Results For The Period
During the six months ended February 28, 2013, the Company incurred a net loss of $1.63 million (February 29, 2012 - loss of $4.82 million). General and administrative expenses during the period amounted to $4.22 million (February 29, 2012 - $3.44 million), gains on foreign exchange, due to movement in the Rand during the period, were $1.52 million (February 29, 2012 - loss $1.45 million), while stock based compensation expense, a non-cash item, totalled $1.16 million (February 29, 2012 - $1.94 million). Finance income consisting of interest earned and property rental fees in the six months amounted to $2.57 million (February 29, 2012 - $2.16 million). Loss per share for the period amounted to $0.00 per share, as compared to a loss of $0.01 per share for the comparative period of fiscal 2012.
Accounts receivable at February 28, 2013 totalled $8.65 million while accounts payable and accrued liabilities amounted to $8.05 million. Accounts receivable were comprised primarily of value added taxes repayable to the Company in South Africa and funds due from Restricted Cash for expenditures on Project 1. Accounts payable included accrued professional fees, contract construction fees, drilling expenses, engineering fees and regular trade payables for ongoing exploration and development costs and administration.
Total expenditures by the Company for development and purchases of property and equipment for Project 1 during the six months ended February 28, 2013 totaled $25.94 million, before including the effects of foreign currency exchange rate fluctuations. Expenditures by the Company during the six month period for exploration on Waterberg were approximately $7.22 million, of which $2.62 was funded by joint venture partner the Japan Oil, Gas and Metals National Corporation ("JOGMEC").
On February 13, 2013, Moshiko Molepo, a surface worker, was involved in an incident with a moving truck and subsequently died while under medical care. Our sympathies go out to his family and friends. We continue to endeavor to improve our safety on site and this is our number one priority.
The completion of a $180 million equity financing and the credit approval for a US$260 million project loan launched the Company into Phase 2 construction for the WBJV Project 1 and provides the Company's share of a US$10 million exploration budget for the Waterberg.
At Project 1, construction and development is proceeding at pace. Engineering, procurement, construction and management ("EPCM") contractor DRA Mining Pty Ltd. ("DRA") was engaged as EPCM contractor in January for commencement of Phase 2, including mill construction. Underground mining contractor JIC Mining Services continues their work on the north declines and has now begun work on the south declines. Surface work continues with the construction of the mill and concentrator laydown areas and Eskom substations. On April 9, 2013 the WBJV Project 1 Platinum Mine operating company was issued a Section 54 stop work order for the north twin declines underground following a normal inspection by the Mines Inspector. The order cites two underground bolt locations, underground scaling support, explosives control and supervision. The Company is working diligently and co-operatively with the Department of Mineral Resources of the Government of South Africa ("DMR")to make a presentation appealing for the lifting of the order in the next 10 days. Work on surface construction and underground development of the South area twin declines continues.
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