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


Group revenue totalled US$126.1 million, an increase of 22.6% relative to the comparable period. The increase in revenue, notwithstanding lower commodity prices, is as a result of an increase in PGM production as well as increased revenue from the introduction of premium foundry and chemical grade products. The gross profit margin reduced to 16.0% with a gross profit of US$20.2 million from the comparable period gross profit margin of 21.1%.

This was mainly attributed to an increase in the mining costs due to the operations being ramped up towards steady state and higher engineering costs being incurred due to post-commissioning engineering optimisation including accelerated mill re-linings, equipment repairs and maintenance costs.

After accounting for administration expenses the Group achieved an operating profit of US$7.4 million, an increase of 19.2% over the comparable period.

Finance costs relate principally to the senior debt facility secured by Tharisa Minerals. Debt repayments (capital and interest) effected on this facility during the period amounted to US$15.3 million.

Changes in fair value of financial liabilities incurred a non-recurring charge of US$30.6 million and relate to the fair value adjustment arising from the internal rate of return of 25% that was payable to the preference shareholders. These preference shares were subsequently converted into ordinary shares (refer to section on subsequent events).

After accounting for the above financing costs, the Group incurred an increased loss before taxation of US$31.1 million compared to the prior period loss of US$22.1 million.

Foreign currency differences which are applicable where the Company has funded the underlying subsidiaries with US$ funding and the reporting currency of the underlying subsidiary is not in US$, amounted to US$8.9 million against the comparable period charge of US$20.9 million.

Total comprehensive income remained substantially unchanged at US$37.1 million.

The Group generated net cash from operations of US$28.8 million, a significant turnaround from the comparable period when cash used in operations totalled US$32.6 million. Overall there was a net decrease in cash of US$11.2 million against the net decrease in cash over the comparable period of US$28.7 million, leaving cash on hand of US$14.1 million. This cash on hand excludes the required senior debt facility debt service reserve account obligations in terms of which the funds held on long term deposits increased by US$8.2 million to US$15.9 million.