JOHANNESBURG,
Aug. 14, 2019
/CNW/ - Atlatsa Resources Corporation
("Atlatsa" or the "Company") (TSX: ATL; JSE: ATL)
announces its operating and financial results for the quarter ended
June 30, 2019.
This release should be read together with the Company's
unaudited condensed consolidated interim financial statements for
the three and six months ended June 30,
2019 (the "Q2 2019 Financial Statements") and the
related Management's Discussion and Analysis of Financial Condition
and Results of Operations filed on http://www.sedar.com, which are
also available at
http://www.atlatsaresources.co.za/investors-and-media/financial-results-mdas.
Currency values are presented in South African Rand (ZAR) and
Canadian Dollars ($). The Q2 2019 Financial Statements are also
accessible via the JSE link at
https://senspdf.jse.co.za/documents/2019/jse/isse/atl/Q2_2019FS.pdf.
The Restructuring Plan and Composite
Transaction
On December 12, 2018,
Atlatsa announced ("December Announcement") a
comprehensive restructuring and going private transaction,
representing phase 2 of the Restructuring Plan, whereby it had
entered into a suite of transaction agreements dated December 11, 2018 with, inter alia,
Rustenburg Platinum Mines Limited, a significant shareholder of
Atlatsa and a wholly-owned subsidiary of Anglo American Platinum
Limited, as well as Atlatsa Holdings Proprietary Limited, Atlatsa's
majority shareholder, outlining the terms and conditions of a
Composite Transaction to be implemented by way of a Canadian
court-approved plan of arrangement ("Plan of Arrangement")
under section 288 of the Business Corporations Act
(British Columbia) (the
"Arrangement").
Conditions Precedent to the
Effectiveness of the Arrangement
On December 12, 2018 the
Department of Mineral Resources of South
Africa granted approval and consent for the Prospecting
Rights Disposition in terms of sections 11 and 102 of the South
African Mineral and Petroleum Resources Development Act, No. 28 of
2002.
On June 12, 2019, the
exchange control authorities of the South African Reserve Bank
granted approval for the transactions contemplated in the Plan of
Arrangement, which approval contains certain requirements to be
completed within six months of the delisting from the TSX and the
exchange operated by the JSE.
On August 2, 2019, at a
special meeting of the Company, the shareholders of the Company
("Shareholders") approved the Composite
Transaction.
On August 8, 2019, the final
order of the Supreme Court of British
Columbia with respect to the Plan of Arrangement was
granted.
The Company is implementing the remaining steps to
complete the Composite Transaction, with an effective date for the
Plan of Arrangement and delisting from the TSX and the exchange
operated by the JSE targeted for the third quarter of
2019.
Financial Results – for the Q2 2019 Financial
Statements*
Set out below are summaries of key financial results for
the Group for the three and six months ended June 30, 2019 and 2018.
|
Three Months
ended June 30,
2019
$ thousands
|
Three Months
ended June 30,
2018
$ thousands
|
Six Months
ended June 30,
2019
$ thousands
|
Six Months
ended June 30,
2018
$ thousands
|
Revenue
|
-
|
1,495
|
-
|
5,527
|
Cost of
sales
|
-
|
(5,542)
|
-
|
(9,562)
|
Gross loss
|
-
|
(4,047)
|
-
|
(4,035)
|
General and
administrative
expenses
|
(880)
|
(802)
|
(2,186)
|
(2,865)
|
Care and maintenance
costs
|
(4,087)
|
(10,978)
|
(7,777)
|
(27,572)
|
Other
income
|
(6)
|
2
|
739
|
4
|
Operating loss
|
(4,973)
|
(15,825)
|
(9,224)
|
(34,468)
|
Finance
income
|
50
|
53
|
100
|
119
|
Finance
costs
|
(16,930)
|
(17,810)
|
(33,838)
|
(35,782)
|
Loss before income tax
|
(21,853)
|
(33,582)
|
(42,962)
|
(70,131)
|
Loss attributable to
Atlatsa
Shareholders
|
(17,170)
|
(23,375)
|
(34,004)
|
(49,612)
|
Basic and dilute loss
per
common share – cents
|
(3)
|
(4)
|
(6)
|
(9)
|
Headline loss per
share –
cents*
|
(3)
|
(4)
|
(6)
|
(9)
|
Weighted average
number of
shares outstanding
|
549,924,744
|
549,924,744
|
549,924,744
|
549,924,744
|
|
|
*
|
Total line items
in the table above may be different to the amounts in the Q2 2019
Financial Statements,
due to rounding.
|
|
|
**
|
Headline loss per
share is not a recognised measure under International Financial
Reporting
Standards ("IFRS") and should not be construed as an
alternative to basic earnings or loss determined
in accordance with IFRS as an indicator of the financial
performance of Atlatsa
|
|
|
|
It is an
additional earnings number used as a way of dividing the IFRS
reported profit between
re‑measurements that are more closely aligned to the operating /
trading activities of the entity, and
the platform used to create those results. The starting point is
basic earnings excluding "separately
identifiable re-measurements" (as defined in Circular 2/2015 issued
by the South African Institute of
Chartered Accountants), net of related tax (both current and
deferred) and related non-controlling interest other
than re-measurements specifically included in headline earnings
("included
re-measurements", as defined)
|
|
|
***
|
The Statement of
Comprehensive Income is translated at the average year to date
exchange rate,
except for revenue which is translated at the date of the
transaction.
|
|
|
****
|
Percentage
variances have not been shown as the variances are not meaningful
due to Bokoni
Mine being placed on care and maintenance.
|
Financial results
Total care and maintenance costs for the three months ended
June 30, 2019 were $4.1 million
(ZAR43.6 million) compared to
$11.0 million (ZAR105.8 million) for the three months ended
June 30, 2018. Care and
maintenance costs include shafts and plant maintenance costs,
pumping to prevent flooding of working areas, safety inspections as
well as general and administrative expenses necessary to safeguard
the Bokoni Mine assets.
Loss per share
The basic and diluted loss per share was $0.03 for the three months ended June 30, 2019 compared to $0.04 for the three months ended June 30, 2018. The basic and diluted loss per
share is based on the loss attributable to Shareholders of
$17.2 million for the three months
ended June 30, 2019 compared to the
loss attributable to Shareholders of $23.4
million for the three months ended
June 30, 2018.
The basic and diluted loss per share was $0.06 for the six months ended June 30, 2019 compared to $0.09 for the six months ended June 30, 2018. The basic and diluted loss per
share is based on the loss attributable to Shareholders of
$34.0 million for the six months
ended June 30, 2019 compared to the
loss attributable to Shareholders of $49.6
million for the six months ended June
30, 2018.
Headline loss per share
The basic and diluted headline loss per share was
$0.03 for the three months ended
June 30, 2019 compared to
$0.04 for the three months ended
June 30, 2018. The basic and diluted
headline loss per share is based on the headline loss attributable
to Shareholders of $17.2 million for
the three months ended June 30, 2019
compared to the headline loss attributable to the Shareholders of
$23.4 million for the three months
ended June 30, 2018.
The basic and diluted headline loss per share was
$0.06 for the six months ended
June 30, 2019 compared to
$0.09 for the six months ended
June 30, 2018. The basic and diluted
headline loss per share is based on the headline loss attributable
to Shareholders of $34.0 million for
the six months ended June 30, 2019
compared to the headline loss attributable to Shareholders of
$49.6 million for the six months
ended June 30, 2018.
Issued share capital
As at June 30, 2019, Atlatsa
had 554,421,806 issued and outstanding Common Shares.
Corporate Advisor and JSE Sponsor to
Atlatsa:
One Capital
Cautionary note regarding forward-looking
information
This document contains "forward-looking statements" within
the meaning of the applicable Canadian securities laws, that are
based on Atlatsa's estimates and projections as of the dates as of
which those statements are made, including statements relating to
anticipated financial or operational performance. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology including without limitation,
statements relating to potential acquisitions and/or disposals,
future production, reserve potential, exploration drilling,
exploitation activities and events or developments that Atlatsa
expects such statements appear in a number of different places in
this document and can be identified by words such as "anticipate",
"estimate", "project", "expect", "intend", "believe", "plan",
"forecasts", "predicts", "schedule", "forecast", "predict", "will",
"could", "may", or their negatives or other comparable words. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Atlatsa's actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements.
Atlatsa believes that such forward-looking statements are
based on material factors and reasonable assumptions, including the
following assumptions: placing the Bokoni Mine on care and
maintenance; safe guarding of all assets and the maintenance of
major equipment; implementing the terms of the Letter Agreement and
debt standstill arrangement l as contemplated in the Restructuring
Plan; and meeting the conditions precedent of the Restructuring
Plan and the Arrangement.
Forward-looking statements, however, are not guarantees of
future performance and actual results or developments may differ
materially from those projected in forward-looking statements.
Factors that could cause actual results to differ materially from
those in forward looking statements include: uncertainties related
to placing the Bokoni Mine on care and maintenance; uncertainties
related to the implementation of the Restructuring Plan and the
Arrangement; uncertainties related to meeting the conditions
precedent of the Restructuring Plan and the Arrangement; changes in
and the effect of government policies with respect to mining and
natural resource exploration and exploitation; continued
availability of capital and financing; general economic, market or
business conditions; failure of plant, equipment or processes to
maintain the Bokoni Mine on care and maintenance; labour disputes,
industrial unrest and strikes; political instability; suspension of
operations and damage to mining property as a result of community
unrest and safety incidents; insurrection or war; the effect of
HIV/AIDS on labour force availability and turnover; delays in
obtaining government approvals; and the Company's ability to
satisfy the terms and conditions of the loans and borrowings, as
described under "Going Concern" in Note 2 of the unaudited
condensed consolidated interim financial statements for the quarter
ended June 30, 2019. These factors
and other risk factors that could cause actual results to differ
materially from those in forward-looking statements are described
in further detail under "Description of Business - Risk Factors" in
Atlatsa's Annual Information Form for Fiscal 2018, which is
available on SEDAR at www.sedar.com.
Atlatsa advises investors that these cautionary remarks
expressly qualify in their entirety all forward-looking statements
attributable to Atlatsa or persons acting on its behalf. Atlatsa
assumes no obligation to update its forward-looking statements to
reflect actual results, changes in assumptions or changes in other
factors affecting such statements, except as required by law.
Investors should carefully review the cautionary notes and risk
factors contained in this document and other documents that Atlatsa
files from time to time with or furnishes to; Canadian securities
regulators which are available on SEDAR at
www.sedar.com.
SOURCE Atlatsa Resources Corporation