Delta EMD Limited
(Incorporated in the Republic of South Africa)
Registration number 1919/006020/06
Share code: DTA
(?Delta EMD? or ?the Group?)
TRADING UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 27 JUNE 2016
The salvage and sale of the plant and equipment formerly located at
the Group?s Nelspruit plant site is complete and payment has been
received for those assets. Efforts to market and sell the Nelspruit
plant site continue, and the Group has determined that an impairment
of that asset in not necessary.
The purchase of a parcel of land included in the Nelspruit plant site
that historically was leased will be completed shortly when payment
of R20 million will be made in full. That parcel will be included in
an eventual sale of the site.
A definitive remediation order for the Nelspruit plant site was
received from the Department of Environmental Affairs and the
required remediation systems have been installed. Periodic dosing
and monitoring of the installed boreholes continues.
In terms of paragraph 3.4 (b) of the Listings Requirements of the JSE
Limited, companies are required to publish a trading statement in the
event that they are satisfied with a reasonable degree of certainty
that the earnings per share and headline earnings per share for the
period will differ from the previous corresponding reporting period
by at least 20%.
Delta EMD is currently finalising its results for the six months
ended 27 June 2016 (?the period?). The results will be released in
September 2016. Shareholders are advised that Delta EMD expects its
loss per share for the period to be between 50% and 70% less than the
loss per share of 18 cents reported for the previous corresponding
reporting period (expected loss per share between 6 and 9 cents).
Headline loss per share for the period is expected to be between 50%
and 70% less compared to the loss of 19 cents per share reported for
the previous corresponding reporting period (expected headline loss
per share between 6 and 9 cents).
The Group?s expenses relating to the discontinuation of its business
are expected to be R5.8 million for the period (2015: R8.6 million),
and include salaries for the implementation team, water and power
supply, and general expenses mostly made up of security for the
Nelspruit plant site. Administration expenses for the period are
expected to be R2.5 million (2015: R9.7 million)
The forecast financial information on which this trading statement is
based has not been reviewed and reported on by the Group?s external
26 July 2016
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 26/07/2016 08:21:00 Supplied by www.sharenet.co.za
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