08 September 2011
In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, companies are required to inform shareholders as soon as there is a reasonable degree of certainty that the earnings of the company are likely to vary by more than 20% compared to the previous corresponding period.
The Board of Directors therefore wishes to advise shareholders that the Company expects to report a basic loss per share attributable to ordinary shareholders for the six months ended 30 June 2011 of between 33 cents and 39 cents per share compared to a basic earnings per share of 50.47 cents for the previous comparable period.
The change from basic earnings in June 2010 to a basic loss in June 2011 is as a result of a once-off share-based payment expense of R406.6 million recognised in the Statement of Comprehensive Income according to IFRS 2.
The share-based payment expense arose as a result of the subscription of 829 884 460 new shares by Jinchuan, Cadfund and Micawber in Wesizwe on 4 May 2011 at an effective subscription price of R1.81 per share, compared to a market price of R2.30 per share on the date of closure.
If the impact of share-based payment expense was to be excluded, the Company would have achieved a basic earnings per share of between 1.00 cents and 1.50 cents per share.
A headline loss per share attributable to ordinary shareholders for the year ended 30 June 2011 is expected to be between 33 cents per share and 39 cents per share compared to a headline loss per share of 6.52 cents for the previous comparable period.
The financial information included in this trading statement has not been reviewed and reported on by the Company’s external auditors.
The results for the half year ended 30 June 2011 will be released on SENS on or about 27 September 2011.
08 September 2011
Sponsor: Investec Bank Limited