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Interim condensed consolidated financial results for the six months ended 31 August 2014
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”)
Interim condensed consolidated financial results for the six months ended
31 August 2014
Abridged statement of financial position
Unaudited Unaudited
Interim Interim Audited
6 months 6 months for year
ended ended ended
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
Assets
Non-current assets 194 629 197 697 196 448
Tangible assets 19 24 7
Intangible assets 187 175 194 062 190 625
Deferred taxation 7 435 3 611 5 816
Current assets 11 554 26 889 15 470
Inventories 79 9 531 79
Trade and other receivables 395 962 448
Cash and cash equivalents 11 080 16 406 14 943
Total assets 206 183 224 596 211 918
Equity and liabilities
Capital and reserves 173 791 172 119 178 950
Stated capital 54 187 54 187 54 187
Retained earnings/(Accumulated
loss) 86 797 83 915 91 351
Non-controlling interest 32 807 34 017 33 412
Non-current liabilities 31 553 32 700 32 131
Deferred taxation 31 553 32 700 32 131
Current liabilities 839 19 777 837
Trade and other payables 287 16 212 303
Provisions 10 10 10
Taxation payable 542 3 555 524
Total equity and liabilities 206 183 224 596 211 918
Net asset value per share (cents) 84.81 83.99 87.32
Net tangible asset value per share
(cents) 8.87 5.25 9.98
Closing number of shares (`000) 204 929 204 929 204 929
Abridged statement of comprehensive income
Unaudited Unaudited
Interim Interim Audited
6 months 6 months for year
ended ended ended
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
Revenue 63 1 827 12 900
Cost of sales ¬ (1 899) (13 181)
Gross profit/(loss) 63 (72) (281)
Other income ¬ - -
Amortisation of intangible assets (3 451) (3 444) (6 973)
Change in measurement – VAT - - 6 018
Operating expenses (4 220) (5 946) (7 071)
Net loss before interest and
taxation (7 608) (9 462) (8 752)
Investment income 269 370 815
Net loss before taxation (7 339) (9 092) (7 937)
Taxation 2 180 1 954 7 631
Loss for the year (5 159) (7 137) (306)
Other comprehensive income - - ¬
Taxation of other comprehensive
Income - - -
Loss/(profits) attributable to non
Controlling interest 605 605 1 210
Total comprehensive (loss)/income
for the period attributable to the
owners of the company (4 554) (6 532) 904
Reconciliation between earnings and
headline earnings per share
Basic (loss)/earnings per
share(cents) (2.22) (3.19) 0.44
Diluted (loss)/earnings per share
(cents) (1.66) (2.38) 0.33
Headline (loss)/earnings per share
for the half year ended 31 August 2014
Total comprehensive profit/(loss)
for the six month period (4 554) (6 532) 904
Adjustments:
Profit on sale of assets - 85 (85)
Headline loss attributable to
ordinary shareholders (4 554) (6 447) 819
Headline loss per share (cents) (2.22) (3.15) 0.40
Weighted average number of shares
(`000) 204 929 204 929 204 929
Cash flow statements
Unaudited Unaudited
Interim Interim Audited
6 months 6 months for year
ended ended ended
31 August 31 August 28 February
2014 2013 2014
R’000 R’000 R’000
Cash flows from operating
activities (3 845) (3 362) (4 910)
Cash flows from investing
activities (18) - 85
Cash flows from financing
activities - - (4 825)
Net movement in cash and cash
equivalents (3 863) (3 262) (11 842)
Cash and cash equivalents at the
beginning of the period 14 943 19 768 19 768
Cash and cash equivalents at the
end of the period 11 080 16 406 14 943
Statement in changes of equity
Non
Stated Controlling Retained
Capital Interest Earnings Total
R’000 R’000 R’000 R’000
Balance at 1 March 2012 35 487 35 832 101 786 173 105
Non controlling interest share
of loss for the six months
ended 31 August 2012 - (605) - (605)
Total comprehensive loss for
the period - - (5 189) (5 189)
Balance at 31 August 2012 35 487 35 227 96 597 167 311
Effect of share
Based payments 18 700 - - 18 700
Non controlling interest share
of loss for the six months
ended 28 February 2013 - (605) - (605)
Total comprehensive loss for
the six months ended 28
February 2013 - - (6 150) (6 150)
Balance at 28 February 2013 54 187 34 622 90 447 179 256
Non controlling interest share
of loss for the six months
ended 31 August 2013 - (605) - (605)
Total comprehensive loss for
the six months ended 31 August
2013 - - (6 532) (6 532)
Balance at 31 August 2013 54 187 34 017 83 915 172 119
Non controlling interest share
of loss for the six months
ended 28 February 2014 - (605) - (605)
Total comprehensive income for
the six months ended 28
February 2014 - - 6 532 6532
Balance at 28 February 2014 54 187 34 622 90 447 179 256
Non controlling interest share
of loss for the six months
ended 31 August 2014 - (605) - (605)
Total comprehensive loss for
the six months ended 31 August
2014 - - (4 554) (4 554)
Balance at 31 August 2014 54 187 32 807 86 798 173 792
Commentary
Financial and operational overview
1. The directors present the interim consolidated financial results for
the six months ended 31 August 2014.
2. Basis of preparation
These condensed consolidated interim results for the six month period
ended 31 August 2014 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, as
well as the presentation and disclosure requirements of IAS 34 – Interim
Financial Reporting, the JSE Limited Listings Requirements and the
Companies Act of South Africa. The group accounting policies and methods
of measurement and recognition comply in material respects with IFRS and
are consistent with those applied in the previous financial period.
These condensed consolidated interim financial statements have been
prepared under the supervision of Trevor Scott (BCom (Hons), BAcc,
CA(SA))in his capacity as Financial Director.
3. Long term receivables are measured at amortised cost less accumulated
impairment losses.
4. Intangible assets comprising geological information are amortised over
their expected remaining useful life of 27 years.
5. New order mining rights for chrome at Rooderand are amortised over
their expected remaining useful life of 27 years.
6. Nature of business
The company is involved in the exploration of mineral resources and the
possible beneficiation thereof.
7. General review of operations
During the six months under review, the company focused its attention on
the following important issues:
- Finalising a mining services and ore sales agreement with
International Ferro Metals SA Proprietary Limited (“IFM).
- Conducting an exploration and drilling programme at Rooderand in
accordance with the first phase of the agreement with IFM.
- DMR related activities required to conclude the acquisition of the
Platinum Group Metals (“PGM”) prospecting rights from Nkwe Platinum SA and
Realm Resources.
- Completion of a detailed PGM value strategy for PGM consolidation on the
Rooderand property.
8. Prospects
The group currently has a chrome mine in the North West province of the
Republic of South Africa and is focusing on the consolidation of the PGM
resources on its Rooderand chrome property while simultaneously extracting
value from its chrome resource.
The IFM agreement which was announced on SENS on 7 October 2014 has seen
mining commence on Rooderand in the 2014/2015 year. This is a
significant step for the company.
The company is also interested in the exploration and beneficiation of
mineral related opportunities.
9. Changes to the board
There were no changes to the board during the period under review.
10. Dividends
No dividend has been declared for the interim period.
For and on behalf of the board of directors
PJ Cilliers
Managing Director
27 November 2014
Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non-
executive), E Bramley (Non-executive), IWS Collair (Non-executive),
R McConnachie (Non-executive – alternate), TW Scott (FD).
Designated Advisor: Sasfin Capital, a division of Sasfin Bank Limited.
Company Secretary: Vanessa Marques, representing The Green Board CC
Registered Office:
71 Van Beek Avenue
Glenanda
2091
(P.O. Box 758, Mondeor, 2110)
www.chrometco.co.za
Date: 27/11/2014 05:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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