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Sah - South African Coal Mining Holding Limited - Unaudited Results Of Sacmh And

Release Date: 06/08/2010 17:00:02      Code(s): SAH
SAH - South African Coal Mining Holding Limited - Unaudited results of SACMH and
its subsidiaries ("the group") for the 6 months ended 30 June 2010 and 30 June  
2009 and renewal of cautionary announcement                                     
South African Coal Mining Holding Limited                                       
(incorporated in the Republic of South Africa)                                  
Registration number 1994/009012/06                                              
Share code : SAH ISIN : ZAE0000102034                                           
("SACMH" or "the company")                                                      
UNAUDITED RESULTS OF SACMH AND ITS SUBSIDIARIES ("THE GROUP") FOR THE 6 MONTHS  
ENDED 30 JUNE 2010 AND 30 JUNE 2009 AND RENEWAL OF CAUTIONARY ANNOUNCEMENT      
Consolidated statement of financial position at 30 June 2010 (R000`s)           
Unaudited  Unaudited   Audited    
                                                  As at      As at     as at    
                                                30 June    30 June        31    
                                                   2010       2009  December    
2009    
Assets                                                                          
Non-current assets                               533 228    497 558   538 102   
Property, Plant & Equipment                      113 829    128 659   118 703   
Intangibles                                      419 399    368 899   419 399   
                                                                                
Current assets                                    12 378     17 188    15 915   
Inventories                                            -          -         -   
Trade and other receivables                        2 330      5 502     8 933   
Cash and cash Equivalents                         10 048     11 686     6 982   
                                                                                
Total assets                                     545 606    514 746   554 017   

Equity and liabilities                                                          
Capital and reserves                             170 989    122 831   185 308   
Issued capital                                   233 885    227 728   233 885   
Retained loss                                   (77 403)  (110 743)  (60 184)   
Shareholders` loans                               14 506      5 847    11 607   
                                                                                
Non-current liabilities                          222 925    197 454   226 490   
Interest bearing liabilities                      46 723     54 348    50 289   
Non-current provisions                            34 431     34 431    34 431   
Deferred taxation                                141 770    108 674   141 770   
                                                                                
Current liabilities                              151 693    194 461   142 219   
Trade and other payables                          12 307     74 137    11 511   
Current portion non-current liabilities          139 386    120 323   130 708   
Total equity and liabilities                     545 606    514 746   554 017   

Number of shares in Issue                        452 454    452 454   438 454   
Net asset value per share                          37.79      27.15     42.26   
Tangible net asset value per share               (32.79)    (31.56)   (29.74)   
Consolidated statements of comprehensive income (R000`s)                        
                                              Unaudited  Unaudited Unaudited    
                                               6 months   6 months      Year    
                                                30 June    30 June        31    
2010       2009  December    
                                                                        2009    
Revenue                                            5 093     33 671    38 520   
Cost of sales                                      (538)   (55 623)  (62 248)   
Gross profit                                       4 555   (21 952)  (23 728)   
Gain on restructuring                                  -          -   114 520   
Impairment of assets                                   -      (791)  (11 781)   
Loss on sale of non-current assets                     -   (21 817)  (21 170)   
Depreciation and amortisation                    (4 873)    (6 937)  (10 717)   
Amortisation of mining right                           -    (1 471)   (1 471)   
Rehabilitation provision release                       -          -         -   
Operating expenses                               (4 836)   (16 171)  (22 771)   
Operating (loss) / income                        (5 154)   (69 139)    22 882   
Net finance costs                               (12 065)   (12 477)  (25 019)   
Loss before taxation                            (17 219)   (81 616)   (2 137)   
Taxation                                               -          -  (28 919)   
Comprehensive loss for the period               (17 219)   (81 616)  (31 056)   
Weighted average shares in issue (000)           452 454    438 454   438 454   
Basic earnings per share (cents)                  (3.81)    (18.61)    (7.08)   
Gain on restructure per share (cents)                  -          -   (26.12)   
Impairments per share (cents)                          -       0.18      2.50   
Loss on sale of non-current assets                     -       4.98      4.83   
Tax effects there on (cents)                           -          -      7.31   
Headline earnings per share (cents)               (3.81)    (13.46)   (18.56)   
Consolidated statement of cash flow (R000`s)                                    
                                              Unaudited  Unaudited Unaudited    
                                               6 months   6 months      Year    
                                                     30    30 June        31    
June2010       2009  December    
                                                                        2009    
Cash flow from operations                          5 037     13 035     3 801   
Net finance charges paid                        (12 065)   (12 477)  (25 019)   
Taxation received / (paid)                         2 083    (9 497)   (9 497)   
Net cash flow from operating activities          (4 945)    (8 939)  (30 715)   
Cash flows from investing activities                                            
Purchase of plant and equipment                        -   (10 083)  (10 083)   
Net cash used in investing activities                  -   (10 083)  (10 083)   
Cash flow from financing activities                                             
Share issue expenses                                   -       (57)      (57)   
New borrowings raised                              8 011     16 055    33 127   
Net cash from financing activities                 8 011     15 998    33 070   
Net increase/(decrease) in cash                    3 066    (3 024)   (7 728)   
Cash at the beginning of the year                  6 982     14 710    14 710   
Cash at the end of the year                       10 048     11 686     6 982   
Consolidated statement of changes in equity (R000`s)                            
                          Share   Share  Shareholder Accumulated       Total    
                        capital Premium         Loan        loss                
Balance at 1 January      43 845 183 938            0    (29 128)     198 655   
2009                                                                            
Issue of ordinary          1 400   4 758                                6 158   
shares                                                                          
Share issue costs                   (57)                                 (57)   
Increase in equity                             11 607                  11 607   
loans                                                                           
net loss for the year                                    (31 056)    (31 056)   
Balance at 31 December    45 245 188 639       11 607    (60 184)     185 307   
2009                                                                            
Shareholders loan                               2 899                   2 899   
Net loss for the period                                  (17 219)    (17 219)   
Balance at 30 June 2010   45 245 188 640       14 506    (77 403)     170 989   
Statement of compliance and basis of preparation                                
These interim financial statements have been prepared in accordance with        
International Financial Reporting Standards, the Companies Act of South Africa  
and the Listings Requirements of the JSE Limited.  The accounting policies used 
to prepare the financial statements have been consistently applied to all       
periods presented.  These financial results have not been reviewed by the       
company`s auditors as the mine was still on "Care and Maintenance" for the      
period and the transactions during the period were not significant.  The        
WorldWide Coal objection to the SACMH Breyten section 311 compromise had not yet
been heard by the courts, so these financial statements were prepared on the    
basis that the scheme has not been approved and the adjustments will be made    
once sanctioned by the court.  This sanction (or non sanction, should this be   
the case) will not have any negative effect on the above results.               
Operational Review                                                              
The mine has been on "Care and Maintenance" for the past six months. On 23 July 
2010 the loan agreement with JSW Energy Limited (India) ("JSW") to finance the  
recommencement of operations was signed, the first tranche of R11 million of    
funding was received and the board instructed the company to re-commence        
operations. Two external opencast contractors have been short listed and the    
first coal is expected to be delivered to the plant by the end of August 2010.  
Summary of JSW Loan Agreement                                                   
JSW has agreed to lend the group up to US$ 18 million in mutually agreed        
tranches, bearing interest at LIBOR plus 2.5% and is repayable in seven years.  
Early repayment of this loan is at the sole discretion of the company.  R78     
million of this will be utilised to refinance existing loans, R25 million on    
Capex to restart the operation and the balance on working capital requirements. 
The Group and JSW are at an advanced stage of negotiating a revised funding     
schedule with the primary lender (the Standard Bank of South Africa Limited     
("Standard Bank")) whereby JSW will lend the group R70 million to partially     
repay the loan with the remainder to be paid over a 5 year period in equal      
instalments.  Until this agreement has been finalised, the full amount of the   
loan is reflected under current liabilities.                                    
Contingencies and Commitments                                                   
There has been no change in the previously disclosed contingent assets and      
liabilities.  The group still has a contingent asset from its claim against BHP 
Billiton / Ingwe for unlawful termination of contract, submitted at R50 million.
The claims and counter claims with the previous contractor (Mkhulu Resources)   
are not expected to materialise as this contractor has been liquidated and our  
subsidiary has undergone a sanctioned section 311 scheme.  The commitment to    
deliver coal to WorldWide Coal is part of the Breyten compromise before the     
courts in terms of this section 311 scheme.                                     
Prospects                                                                       
The dollar price of coal (RB1) has been stable above the US$ 90/ton mark and we 
are seeing increased demand for steam coal out of both India and China.  The    
forward price of coal is still in contango and expectations in the industry are 
that the price will remain at these levels whilst demand levels remain constant.
The mine should be in full operation by the year end. SACMH will, after the     
conclusion of the mandatory offer by JSW Energy Natural Resources South Africa  
(Proprietary) Limited to minority shareholders of SACMH, apply to the JSE       
Limited ("JSE") for the lifting of the suspension of the trading of its shares  
on the JSE.                                                                     
Renewal of Cautionary Announcement                                              
Shareholders are referred to the latest announcements released on SENS on 20 May
2010 and 2 July 2010 regarding offers and proposals received by the board.  The 
process is ongoing and shareholders are accordingly advised to continue         
exercising caution when dealing in the company`s securities until a further     
announcement is made.                                                           
For and behalf of the board                                                     
TV MOKGATLHA   GM SCRUTTON                                                      
Chairman       Chief Executive Officer                                          
6 August 2010                                                                   
Johannesburg                                                                    
Directors : TV Mokgatlha (Chairman), VP Garg (Non-Executive), WN Gardyne (Non-  
Executive), LN Ndala (Non-Executive), Dr V Lickfold (Independent Non-Executive),
GM Scrutton (CEO)                                                               
Registered Office : Mirkwood Estate, Farm Klipkop JR396, Gauteng                
Company Secretary: Sylvan CSI (Pty) Ltd                                         
Transfer Secretary : Computershare Investor Services (Pty) Ltd                  
Sponsor : Exchange Sponsors (2008) (Pty) Ltd                                    
Auditors : Deloitte & Touche                                                    
Date: 06/08/2010 17:00:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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information disseminated through SENS.                                          



                                        
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