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Assore Limited - Interim Results for the half-year ended 31 December 2002
Assore Limited
Company Registration Number: 1950/037394/06
Share code: ASR ISIN code: ZAE000017117
Interim Results for the half-year ended 31 December 2002
Consolidated Income Statement
Half year ended Year ended
31 December 31 December 30 June
2002 2001 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
Revenue 855 807 700 459 1 514 406
Net operating profit 146 486 142 871 416 319
Exceptional item - 248 280 248 278
Dividends received 2 605 1 470 4 839
Finance costs (20 411) (21 029) (35 207)
Net profit before taxation 128 680 371 592 634 229
Taxation (44 781) (42 944) (131 894)
Net profit after taxation 83 899 328 648 502 335
Outside shareholders" share
of (profit)/loss (1 755) 363 (381)
Attributable earnings 82 144 329 011 501 954
Earnings per share (cents) 293,4 1 175,0 1 792,7
Headline earnings per share (cents)* 292,7 298,3 903,2
Dividends per share (cents) 40,0 20,0 60,0
Ordinary shares in issue (million) 28,0 28,0 28,0
Net asset value per share (rand) 48,7 42,7 47,8
Capital expenditure (million) 70,0 98,8 193,1
Capital commitments (million) 383,6 383,5 349,0
*Determination of headline earnings
Attributable earnings as above 82 144 329 011 501 954
Exceptional item - (248 280) (248 278)
Net (profit)/loss on disposal or
impairment of other fixed assets (197) 2 806 (788)
Headline earnings 81 947 83 537 252 888
Consolidated Balance Sheet
At At At
31 December 31 December 30 June
2002 2001 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
ASSETS
Non-current assets
Property, plant and equipment
and intangibles 990 256 905 398 956 950
Environmental rehabilitation
trust funds 13 341 11 422 12 829
Investments 150 349 155 883 179 051
1 153 946 1 072 703 1 148 830
Current assets
Cash resources 82 598 115 191 84 633
Other current assets 868 171 632 418 769 176
Total assets 2 104 715 1 820 312 2 002 639
EQUITY AND LIABILITIES
Share capital and reserves
Ordinary shareholders" interest 1 351 131 1 179 485 1 325 020
Outside shareholders interest 13 222 15 490 13 796
Share capital and reserves 1 364 353 1 194 975 1 338 816
Non-current liabilities
Deferred taxation 185 042 129 496 173 261
Long-term liabilities 33 037 18 983 32 032
1 582 432 1 343 454 1 544 109
Current liabilities
Non-interest bearing 106 816 202 858 105 129
Interest bearing 415 467 274 000 353 401
Total liabilities 2 104 715 1 820 312 2 002 639
Statement of Changes in Equity
Half year ended Year ended
31 December 31 December 30 June
2002 2001 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
SHARE CAPITAL AND NON-
DISTRIBUTABLE RESERVES
Balance at beginning of year 90 138 52 952 52 952
Net (decrease)/increase in the
market value of listed investments (44 032) 47 704 41 951
Decrease/(increase) in deferred
taxation on listed investments 1 623 - (8 176)
(Decrease)/increase in foreign
currency translation reserve (2 424) 5 690 3 411
Balance at end of year 45 305 106 346 90 138
DISTRIBUTABLE RESERVES
RETAINED INCOME
Balance at beginning of year 1 234 882 749 728 749 728
Attributable earnings 82 144 329 011 501 954
Ordinary dividend No 91
aggregating 40 cents per share (11 200) (5 600) (16 800)
Balance at end of year 1 305 826 1 073 139 1 234 882
Total as per balance sheet 1 351 131 1 179 485 1 325 020
Consolidated Cash Flow Statement
Half year ended Year ended
31 December 31 December 30 June
2002 2001 2002
Unaudited Unaudited Audited
R"000 R"000 R"000
Cash generated from operating
activities 21 382 94 605 101 785
Cash (utilised)/generated in
investing activities (85 195) 146 280 30 493
Cash generated/(utilised) from
financing activities 61 778 (203 717) (125 668)
(Decrease)/increase in cash for
the year (2 035) 37 168 6 610
Cash resources at beginning of year 84 633 78 023 78 023
Cash resources at end of year 82 598 115 191 84 633
Declaration of Interim Dividend
Interim Dividend No. 92 of 25 cents per share was declared on Monday, 17
March 2003. The last date to trade "cum" dividend in order to participate in the
dividend will be Thursday, 10 April 2003. The company"s ordinary shares will
commence trading "ex" dividend from the commencement of business on Friday, 11
April 2003 and the record date will be Thursday, 17 April 2003. Share
certificates may not be dematerialised or rematerialised between Friday, 11
April 2003 and Thursday, 17 April 2003 (inclusive of both days) and the dividend
is payable on Tuesday, 22 April 2003.
Commentary
Results
Headline earnings for the half year ended 31 December 2002 remained almost
constant at R81,9 million compared to R83,5 million for the first half of the
previous year, with the major contribution (R62,8 million) coming from the
group"s 45,7% stake in Assmang Limited. The results of Assmang for the half-year
ended 31 December 2002 were published on 20 February 2003 and reflected a 14%
increase in earnings for the period.
Sales volumes
Although sales volumes for all products increased as indicated in the table
below, all sales are US dollar denominated and the results were affected by the
stronger SA Rand/US Dollar exchange rate during the period compared to the
previous year:
Half year to 31 December
Sales volumes 2002 2001
"000 metric tons
Iron ore 2 259,4 2 149,0
Manganese ore (excluding deliveries to
Cato Ridge Works) 409,4 382,0
Manganese alloys 96,9 85,4
Charge chrome 103,6 88,9
Capital expenditure
Capital expenditure to maintain and improve operations occurred principally
in Assmang and amounted to R139,6 million (2001:R186,5 million) spent mainly on
the following projects:
* Completion of the Nchwaning III shaft complex, which is scheduled for
December this year. Problems and delays associated with poor ground conditions
and commissioning of the 2,2 kilometre long decline conveyor have caused the
final estimated cost to completion to increase by R68 million to R585 million.
* Bringing on line the chrome division"s new 54MVA furnace and 350 000 ton per
annum pelletising plant, which were commissioned in 2001. Technical problems,
which delayed the achievement of sustainable furnace production levels, have
been addressed and it is anticipated that full operational productivity will be
achieved during the March 2003 quarter.
Outlook
Prices and sales volumes for the remaining half of the year are not expected
to vary materially from those achieved during the period under review other than
for ferrochrome where an increase in the US dollar price is expected in the
second quarter of the calendar year. Earnings however, will be largely dependent
upon the SA Rand/US Dollar exchange rate and considering current rates it is
unlikely that earnings for the second half will exceed those in the first half.
Dividends
The results include a final dividend of 40 cents per share, which was paid on
14 October 2002. An interim dividend of 25 cents per share has been declared
which will be payable on 22 April 2003. This dividend has not been included in
the results, as it was declared after the accounting date, but it is lower than
last year"s interim dividend of 40 cents which included a once off distribution
flowing from the receipt by Assmang of the proceeds on the disposal of its
platinum group mineral rights.
Accounting policies
The interim results have been prepared in accordance with Statements of
Generally Accepted Accounting Practice issued by the International Accounting
Standards Committee and the South African Institute of Chartered Accountants.
The methods of computations and accounting policies are consistent with those
used in previous periods.
On behalf of the board
Desmond Sacco R J Carpenter
Chairman Deputy Chairman
Johannesburg
17 March 2003
Registered office: Transfer office:
Assore House Computershare Investor Services Limited
15 Fricker Road 70 Marshall Street
IIlovo Boulevard Johannesburg
Johannesburg 2196 2001
Directors:
Desmond Sacco (Chairman and Managing Director)
R J Carpenter (Deputy Chairman), C J Cory (Financial), P C Crous (Technical),
R A Chute, B M Hawksworth, Dr J C van der Horst
Alternate: J W Lewis (British)
Company secretaries:
African Mining and Trust Company Limited
Assore Limited
Company Registration Number: 1950/037394/06
Share code: ASR ISIN code ZAE000017117
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