VANCOUVER, May 13 /CNW/ -- CHALLENGING FIRST QUARTER FOR ANOORAQ:
BOKONI GROUP INITIATES STRATEGIC REVIEW OF ASSETS, AS WELL AS
RESTRUCTURING AND REFINANCING VANCOUVER, May 13 /CNW/ - Anooraq
Resources Corporation ("Anooraq" or the "Company" or, together with
its subsidiaries, the "Group") (TSXV: ARQ) (NYSE Amex: ANO) (JSE:
ARQ) announces its operational and financial results for the three
months ended March 31, 2011 ("Q1 2011"). This release should be
read with the Company's unaudited interim financial statements for
the three months ended March 31, 2011 and related Management
Discussion & Analysis, available at www.anooraqresources.com
and filed at SEDAR on www.sedar.com. Currency values are presented
in South African rand ("ZAR"), Canadian dollars ("C$") and United
States dollars ("US$"). Key features -- Group restructuring and
refinancing initiatives under way -- Management changes: o Harold
Motaung appointed as Chief Executive Officer ("CEO"), effective as
of April 1, 2011 o new senior and technical appointments at Bokoni
operations in progress -- Safety performance improves o no
fatalities o lost time injury frequency rate ("LTIFR") and serious
injury frequency rate ("SIFR") improve o seven shifts lost as a
result of safety-related stoppages (10% of production shifts) --
Production of 22,173 4E ounces for Q1 2011, down by 28% from the
previous quarter, largely as a result of safety stoppages, the
impact of the slow start-up after the Christmas break, and
continued lack of mining flexibility -- ZAR/US$ exchange rate
weakened by 2%, while US$ PGM basket price increased by 4% --
Revenues declined by 29% quarter-on-quarter Harold Motaung,
President and CEO of Anooraq, commented, "Bokoni has faced both
challenges and opportunities in the first quarter which have
respectively impacted on our short-term performance, and, in the
medium to longer term, should bring their own rewards. "Anooraq and
Anglo Platinum Limited ("APL") are currently in discussions
relating to a strategic review by the Parties of the Bokoni Group
assets, capital and financing structures of Bokoni Platinum
Holdings (Pty) Limited ("Bokoni" or the "Bokoni Group"), with a
view to effecting a restructuring and refinancing transaction. This
marks a meaningful step forward in solidifying our partnership with
APL and accelerating our refinancing initiatives announced at the
time of implementing the Bokoni acquisition in July 2009 when we
established the Bokoni Group. "Whilst corporate restructuring and
refinancing initiatives remain important to the Group, our key
focus remains addressing the current operational challenges which
we face at our mine. To that end additional focus at operational
level has been introduced at the Bokoni operations, with an
immediate target to achieve the required production levels of safe
ounces and to generate net free cash. This will require a
multi-faceted approach towards addressing technical or other
current challenges, with a strong emphasis on ensuring that all
stakeholders at Bokoni are motivated for that purpose. "The issue
of safety and safety-related stoppages has been a focus point and
priority during Q1 2011. While the safety-related stoppages that
have been imposed by the South African Department of Mineral
Resources ("DMR") have had a negative impact on production -
effectively reducing our production shifts for the quarter by 10% -
we understand and support the need for a zero tolerance approach to
safety risks. A number of interventions have been put in place at
Bokoni to address issues of non-compliance with health and safety
regulations and to further improve our safety performance. An
internal safety auditing programme has been put in place: any
transgressions result in an immediate internally-imposed stoppage,
and all transgressions must be rectified before mining may
continue. Further, all mining personnel are currently receiving
retraining on mine standards and safe working procedures. "Clearly
though, the most significant issues facing the Bokoni operations
right now are low operating efficiencies and the consequent lack of
volume throughput. Critical to this is the much-needed development
to create mining flexibility, the lack of which continues to hamper
our production output. In addition, we need to improve mining
discipline in order to ensure that stoping systems, controls and
practices are implemented to the required standards. Bokoni
infrastructure and staffing is currently geared for a 120,000
tonnes per month ("tpm") operation and we need to focus on reaching
that consistent level of output in the near future in order to
generate positive cash flows and to achieve the required returns
from our quality asset base. "Our plan remains to reach a
production rate of 160,000tpm (17,600 4E PGM ounces per month) by
2014. Given the current Group strategic review and our recently
reinforced partnership with APL, attention will be focused on
optimising our extensive asset base and extracting maximum value
for all of our stakeholders." Review of operational and financial
performance Safety No fatalities were recorded during the quarter,
and Bokoni's LTIFR improved by 17% quarter-on-quarter to 1.91 per
200,000 hours worked, continuing its downward trend. Similarly, the
SIFR improved by 22% to 1.08 per 200,000 hours worked. Seven shifts
were lost as a result of stoppages in terms of section 54 of the
South African Mine Health and Safety Act (Act 29 of 1996). Anooraq
is determined to address any issues of non-compliance and has
introduced an internal safety audit programme as well as
supervisory training programme known as Rethusanang. In addition,
the Company is currently engaging with the DMR Inspectorate with a
view to better understand the DMR's approach towards safety
standards and protocol. Production Production during the quarter
was below management expectations as the operations faced a number
of challenges including: -- a slow start-up after the 10-day
Christmas break (this is a traditional break in South Africa across
the mining industry); -- production stoppages effected by the DMR;
-- ongoing constraints to mining flexibility; -- lack of mining
discipline; -- lower delivered grade as a result of increased re-
and sub-development; and -- lower recovered grade as a result of
low grade UG2 material being milled during the quarter and the UG2
primary crusher at the plant only being commissioned on 20 March
2011. As a result, Bokoni produced 22,173 4E ounces, a decrease of
28% from the previous quarter, and a decrease of 17% from Q1 2010
(the equivalent period) (4E consists of platinum, palladium,
rhodium and gold). The mine concentrator milled 219,991 tonnes, 21%
lower than Q4 2010, and 4% lower than the equivalent period in
2010. The key production parameters for Bokoni for Q1 2011 are:
Variance Variance Q4 2010 Q1 2011 Q-O-Q Q1 2010 Q1 11 vs Q1 10
Tonnes Tonnes 258,033 201,851 (22%) 232,323 (13%) delivered Total
primary Metres 2,308 2,302 - 3,140 (27%) development Total re- and
Metres 1,486 1,846 24% 820 225% sub-development Head grade g/t,
4.41 4.25 (4%) 4.16 2% (delivered) 4E* Tonnes milled Tonnes 278,242
219,991 (21%) 229,344 (4%) Recovered grade g/t milled, 4.17 3.84
(8%) 4.30 (11%) 4E* 4E ounces Ounces 30,776 22,173 (28%) 26,594
(17%) produced* Metal production was as follows: Variance Variance
Metal Q4 2010 Q1 2011 Q-O-Q Q1 2010 Q1 11 vs Q1 10 Platinum Ounces
17,050 12,136 (29%) 14,258 (15%) Palladium Ounces 10,905 7,987
(27%) 9,820 (19%) Rhodium Ounces 1,679 1,295 (23%) 1,618 (20%) Gold
Ounces 1,142 755 (34%) 898 (16%) Nickel Tonnes 264 94 (64%) 182
(48%) Copper Tonnes 164 153 (7%) 112 37% Costs Given that Bokoni's
cost structure comprises largely fixed costs (79%) and that the
operations have been staffed and structured to produce at
120,000tpm, the lower level of production had an acute impact on
unit operating costs - these increased by 23% quarter-on-quarter,
to US$1,672/4E ounces. Revenue Revenue from the sale of concentrate
for Q1 2011 was $30.7 million (ZAR218.1 million). PGM metal prices
(in US$) increased by 6% during Q1 2011 when compared to the fourth
quarter of 2010. The ZAR/US$ exchange rate remained relatively
flat. The net effect of this was that the ZAR PGM basket price
increased by 6% to US$1,457 (ZAR10,210) per ounce during Q1 2011
when compared to Q4 2010. Profitability Anooraq reported an
operating loss of $19.2 million and a loss before tax of $39.1
million for Q1 2011. The increased operating loss is the result of
lower production at Bokoni, and the increased loss before tax is a
result of higher finance costs incurred during the period. The net
loss (after tax) was $31.4 million or ($0.04) per share (basic and
diluted). Capital expenditure Total capital expenditure for Q1 2011
was $7.8 million, comprising 34% sustaining capital and 66% project
expansion capital. Group restructuring and refinancing Subsequent
to March 31, 2011, Anooraq and APL (the "Parties") entered into
preliminary discussions surrounding a potential transaction between
them. The nature of these discussions surrounds the completion of a
strategic review by the Parties of the assets and financing
structures of and relating to Bokoni Platinum Holdings (Pty)
Limited, with a view to Anooraq effecting a restructuring
transaction in respect thereof (the "Anooraq Restructuring"). In
anticipation of the further potential implementation of the Anooraq
Restructuring, Anooraq has unwound its interest rate hedge
transaction with Standard Chartered Plc ("SCB") and APL has
acquired Anooraq's senior loan obligations with SCB and Rand
Merchant Bank, a division of FirstRand Bank Limited. The
outstanding amount of debt acquired by APL is US$96.4 million
(ZAR671 million) and the ultimate treatment and/or terms associated
with this debt are currently under review between the Parties
within the context of the broader refinancing initiative between
them. Future communication On completion of the Bokoni Group asset
review, Anooraq will provide further guidance on its operating and
financial outlook going forward. Given that Anooraq has
concurrently issued a cautionary announcement to the market today,
pursuant to JSE requirements, it is unable to undertake a
conference call at this time. The Company undertakes to update the
market as soon as it is in a position to do so. Shareholders are
referred to the Company's results presentation available on the
Company's website at www.anooraqresources.com. Neither the TSX
Venture Exchange not its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release. The NYSE Amex has neither approved nor
disapproved the contents of this press release. Cautionary and
forward-looking information This document contains "forward-looking
statements" that were based on Anooraq's expectations, estimates
and projections as of the dates as of which those statements were
made, including statements relating to the Bokoni Group Restructure
and refinancing and anticipated financial or operational
performance. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"outlook", "anticipate", "project", "target", "believe",
"estimate", "expect", "intend", "should" and similar expressions.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. These include but are not limited to:
-- uncertainties related to the completion of the Bokoni Group
Restructure and refinancing; -- uncertainties and costs related to
the Company's exploration and development activities, such as those
associated with determining whether mineral resources or reserves
exist on a property; -- uncertainties related to feasibility
studies that provide estimates of expected or anticipated costs,
expenditures and economic returns from a mining project;
uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
-- uncertainties related to the ability to obtain necessary
licenses, permits, electricity, surface rights and title for
development projects; -- operating and technical difficulties in
connection with mining development activities; -- uncertainties
related to the accuracy of our mineral reserve and mineral resource
estimates and our estimates of future production and future cash
and total costs of production, and the geotechnical or
hydrogeological nature of ore deposits, and diminishing quantities
or grades of mineral reserves; -- uncertainties related to
unexpected judicial or regulatory proceedings; -- changes in, and
the effects of, the laws, regulations and government policies
affecting our mining operations, particularly laws, regulations and
policies relating to o mine expansions, environmental protection
and associated compliance costs arising from exploration, mine
development, mine operations and mine closures; o expected
effective future tax rates in jurisdictions in which our operations
are located; o the protection of the health and safety of mine
workers; and o mineral rights ownership in countries where our
mineral deposits are located, including the effect of the Mineral
and Petroleum Resources Development Act (South Africa); -- changes
in general economic conditions, the financial markets and in the
demand and market price for gold, copper and other minerals and
commodities, such as diesel fuel, coal, petroleum coke, steel,
concrete, electricity and other forms of energy, mining equipment,
and fluctuations in exchange rates, particularly with respect to
the value of the U.S. dollar, Canadian dollar and South African
rand; -- unusual or unexpected formation, cave-ins, flooding,
pressures, and precious metals losses (and the risk of inadequate
insurance or inability to obtain insurance to cover these risks);
-- changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with
critical accounting assumptions and estimates; environmental issues
and liabilities associated with mining including processing and
stock piling ore; -- geopolitical uncertainty and political and
economic instability in countries which we operate; and -- labour
strikes, work stoppages, or other interruptions to, or difficulties
in, the employment of labour in markets in which we operate mines,
or environmental hazards, industrial accidents or other events or
occurrences, including third party interference that interrupt the
production of minerals in our mines. For further information on
Anooraq, investors should review the Company's annual Form 40-F
filing with the United States Securities and Exchange Commission
www.sec.gov and annual information form for the year ended December
31, 2010 and other disclosure documents that are available on SEDAR
at www.sedar.com. To view this
news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/May2011/13/c4235.html p
bRussell and Associates/bbr/ Charmane Russellbr/ Office: +27 11 880
3924br/ Mobile: +27 82 372 5816 /p p align="justify" bMacquarie
First South Advisers/bbr/ Natalie Di-Sante / Melanie de Nysschen /
Annerie Britz / Yvette Labuschagnebr/ Office: +27 11 583 2000 /p
Copyright
Grafico Azioni Anooraq (AMEX:ANO)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Anooraq (AMEX:ANO)
Storico
Da Mag 2023 a Mag 2024