Assore Limited - Press Release

Assore Limited - Press Release                                                  
ASSORE BOOSTS HEADLINE EARNINGS BY 86,8%                                        
  Mining house Assore completed another impressive financial year at 30 June    
2002 with the growth in headline earnings per share rising 86,8% to 903,2 cents 
compared with 38,2% at the interim stage.                                       
This reflects a 126,0% surge in earnings growth in the second half year as the  
benefits of the rand`s rapid depreciation against the US dollar during the first
half flowed through to Assore`s 45,7% holding in Assmang, which company it      
jointly controls with Avmin.                                                    
  Operating profit grew by 76,4% to R416,32 million on the back of a 32% rise in
revenue at R1 514,4 million. Attributable earnings from the group`s normal      
activities improved by 82,4% to R253,7 million to which was added  R243,3       
million being Assore`s share of the R543 million profit on the sale of Assmang`s
PGM rights, giving total attributable income of R502,0 million.                 
  Assore`s role as sole marketing agent for Assmang`s products generated further
growth for the group with sales improving in all sectors except manganese alloys
which recorded a modest decrease. Rand prices of the products showed significant
increases in most cases, in line with the rand/US dollar exchange rate.         
  The group`s share of capex declined to R193,1 million against the previous    
year`s R318,0 million as the various projects came on stream and was targeted   
primarily at Assmang`s new charge chrome smelter at Machadadorp, which was      
commissioned in January 2002 and the new shaft at Nchwaning manganese mine due  
for completion within schedule and budget towards the end of 2003.              
The group`s balance sheet remains healthy with the net asset value per share  
rising from R29,3 to R47,8 and, as expected, group borrowings showed a marked   
decrease to R353,4 million, following receipt of the proceeds from the sale of  
the PGM rights.                                                                 
Looking ahead, Assore chairman Des Sacco remains cautious, citing the         
background volatility in world affairs and consequently, in economies and       
currencies. He reiterates that the relationship between the rand and the US     
dollar continues to be a key arbiter to group results.                          
Based on current conditions, he is hopeful of another good year for world     
steel output and consequently for iron and manganese ore sales although US      
dollar prices have declined marginally.                                         
  He expects the group`s manganese alloy sales to rise in line with higher      
production at Cato Ridge but again warns that prices may come under pressure.   
  "Stainless steel is looking positive with higher volumes and we are looking   
towards better margins in the ferrochrome sector" says Sacco.                   
A 40 cents per share final dividend has been declared for a total of 80 cents   
for the year. This includes a once-off distribution related to the sale of      
Assmang`s Dwarsrivier PGM rights and is not directly comparable with the        
previous year`s 32 cents a share.                                               
  Assore`s shares are trading at around R67,00 cents at which level the latest  
headline earnings per share give a multiple of  7,4.                            
ends                                                                            
Date: 17/09/2002 04:01:00 PM Supplied by www.sharenet.co.za                     
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