Go Back Email this Link to a friend

EXX - Exxaro Resources Limited - Audited group financial results and unaudited

Release Date: 23/02/2012 07:11:10      Code(s): EXX
EXX - Exxaro Resources Limited - Audited group financial results and unaudited  
physical information for the year ended 31 December 2011                        
EXXARO RESOURCES LIMITED                                                        
Incorporated in the Republic of South Africa                                    
(Registration Number:  2000/011076/06)                                          
JSE share code:  EXX                                                            
ISIN code:  ZAE000084992                                                        
ADR code:  EXXAY                                                                
NEWS RELEASE                                                                    
ENDED 31 DECEMBER 2011                                                          
*    Lost time injury frequency rate (LTIFR) down 20% to 0,20                   
*    MPower scheme testimony to meaningful employee empowerment,                
distributing over R1 billion to 9 694 beneficiaries                         
*    Revenue increased by 24% to R21,3 billion                                  
*    Net operating profit up 53% to R4 billion, excluding the impact of         
    impairment reversals and charges                                            
*    Headline earnings per share up 40% to 2 098 cents per share                
*    Final dividend of 500 cents per share; total dividend of 800 cents per     
    share for 2011                                                              
*    Regrettably, three fatalities                                              
*    Cessation of zinc production at the Zincor refinery                        
COMPARABILITY OF RESULTS                                                        
Comments are based on a comparison of the group`s audited financial results and 
unaudited physical information for the years ended 31 December 2011 and 2010    
respectively.  These results are not comparable due to the R869 million partial 
impairment reversal of the carrying value of property, plant and equipment at   
KZN Sands, which was initially accounted for in the year ended 31 December 2009,
and a R516 million impairment of the carrying value of property, plant and      
equipment at the Zincor refinery.                                               
After fulfilment of all suspensive conditions, the Glen Douglas dolomite mine   
was sold to Afrimat Limited effective 1 January 2011. The investment was        
therefore effectively only accounted for one day in the year ended 31 December  
Diversified South African-based resources group Exxaro Resources Limited        
(Exxaro) today reported group consolidated revenue of R21,3 billion for the year
ended 31 December 2011, a 24% increase when compared with the same period in    
Sipho Nkosi, Exxaro`s chief executive officer, attributed the increased revenue 
mainly to higher selling prices across the group`s commodities, despite lower   
coal sales and the adverse impact of a strong local and Australian currency.    
"Coal revenue was 21% higher mainly due to higher export sales at higher prices 
despite the lower volumes at the mines captive to Eskom, combined with lower    
other domestic sales volumes," said Nkosi.                                      
"Revenue from the mineral sands business increased by 42% to R6,6 billion with  
lower sales volumes at higher prices.                                           
"Base metals revenue increased marginally by 3% as a 1% higher average realised 
zinc price of USD2 191 per tonne partially offset the lower zinc metal sales    
volumes," he added.                                                             
NET OPERATING PROFIT                                                            
Group consolidated net operating profit was R1,4 billion or 53% higher at R4    
billion after exclusion of the R869 million partial reversal of the impairment  
of the carrying value of property, plant and equipment at KZN Sands accounted   
for in 2009, as well as the R516 million impairment of the carrying value of    
property, plant and equipment at the Zincor refinery.                           
The coal business reported a 24% increase in net operating profit to R3,4       
billion at an operating margin of 26% as higher selling prices and stronger     
international demand were only partially negated by lower local demand.  The    
weaker domestic performance was partially as a result of lower demand from      
ArcelorMittal South Africa Limited (AMSA Limited) as well as lower sales volumes
from the operations tied to Eskom.  Despite the lower sales volumes from the    
mines tied to Eskom, these operations recorded a 66% increase in net operating  
profit to R309 million, resulting from a revised manner by which the group      
applies the discount rates on the calculation and recovery of rehabilitation    
costs contributing R132 million to this number.  The net impact of the revised  
calculation results in additional rehabilitation costs recovered from Eskom.    
Mineral Sands                                                                   
The higher revenue recorded translated into a higher consolidated net operating 
profit of R1,7 billion even after excluding the partial impairment reversal of  
property, plant and equipment at KZN Sands of R869 million and non-recurring    
profit recognised on the Tronox buy back transaction amounting to R107 million. 
Sales volumes at Namakwa Sands and Australia Sands increased on the back of     
higher demand.  KZN Sands` sales were lower due to furnace unavailability       
(Furnace 1 down for four months in 2011 and Furnace 2 down for eight months in  
The stronger AUD against the USD has been partially mitigated by the hedging of 
USD receivables of the Australian operation, with realised foreign exchange     
gains of R90 million in 2011.                                                   
Base Metals                                                                     
Despite the marginally higher revenue recorded, a net operating loss of R629    
million, excluding the impairment of carrying amount of property, plant and     
equipment at the Zincor refinery, was reported mainly due to the previously     
announced decision to cease zinc production resulting in an under recovery of   
fixed expenses. The impact of continued higher than inflation increases in      
electricity and maintenance expenses also continued to contribute negatively to 
the base metals results.                                                        
Rosh Pinah`s operating results were also lower based on lower zinc concentrate  
production and sales.                                                           
Net expenditure increased, primarily from non-recurring costs associated with   
the implementation of Exxaro`s new operating model and associated technology    
enablement as well as other project related costs. .                            
Attributable earnings, inclusive of Exxaro`s equity accounted investment in     
associates, amounted to R7,7 billion or 2 199 cents per share, up 47% from      
2010`s 1 501 cents per share.                                                   
Equity accounted investments in the post-tax profits of associates consists of  
Exxaro`s 19,98% interest in Sishen Iron Ore Company (Pty) Limited (SIOC) of R4,5
billion, 26% in Black Mountain Mining (Pty) Limited (Black Mountain) of R210    
million and 22% in the Chifeng zinc refinery of R2 million.                     
Headline earnings which exclude, inter alia, the impact of the impairment and   
partial impairment reversal, were R7,3 billion or 2 098 cents per share.  This  
represents a 41% increase on the comparable 2010 earnings of R5,2 billion or 1  
495 cents per share.                                                            
CASH FLOW                                                                       
Cash retained from operations was R6,5 billion for the group. This was primarily
used to fund net financing charges of R94 million, taxation payments of R502    
million, dividend payments of R2,1 billion, and capital expenditure of R4,9     
billion of which R3,3 billion was invested in new capacity and R1,6 billion     
applied to sustaining and environmental capital.  A total of R3,07 billion of   
the expansion capacity expenditure was for the Grootegeluk Mine Expansion       
Project (GMEP) for the Medupi power station. After the receipt of R3,5 billion  
in dividends, primarily from SIOC, the group had a net cash inflow of R2,5      
billion for the year. The final dividend for 2011 will amount to a further cash 
outflow of approximately R1 771 million offset by the dividend inflow from SIOC 
of approximately R1 958 million.                                                
Net debt of R2,2 billion at 31 December 2010 has inverted to a net cash position
of R263 million at 31 December 2011.                                            
SAFETY & SUSTAINABLE DEVELOPMENT                                                
Regrettably three fatalities were suffered during the first seven months of     
2011. The group continues to pursue its commitment to a zero injury and fatality
environment.  In 2012, Exxaro will implement further initiatives to enhance the 
current safety and risk assessment and control effectiveness drive. The average 
LTIFR per 200 000 man-hours worked improved to 0,20 from 0,25 in 2010,          
reflecting a 20% improvement year on year and below the group`s target at 0,21. 
The 2011 HIV/AIDS programme target for testing was 75%. This target was exceeded
when 86% of employees, including contractors, underwent voluntary testing. The  
HIV prevalence rate is estimated at 12% of permanent employees (12,8% including 
contractors) as compared to the industry average of 25%.  Exxaro has trained 153
community peer educators around six of the Mpumalanga business units as part of 
the HIV community awareness programme. The training will be extended to business
units in the Waterberg region in 2012.                                          
In addition to the 16 Integrated Water Use Licences (IWULs) already granted in  
terms of National Water Act, No 36 of 1998, two further IWULs were approved and 
five Environmental Authorisations were granted in terms of the National         
Environmental Act, No107 of 1998 in 2011.                                       
All 16 Exxaro operated business units have retained their ISO 14001 and OHSAS   
18001 certification in 2011.                                                    
When Exxaro was created in November 2006 following the unbundling of Kumba      
Resources, an employee share scheme, MPower, was created as part of the group`s 
commitment to broad based ownership.  Only employees up to lower management     
level qualified to be beneficiaries of the scheme as middle and senior          
management participate in management share incentives schemes.  MPower held     
approximately 3% of Exxaro`s issued shares with each of the 9 694 beneficiaries`
assigned units notionally linked to the shares held by the scheme.  Shares held 
by MPower were sold in the last quarter of 2011, generating over R1 billion for 
distribution among the beneficiaries.  The distribution varied dependant on     
number of units assigned; in turn based on individual length of MPower          
membership.  Each beneficiary that participated for the full five years of the  
scheme received a pre-tax distribution of R135 102.  In addition to this        
distribution, MPower has already paid a total of R81,5 million in dividends to  
CONVERSION OF MINING RIGHTS                                                     
All of Exxaro`s old order mining licenses have been converted to mining rights. 
The converted mining rights for Grootegeluk and Gravelotte have been executed in
the second half of 2011. The Department of Mineral Rights has confirmed the     
granting of converted mining rights for Tshikondeni, Matla, Strathrae, Arnot and
Glisa. These rights still need to be scheduled for execution by the Department  
of Mineral Rights. Exxaro is continuously in consultation with the different    
regional offices of the Department of Mineral Rights to expedite the execution  
OUTLOOK FOR 2012                                                                
"Greater emphasis will be placed to create and maintain a safe, healthy and     
environmentally friendly working environment," said Nkosi.                      
The group`s consolidated results for 2012 will continue to be impacted by the   
trading levels of the local currency and the AUD against the USD.  At 31        
December 2011 Exxaro had USD 200 million of hedging in place at an average      
exchange rate of R7,56 for the local operations as well as USD17 million at an  
average rate of USD0.97 to the AUD for the Australian operation.                
"The coal business will continue to focus on optimising and growing its market  
position in the supply of coal to Eskom as well as the domestic and export      
markets.  Exxaro continues to seek alternatives to export increased coal        
volumes. Coal export prices are expected to decrease in 2012.  Continued good   
performance is expected from TFR and stable Eskom demand is expected in 2012,   
which will be partially offset by a decrease in export prices and lower coking  
coal prices.                                                                    
"Mineral sands` short to medium term focus remains the granting of relevant     
regulatory approvals for the construction of Fairbreeze, as well as the         
finalisation of the New Tronox transaction," said Nkosi.                        
"Base metals` finalisation of the sale of Rosh Pinah to a subsidiary of Glencore
International AG is expected in the second quarter of 2012, whilst the future   
application of the Zincor plant is still under investigation," he added.        
The financial information on which the outlook statement is based has not been  
reviewed nor reported on by the group`s auditors.                               
CHANGES TO THE BOARD                                                            
Ms N Langeni resigned as non-executive director effective 18 January 2012. The  
board expressed its sincere appreciation for her contribution during her term of
office.  As a result of the resignation, Ms S Dakile-Hlongwane was appointed as 
non-executive director of the board on 21 February 2012, as the Basadi Ba Kopane
Investments (Pty) Limited nominated representative.                             
Maria Susanna (Marie) Viljoen, Company Secretary of first, Kumba Resources      
Limited, and then Exxaro since 1 August 2001, retired with effect 30 June 2011. 
The board expressed its sincere appreciation for her service during her term of 
office.  The board of directors appointed Catharina Helena (Carina) Wessels as  
Group Company Secretary with effect 1 July 2011.  Carina holds LLB and LLM      
degrees, is an admitted advocate of the High Court of South Africa, and is a    
Fellow and Senior Vice- President of the Chartered Secretaries Southern Africa. 
FINAL DIVIDEND                                                                  
The board of directors has declared a final cash dividend number 18 of 500 cents
per share in respect of the 2011 final dividend. The dividend has been declared 
in South African currency and is payable to shareholders recorded in the        
register of the company at close of business on Friday, 30 March 2012.          
In compliance with the requirements of Strate, the electronic and custody system
used by the JSE, the following dates are applicable:                            
Last date to trade cum dividend                  Friday, 23 March 2012          
Shares trade ex dividend                         Monday, 26 March 2012          
Record date                                      Friday, 30 March 2012          
Payment date                                     Monday, 02 April 2012          
*    View or download the full results announcement on www.exxaro.com           
*    See Addendum 1 for Operational highlights; Addendum 2 for Capital          
    expenditure and project pipeline                                            
Editor`s Note:Exxaro is one of the largest South African-based diversified      
resources groups, with interests in the coal, mineral sands, base metals and    
iron ore commodities. www.exxaro.com                                            
Wim de Klerk                                                                    
Finance director                                                                
Tel: + 27 12 307 4848                                                           
Mobile: +27 82 652 5145                                                         
Email: wim.deklerk@exxaro.com                                                   
ADDENDUM 1:                                                                     
OPERATIONAL HIGHLIGHTS                                                          
Power station coal production at the Eskom tied operations was 24% lower due to 
previously reported adverse geological conditions, the closure of the           
Mooifontein open cast operation at the Arnot mine in March 2011 as well as the  
flooding in Mine 2 at Matla in February and June respectively.                  
Production volumes at the commercial mines remained relatively in line with the 
previous year.                                                                  
Coking coal production declined by 11% because of lower demand from AMSA        
Limited, partially offset by higher production at Tshikondeni due to the higher 
contribution from the mini-pits initiated in April 2011.                        
Steam coal production was 2% lower due to lower production at the NBC and NCC   
mines.  The open pit operation at NCC reached the end of its economic life in   
the first quarter of 2011.  This, together with challenging underground         
conditions, resulted in lower production than in 2010.  NBC experienced a       
combination of challenging geological and equipment problems which led to lower 
production.  Higher production was, however, recorded at Leeuwpan as a result of
improved feed tempo to the dense medium separation plant and at Inyanda due to  
higher plant availability and demand.                                           
The Char plant production was 25% higher due to improved availability and higher
feed rate per hour.                                                             
Sales of power station coal tonnes to Eskom were 11% lower as a result of lower 
production at Matla and Arnot.  This was partially offset by higher sales       
recorded at Leeuwpan.  Domestic non-Eskom sales decreased by 9% mainly due to   
production challenges at NBC.                                                   
Export sales tonnes were 19% higher than in 2010, mainly as a result of         
increased performance by Transnet Freight Rail (TFR).                           
Mineral Sands                                                                   
The consolidated mineral sands business reported an increase in production of   
most of its products. Lower heavy minerals concentrate production, as the KZN   
Sands Hillendale mine nears its end of life resulting in lower grades was offset
by higher production in Australia as well as at Namakwa Sands from increased    
side feed.  Titanium slag production was also lower at KZN Sands as Furnace 1   
and 2 were down for four and eight months respectively.                         
Zircon production reflects a volume increase at Namakwa Sands from better head  
grades. Lower production in Australia due to lower mineral grades was offset by 
improved recovery.  Rutile production was 6% higher as increased production at  
Namakwa Sands from improved recovery and higher mineral assemblage was only     
partially offset by lower production in Australia.  Synthetic rutile production 
in Australia was 22% higher in 2011 due to the 2010 plant shut which limited    
production in 2010.                                                             
Record pigment production was achieved in 2011 as a result of a 28% improvement 
in performance from the existing plant, complemented by production volume from  
the pigment plant expansion commissioned in the previous year.                  
The welcomed increase in mineral sands product prices, coupled with higher      
demand resulted in increased sales volumes at Namakwa Sands and Australia Sands,
offset by lower volumes at KZN Sands due to furnace downtime.                   
Base Metals                                                                     
On 27 July 2011 it was announced that Exxaro was planning to cease zinc         
production at the Zincor refinery.  Following the necessary consultations,      
Zincor ceased zinc production on 12 December 2011.                              
Production of zinc metal at the Zincor refinery of 73kt was 17kt lower than in  
2010. Zinc concentrate and lead production at Rosh Pinah were 12kt and 3kt lower
than in 2010, respectively.  Zinc production grades were however 2% higher due  
to recovery improvements on the floatation plant.                               
Zinc metal sales at Zincor were 4% lower mainly due to lower production as a    
result of the planned ramp-down.                                                
ADDENDUM 2:                                                                     
CAPITAL EXPENDITURE AND PROJECT PIPELINE                                        
Exxaro`s growth initiatives are focused on diversifying the business further    
with carbon, reductants, ferrous and energy projects aligned with the group`s   
approved commodity strategy.                                                    
Construction on GMEP, to supply Eskom with 14,6Mtpa of coal for the Medupi power
station, continues to progress to deliver first coal in May 2012 and is expected
to be completed within budget. Overall project progress has increased to 72%    
completion.  The total project spend to date is R4,4 billion with total capital 
expenditure for the project still forecast at R9,5 billion.  Total funds        
committed to date amount to approximately R6,5 billion.                         
The Thabametsi development project, as a supplier of coal to a base load        
Independent Power Producer (IPP), is expected to reach first coal production by 
2016/17, dependant on the Waterberg IPP and water supply development schedule.  
Exxaro continues to engage with the relevant stakeholders for the conclusion of 
implementation plans for an integrated infrastructure for the Waterberg         
coalfields which will include the supply of water, rail, road and housing       
Exxaro entered into a prospecting joint venture agreement with Sasol Mining to  
investigate the commercial viability of the development of a new coal mine in   
the Waterberg to also supply Sasol`s potential new 80,000 barrels per day inland
coal to liquids facility (Project Mafutha).  The detailed pre-feasibility study 
for Project Mafutha has now been completed.  Based on the findings of the pre-  
feasibility study, global environmental risks, and in the absence of a          
commercially viable carbon emission solution which is realistically not         
anticipated before 2020, the decision has been taken to not proceed with Project
Mafutha at this stage.                                                          
Studies regarding the evaluation of the Phase 2 expansion of the Sintel Char    
plant to produce an additional 140Ktpa of char and the production of market coke
from semi-soft coking coal at Grootegeluk continue to progress.  The studies are
still expected to be completed in the second half of 2012.                      
Exxaro`s application for a mining right for the Belfast project has been        
accepted by the Department of Mineral Resources.  The bankable feasibility study
is expected to be completed by the second half of 2012. Specialist studies, as  
required by the National Environmental and National Water Acts, were submitted  
to the relevant authorities in the fourth quarter of 2011. Start-up and first   
production is expected to be 2014.                                              
A concept study completed on the Moranbah South project indicated high potential
for a dual long wall mine to produce between 10 and 12 Mtpa of premium quality  
hard coking coal. The pre-feasibility study commenced in 2011 and is expected to
be completed in the second quarter of 2012.                                     
Mineral Sands                                                                   
On 26 September 2011, Exxaro and Tronox announced that New Tronox will acquire  
Exxaro`s mineral sands operations, which include Exxaro`s 50 percent interest in
the Tiwest Joint Venture with Tronox in Western Australia, along with 74 percent
of Exxaro`s KZN Sands and 74 percent of Namakwa Sands operations in South       
Africa, in exchange for approximately a 38,5 percent shareholding in New Tronox.
The long term partnership is expected to enhance production capabilities and    
implement technical efficiencies in the integrated process, creating a truly    
global, vertically integrated titanium dioxide pigment producer.  This is       
expected to result in a strong platform for future growth uniquely positioned to
capitalise on favourable market dynamics and to serve the needs of the ever     
growing pigment and zircon customer base across the globe.  It is still expected
that the transaction will close in the second quarter of 2012 following New     
Tronox shareholder and regulatory approvals.                                    
Exxaro awaits the customary regulatory and environmental approvals for the      
Fairbreeze project before construction can commence.  Such approvals were not   
obtained in the second half of 2011, as previously expected.  Detailed design   
was however completed in the second half of 2011.  The Department of            
Agriculture, Environmental Affairs and Rural Development requires additional    
information of Fairbreeze`s Basic Assessment Report on air quality, traffic and 
agricultural studies, as well as rehabilitation reports.  This report, with the 
requested information, was sent on 9 February 2012 to Interested and Affected   
Parties for review by 9 March 2012 and Exxaro also awaits the decision from the 
relevant authorities by the end of June 2012. Commissioning is now only expected
in the first half of 2014.                                                      
A partial reversal of the previous impairments of property, plant and equipment 
at KZN Sands was made in the second half of 2011.  A decision on the reversal of
the remaining portion will be taken once the regulatory and environmental       
approvals for Fairbreeze have been obtained.                                    
Base Metals                                                                     
The formal process to divest from the base metals business commenced early in   
May 2011.  Exxaro received several offers for the Rosh Pinah zinc and lead mine 
in Namibia, following which it has entered into an agreement relating to the    
disposal of its 50,04% shareholding in, and claims against, Rosh Pinah Zinc     
Corporation to a subsidiary of Glencore International AG.  The transaction      
agreement contains terms and conditions that are customary for transactions of  
this nature, including, inter alia, regulatory approvals to be obtained in      
Namibia and South Africa.  It is expected that the transaction will be completed
by the second quarter of 2012.                                                  
No offer was received for the Zincor zinc refinery in Springs, South Africa.  It
was consequently decided to cease zinc production at Zincor due to the refinery 
becoming uneconomical as a result of the high cost of zinc feedstock as well as 
escalating transport, electricity and labour costs.  Zinc production was ramped 
down and finally ceased during December 2011.  The refinery has been put on care
and maintenance with a team appointed to evaluate any potential future use of   
the facility`s assets.                                                          
In addition to the impairment of the carrying value of property, plant and      
equipment at Zincor made on 30 June 2011, additional impairments were also made 
in the second half of 2011 arising from capital commitments for the remainder of
Although discussions for the divestment of Exxaro`s shareholding in the Chifeng 
zinc refinery in China were well advanced, the potential buyer was unable to    
meet contractual obligations and the transaction was terminated.  Exxaro still  
plans to sell this business and renewed efforts will be made during 2012 to     
divest from this asset.                                                         
Exxaro continues to explore opportunities in the energy markets with a focus on 
cleaner energy initiatives. To this end, Exxaro has signed definitive agreements
with a third party resulting in the formation of a new energy company Cennergi  
(Pty) Limited.                                                                  
Exxaro intends submitting five renewable energy projects in terms of the South  
African government`s drive to procure 3 725 MW of renewable energy electricity  
from the private sector.  These projects will be submitted in the second window 
of submission, which closes on 5 March 2012, through the Department of Energy`s 
Request for Qualification and Proposals for new Generation Capacity under the   
IPP Procurement Programme issued on 3 August 2011.  The five projects entail two
solar projects and three wind projects.                                         
The board of directors approved the outcome of the bankable feasibility study   
for a 14MW co-generation plant at Namakwa Sands in the third quarter of 2011.   
Construction of the power plant is expected to start in the second quarter of   
2012, with commercial operation date planned for fourth quarter of 2012.  The   
Clean Development Mechanism registration of this project is underway.           
The pre-feasibility study for the 60MW co-generation plant at Grootegeluk mine  
is in the final stages and is now expected to be completed in the first half of 
The facilitation for the development of a 600MW coal-fired base load power      
station in the Waterberg is underway.  Non-binding term sheets for the off-take 
of 1,150MW of electricity have been signed between Exxaro and industrial off-   
takers.  Four base load IPPs have been selected, with the preferred bidder      
expected to be selected in the first half of 2012.  The pre-feasibility study of
the project will progress during 2012 and a bankable feasibility study is       
planned conditional to the establishment of appropriate enabling environment in 
which such a development can proceed.                                           
A clearer indication of the potential for economic gas flow by means of the     
evaluation of opportunities for underground coal gasification in both South     
Africa and Botswana, is now only expected in the first half of 2012.            
AlloyStream`s large scale demonstration facility to commercialise the technology
for beneficiation of manganese ore into high carbon ferromanganese alloy        
together with Assmang Limited, is expected to be commissioned in the first      
quarter of 2012. The Ferromanganese furnace (Project Letaba) demonstration      
facility was completed in the fourth quarter of 2011.                           
Subsequent to the reporting date of 31 December 2011 and further to the         
unsuccessful off market takeover bid for Australian junior miner Territory      
Resources, Exxaro, through its wholly-owned subsidiary Exxaro Australia Iron    
Investments (Pty) Limited, launched an off market takeover bid for African Iron 
Limited. This offer initially remained open for acceptances until 14 February   
2012.  By 14 February 2012 Exxaro obtained a shareholding of 66,6% in African   
Iron Limited, with the offer automatically extended by a further 14 days until  
28 February 2012, in line with the Australian stock exchange takeover rules.    
African Iron Limited is an Australian-listed and domiciled iron ore development 
company working on the exploration and evaluation of the Mayoko Iron Ore and    
Ngoubou-Ngoubou Projects, located approximately 300km north-east of Pointe-Noire
in the Republic of Congo in central West Africa. It owns a 92% interest in the  
Mayoko Iron Ore Project which currently has a Joint Ore Reserves Committee      
(JORC) code compliant mineral resource of 121 million tonnes of iron ore.  The  
Mayoko Iron Ore Project represents a near term development opportunity in an    
emerging iron ore province in central West Africa with an existing              
underutilised, heavy haulage mineral railway passing within 2km of the main     
prospect.  African Iron`s second opportunity is its 85% interest in the 944km2  
Ngoubou-Ngoubou Authority to Prospect, which is contiguous with Mayoko.  African
Iron Limited`s assets provide an excellent match to Exxaro`s stated objective of
gaining operational exposure in iron ore and represent a reasonably sized       
opportunity, which will allow Exxaro to leverage its bulk commodity and iron ore
23 February 2012                                                                
Deutsche Securities (SA) (Pty) Limited                                          
Date: 23/02/2012 07:11:09 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.