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ASSORE LIMITED
(Registration number 05/37394/06)
Group results for the half-year ended 31 December 2000 and interim dividend
declaration
Consolidated Income Statement
Half-year ended Year ended
31 December 31 December 30 June
2000 1999 2000
R'000 R'000 R'000
Unaudited Unaudited Audited
Turnover 556 753 372 534 963 614
Net operating profit 90 011 40 460 137 981
Dividends received 1 082 564 5 334
Net profit before taxation 91 093 41 024 143 315
Taxation 31 299 16 445 52 248
Net profit for period 59 794 24 579 91 067
Outside shareholders' share
of profit/(loss) (665) 209 1 476
Attributable earnings 60 459 24 370 89 591
Dividends 3 360 2 800 8 400
Retained profit for period 57 099 21 570 81 191
Earnings per share (cents) 216 87 320
Dividends per share (cents) 12 10 30
Consolidated Balance Sheet
At 31 December At 30 June
2000 1999 2000
R'000 R'000 R'000
Unaudited Unaudited Audited
Capital employed
Share capital and reserves 704 300 581 853 639 203
Outside shareholders' interest 11 961 9 119 11 712
Deferred taxation 97 802 66 144 84 635
Long-term provisions 26 824 13 082 30 901
Long-term borrowings 1 860 2 410 1 671
842 747 672 608 768 122
Employment of capital
Fixed and other non-current assets 659 391 425 369 567 796
Environmental rehabilitation fund 9 473 - 16 363
Listed and other investments 78 272 67 529 70 658
Cash resources 77 909 73 495 84 017
Other current assets 463 303 471 728 488 091
Total assets 1 288 348 1 038 121 1 226 925
Current liabilities
- non-interest bearing 107 557 117 254 149 577
- interest bearing 338 044 248 259 309 226
842 747 672 608 768 122
Ordinary shares in issue (million) 28 28 28
Net asset value per share (Rand) 30 24 27
Capital expenditure (million) 113,9 61,7 211,9
Capital commitments (million) 492,1 167,1 588,6
Statement of changes in equity
Non-
Share distributable- Distributable
capital reserve reserve Total
R'000 R'000 R'000 R'000
Balance at 30 June 1999 700 13 571 532 760 547 031
Net increase in market
value of listed investments 9 287 9 287
Foreign exchange gain 95 95
Foreign currency
translation reserve 1 599 1 599
Net profit for the year 89 591 89 591
Ordinary dividend (8 400) (8 400)
Balance at 30 June 2000 700 24 552 613 951 639 203
Net increase in market
value of listed investments 7 104 7 104
Foreign exchange gain (57) (57)
Foreign currency
translation reserve 951 951
Net profit for the half-year 60 459 60 459
Ordinary dividend (3 360) (3 360)
Balance at
31 December 2000 700 32 550 671 050 704 300
Comment
As anticipated in the annual report, the substantial improvement in the latter
half of the previous financial year was sustained into the first half of the
current financial year, being the period under review. Earnings over this
period rose by 148,1% to R60,5 million, equivalent to 216 cents per share and
the interim dividend has been raised to 12 cents a share.
The group's 45% holding in Assmang, being its principal investment, contributed
predominantly towards this pleasing performance with a 193% improvement in
interim earnings. This, in turn, reflected benefits achieved through the
weakening of the South African Rand against foreign currencies, notably the
US$, and cost containment at operational levels.
Manganese ore sales rose by 8% to 612 000 tons while iron ore sales decreased
by a similar percentage to 1 802 000 tons, during the period under review.
Volume declines in manganese alloys from 74 000 tons to 65 000 and chrome
alloys from 49 000 to 45 000 tons, were more than compensated for by higher
South Africa Rand sales prices, contributing R29,7 million to profits against
an R8 million loss a year ago.
Capital expenditure during the period amounted to R113,9 million, most of which
was committed to Assmang projects. These included the R517 million shaft
complex at Nchwaning manganese mine which is on track for its scheduled opening
in late 2003 and the R375 million expansion programme at the Feralloys' chrome
alloys division. The latter project is ahead of schedule and due for
commissioning early in the next financial year and comprises the installation
of a 54 MVA furnace and a 350 000 tons/annum pelletising plant.
During the second half-year, the sale of Assmang's Dwarsrivier platinum group
mineral rights is expected to be concluded and it should significantly enhance
Assmang's cash resources and ability to fund expansion internally.
Circumstances remain favourable for the achievement in the second half of the
year of results similar to those obtained in the first half.
Interim dividend No. 88 of 12 cents per share was declared payable to
shareholders recorded in the register of the company at the close of business
on 23 March 2001. The transfer books and register of members will be closed
from 24 March 2001 to 31 March 2001, both days inclusive, and dividend warrants
will be posted to shareholders on or about 4 May 2001.
On behalf of the board
Desmond Sacco R J Carpenter
Chairman Deputy Chairman
Johannesburg
28 February 2001
Registered office: Assore House, 6 St Andrews Road, Parktown, Johannesburg, 219
Transfer secretaries: Computershare Services Limited, 41 Fox Street,
Johannesburg, 2001
Company secretaries: African Mining and Trust Company Limited
Directors: Desmond Sacco (Chairman and Managing Director), R J Carpenter
(Deputy Chairman), R A Chute, C J Cory, P C Crous, B M Hawksworth, Alternate: J
W Lewis (British)
ASSORE STARTS YEAR STRONGLY
PRESS RELEASE
Mining group Assore has delivered on expectations of a good year with interim
earnings per share up by 148,3% at 216 cents for the half year ended 31
December 2000.
Chairman Des Sacco expects the second half year to at least match the first
half. This suggests earnings for the year of around 430 cents or about 35% up
on the previous year's 320 cents. The strong performance now evident, started
in the second half of last year as a combination of a weaker rand and cost
containment, began to boost the performance at Assore's principal investment,
its 45% holding in Assmang.
Operating performance at Assmang during the year was satisfactory with
manganese ore sales growing by 8% to 612 000 tons while iron ore sales declined
by 8% to 1 802 000 tons.
Alloy sales were down in respect of both manganese at 65 000 tons and chrome at
45 000 tons but significantly higher sales prices in rand terms raised margins
and more than compensated with profits at R29,7 million against a R8 million
loss in the previous year
Capital projects are on track at the group's various operating units with the
R517 million shaft complex at Nchwanning manganese mine due to open late in
2003 and the Feralloys chrome division's R375 million expansion ahead of
schedule for commissioning early in the next financial year.
Part funding of these and other projects is likely to be facilitated by the
possible sale of Assmang's Dwarsrivier platinum group metal rights which should
be finalised shortly.
Turnover for the six months rose by 49,5% to R556,8 million and operating
profit by 122% to R90,1 million, emphasising the growth in operating margin.
Attributable earnings rose to R60,5 million from R24,4 million and the interim
dividend has been increased by 20% to 12 cents a share. The previous year's
annual distribution was a 10,7 times covered 30 cents.
The balance sheet remains healthy with cash resources of almost R78 million and
a net asset value of R30, up 25% on the year.
ends
FOR FURTHER INFORMATION, PLEASE CONTACT:
SETON THOMPSON (031) 2097622 / 0828979365
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