GROUP OPERATING AND FINANCIAL
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$31.1 million compared to the prior period loss of
Foreign currency differences which are applicable
where the Company has funded the underlying
subsidiaries with US$ 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