Bauba Platinum Limited 2013 half year results in the red - CNBC Africa

Bauba Platinum Limited 2013 half year results in the red


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A mining dump truck. PHOTO: Getty Images

“The Group did not generate any revenue and in line with the group’s dividend policy, [and] no dividend was declared. The Group raised R2.5 million cash at a cost of R0.5 million during the period under review,” Bauba said in a statement.

“1.1 million rand was spent on exploration activities, which was capitalised in line with the group’s accounting policies and 3.4 million rand on general and administration costs.”

Loss before taxation for the six months ended 31 December 2013 was recorded at 3.9 million rand from 5.5 million rand in 2012, and finance income decreased significantly from 614 million rand to 73 million rand in the period under review.

[DATA BAU:Bauba Platinum Limited] is a company based in South Africa that specialises in the exploration, evaluation and development high quality platinum metals.

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The group however successfully raised 2.5 million rand under its General Authority by way of issuing 3.7 million shares shares for cash during the December 2013 period at an issue price of 0.66 rand per share. According to Bauba, the cash will now be utilised as bridging finance until its chrome project becomes cash generative.

In March this year, Bauba announced it had entered into a chrome ore supply agreement with Hlabirwa, the legal holder of the prospecting rights, and ASA Metals Proprietary Limited.

Headline losses for the period were recorded at 3.7 million rand from 5.1 million rand in 2012. Undiluted and diluted loss earnings per share were recorded at 3.1 cents from 4.2 cents in 2012.

“With a major portion of the net cash proceeds from the chrome operation being diverted into the exploration programme, it will place the group in a favourable position. [This will allow the group] to apply for a mining right over its platinum project and to further develop and exploit its platinum resources,” said Bauba.