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Petra Mining Limited - Results for the year and Quarter ended 30 June 2002
PETRA MINING LIMITED
(Reg No. 1972/001062/06)
(Incorporated in the Republic of South Africa)
JSE share code: PET ISIN: ZAE000010237
("Petmin" or "the Company")
Results for the year and quarter ended 30 June 2002
Group Income Statement (Abridged)
Audited Unaudited
Year ended Quarter ended
R`000 30/6/2002 30/6/2001 30/6/2002 31/3/2002
Revenue 366 990 276 031 96 134 101 027
Cost of sales (306 456) (246 295) (81 980) (78 100)
Gross profit 60 534 29 736 14 154 22 927
Other operating income 2 026 5 877 519 481
Other operating expenses (7 711) (16 141) (2 227) (2 086)
Operating profit before 54 849 19 472 12 446 21 322
amortisation
Amortisation of gold mining (15 089) (12 605) (5 639) (3 150)
assets
Profit on ordinary activities 39 760 6 867 6 807 18 172
before financing costs
Financing (costs)/income (3 427) (4 655) 54 (699)
Net profit before taxation 36 333 2 212 6 861 17 473
Taxation (1 500) - (1 500) -
Net profit after taxation 34 833 2 212 5 361 17 473
Earnings per Ordinary Share
Audited Unaudited
Year ended Quarter ended
30/6/2002 30/6/2001 30/6/2002 31/3/2002
Weighted average number of 80 80 80 80
ordinary shares in issue
(million)
Basic earnings per share 34 833 2 212 5 361 17 473
Net profit attributable to
ordinary shareholders
(R`000)
Basic earnings per share 43,54 2,77 6,70 21,84
(cents)
Headline earnings per share 34 833 2 212 5 361 17 473
Net profit attributable to
ordinary shareholders
(R`000)
Impairment of investment 67 - 67 -
(R`000)
34 900 2 212 5 428 17 473
Headline earnings per share 43,63 2,77 6,78 21,84
(cents)
Group Balance Sheet (Abridged)
Audited Unaudited
R`000 30/6/2002 30/6/2001 31/3/2002
Assets
Non-current assets 215 676 201 501 205 458
Property, plant and equipment 204 178 190 426 193 908
Investments 11 498 11 075 11 550
Current assets 54 865 61 662 68 303
Inventories 20 258 24 191 20 556
Receivables and prepayments 31 083 37 471 47 747
Cash and cash equivalents 3 524 - -
Total assets 270 541 263 163 273 761
Equity and liabilities 176 121 140 770 170 244
Capital and reserves
Issued share capital 20 000 20 000 20 000
Share premium 101 287 101 287 101 287
Non-distributable reserve 6 000 6 000 6 000
Retained earnings 48 834 13 483 42 957
Non-current liabilities 24 354 24 324 24 320
Long-term liabilities 361 404 404
Long-term provisions 23 993 23 920 23 916
Current liabilities 70 066 98 069 79 197
Trade and other payables 68 435 83 031 69 098
Bank overdraft - 7 123 9 703
Short-term loan - 7 000 -
Shareholders for dividend - 519 -
Current portion of long-term 131 396 396
liabilities
Taxation 1 500 - -
Total equity and liabilities 270 541 263 163 273 761
Group Cash Flow Statement (Abridged)
Audited Unaudited
Year ended Quarter ended
R`000 30/6/2002 30/6/2001 30/6/2002 31/3/2002
Net cash flows from 47 864 21 973 30 034 8 233
operating activities
Net cash flows from (29 332) (17 214) (15 928) (9 440)
investing activities
Net cash flows from (7 885) (4 701) (879) (56)
financing activities
Net movement in cash 10 647 58 13 227 (1 263)
and cash equivalents
Cash and cash (7 123) (7 181) (9 703) (8 440)
equivalents at
beginning of
year/period
Cash and cash 3 524 (7 123) 3 524 (9 703)
equivalents at end
of year/period
Operating Results
Year ended Quarter ended
30/6/2002 30/6/2001 30/6/200 31/3/2002
2
Tons milled 1 500 879 1 420 808 407 815 349 882
Yield - g/t 2,84 2,98 2,57 3,09
Gold produced - kg 4 267 4 227 1 048 1 080
Cash cost - R/kg 73 627 62 086 79 855 73 801
- R/ton 209 185 205 228
Statement of Changes in Equity (Abridged)
Non-
Share Share distributable Retained
R`000 capital premium reserve earnings Total
Balance at 20 000 101 287 6 000 11 271 138 558
1/7/2000
Net profit - - - 2 212 2 212
for the year
Balance at 20 000 101 287 6 000 13 483 140 770
30/6/2000
Net profit - - - 34 833 34 833
for the year
Unclaimed - - - 518 518
dividends
written back
Balance at 20 000 101 287 6 000 48 834 176 121
30/6/2002
COMMENTS
1. ACCOUNTING POLICIES
The financial results have been prepared in accordance with and comply with
Statements of Generally Accepted Accounting Practice in South Africa. The
results are prepared under the historical cost convention and the principal
accounting policies adopted are consistent with those of the previous year.
2. INDEPENDENT AUDIT
The annual financial information set out in this report has been audited by the
group`s auditors PricewaterhouseCoopers Inc. Their unqualified report is
available at the registered office of the company.
3. YEAR RESULTS
Gross profit increased by 104% from R29,7 million to R60,5 million and net
profit after taxation increased from R2,2 million to R34,8 million. Headline
earnings per share increased from 2,77 cents per share to 43,63 cents per share.
The production results are less favourable than expected as a result of an
increase in underground tonnage production and increased underground development
to ensure maximum throughput in the upgraded Metallurgical Plant. The increase
in underground development and the increased tonnage production resulted in
lower yield (g/t), which in turn affected the gold production. The Metallurgical
Plant capacity was increased from 120 000 tons to 150 000 tons per month by June
2002 and has subsequently been upgraded to a capacity of about 190 000 tons per
month. Capital expenditure to upgrade the Metallurgical Plant amounted to R7,0
million in the current financial year and a further R3,0 million has been
allocated to complete the upgrade. Underground capital development of R15,7
million and surface exploration of R1,3 million was spent in the current
financial year to ensure that the planned future production can be maintained.
4. QUARTERLY RESULTS
The quarter was disappointing and the yield (g/t) and the resultant gold
production was much lower than expected as a result of the increase in
underground development and teething problems experienced with the upgrade of
the Metallurgical Plant. The cash cost per ton decreased from R228 to R205 as a
result of the higher tonnages. The cash cost per kilogram increased from R73 801
to R79 855 as a result of the lower recovered yield (g/t) and higher than
inflation increases in some of the costs. The teething problems encountered at
the Metallurgical Plant have been addressed and the production results are
improving.
5. FIXED FORWARD GOLD SALE AGREEMENTS (HEDGING)
45 kilograms of gold per week have been forward sold at R88 500 per kilogram
until 19 March 2003.
6. DIVIDENDS
A dividend of 15 cents per share (2001: nil) amounting to R12 million (2001:
nil) was declared in respect of the 2002 financial year on 15 July 2002 and paid
on 2 September 2002.
7. TAXATION
The group has provided R1,5 million (2001: nil) for Secondary Taxation on
Companies on the dividend declared by one of the subsidiaries in the group. At
30 June 2002 the group had the following amounts for set-offs against future
income:
- Unredeemed capital expenditure of R513 192 576 (2001: R503 174 418).
- Tax losses available of R44 797 004 (2001: R48 312 689).
8. SEGMENTAL ANALYSIS
The group operates in one geographical area in South Africa on the East Rand in
Gauteng Province and is involved only in one business segment, namely that of
gold mining.
9. POST-BALANCE SHEET EVENTS
As announced on 15 July 2002 the company`s board of directors have received and
have entered into an agreement, subject to certain conditions precedent, whereby
Chimera Mines and Minerals Corporation Limited (a company registered in the
Cayman Islands and a subsidiary of EAGC Venture Corp., a company listed on the
TSX Venture Exchange in Toronto, Canada) has purchased the total issued share
capital of and loan account against Petrex (Proprietary) Limited (a 100%
subsidiary of Petmin). The purchase price payable to Petmin is US$66 666 667.
The purchase price shall be payable in cash on closing of the transaction. It is
expected that the closing date of the transaction will be on or before 25
October 2002. A circular to shareholders containing full details on the diposal
and convening a general meeting of shareholders on 27 September 2002 to vote on
this transaction, has been posted to shareholders on 12 September 2002.
On behalf of the Board
P.J. NEL P.F. DU PREEZ
Director Director 17 September 2002
Directors: P J Nel, P F du Preez, J A Strijdom, H V W Chapman
Registered Office: 28 Visagie Street, Guarantee House, 5th Floor, Pretoria. P O
Box 9446, Pretoria, 0001
Secretary: D H W Secretarial Services (Pty) Limited, 28 Visagie Street,
Guarantee House, Pretoria, P O Box 899, Groenkloof, 0027
Transfer Secretaries: Computershare Investor Services Limited, 11 Diagonal
Street, Johannesburg. P O Box 1053, Johannesburg, 2000
Auditors: PricewaterhouseCoopers Inc. 32 Ida Street, Menlo Park. P O Box 35296,
Menlo Park, 0102
Date: 17/09/2002 05:07:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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