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PETRA MINING LIMITED
(REG NO. 72/01062/06)
("PETMIN")
CONSOLIDATED ANNUAL REPORT FOR THE YEAR ENDED 28 FEBRUARY 1998
GROUP INCOME STATEMENT
AUDITED AUDITED
28/O2/98 28/O2/97
R'000 R'000
TURNOVER 47 958 84 966
OPERATING PROFIT 3 921 12 674
INTEREST PAID (2 49O) (973)
PROFIT BEFORE TAX 1 431 11 701
ABNORMAL ITEM 19 535 -
PROFIT ATTRIBUTABLE TO MINORITY SHAREHOLDERS - (10)
PROFIT ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 20 966 11 691
TAXATION (360) (3 640)
PROFIT AFTER TAXATION 20 606 8 051
DIVIDEND RECOMMENDED (2 881) (1 101)
NET PROFIT AFTER DIVIDENDS 17 725 6 950
TRANSFER FROM/(TO) NON-DISTRIBUTABLE RESERVES 3 237 (1 737)
RETAINED PROFIT FOR THE YEAR 20 962 5 213
RETAINED PROFIT/(ACCUMULATED LOSS) BEGINNING OF
THE YEAR 3 951 (1 262)
RETAINED PROFIT AT THE END OF THE YEAR 24 913 3 951
NUMBER OF ORDINARY SHARES IN ISSUE 28 812 560 11 014 040
FULLY DILUTED EARNINGS PER SHARE (IN CENTS) 72 73
DIVIDEND PER SHARE (IN CENTS) 10 10
GROUP BALANCE SHEET
AUDITED AUDITED
28/O2/98 28/O2/97
R'000 R'000
CAPITAL EMPLOYED
SHARE CAPITAL 7 203 2 754
SHARE PREMIUM 78 480 12 473
NON-DISTRIBUTABLE RESERVES 12 096 8 208
DISTRIBUTABLE RESERVES 24 913 3 951
TOTAL SHAREHOLDERS, FUNDS 122 692 27 386
OUTSIDE SHAREHOLDERS' INTERESTS - 10
ORDINARY SHAREHOLDERS' INTEREST 122 692 27 396
DEFERRED TAXATION - 106
LONG TERM LIABILITIES 800 5 626
123 492 33 128
EMPLOYMENT OF CAPITAL
FIXED ASSETS 59 868 36 779
QUOTED SHARE INVESTMENT 69 000 -
UNQUOTED SHARE INVESTMENTS 2 050 127
NET CURRENT LIABILITIES (7 426) (3 778)
123 492 33 128
NET ASSET VALUE PER SHARE (IN CENTS) 426 248
COMMENTS
1. IN THE PAST FINANCIAL YEAR PETMIN AND ITS SUBSIDIARIES CONCLUDED VARIOUS
TRANSACTIONS RESULTING IN A SIGNIFICANT STRATEGIC CHANGE IN DIRECTION.
2. AT THE START OF PETMIN'S FINANCIAL YEAR, PETMIN AND ITS SUBSIDIARIES ACTED
AS NON-CORE SERVICE PROVIDERS TO THE GOLD AND PLATINUM MINES, OPERATED THEIR
OWN GOLD MINE AND WERE INVOLVED IN THE GRANITE BENEFICIATION INDUSTRIES.
3. TO EXPAND PETMIN'S PARTICIPATION IN THE MINING INDUSTRY IT ACQUIRED
INVESTMENTS WHICH COMPLEMENTED ITS EXISTING ACTIVITIES AT THE TIME.
3.1 THE TOTAL PURCHASE PRICE OF THE INVESTMENTS OF R71 194 080 WAS SETTLED
THROUGH THE ISSUE OF 17 798 520 NEW PETMIN SHARES VALUED AT 400 CENTS A SHARE.
AS A RESULT OF THE TRANSACTION PETMIN'S ISSUED SHARE CAPITAL INCREASED FROM 11
0L4 040 TO 28 812 560 ORDINARY SHARES.
3.2 THE ACQUISITIONS AND SUBSEQUENT MERGER OF THE VARIOUS MINING OPERATIONS
INCREASED THE MERGED MINE'S ECONOMICALLY MINEABLE IN-SITU TONS WITH 297% TO
APPROXIMATELY 7 341 000 TONS.
3.3 THE ACQUISITION OF 51% OF JIC MINING AND CONSTRUCTION (PROPRIETARY) LIMITED
("JIC") (A MINING SERVICES COMPANY TO THE GOLD AND PLATINUM INDUSTRY WITH A 1O
YEAR PROVEN TRACK RECORD), EFFECTIVELY INCREASED THE GROUP'S MINING SERVICES
DIVISION CAPABILITIES WITH AN ESTIMATED 300%.
4. IN PETMIN'S 1997 ANNUAL REPORT IT WAS NOTED THAT "IT IS THE INTENTION TO
INTRODUCE PETMIN TO VARIOUS EMPOWERMENT GROUPS, FINANCIAL INSTITUTIONS,
STOCKBROKERS AND THE GENERAL PUBLIC". PETMIN ANNOUNCED IN THE PRESS ON 24
OCTOBER 1997 THAT MOLOPE FOODS LIMITED ("MOLOPE") A LISTED EMPOWERMENT GROUP,
ACQUIRED 51% OF JIC AND L00% OF PETRA BLACK GRANITE (PROPRIETARY) LIMITED
("PETRA BLACK") FOR R102 720 000 SUBJECT TO CERTAIN PROFIT WARRANTIES. THESE
TWO COMPANIES REPRESENTED ALL OF PETMIN'S ASSETS OPERATING IN THE MINING
SERVICES INDUSTRY.
5. DURING THE YEAR PETMIN DISPOSED ALL OF ITS GRANITE BENEFICIATION INVESTMENTS
6. SUBSEQUENT TO THE DISPOSALS, PETMIN'S ASSET BASE HAS CHANGED AND THE
DIRECTORS ARE REVIEWING VARIOUS OPTIONS PERTAINING TO THE CHANGE OF DIRECTION
OF THE GROUP WHICH WILL ALLOW THE GROUP TO UNLOCK SHAREHOLDERS WEALTH.
SHAREHOLDERS WILL BE ADVISED IN DUE COURSE OF THE FINAL DECISION. THE
UNDERLYING INVESTMENTS AND ASSETS OF PETMIN PRIMARILY CONSIST OF 17 250 000
MOLOPE "N" ORDINARY SHARES AND 100% OF THE ISSUED SHARE CAPITAL OF NIGEL GOLD
MINING COMPANY (PROPRIETARY) LIMITED ("NIGEL").
7. THE MOLOPE "N" ORDINARY SHARES HAVE BEEN VALUED AT COST (400 CENTS PER
SHARE). THE NUMBER OF MOLOPE "N" SHARES ARE BASED ON THE ASSUMPTION THAT THE
PROFIT WARRANTIES WILL BE ACHIEVED. PETMIN'S BOARD OF DIRECTORS ARE CONFIDENT
THAT THE PROFIT WARRANTIES WILL BE EXCEEDED WHICH WILL RESULT IN AN INCREASE IN
THE NUMBER OF MOLOPE "N" ORDINARY SHARES.
8. THE ABNORMAL ITEM REPRESENTS THE CAPITAL GAIN WITH THE DISPOSAL OF
INVESTMENTS IN SUBSIDIARIES REDUCED WITH THE COST OF CONTROL INCURRED AS A
RESULT OF THE TRANSACTIONS IN 3.1 ABOVE WHICH WERE WRITTEN OFF.
9. EARNINGS PER SHARE ARE CALCULATED ON 28 812 560 ORDINARY SHARES IN ISSUE
DURING THE YEAR AND PROFIT AFTER TAXATION OF R20 606 000.
10. NIGEL IS IN A DEVELOPMENT PHASE AND ALL COSTS RELATING TO THE DEVELOPMENT
AND EVALUATION OF THE MINERAL RESOURCES AT THE NUMBER 1 AND NUMBER 2 SHAFTS AT
SPRINGS DAGGAFONTEIN AND THE DROOGGEBULT SHAFT AND EXPENDITURE ON THE EXTENSION
OF THE PRODUCTION FACILITIES AT NUMBER 2 SHAFT AT SPRINGS DAGGAFONTEIN AND THE
DROOGGEBULT SHAFT HAVE BEEN CAPITALISED.
11. AS A RESULT OF THE ABOVEMENTIONED DISPOSALS AND THE CHANGE IN PETMIN'S
ASSET BASE COMPARATIVE GROWTH FIGURES AND SEGMENTAL ANALYSIS ARE OF
INSIGNIFICANT VALUE.
12. PETMIN'S ANNUAL REPORT WILL BE MAILED TO SHAREHOLDERS SHORTLY.
13. A FINAL NET DIVIDEND OF 10 CENT PER SHARE HAS BEEN PROPOSED.
FOR AND ON BEHALF OF THE BOARD
PJ NEL PF DU PREEZ
29 MAY 1998
DIRECTORS: P J NEL (NON-EXECUTIVE CHAIRMAN), P F DU PREEZ (MANAGING DIRECTOR),
J A STRIJDOM, H V W CHAPMAN, J C DU PREEZ, G J H COMBRINCK
REGISTERED OFFICE: 28 VISAGIE STREET, GUARANTEE HOUSE, 5TH FLOOR.
P O BOX 9446, PRETORIA, 0001
TRANSFER SECRETARIES: MERCANTILE REGISTRARS, 94 PRESIDENT STREET,
7TH FLOOR. P O BOX 1O53, JOHANNESBURG, 2000
AUDITORS: PRICE WATERHOUSE, GOBIE STREET, NEWLANDS. P O BOX 35296,
MENLOPARK, 0102
