Petra Diamonds Limited
Annual Report and Accounts 2013
118
21. Interest-bearing loans and borrowings
continued
(iii) Bank loans – secured
FirstRand and Absa – Amortising Term Facility (“ATF”)
As part of the new Group debt facilities entered into on 16 November 2012, the previous ATF has been renegotiated and increased
from R300 million (US$30.4 million) to R800 million (US$81.0 million). The ATF is available for the Company’s draw-down up to and
including 20 December 2013. The loan is repayable in five semi-annual payments commencing on 20 March 2016 with a final payment
due on 20 March 2018. The loan incurs interest at the South African JIBAR rate plus 4.0% payable quarterly (March, June, September
and December). The interest rate for the debt facility at 30 June 2013 is 9.1% (30 June 2012: 10.1%).
The ATF is secured on the Group’s interests in Finsch, Cullinan, Koffiefontein, Kimberley Underground and Williamson.
(iv) Bank loans – secured
IFC – Amortising Term Facility (“ATF”)
The historical loan facility of US$40 million was renegotiated and revised terms agreed. As at year end the outstanding balance of
US$35 million was fully drawn down. The accrued interest on the loan at year end is US$0.1 million. The loan is repayable in five annual
payments commencing on 20 March 2016 with the final payment due on 20 March 2018. The loan incurs interest at the US$ LIBOR rate
plus 4.0% payable quarterly (March, June, September and December). The interest rate for the debt facility at 30 June 2013 is 4.3%
(30 June 2012: 5.2%).
Historically the IFC and RMB were granted 6.3 million warrants each over Petra shares, a number of which have subsequently been
part exercised in accordance with the terms of the warrants. No new warrants were granted on the refinanced loans. During the
year the IFC exercised 2,100,000 warrants. The warrants vested on grant and the warrant expiry dates are in equal tranches at the
end of years two, three and four from the warrant grant date. The warrant exercise prices for the remaining tranches are 95 pence
and 100 pence respectively. The Black-Scholes methodology as outlined in IFRS 2 was used to value the warrants. The unamortised fair
value of the warrants has been accelerated in the year and disclosed in note 9 as part of gross interest expense on bank loans
and overdraft, as part of the refinancing that was considered to represent a substantial modification of terms under IFRS.
The ATF is secured on the Group’s interests in Finsch, Cullinan, Koffiefontein, Kimberley Underground and Williamson.
There are no significant differences between the fair value and carrying value of loans and borrowings.
22. Trade and other payables
US$ million
2013
2012
Current
Trade payables
23.8
17.2
Deferred consideration1
2.3
2.8
Accruals and other payables
38.6
29.0
64.7
49.0
Taxation payable
64.7
49.0
Non-current
Amounts owing to BEE partners2
65.3
66.6
65.3
66.6
Current
1. The Group is liable to pay US$3.2 million (30 June 2012: US$3.2 million) (US$2.3 million after discounting (30 June 2012: US$2.8 million)), being the balance of the Helam Mining (Pty)
Ltd purchase price, which is payable from 50% of the cash surplus generated by Helam Mining (Pty) Ltd for the years ended 31 December 2006 and 2007.
Any shortfall in the amount payable in any one year can be carried forward to the next year until such time that the total amount payable of US$3.2 million has been extinguished.
At year end no portion of the liability had been repaid and the total liability is carried forward.
2. The loans (refer to notes 3 and 28) bear interest at the prevailing South African prime interest rate. The movement in the year includes accrued interest and foreign exchange
retranslation. The loans are repayable from future cashflows from the underlying operations only when the loans advanced to BEE partners (refer to note 18) have been repaid
in full to the Group.
The financial liabilities included in trade and other payables (which exclude taxation) are as follows:
US$ million
2013
2012
Trade payables
23.8
17.2
Other payables (includes deferred consideration)
40.9
31.8
Non-current trade payables owing to BEE partners
65.3
66.6
130.0
115.6
The carrying values of financial liabilities classified as trade and other payables are denominated in the following currencies:
US$ million
2013
2012
Botswana pula
0.7
0.3
Pounds sterling
2.6
1.8
South African Rand
104.0
103.2
US Dollar
22.7
10.3
130.0
115.6
Notes to the Annual Financial Statements
For the year ended 30 June 2013 continued
1...,110,111,112,113,114,115,116,117,118,119 121,122,123,124,125,126,127,128,129,130,...142