden (Financial Director) effective 1 December 2016 The Board, with effect from 1 December 2016, will consist of the following Directors: NPJ van der Hoven Non-Executive Chairman D Smith Independent Non-Executive Director S Dalamo - Independent Non-Executive Director M Luyt Independent Non-Executive Director Dr NM Phosa Non-Executive Director King V Thulare Alternative non-executive Director to Dr NM Phosa NW van der Hoven Chief Executive Officer J Knowlden Financial Director

8 8. OPERATING SEGMENTS 2016 Chrome project Platinum exploration Corporate Total R'000 R'000 R'000 R'000 Revenue Profit/(loss) before tax (8 168) (3 348) Taxation (1 884) - - (1 884) Profit/(loss) after tax (8 168) (5 232) Interest received Depreciation, amortisation & impairment Investment in Intangibles Total Assets Total Liabilities (10 130) - (231) (10 361) 2015 Chrome project Platinum exploration Corporate Total R'000 R'000 R'000 R'000 Revenue Other income Profit/(loss) before tax (10 531) (1 729) Taxation Profit/(loss) after tax (10 531) Interest Received Interest Paid Depreciation, amortisation & impairment Total Assets Total Liabilities (38 719) - (208) (38 927)

9 The Bauba group segmental analysis is based on the Moeijelijk chrome project, platinum exploration and corporate activities. The Group was reliant on one major customer in respect of the chrome ore sales.

10 9. CHANGES IN SHARE CAPITAL During the year, there were no changes to the company s issued share capital. 10. INTANGIBLE ASSETS 2016 Cost Accumulated amortisation and impairments Carrying Value Platinum mineral rights (10 394) Chrome mineral rights (9 679) Exploration and evaluation assets (20 073) Platinum mineral rights (10 394) Chrome mineral rights (2 406) Exploration and evaluation assets (12 800) Reconciliation 2016 Platinum mineral rights Chrome mineral rights Exploration and evaluation assets 2015 Platinum mineral rights Chrome mineral rights Exploration and evaluation assets Opening balance Additions Amortisation Impairment Total (7 273) (7 273) (6 286) (2 406) (2 406) (6 286) The Board has satisfied itself that an impairment loss of R in the 2015 financial year has been incurred on the central cluster due to uneconomical qualities on the drilling results. Therefore, the board has not filed for retention permits on this central cluster.

11 11. Earnings per share Basic (loss)/earnings per share Basic earnings per share is determined by dividing profit or loss attributable to the ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Basic (loss)/earnings per share From operations (cents) (1.69) 0.34 Basic (loss)/earnings per share for the Bauba Group was based on (loss)/earnings of (6 406) 934 Weighted average number of ordinary shares ( 000) Diluted basic (loss)/earnings per share From operations (cents) (1.69) 0.34 (Loss)/profit for the year attributable to equity holders of the parent (6 406) 934 Diluted weighted average number of shares in issue ( 000) The after tax effect of interest on profit or loss to calculate diluted earnings per share has not been adjusted as it is insignificant. Reconciliation of earnings to headline (loss)/earnings attributable to equity holders of the parent: Headline (loss)/earnings per share (cents) (1.69) 2.65 Reconciliation between (loss)/earnings and headline (loss)/earnings Basic (loss)/earnings (6 406) 934 Adjusted for: Impairment of intangible assets Profit on sale of asset Headline (loss)/earnings (6 403) Weighted average number of shares in issue ( 000) Headline (loss)/earnings per share (cents) (1.69) 2.65 Diluted weighted average number of shares in issue ( 000) Diluted headline (loss)/earnings per share (cents) (1.69) 2.60 The weighted average number of shares for the purpose of diluted earnings per share reconciles to the weighted average number of shares used in the calculation of basic earnings per share as follows: 3 (8) Weighted number of shares used in the calculation of basic earnings per share Additional weighted shares issued based on suspensive conditions on the acquisition of the Houtbosch transaction Weighted average number of shares used in the calculation of diluted earnings per share ( 000) ( 000)

12 12. EVENTS AFTER THE END OF THE REPORTING PERIOD Shareholders are referred to the announcement released on SENS on 26 July 2016 wherein shareholders were advised that on 24 March 2016, the Company announced that a provision had been made in the results for the six months ended 31 December 2015 for an amount of approximately R15 million in respect of a doubtful debtor (the Debtor). This provision arose from the delivery of approximately Mt of chrome ore to the Debtor, for which the Company was not paid by the Debtor, who subsequently went into business rescue. The Group wrote the debt off as unrecoverable in the year under review. After vigorous legal action, an agreement was entered into with the Debtor, in terms of which the Company was entitled to recover approximately Mt of its chrome ore product (Product) which had been delivered to the Debtor s processing site. On 15 August 2016 Bauba A Hlabirwa Mining Investments Proprietary Limited signed a contract selling the Product at the Debtor s site valued at R excluding VAT and has been settled in full for this sale. The shortfall will remain part of the Company s concurrent claim against the Debtor. Apart from the statement above the directors are not aware of any other significant matter or circumstance arising since the end of the financial year, not otherwise dealt with in this report or the annual financial statements, which significantly affects the financial position of the Group or the results of its operations to the date of this report. 13. GOING CONCERN The financial year under review reflects a challenging year. The overall net loss after tax for the year was R5,232 million. The cash flow forecasts prepared by the directors indicate that the Company will be able to meet its commitments within the next 12 months as they fall due and to continue funding the Group expenditures. The Company has sufficient resources to continue as a going concern and has therefore concluded that it is appropriate to prepare the financial statements on a going concern basis. Accordingly, the financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern. 14. DISTRIBUTION OF INTEGRATED ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING Shareholders are advised that the integrated annual report for the year ended, was distributed to shareholders today, 30 November 2016 and contains modifications to the reviewed condensed consolidated provisional results published on SENS on 17 August Modifications have been made to operating and administrative expenses, taxation and deferred tax, because of these changes there has been a resultant effect on basic and diluted earnings per share. Notice is hereby given that the annual general meeting of shareholders of Bauba will be held at 10:00 on Wednesday, 25 January 2017 at the registered office of the Company at Cube Workspace, 1 Wedgewood Link, Bryanston to transact the business stated in the notice of the annual general meeting, which is contained in the integrated annual report. The Board has determined that, in terms of section 62(3)(a), as read with section 59 of the Companies Act, 2008 (Act 71 of 2008), as amended, the record date for the purposes of determining which shareholders of the Company are entitled to participate in and vote at the annual general meeting is Friday, 20 January Accordingly, the last day to trade Bauba shares in order to be recorded in the Register to be entitled to vote will be Tuesday, 17 January November 2016 Johannesburg

13 CORPORATE INFORMATION Bauba Platinum Limited Country of incorporation and domicilium: South Africa Postal address PO Box 1658, Witkoppen, 2068 Tel no:+27 (011) Web: Directors: NPJ van der Hoven# (Chairman), M Luyt*, SM Dolamo*, Dr NM Phosa#, DS Smith*, King TV Thulare (Alternate), NW van der Hoven, CH Gernandt (#Non-Executive, * Independent Non-Executives) Company Secretary: Merchantec Proprietary Limited Registered Office: Cube Workspace, 1 Wedgewood Link, Bryanston, Johannesburg, 2191, South Africa. Transfer Secretaries: Computershare Investor Services Proprietary Limited, 70 Marshall Street, Marshalltown 2001, PO Box 61051, Marshalltown 2107 Auditor: BDO South Africa Incorporated Sponsor: Merchantec Capital