Good - Jason Brewer only earned 150,000 AUD in 2012
- Jane Flegg (an employee of Okap Ventures Pty Ltd) received naught for services
- Consulting costs went from circa $9.7M (WOW) to $3.3M
- Total revenue went from circa $70M to $87M, about 25% increase
- Directors fees (cash and shares) has gone from $6.3M (WOW) to $1.1M… gravy train has terminated.
- PFS cost of $3.4M in 2011, no costs associated in 2012
- Bought in coal decreased to $9.2M from $11.8M
- Borrowing (CURRENT) Convertible Notes - unsecured $1.8M, Related 3rd Party Unsecured $2.1M, Other Loans $2.5M, Working Capital Facility $0.2M
- Related party borrowings – unsecured $25.8M (SIOC-cdt BEE deal “SIOC financing would be paid pro-rata from distributions to the parent entity (74%)and SIOC (26%) and should not be viewed as a borrowing in the traditional sense from a third party financier"
- Non-current Hedge Liability $0.6M
- TOTAL BORROWINGS $46M, Less Cash and Cash Equivalents $14M, Net Debt $31M = Gearing Ratio of 14%
- Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows, Intangible assets payable: Within 1 year $34M
Bad
- Bruce Buthelezi received $4.2M termination benefits
- Don Turvey received $756,486
- Cost of Sales from $47M to $68M, mostly due to 60% mining cost increase, 100% increase for processing and circa 40% increase on export costs
- Accretion (growth) of convertible note interest $ 2.7
- Forex losses of $1.8M compared to Nil in 2011
- Depreciation of $3.2M compared to Nil in 2011
- Employee costs from $2.5M to $3.8M, attribute this to Penumbra?
- Derivative liabilities from convertible notes $0.9M
- Option and share repricing derivative liability $0.6M
- Current and Non-Current Royalty liabilities $5.2M
Ugly
- One off Royalty expense in 2012 of $8,661,536 (a financing arrangement entered into in a prior financial year)?
- Mining exploration impairment (write off) of $19,775,325, hopefully we are at a bottom on impairments
- Interest borrowing costs double to just under $6M (excluding $2.4M in coal payments to EDF)
- Borrowing (NON-CURRENT) Convertible Notes – unsecured $13.3M (maturity $6M November 2013 and $10M February 2014) Note: Balance of $16M notes is now $15.1M.
- Non-Current Differed Tax Liability $26.8M
- Non-Current Provision for Rehabilitation $12.2M
So where can was cut costs, some obvious overheads/ questions: - Johan Heystek $440,073 - Don Turvey $756,486 - Andrew Macaulay $342,775 - James Leahy $240,521 - Depreciation of $3.2M - Processing Costs, what happened there - Mining exploration impairments – hopefully no more - Interest borrowing costs – Need to bring down debts through sale of non-core assets
CCC Price at posting:
4.5¢ Sentiment: LT Buy Disclosure: Held