5th Dec 2005 11:21
African Platinum Plc05 December 2005 African Platinum plcTicker: APPIndex: AIMSector: Exploration INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005 African Platinum plc (the "company") announces its interim results for the sixmonth period ended 30 September 2005. HIGHLIGHTS * Upgraded resource statement will allow both proven and probable reserves to be utilised in Leeuwkop bankable feasibility study * Rand Merchant Bank appointed as advisor on the structure and funding of Leeuwkop project; SRK appointed as independent engineer * Management team strengthened with appointment of leading PGM expert as exploration manager * Cash on hand more than sufficient to fund completion of Leeuwkop bankable feasibility study and continuing exploration programme STATEMENT BY CHARLES HANSARD, NON-EXECUTIVE CHAIRMAN I am pleased to report that African Platinum plc has continued to makesubstantial progress towards advancing the feasibility study on the Leeuwkopproject, strengthening its management team and accelerating the explorationdrive. It is, therefore, on track to achieve its objective of building apremier platinum company. The feasibility study at Leeuwkop is progressing according to schedule and isexpected to be completed in the first half of 2006. We are very pleased to haveannounced an upgraded resource statement; this increased level of confidence inthe resource base takes into account the final results of the 3D seismic surveycompleted earlier in the year. The seismic data indicates that the Leeuwkoporebody is remarkably consistent over the planned bankable project area andreveals no significant geological disturbances. The survey confirmed theexcellent quality of the ground surrounding the proposed shaft positions andthat the orebody is suitable for mechanised mining given the consistent natureof the reef and lack of geological features which could potentially disruptmining operations. The full report is available on our website atwww.afplats.com. Another significant milestone was achieved with the appointment of Rand MerchantBank Limited as advisor to the company on the structure and funding of theproject. RMB is one of the foremost corporate advisory firms in South Africaand has a particularly impressive record in the resources sector. It willdetermine the optimal capital structure for raising the estimated ZAR1.9 billionrequired to bring the mine which is located on the Western Limb of the BushveldComplex into production. RMB is also advising Afplats and its Black EconomicEmpowerment partners on an efficient and fundable BEE structure that willsatisfy the requirements of South Africa's Mining Charter including appropriateshare participation. Afplats has also recently appointed SRK Consulting Limited as the IndependentEngineer for the project. SRK will conduct due diligence on the definitivefeasibility study currently being compiled from which a Competent Person'sReport will be derived; this will be used by funding institutions to convert thefeasibility study into a bankable document. The study is expected to becompleted in the first half of 2006 and planning is underway to ensure that thecapital raising process goes smoothly when we are ready to approach the market. On the personnel front, Dr Jock Harmer has joined the executive team asexploration manager. Dr Harmer is a highly experienced practical explorationgeologist and academic who is recognised as one of the world's leadingauthorities on PGMs and the Bushveld Complex. As well as directing theprogramme which covers ongoing work at Leeuwkop, he is reviewing the company'sSnakes Head project in Zimbabwe, the Molopo Farms prospect in Botswana and ourtenements in Mozambique. Turning to the results, the year-to-date loss is in line with expectations andis typical of a mining company at this stage of its development. Capitalexpenditure of some £4.1 million remains within budget and cash on hand of £12.4million is more than sufficient to fund the completion of the Leeuwkop bankablefeasibility study and the company's continuing exploration programme. Charles HansardChairman5 December 2005 UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the six months ended 30 September 2005 Six months Six months Year ended ended ended 30 September 30 September 31 March£000 2005 2004 2005 TURNOVER - - - Net operating expenses (1,561) (1,105) (2,213) OPERATING LOSS (1,561) (1,105) (2,213) Interest receivable 379 63 452 LOSS ON ORDINARY ACTIVITIES BEFORETAXATION (1,182) (1,042) (1,761) Taxation - - - LOSS ON ORDINARY ACTIVITIES AFTERTAXATION (1,182) (1,042) (1,761) Minority interests - - 13 LOSS FOR THE FINANCIAL PERIOD (1,182) (1,042) (1,748) LOSS PER SHARE Basic and diluted (0.29p) (0.39p) (0.54p) UNAUDITED CONSOLIDATED BALANCE SHEETat 30 September 2005 30 September 30 September 31 March£000 2005 2004 2005 FIXED ASSETS Intangible assets 14,574 7,068 9,951 Tangible assets 162 50 123 Investments 307 - 307 15,043 7,118 10,381 CURRENT ASSETS Debtors 789 1,208 521 Cash at bank and in hand 12,475 18,994 17,718 13,264 20,202 18,239 Creditors: Amounts falling duewithin one year (910) (1,034) (1,210) NET CURRENT ASSETS 12,354 19,168 17,029 TOTAL ASSETS LESS CURRENT LIABILITIES 27,397 26,286 27,410 CAPITAL AND RESERVES Called up share capital 411 345 395 Share premium account 30,051 27,647 29,458 Other reserves 128 66 56 Profit and loss account (3,193) (1,772) (2,499) EQUITY SHAREHOLDERS' FUNDS 27,397 26,286 27,410 UNAUDITED CONSOLIDATED CASH FLOW STATEMENTfor the six months ended 30 September 2005 Six months Six months Year ended ended ended 30 September 30 September 31 March£000 2005 2004 2005 Cash outflow from operatingactivities (1,872) (645) (1,942) Returns on investments and servicing 379 63 452of finance Capital expenditure and financialinvestment (4,113) (1,194) (4,034) Acquisitions and disposals (15) (67) (43) CASH OUTFLOW BEFORE USE OF LIQUID (5,621) (1,843) (5,567)RESOURCES AND FINANCING Management of liquidresources 4,514 (16,499) (13,765) Financing 378 18,339 20,788 (DECREASE)/INCREASE IN CASH IN THE (729) (3) 1,456PERIOD RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSfor the six months ended 30 September 2005 Six months Six months Year ended ended ended 30 September 30 September 31 March£000 2005 2004 2005 (Decrease)/increase in cash in the period (729) (3) 1,456 Cash (inflow)/outflow from (decrease)/ increase in liquid resources (4,514) 16,499 13,765 NET FUNDS AT BEGINNING OF PERIOD 17,718 2,497 2,497 NET FUNDS AT END OF PERIOD 12,475 18,993 17,718 NOTES 1. These interim financial statements do not constitute statutory accounts of the groupwithin the meaning of Section 240 of the Companies Act 1985. Statutory accounts for the yearended 31 March 2005, which were prepared under accounting practices generally accepted in theUK, have been filed with the Registrar of Companies. The auditors' report on those financialstatements was unqualified. 2. LOSS PER ORDINARY SHAREThe calculation of basic and diluted loss per ordinary share is based on the following lossesand numbers of shares. Six months Six months Year ended ended ended 30 September 30 September 31 March£000 2005 2004 2005 Loss for the financial period (1,182) (1,042) (1,748) Weighted average number of shares 406,087,504 267,804,118 318,465,750 Due to the loss incurred in the period, there is no dilutive effect from the issue of share options and warrants. Enquiries:Kathy du Plessis, Investor & Media RelationsTel: +27 (0)11 728 4701 Fax: +27 (0)11 728 2547 E-mail: [email protected] DISCLAIMER: Investing in all equities, including natural resources-relatedequities, carries risks which should be taken into consideration when making aninvestment. This announcement contains forward-looking statements regardingAfrican Platinum plc, including the development of its mining developmentprojects. Actual results relating to any and all of these subjects may differmaterially from those presented. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
APP.L