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Wits Gold: Summarised Provisional Audited Results for the year ended 31 December 2012

March 25, 2013

Witwatersrand Consolidated Gold Resources Limited
(“Wits Gold” or the “Company”)
(Registration Number 2002/031365/06)
JSE Share Code: WGR        
ISIN: ZAE000079703
TSX Share Code: WGR
CUSIP Number: S98297104

JOHANNESBURG, March 25, 2013 /CNW/ -

Summarised provisional audited results for the year ended 31 December
2012
All figures quoted in South African Rand unless otherwise stated.
Bank of Canada noon rate at 19 March 2012: R9.03 = CAD$1, 31 December
2012: R8.53 = CAD$1)

Mr DM Urquhart (CA (SA)), Financial Director, was responsible for
supervising the preparation of the financial statements and preparing
these financial statements.

In the previous financial period, the Company changed its financial year
end to 31 December and therefore the comparative figures relate to the
ten months ended 31 December 2011.

Statement of financial position as at 31 December


                                                  2012           2011     

                                                    R               R     

    Assets                                                                

    Non-current assets                       516 882 849     445 629 036  

    Property and equipment                     5 143 554       4 856 506  

    Intangible exploration and evaluation    511 739 295     440 772 530
    assets

    Current assets                            24 433 149     112 900 999  

    Other receivables                          9 376 865       1 311 247  

    Cash and cash equivalents                 15 056 284     111 589 752  

    Total assets                             541 315 998     558 530 035  

    Equity and liabilities                                                

    Capital and reserves                     534 834 182     551 981 469  

    Stated Capital/Ordinary share capital    573 539 795         344 903  

    Share premium                                      -     573 194 892  

    Equity-settled share-based payment        19 157 955      18 033 076
    reserve

    Revaluation reserve                        1 648 157       1 329 449  

    Accumulated loss                        (59 511 725)    (40 920 851)  

    Current liabilities                        6 481 816       6 548 566  

    Trade and other payables                   6 481 816       6 448 566  

    Provisions                                         -         100 000  

    Total equity and liabilities             541 315 998     558 530 035  

Statement of comprehensive income for the period ended 31 December


                                                              Ten months
                                               Year ended       ended
                                                December       December
                                                  2012           2011

                                                      R              R     

    Revenue                                              -              -  

    Other income                                     5 400         16 813  

    Administrative expenses                   (23 555 605)   (30 765 683)  

    Loss from operating activities            (23 550 205)   (30 748 870)  

    Finance income- interest received            4 907 447      6 103 507  

    Loss before income tax                    (18 642 758)   (24 645 363)  

    Income tax expense                              51 884              -  

    Loss from operations attributable to      (18 590 874)   (24 645 363)
    owners of the Company

    Other comprehensive income net of              318 708              -
    income tax

    Increase in revaluation of land and            370 592              -
    building

    Deferred tax                                  (51 884)              -  

    Total comprehensive income attributable   (18 272 166)   (24 645 363)
    to owners of the Company

    Loss per share                                                         

    Basic and diluted loss per share               (53.96)        (71.65)
    (cents)

    Headline and diluted headline loss per         (53.35)        (68.46)
    share (cents)

Statement of changes in equity for the period ended 31 December


                                                 Equity-
                     Stated                      settled
                    Capital/                      share-
                    Ordinary                      based                                     Total
                     share          Share        payment    Revaluation   Accumulated    capital and
                    capital        premium       reserve      reserve         loss         reserves    

                         R              R            R             R              R              R     

    Balance at 28    344 903     573 211 583    7 119 295     1 329 449   (16 275 488)    565 729 742
    February 2011

    Total
    comprehensive
    loss for
    the ten
    months

    Loss and
    total
    comprehensive
    income for
    the ten
    months                 -               -            -             -   (24 645 363)   (24 645 363)  

    Transactions
    with owners
    recorded
    directly in
    equity                 -        (16 691)   10 913 781             -              -    10 897 090   

    Qualifying             -        (16 691)            -             -              -       (16 691)
    costs of
    share issue*

    Share-based            -               -   10 913 781             -              -     10 913 781
    payment

    Balance at 31    344 903     573 194 892   18 033 076     1 329 449   (40 920 851)    551 981 469
    December 2011

    Total
    comprehensive
    loss
    for the year

    Loss and
    total other
    comprehensive
    income for
    the year               -               -            -       318 708   (18 590 874)   (18 272 166)  

    Loss for the           -               -            -             -   (18 590 874)   (18 590 874)
    year

    Other
    comprehensive
    income
    for the year           -               -            -       318 708              -        318 708  

    Increase on
    revaluation
    of land
    & buildings                                                 370 592              -        370 592  

    Deferred tax           -               -            -      (51 884)              -       (51 884)
    on
    revaluation

    Transactions
    with owners
    recorded
    directly in      573 194
    equity               892   (573 194 892)    1 124 879             -              -      1 124 879  

    Conversion to
    no par value     573 194
    shares**             892   (573 194 892)            -             -              -              -  

    Share-based            -               -    1 124 879             -              -      1 124 879
    payments

    Balance at 31    573 539               -   19 157 955     1 648 157   (59 511 725)    534 834 182
    December 2012        795

*   Additional expenses relating to the capital raised.
** Ordinary share capital converted to ordinary shares of no par value in
terms of resolutions passed at the annual general meeting held on 12
September 2012.

Statement of cash flows for the period ended 31 December


                                                             Ten months
                                        Year ended             ended
                                         December             December
                                           2012                 2011

                                               R                    R

    Cash flows from operating
    activities

    Cash utilised in operating         (30 078 387)           (18 812 147)
    activities

    Finance income received               4 907 447              6 103 507

    Taxation refunded                             -              2 085 337

    Net cash utilised by operating     (25 170 940)           (10 623 303)
    activities

    Cash flows from investing
    activities

    Additions to property and             (184 311)              (121 176)
    equipment

    Additions to intangible            (71 178 217)           (23 839 524)
    exploration and
    evaluation assets

    Proceeds on disposal of property              -                 11 842
    and equipment

    Net cash utilised in investing     (71 362 528)           (23 948 858)
    activities

    Cash flows from financing
    activities

    Costs of issue of share capital               -               (16 691)

    Net cash utilised in financing                -               (16 691)
    activities

    Decrease in cash and cash          (96 533 468)           (34 588 852)
    equivalents

    Cash and cash equivalents at        111 589 752            146 178 604
    beginning of the year

    Cash and cash equivalents at end     15 056 284            111 589 752
    of the year

Nature of business
Witwatersrand Consolidated Gold Resources Limited (Wits Gold or the
Company) (registration number 2002/031365/06) is a company domiciled in
the Republic of South Africa. The Company’s shares are publicly traded
in South Africa on the JSE Limited securities exchange (primary
listing), and in Canada on the Toronto Stock Exchange (secondary
listing). The Company carries on the business of acquiring, preserving,
evaluating, trading and developing Mineral Rights for exploration,
investment and development purposes.

The Company has been granted 14 Prospecting Rights by the Department of
Mineral Resources (DMR) under the Mineral and Petroleum Resources
Development Act of 2002. Two of these Rights have been fully impaired
and are in the process of being handed back to the State. Two renewal
applications for Prospecting Rights were submitted to the DMR during
2011 while a further renewal application for one Prospecting Right was
submitted to the DMR in November 2012. All three applications are still
being processed in terms of the abovementioned Act.

The Company has submitted a Mining Right application to the DMR Free
State region incorporating the Prospecting Rights for the combined De
Bron – Merriespruit Project (DBM Project) as well as those relating to
the Bloemhoek and Hakkies Project areas. Wits Gold has not, and does
not in the near future, expect to generate any operating income from
its exploration projects. Mineral exploration is highly speculative due
to a number of significant risks, including the possible failure to
discover mineral deposits that are sufficient in quantity and quality
to justify the completion of feasibility studies. Additional work will
need to be undertaken in order to determine if any economic deposits
occur on any of the Company’s remaining properties.

The ongoing exploration of the Company’s Prospecting Rights is dependent
upon the Company’s ability to obtain additional financing through the
joint venturing of projects, debt financing, equity financing or other
means. In this regard, the Company obtained an unsecured loan for R40
million from The Joburg Trust in February 2013.  This loan is repayable
no later than 31 December 2014, with interest payable on a monthly
basis. In future, such sources of financing may not be available on
acceptable terms, if at all. The Company has, however, been successful
in the past in raising the required capital from its shareholders and
financiers to fund its operating and exploration activities.  Wits Gold
intends raising additional shareholders’ funds during the latter half
of 2013 in order to settle the above-mentioned loan, to fund its day to
day operational expenditure and to fast track the development of the
DBM Project.

Operational review*
During the period under review, the Company continued to focus its
exploration efforts predominantly in the southern Free State goldfield,
however some additional studies were initiated in the Potchefstroom and
Klerksdorp goldfields in order to better plan the future exploration
activities in these areas. The Company continues to comply with the
rehabilitation procedures imposed by the DMR at the time of the
granting of the relevant Prospecting Right and has provided bank
guarantees in the amount of R350 000 (2011: R320 000) to the DMR as
security to cover these obligations.

The directors are not aware of any legal proceedings or other material
conditions that may impact on the Company’s ability to continue its
exploration activities, other than the ability to raise future
additional financing as noted above.

Southern Free State goldfield
Based on the positive Pre-feasibility Study results, the Company
immediately commissioned Royal Haskoning DHV and MDM Technical Africa
(Pty) Limited to complete a Definitive Feasibility Study scheduled to
be completed by the 3(rd) quarter of 2013.

The transfer of ownership of the Merriespruit South property to the
Company was granted to the Company in November 2012 by the Minister in
terms of Section 102 of the Act and the R51 million balance of the
purchase price has been paid to Harmony.

The Potchefstroom goldfield 
No further diamond drilling was undertaken in this area during the
period under review.   A structural analysis of the Boskop Project has
been completed in order to optimally position boreholes planned for the
future.

The Klerksdorp goldfield
A desk-top study of the Klerksdorp goldfield has been completed and
constrained areas where the Vaal Reef is shallower than 5 000 metres
below surface. The Company intends to undertake focused exploration to
attempt to reduce the Prospecting Rights area in order that
non-mineralised areas can be relinquished.

Mineral Resources
The Company’s declared Mineral Resources are estimated by qualified
independent geologists or Competent Persons.  These Resource Estimates
are dependent on geological interpretation and statistical inferences
drawn from drilling and sampling that may prove to be unreliable.  The
Inferred or Indicated Resources outlined in the Company’s properties
have been calculated from widely-spread borehole data.  No assurance
can be given that future exploration will be successful in the
improvement of the confidence levels or that any particular level of
recovery of minerals will in fact be realised.  It is uncertain whether
the identified Mineral Resources will ever qualify as a viable orebody
that can be economically exploited.  In addition, the grade and
tonnages of any orebody that may ultimately be mined may differ from
the Mineral Resources currently estimated and any such differences
could be material.

For further information concerning the locality of the Company’s Mineral
Resources, including information concerning the geology, mineral
occurrences, nature of mineralisation, geological controls, rock types,
historical work including data density, the application of quality
assurance and quality control measures, sampling and analytical
procedures, the names of analytical laboratories employed and the key
assumptions, parameter and methods used to estimate the Mineral
Resources at the Company’s various projects, please see the Company’s
NI43-101 and Samrec compliant Independent Technical Reports dated
November 2007, June 2008, May 2009, June 2009,  October 2009, May 2010,
August 2011, February 2012 and July 2012 which can be viewed at www.sedar.com and on the Company’s website, www.witsgold.com. The information referred to in this section has not changed materially
except as stated above.

Despite the historic exploration work on the Company’s remaining
Prospecting Rights, other than the DBM and Bloemhoek Projects, no other
known bodies of commercial ore or economic deposits have been
determined. Additional work will be required in order to determine if
any economic deposits occur on these properties.

Qualified Person
The technical and scientific information contained in this release was
reviewed by Qualified Person, Dirk Jacobus Muntingh, who is a full time
employee of the Company.  Mr Muntingh (M Sc Geology) is a registered
Professional Natural Scientist (Pr.Sci.Nat) with the South African
Council for Natural Scientific Professionals (SACNASP) and has over 22
years of experience in gold exploration.

* – The information in the section “Operational review” has not been
audited by KPMG Inc.

Financial Review
The Company changed its year end to December during 2011.  Accordingly
the comparative figures relate to the ten months ended 31 December
2011.

Results from operating activities
The loss from operating activities for the year under review decreased
by R7.2 million compared to the prior year. This decrease results
mainly from reductions in:

        --  the non-cash share-based payment expense of R9.1 million;
        --  impairment charge of R0.9 million; and
        --  investor relations expense of R0.8 million.

This was partially offset by increases in:

        --  new project expenditure of R1.1 million;
        --  marketing expenses of R1.5 million; and
        --  non-executive directors' fees of R0.8 million.

Headline and diluted headline loss per share


                                                           Ten months
                                            Year ended       ended
                                             December       December
                                               2012           2011

                                                   R              R     

    Supplementary information:                                          

    Number of shares in issue                34 490 265     34 490 265  

    Weighted average number of shares in     34 451 704     34 398 701
    issue

    The loss attributable to ordinary
    shareholders is reconciled to
    Headline loss as follows:

    Net loss attributable to ordinary      (18 590 874)   (24 645 363)
    shareholders

    Profit on disposal of property and                -       (10 919)
    equipment

    Impairment of intangible assets             211 452      1 105 652  

    Headline loss                          (18 379 422)   (23 550 630)  

    Net asset value per issued share            1550.68       1 600.40
    (cents)

    Net asset (excluding intangible               66.96         322.44
    exploration and evaluation assets)
    value per issued share (cents)

Loss before income tax
The loss before taxation decreased by R6.0 million which results from
the decreased loss from operating activities mentioned above offset by
the decrease in interest received of R1.2 million. Interest income
decreased compared to the previous period, due to the decrease in funds
invested during the year under review.

Non-current assets
During the year under review, the Company incurred direct exploration
expenditure in the amount of R71.2 million (2011: R23.8 million) of
which R51 million related to the acquisition of the Merriespruit South
area from Harmony (2011: Rnil).  These amounts have all been
capitalised to intangible exploration and evaluation assets.

Current assets
The Company’s cash and cash equivalents decreased by R96.5 million
(2011: R34.6 million) which reflects the normal operational and
exploration outflows offset by interest received and includes the R51
million payment for the acquisition of the Merriespruit South area.

Current liabilities
There was no material variation in current liabilities (2011: R1.5
million increase).

Commitments
The Company has committed to spend approximately R19.2 million
finalising the definitive feasibility study on the DBM Project (2011:
Rnil), and an additional amount of approximately R0.2 million (2011:
R9.4 million) on professional consultants during the next year.
Furthermore, the Company has also committed to spend R4.5 million
(2011: R55.5 million) on the acquisition of exploration properties and
R2.1 million (2011: R15.5 million) on exploration activities during the
next five years.  All of these commitments will be funded out of
existing cash resources and from the R40 million unsecured loan
received from The Joburg Trust in February 2013.

Litigation
There are no legal or arbitration proceedings in which the Company is or
has been engaged, which may have or have had, a material effect on the
Company’s financial position.

Dividends
No dividends were declared or paid by the Company during the period
under review (2011: nil).

Basis of preparation
These summarised  financial results for the year ended 31 December 2012
comply with the recognition and measurement requirements of
International Financial Reporting Standards, the presentation and
disclosure requirements of IAS 34, Interim Financial Reporting, the
SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and the South African Companies Act of 2008.  The accounting
policies are consistent with those applied in the previous financial
period.  They do not include all the information required for full
annual financial statements and should be read in conjunction with the
financial statements for the year ended 31 December 2012.

The Company consists of only one segment and there have been no changes
to the composition of the entity.  There has been no reclassification
or correction of errors and no changes in accounting estimates. The
Company does not have any contingent assets or liabilities.  No
material related party transactions have been identified, apart from
those disclosed under “Events after the reporting date”.

Events after the reporting date
In February 2013:

        --  The agreement to acquire the Richelieu Plecy area became
            unconditional and the purchase price of R3 million was paid to
            Taung Gold on 18 February 2013 to acquire the Prospecting
            Right, which is contiguous with the Mining Rights application
            area; and
        --  The Company concluded a R40 million unsecured loan from The
            Joburg Trust which is a related party.  This loan is repayable
            no later than 31 December 2014, with interest payable at 10.07%
            on a monthly basis.

Going concern
Due to the inherent risk in the nature of exploration activities, there
may be uncertainty regarding the recoverability of the Company’s
exploration expenditure. To meet its ongoing obligations and maintain
its operations, the Company will periodically seek to raise additional
debt or equity funding which will be premised on the exploration
results and the contingent further exploration plans. Accordingly, in
February 2013 the Company obtained an unsecured loan for R40 million
from The Joburg Trust.  This loan is repayable no later than 31
December 2014, with interest payable on a monthly basis.  In addition,
the Company intends to undertake a capital raising during the second
half of 2013 in order to settle the above-mentioned loan, fund its day
to day operational expenditure and to fast track the development of the
DBM project. Should the Company fail to raise the required funding, the
management of Wits Gold will make the appropriate adjustments to the
Company’s planned future expenditure until such time as further funding
is obtained.  These adjustments will ensure that the Company can
continue as a going concern for at least 12 months beyond the approval
date of these summarised audited results.

Annual General Meeting
The Annual General Meeting of the Company will be held at 15h00 on 26
June 2013 at Macquarie First South Capital, The Place, South Building,
1 Sandton Drive, Sandton, Johannesburg, South Africa.

Audit report
These summarised financial statements have been extracted from the
complete set of financial statements on which the auditors, KPMG Inc.
have expressed an unqualified audit opinion. KPMG has also issued an
unqualified audit report on these summarised financial statements
stating that these summarised results are consistent, in all material
respects, with the complete financial statements. A copy of the
auditor’s report is available for inspection at the Company’s
registered office.

Printed copies of these results are available at the Wits Gold
registered office and are available on the Company’s website, www.witsgold.com

Forward-looking information
Certain statements in this release may constitute forward-looking
information within the meaning of securities laws. In some cases,
forward looking information can be identified by use of terms such as
“may”, “will”, “should”, “expect”, “believe”, “plan”, “scheduled”,
“intend”, “estimate”, “forecast”, “predict”, “potential”, “continue”,
“anticipate” or other similar expressions concerning matters that are
not historical facts. Forward-looking information may relate to
management’s future outlook and anticipated events or results, and may
include statements or information regarding the future plans or
prospects of the Company. Without limitation, statements about the
timing of a preliminary economic assessment are forward-looking
information. Without limitation, statements about the timing of a final
feasibility study, the anticipated period in which the grant of a
Mining Right may be expected, and the timing of the commencement of
development are forward-looking information.

Forward-looking information involves known and unknown risks,
uncertainties and other important factors that could cause the actual
results, performance or achievements of the Company to be materially
different from the future results, performance or achievements
expressed or implied by such forward-looking information. Such risks,
uncertainties and other important factors include among others:
economic, business and political conditions in South Africa; decreases
in the market price of gold; hazards associated with underground and
surface gold mining; the ability to attract and retain qualified
personnel; labour disruptions; changes in laws and government
regulations, particularly environmental regulations and Mineral Rights
legislation including risks relating to the acquisition of the
necessary licences and permits; changes in exchange rates; currency
devaluations and inflation and other macro-economic factors; risk of
changes in capital and operating costs, financing, capitalisation and
liquidity risks, including the risk that the financing required to fund
all currently planned exploration and related activities, potential
obligations to fast track the DBM Project may not be available on
satisfactory terms, or at all; and the ability to maximise the value of
any economic resources. These forward-looking statements speak only as
of the date of this release.

You should not place undue importance on forward-looking information and
should not rely upon this information as of any other date. The Company
undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events except where required by applicable laws.

For and on behalf of the Board


    P Kotze                       DM Urquhart

    Chief Executive Officer       Financial Director

    25 March 2013                 25 March 2013

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

Business and Registered Office
12(th) Floor, 70 Fox Street, Johannesburg, 2001
PO Box 61147, Marshalltown, 2107
Tel (011) 832 1749   Fax (011) 838 3208

Directors
Mr Adam Fleming (Chairman)*, Prof Taole Mokoena (Deputy Chairman)*, Dr
Humphrey Mathe (Director)*, Mrs Gayle Wilson (Director)*, Mr Ken Dicks
(Director)*, Mr Philip Kotze (Chief executive officer), Mr Derek
Urquhart (Chief Financial officer)
* Non-Executive

Company Secretary
Mr Brian Dowden
7 Pam Road, Morningside Ext 5, Sandton, Johannesburg 2057
PO Box 651129, Benmore, 2010. South Africa

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited
2 Eglin Rd, Sunninghill 2157
Private Bag X37, Sunninghill 2157, South Africa

Transfer Secretaries
JSE: Link Market Services SA (Pty) Limited
TSX: Canadian Stock Transfer Company

 

SOURCE Wits Gold


Source: PR Newswire