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Platmin Limited (PPN)

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Wednesday 27 May, 2009

Platmin Limited

Final Results

RNS Number : 9088S
Platmin Limited
27 May 2009
 



PLATMIN LIMITED

6 EcoFusion Office Park,

Block B, 324, Witch-Hazel Street

Highveld Park X59

0157 Centurion, 0067

South Africa

News Release 

May 30, 2008

 

Final Results


 May 27, 2009

Platmin Limited (the 'Company') is pleased to announce its financial accounts for the year ended February 28, 2009 and its Management's Discussion and Analysis of Financial Condition and Results of Operations.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE YEAR ENDED FEBRUARY 28, 2009


May 27, 2009


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis of Financial Condition and Results of Operations ('MD&A') for the three and twelve month periods ended February 28, 2009 contains ''forward-looking information'' which may include, but is not limited to, statements with respect to the future financial and operating performance of Platmin Limited (the 'Company' or 'Platmin'), its subsidiaries and affiliated companies, and its mineral projects, the future price of platinum or other Platinum Group Elements ('PGEs'), the future price of other base metals, the future exchange rates, the estimation of mineral resources and reserves, the realization of mineral resource estimates or their conversion into reserves, costs and future costs of production, capital and exploration expenditures, costs and timing of the development of new deposits, costs and timing of the development of new mines, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations and exploration operations, timing and receipt of approvals, licenses, and conversions under South African mineral legislation, environmental risks, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as ''plans'', ''expects'', ''is expected'', ''budget'', ''scheduled'', ''estimates'', ''forecasts'', ''intends'', ''anticipates'', or ''believes'' or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will'' be taken, occur or be achieved. 

Forward-looking statements in this MD&A include, among others, the operation of open cast mining; forecast average annualized production rate of 250,000 ounces of 3PGE+Au metals at the Pilanesberg Platinum Mine ('Pilanesberg Mine'); average operating margins of 46% over the life of mine with the expected cash costs in the lowest-quartile for the industry; completion of plant construction at the Pilanesberg Mine; achieving the ramp-up to steady state production at the Pilanesberg Mine in September 2009; the declaration of a 4PGE+Au mineral resource at the Pilanesberg Mine and 5PGE+Au at the Mphahlele Project; and the timing and completion of definitive feasibility work at the Mphahlele and Grootboom Projects.

Such forward-looking statements are based on a number of material factors and assumptions, including, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for construction and development is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment functions as specified, and that no unusual geological or technical problems occur.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Platmin and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations and studies; fluctuations in the value of the United States dollar relative to the Canadian dollar or South African rand; changes in project parameters as plans continue to be refined; future prices of platinum or other PGEs; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; the effect of HIV/AIDS on labour force availability and turnover; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors communicated in the section entitled ''Risk Factors'' of Platmin's current annual information form ('AIF') which can be viewed at www.sedar.com. Although Platmin has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this MD&A and Platmin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.


For further information


Keith Liddell, Chairman                                                     +27 12 661 4280

Wayne Koonin, Chief Financial Officer                                +27 12 661 4280

Fiona Owen, Grant Thornton UK LLP (Nominated Adviser)    +44 207 383 5100

Marion Brower, Russell & Associates                                 +27 11 880 3924



1. Introduction

The Management's Discussion and Analysis of Financial Condition and Results of Operations ('MD&A') is provided to enable the reader to assess and understand the financial condition and results of operations for the three and twelve month periods ended February 28, 2009, in comparison to corresponding periods. Information in this MD&A must be read in conjunction with the audited consolidated financial statements of Platmin for the year ended February 28, 2009 and the notes thereto (collectively, the 'annual financial statements').

The MD&A should also be read in conjunction with the company's Annual Information Form ('AIF') and the technical reports prepared by qualified persons in accordance with NI 43-101 on file with the Canadian provincial securities regulatory authorities. These documents can be found at www.sedar.com and at www.platmin.com

All dollar amounts in this MD&A are expressed in United States dollars ('US$'), unless otherwise specified. When used, C$ refers to Canadian dollars. References to quarters are to financial quarters and not to calendar quarters, unless otherwise specified. The annual financial statements have been prepared in accordance with Canadian generally accepted accounting principles ('Canadian GAAP').

2. Overview

Platmin Limited (the 'Company' or 'Platmin') is continued under the laws of British Columbia, Canada and its Common Shares are listed on the Toronto Stock Exchange ('TSX') and the Alternative Investment Market ('AIM') of the London Stock Exchange. The Company trades under the symbol 'PPN' on both exchanges.

Platmin is a mineral exploration, development and operating company engaged in the exploration for, and development of, Platinum Group Element ('PGE') deposits in South Africa. The Company has developed the Pilanesberg Project into the Pilanesberg Mine ('PPM') and is exploring for PGEs on its other three key projects: Mphahlele, Grootboom and Loskop. Platmin's goal is to become a significant producer of PGEs through the development and operation of several mines on its key projects. Management's main priority is the completion of the construction phase and bringing the Pilanesberg Mine into full production on time and within budget. Exploration, resource delineation and feasibility study work on the other key projects continue at a reduced level of activity.

3. Overall Performance

The Company recorded a net profit for the quarter ended February 28, 2009 of US$16.73 million, or US$0.10 per share, compared with a net loss of US$3.72 million or US$0.04 per share, for the quarter ended February 29, 2008. The Company recorded a net loss for the twelve months ended February 28, 2009 of US$11.02 million, or US$0.07 per share, compared with a net loss of US$9.08 million, or US$0.09 per share, for the twelve months ended February 29, 2008. The increase in loss was principally the result of an increase in management and consulting fees and interest, offset by a foreign exchange gain due to the volatility in the exchange rate of the South African rand (ZAR) against the United States dollar (US$) in the last quarter of fiscal 2009. 

The Company follows the practice of capitalizing all costs related to the acquisition, exploration and development of mineral exploration properties until such time as the mineral properties are put into commercial production, sold, or become impaired. Commercial production is considered to be attained when the overall level of production, both in terms of mining and plant operations, reaches the planned level of output and performance in accordance with the original engineering studies. Upon commencement of commercial production these capitalized costs will be amortized prospectively over the life of the mine. In the year ended February 28, 2009, the Company's deferred exploration expense increased to US$34.06 million from US$27.13 million as at the financial year ended February 29, 2008.

The Company has developed the Pilanesberg Project into the Pilanesberg Mine ('PPM'), which constitutes an open-cast mining operation and a metallurgical processing and concentrator plant ('processing plant'), which will produce a PGE concentrate for sale to a custom smelting and refining operation. Construction of the processing plant commenced in October 2007 and the construction contract is scheduled to be closed in the second quarter of fiscal 2010. The processing plant was designed based on two separate processing circuits to crush, mill and float the ore from the UG2 and Merensky Reefs as two separate streams. In addition, the Merensky reef circuit includes a Dense Media Separation ('DMS') circuit to upgrade low grade ore. Commissioning of the processing plant takes place in two stages with the commissioning of the UG2 circuit commencing in December 2008 and the Merensky circuit commencing in May 2009. Full commissioning of the processing plant is expected to be completed by the third quarter fiscal 2010. 

The overall design of the processing plant was based on processing in excess of 5 million tonnes per annum of reef ore and producing 250,000 ounces of 3PGE+Au, on an annualized basis. The operation of the processing plant has been sub-contracted to Minopex (Pty) Ltd ('Minopex'), a division of Dowding Reynard and Associates Engineering (Pty) Ltd ('DRA Engineering'). Processing of material through the UG2 circuit in March 2009, signalled the commencement of the plant operation to produce a metal in concentrate ready for smelting, refining and sale under the Sale and Treatment of Concentrate Agreement ('Concentrate Agreement') to Northam Platinum Limited ('Northam').

Mining operations are contracted on an outsourced basis to MCC Contracts (Pty) Ltd ('MCC') and are overseen by PPM staff. The removal of overburden and waste rock material commenced in March 2008, Reef mining commenced in December 2008 and is in the ramp up phase to reach steady state extraction rates of over 400,000 total tonnes per month or over 5 million total tonnes per annum of reef ore during the second quarter of fiscal 2010. A Reverse Circulation (RC) grade control drilling program at a drill spacing of 10m has commenced on the initial mining blocks of the Tuschenkomst pit and will maintain an advanced drilling program of a minimum of three months ahead of reef mining. Stock-piling of PGE bearing ore ahead of the processing plant, commenced in December 2008 in preparation for the commencement of milling operations in March 2009. 

PPM entered into an agreement with engineering firm DRA Engineering to implement the overall design and construction phase of the project, including the processing plant. The total estimated capital expenditure value determined during the Bankable Feasibility Study ('BFS') of the project was ZAR1.67 billion which equated to US$231.94 million at an estimated exchange rate of ZAR7.20 at the time of the BFS. In the year ended February 28, 2009, total expenditure on the project amounted to US$220.87 million (ZAR1.69 billion) compared to US$23.97 million (ZAR158.61 million) at the end of the previous financial year. For the year ended February 28, 2009 the total revised project was US$270.42 million (ZAR2.70 billion) which is higher than the original amounts per the BFS due to changes in scope, cost increases that were experienced in general terms by the global mining industry over the past two years and variance in foreign exchange rates. The overall plant construction project was ahead of schedule at 95% complete at February 28, 2009.

The remaining expenditure on the project at the year ended February 28, 2009 was approximately US$60.80 million (ZAR607.20 million) and was funded predominantly from approximately US$175 million in cash raised from the sale of Common Shares to the Pallinghurst Investment Consortium in December 2008 and February 2009. Additional funding would be raised through a new long term project debt finance facility and if required, the raising of additional cash from the sale of new equity.

In light of the current depressed prices for PGE's, the Company, in a press statement on December 9, 2008, announced that the Mphahlele and Grootboom projects have been placed on a reduced work program until conditions improve sufficiently to allow the development of these projects. Platmin will commit sufficient expenditure to these projects to ensure that the new order Prospecting and Mining Rights are preserved. These expenditures will be funded from existing cash on hand and where necessary, additional funding will be raised to fund future exploration and development expenditure.  

Significant developments in the three months ended February 28, 2009 were as follows: 

  • The Company entered into an investors and subscription agreement to issue, by way of private placement, a total of 258,416,038 common shares of Platmin, in two tranches, for gross proceeds of US$125 million and ZAR 500 million (US$50 million) respectively, resulting in the raising of approximately US$175 million in new equity. The Company completed the first tranche of this transaction and issued a total of 184,886,627 Common Shares to the Pallinghurst Investment Consortium for C$0.85 (or ZAR 6.80) per share. The gross proceeds raised equal US$125 million and were received on December 19, 2008;
  • In the second tranche of this transaction, Platmin issued 73,529,411 Common Shares to the Pallinghurst Investor Consortium on February 19, 2009 at a per share purchase price of ZAR 6.80 (C$0.85 based on the exchange rate on December 8, 2008) for a total purchase consideration of ZAR 500 million (US$50 million);
  • On December 19, 2008, following the completion of the first tranche of the investors and subscription agreement, Messrs Brian Gilbertson and Arne Frandsen were appointed to the board of directors. Mr Rupert Pardoe resigned as Non-Executive Chairman and Mr Keith Liddell, previously Executive Deputy Chairman, was appointed as Non-Executive Chairman and Mr Kwape Mmela, previously Director, was appointed as Non-Executive Deputy Chairman;
  • In December 2008, following the removal of approximately 15 million tonnes of over-burden waste material, reef mining commenced. By the end of February 28, 2009, a total of 305,500 tonnes of ore had been delivered to the run of mine stockpile ahead of the processing plant. Ramp-up to steady state production of approximately 400,000 total tonnes per month or over 5 million total tonnes per annum of reef ore, is anticipated by the second quarter fiscal 2010; and
  • The bridge loan facility that was due to be repaid on February 28, 2009 was extended, under the terms of an amendment agreement with The Standard Bank of South Africa Limited ('Standard Bank'), until May 31, 2009 or such earlier date by which time it is converted into a long-term project debt finance facility. Under the extension, Platmin has provided cash collateral of up to ZAR387.8 million (US$38.84 million) as security against this loan.

Important events which occurred subsequent to February 28, 2009 include:

  • On March 23, 2009, the UG2 circuit of the processing plant, commenced operation and produced the first metal in concentrates for further processing under the Concentrate Agreement with Northam. The commencement of processing follows only 18 months after the commencement of construction of the processing plant in October 2007;
  • On April 1, 2009, the Company completed the change of corporate domicile from Ontario to British Columbia, Canada;
  • On April 1, 2009, Messrs Ron Little and Jay Kellerman tendered their resignation from the board of directors and on April 7, 2009, Mr. John Calvert was appointed to the board of directors.
  • On April 30, 2009, the Company submitted an application to the applicable Canadian securities regulators for the early adoption of International Financial Reporting Standards ('IFRS') for the financial year ended February 28, 2010.
  • On May 15, 2009, the Company announced that it has engaged GMP Securities Europe LLP ('GMP') to conduct a brokered private placement of common shares of Platmin, to raise, on a best efforts agency basis, between C$45 million and C$55 million, with an option of a further C$15 million at the volition of the Company. If successful, the proceeds of the private placement will be used for debt restructuring and for working capital purposes. Completion of the proposed private placement is subject to the approval of the TSX and all other necessary regulatory approvals, as well as customary closing conditions. As at May 21, 2009, placees have been arranged to purchase 75,015,552 new common shares for a consideration of £39,008,087. 

4. Selected Annual Financial Information

The table below sets forth selected financial data relating to the company's financial years ended February 28, 2009; February 29, 2008 and February 28, 2007 in US$'000 unless stated differently. The financial data is derived from the Company's annual audited consolidated financial statements, which are prepared in accordance with Canadian GAAP. The Company had no operating revenue in any of such financial years, and did not declare a dividend in any of such financial years.

 

                                                                                                        Year ended

Loss and deficit summary

Feb '09

US$'000

Feb '08

US$'000

Feb '07

US$'000

Loss for the year 

(11,018)

(9,080)

(7,038)

Net loss per common share (US$)

0.07

0.09

0.09

Weighted average number of shares

163,931,727

96,535,488

77,719,629


Expenditure relates to the administration costs required to manage the exploration and development activities of the Company and foreign exchange losses on shareholder loan accounts.


                                                                                                        Year ended

Balance Sheet

Feb '09

US$'000

Feb '08

US$'000

Feb '07

US$'000

Current assets 

146,071

111,173

57,446

Other assets

48,854

35,427

27,230

Pilanesberg Plant

214,705

24,425

785

TOTAL ASSETS

409,630

171,025

85,461





Current liabilities

62,326

3,161

3,376

Long-term liabilities

14,136

2,849

1,152

Shareholder's equity

333,168

165,015

80,933

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY

409,630

171,025

85,461





Results of Operations

Quarter ended February 28, 2009 compared to the quarter ended February 29, 2008

There was no operating revenue in either quarter as the Company had no revenue generating operations or mineral production in the quarter ended February 29, 2008 and although mining operations commenced in the quarter ended February 28, 2009; no concentrate has been produced by the end of the quarter. 

Interest income of US$0.783 million was recorded in the quarter ended February 28, 2009 compared to US$1.081 million in the quarter ended February 29, 2008.

The Company recorded a net profit for the quarter ended February 28, 2009 of US$16.726 million, or US$0.10 per share, compared with a net loss of US$3.716 million, or US$0.04 per share, for the quarter ended February 29, 2008.

Administrative expenses, which include management, professional and consulting fees, salary costs related to the vesting of share options, office rentals, interest and finance costs, amongst other costs, totalled US$13.866 million for the quarter ended February 28, 2009 compared to the corresponding prior year quarter amount of US$3.285 million. The major expense item was an increase in management and consulting fees due to the increase in workforce at the Pilanesberg Mine as the construction and development of the mine was in a ramp up phase, and equity raising fees incurred on the private placement of Common Shares.

A total of US$1.230 million of deferred exploration expenditures was capitalized in the quarter ended February 28, 2009 compared with US$0.564 million in the quarter ended February 29, 2008.

Year ended February 28, 2009 compared to the year ended February 29, 2008

There was no operating revenue in either year as the Company had no revenue generating operations or mineral production in the year ended February 29, 2008 and although mining operations commenced in the year ended February 28, 2009; no concentrate had been sold during this financial year. 

Interest income of US$3.816 million was recorded in the year ended February 28, 2009 compared to US$3.143 million in the year ended February 29, 2008.

The Company recorded a net loss for the year ended February 28, 2009 of US$11.018 million, or US$0.07 per share, compared with a net loss of US$9.080 million, or US$0.09 per share, for the year ended February 29, 2008.

Administrative expenses, which include management, professional and consulting fees, office rentals, interest and finance costs, amongst other costs, totalled US$19.383 million for the year ended February 28, 2009 compared to the corresponding prior year amount of US$12.301 million. The two major expense items were foreign exchange losses on shareholders loans, which were offset in part by a foreign exchange gain on the translation of the historical cost of the PPM plant, and an increase in management, professional and consulting fees. The foreign exchange loss on the shareholder's loan was due to the volatility of the South African rand against the US dollar which devalued by 23% based on the average exchange rate for the year and by 33% based on the spot exchange rate at year end. The foreign exchange gain totalled US$8.703 million in the twelve months ended February 28, 2009 compared with a foreign exchange loss of US$0.377 million in the corresponding prior year period ended February 29, 2008. The foreign exchange gain is due to the volatility in the exchange rate of the South African rand (ZAR) against the United States dollar (US$) especially in the last quarter of fiscal 2009.   

The increase in management, professional and consulting fees is due to the increase in the workforce at the PPM as the construction and development of the mine and processing plant was in a ramp up phase. The management and consulting fees totalled US$17.304 million in the twelve months ended February 28, 2009 compared with US$9.044 million in the corresponding prior year period ended February 29, 2008.

A total of US$6.930 million of deferred exploration expenditures was capitalized in the year ended February 28, 2009 compared to US$5.629 million in the year ended February 29, 2008.


5. Summary of Quarterly Results


                                                                                            Quarter ended


Feb '09

Nov '08

Aug '08

May '08

Feb '08

Nov '07

Aug '07

May '07

(Profit) / Loss for the period (US$ '000)

(16.726)

19.401

4.783

3.560

3.716

1.020

1.888

2.971

Net (earnings) / loss per common share (US$)

(0.10)

0.17

0.04

0.03

0.04

0.01

0.02

0.03

6. Liquidity and Capital Resources

The Company has cash and cash equivalents of US$88.883 million at February 28, 2009, as compared with $88.188 million at February 29, 2008. The unchanged position is primarily due to the equity raising in terms of the investors and subscription agreement entered into in December 2008 with the Pallinghurst Investor Consortium for US$175 million, which was offset by expenditure of US$172.085 million on the construction of the mine and US$3.000 million on other expenditure during the period.

The Company finances its exploration, development and construction activities by raising capital from equity markets, and through contributions by joint venture partners and by raising debt funding. Funding requirements for the Company's projects have historically been satisfied through the advance of shareholders' loans, by Platmin and Boynton Investments (Pty) Ltd ('Boynton') or subscription for shares (rights issues to shareholders). The shareholders' agreements or joint venture agreements of Platmin's subsidiaries also generally make provision for the board of directors of each relevant company to seek finance on behalf of each company, although this has not been utilized to date. The completion of construction and commencement of production from PPM, and any future exploration and development projects, will require that the Company raise additional funds. The Company's principal subsidiary, Boynton, operates in South Africa and as a result is subject to the South African Reserve Bank (''SARB'') exchange control regulations. Shareholder loans from Platmin to Boynton, amounted to US$233.202 million at February 28, 2009. Any repayment of foreign currency loans by a South African company to an offshore company, are subject to prior approval by the SARB. 


Bridging finance facility

A bridge loan facility of US$35 million (ZAR 350 million) was concluded with Standard Bank in May 2008. The term of the bridge loan facility was initially for the period of four months to August 2008 and has subsequently been extended through two further extensions, to 31 May 2009. By November 30, 2008, US$35 million (ZAR 350 million) was drawn on the facility and the facility incurred interest at the Johannesburg Interbank Lending Rate ('JIBAR') plus 3.0%. The bridge loan facility has been used to fund a portion of the costs associated with the development and construction of PPM. 

The bridge loan facility was due to be repaid on February 28, 2009 and under the terms of an amendment agreement with Standard Bank, the bridge loan facility was extended until May 31, 2009 or such earlier date by which time it is converted into a long-term loan facility. Under the extension, Platmin has provided cash collateral to Standard Bank of ZAR387.8 million (US$38.84 million) as security against the loan, and upon which the Company earns interest at JIBAR plus 0.1%. The loan bears interest at JIBAR plus 0.5% and the net finance cost on the loan is 0.4%. At the financial year ended February 28, 2009 the balance including capital and accrued interest was US$38.752 million.

In relation to the original bridge loan facility, the Company has issued 300,000 warrants at $6.95 per common share, exercisable 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$0.846 million has been treated as cost of the loan transaction. In the year ended February 28, 2009, the fair value of these warrants has been fully amortized to net income using the effective interest method, over the original loan term of 6 months.


Project Debt Finance funding

In August 2008, Standard Bank and Standard Chartered Bank Plc had been appointed as mandated lead arrangers to arrange and underwrite a long term project debt finance facility of up to US$200 million. The US$200 million project debt finance was intended to be used for the further development of PPM. However, as both the credit and PGE commodity prices deteriorated in the third quarter of fiscal 2009, it became clear that such a facility could not be obtained on the terms envisaged. Discussions continue in terms of arranging project debt finance for a lesser amount under this mandate which may include converting the current bridge loan facility to a long term project debt finance facility.


New equity raising

The Company was approached with an alternative to a debt facility. As a result, the Company has entered into an investors and subscription agreement with, among others, Ivy Lane Capital Limited, being the Pallinghurst Investor Consortium's investment vehicle ('Pallinghurst') and the Bakgatla-Ba-Kgafela Tribe ('Bakgatla') and Bakgatla Pallinghurst JV (Proprietary) Limited ('BPJV'), a company jointly owned by Pallinghurst and Bakgatla as to 49.9% and 50.1% respectively, to issue, by way of private placement, a total of 258,416,038 common shares of Platmin, in two tranches, for gross proceeds of US$125 million and ZAR 500 million (US$50 million) respectively, resulting in the raising of approximately US$175 million in new equity.

The transaction includes both the private placement and an exchange of shares of Platmin's operating subsidiary Boynton for newly issued Common Shares of Platmin such that Platmin's effective indirect shareholding in Boynton of 72.4% will increase to a 100% indirect shareholding in Boynton.

The Company completed the first tranche of this transaction and issued a total of 184,886,627 common shares for C$0.85 (or ZAR 6.80) per share to the Pallinghurst Investor Consortium. The gross proceeds raised equal US$125 million and were received on December 19, 2008.

During the second tranche of this transaction, Platmin issued 73,529,411 Common Shares to the Pallinghurst Investor Consortium on February 19, 2009 at a per share purchase price of ZAR 6.80 (C$0.85 based on the exchange rate on December 8, 2008) for a total purchase consideration of ZAR 500 million.

As at February 28, 2009, the Company had 370,002,800 Common Shares in issue compared to 111,537,048 Common Shares as at February 28, 2008.

 

7. Results of Operations by Project

In the year ended February 28, 2009, the Company spent US$6.930 million on exploration expenditures and US$159.752 million on development expenditures. Of the amount spent on exploration, 14% was spent on the Pilanesberg Project, 55% was spent on the Mphahlele Project, 27% was spent on the Grootboom Project and 4% spent on other projects. All development expenditures were spent on PPM. A summary of the expenditures by project along with proposed programs is set forth below.


7.1    Pilanesberg Mine

The total development expenditures for the quarter ended February 28, 2009 was US$83.658 million and US$202.694 million for the year ended. Total expenditure to date is US$226.659 million. 

The total exploration expenditure for the quarter ended February 28, 2009 was US$0.149 million and US$0.974 for the year to date. Total exploration expenditures since inception on this project is US$17.541 million. 

The Company has developed the Pilanesberg Project into the PPM, which constitutes an open-cast mining operation and a processing plant, which will produce a PGE concentrate for sale to a custom smelting and refining operation. Construction of the processing plant commenced in October 2007 and the construction contract is scheduled to be closed in the second quarter of fiscal 2010. The processing plant was designed based on two separate processing circuits to crush, mill and float the ore from the UG2 and Merensky Reefs as two separate streams. In addition, the Merensky reef circuit includes a DMS circuit to upgrade low grade ore. Commissioning of the processing plant will take place in two stages with the commissioning of the UG2 circuit commencing in December 2008 and the Merensky circuit commencing in June 2009. Full commissioning of the processing plant is expected to be completed by the third quarter fiscal 2010. 

The overall design of the processing plant was based on processing in excess of 5 million tonnes per annum of reef ore and producing 250 000 ounces of 3PGE+Au on an annualized basis. The operation of the processing plant has been sub-contracted to Minopex, a division of DRA Engineering. Processing of material through the UG2 circuit in March 2009, signalled the commencement of the plant operation to produce a metal in concentrate ready for smelting, refining and sale under the Concentrate Agreement to Northam.

Mining operations are contracted on an outsourced basis to MCC and are overseen by PPM staff. The mining operation comprises accessing the two commonly exploited 'PGE-bearing' Merensky and UG2 reef horizons in one open-cast mining operation due to the close proximity of these reefs to one another in this part of the Bushveld Igneous Complex. Other 'economically viable' reefs, commonly known as the 'Pseudo' reefs, are also present between the two aforementioned reef horizons and these will be extracted along with the Merensky reef as an overall 'Silicate Package'. The Silicate Package will be processed in a 'Merensky' metallurgical concentrator plant and the UG2 Chromitite Layer will be processed in a separate 'UG2' metallurgical concentrator plant. Both concentrates produced will then be combined and forwarded to Northam's smelter in South Africa, for further processing into final metals under the current Concentrate Agreement.

The removal of overburden and waste rock material commenced in March 2008. Reef mining commenced in November 2008 and is in the ramp up phase to reach steady state extraction rates of over 400,000 total tonnes per month or over 5 million total tonnes per annum of reef ore during the second quarter of fiscal 2010. An RC grade control drilling program at a drill spacing of 10m has commenced on the initial mining blocks of the Tuschenkomst pit and will maintain an advanced drilling program of a minimum of three months ahead of reef mining.

Mine planning continues to take place at PPM, by AB Global Mining Consultants, to continuously update the mine scheduling on a short and long-term basis. 

Stock-piling of PGE bearing ore ahead of the processing plant, commenced in December 2008 in preparation for the commencement of milling operations in March 2009. 

PPM entered into an agreement with engineering firm DRA Engineering to implement the overall design and construction phase of the project, including the processing plant. The total estimated capital expenditure value determined during the BFS of the project was ZAR1.67 billion which equated to US$231.94 million at an estimated exchange rate of ZAR7.20 = US$1.00 at the time of the BFS. In the year ended February 28, 2009, total expenditure on the project amounted to US$220.867 million (ZAR1.698 billion) compared to US$23,965 million (ZAR158.607 million) at the end of the previous financial year ended February 29, 2008. For the year ended February 28, 2009 the total revised project was US$270.42 million (ZAR2.70 billion) which is higher than the original amounts per the BFS due to changes in scope, cost increases that were experienced by the global mining industry in general and variance in foreign exchange rates. The overall plant construction project was ahead of schedule at 95% complete at February 28, 2009. 

The Pilanesberg Mine has secured a commitment from the State Utility Energy Provider, ESKOM, for the supply of 37 megavolt amperes (MVA) of new power supply by mid 2009, as required for the full operation of the processing plant. The first phase of the implementation plan was completed by ESKOM in March 2009, with the installation of 14MVA of new power supply for the operation of the UG2 circuit of the plant. Installation of the remaining 23MVA of installed power is scheduled for completion by June 2009 and is required to bring the Merensky Reef circuit into full operation. During the construction phase of PPM, ESKOM provided a temporary power supply of 1.5MVA, sufficient to run the facilities for that phase of the project. A complete 10MVA standby diesel generator power plant is in the process of being constructed at PPM, at a cost of US$14.457 million (ZAR144.350 million) to provide sufficient power to run the UG2 section of the processing plant on an ongoing basis in the event that ESKOM is unable to provide constant power to the mine over an extended period of time. The installation is expected to be completed by the second quarter of fiscal 2010.

The remaining expenditure on the project at the year ended February 28, 2009 was US$60.8 million (ZAR607.2 million) and will be funded predominantly from approximately US$175 million in cash raised from the sale of Common Shares to the Pallinghurst Investment Consortium in December 2008 and February 2009. Additional funding would be raised through a new long term project debt finance facility and if required, the raising of additional cash from the sale of new equity.

Platmin also plans to conduct further exploration in the vicinity of the Pilanesberg Project with the view to increasing the mineral resources in the Pilanesberg area.

 

7.2    Mphahlele Project 

In the quarter ended February 28, 2009, a total of US$0.369 million was spent on the Mphahlele project and US$3.832 million for the year to date, bringing the cumulative amount of expenditure on the project by the Company to US$10.307 million, other than acquisition costs. 

During the last period the Company continued with the Definitive Feasibility Study (DFS) on the Mphahlele project. 

The Company released an updated NI 43-101 compliant mineral resource estimate during October 2008 showing a total indicated resource of 49.5 million tonnes at 4.01g/t 5PGE+Au for 7.81Moz (4.24Moz attributable to Platmin) along with a total inferred resources of 71.9 million tonnes at 4.34g/t 5PGE+Au for 10.03Moz (5.45Moz attributable to Platmin). The revised Indicated Mineral Resource of the October Resource Estimate provides the asset base for the DFS being finalized by SRK Consulting Engineers and the mining contractor Murray and Roberts Cementation.

Work Program

In light of the fact that management have decided to focus all cash resources and management on bringing the Pilanesberg Mine into full production, this project has been put on a reduced work program for the short term, the limited primary expenditure at Mphahlele during the 2010 fiscal year is expected to be on activities related to the DFS including metallurgical test work, and revision of resource models to include mining dilution (various scenarios), mining design, geotechnical investigations and the environmental impact assessment/management program.

The Social and Labour Plan, which is a program approved by the Department of Minerals and Energy in South Africa ('DME') covering the social and economic development plan for the communities affected by the operations, was completed during August 2008 and was submitted in September 2008 to the DME, as required for the approval of the mining right.


7.3    Grootboom Project 

In the quarter ended February 28, 2009, the Company spent US$0.4 million on Grootboom and Annex Grootboom (upon which Platmin has an option to acquire the PGE rights on completion of a DFS), bringing the expenditure on the project to date to US$4.826 million. The total expenditure for the year ended February 28, 2009 was US$1.855 million. 

Boynton has completed a transaction that was previously entered into, whereby an option was granted to acquire the mining rights in respect of the Annex Grootboom property adjacent to the Grootboom Project, and Scheiding nearby the Mphahlele Project, upon completion of a BFS.

The project advanced to the DFS stage during the quarter under review which is expected to be complete in the third quarter of fiscal 2010.


Work Program

In light of the fact that management have decided to focus all cash resources and management on bringing the Pilanesberg Mine into full production, this project has been put on a reduced work program for the short term, the limited primary expenditure at Grootboom during the 2010 fiscal year is expected to be on activities related to the DFS including metallurgical test work, and revision of resource models to include mining dilution (various scenarios), mining design, geotechnical investigations and the environmental impact assessment/management program.

 

7.4    Loskop Project

Lonmin Plc is the operator of the Loskop Project and funds all exploration expenditures on the project (except for a portion of Rietfontein as mentioned below), as part of their option to acquire 50% in the joint venture. Limited expenditure has been incurred by Platmin as a result of this.

A total of approximately US$11,710 was spent by Platmin on the Loskop Project during the quarter ended February 28, 2009 and US$0.152 million for the year. Total exploration expenditures since inception on this project is US$0.706 million. 


Work Program

Lonmin Plc announced in a press release on November 18, 2008 that their management has decided, given their focus on cash management and the current state of the worldwide credit markets, to put a number of their projects, including Loskop on a reduced work program, for the short term. We anticipate that this is likely to affect the fiscal 2010 work program at Loskop.

Although work has continued during the year in order to assist in increasing our understanding of the Loskop mineralization, the mineral resources were not revised during the year.


8. Contractual Obligations 

The Company's contractual obligations are as follows:


Contractual Obligations

US$'000

Payments due by period as at February 28, 2009

Total

< 1 year

1-3 years

4-5 years

After 5 years

Operating lease

415

124

291

-

-

Employee entitlements

179

179

-

-

-

Asset Retirement Obligation (1)

17,527

-

-

-

17,527

Mining and Processing costs (2) 

448,173

101,929

173,122

173,122

-

Committed Capital Cost

123,880

62,100

19,210

13,810

28,760

Total Contractual Obligations

590,174

164,332

192,623

186,932

46,287


(1) This amount represents the gross asset retirement obligation while the amount disclosed in note 18 of the consolidated financial statements represents the discounted value.

(2) Committed mining expenses include the remaining value of the agreement with engineering firm DRA Engineering to implement the design and construction phase of the Pilanesberg Mine, the contracts with Minopex for managing the plant operations and maintenance of the Merensky and UG2 metallurgical concentrator plants, and MCC for carrying out of the opencast mining operations, as well as the commitment to purchase a 10MW diesel standby generator in order to allow for any future power shortages or disruptions to supply by the state power utility Eskom.

9. Off-Balance Sheet Arrangements

The Company has not entered into any off-balance sheet transactions.

 

10. Related Party Transactions

During the 2007 fiscal year, the Company had provided a bridging finance facility to Moepi Platinum (Pty) Ltd (previously known as Moepi Capital (Pty) Ltd) to assist the BEE party in acquiring an interest in Boynton and in the process, to consolidate the BEE interest in the Company. This loan of US$15 million, including capitalized interest, was repaid in full on October 31, 2008.


11. Proposed Transactions

The Company continues to evaluate opportunities in the market with a view to expand the current business. At the current time there are no reportable proposed transactions.


12. Black Economic Empowerment ('BEE')

Platmin has achieved the minimum 26% BEE ownership interest (required by April 30, 2014 onward) for its operating subsidiary in South Africa, Boynton, through the ownership of shares by Moepi Platinum (Proprietary) Limited, Moepi Uranium (Proprietary) Limited and Sengani Family Mining and Exploration (Proprietary) Limited (collectively, the 'Moepi Group'). The Moepi Group collectively holds approximately 27.61% of the issued and outstanding shares of Platmin's operating subsidiary Boynton. Bakgatla and Pallinghurst hold a controlling interest in Moepi Group.

Pursuant to the investors and subscription agreement described above, the Moepi Group will, by March 31, 2010, and subject to certain conditions exchange its 27.61% interest in Boynton for common shares of Platmin ('The Moepi Exchange'). The maximum number of shares to be issued is capped at 27.61% of the then issued and outstanding Platmin shares, which would be approximately 141,100,000 common shares. The Moepi Exchange is conditional upon, among other things, the approval of the TSX, of the SARB and the DME, which approvals are expected to take up to one year to obtain.

Platmin has funded a total of US$9.405 million on behalf of its BEE partners for exploration activities, by way of loan account to date. All such amounts remain on inter-company loan accounts.


13. Environmental Matters

The Company conducts exploration on its key projects and prospects subject to mineral exploration permit applications made to and issued by the DME. For each exploration program, a plan of rehabilitation is included with the application and where required the appropriate bond or funds are lodged with the relevant agent of the DME in respect of the rehabilitation work which may have to be carried out when the exploration program is completed and no further work is planned on the property. All such environmental plans or bonds are in the normal course of the business.

In respect of the Pilanesberg Mine, the DME required a rehabilitation guarantee of US$7.027 million before approving the application for a Mining Right. This guarantee has been provided by Guardrisk Insurance Company Limited ('Guardrisk') on an insurance basis, with an amount of US$0.901 million (ZAR 9 million) paid over into a separate bank account and ceded in favour of Guardrisk as collateral against the issuance of this guarantee. Ongoing contributions are made whereby the balance of the liability is funded over the remaining life of mine.

In respect of the Mphahlele Project, the DME required a rehabilitation guarantee of US$1.663 million (ZAR16.609 million) before the issuing of the Mining Right. This guarantee has been provided by Guardrisk on an insurance basis, with an amount of US$1.002 million (ZAR10 million) paid over into a separate bank account and ceded in favour of Guardrisk as collateral against the issuance of this guarantee. Ongoing contributions are made whereby the balance of the liability is funded over the remaining life of the prospecting permit.

Environmental guarantees are released by the DME on completion of the obligations in terms of the rehabilitation plans contained within either the application for the prospecting permits, or the mining right.


14. Mineral and Petroleum Resources Royalty Act, 2008 (Act no. 28 of 2008)

The South African government has enacted the Mineral and Petroleum Resources Royalty Act (the ''Royalty Act''), which imposes a royalty payable to the South African government by businesses based upon financial profits made through the transfer of mineral resources.

The legislation was passed on November 17, 2008 and was due to come into operation on May 1, 2009. During his budget speech in February 2009, the South African Minister of Finance deferred the implementation of the Royalty Act to March 1, 2010. The legislation resulting from the Royalty Act will levy a royalty for the benefit of the National Revenue Fund of the government of the Republic of South Africa based on a percentage calculated on a formula, up to a maximum of 5% on gross sales of refined mineral resources or 7% on gross sales of unrefined mineral resources.

15. Critical Accounting Estimates

The Company's significant accounting principles and methods of application are disclosed in the notes of the Company's consolidated financial statements for the year ended February 28, 2009. The following is a discussion of the critical accounting policies and estimates which management believes are important for an understanding of the Company's financial results.

'Stock Based Compensation': The Company recognizes compensation expense when stock options are granted. The fair value of options granted has been estimated at the date of grant using the Black Scholes option pricing model with the following weighted average assumptions:


Date issued

Risk free interest rate

Expected dividend yield

Expected volatility

Expected option life

September 18, 2006

3.88%

Nil

100%

3.5 years

June 1, 2007

4.50%

Nil

66%

3 years

August 28, 2007

4.50%

Nil

66%

3 years

November 7, 2007

4.24%

Nil

65%

3 years

January 14, 2008

3.50%

Nil

54%

3 years

January 21, 2008

3.42%

Nil

52%

3 years

April 25, 2008

2.92%

Nil

62%

3 years

June 23, 2008

3.35%

Nil

62%

3 years

June 30, 2008

3.35%

Nil

57%

3 years

September 23, 2008

3.03%

Nil

64%

3 years

September 30, 2008

3.03%

Nil

73%

3 years


For purposes of disclosure, the estimated fair value of the options is expensed over the options' vesting periods. The full impact of the expense relating to all stock options granted to employees has been included in the consolidated statement of operations, deficit and comprehensive loss, for the years ended February 28, 2009 and February 29, 2008.

 'Asset Retirement Obligations': Future costs to retire an asset including dismantling, remediation and ongoing treatment and monitoring of the site are recognised and recorded as a liability at fair value. The liability is accreted over time through periodic charges to earnings. The fair value of the costs is capitalised as part of the assets' carrying value and amortized over the assets' useful lives.

'Exploration and development costs': The costs relating to the acquisition, exploration and development of mineral properties, less recoveries, are capitalized by property until the commencement of commercial production. If commercially profitable ore reserves are developed, capitalized costs of the related project are reclassified as mining assets and amortized on a unit of production method. If it is determined that capitalized acquisition, exploration and development costs are not recoverable over the estimated life of the property, or the project is sold or abandoned, the project is written down to its net realizable value.

The recoverability of amounts recorded for exploration and development costs is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development, and future profitable production or proceeds from the disposition thereof. The amounts shown as exploration and development costs do not necessarily represent present or future values.

On January 1, 2008, the Company adopted three new accounting standards that were issued by the Canadian Institute of Chartered Accountants (CICA): 

  • Handbook Section 1535, Capital Disclosures; 

  • Handbook Section 3862, Financial Instruments - Disclosure; and

  • Handbook Section 3863 Financial Instruments - Presentation.

Capital Disclosures

Section 1535 specifies the disclosure of: (i) an entity's objectives, policies and processes for managing capital; (ii) quantitative data about what the entity regards as capital; (iii) whether the entity has complied with any capital requirements; and (iv) if it has not complied, the consequences of such non-compliance.

Financial Instruments Disclosure and Presentation

The new Sections 3862 and 3863 replace Handbook Section 3861, 'Financial Instruments - Disclosure and Presentation,' revising and enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections place increased emphasis on disclosures about the nature and extent of risks arising from financial instruments and how the entity manages those risks.

The impact of these new standards on the Company's disclosure in the consolidated financial statements can be seen in note 4 of the consolidated financial statements.

In January 2009, the Emerging Issues Committee of the CICA issued EIC-173, 'Credit Risk and the Fair Value of Financial Assets and Financial Liabilities', which applies to interim and annual financial statements for periods ending on or after January 20, 2009. The Company has evaluated the new section and determined that adoption of these new requirements will have no impact on the Company's financial statements.

On March 27, 2009, the Emerging Issues Committee of the CICA approved an abstract EIC-174, 'Mining Exploration Costs', which provides guidance on capitalization of exploration costs related to mining properties in particular and on impairment of long-lived assets in general. The Company has applied this new abstract for the year ended February 28, 2009 and there was no significant impact on the financial statements as a result of applying this abstract.  

Future Accounting Changes - International Financial Reporting Standards ('IFRS')

In January 2006, the CICA's Accounting Standards Board ('AcSB') formally adopted the strategy of replacing Canadian GAAP with IFRS for Canadian enterprises with public accountability. The current conversion timetable calls for financial reporting under IFRS for accounting periods commencing on or after January 1, 2011. On February 13, 2008, the AcSB confirmed that the use of IFRS will be required in 2011 for publicly accountable profit-oriented enterprises. 

IFRS will be required for Platmin's interim and annual financial statements for the fiscal year beginning January 1, 2011 however, the Company is in the process of applying for early adoption of IFRS. Should this application be successful, Platmin's interim and annual financial statements for the fiscal year ending February 28, 2010, will be prepared in accordance with IFRS.


16. Financial Instrument and Other Instruments

The Company has the following financial instruments: cash and cash equivalents, other receivables, accounts payable, accrued liabilities and a bridge loan facility. These instruments are short-term financial instruments whose fair value approximates their carrying value given that their maturity period is short.


17. Outstanding Share Data

As at February 28, 2009, the Company had 370,002,800 issued and outstanding common shares.

As at February 28, 2009, there were 2,745,466 outstanding options exercisable for common shares and a further 1,886,267 unvested share options, which, if exercised, would result in the issue of an additional 1,886,267 common shares. The total options outstanding at February 28, 2009, totalled 4,631,733 options.

As at May 27, 2009, the Company had 445,018,352 issued and outstanding common shares.

18. Risks and Uncertainties

The Company is in the business of exploration and development of mineral properties with the objective of commercial production of the properties directly or through third parties. There are numerous risks associated with this business and specific risks with regards to the South African mining environment. 

Readers are urged to review the section titled ''Risk Factors'' appearing in Platmin's current AIF for the financial year ended February 28, 2009, which can be viewed at www.sedar.com.


19. Internal control over financial reporting

Management has evaluated or caused to be evaluated, the effectiveness of the Company's disclosure controls and procedures and the internal control over financial reporting and concluded that the Company's disclosure and internal control over financial reporting was effective as of the end of the financial year ended February 28, 2009. Platmin has identified no material weakness in the design of its internal controls over financial reporting. There has been no change in Platmin's internal controls over financing reporting since its interim MD&A for the period ending November 30, 2008, that has materially affected, or is reasonably likely to materially affect, Platmin's internal controls over financial reporting.




Platmin Limited

(A development stage company)

Consolidated Balance Sheet

(Expressed in U.S. dollars, unless otherwise stated)



As at


Notes

February 28,  2009

$ 000

February 29, 2008

$ 000

ASSETS




Current assets




Cash and cash equivalents


88,883

88,188

Restricted cash

6

40,685

4,408

Loans due from related parties

5

35

14,680

Receivables


8,500

3,838

Inventories

7

7,962

-

Prepaid expenses


6

59



146,071

111,173

Property, plant and equipment

9

214,705

24,425

Rehabilitation investment


879

544

Intangible asset

11

6,162

-

Mineral rights

12

3,132

3,132

Mineral exploration property acquisition costs

13

4,619

4,619

Deferred exploration expenses

13

34,062

27,132



409,630

171,025

LIABILITIES




Current liabilities




Accounts payable


23,359

3,043

Accrued liabilities


215

118

Bridge loan facility

15

38,752

-



62,326

3,161

Loan payable

17

2,121

1,388

Asset retirement obligation

18

12,015

1,461



76,462

6,010

SHAREHOLDERS' EQUITY




Common shares

14

366,180

192,116

Contributed surplus

14

7,329

3,068

Warrants

15

846

-

Deficit


(41,187)

(30,169)



333,168

165,015



409,630

171,025

NATURE OF OPERATIONS AND GOING CONCERN


1



CONTINGENCIES AND COMMITMENTS

20




The accompanying notes are an integral part of the consolidated financial statements



Platmin Limited

(A development stage company)

Consolidated Statement of Operations, Comprehensive Loss and Deficit

(Expressed in U.S. dollars, unless otherwise stated) 




For the years ended



February 28,

2009

February 29,

2008


Notes

$ 000

$ 000

Administrative expenses




Management and consulting fees


17,304

9,044

Travelling and promotion


640

644

Rental


209

186

Office


1,891

926

Professional fees


986

912

Interest and penalties


6,741

129

Amortization of property, plant and equipment

9

315

78

Foreign exchange (gain)/loss


(8,703)

377



(19,383)

(12,296)

Research and development costs


-

82

Deferred exploration costs written off


-

(9)



(19,383)

(12,223)

Dilution gain on sale of shares in subsidiary


4,549

-

Interest income


3,816

3,143

Loss and comprehensive loss for the period


(11,018)

(9,080)

Deficit - Beginning of period


(30,169)

(21,089)

Deficit - End of period


(41,187)

(30,169)





Basic and diluted loss per common share

10

0.07

0.09





Weighted average number of common shares outstanding ('000)


163,932

96,535


The accompanying notes are an integral part of the consolidated financial statements



Platmin Limited

(A development stage company) 

Consolidated Statement of Changes in Shareholders' Equity

(Expressed in U.S. dollars, unless otherwise stated)




As at



February 28,

2009

February 29,

2008



$ 000

$ 000

Share capital




Balance at the beginning of the period


192,116

99,542

Shares issued


174,037

75,069

Conversion of stock options


-

15,525

Fair value of stock options


27

1,980

Balance at the end of the period

 

366,180

192,116





Deficit




Balance at the beginning of the period


(30,169)

(21,089)

Loss for the period


(11,018)

(9,080)

Balance at the end of the period

 

(41.187)

(30,169)





Contributed surplus




Balance at the beginning of the period


3,068

2,480

Stock based compensation


4,288

2,568

Transferred to share capital on exercise of stock options

(27)

(1,980)

Balance at the end of the period

 

7,329

3,068





Warrants




Balance at the beginning of the period


-

-

Fair value of warrants issued


846

-

Balance at the end of the period

 

846

-


The accompanying notes are an integral part of the consolidated financial statements



Platmin Limited

(A development stage company)

Consolidated Statement of Cashflows

(Expressed in U.S. dollars, unless otherwise stated)


 


For the years ended



February 28, 

2009

February 29,

2008


Notes

$ 000

$ 000

Cash provided by/(used in)




Operating activities




Loss for the year


(11,018)

(9,080)

Non-cash items




Accretion


184

-

Amortization of property, plant and equipment


315

78

Loss on sale of property, plant and equipment


11

7

Stock-based compensation expense


4,288

2,569

Foreign exchange loss


(8,703)

377

Dilution gain on sale of shares in subsidiary


(4,549)

-

Interest income


(3,816)

-

Finance cost


6,557

-

Changes in non-cash working capital items 

8

7,842

(3,626)



(8,889)

(9,675)

Investing activities




Purchase of property, plant and equipment


(185,716)

(22,773)

Proceeds from disposal of property, plant and equipment

20

15

Increase in restricted cash


(36,277)

(4,408)

Increase in rehabilitation investment


(335)

(544)

Increase in mineral rights


-

(2,024)

Increase in deferred exploration expenses


(6,930)

(5,629)



(229,238)

(35,363)

Financing activities




Increase in loans payable


34,321

729

Financing of shares in subsidiary


4,549

-

Decrease/(Increase) in loans receivable


14,645

(1,128)

Issue of common shares


174,037

90,594



227,552

90,195

Net increase in cash and cash equivalents during the period

(10,575)

45,157

Effect of exchange rate changes on non-monetary items


11,270

(377)

Cash and cash equivalents at the beginning of the period


88,188

43,408

Cash and cash equivalents at the end of the period


88,883

88,188





Supplementary cash flow information

8




The accompanying notes are an integral part of the consolidated financial statements



Platmin Limited

(A development stage company)

Notes to the Consolidated Financial Statements

 (Expressed in U.S. dollars, unless otherwise stated)

1. Nature of operations and going concern

Platmin Limited ('PPN' or the 'Company') is incorporated under the Canada Business Corporation Act. PPN is a development stage natural resources company engaged in mining, and exploration of Platinum Group Elements ('PGE') properties in the Republic of South Africa.

These consolidated financial statements have been prepared using Canadian generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due.

For the year ended February 28, 2009 the Company incurred a loss of approximately US$11.018 million and had an accumulated deficit of approximately US$41.187 million. There are approximately US$60.815 million in existing commitments for ramp-up to steady state production at the Pilanesberg mine as at February 28, 2009. As at February 28, 2009, the Company had no source of operating cash flows and is dependent on the successful development and profitable operation of the Pilanesberg Mine. Such circumstances may cast significant doubt as to the ability of the Company to meet its obligations as they come due and accordingly the appropriateness of the use of the accounting principles applicable to a going concern.

The Company has entered into an investors and subscription agreement, whereby the Pallinghurst Investor Consortium  subscribed for 184,886,627 Common Shares at a purchase price of C$0.85 (or ZAR 6.80) per Common Share based on the exchange rate on December 8, 2008. This transaction was concluded and the cash amount of US$125 million was received on December 19, 2008.

Pursuant to this agreement, Platmin issued 73,529,411 Common Shares to the Pallinghurst Investor Consortium at a per share purchase price of ZAR 6.80 (C$0.85 based on the exchange rate on December 8, 2008) for a total purchase consideration of ZAR 500 million (US$49.036 million). This transaction was concluded and cash amount of ZAR 382 million (US$37.359 million) was received on February 18, 2009 and the remaining ZAR 118 million (US$11.677 million) was received on February 25, 2009.

The Company had US$88.883 million in cash and cash equivalents at February 28, 2009 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 the repayment of the bridge loan facility, and the revenue streams forecasted 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 balance sheet classifications, which could be material, may be necessary.

2. Basis of presentation and significant accounting policies

The consolidated financial statements of the Company have been prepared by management in accordance with Canadian generally accepted accounting principles ('GAAP'). The significant accounting policies followed by the Company are as follows:

2.1 Principles of consolidation

These consolidated financial statements include the accounts of the Company and its subsidiaries over which control is exercised. Where shareholding is below 50%, but control is exercised, the entity is consolidated. 

Inter-company balances and transactions have been eliminated.

The following entities have been consolidated due to the Company's control of the Board of Directors of the entities or percentage ownership:


February 28,

2009

%

February 29,

2008

%

Platmin Resources Ltd.

100.0

100.0

Boynton Investments (Pty) Ltd. ('Boynton')

72.4

72.4

Boynton Platinum (Pty) Ltd.

 72.4

72.4

Boynton Platinum (Pty) Ltd. (East)

72.4

72.4

Born Free Investments 144 (Pty) Ltd.

72.4

72.4

Born Free Investments 330 (Pty )Ltd.

35.5

35.5

Bubesi Investments (Pty) Ltd. ('Bubesi')

72.4

72.4

Crowned Cormorant Investments 13 (Pty) Ltd. 

72.4

72.4

Crowned Cormorant Investments 16 (Pty) Ltd. 

72.4

72.4

Dream World Investments 226 (Pty) Ltd.

35.5

35.5

Dream World Investments 249 (Pty) Ltd.

72.4

72.4

Eagle Creek Investments 55 (Pty) Ltd.

72.4

72.4

Eagle Creek Investments 86 (Pty) Ltd.

72.4

72.4

Intrax Investments 255 (Pty) Ltd.

72.4

72.4

Isandlwana Mining and Exploration (Pty) Ltd.

72.4

72.4

Keenan Investments (Pty) Ltd.

72.4

72.4

Mahube Mining (Pty) Ltd. ('Mahube') *

57.2

57.2

Midnight Masquerade Properties 170 (Pty) Ltd.

72.4

72.4

New Line Investments 77 (Pty) Ltd.

72.4

72.4

Pilanesberg Platinum Mines (Pty) Ltd.

72.4

72.4

Private Preview Investments 39 (Pty) Ltd. ('Private Preview')

72.4

72.4

Sengani Family Mining and Exploration (Pty) Ltd. ('Sengani')

35.5

35.5

Setseka Mining (Pty) Ltd. ('Setseka')

37.9

39.2

Taung Minerals (Pty) Ltd. ('Taung Minerals')

72.4

72.4

Taung Platinum Exploration (Pty) Ltd. ('Taung Platinum')

29.0

37.9

Ubkhosi Mining and Exploration (Pty) Ltd.

72.4

72.4

Versatex Trading 346 (Pty) Ltd.

72.4

72.4

West Dunes Properties 115 (Pty) Ltd.

72.4

72.4

5 Brothers Mining (Pty) Ltd.

72.4

72.4

8 Mile Investments49 (Pty) Ltd.

72.4

72.4

* - Which further consolidates Tameng Mining and Exploration (Pty) Ltd ('Tameng') which is 100% owned by  

Mahube in each period presented.


2.2 Accounting estimates

The preparation of financial statements in accordance with Canadian GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes to the consolidated financial statements. These estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future.

Significant estimates include those related to the recoverability of the carrying value of mineral exploration properties and deferred exploration expenses, the fair value estimates of options issued, the fair value of asset retirement obligations and contingent liabilities. Actual results may differ from those estimates.

2.3 Cash and cash equivalents

Cash and cash equivalents include cash and term deposits with an original maturity of three months or less. The Company invests cash in interest-bearing instruments with high credit quality financial institutions.

2.4 Foreign currency translations

Monetary assets and liabilities of integrated foreign operations are translated to U.S. dollars at the exchange rate in effect at the balance sheet date, whereas other assets and liabilities are translated at exchange rates in effect at the transaction dates. Revenue and expense items are translated at the average rate in effect during the year, with the exception of amortization, which is translated at the historical rate.

Gains and losses are included in the consolidated statements of operations and deficit for the year. Subsidiaries have no means of self-support and, as such, they are not considered to be self-sustaining operations.

2.5 Property, plant and equipment

Property, plant and equipment and other non-current assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Where circumstances indicate that an impairment may exist, an impairment test is performed comparing the undiscounted cash flows of the asset to the carrying value. Where the carrying value is greater than the undiscounted cash flows, an impairment loss is recognized for the amount by which the carrying amount of the asset exceeds their fair value. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. 

Property, plant and equipment are stated at historical cost less accumulated amortization. 

Amortization is calculated on the straight-line method to write off the cost of the assets to their residual values over their estimated useful lives. The amortization rates applicable to each category of property, plant and equipment are as follows:


Useful life

(years)

Vehicles

5

Computer equipment

3

Computer software

2

Office equipment

6

Furniture and fittings

6

Other equipment

5

Leasehold improvements

5

Plant construction

Life of mine


2.6 Inventories

Inventories of broken ore and concentrate are physically measured or estimated and valued at the lower of cost and net realizable value. Cost represents weighted average cost and includes direct costs and an appropriate portion of fixed and variable overhead expenditure, including depreciation and amortization.

2.7 Mineral exploration properties and deferred exploration expenses

Explorationevaluation and developments expenditureare accumulated and accounted for in each separate area of interest or mineral resource. This includes attributed direct general and administrative support costs.

The Company follows the practice of capitalizing all costs related to acquisition, exploration and development of mineral exploration properties until such time as mineral properties are put into commercial production, sold or become impaired. If commercial production commences, these capitalized costs will be amortized prospectively on a units-of-production basis.

Management of the Company reviews the net carrying value of each mineral property when event or changes in circumstances indicate that the carrying value may not be recoverable. Where information is available and conditions suggest possible impairment, estimated future net undiscounted cash flows from each property are calculated using estimated future prices, reserves, and operating, capital and reclamation costs on an undiscounted basis. If the carrying value of the property exceeds the estimated future net undiscounted cash flows, the property will be written down to fair value. Where estimates of future net undiscounted cash flows are not available and where conditions suggest possible impairment, management assesses whether the carrying value can be recovered. This assessment may be estimated by use of quantifiable evidence of a geological resource or reserve or the Company's assessment of its ability to sell the property for an amount greater than the carrying value. If management estimates that the carrying value of the property cannot be recovered, the property will be written down to fair value.

Management, directors and technical advisors review the merits of each of the Company's property interests to assess whether the property merits further exploration and development expenditure and whether the carrying value of the property is greater than the future expected return from that property. Empirical evidence such as geochemical analysis, drilling results, assays, mapping and field observation are the primary evidence that is assessed against other factors such as commodity markets, exchange rates, political risk and closeness to other known operations when making decision on impairment.

The amounts shown for mineral properties represent costs incurred to date net of write downs, and are not intended to reflect present or future values. Government assistance, mining duty credits and optioned contributions are applied against the deferred exploration expenses.

2.8 Income taxes

The Company uses the liability method of accounting for income taxes. Under this method, future income tax assets and liabilities are determined according to differences between the carrying amounts and income tax bases of assets and liabilities. They are measured by applying enacted or substantively enacted income tax rates and laws at the date of the financial statements for the years in which the temporary differences are expected to reverse. The Company establishes a valuation allowance against the future income tax assets if, based on available information, it is more likely than not that some or all of the future income tax assets will not be realized. 

2.Stock-based compensation 

The Company has a stock-based compensation plan, as described in note 16. The Company recognizes the fair value of stock options granted and vested as stock-based compensation expense in the statement of operations and deficit with a corresponding increase to contributed surplus. All options are granted at the closing market price on the date of issuance.

The fair value of stock options granted is estimated using the Black Scholes option pricing model. When holders exercise their options, any consideration received and any contributed surplus related to those options is credited to common shares.


2.10 Asset retirement obligations

Future costs to retire an asset including dismantling, remediation and ongoing treatment and monitoring of the site are recognised and recorded as a liability at fair value in the accounting period in which the legal obligation arising from the disturbance occurs. The liability is accreted over time through periodic charges to earnings. The fair value of the costs is capitalised as part of the assets' carrying value and amortised over the assets' useful lives.

2.11 Research and development costs

Research costs are expensed in the year incurred. Development costs are expensed in the year incurred, unless the Company believes a development project meets Canadian GAAP criteria for deferral. To date, no development costs have been deferred.

2.12 Funding of Black Economic Empowerment ('BEE') partners

Platmin, through its subsidiaries, has historically funded the cash requirements of its minority BEE partners in its subsidiaries under a shareholder or joint venture agreement. In accordance with the relevant shareholder or joint venture agreements, contribution to funding by way of cash calls are in the first instance, booked to the loan account between the joint venture entity and each shareholder contributing to it. The right, but not the obligation, exists for shareholders in each joint venture entity who contribute their pro-rata portion to further contribute pro-rata to any shortfall in terms of a cash call not met by all shareholders in the joint venture entity.

Non-funding shareholders could then have their interests as shareholders recalculated which effectively dilutes the equity interest of a non-funding shareholder. Platmin's minority BEE partners have not historically been diluted on the basis that such funding has been provided on an inter-company loan, rather than equity, basis. Platmin's minority BEE partners will be entitled to future earnings based on their respective ownership of shares, but only once these inter-company loan accounts plus interest have been repaid.

2.13 New accounting changes

On January 1, 2008, the Company adopted three new accounting standards that were issued by the Canadian Institute of Chartered Accountants (CICA): Handbook Section 1535, Capital Disclosures, Handbook Section 3862, Financial Instruments - Disclosure, Handbook Section 3863 Financial Instruments - Presentation.

Capital Disclosures

Section 1535 specifies the disclosure of: (i) an entity's objectives, policies and processes for managing capital; (ii) quantitative data about what the entity regards as capital; (iii) whether the entity has complied with any capital requirements; and (iv) if it has not complied, the consequences of such non-compliance.

Financial Instruments Disclosure and Presentation

The new Sections 3862 and 3863 replace Handbook Section 3861, 'Financial Instruments - Disclosure and Presentation,' revising and enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections place increased emphasis on disclosures about the nature and extent of risks arising from financial instruments and how the entity manages those risks.

In January 2009, the Emerging Issues Committee of the CICA issued EIC-173, 'Credit Risk and the Fair Value
of Financial Assets and Financial Liabilities', which applies to interim and annual financial statements for

periods ending on or after January 20, 2009. The Company has evaluated the new section and determined that adoption of these new requirements will have no impact on the Company's financial statements.

On March 27, 2009, the Emerging Issues Committee of the CICA approved an abstract EIC-174, 'Mining
Exploration Costs', which provides guidance on capitalization of exploration costs related to mining properties in particular and on impairment of long-lived assets in general. The Company has applied this new abstract for the year ended February 28, 2009 and there was no significant impact on the financial statements as a result of applying this abstract.

2.14 Future accounting changes 

International Financial Reporting Standards ('IFRS')

In January 2006, the CICA's Accounting Standards Board ('AcSB') formally adopted the strategy of replacing Canadian GAAP with IFRS for Canadian enterprises with public accountability. The current conversion timetable calls for financial reporting under IFRS for accounting periods commencing on or after January 1, 2011. On February 13, 2008, the AcSB confirmed that the use of IFRS will be required in 2011 for publicly accountable profit-oriented enterprises. IFRS will be required for Platmin's interim and annual financial statements for the fiscal year beginning January 1, 2011 however, the Company is in the process of applying for early adoption of IFRS. Should this application be successful, Platmin's interim and annual financial statements for the fiscal year ending February 28, 2010, will be prepared in accordance with IFRS. 

While the Company has begun assessing the impact of the adoption of IFRS on its financial statements, the financial reporting impact of the transition to IFRS cannot be reasonably estimated at this time.

3. Capital risk management

The Company's objective when managing capital is to maintain adequate levels of funding to support operations at the Pilanesberg Mine, to continue necessary exploration activities in South Africa and to maintain corporate and administrative functions.

Funds are primarily secured through a combination of equity capital raised and external debt. There can be no assurances that the Company will be able to continue raising equity capital and external debt in this manner.

The Company invests all capital that is surplus to its immediate needs in short-term, liquid and highly rated financial instruments, such as cash and other short-term guaranteed deposits, all held with major financial institutions in the Republic of South Africa and the United Kingdom.


4. Financial risk management 

The Company's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Company.

The Company uses various methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and aging analysis for credit risk.

Risk management is carried out by management. The Company uses various methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and aging analysis for credit risk.

Risk management is carried out by management.

Market risk

Foreign exchange risk

The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the South African Rand (ZAR). Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company's functional currency. The Company's risk management policy is to review its exposure to non-US dollar forecast operating costs on a case by case basis. The risk is measured using sensitivity analysis and cash flow forecasting. 

The carrying amount of the Company's foreign currency denominated monetary assets and liabilities at the reporting date is as follows:


Assets

US$'000

Liabilities

US$'000

Canadian Dollars

99

-

Euros

58

-

Pounds

12

-

South African Rand

72,331

55,906


72,500

55,906


Sensitivity

During the fiscal year, the US Dollar had strengthened on average by 41% against the South African Rand. Based on the financial instruments held at February 28, 2009, had the US Dollar strengthened/weakened by another 10% against the South African Rand with all other variables held constant, the Company's loss for the year would have been US$1.508 million lower/higher as a result of foreign exchange gains/losses on translation of non-US Dollar denominated financial instruments as detailed above.

Interest rate risk

The Company's main interest rate risk arises from variable-rate short-term debt and fixed-rate long-term debt. The Company's risk management policy is to review its exposure to interest rates on a case by case basis. Future changes in market interest rates would affect the interest payments on the Company's variable-rate short-term debt.

Sensitivity

At February 28, 2009, if the ZAR JIBAR had increased/decreased by 100 basis points from the year-end rates with all other variables held constant, the Company's loss for the year would have been US$0.291 million lower/higher as a result of lower/higher interest expense from the variable-rate short-term debt. Equity would have been US$0.291 million lower/higher has a result of interest expense on the variable-rate short-term debt.

The Company has not hedged or mitigated its exposure to interest rate risk.

Summarized sensitivity analysis

The following table summarizes the sensitivity of the Company's financial assets and financial liabilities to foreign exchange risk and interest rate risk:


February 28, 2009


Foreign exchange risk

Interest rate risk



-10%

+10%

-100 bps

+100 bps


Carrying amount

$'000

Profit / (Loss)

$'000

Equity

$'000

Profit / (Loss)

$'000

Equity

$'000

Profit / (Loss)

$'000

Equity

$'000

Profit / (Loss)

$'000

Equity

$'000

Financial assets










Cash & cash equivalents

26,897

2,445

2,445

(2,445)

(2,445)

-

-

-

-

Restricted cash

40,685

3,699

3,699

(3,699)

(3,699)

-

-

-

-

Receivables

4,918

447

447

(447)

(447)

-

-

-

-











Financial liabilities










Accounts payable

15,033

(1,367)

(1,367)

1,367

1,367

-

-

-

-

Long term debt

40,873

(3,716)

(3,716)

3,716

3,716

291

291

(291)

(291)

Total increase / (decrease)


1,508

1,508

(1,508)

(1,508)

291

291

(291)

(291)

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions as well as credit exposure to outstanding receivables.

The Company has policies in place to ensure that sales of products are made to customers with an appropriate credit rating. The amount of credit risk to which the Company is exposed to by means of customers defaulting on their contractual obligation is insignificant due to the limited amount of other receivables.

Cash and cash equivalents are only deposited with high credit financial institutions.

Liquidity risk

Prudent liquidity risk management implies maintaining at all times sufficient cash, liquid investments and committed credit facilities to meet the Company's commitments as they arise. 

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facility by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.


5. Loans due from related parties



February 28

2009

$ 000

February 29

2008

$ 000

Moepi Platinum (Pty) Ltd 


-

14,647

Tafida Investments (Pty) Ltd


2

3

Defacto Investments (Pty) Ltd


33

30



35

14,680

The above entities are related to the Company through contractual arrangements in relation to potential prospecting permit applications.

These loans, except as identified below, bear no interest and have no fixed terms of repayment.

The Moepi Platinum (Pty) Ltd ('Moepi') loan relates to loan agreement signed between, previously called Moepi Capital (Pty) Ltd, and the Company during the 2007 fiscal year. The loan bore interest at LIBOR. This loan was repaid in full on October 31, 2008.

6. Restricted cash 

Restricted cash consists of the following:



February 28

2009

$ 000

February 29

2008

$ 000

Cash collateral


38,841

-

Rehabilitation guarantees


1,617

681

Letters of credit issued


227

2,269

ESKOM guarantee


-

1,458



40,685

4,408


Cash collateral

Platmin has provided cash collateral to Standard Bank of ZAR387.800 million as security against the bridge loan facility (as disclosed in note 15), and upon which the Company earns interest at JIBAR plus 0.1%. Interest on the loan is charged at JIBAR plus 0.5% and the net finance cost on the loan is therefore 0.4%. 

Rehabilitation guarantees

The rehabilitation guarantee relates primarily to the Mphahlele Project. The Department of Minerals and Energy ('DME') required a rehabilitation guarantee of US$1.663 million (ZAR16.609 million) before the issuing of the mining right. This guarantee has been provided by Guardrisk on an insurance basis, with an amount of US$1.002 million (ZAR10 million) paid over into a separate bank account controlled by the company and ceded in favor of Guardrisk as collateral against the issuance of this guarantee. 

An amount of US$0.585 million (ZAR5.841 million) has been ceded to the DME for a number of guarantees in respect of prospecting rights.


Letters of credit

On November 25, 2008 a letter of credit was provided to Thermo Gamma-Metrics (Pty) Ltd, a company registered in the Commonwealth of Australia, for the Pilanesberg Mine. The letter of credit was issued by Reicmans S.A. on behalf of Investec Bank Limited and Pilanesberg Platinum Mines (Pty) Ltd deposited an amount of US$400,621 (ZAR 4,000,000) in an interest bearing account at Investec Bank Limited. Pilanesberg Platinum Mines (Pty) Ltd has also taken forward cover on the letter of credit to hedge the foreign currency risk. At February 28, 2009 interest earned on the deposit and payments made to Thermo Gamma-Metrics (Pty) Ltd resulted in a remaining balance of US$0.227 million. 

ESKOM guarantee 

On June 17, 2008 a guarantee of US$8.431 million (ZAR84.987 million), underwritten by an insurance backed guarantee issued by Lombard Insurance Company Limited ('Lombard Insurance') was provided to ESKOM to order critical long lead time material for the construction of the electrical substation at the Pilanesberg Platinum Mine. Lombard Insurance did not require any cash collateral thereon. The guarantee issued by Lombard Insurance replaces the guarantee of US$1.458 million (ZAR10.922 million) previously issued by ABSA Bank Limited, which was a money backed guarantee. 

The restricted cash is accounted for at fair value.

7. Inventories



February 28

2009

$ 000

February 29

2008

$ 000

Ore stock piles - at net realisable value


7,962  

 -


8. Supplementary cash flow information

Changes in non-cash working capital items are as follows:



February 28

2009

$ 000

February 29

2008

$ 000

Receivables


(4,662)

(3,420)

Prepaid expenses


53

9

Inventory (Ore stockpile)


(7,962)

-

Accounts payable


20,316

(178)

Accrued liabilities


97

(37)



7,842

(3,626)



9. Property, plant and equipment 

As at February 28, 2009

Cost 

$ 000 

Accumulated

amortization

$ 000

Net book

value

$ 000

Vehicles

432

144

289

Computer equipment

617

226

391

Computer software

505

224

281

Office equipment

66

21

45

Furniture and fittings

214

51

163

Other equipment

42

14

27

Leasehold improvements

90

33

57

Plant construction

212,535

-

212,535

Land and buildings

917

-

917


215,418

713

214,705





As at February 29, 2008




Vehicles

355

140

215

Computer equipment

188

138

50

Computer software

90

68

22

Office equipment

39

16

23

Furniture and fittings

102

28

74

Other equipment

17

13

4

Leasehold improvements

87

15

72

Plant construction

23,965

-

23,965

Land and buildings

-

-

-


24,843

418

24,425


The carrying amounts of property, plant and equipment can be reconciled as follows:


Carrying value as at February 29 2008
$ 000

Additions for the year
$ 000

Disposals for the year
$ 000

Amortization for the year
$ 000

Carrying value as at February 28 2009
$ 000

Vehicles

215

127

(30)

(23)

289

Computer equipment

50

431

-

(88)

391

Computer software

22

414

-

(156)

281

Office equipment

23

28

(1)

(6)

45

Furniture and fittings

74

112

-

(23)

163

Other equipment

4

24

-

(1)

27

Leasehold improvements

72

3

-

(18)

57

Plant construction

23,965

188,570

-

-

212,535

Land and buildings

-

917

-

-

917


24,425

190,626

(31)

(315)

214,705

 

10. Loss per share

Basic loss per share is calculated by dividing the net loss attributable to shareholders by the weighted average number of common shares outstanding during the year.



For the years ended



February 28

2009

$ 000

February 29

2008

$ 000

Loss attributable to shareholders ($'000)


11,018

9,080

Weighted average number of common shares outstanding ('000)


163,932

96,535

Basic and diluted loss per common share in US$ per share


0.07

0.09


As the Company is reporting a loss for all years presented and all potential issuable common shares are anti-dilutive, the diluted loss per share equals basic loss per share.

  

11. Intangible asset



February 28

2009

$ 000

February 29

2008

$ 000

Water right at cost


6,162

 -


Pilanesberg Platinum Mines entered into an agreement with The Board of Magalies Water and other parties to build a water pipeline and related infrastructure from the Vaalkop Water Treatment Works to the mine located at Tuschenkomst. Upon completion, the ownership of the water pipeline and related infrastructure will remain with The Board of Magalies Water. 

The cost of building the water pipeline and related infrastructure will ensure water supply of 9 Mega litres per day to the mine, for usage in the plant.

12. Mineral rights



February 28

2009

$ 000

February 29

2008

$ 000

Mineral rights at cost


3,132

3,132

13. Deferred exploration expenses



February 28

2009

$ 000

February 29

2008

$ 000

Balance brought forward


27,132

21,503

Additions


6,930

5,629

Balance carried forward


34,062

27,132



The acquisition cost and deferred exploration expenses by project are set out as follows:



February 28, 2009

February 29, 2008


Acquisition

cost

$ 000

Deferred

exploration

expenses

$ 000

Acquisition

cost

$ 000

Deferred

exploration

expenses

$ 000

Pilanesberg project





Tuschenkomst

25

9,465

25

8,853

Witkleifontein

-

1,949

-

1,869

Rooderand

25

1,412

25

1,409

Ruighoek

-

3,537

-

3,435

Vogelstruisnek

-

115

-

82

Bakhoutrantje

-

53

-

48

Palmietfontein

-

542

-

532

Moloana area

-

81

-

80

Mphahlele project

3,055

10,307

3,055

6,475

Grootboom project





Grootboom

1,514

3,645

1,514

2,067

Grootboom Tailings

-

151

-

94

Annex Grootboom

-

694

-

505

Loskop project





Loskop 2

-

475

-

404

Rietfontein

-

272

-

192

Kameeldoorn

-

3

-

-

De Wagendrift

-

3

-

-

Other projects





Golden Valley

-

330

-

291

Oorlogsfontein

-

84

-

84

Nooitgezien & Goedverwacht

-

36

-

7

Vogelenzang

-

81

-

78

Apiesboomen

-

108

-

79

Woolrich areas

-

197

-

183

Chrome

-

44

-

-

Strydfontein

-

29

-

15

Veeplaats

-

16

-

15

Defacto area

-

19

-

18

Scheiding

-

229

-

226

Bashoek

-

37

-

15

Tweelaagte, Diamant & Kleingenoeg

-

148

-

76


4,619

34,062

4,619

27,132




13.1 Pilanesberg project

The Company holds a beneficial interest of approximately 72.4% in the Pilanesberg Mine through its subsidiary, Boynton. In turn the Pilanesberg Platinum Mine holds the following new order mining rights and prospecting rights: 

  • a single new order Mining Right over the farms Tuschenkomst, Witkleifontein, Rooderand (Ptn 3) and Ruighoek (Ptns RE 1, 2, 3, 4, 6, 9, 13 and 15);

  • new order Prospecting Rights over Tuschenkomst for chrome and over Ruighoek for the areas not included in the mining right. The new order prospecting right over Ruighoek excludes Ruighoek Ptn's 5, 7, 8 and RE.

13.2 Mphahlele project

The Company currently holds a 57.2% beneficial interest in the Mphahlele project through its subsidiaries Mahube Mining (Pty) Ltd ('Mahube') and Tameng Mining and Exploration (Pty) Ltd ('Tameng'). Tameng has entered into a notarial prospecting contract with the South African Government which granted to Tameng the exclusive right to prospect on the property Locatie van Mphahlele 457KS, constituting the Mphahlele project. The Mining Right application for the Mphahlele project was submitted to and accepted by the DME in December 2007.

13.3 Grootboom project

The Grootboom Project consists of the farms Grootboom 336 KT, Annex Grootboom 335KT and the Grootboom Tailings Dam located on Grootboom 336 KT. The Company, through its subsidiary Boynton, holds a 72.4% beneficial interest in the farm Grootboom 336 KT and the PGE's and base metals arising from this farm currently contained in the Grootboom Tailings Dam. Boynton holds a New Order Prospecting Right over the farm Grootboom 336 KT for all minerals excluding chrome. 

In addition through an agreement with BHP Billiton, Samancor, Sephaku and Boynton, Boynton has an option to acquire the rights to PGE's and base metals on the farm Annex Grootboom 335 KT.

Mining Right Applications for both the Grootboom 336 KT and Grootboom Tailings Dam were submitted to and accepted by the DME in November 2007. Notice of grant of the Mining Right in respect of the Grootboom 336 KT was received on October 21, 2008.

13.4 Loskop project

The Company currently holds interests ranging from 72.4% to 36.2% in the Loskop project through its subsidiary Boynton. Boynton holds converted new order prospecting rights over the project area which was granted under the MPRDA. The Loskop project area comprises various portions of the four properties: Rietfontein 70JS; Kameeldoorn 71JS; De Wagendrift 79JS and Loskop Suid 53JS. 

On January 29, 2003, Boynton entered into an option and joint venture agreement with a subsidiary of Lonmin Plc ('Lonmin') in respect of the Loskop project area. Under the agreement, Lonmin's subsidiary acquired the right to acquire a 50% interest in the various prospecting and option contracts comprising the Loskop project. Lonmin's subsidiary is also required to fund the cost of acquisition should it decide to exercise its option and acquire the 50% interest. Lonmin has completed its earn-in on a portion of Rietfontein 70JS, which has resulted in the formation of the 'First JV'. On June 27, 2008 Lonmin gave notice of their intention to withdraw from Kameeldoorn 71JS and Loskop Suid 53JS and of their desire for a 50/50 JV to be formed on De Wagendrift 79JS.

13.5 Other projects

The Company's other exploration projects consist of various portions of the properties; Bakhoutrantje 205JP, Vogelstruisnek 173JP (Ptns 3, 6 and RE), Palmietfontein 208JP, Groenfontein 138JP (RE), Ruighoek 169JP (Ptn 7 and RE), Tweelaagte 175JP, Diamant 206JP, Kleingenoeg 174JP, Golden Valley 621IQ, Rietfontein 338JQ, Paul Bodenstein Landgoed 571JQ, Onderstepoort 98JQ (Ptn 2), Bashoek 99JQ (Ptn 1), Rhebokhoek 101JQ (Ptns 3, 8, 9, 10, 11, 12, 13, RE2, RE4, RE7), Rhenosterdooms 531JP, Stroomrivier 236JP (Ptns 4, 19, 31, RE), Strydfontein 12JP (RE), Nooitgezein 761KS and Goedverwacht 763KS.

Furthermore, the Company has a free carried interest of 5.4% in Oorlogsfontein 45KS, also known as the War Springs project, where Platinum Group Metals are the operators and an option to acquire rights to PGE's and base metals on Scheiding 407KS (Ptn 2.)

14. Share capital

14.1    Common shares 

An unlimited number of common shares without par value have been authorized.

Movement during fiscal 2008
Number of shares
Amount $000
Balance, March 1, 2007
93,802,813
99,542
Common shares issued
9,500,000
79,613
Over allotment option
1,425,000
12,101
Exercise of options
6,041,422
511
Fair value of options exercised
-
1,980
Broker compensation options exercised
767,813
2,913
Balance, February 29, 2008
111,537,048
196,660
Share issue expenses
-
(4,544)
 
111,537,048
192,116
 
 
 
Movement during fiscal 2009
 
 
Balance, March 1, 2008
111,537,048
192,116
Common shares issued
258,416,038
174,037
Exercise of options
49,714
-
Fair value of options exercised
-
27
Balance, February 28, 2009
370,002,800
366,180


During the fiscal period ended February 28, 2009, 60,000 cashless options were exercised and converted into 49,714 common  shares.

The Company entered into an investors and subscription agreement to issue, by way of private placement, a total of 258,416,038 common shares of Platmin, in two tranches, for gross proceeds of US$125 million and ZAR 500 million (US$50 million) respectively, resulting in the raising of approximately US$175 million in new equity. The net proceeds will be used principally to complete the development of the Company's Pilanesberg project.



Exercise

price

$

Number of options


Options exercised during the fiscal period ended February 28, 2009



April 30, 2008

1.20

60,000

14.2    Contributed surplus


February 28

2009

$ 000

February 29

2008

$ 000

Balance - Beginning of period

3,068

2,479

Surplus - Vesting of options issued

4,288

2,549

Surplus - options exercised (cash)

-

(846)

Surplus - options exercised (cashless)

(27)

(1,114)

Balance - End of period

7,329

3,068


15. Bridge loan facility 

On May 14, 2008, the Company signed a US$35 million (ZAR 350 million) bridge financing facility with Standard Bank of South Africa Limited bearing interest at the Johannesburg Interbank Lending Rate ('JIBAR') plus 3.0%. The bridge loan facility was initially for the period of four months to September 30, 2008 and has subsequently been extended through two further extensions, to 31 May 2009. Under the extension, the loan bears interest at JIBAR plus 0.5%. Platmin has provided cash collateral to Standard Bank of ZAR387.800 million as security against the loan, and upon which the Company earns interest at JIBAR plus 0.1%. The net finance cost on the loan is 0.4%. 

The bridge loan facility has been used to fund the development and construction of the Pilanesberg Mine

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 $846,238 has been treated as cost of the loan transaction and will be amortized to net income using the effective interest method over the facility term.

                

February 28

2009

$ 000

February 29

2008

$ 000

Bridge loan facility

35,000

Interest accrued

4,598

-

Warrants issued

(846)

-

Balance - End of period

38,752

-

16. Stock options

The Board of Directors adopted a resolution dated May 3, 2005, which established a stock option plan (the '2005 Stock Option Plan'), pursuant to which options may be granted to directors, officers, employees and persons providing ongoing and contract services to the Company. The purpose of the Plan is to attract persons by offering to such persons the opportunity to acquire (or to increase) an equity interest in the Company through the purchase of shares under the Plan. Subject to adjustment made in the case of a share split of the issued common shares of the Company, the aggregate number of common shares that may be issuable pursuant to options granted under the Plan is fixed at a maximum of 9% of the outstanding common shares of the Company from time to time and shall be calculated on an as-needed basis. Prior to the establishment of the Plan, options were issued to directors and employees, at the discretion of management, to compensate for services provided. This 2005 Stock Option Plan was re-approved in accordance with its terms at the Annual General Meeting held on June 26, 2008.

The Board of Directors adopted a resolution dated June 24, 2007, which established a stock option plan (the '2007 Stock Option Plan'), pursuant to which options may be granted to directors, officers, employees and persons providing ongoing and contract services to the Company. The purpose of the Plan is to attract persons by offering to such persons the opportunity to acquire (or to increase) an equity interest in the Company through the purchase of shares under the Plan. The maximum number of common shares reserved for issuance under the 2007 Stock Option Plan is 2,500,000 common shares. No stock options have been granted under the 2007 Stock Option Plan.


The following assumptions were used in valuing the options issued:

Date issued

Risk free interest rate

Expected dividend yield

Expected volatility

Expected option life

September 18, 2006

3.88%

Nil

100%

3.5 years

June 1, 2007

4.50%

Nil

66%

3 years

August 28, 2007

4.50%

Nil

66%

3 years

November 7, 2007

4.24%

Nil

65%

3 years

January 14, 2008

3.50%

Nil

54%

3 years

January 21, 2008

3.42%

Nil

52%

3 years

April 25, 2008

2.92%

Nil

62%

3 years

June 23, 2008

3.35%

Nil

62%

3 years

June 30, 2008

3.35%

Nil

57%

3 years

September 23, 2008

3.03%

Nil

64%

3 years

September 30, 2008

3.03%

Nil

73%

3 years


Details of stock options issued under and prior to the Plans, are as follows:



Number of options


Weighted
 average
 exercise price

$

Movement during fiscal 2008




Options outstanding, March 1, 2007


9,635,633

1.58

Granted


2,646,900

8.07

Exercised - compensation options


(767,813)

(3.79)

Exercised - options


(7,012,820)

(1.03)

Options cancelled - resignations


(40,000)

(0.70)

Options outstanding, February 29, 2008


4,461,900

5.29

Options exercisable, February 29, 2008


1,940,000

1.60





Movement during fiscal 2009




Options outstanding, March 1, 2008


4,461,900

5.29

Exercised - options


(60,000)

(0.54)

Options cancelled - resignations


(617,167)

(8.64)

Options granted


847,000 

5.77

Options outstanding, February 28, 2009


4,631,733

4.98

Options exercisable, February 28, 2009


2,745,466

3.50


As at February 28, 2009 the following options were exercisable and outstanding:


Exercisable

Outstanding

Expiry date

Exercise

price

$

Number of

options


Exercise

price

$

Number of options


November 3, 2010

1.20

250,000

1.20

250,000

December 6, 2010

1.20

1,460,000

1.20

1,460,000

September 18, 2011

3.86

75,000

3.86

75,000

June 1, 2012

5.74

370,000

5.74

570,000

August 28, 2012

7.04

50,000

7.04

150,000

November 7, 2012

10.11

56,800

10.11

170,400

January 14, 2013 

8.91

350,334

8.91

976,000

January 21, 2013

8.30

133,333

8.30

133,333

April 25, 2013 

7.04

-

7.04

210,000

June 23, 2013 

6.46

-

6.46

200,000

June 30, 2013

7.08

-

7.08

200,000

September 23, 2013

2.93

-

2.93

144,000

September 30, 2013

2.97

-

2.97

93,000

Weighted average

3.50

2,745,467

4.98

4,631,733


The stock-based compensation expense included in the consolidated statements of operations and deficit, is as follows:





February 28

2009

$ 000

February 29

2008

$ 000

Management and consulting fees




4,247

2,549



At February 28, 2009 the fair value of stock options issued, which had not been charged to employee expenses, was US$ 12,758,912 (2008US$7,632,590).

17. Loan payable

The long-term loan from Corridor Mining Resources (a subsidiary of Limpopo Economic Development Enterprise, previously Northern Province Development Corporation) bears interest at South African prime rate until otherwise agreed by the shareholders, and has no fixed terms of repayment. The loan is used by Mahube to fund exploration activities. 

The loan is to be repaid from the proceeds generated by the Mphahlele project in Tameng, a subsidiary of Mahube. The increase in the loan amount payable is due to the increase in exploration activities and costs incurred in the preparation of a bankable feasibility study for this project.

The long-term loan from Ranger Minerals bears interest at South African prime overdraft rate plus 2% until otherwise agreed by the shareholders, and has no fixed terms of repayment. The loan is used by Defacto Investments (a joint venture, between Boynton and Ranger Minerals) to fund exploration activities. 




Reconciliation:

February 28

2009

$ 000

February 29

2008

$ 000

Balance at the beginning of the period

1,388

659

Increase in loans payable

442

729

Interest accrued

291

-

Balance at the end of the period

2,121

1,388

18. Asset retirement obligation

The Pilanesberg Mine is currently in commissioning phase and the estimate thus represents the current cost of environmental liabilities as at February 28, 2009. An annual estimate of the quantum of closure costs is necessary in order to fulfil the requirements of the DME, as well as meeting specific closure objectives outlined in the mine's Environmental Management Programme. This programme is intended to render the rehabilitated areas available for wildlife / ecotourism and / or livestock grazing.

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 discounted liability for the asset retirement obligation at February 28, 2009 is US$9.470 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 risk free rate of 8.6% and an inflation rate of 6% over a period of 13 years.

Reconciliation:



As at



February 28

2009

$ 000

February 29

2008

$ 000

Balance at the beginning of the period


1,461

493

Liability incurred in the current period


10,370

968

Accretion


184

-

Balance at the end of the period

 

12,015

1,461


19. Income tax losses carried forward

The Company's income tax provision (recovery) has been calculated as follows:



February 28

2009

$ 000

February 29

2008

$ 000

Loss from ordinary activities before income tax expense


11,018

9,080

Income tax recovery (provision) at Canadian federal and provincial rates


(3,680)

(3,632)

Permanent differences


(13)

1,028

Difference in tax rates


(1,502)

727

Current year tax losses


(5,195)

(1,877)

Current year losses not recognised


5,195

1,877 

Income tax expense

 

-

-

The Company's future income tax assets are summarized as follows:



February 28

2009

$ 000

February 29

2008

$ 000

Non-capital losses carried forward


15,520

10,325

Net future income tax assets


15,520

10,325

Valuation allowance


(15,520)

(10,325)

Net future income tax asset recorded


-

-

No benefit in respect of the potential application of these losses has been recorded in these consolidated financial statements. The Canadian losses carried forward expire in various fiscal years, as indicated in the following table:








US$ 000

2011



143

2015



464

2026



1,022

2027



54

2028



1,817

2029



2,065


 


5,565

The Company has non-capital losses carried forward for South African income tax purposes of approximately US$238,006,990 (2008 - US$23,272,569).

The South African losses do not have an expiry date and consist of losses carried forward and unredeemed capital expenditure.

20. Contingencies and commitments

  • The Company has guaranteed the rehabilitation of numerous exploration targets. As at February 28, 2009, the total guarantees held by a bank were US$1,617,669 (February 29, 2008 - US$653,238).

  • Boynton has entered into an agreement with Impala Platinum Limited (Impala) for the right of first refusal to purchase PGM concentrate produced by Boynton from the properties, Ruighoek 169JP, Vogelstruisnek 173JP and Palmietfontein 208JP. Should Boynton elect not to accept the terms proposed by Impala, a break fee of US$2,089,573 in aggregate will be payable to Impala.

  • Boynton has an obligation, which cannot be quantified, pro rata to its shareholding in Mahube to provide funding to Tameng to undertake the necessary exploration and development on the Mphahlele project. The consequence of not contributing accordingly, results in dilution of Boynton's shareholding.

  • Boynton has entered into an agreement with Codoca Beleggings CC (Codoca) where Codoca will transfer its mineral rights to Boynton. A deposit of US$242,840 (ZAR1.5 million) was paid to Codoca.

The remaining balances are due to be paid by Boynton when the following requirements are met:

Payment of 50% of the balance of the consideration amount within 30 days of being notified by the DME that a prospecting right, in terms of the MPRDA, has been granted and issued to Boynton, enabling and entitling Boynton to commence prospecting activities and also in respect of Codoca's undivided share in the mineral rights. The remaining balance for this, less the deposit, will be US$158,711 (ZAR1.6 million).

Furthermore, payment of remaining balance of the consideration amount within 30 days of being notified by the DME that a mining right in terms of the MPRDA has been granted and issued to Boynton, enabling and entitling Boynton to commence mining activities and also in respect of Codoca's undivided share in the mineral rights. The remaining balance for this, less the deposit, will be US$158,711 (ZAR1.6 million).

  • In respect of a joint venture agreement with Western Platinum Ltd. (Lonmin JV), Lonmin will contribute a maximum of US$627 per hectare towards mineral rights existing under the joint venture and towards any additional mineral rights included later. Any costs beyond US$627 per hectare will be shared equally between Lonmin and Boynton.

  • A Prospecting Contract was entered into on April 28, 2005 between Boynton and a BEE company, Sephaku, BHP and Samancor with respect to the property Annex Grootboom 335KT ('Annex Grootboom'). In terms of the agreement, Samancor as the holder of certain old order rights pertaining to Annex Grootboom.

  • Grootboom 335KT and Scheiding 407KS (Scheiding), was obligated to apply for conversion of these rights under the provisions of the MPRDA. Subsequent to a conversion being granted, Samancor is obligated in terms of the agreement to transfer the rights to PGM's and all metals and minerals mineralogically associated therewith on Annex Grootboom and Scheiding (the 'PGM rights'), to BHP.

  • Samancor lodged an application for conversion of the mining licence in December 2006. In terms of the same agreement, Sephaku was appointed to carry out exploration activities on Annex Grootboom and Scheiding on a contract basis.

  • In terms of the agreement, Sephaku has the right to, within one month of the completion of a Bankable Feasibility Study on Annex Grootboom, acquire from BHP the PGM Rights for cash consideration of $8.00 per resource ounce as determined in a Bankable Feasibility Study in accordance with the SAMREC Code.

  • Sephaku has subsequently assigned all of its rights and obligations in terms of the aforementioned contract to Boynton.

  • Pilanesberg Platinum Mines (Pty) Ltd ('PPM') entered into an agreement with engineering firm Dowding Reynard and Associates Engineering (Pty) Ltd to implement the design and construction phase of the project. The total estimated value determined during the Bankable Feasibility Study ('BFS') of the project was ZAR1.5 billion which equated to US$203.6 million at an estimated exchange rate of ZAR7.20 at the time of the BFS. The remaining value with regards to this agreement as at February 28, 2009 is ZAR 93 million which equates to US$9,314,437 at the closing rate of ZAR 9.9845.

  • PPM also entered into a number of agreements with various suppliers to render services associated with the operating of the mine. The total fixed value of these agreements is ZAR 4.3 billion (over a period of 5 years), which equates to US$430.667 million at the closing rate of ZAR 9.9845.

  • PPM entered into a firm commitment to purchase a 10MW diesel standby generator in order to allow for any future power shortages or disruptions to supply by the state power utility Eskom. The cost of installing the generator is estimated to be in the order of ZAR 144.35 million which equates to US$14.46 million at the closing rate of ZAR 9.9845. At February 28, 2009, the outstanding amount was ZAR 60 million (US$6.009 million).

21. Minimum lease payments

Office rental




US$ 000

Less than 1 year




124 

2 to 5 years




291

More than 5 years




-





415


During the first quarter of fiscal 2008, the Company's subsidiary, Boynton, entered into an operating lease agreement for the rental of offices. The lease commenced on April 1, 2007, for a period of five years. The monthly rental will escalate by 8% per annum pursuant to the agreement. The Company has the right to renew the lease for a further period of up to five years, provided notice is given in writing at least nine months prior to the termination of the initial period.

22. Segmented information

The Company operates in one geographic segment, South Africa, and one industry segment, exploration of precious metals properties, mainly platinum group elements. All assets (with the exception of cash balances) are held in South Africa.

Funds raised by the Company are held in USD, GBP, CAD and ZAR interest bearing accounts in the United Kingdom (49%) and South Africa (51%) until required by the operations.

23. Subsequent event

Subsequent to year end, the Company announced that it has engaged GMP Securities Europe LLP ('GMP') to conduct a brokered private placement of common shares of Platmin, to raise, on a best efforts agency basis, between C$45 million and C$55 million, with an option of a further C$15 million at the volition of the Company. As at May 21, 2009, placees have been arranged to purchase 75,015,552 new common shares for a consideration of £39,008,087.

24. Comparative amounts

Certain comparative amounts have been reclassified to conform to the current period's presentation.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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