🕐16.02.12 - 07:54 Uhr

VILLAGE ANNOUNCES QUARTER AND INTERIM REPORTS ENDED 31 DECEMBER 2011



Announcement 16 February 2012 Please note that there are two announcements in this email (Both are identical on sens)
Village announces report for quarter and six months ended 31 December 2011
Highlights
- Net cash flow from operations improved quarter on quarter by 397%, from a loss of R47.5 million to a profit of R138.2 million - Record profits and strong cash generation for the quarter - Earnings per share of 16.57 cents per share for Q2 compared to 1.21 cents for Q1 - Net cash flow from operations of R175.1m, a 26.7% improvement quarter on quarter compared to cash generated of R138.2 million in Q1 - Stable gold production of 42 407oz from both Buffels and Tau Lekoa ("Tau"), down 2.7% or 1 210oz lower than in Q1 - Village and DRD Limited ("DRD") jointly announce the potential acquisition by Village of 74% of Blyvooruitzicht Gold Mining Company Limited ("Blyvoor") from DRD for a total consideration of R150 million, which consideration is to be settled through Village issuing 85,714,286 Village shares to DRD at an equivalent price of R1.75 per share - A successful shallow drilling program at Lesego Platinum ("Lesego"), consisting of an additional 18 boreholes concluded during December 2011.

The additional holes confirmed economic intersections of Merensky and UG2 Chromite at depths between 350m and 700m.

Borehole LES049 intersected Merensky Reef at 204m below surface.

- Lesego completes a positive pre-feasibility study meeting all criteria set by the Industrial Development Corporation ("IDC") enabling Lesego to drawdown the remainder of the IDC funding of R54 million which will fully fund the Definitive Feasibility Study ("DFS")
Events after quarter end
- Village announces that a binding agreement has been concluded with DRD in relation to the acquisition of DRDs entire interest in Blyvoor.

In terms of the agreement the acquisition will close in two parts, the part A sale and the part B sale.

As part of the part A sale, Village will acquire all amounts owed to DRD by Blyvoor and as part of the part B sale, Village will acquire the entire 74% equity interest in Blyvoor held by DRD.

Both the part A and part B closure remain subject to certain conditions, as set out in the transaction announcement of 13 February 2012.

- DRD announced a Section 189 process, intended to shut down the loss making operations at its 4 and 6 shafts, in order to ensure Blyvoors financial viability at current gold prices.

- Mr Keith Scott a non-executive director announced that he will resign to pursue personal interests.

The Board thanks Mr Scott for his valuable contribution to Village and wishes him all the best in his future endeavours.

- FIU announced on 14 February 2012 that it is in negotiations to dispose of all or some of its assets.

Village reminds its shareholders that it remains the owner of 5,7% of the ordinary equity of FIU, as well as 392 874 well-secured Mine Waste Solution Rand Notes ("MWS Rand Notes") with a face value of R392,8 million.

In the event that a transaction is concluded by FIU, this will result in the value of the equity investment as well as the investment in the MWS Rand Notes being crystallised by Village.

Village has consistently indicated that it would distribute the bulk of the proceeds from this realisation to its shareholders by way of a special dividend
CEO Tele-conference call 16 February 2012 15h00 [GMT+2]
Live Call Access Numbers South Africa - Johannesburg 011 535 3600 USA (Toll) 412 858 4600 UK (Toll-Free) 0 800 917 7042 South Africa - Johannesburg alternate 010 201 6616 South Africa - Cape Town 021 819 0900 South Africa (Toll-Free) 0 800 200 648 Other Countries (Intl Toll) +27 11 535 3600
Playback Access Numbers code - 20078# South Africa 011 305 2030 USA and Canada 412 317 0088 Other countries +27 11 305 2030 UK (Toll Free) 0 808 234 6771
Quarterly production summary
GOLD
Dec Quarter 2011 Sept Quarter 2011 ANTIMONY Dec Quarter 2011 Sept Quarter 2011
Tau Lekoa Buffels TOTAL TOTAL
Cons Murch Cons Murch
Tons milled - underground 252 749 110 223 362 972 360 715 Tons milled 54 399 64 676
Recovered grade - Au g/t - 3.54 3.85 3.63 3.76 Recovered grade - Au g/t 1.25 1.13
Gold produced underground - kg 895 424 1 319 1 357
Recovered grade - Sb % 0.88 1.7
Gold produced - total oz 28 774 13 632 42 406 43 617 Gold produced - oz 2 219 2 366
Gold produced - total Kg 895 424 1 319 1 357 Antimony produced - tonnes 837 1 448
Realised gold price - R/kg
435 677 390 593 Realised antimony price - R/t 55 842 41 517
Cash cost - R/kg 250 347 331 834 282 631 283 141 Cash cost - R/ton1 1 414 1 173
Notional cost - R/kg 282 007 349 395 303 808 311 607 Notional cost - R/ton1 1 661 1 450
1.

Excludes gold revenue credits
Prospects
The table below provides some guidance as to the expected performance of the operations for Q3 FY2012.


Description Forecast Q3
Tau BGM
Cons Murch
Tau and Buffels
Gold Produced - kg 860 370 Gold Produced - kg 73
Antimony produced
Antimony produced 1 200
Tons milled 62 820
Cash cost / kg 244 549 361 492 Cash cost / R ton milled 1 117
Pumping costs / kg - 40 543 Other cash costs / R ton milled 1
Capital expenditure / kg 26 658 35 039 Capital expenditure / R ton milled 202
Notional cost / kg 271 207 437 074 Notional cost / R ton milled pre gold credit 1 320
Realised gold price 420 000 420 000 Realised antimony price / R ton 44 180
Cash flow pre debt / kg 148 793 (17 074) Gold credits / R ton milled 466
Debt repayment / kg 30 227 30 227 Free cash flow / Rton milled 38
Free cash flow / kg 118 566 (47 301)
-
The above forecast information have not been reviewed and reported on by Villages auditors in accordance with paragraph 8.40 (a) of the JSE Listing Requirements
Statement by Chief Executive Officer
This second quarter of FY2012 heralded a period of consolidation for Village after the frenetic activity on operational and corporate level experienced since the acquisition of the Simmer and Jack Mines Limited assets during June 2011.

That being said, we announced the potential acquisition of a 74% interest in Blyvoor from DRD, an asset which we believe will fit very nicely within the Village stable.


As advised during the previous quarter, Cons Murch had a difficult quarter, with production materially lower (42%) at 837 tons of antimony compared to the record antimony production of 1 448 tons reported during the previous quarter.

Production at Cons Murch was negatively impacted during the early part of the quarter due to a labour dispute, which resulted in Cons Murch dismissing 849 employees with a resultant loss of 20 production shifts during the period.

The dispute with our employees was settled during October 2011 and all employees were re-employed.

Production at Cons Murch was further impacted by a fatal injury, the first such incident in 6 years, at the mine during November 2011, resulting in a prolonged Section 54 stoppage of all operations.


Production at our two gold operations was largely stable, with overall gold production only 2.7% lower than that of the previous quarter. Notwithstanding the above, record high Rand/Kg gold prices combined with stable production from the gold operations have resulted in operating profit from operations increasing by 9% to R160 million.

Cash generated from operations increased by some 27% to R175.1 million for the quarter.

This equates to some 18.8 cents per share.
At our Lesego platinum project we reached a substantial milestone with the successful completion of the pre-feasibility study ("PFS"), which confirmed an economically viable defined ore body between depths of 700 - 2000m below surface.

The PFS met all criteria set by both Village and the IDC, enabling Lesego to drawdown the remaining R54 million required to complete the Definitive Feasibility Study.

Village also completed a shallow drilling program which delineated additional Merensky Reef between depths of 204m and 700m below surface, with UG2 Chromitite intersected at depths between 470m and 900m.

The efforts continue to increase the value of Lesego, proving it up into a large, shallow to medium depth, high grade ore body, with a current inferred platinum resource in excess of 41 million ounces.


As reported in the September quarter, Village assumed liability for a loan advanced to Simmers by Aberdeen International ("Aberdeen") in 2006.

A settlement was reached with Aberdeen in relation to the long standing dispute surrounding this loan.

In terms of the settlement, Village agreed to pay Aberdeen a total of US$9 million.

Village has settled US$7 million of this obligation, and the final US$2 million is due to be settled during Q3 of FY2012.


Apart from the fatal accident at Cons Murch, Buffels also had a serious accident on 11 December 2011, with one of the seriously injured workers subsequently dying.

The Board and management wish to convey their condolences to the friends and family.


Financial review
The table below sets out the unaudited results of the operations for the quarter.
VILLAGE MAIN REEF LIMITED SELECTED FINANCIAL INFORMATION Q2 FY2012 R000 Q1 FY2012 R000 Variance Q2 2012 vs. Q1 2012 % Reviewed H1 FY2012 R000 Reviewed 9 months FY2011 R000
Statement of Comprehensive Income Continuing operations
Revenue 693 382 594 426 17% 1 287 808 948 361
Total cash cost1 ( 446 024) ( 402 754) 11% ( 848 778) ( 872 446)
Total cash operating profit / (loss) 247 358 191 672 29% 439 030 75 915
Production-related depreciation ( 28 217) ( 26 853) 5% ( 55 070) ( 43 283)
Rehabilitation expenses ( 1 423) - 0% ( 1 423) -
Operating profit / (loss) from mining activities 217 718 164 819 32% 382 537 32 632
Non-production related depreciation ( 1 592) ( 1 571) 1% ( 3 163) ( 3 984)
Other income 4 537 17 087 (73%) 21 624 12 085
Share options costs ( 6 877) ( 3 635) 89% ( 10 512) -
General administrative and overhead expenditure2 ( 48 246) ( 30 587) 58% ( 78 833) ( 146 706)
Profit / (loss) from operations before interest and taxation 165 540 146 113 13% 311 653 ( 105 973)
Fair value adjustments3 32 721 ( 166 561) (120%) ( 133 840) ( 16 400)
Impairments and environmental rehabilitation adjustments4 ( 8 992) 14 335 (163%) 5 343 ( 4 581)
Profit/(Loss) from equity-accounted investment - - 0% - ( 224 144)
Profit from partial disposal of investment in associate - 51 299 (100%) 51 299 -
Restructuring Costs5 16 272 ( 2 714) (700%) 13 558 ( 8 060)
Profit on non-current assets held for sale - - 0% - -
Realisation of foreign currency translation reserve6 7 257 25 205 (71%) 32 462 -
Gain on bargain purchase - - 0% - -
Foreign exchange gains / (losses)8 ( 34 728) - 0% ( 34 728) 4 759
Business optimisation project8 ( 14 000) - 0% ( 14 000) -
Aberdeen dispute settlement expense9 ( 73 129) - 0% ( 73 129) -
Net finance income / (charges) 46 151 ( 22 953) (301%) 23 198 ( 9 611)
Profit / (loss) before taxation from continuing operations 137 092 44 724 207% 181 816 ( 364 010)
Loss from discontinuing operations 8 640 ( 8 695) (199%) ( 55) ( 13 825)
Profit / (loss) before taxation 145 732 36 029 304% 181 761 ( 377 835)
Statement of Financial Position
Total assets 2 963 191 2 562 468 16% 2 963 191 3 644 334
Cash and equivalents 309 600 307 634 1% 309 600 161 247
Financial assets 390 047 374 873 4% 390 047 315 054
Current liabilities ( 514 647) ( 604 465) (15%) ( 514 647) ( 297 551)
Non-current liabilities ( 478 234) ( 495 244) (3%) ( 478 234) (597 338)
Total equity (1 970 310) (1 457 030) 35% (1 970 310) (2 749 445)
Comments
1 - Total cash costs are costs directly related to the physical activities of producing gold and include mining costs, administrative costs, royalties, on-mine drilling expenditures that are related to production and other direct costs.

Sales of by-product metals are deducted from the above in computing cash costs.

Cash costs exclude depreciation, depletion and amortisation, corporate general and administrative expenses, exploration costs, finance charges, and pre-feasibility costs and accruals for mine reclamation but include central costs such as human resources and technical services. 2 - General and administrative expenditure includes an abnormal cost of R11.6 million in relation to costs incurred as a result of the strike action at Cons Murch.

Included in general and administrative expenses is the Buffels contribution in relation to Margaret Water Company pumping costs amounting to R4.3 million for the quarter.

Actual administrative expenses for the quarter were R32 million. 3 - Fair value adjustments relate to the contingent liability in relation to the 1% perpetual liability payable to Aberdeen from all gold produced at Buffels, R3.8 million fair value loss; a write up in the value of the Mine Waste Solution Rand Notes of R22.3 million to account for the reduced period to maturity; a decrease in the Deutsche Bank Gold Forward liability of R19.2 million; a mark to market loss in relation to the remaining equity investment in First Uranium Corporation of R5 million. 4 - This relates to the normal increase in the provision for rehabilitation liabilities over the quarter at all of the Village operations. 5 - This relates to a reversal of an over provision in relation to restructuring costs for the Buffels restructuring.

Total employees affected by the restructuring was lower than initially anticipated.

Restructuring costs were accounted for in full during Q5 and Q1 periods. 6 - Realisation of the remainder of the foreign currency translation reserve in relation to the accounting for the investment in FIU as an investment in associate, with the disposal of the majority of the Village shareholding in FIU to AngloGold, the investment was reclassified as a financial asset held for sale. 7 - Foreign exchange gains and losses are incurred on the repayment of the Deutsche Bank forward gold agreement, as well as the Aberdeen royalties.

An amount of R20,8 million relate to foreign exchange losses incurred during Q1, which was disclosed as finance charges, the disclosure was changed during Q2 and the actual charge for Q2 was R13,9 million. 8 - Village has embarked on a business optimisation process at Tau.

The process is aimed at increasing gold production and will be completed towards the end of June 2012.

A further approximate expense of R42 million will be incurred during the remainder of the project. 9 - Village reached settlement with Aberdeen in relation to the loan portion of the Aberdeen agreement.

In terms of the agreement, Village will pay Aberdeen US$9 million.

Village paid US$7 million during this quarter and the remaining US$2 million will be settled during Q3.
Group revenue for the quarter was R693 million, whilst group cash costs were R452 million, resulting in an improved positive operating cash flow of R241.6 million.

After capital expenditure of R43.5 million, and accounting for other income and general and administrative expenses, the group generated net cash flow from operations of R175.1 million which is 26.7% higher than the September quarters net cash flow from operations of R138.2 million.

Cash generated as disclosed above, was reduced by the following items, R56 million payment to Aberdeen under the settlement agreement; R14 million payment to consultants in relation to the business improvement project at Tau; instalments under the first and second gold forward agreement entered into with Deutsche Bank R44.6 million as well as Villages pro-rata funding in relation to the shallow drilling program at Lesego R22 million.


Operational review
Tau
Total gold produced at Tau decreased by 4% to 895kg from 928kg produced during the previous quarter.

The decrease is attributable to a decline in overall gold yield to 3.54 g/t compared to the 3.67 g/t achieved during the previous quarter.

Tons milled from underground decreased by 3%.


Taus gold revenue increased by 8% to R390 million from R360 million in Q1. The increase is attributed solely to the higher realised Rand per kilogram gold price achieved during the quarter, of R435,677kg compared to R390,470kg in the previous quarter.


Total cash costs increased quarter on quarter by 3% to R224 million (US$ 960/oz) from R217 million (US$ 1 021/oz) in the previous quarter.

The increase in cost was as a result of accounting for a release of gold inventory over the Christmas period, where gold released from inventory is accounted for at the prevailing gold price at the time of release and not at cost of production; as well as higher royalty payments to AngolGold Ashanti as a result of the higher Rand per kilogram gold price.

The increase in cash costs were partially offset by the decrease in electricity costs due to the lower summer tariffs.

Cash operating profit at Tau was 17% higher quarter on quarter at 165.8 million.


Buffels
The team at Buffels maintained production at levels achieved during the previous quarter with monthly production averaging 140kg of gold.

Total gold production from Buffels was 424kg which was slightly lower than the 428kg produced during Q1.

Underground grade decreased from 3.89 g/t in Q1 to 3.78 g/t in Q2.
Gold revenue increased by 9% during the quarter to R185 million compared to R170 million the previous quarter.

The increase in revenue is mostly attributed to a 10% increase in the rand gold price per kilogram achieved during the quarter.


Total cash costs decreased quarter on quarter by 11% from R167 million in Q1 to R149 million in this quarter.

Overall costs were well controlled with some reduction in labour costs materialising during the quarter as well as lower summer tariffs.


Buffels made a cash operating profit of R36 million, compared to a cash operating profit of R2.8 million during Q1.


South Plant (Buffels plant)
Recoveries at South plant improved slightly during the quarter to an average of more than 94%.

South plant continues to operate well and some initiatives are underway to reduce operating unit cost further.


Cons Murch
As indicated earlier in the report, Cons Murch experienced a difficult operational quarter, with 20 production days lost as a result of the unprotected strike action during October 2011.

A further 7 shifts were lost as a result of a Section 54 issued following the fatality at the mine. Antimony production quarter on quarter was 42% lower at 837 tons (Q1 1448 tons).

Cons Murch produces gold as a by-product from its antimony production, gold production for the quarter was 69 kg, some 7% lower than the 74kg produced during Q1.


Revenue from antimony sales of R52.5 million (Q1:R60.1m) and gold revenue of R31.6 million (Q1:R31.6m) was achieved during the quarter.

Total cash costs of R65.9 million (Q1:R75.9m) was some 13% lower than Q1 mostly as a result of decreased power costs due to lower summer tariffs, as well as lower wage costs resulting from the labour dispute.

Cons Murch achieved a cash operating profit of R19.4 million for the quarter, a significant achievement under the difficult circumstances.


A total of R13.4 million was spent during the quarter on capital to improve recoveries at the plant, to provide more flexibility in mining the ore body and to develop a surface decline around the old Gravelotte shaft, a high grade antimony area.

Most capital projects related to the plant have now been completed and recovery of both antimony and gold is expected to increase in future.
Shaft deepening and the related secondary development continued at both Monarch and Athens shafts with a focus on creating flexibility and access towards antimony rich areas.

Drill work in these areas has confirmed that antimony grades are higher than current grades achieved.

A feasibility study looking at the potential to deepen the Beta shaft, in a similar manner to the work undertaken at Monarch and Athens are currently underway.


Lesego
Q4 2011 saw the completion of the Pre Feasibility Study ("PFS") carried out by DRA as the principle study consultant.

This study confirmed that an underground mining operation producing a combined total of 300ktpm of Merensky and UG2 ore is economically viable.

On the strength of these findings the company made its 3rd and final drawdown of R54m, bringing the total funding from the Industrial Development Corporation of South Africa ("IDC") to R142 million.

The final tranche of funding will be used to complete the Definitive Feasibility Study ("DFS").

The 3rd and final study phase in the DFS process is set to kick off in April 2012 once the final optimization studies have been completed and mine parameters finalised. These parameters will include the results of the shallow drilling programme, which appear to indicate that the ore body is economically viable from a starting depth of around 350m, a significant enhancement on the 700m depth used in the PFS.


Grades and widths continue to show consistency at resource averages of 6.61 g/t over 1.15 m.

As previously reported the ore demonstrates good recovery characteristics of between 84% and 86% resulting in concentrate grades of between 112 g/t and 140 g/t for the combined Merensky and UG2 ores.


In Q4 2011 a total of R16.5 m was spent on feasibility activities compared to R17.6m during the previous quarter which continues to be capitalised to the project. Contacts:
Village CFO | Marius Saaiman | | 082 458 3420
Vestor | Media and Investor Relations | Louise Brugman | | 011 787 3015 | 083 504 1186
Please note that a recording on the conference call will also be made available on www.villagemainreef.co.za after the call.


xxxxxxxxxxxxxxxxxxxxxxxx Second announcement
Reviewed condensed consolidated interim results for the 6 months ended 31 December 2011
* The results presented for this half year present the results for the first six-month period where Village was the owner of both Tau Lekoa ("Tau") and Buffelsfontein Gold Mine ("Buffels").

The comparative numbers presented reflect in essence the results of the operations of Simmers and Jack Mines Limited ("Simmers") as the owners of Tau and Buffels in line with the requirements of IFRS 3 - Business Combinations and particularly the accounting treatment in relation to reverse take-overs.

This is consistent with the approach taken in the annual report of Village for the 15 months ended 30 June 2011.


Highlights
- Net cash generated by operations for the six months of R313,3 million - a substantial turnaround compared to the results achieved by the operations during the comparative period. - Production at all operations stable, with a significant turnaround completed at Buffels, resulting in Buffels returning to profitability during the December quarter. - Village materially strengthening its balance sheet through the successful disposal of 19,79% of its equity interest in First Uranium Corporation ("FIU") to AngloGold Ashanti for R205 million.

- At Lesego Platinum ("Lesego") a platinum resource of 41,8 Moz confirmed, with some 4,8 million ounces in the measured category.

Lesego successfully completed a shallow drilling programme, confirming economic intersections of Merensky and UG2 chromite at depths between 350 m and 700 m. - Lesego completed a positive pre-feasibility study meeting all criteria set by the Industrial Development Corporation ("IDC") enabling Lesego to draw down the remainder of the IDC funding of R54 million which will fully fund the definitive feasibility study ("DFS"). - Settlement reached over long-standing dispute with Aberdeen International, resulting in Village having to pay Aberdeen US$9 million in full and final settlement. - Village and DRD Limited ("DRD") jointly announce the potential acquisition by Village of Blyvooruitzicht Gold Mining Company Limited ("Blyvoor") from DRD for a total consideration of R150 million to be settled through Village issuing 85 714 286 Village shares to DRD.


Events after reporting period
- Village announces that a binding agreement has been concluded with DRD in relation to the acquisition of DRDs entire interest in Blyvoor.

In terms of the agreement the acquisition will close in two parts, the part A sale and the part B sale.

As part of the part A sale, Village will acquire all amounts owed to DRD by Blyvoor and as part of the part B sale, Village will acquire the entire 74% equity interest in Blyvoor held by DRD.

Both the part A and part B closures remain subject to certain conditions, as set out in the transaction announcement of 13 February 2012.


- DRD announced a Section 189 process, intended to shut down the loss-making operations at its 4 and 6 shafts, in order to ensure Blyvoors financial viability at current gold prices.


- Mr Keith Scott, a non-executive director, announced that he will resign to pursue personal interests.

The board thanks Mr Scott for his valuable contribution to Village and wishes him all the best in his future endeavours.
- First Uranium Corporation ("FIU") announced on 14 February 2012 that it is in negotiations to dispose of all or some of its assets.

Village reminds its shareholders that it remains the owner of 5,7% of the ordinary equity of FIU, as well as 392,874 well-secured Mine Waste Solution Rand Notes ("MWS Rand Notes")with a face value of R392,8 million.

In the event that a transaction is concluded by FIU this will result in the value of the equity investment as well as the investment in MWS Rand Notes being crystallised by Village.

Village has consistently indicated that it would distribute the bulk of the proceeds from this realisation to its shareholders by way of a special dividend.
Condensed consolidated statement of financial position at 31 December 2011
31 December 31 December 30 June 31 March
2011 2010 2011 2010
Notes R000 R000 R000 R000
Assets
Non-current assets
Property, plant and equipment
1 772 857 1 195 974 1 761 030 583 932
Investment property
21 888 33 517 28 859 32 956
Investment in rehabilitation trust fund
124 558 119 853 124 558 119 853
Intangible assets
83 063 - 83 063 -
Financial assets 5 383 537 311 578 343 362 21 852
Reimbursive asset
95 553 71 227 95 553 71 227
Investment in associate
- 1 669 139 - 2 001 030
Total non-current assets
2 481 456 3 401 288 2 436 425 2 830 850
Current assets
Financial assets 5 6 510 3 476 4 750 110 594
Trade and other receivables
107 630 40 146 69 098 99 065
Inventories
51 765 34 177 44 119 18 054
Cash and cash equivalents
309 600 161 247 170 298 612 082
Total current assets
475 505 239 046 288 265 839 795
Non-current assets held for sale 6 6 230 4 000 251 995 4 903
Total assets
2 963 191 3 644 334 2 976 685 3 675 548
Equity and liabilities
Equity
Stated capital
486 500 - 486 500 -
Retained earnings
1 424 444 2 647 942 1 242 278 3 025 777
Fair value reserve
12 146 11 738 12 146 11 738
Non-distributable reserve
2 911 89 765 32 462 89 765
Minority interest
44 309 - 44 714 -
Total equity
1 970 310 2 749 445 1 818 100 3 127 280
Non-current liabilities
Financial liabilities
196 638 322 648 223 510 210 044
Deferred tax
20 458 - 20 458 -
Provision for environmental rehabilitation
261 138 274 690 282 760 210 850
Total non-current liabilities
478 234 597 338 526 728 420 894
Current liabilities
Financial liabilities
228 577 15 064 160 890 13 657
Trade and other payables
282 519 244 502 392 744 113 717
Retirement benefit obligations
3 551 - 3 723 -
Bank overdraft
- 37 985 28 811 -
Total current liabilities
514 647 297 551 586 168 127 374
Non-current liabilities held for sale 6 - - 45 689 -
Total liabilities
992 881 894 889 1 158 585 548 268
Total equity and liabilities
2 963 191 3 644 334 2 976 685 3 675 548
Condensed consolidated statements of comprehensive income for the 6 months ended 31 December 2011
6 months 9 months
ended ended
31 December 31 December
2011 2010
Notes R000 R000
Revenue
1 287 808 948 361
Cost of sales
(877 044) (915 729)
Gross profit
410 764 32 632
Other income
21 624 12 085
Operating, administrative and general expenses
(81 996) (150 690)
Operating profit/(loss)
350 392 (105 973)
Finance income
29 084 43 053
Restructuring cost
13 558 (8 060)
Fair value adjustment
(133 840) (16 400)
Impairment of assets and associate
(22 883) (4 581)
Profit from partial disposal of investment in associate held for sale
51 299 -
Foreign exchange (losses)/gains
(34 728) 4 759
Aberdeen dispute settlement expense
(73 129) -
Business optimisation project
(14 000) -
Share-based payment expenses
(10 512) -
Share of loss in associate
- (224 144)
Finance cost
(5 887) (52 664)
Profit/(loss) from continuing operations
149 354 (364 010)
Loss from discontinued operations
(55) (13 825)
Profit/(loss) before taxation
149 299 (377 835)
Taxation
- -
Profit/(loss) for the period
149 299 (377 835)
Other comprehensive income:
Foreign currency translation reserve 6 32 462 -
Total comprehensive income for the period
181 761 (377 835)
Profit attributable to:
Owners of the parent
149 704 (377 835)
Non-controlling interest
(405) -
Profit/(loss) for the period
149 299 (377 835)
Total comprehensive income:
Owners of the parent
182 166 (377 835)
Non-controlling interest
(405) -
Total comprehensive income for the period
181 761 (377 835)
Basic earnings/(loss) per share 4
>From continuing operations (cents per share)
16,57 (60,92)
>From discontinued operations (cents per share)
(0,01) (2.31)
Diluted earnings/(loss) per share 4
>From continuing operations (cents per share)
16,57 (60,92)
>From discontinued operations (cents per share)
(0,01) (2.31)
Headline earnings/(loss) per share 4
>From continuing operations (cents per share)
12,06 (62,47)
>From discontinued operations (cents per share)
(0,01) (2,31)
Diluted headline earnings/(loss) per share 4
>From continuing operations (cents per share)
12,06 (62,47)
>From discontinued operations (cents per share)
(0,01) (2,31)
Condensed consolidated statement of changes in equity for the 6 months ended 31 December 2011
Stated capital Retained earnings Fair value reserve Foreign currency translation reserve
R000 R000 R000 R000
Balance as at 31 March 2010 - 3 025 777 11 738 89 765
Loss for the period - (377 835) - -
Other comprehensive income - - - -
Balance as at 31 December 2010 - 2 647 942 11 738 89 765
Reverse acquisition share issue 486 500 - - -
Loss for the period - (1 462 967) - -
Other comprehensive income - 57 303 408 (57 303)
Balance as at 30 June 2011 486 500 1 242 278 12 146 32 462
Profit for the period - 149 704 - -
Other comprehensive income - 32 462 - (32 462)
Share options expensed during the period - - - -
Balance as at 31 December 2011 486 500 1 424 444 12 146 -
Share option reserve Equity attributable to owners of the parent Non- Control-ling interest Total equity
R000 R000 R000 R000
Balance as at 31 March 2010 - 3 127 280 - 3 127 280
Loss for the period - (377 835) - (377 835)
Other comprehensive income - - - -
Balance as at 31 December 2010 - 2 749 445 - 2 749 445
Reverse acquisition share issue - 486 500 44 714 531 214
Loss for the period - (1 462 967) - (1 462 967)
Other comprehensive income - 408 - 408
Balance as at 30 June 2011 - 1 773 386 44 714 1 818 100
Profit for the period - 149 704 (405) 149 299
Other comprehensive income - - - -
Share options expensed during the period 2 911 2 911 - 2 911
Balance as at 31 December 2011 2 911 1 926 001 44 309 1 970 310
Condensed consolidated statement of cash flow for the 6 months ended 31 December 2011
6 months 9 months
ended ended
31 December 31 December
2011 2010
Notes R000 R000
Cash generated from operations
87 103 262 271
Finance cost
(5 887) (52 664)
Finance income
29 084 43 053
Cash generated from operating activities
110 300 252 660
Cash flow from investing activities
Net additions of property, plant and equipment and investment property
(73 374) (206 482)
Net proceeds on disposal of non-current assets held for sale
211 199 -
Cash paid in respect of acquisition of Tau Lekoa
- (450 000)
Cash invested in Mine Waste Solution Notes
- (296 084)
Proceeds from Loans repaid
- 113 476
Loans issued to related parties
(1 760) -
Cash flow from investing activities
136 065 (839 090)
Cash flow from financing activities
(Repayment of)/proceeds from loans classified as financial liabilities
(78 252) 97 610
(78 252) 97 610
Net increase/(decrease) in cash and cash equivalents
168 113 (488 820)
Cash and cash equivalents at the beginning of the period
141 487 612 082
Cash and cash equivalents at the end of the period
309 600 123 262
Notes to the condensed interim financial statements for the 6 months ended 31 December 2011
1.

Significant accounting policies 1.1 General information Village transformed itself from an exploration holding company with a very exciting brownfields platinum project, Lesego Platinum Limited (Lesego), into a mining company, with operating assets in two gold operations, Buffels and Tau Lekoa, an antimony/gold producer in Cons Murch, as well as a gold processing plant at Buffelsfontein.
1.2 Basis of preparation The condensed interim consolidated financial statements are for the six months ended 31 December 2011 and have been prepared in accordance with IAS 34 Interim Financial Reporting as well as the AC 500 standards as issued by the Accounting Practices Board, the JSE Listings Requirements and the requirements of the Companies Act of South Africa, 2008 as amended.

They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2011.

These accounting policies are consistent with the previous annual financial statements.

The condensed interim financial statements have been reviewed by PricewaterhouseCoopers (PwC) whose unqualified review report is available for inspection at the Groups registered office.
1.3 Estimates and accounting policies The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.

Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Groups accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 June 2011.
2.

Events after reporting period
- Village announces that a binding agreement has been concluded with DRD in relation to the acquisition of DRDs entire interest in Blyvoor.

In terms of the agreement the acquisition will close in two parts, the part A sale and the part B sale.

As part of the part A sale, Village will acquire all amounts owed to DRD by Blyvoor and as part of the part B sale, Village will acquire the entire 74% equity interest in Blyvoor held by DRD.

Both the part A and part B closures remain subject to certain conditions, as set out in the transaction announcement of 13 February 2012.


- DRD announced a Section 189 process, intended to shut down the loss-making operations at its 4 and 6 shafts, in order to ensure Blyvoors financial viability at current gold prices.


- Mr Keith Scott, a non-executive director, announced that he will resign to pursue personal interests.

The board thanks Mr Scott for his valuable contribution to Village and wishes him all the best in his future endeavours.
- FIU announced on 14 February 2012 that it is in negotiations to dispose of all or some of its assets.

Village reminds its shareholders that it remains the owner of 5,7% of the ordinary equity of FIU, as well as 392,874 well-secured Mine Waste Solution Rand Notes ("MWS Rand Notes")with a face value of R392,8 million.

In the event that a transaction is concluded by FIU this will result in the value of the equity investment as well as the investment in MWS Rand Notes being crystallised by Village.

Village has consistently indicated that it would distribute the bulk of the proceeds from this realisation to its shareholders by way of a special dividend.
3.

Segmental reporting The Groups mining and exploration activities are conducted mainly to produce and explore gold, antimony and platinum commodities.

An analysis of the Groups operating segments is set out below per these commodities.
Platinum Antimony Gold Corporate Total
2011 R000 R000 R000 R000 R000
Profit/(loss)
Revenue - 150 431 1 104 555 - 1 254 986
Cost of production - (96 362) (747 860) - (844 222)
Gross profit - 54 069 356 695 - 410 764
Other income 22 1 522 19 912 168 21 624
General administrative and overhead expenditure (2 723) (22 839) (47 134) (9 300) (81 996)
Operating (loss)/profit (2 701) 32 752 329 473 (9 132) 350 392
Finance income 342 1 366 - 27 376 29 084
Restructuring costs - - 13 558 - 13 558
Net movement in fair value - - (107 364) (26 476) (133 840)
Impairment of assets and associate investment - - (22 883) - (22 883)
Profit from partial disposal of investment in associate held for sale - - - 51 299 51 299
Foreign exchange losses - - (34 728) - (34 728)
Aberdeen dispute settlement expense - - (73 129) - (73 129)
Business optimisation project - - (14 000) - (14 000)
Share-based payment expense - - - (10 512) (10 512)
Finance charges - (211) (5 376) (300) (5 887)
(Loss)/profit on ordinary activities (2 359) 33 907 85 551 32 255 149 354
Loss from discontinued operations - - (55) - (55)
Other comprehensive income
Foreign currency translation reserve - - - 32 462 32 462
Total comprehensive (loss)/profit for the year (2 359) 33 907 85 496 64 717 181 761
Total assets 439 158 376 053 1 470 014 677 966 2 963 191
Total liabilities 4 290 (105 526) (836 393) (55 252) (992 881)
Platinum Antimony Gold Corporate Total
2010 R000 R000 R000 R000 R000
Profit/(loss)
Revenue - - 948 361 - 948 361
Cost of production - - (915 729) - (915 729)
Gross profit - - 32 632 - 32 632
Other income - - 11 846 239 12 085
General administrative and overhead expenditure - - (61 404) (89 286) (150 690)
Operating loss - - (16 926) (89 047) (105 973)
Finance income - - (1 846) 44 899 43 053
Restructuring costs - - (8 060) - (8 060)
Net movement in fair value - - 97 265 (113 665) (16 400)
Profit from partial disposal of investment in associate held for sale - - (4 581) - (4 581)
Foreign exchange gains - - 4 759 - 4 759
Share of loss in associate - - (224 144) - (224 144)
Finance charges - - (12 127) (40 537) (52 664)
Loss on ordinary activities - - (165 660) (198 350) (364 010)
Loss from discontinued operations - - (13 825) - (13 825)
Other comprehensive income - - (179 485) (198 350) (377 835)
Foreign currency translation reserve - - - - -
Total comprehensive loss for the year - - (179 485) (198 350) (377 835)
Total assets - - 1 522 680 2 121 654 3 644 334
Total liabilities - - (774 189) (120 700) (894 889)
6 months 9 months
ended ended
31 December 31 December
2011 2010
R000 R000
Reconciliation between earnings/(loss) and headline earnings/(loss):
Net loss from continuing operations 149 354 (364 010)
Net loss from discontinued operations (55) (13 825)
Basic earnings/(loss) for the year 149 299 (377 835)
Add back:
Non-controlling interest 405 -
Attributable to the owners of the parent 149 704 (377 835)
Impairment of assets and associate 22 883 4 581
Profit from disposal of investment in associate classified as held for sale (51 299) -
Profit from sale of assets (12 597) -
Headline earnings/(loss) for the year 108 691 (373 254)
Basic loss per share (cents) from continuing operations* 16,57 (60,92)
Basic loss per share (cents) from discontinued operations* (0,01) (2,31)
Total basic loss per share (cents)* 16,56 (63,23)
Diluted loss per share (cents) from continuing operations* 16,57 (60,92)
Diluted loss per share (cents) from discontinued operations* (0,01) (2,31)
Total diluted loss per share (cents)* 16,56 (63,23)
Headline loss per share (cents) from continuing operations* 12,06 (62,47)
Headline loss per share (cents) from discontinued operations* (0,01) (2,31)
Diluted headline loss per share (cents) from continuing operations* 12,06 (62,47)
Diluted headline loss per share (cents) from discontinued operations* (0,01) (2,31)
Net asset value per share (cents) 218,54 460,15
* Based on weighted average number of shares in issue
Weighted average number of ordinary shares in issue 901 575 597 512
Adjusted for: - -
- Share options - -
Weighted average number of ordinary shares for diluted earnings per share 901 575 597 512
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.
5.

Financial assets During the interim period ending 31 December 2011, the Mine Waste Solution convertible rand notes, classified as financial assets at fair value through profit and loss, were revalued to their fair value.

This resulted in a fair value gain of R22,4 million which has been included in the statement of comprehensive income through profit and loss.
The investment in First Uranium Corporation was reclassified from non-current assets held for sale to available-for-sale financial assets. Please refer to note 6 (Non-current assets held for sale) for more details.
6.

Non-current assets/(liabilities) held for sale 6.1 Investment in First Uranium Corporation Village disposed of 19,8% of its equity interest in FFIU to AngloGold Ashanti for R205 million on 27 July 2011.

The remaining portion held is now 5,7%.

Due to the decrease in holding, FIU is now no longer classified as an investment in associate.

The investment was reclassified from non-current assets held for sale to available-for-sale financial assets, which subsequently triggered the release of the foreign currency translation reserve of R32,462 million relating to the equity accounting of the FIU investment in associate.
6.2 Disposal of Duff Scott Hospital The disposal of Duff Scott Hospital was concluded with effect on 1 November 2011.

In terms of the disposal, Village will pay R5,2 million towards the settlement of Duff Scotts outstanding creditors and liabilities.

The liabilities of Duff Scott exceeded its assets resulting in a profit on disposal of R9,696 million.

Together with the loss from operations for the period of R9,751 million, the loss from the discontinued operations amounted to R55 000.
Directors emoluments will be disclosed in full details in the directors report to the annual report
The financial information was prepared by Fritz-Jan van der Westhuizen (qualified chartered accountant) in his capacity as Group financial controller under the supervision of Marius Saaiman (qualified chartered accountant) in his capacity as Financial Director
The reviewed condensed statements have been reviewed by PwC and the review report is available for inspection at the companys offices.
Logo_sharper02 media & investor relations
louise brugman managing director Tel: +27 (0) 11 787 3015 Cell: +27 (0) 83 504 1186 skype louise.brugman Email: Web: www.vestor.co.za







Products & Services | Jobs