Reviewed Condensed Consolidated Interim Financial Statements
for the six months ended 31 March 2014


On 10 April 2014, the Company listed its ordinary share capital in the “General Mining” sector of the Main Board of the Johannesburg Stock Exchange. In terms of a private placement undertaken at the time of the listing, the Company raised US$47.9 million (ZAR500.0 million) through the issue of new ordinary shares at an issue price of ZAR38 per share. As a consequence of the listing, the issued preference shares of the Company were converted into new ordinary shares.

Pro forma financial statements are set out in the supplementary information. The pro forma financial position taking into account the subsequent events increases the net tangible asset value per share from a negative US$14.71 to a positive US$0.96 and changes the headline loss per share from US$3.70 to headline earnings per share of US$0.4 cents. Pro forma cash on hand totals US$50.7 million.

The majority of the private placement proceeds, after listing costs and fees, have been allocated to capital projects, the purchase of long lead item spares and to working capital. The capital projects currently being undertaken are focused on optimising chrome yield and PGM recovery. The magnetic separation project to recover chrome fines has commenced with the installation of two production scale magnetic separation units. To enhance PGM recovery, three high energy flotation cells have been commissioned on the cleaner flotation circuit while the remaining four planned high energy flotation cells will be installed on the rougher and recleaner circuits by the end of the current quarter.