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Unaudited Interim Condensed Consolidated Financial Results for the Six Months Ended 31 August 2016
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO ISIN: ZAE000070249
(‘Chrometco’ or ‘the group’ or “the company”)
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR
THE SIX MONTHS ENDED 31 AUGUST 2016
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Interim Interim for year
as at as at as at
31 August 31 August 29 February
2016 2015 2016
R’000 R’000 R’000
ASSETS
Non-current assets 278 024 184 715 284 761
Tangible assets 1 624 2 223 1 999
Intangible assets 273 322 180 316 279 755
Deferred taxation – - –
Environmental rehabilitation investments
3 078 2 176 3 007
Current assets 985 5 335 2 477
Inventories – - –
Trade and other receivables 483 518 792
Cash and cash equivalents 502 4 817 1 685
Total assets 279 009 190 050 287 238
EQUITY AND LIABILITIES
Capital and reserves 221 019 155 753 233 867
Stated capital 158 062 54 187 158 062
Retained earnings 38 874 69 970 49 960
Attributable to ordinary
shareholders 196 936 124 157 208 022
Non-controlling interest 24 083 31 596 25 845
Non-current liabilities 56 824 33 525 53 041
Deferred taxation 52 194 30 448 49 009
Environmental Rehabilitation
Provision 4 630 3 077 4 032
Current liabilities 1 166 772 330
Trade and other payables 1 156 762 320
Provisions 10 10 10
Taxation payable – - –
Total equity and
liabilities 279 009 190 050 287 238
Net asset value per
share 96.10 76.00 75.66
(cents)
Closing number of shares 274 929 204 929 274 929
(`000)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Interim Interim for year
6 months 6 months ended
ended ended 29 February
31 August 31 August 2016
2016 2015
R’000 R’000 R’000
Revenue - 1 401 1 401
Other income 165 – 2 811
Amortisation of intangible
assets (3 101) (3 437) (7 872)
Operating expenses (6 039) (3 746) (9 134)
Net loss before interest
and taxation (8 975) (5 782) (12 794)
Investment income - 176 245
Finance charges (689) (85) (341)
Net loss before taxation (9 664) (5 691) (12 890)
Taxation (3 184) 517 (18 046)
Loss for the year (12 848) (5 174) (30 936)
Total comprehensive loss (12 848) (5 174) (30 936)
Attributable to
non-controlling interest (1 762) (605) (6 357)
Attributable to the owners of
the parent (11 086) (4 569) (24 579)
Loss per share
Basic loss per share
(cents) (8.06) (2.23) (10.77)
Diluted loss per share
(cents) (0.81) (1.66) (8.94)
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
Unaudited Unaudited Audited
Interim Interim for year
6 months 6 months ended
ended ended 29 February
31 August 31 August 2016
2016 2015
R’000 R’000 R’000
Cash flows from operating
activities (1 183) (1 919) (4 221)
Cash flows from investing
activities - (598) (1 428)
Cash flows from financing
activities – – –
Net movement in cash and cash
equivalents (1 183) (2 517) (5 649)
Cash and cash equivalents at
the beginning of the period 1 685 7 334 7 334
Cash and cash equivalents at
the end of the period. 502 4 817 1 685
CONDENSED CONSOLIDATED STATEMENT IN CHANGES OF EQUITY
Stated Non Controlling Retained
Capital Interest Earnings Total
R’000 R’000 R’000 R’000
Balance at 1
March 2015. 54 187 32 201 74 539 160 927
Non controlling interest
share of loss for
the six months
ended 31
August 2015 – (605) - (605)
Total comprehensive
loss for the
period – – (4 569) (4 569)
Balance at 31
August 2015 54 187 31 596 69 970 155 753
Non controlling interest
share of loss for
the six months
ended 29 February 2016
– (5 751) - (5 751)
Total comprehensive
loss for the six
months ended 29
February 2016 – – (20 010) (20 010)
Effect of share-based
103 875 - - 103 875
payment
Balance at
29 February 2016
158 062 25 845 49 960 233 867
Non controlling interest
share of loss for
the six months
ended 31 August 2016
– (1 762) - (1 762)
Total comprehensive
loss for the six
months ended 31
August 2016 – – (11 086) (11 086)
Balance at
31 August 2016
158 062 24 083 38 874 221 019
COMMENTARY – Financial and operational overview.
1. The directors present the unaudited interim condensed
consolidated financial results for the six months ended 31
August 2016.
2. Basis of preparation
The unaudited interim condensed consolidated group annual
financial statements for the period ended 31 August 2016 have
been prepared in accordance with the framework concepts and
the recognition and measurement criteria of International
Financial Reporting Standards (“IFRS”), and the SAICA
Financial Reporting Guides as issued by the Accounting
Practices Committee, the Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council as well as
the presentation and disclosure requirements of IAS 34 –
Interim Financial Reporting, the JSE Listings Requirements and
the Companies Act of South Africa.
3. Significant accounting policies
The unaudited interim condensed consolidated results have been
prepared under the historical cost convention, except for the
valuation at fair value of intangible assets comprising mining
rights and geological information acquired as part of a
business combination or by share based payment transaction.
The group accounting policies and methods of measurement and
recognition comply in material respects with IFRS and are
consistent with those applied in the financial period ended 29
February 2016 and 31 August 2015.
4. Intangible assets comprising geological valuation for
chrome and PGMs are amortised over their expected remaining
useful life of 26.25 years. The asset increased in value due
to the acquisition of the PGMs that took place on 11 November
2015, which is just prior to the period under review.
5.The resource statement as disclised in the 2016 Integrated
Report has not changed.
6. Headline loss per share for the six months ended 31 August
2016
Total comprehensive loss
for the six months (11 086) (4 569) (24 579)
Headline loss attributable
to ordinary shareholders (11 086) (4 569) (24 579)
Headline loss per share
(cents) (8.06) (2.23) (10.77)
Diluted Headline loss per
share (0.81) (1.66) (8.94)
Weighted average number of
shares (`000) 137 464 204 929 228 262
Diluted weighted average number
Of shares (‘000) 1 233 750 274 929 274 929
7. These results have been prepared under the supervision of
the Financial Director, NI Waisberg, CFA, and have not been
audited or reviewed by the Group’s auditors, Mazars.
8. Going Concern
The Board has considered the going concern assertion in terms
of which the interim results are presented, and concluded that
although cash flow uncertainties exist in the next 12 months,
active management of cash flows will ensure that the assertion
remains valid. The major uncertainty relates to the quantum
and timing of receipt of the outstanding amounts owed by IFM
to the group as referred to in note 11 below.
9. Nature of business.
The company is involved in the mining and exploration of
mineral resources and the possible further beneficiation
thereof.
10. General review of operations.
During the six months under review, the company focused its
attention on the following important issues:-
– DMR related activities required to conclude the acquisition
of the PGM prospecting rights from Nkwe Platinum SA and Realm
Resources and the issue of 70 million new CMO shares, 35
million to Realm and NKWE respectively.
– Chrometco entered into agreements with Sail Minerals (Pty)
Ltd (“SAIL”), the details thereof were released on SENS on 25
August 2016.
- No mining or sale of ore took place over this period, but
cash was received from a VAT return as well as a part
settlement of the IFM debt.
- Operating cost increased mostly related to the SAIL
transaction.
- The value of the PGM mining right on Rooderand increased the
asset value. As a counter the increased valuation resulted in
an increased depreciation, which impacted the income
statement.
11. Prospects
The group currently has entered into agreements with SAIL
which will see the company acquire an operational chrome mine
as well as a chrome prospecting right.
This should reposition Chrometco as a significant Chrome
player.
12. Changes to the board
Post the period under review, Mr NL Waisberg has been
appointed as full time FD.
13. Dividends
No dividend has been declared for the interim period.
For and on behalf of the board of directors
PJ Cilliers
Managing Director
1 December 2016
Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter
(Non-executive), NL Waisberg (FD), E Bramley (Non-executive),
IWS Collair (Non-executive).
Designated Advisor: PSG Capital Proprietary Limited.
Company Secretary: The Green Board CC
Registered Office:
71 Van Beek Avenue Glenanda
Johannesburg
2091
(P.O.Box 758, Mondeor, 2110)
www.chrometco.co.za
Date: 01/12/2016 02:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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