DTA - Delta EMD Limited - No Change Statement, Notice of Annual General Release Date: 18/03/2011 13:33:46 Code(s): DTA
DTA - Delta EMD Limited - No Change Statement, Notice of Annual General
Meeting and Trading Statement for the half year ending 27 June 2011
Delta EMD Limited
Incorporated in the Republic of South Africa
Registration number 1919/006020/06)
Share code: DTA ISIN: ZAE000132817
("Delta EMD" or "the Group`s")
NO CHANGE STATEMENT, NOTICE OF ANNUAL GENERAL MEETING AND TRADING STATEMENT
FOR THE HALF YEAR ENDING 27 JUNE 2011
NO CHANGE STATEMENT
Shareholders are advised that the annual financial statements have been
distributed to shareholders today, 18 March 2011, and contain no modifications
to the audited results which were published on SENS on 14 February 2011.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the ninety-forth annual general meeting of Delta
EMD`s shareholders will be held at the Conference Centre, Francolin Lodge, no
2 Du Preez street, Nelspruit on Tuesday 17 May 2011 at 11h00 to transact the
business as stated in the annual general meeting notice forming part of the
annual financial statements.
TRADING STATEMENT FOR THE HALF YEAR ENDING 27 JUNE 2011
Delta EMD shareholders are referred to the Group`s 2010 Annual Report, and the
review contained therein, dated 14 February 2011.
For the reasons indicated earlier the Group`s earnings for the half year
ending 27 June 2011 will be considerably lower than the Group`s earnings for
the half year ended 27 June 2010, which included earnings of R117 million from
the sale of the Kooragang Island landfill site in Australia.
The Group`s operating profit for the half year ending 27 June 2011 is forecast
to be lower than the underlying operating profit for the half year ended 27
June 2010, due to an anticipated reduction in sales volumes, less favourable
sales mix and reduced contribution margin on US dollar denominated sales, as a
result of the current strength of the Rand.
The Group does not expect an immediate increase in global EMD demand and the
Group`s Rand denominated selling prices remain unattractive at current Rand
exchange rates, consequently the Group`s share of the Global EMD market,
particularly the higher margin EMD market segment has reduced and is forecast
to be lower than the comparable period in 2010.
The Group`s operating profit for the half year ending 27 June 2011 will also
not include the high contribution margin recorded for lithium manganese EMD
sales made during the comparable period in 2010.
Production volumes for the half year ending 27 June 2011 are expected to be at
levels similar to the levels for the half year ended 27 June 2010.
Manufacturing cost increases related to energy and labour are expected to be
absorbed as they are unlikely to be passed onto customers.
The Group`s Nelspruit operation experienced a partial plant shutdown for two
weeks during January 2011 following a transformer failure and subsequent fire
damage which resulted in an interruption of the plant`s electricity supply.
The resulting business interruption is estimated to have reduced the forecast
operating profit for the half year ending 27 June 2011 by approximately R7
The sale of the Group`s former plant site in Australia is not forecasted to be
concluded by 27 June 2011.
The Group`s Earnings/Loss and Headline Earnings/Loss after taxation for the
six months ending 27 June 2011 are forecast to be between earnings of R7
million and loss of R8 million (2010: Earnings R138 million, Headline Earnings
Earnings/Loss per share ("EPS") and Headline Earnings/Loss per share ("HEPS")
for the six months ending 27 June 2011 are forecast to be between earnings of
14 cents and loss of 16 cents (2010: EPS 281.6 cents, HEPS 166.4 cents)
The Group`s operating cash flow is expected to be positive for the half year
ending 27 June 2011 and cash balances, after capital expenditure, are expected
to be in line with December 2010.
The forecast financial information on which this trading statement is based
has not been reviewed and reported on by the Group`s external auditors.
Delta EMD`s interim results for the six months ending 27 June 2011 are
expected to be released on SENS on 8 August 2011.
18 March 2011
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 18/03/2011 13:33:46 Supplied by www.sharenet.co.za
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