Results For The Period
During the nine months ended May 31, 2013, the Company incurred a net loss of $10.97 million (May 31, 2012 - loss of $7.03 million). General and administrative expenses during the period amounted to $4.18 million (May 31, 2012 - $4.21 million), losses on foreign exchange, due mainly to movement in the Rand during the period, were $9.2 million (May 31, 2012 $3.3 million), while stock based compensation expense, a non-cash item, totalled $1.17 million (May 31, 2012 - $1.96 million). Finance income consisting of interest earned and property rental fees in the nine months amounted to $3.95 million (May 31, 2012 - $3.12 million). Loss per share for the period amounted to $0.04 per share, as compared to a loss of $0.04 per share for the comparative period of fiscal 2012.
Accounts receivable at May 31, 2013 totalled $7.60 million while accounts payable and accrued liabilities amounted to $9.02 million. Accounts receivable were comprised primarily of value added taxes repayable to the Company in South Africa and reimbursement of exploration expenditures. Accounts payable included accrued professional fees, contract construction fees, drilling expenses, engineering fees and regular trade payables.
Total expenditures by the Company for development and purchases of property and equipment for Project 1 during the nine months ended May 31, 2013 totaled $44.34 million. Expenditures by the Company during the nine month period for exploration on Waterberg were approximately $10.81 million, of which $3.78 million was funded by joint venture partner, the Japan Oil, Gas and Metals National Corporation ("JOGMEC").
With deep regret the Company reported that on February 13, 2013 a surface worker at Project 1 was involved in an incident with a moving truck and subsequently died while under medical care. As a result, work on site was halted for approximately three weeks under an order in accordance with Section 54 of the Mine Health and Safety Act while the accident was investigated and safety policies and procedures on site were reviewed. Safety is our top priority and we constantly endeavor to improve safety in all of the Company's activities.
At WBJV Project 1 engineering, procurement, construction and management ("EPCM") contractor DRA Mineral Projects (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 underground development work on the north declines and has now begun underground development work on the south declines located approximately 1.8 km south of the north portal. Advance to date of south mine declines is approximately 82 metres. The development of these declines is currently progressing slower than anticipated due to poor near surface ground conditions. As a result of the slower development rates in the south mine and a one month project delay as a result of Section 54 safety work stoppages, the targeted start date for first concentrate production was adjusted during the period to mid-2015.
At the north mine area, now that the decline tunnels have reached the Merensky reef level, development of underground raise tunnels and level development will continue as planned. Sinking of the main declines themselves will continue targeting mine blocks below the current development level.
Surface work continues with the construction of the mill and concentrator laydown areas and Eskom substations. Surface development is several weeks ahead of schedule and surface earthworks and lay down areas are well advanced. Expected deliveries for all major components remain on schedule. Power and water requirements are expected to be provided as required.
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