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Interim Condensed Consolidated Financial Results for the Six Months Ended 31 August 2015
Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO ISIN: ZAE00007020249
("Chrometco" or "the group" or “the company”)
INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Interim Interim for year
as at as at as at
31 August 31 August 28 February
2015 2014 2015
R'000 R'000 R’000
ASSETS
Non-current assets 184 715 194 629 187 597
Tangible assets 2 223 19 2 267
Intangible Assets 180 316 187 175 183 751
Deferred Taxation - 7 435 -
Environmental Rehabilitation Investments 2 176 - 1 579
Current assets 5 335 11 554 8 373
Inventories - 79 -
Trade and other receivables 518 395 1 039
Cash and cash equivalents 4 817 11 080 7 334
Total assets 190 050 206 183 195 970
EQUITY AND LIABILITIES
Capital and reserves 155 753 173 791 160 927
Stated capital 54 187 54 187 54 187
Retained earnings 69 970 86 797 74 539
Attributable to ordinary Shareholders 124 157 140 984 128 726
Non-Controlling Interest 31 596 32 807 32 201
Non-current liabilities 33 525 31 553 33 865
Deferred taxation 30 448 31 553 30 963
Environmental Rehab Provision 3 077 - 2 902
Current liabilities 772 839 1 178
Trade and other payables 762 287 1 168
Provisions 10 10 10
Taxation payable - 542 -
Total equity and liabilities 190 050 206 183 195 970
Net asset value per share 76.00 84.81 78.53
(cents)
Net tangible asset value per 2.87 8.87 3.97
share (cents)
Closing number of shares 204 929 204 929 204 929
(`000)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Interim Interim for year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2015
2015 2014
R'000 R'000 R’000
Revenue 1 401 63 672
Other income - - 1 102
Amortisation of intangible assets (3 437) (3 451) (6 873)
Operating expenses (3 746) (4 220) (8 749)
Net loss before interest
and taxation (5 782) (7 608) (13 848)
Investment income 176 269 536
Finance Charges (85) - (157)
Net loss before taxation (5 691) (7 339) (13 469)
Taxation 517 2 180 (4 553)
Loss for the year (5 174) (5 159) (18 022)
Total Comprehensive Loss (5 174) (5 159) (18 022)
Attributable to non-controlling interest (605) (605) (1 210)
Attributable to the owners of the parent (4 569) (4 554) (16 812)
Loss per share
Basic loss per share(cents) (2.23) (2.22) (8.20)
Diluted loss per share (cents) (1.66) (1.66) (6.12)
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
Unaudited Unaudited Audited
Interim Interim for year
6 months 6 months ended
ended ended 28 February
31 August 31 August 2015
2015 2014
R'000 R'000 R’000
Cash flows from operating
activities (1 919) (3 845) (6 012)
Cash flows from investing
activities (598) (18) (1 597)
Cash flows from financing
activities - - -
Net movement in cash and cash
equivalents (2 517) (3 863) (7 609)
Cash and cash equivalents at
the beginning of the period 7 334 14 943 14 943
Cash and cash equivalents at
the end of the period. 4 817 11 080 7 334
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 2014 54 187 33 412 91 351 178 950
Non controlling interest
share of loss for
the six months
ended 31
August 2014 - (605) - (605)
Total comprehensive
loss for the period - - (4 554) (4 554)
Balance at 31
August 2014 54 187 32 807 86 797 173 791
Non controlling interest
share of loss for
the six months
ended 28 February 2015 - (605) - (605)
Total comprehensive
loss for the six
months ended 28
February 2015 - - (12 258) (12 258)
Balance at
28 February 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 six
months ended 31
August 2015 - - (4 569) (4 569)
Balance at
31 August 2015 54 187 31 596 69 970 155 753
COMMENTARY – Financial and operational overview.
1. The directors present the interim consolidated financial results for the six months ended 31
August 2015.
2. Basis of preparation
The condensed consolidated group annual financial statements for the period ended 31 August 2015
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 consolidated condensed 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 28
February 2015 and 31 August 2014.
4. Intangible assets comprising geological information are amortised over their expected remaining
useful life of 26.25 years.
5. New order mining rights for chrome at Rooderand are amortised over their expected remaining
useful life of 26.25 years.
6. Headline loss per share for the half year ended 31 August 2015
Total comprehensive loss
for the six months (4 569) (4 554) (16 812)
Headline loss attributable
to ordinary shareholders (4 569) (4 554) (16 812)
Headline loss per share (cents) (2.23) (2.22) (8.20)
Diluted Headline loss per share (1.66) (1.66) (6.12)
Weighted average number of
shares (`000) 204 929 204 929 204 929
Diluted weighted average number
Of shares (‘000) 274 929 274 929 274 929
7. These results have been prepared under the supervision of the Financial Director, MB
Scott(CA)SA, 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:-
- Mining Chrome Ore at Rooderand in accordance with the second phase of the agreement with IFM as
well as an ongoing exploration and drilling program.
- DMR related activities required to conclude the acquisition of the PGM prospecting rights from
Nkwe Platinum SA and Realm Resources, which has been concluded post this financial period and
resulted in the issue of 70 million new CMO shares, 35 million to Realm and NKWE respectively.
- Evaluating ways to extract value from the Rooderand mining assets as well as evaluating other
opportunities.
11. Prospects
The group currently has a chrome and PGM mine in the North West province of the Republic of South
Africa and is focusing on the further consolidation of the resources on and around its Rooderand
property while simultaneously extracting value from its chrome and PGM resources.
The IFM agreement saw mining commence on Rooderand in the 2014/2015 year. Whilst this was a
significant step for the company at the time, IFM entered business rescue proceedings in August
2015 and chrome mining at Rooderand has consequently ceased for the time being. The group remains
a creditor of IFM and the prospects for recovering the R2.8m due to the group depends on the terms
of the business rescue plan to be proposed by the appointed Business Rescue Practitioners.
The company continues to look at other mineral related mining, exploration and beneficiation
opportunities in this very depressed market.
12. Changes to the board
During the period under review, Mr T Scott resigned as Financial Director, and Mr MB Scott (no
relation) was appointed in his stead on 1 July 2015. Mr M Scott has subsequently resigned from the
Board with effect from 1 December 2015.
13. Dividends
No dividend has been declared for the interim period.
For and on behalf of the board of directors
PJ Cilliers
Managing Director
30 November 2015
Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non-executive), E Bramley (Non-
executive), IWS Collair (Non-executive), R McConnachie (Non-executive – alternate), MB Scott (FD).
Designated Advisor: PSG Capital (Pty) Ltd.
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: 30/11/2015 04:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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